Kentucky IA - July/August 2014

Kentucky IA

July/August 2014

New Horizons!

The Kentucky IA magazine has a whole new look

Tips for Pairing Customers with the Right Carriers Page 25

Conference Recap Page 9

Looking to Hire a Top Performer? Develop a Personality Profile Page 21

S T R E N G T H

I N

N U M B E R S

Our 'Strength in Numbers' comes from our dedicated and highly-skilled employees along with over 33 years of our strong commitment to be a fiscally responsible fund.

Everyday at KESA, we come to work with one goal in mind - to be the best. We want to provide the best service, underwrite accounts with precision, care for injured employees with clear and accurate communication, answer every question quickly and knowledgeably, and be the unequivocal first choice for workers' comp in Kentucky.

Contact us about our SAFETY W.O.R.K.S program at www.kesa.org.

200 Executive Park, Louisville, KY 40207 502.894.8484 | 800.367.5372 | www.kesa.org

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What's

Inside

Page 7

On the Cover Page 9

9 Big “I” Sales & Leadership Conference This year IIAK combined 2 events to form one informative and fun conference.

21 Looking to Hire a Top Performer?

Develop a Personality Profile 25 Match Made In Heaven

3 Tips for Pairing Customers with the right carriers

In Every Issue 4 From the Chair 5 Benefits Spotlight: Big “I” Markets 7 E&O - NEW

Page 21 The Kentucky IA is the official magazine of the Independent Insurance Agents of Kentucky, and is published bi-monthly.

Editorial offices are located at 13265 O’Bannon Station Way, Louisville, Kentucky 40223.

Telephone(502) 245-5432 | email iiak@iiak.org | Fax (502) 245-5750 The Kentucky IA welcomes all advertising and editorial submissions.

Inquires for advertising, news releases and editorial contributions can be directed to Nikki Petrowski at the editorial office address or via email at npetrowski@iiak.org

8 Trusted Choice 13 Technology - NEW 15 Education Calendar

19 New Members 30 Industry Partners 30 Social Media Links - NEW 31 Advertiser Index - NEW 31 Classified Ads 31 People in the News

Mission Statement The mission of the Independent Insurance Agents of Kentucky is to be the preeminent advocate for Kentucky Independent Agents and support their businesses and professional development needs.

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Chair

Officers

From the

John Funkhouser, CIC, CWCA

Chair, Danville 859.236.5922 Michelle L. Love

Chair-Elect, Owensboro 270.926.2806 David M. Houk

Vice Chair, Horse Cave 270.286.2724 James D. England, AAI

Treasurer, Pikeville 606.437.7361 Stephen R. Kinkade, CPCU, AAI

National Director, Leitchf ield 270.259.5465 William S. Latta

Immediate Past Chair, Henderson 270.827.3543

Directors Chip Atkins

Louisville, 502.585.3600 Jason D. Billington, CIC

Murray, 270.753.4751 Allen J. Crawford, CIC

Somerset, 270.286.2724 Diana G. Hunt, CIC

Barbourville, 606.546.4132 Michael G. Johnson, CIC

Lexington, 859.233.1461 Aaron LaRue

Bardstown, 502.348.0050 Skip McGaw, CIC

Madisonville, 270.821.3122 Mark “Ross” Richey, AAI, CWCA

Bowling Green, 270.754.4881 Ray A. Robertson, CIC

Mt. Sterling, 859.498.3410

Staff Peggy P. Porter

President & CEO Crystal Brown

Administrative Assistant Katie M. Freshley

Education & Events Director Nikki S. Petrowski

Communications Director Tara T. Purvis

Marketing Director Kristie Weyer, CISR

Insurance Services Manager

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It was an honor and a privilege to be a part of the Trusted Choice Big “I” Jr. Golf Tournament on June 26 and 27.

Ninety young men and women from all across the great Commonwealth hit the links in hopes of qualifying for the 46th Annual Trusted Choice Big I National Championship held in Bridgeport, WV on August 5-8. This is the nation’s 3rd oldest junior golf event.

I must admit, I knew we sponsored this event but had not previously attended or helped. Spending the day with these fine young adults got me thinking: we need to be doing a better job of getting our message to them. They will soon be consumers of our products, and equally as important, they will be looking at careers. As I was transporting the groups, I made sure to let them know what I do for a living.

November will be here before you know it, and that means federal, state and local elections. Elections bring me to my next point: KAPAC. I challenge each of you to give. Your livelihood depends on it. We need your dollars to help get useful legislation passed and harmful legislation stopped.

The next topic I would like to discuss is Project CAP Advantage Subscriptions. If we have any hope of taking back market share, we must join forces and let this marketing program work. For less than the cost of a cup of Starbucks a day, you can increase your agency’s web presence, where today’s consumer goes shopping.

Check out page 26 for a promotion through IIAK that will get you a free year. Get your agency signed up, and show why we are the “Trusted Choice”.

Respectfully, John Funkhouser, CIC, CWCA

Benefits Spotlight: Big “I” Markets

Big “I” Markets (BIM) is the IIABA member’s online market access program with no fees, no volume commitments and competitive commissions.

Personal Lines • Affluent 4:1 Package (Four Carriers)

• ACE

• AIG

• Chubb

• Fireman’s Fund • At-Home Business • Collector Car Policy • Event Liability • Flood - In, Above, & Outside of the NFIP! • Marine Insurance

• Charter Boat

• Mega-Yacht

• Performance Boat

• Personal Watercraft

• Small boat under 27 feet

• Yacht • Non-standard Homeowners or Rental Dwellings • Personal Excess Policy • Personal Umbrella Policy • Recreational Vehicles • Stand-alone Fine Arts & Valuable Articles • Travel Insurance • Vacant Dwelling: Non-Standard • Vacant Property Program (Admitted) Commercial Lines: • Bonds

• Bids

• Contractor

• Performance

• Surety

• Other • Child Care • Commercial Builders’ Risk • Community Banks Business Insurance Program All products are only accessible online and coverage is subject to licensing compliance and underwriting approval. Log on to www.bigimarkets.com today to begin the registration process and start quoting in minutes!

• • • • • • • •

• • • • • •

• • • • • • •

•

Cyber Liability Employers’ Practices Liability Environmental Impairment-Pollution Coverage Event Liability Fidelity/Crime (Wrap+) Financial Advisors’ E&O Flood - In, Above, & Outside of the NFIP! Habitational Markets • Apartments • Condo and Homeowner Associations • Vacation Income Property Highly Protected Risks Insurance Company Professional & Business Insurance Program Miscellaneous Professional Liability Mobile Food Vendors Non-Profit D&O Liability Outdoor Markets • Guides/Outfitters • Rod/Gun Clubs • Fishing and Hunting Lodges/Plantations Property Manager E&O Real Estate Agents/Property Manger E&O Recreational Vehicles Restaurant Fine Dining & More - Fireman’s Fund Stand-alone Fine Arts & Valuable Articles Technology Consultant Prof. Liability Travelers Select Accounts • Apartment Pac • Building Pac • Business Pac • Commercial Auto • Condominium Pac • Contractors Pac • Garage Pac • Office Pac • Religious Pac • Restaurant Pac • Store Pac • Technology Office Pac • Workers’ Compensation Wrap+ Executive Liability for Private Companies

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DON’T GET BITTEN

BY AN E&O CLAIM YOU COULD HAVE AVOIDED.

Big “I” Risk Management Website

www.independentagent.com/EOHappens Big “I” members whose agency E&O insurance is written by Swiss Re through the Big “I” Professional Liability Program have access to an exclusive risk management web site.

Log on today to fish for E&O claims frequency data, real-life case studies and analysis, sample client letters, sample agency procedures, agency E&O self assessments, podcasts on important E&O topics, and much more.

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DON’T BE ON THE HOOK FOR: Failing to procure coverage requested by the client Not adequately identifying client exposures Failing to provide timely notice of a claim to the carrier Misrepresenting or not explaining policy provisions Providing inaccurate information to carriers Failing to properly add additional insureds or loss payees

Beware E&O Holes in Your Agency’s Digital Efforts By Jeffrey Chomko & Allison Livezey In the age of the Internet, e-commerce continues to grow at a blistering pace, revolutionizing the way we communicate, shop and purchase insurance. Independent agents are increasingly utilizing the Web in an effort to expand their businesses. Whether through email, electronic advertisements or the agency website, digital consumer outreach will only continue to grow.

While utilizing the Web comes with many benefits, it is also fraught with pitfalls if agents fail to conduct their business in accordance with the requirements of the jurisdiction where they are licensed.

The Internet is altering insurance transactions in many states, but the rules for properly conducting business remain unchanged. It is imperative for agents to stay up to date on the risks associated with digital marketing and sales—and take the necessary steps to avoid the potential E&O problems presented by e-commerce.

One problem area associated with online marketing is proper formatting. If you decide to utilize the Internet in order to sell policies, you must ensure that the documents located on your website comply with the formatting requirements of the licensing state. For example, in Pennsylvania and many other jurisdictions, digital illustrations must be clearly labeled (as a “life insurance illustration,” for example) and must set forth basic information, including the name of the insurer, the initial death benefit and necessary disclosures concerning the projected rate of return.

Signature validation is also critical. For example, in New York, while payments of life insurance premiums may be made electronically, such payments must be accompanied by a valid electronic signature. Similarly, in Pennsylvania, a life insurance policy may only be purchased by

the person insured or by someone who has an insurable interest. Agents who allow clients to submit life insurance applications and payments virtually must take steps to verify who is submitting the application and make sure that they are permitted by law to make the purchase.

Most states also require a completed life insurance policy to be delivered to the policyholder. In the past, such delivery primarily occurred by hand. But documents are now often “delivered” electronically, creating potential difficulties for the insurer and agent if policy delivery fails. For example, the law might state that when a policy is delivered by means other than by-hand delivery, the insurer must verify the date and method of delivery.

Want more information on protecting your agency from Web-related E&O claims?

Clarification of the regulations is available through the insurer’s compliance department or the State Insurance Department where you do business.

At civil defense litigation law firm Marshall Dennehey Warner Coleman & Goggin, shareholder Jeffrey Chomko and associate Allison Livezey focus on professional liability matters including insurance agent E&O defense.

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2014 Big “I” Sales & Leadership Conference is Huge Success By Nikki Petrowski There were more than 90 attendees to descend on Lexington on June 11 and 12 for the Big “I” Sales & Leadership Conference. This event is the combination of the Young Agents Sales & Leadership Conference and Big “I” Day. And judging by the turn-out, we can call it a success.

The conference kicked off with two tracks: Top Secrets of a Successful Agent with Pam Kusma.

She was a dynamic speaker that concentrated on time management, goal setting, prospecting, when to walk away & using social media to promote your business. Change your Strategy; Change your Results with Jim Mathis focused on adjusting successfully to a world of higher expectations and constant change. He spoke on how companies and individuals are rediscovering their roots and reinventing themselves for the Twenty First Century.

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Agents and Young Agents gathered for the opening reception to network with their peers and enjoy the beautiful evening. Following the reception everyone was invited to attend the Night out with IIAK in downtown Lexington.

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4 1 Jim Mathis. 2 Pam Kusma 3 Hope Yager, Michelle Love 4 Sarah Johnson, Adam Murphy, Donna Schlie, John Funkhouser, Nancy Tehan, Annie Dawson 5 Teri Ralston 6 Bill Latta 7 David Livingston, Phillip Hunt

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Breakfast commenced with a panel to discuss the Challenges and Opportunities, Then and Now. The panel consisted of Steve Ford (E.M. Ford and Company), Jeff Greer (Greer Insurance/ Kentucky State Representative), Sandra Blain (Al Torstrick Insurance Agency) and Bob Fehrenbach (Liberty Mutual Insurance). Mike Johnson with Al Torstrick Insurance Agency was the moderator. They discussed the major changes in the industry as well as the impact of technology over the years.

Next on the docket was Brandie Hinen, with Virtuoso! Experience, she was an enthusiastic presenter and concentrated on Command and Control over Chaos. She discussed meeting your challenges head-on and quickly resolving these issues. She also talked about converting your discussions into action to be more productive in the workplace.

The conference went out like a lion with a golf scramble at the Griffin Gate Golf Club and a tour of the Lexington Brewing & Distilling Company and Taylor Made Horse Farm. The weather was special ordered and was a perfect temperature for both activities. Fun was had by all.

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1 Brandie Hinen 2 Mike Johnson 3 Steve Ford, Jeff Greer, Sandra Blain, Bob Fehrenbach 4 Tee Cee, co-moderator 5 Tara Purvis, David Livingston 6 Back:Nick Rolf, Lindsey Pruitt, Katie Freshley, Donna Schlie, Teri Ralston, Annie Dawson, Jordan Antle, Sheila Rose, Front: Nikki Petrowski, Jason Billington, Candice Schmidtt, Kelli Bush, Tabitha Nunn 7 Lindsey Pruitt, Candice Schmidtt, 8 Bluegrass Sundown 9 Graydar, Jason Billington, 10 one of the newest colts at Taylor Made Horse Farm

1 Alex Knecht, Logan Edelen, Matt Meyer & David Livingston 2 Aaron LaRue 3 John Russell 4 Brian Smith, Aaron LaRue, Neel Ford, John Funkhouser 5 Jack LaRue, Melissa Worrell, Michelle Love 6 Ray Robertson 7 Bill Latta, Tara Purvis, Wess Schuyler

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Golf Scramble Results First Place Team

Logan Edelen - Roeding Group Companies, Lexington Alex Knecht - Risk Placement Services, Lexington David Livingston - Roeding Group Companies, Lexington Matt Meyer - Risk Placement Services, Lexington

Second Place Team

Jim England - Peoples Insurance Agency, Pikeville Neel Ford - E.M. Ford & Company, LLC, Owensboro Aaron LaRue - LaRue Insurance, Inc., Bardstown Brian Smith, Arthur J. Gallagher Risk Management Services, Louisville

Closest to the Pin

John Russell - Johnson-Pohlmann Insurance, Danville Tara Purvis - IIAK, Louisville

Third Place Team Eric Harden - Insuramax, Inc., Louisville Jack LaRue - LaRue Insurance, Inc., Bardstown Michelle Love - E.M. Ford & Company, LLC, Owensboro Melissa Worrell - KEMI, Lexington

Longest Drive

Michael Moir - Francis & Company, Inc., Louisville Tara Purvis - IIAK, Louisville

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We hope to see you at the

118th Annual

Convention & Trade Show

November 12 - 14, 2014 - The Brown Hotel - Louisville, Kentucky

A new logo for a new era.

BERKSHIRE HATHAWAY

GUARD

INSURANCE COMPANIES

Upon our acquisition

by National Indemnity Company/Berkshire Hathaway in October of 2012, a new and improved GUARD emerged. A year later, we are pleased to introduce a new logo that better reflects our ENHANCED GUARD BRAND. As you can see, we highlight the immense resources available to us through our ultimate parent as we continue climbing to the top of our industry . . . while retaining reminders of the steps behind us – an assurance that the best of our old values still remain.

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Berkshire Hathaway GUARD Insurance Companies are rated A+ (“SUPERIOR”) by A.M. Best Company and specialize in small- to mid-sized accounts – featuring Workers' Compensation coverage in 35 states and complementary Businessowner's 12 | www.iiak.org | July/AugustPolicy 2014 (BOP), Umbrella, and Commercial Auto products in select jurisdictions.

Managing the Security Risks of Portable Devices By Jeff Yates Laptops, Windows based portables, and smart phones allow agents and brokers to stay in touch with their customers and offices and to have access to their agency systems from anywhere at any time. These portable devices will continue to get better and better offering larger disk storage, very convenient user interfaces, fully functional Office suites, as well as wireless Internet access, email, and Internet browsing. We expect use of these devices by agency principals and producers in the field to continue to increase dramatically.

While these portable devices offer great convenience, they also present an even higher security risk to agencies than their in-house systems.

Portable devices are both lost and stolen frequently.

In the last six months in London, 63,135 mobile phones (an average of three phones per taxi), 5,838 PDAs and 4,973 laptops have been left in licensed taxi cabs. In Chicago, taxi drivers recently reported that during a six-month period, 21,460 PDAs and Pocket PCs were accidentally left behind in their cabs.

These portable devices are capable of storing a large amount of data, and if preventative measures are not taken, this data is very easy to access. If the proper access controls are not in place, it is very easy to access the agency’s network from one of these devices. In addition, there is an increasing number of viruses and worms being targeted to mobile devices, and yet the antivirus software for these devices is either very new and little used, or nonexistent.

Agents should consider taking the following steps with regard to laptops and other portable devices: 1. Activate the password requirement on the device.

2. Provide a logon and password requirement at the agency system firewall level in order to access the agency’s system rather than letting the portable device automatically

remember this id and password.

3. Treat laptops and portable devices as a special category in the agency security policy recognizing the higher risks presented by these devices. Train employees on these risks.

4. The agency should periodically check these devices to make sure that the security safeguards are incorporated and that they are fully compliant with the security policy.

5. The customer data maintained on these devices should be restricted to what is absolutely necessary.

6. Avoid storing password information in these portable devices.

7. If private information is contained in the customer’s Contact file in the agency system, a second Contact file may be created without that private information to synchronize with the portable device.

8. Enable automated security patch downloads, for all software, but especially for Microsoft software. If automated downloads are not available for the particular device, then proactively retrieve the updates regularly, such as on a monthly basis.

9. Continuously monitor what antivirus software is available for your portable device from your device maker and incorporate what you determine to be best for you 10. If your Pocket PCs are connected to a Microsoft Exchange Server 2003 (SP 2), a new feature, “Remote wipe,” is available that enables Exchange administrators to erase sensitive data from a lost or stolen Pocket PC. After the remote wipe has been completed, the administrator will receive acknowledgement that the device has been wiped.

These recommendations for portable devices should fit within the overall security policy that the agency adopts. Think of your security strategy as a series of layers to protect your core data (the “onion www.iiak.org | July/August 2014 | 13

principle”). These layers include at least: services for these customers to use to monitor and • A security policy based upon an assessment repair their credit standings. of the specific risks your agency faces.

ACT’s “The Independent Agent’s Guide to Systems Security; What • Written procedures coupled with employee Every Agency Principal Needs to Know” (March, 2005) continues training on the policy and procedures. to be a highly relevant resource for agents to use to manage their • Firewalls that protect the perimeter of your ongoing security risks. This tool, including its prototype agency systems from intrusion by unauthorized security policy, can be found at www.independentagent.com/act, persons and viruses. under “Agency Improvement Tools.”

• Diligent management of passwords, so that Jeff Yates is the retired Executive Director of the Agents Council only authorized persons gain access to your for Technology (ACT) which is part of the Independent Insurance system, and their identity is authenticated.

Agents & Brokers of America. ACT’s many reports and business • Immediate deactivation of former employees’ improvement tools can be found at www.independentagent.com/ access to agency and carrier systems. act. This article reflects the views of the author and should not be • Limits on employee access to only that construed as an official statement by ACT. information they need to see.

• The latest versions of virus software, continuously and automatically updated.

• Auditing employee activity for compliance with the security policy and procedures.

800-226-3224 • Systems traffic monitoring for www.fcci-group.com unusual activity that indicates a breach may have occurred.

Managing your security risks upfront—even though it will entail some time and cost— can save you a much greater expenditure of time and money in the long run, should there be a security breach. It is also legally required. The Gramm-Leach-Bliley Act (GLBA) requires independent agencies and brokers, along with insurance carriers and other financial institutions, to proactively implement administrative, technical, and physical safeguards to ensure the security and confidentiality of their customers’ nonpublic personal information. GLBA imposes these general requirements, but leaves it up to the agency or financial institution to decide which specific policies and technologies it will implement to fulfill these obligations.

In addition, identity theft laws have now been passed in most states imposing similar obligations on agencies as well as on other businesses. These laws mandate that agencies make specific disclosures to customers when a security breach occurs that might compromise their private information, and may also require the agency to pay for 14 | www.iiak.org | July/August 2014

“The FCCI Surety team excels at finding creative solutions to get bonds written. One of the things I enjoy most is working along with an agent to help a contractor evolve from being unable to obtain bonds to being the type of contractor sought out by surety companies.”

Dan Pikar Senior Contract Surety Underwriter FCCI Insurance Group Midwest Region Now, let’s talk about your business.

General liability • Auto • Property • Crime Workers’ compensation • Umbrella Inland marine • Agribusiness • Surety Coverage available in 18 states. © 2014 FCCI

Education Title

Date/Time

July 17 @ 12 pm EDT August 14 @ 12 pm EDT July 16 @ 2 pm EDT Certificates of Insurance August 14 @ 2 pm EDT Commercial Lines Claims that Cause Problems August 12 @ 2 pm EDT Commercial Property Endorsements That Can Make You Money August 26 @ 10 am EDT July 8 @ 10 am EDT Cyber Insurance August 5 @ 10 am EDT July 8 @ 1 pm EDT Data Privacy August 12 @ 10 am EDT July 15 @ 2 pm EDT Directors & Officers Liability Insurance August 26 @ 2 pm EDT July 16 @ 2 pm EDT Estate Planning Basics August 14 @ 2 pm EDT How Insurance Agents Can Become Invincible to Lawsuits and July 15 @ 10 am EDT Save Thousands in Taxes August 12 @ 10 am EDT Nightmares on Insurance Street August 26 @ 1 pm EDT Professional Ethics in the Insurance Industry July 22 @ 2 pm EDT July 29@ 10 am EDT The New Health Age: The Future of Health Care in America August 26 @ 10 am EDT Personal Lines Claims That Cause Problems July 24 @ 2 pm EDT July 17 @ 10 am EDT E&O Risk Managements: Meeting The Challenges of Change August 5 @ 11 am EDT (1 event) August 21 @ 9 am EDT July 24 @ 10 am EDT E&O Risk Managements: Meeting The Challenges of Change August 12 @ 1 pm EDT (Part 1) August 28 @ 2 pm EDT July 24 @ 2 pm EDT E&O Risk Managements: Meeting The Challenges of Change August 12 @ 9 am EDT (Part 2) August 28 @ 10 am EDT National Flood Insurance Program - Basic Course with 2013 July 16 @ 10 am EDT Updates August 14 @ 10 am EDT July 22 @ 10 am EDT Make the Wholesaler your BFF! August 19 @ 10 am EDT Annuity Basics and Where They Fit

CE Credit 1 hour 3 hours 2 hours 2 hours 2 hours 2 hours 2 hours 2 hours 2 hours 3 hours 3 hours 2 hours 2 hours 6 hours

3 hours

3 hours 3 hours 2 hours

You can register for these events and education seminars and find out more information by visiting iiak.org.

You can also call Katie Freshley at (502) 245-5432 or email kfreshley@iiak.org

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People who run a business know. The most valuable things

are also the hardest to get.

Your customer’s business didn’t grow overnight. It came from years of hard work, confidence in what they could do, and making smart decisions.

That’s why an insurance policy from West Bend makes sense. It protects these valuable and hard-earned businesses so your customers can focus on doing what they do best: helping children, families, and individuals enjoy safe and fun sports and leisure activities.

And as an Official Supplier of The Silver Lining, it’s backed by your knowledge and experience.

West Bend. Insurance your customers buy when they can’t afford anything less.

Relax...

You’ve offered each of your clients a personal umbrella policy.

Right?

It might not be quite as relaxing as a day at the beach, but knowing you’ve done everything in your power to protect the customers who trust you to help them will go a long way towards easing your mind.

Offering each and every client an umbrella not only protects those who choose to purchase the coverage. It protects your agency from liability. And it protects your book of business, since studies show that customers who have multiple policies are less likely to move their business elsewhere.

As a Big “I” member, you have access to a stand alone personal umbrella program from A+ rated carrier RLI, featuring: Limits up to $5 million available Excess UM/UIM available in all states You can keep your current homeowner/auto insurer New drivers accepted - no age limit on drivers Up to one DWI/DUI per household allowed Auto limits as low as 100/300/50 in certain cases

Competitive, low premiums for increased limits of liability Simple, self-underwriting application that lets you know immediately if the insured is accepted E-signature and credit card payment options Immediate coverage available in all 50 states plus D.C.

So cover your clients... protect your agency... and profit from umbrella sales!

Contact Jennifer Hopper, your RLI Administrator at: Email: jhopper@arlingtonroe.com Tollf Free: (800) 878-9891, ext. 8639 Local Fax: (317) 554-8551 Toll Free Fax: (888) 552-9891

Money

Time

Schooley Mitchell will audit and analyze your communication services costs for billing errors, make recommendations to lower the costs on your existing services, and act as your advisor on all telecom expenditures.

Engaging Schooley Mitchell to manage all your telecommunication needs allows you to focus your valuable time on what you do best.

Security

Knowledge

Schooley Mitchell consultants have extensive telecommunications experience and expertise that will give you a sense of security the right decisions are being made.

No Risk. No Investment. Simple Steps.

1. Simply allow Schooley Mitchell to review your telecommunications services.

2. After their thorough analysis, you may approve or decline any recommendation. You remain in control.

After implementation SAVINGS can begin.

3. Savings begin! Fees are always self-funded out of the savings generated by actual reduced telecom expenses.

Partner with an independent and objective expert providing specialized knowledge tailored to your specific needs.

The savings that were achieved were beyond our expectations.

“The experience was painless and the outcome was great. All of the changes were implemented by them, we were kept aware of all items and the transition was smooth and easy.

Our typical client saves between 28-40% Our office has provided over $1.3 million in total client savings.

Interested?

Contact Bill or Sue Wolsky for more information or to get started today!

Phone: 859.499.0102 Email: wolsky@schooleymitchell.com

We continue to be very pleased with the service and professionalism of Bill and Sue and would not hesitate to recommend them to other firms or organizations.”

– J. Miller Hoffman, Limestone Agency Insurance Mt. Sterling

IIAK Launches New Website IIAK has totally resdesigned our website to better serve the independent agent community. The new site has a brand new look & feel, bringing you a dynamic new experience complete with a more user-friendly structure.

www.iiak.org Stability. Longevity.

Integrity

Information has been organized into 5 major menu items: MEMBERSHIP

PRODUCTS & SERVICES

EDUCATION & EVENTS

GOVERNMENT AFFAIRS

NEWS & RESOURCES

There is even a video walk-through on the homepage.

Visit iiak.org today and take a look around!

IIAK would like to welcome our newest members: Agency Member • Old National Insurance - Louisville Associate Member • Sagamore Insurance For information regarding IIAK membership, contact: Tara Purvis, Marketing Director 502-245-5432 | tpurvis@iiak.org www.iiak.org | July/August 2014 | 19

© 2013 SECURA Insurance

Let’s make sure they always dig what they do.

Building working relationships since 1900 Commercial • Personal • Farm-Ag • Specialty

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Looking to Hire a Top Performer?

Develop a Personality Profile

By Herb Greenberg & Patrick Sweeney

How can you tell if a promising job applicant has the qualities needed to become one of your top producers? Does he or she have the empathy needed to understand prospects, the drive to make cold calls time and time again and the resilience required to bounce back from rejection?

You’ve got to delve below the surface to find out if the first impression applicants make will be a lasting one or if they are what we call “interview stars:” people who know how to turn it on during a hiring interview, but never quite hit that level of performance again. The latter are individuals who, after months of coaching to improve their performance, you have to let go. And, as you try to figure out what went wrong, you say to yourself, “But they were so good in the interview.”

During the hiring process, applicants and employers are often so busy putting their best feet forward that they end up tripping over each other. How can you delve below the surface to determine if a promising applicant really has what it takes to become one of your top performers?

The unfortunate truth is that hiring people who will fit in with your company is hard. And hiring top performers is brutally hard. You can get a Masters in Business Administration from one of the finest schools in this country and not learn two of the most important things about running a

business: (1) how to hire the right people; and (2) how to avoid hiring the wrong ones.

That’s why the insights gained from an in-depth personality profile can provide employers with the information they need to make a better-informed decision. The insights that a consultant can provide from a validated personality profile can provide a measurable, objective view of an individual. The consultants can also serve as a trusted advisor, a sounding board for discussing whether someone has the qualities an employer is seeking.

Will the individual fit in with your culture?

Work well with others on your team? Connect with his or her manager?

Those are the important nuances that can make all the difference as to whether an individual will ultimately succeed or not.

Developing an ideal profile The starting point to hiring effectively is to be absolutely clear about the kind of person you are looking for to succeed in the job. You don’t just want a job description; you want a description of the person you are looking for.

You begin by gaining a clear understanding of the personality qualities shared by your top performers. No doubt, they are all persuasive, able to read others and can bounce back from rejection. But what else do they have? Is it high energy? Discipline? A strong need to accomplish?

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Trustworthy? Are they responsible? Reliable?

Capable of solving complicated problems?

Through this exploration, you may discover that the individual is well suited for the position. Or it could save you from an enormous mistake.

Knowing that beforehand—so you can bring on the right people and avoid the wrong ones—can save you enormously.

Those attributes, once pinpointed, become the profile of your top performers. And that profile becomes the model toward which you hire. The closer your applicants match the ideal profile of your top performers, the more likely they will meet or exceed your performance expectations.

Personality assessments can provide the insights into applicants that resumés, interviews and references cannot uncover. This approach to hiring is how enlightened employers are dramatically improving their ability to identify top performers during the hiring process and to develop their potential.

Ultimately, what you’re trying to uncover during each of the interview stages is whether a promising applicant is really driven to succeed. What is the applicant’s sense of urgency? Is the candidate persuasive and resilient? If those are the qualities that are important to succeeding in your organization, then how can you tell if someone has them or not?

By incorporating the insights from an in-depth personality profile into your hiring process, a consultant can help you discover whether a promising applicant has what it takes to succeed. A consultant can review the applicant’s underlying strengths, motivations and any areas of concern, providing hard proof, either substantiating what you may have perceived in the interview or causing you to dig deeper into something you might have missed.

For example, if your consultant is concerned about the applicant’s level of resilience, then you have the benefit of exploring that area in your next interview, asking questions about situations where the applicant struggled. You can ask about how the applicant felt in that situation and what he or she did to make sure the situation wouldn’t happen again.

22 | www.iiak.org | July/August 2014

In the hiring process, what you are looking for is that which is not so easily seen. It’s what’s inside an individual that matters. To succeed in sales, for instance, you need to know if promising applicants enjoy being in stressful situations. Do they like competing? Can they cope with losing? Will they go out of their way to develop relationships

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with high-level contacts? Will they ask difficult questions? Will they challenge prospects? Are they assertive enough to put themselves in a position to be successful?

The insights from an in-depth personality profile can also provide you with an understanding of the skill gaps of each of new employees. Your managers will then be better able to work oneon-one with them to enhance specific skills, such as listening well or asking tough questions.

Ultimately, succeeding means constantly looking for, hiring and developing top talent. It all comes back to having a clear understanding of the personality qualities shared by your top performers. Then you hire and develop people who start off with those defining qualities.

A clear formula In-depth personality assessments offer objective insights that can help you determine if an applicant’s fit for a specific job, as well as how well they will fit with a particular manager, and whether they will fit your corporate culture. The

formula is clear: The better the fit, the higher the probability of the applicant’s success. Multiply that by all the individuals within your organization and you have a powerful strategy for improving your company’s success and profitability.

In today’s uncertain economy, you need to be as certain as possible about whether an applicant has the qualities needed to succeed—the drive to come through for your customers immediately. And the insights a knowledgeable consultant can provide from in-depth personality assessments can significantly increase your ability to hire and develop top performers.

At the end of the day, that’s the advantage that can set you apart from your competition.

Herb Greenberg is the founder and president, and Patrick Sweeney is the executive vice president of Caliper, an international management consulting firm, based in Princeton, N.J. You can e-mail them at hgreenberg@calipercorp.com and patrick@calipercorp.com.

Acquisition Strategy

#11

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“ Reducing losses adds value for your clients.”

Chad Veach, Engineering Services Supervisor Provide more than protection to your clients.

Provide the added value of EMC’s no-fee loss control services, which could help reduce the cost of their insurance. It’s just one of the many reasons policyholders Count on EMC®.

Cincinnati Branch: 800.732.5595

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MADE FROM THE HIGHEST CALIBER Our Partners Are A Cut Above The Rest.

Al Torstrick Insurance Agency Barger Insurance Agency CM Moore Insurance Agency Cambridge Insurance Durrett Insurance Agency Epic Insurance Agency Hall & Clark Insurance Agency Harbor Insurance Agency Hayes, Utley & Associates Houk Insurance Agency Insuramax Insurance Service Center of Corbin Ison Insurance Agency

PARTNERING WITH KEYSTONE INSURERS GROUP MEANS PUTTING THE FIFTH LARGEST PRIVATELY HELD PROPERTY AND CASUALTY AGENCY IN THE NATION TO WORK FOR YOU. THE POWER OF KEYSTONE IS NOT ONLY EVIDENT BY OUR STRONG OFFERING, BUT ALSO BY THOSE INDEPENDENT AGENCIES REPRESENTING KEYSTONE INSURERS GROUP IN KENTUCKY:

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Jessie Insurance Johnson & Pohlmann Insurance Lake Barkley Insurance Latta Insurance Services Lexington Insurance Agency Limestone Agency Linville Agency London Insurance Moore Insurance Agency Mountain Valley Insurance Peel and Holland Financial Group Rowland Insurance Agency Rudd Insurance Wooten Insurance Agency

IN KENTUCKY

Call Nancy Tehan at 888.892.5865

ntehan@keystoneinsgrp.com | www.keystoneinsgrp.com | Northumberland, PA ©2014 Keystone Insurers Group ®. All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

24 | www.iiak.org | July/August 2014

Match Made In Heaven

3 Tips for Pairing Customers with the right carriers By Dina S. Schultz Relationships are key when selling business insurance.

Price is always a factor, but agency trust holds greater weight for policyholders. But what carrier is the best choice? What factors should be considered and how should you match a customer with a carrier?

Carefully consider the carrier you’re recommending based on approach, coverage and ability to cultivate a positive relationship. Although not all of your customers will fall under this umbrella—some will decide on price alone—your best customers will.

Approach: How does my customer approach the industry in which he or she works? Do I have a carrier that shares the customer’s passion for that industry?

Let’s say you have a restaurant owner in front of you. She works long hours and faces innumerable challenges in the hopes of keeping her business alive.

Like most restaurant owners, she’s not in it for the money: for her it’s the fulfillment of a lifelong dream.

If you’re looking to insure a restaurant owner who has clear pride in ownership, you want to match him or her with a carrier who has a similar passion for the restaurant industry. This goes even beyond specialized programs and coverages.

Not all restaurant owners will fit with your “best” restaurant carrier. Those with a passion for the industry won’t be happy to be insured by a company that only dabbles in the industry and doesn’t understand it. Likewise, a carrier with a passion for the restaurant industry may not want to insure a business owner who doesn’t share that level of passion.

Coverage Details: Do the coverage offerings match the coverage needs?

With so many carriers and so many messages, it can be difficult to isolate what’s best for each business.

And while most carriers offer something as simple as business interruption insurance, individual coverages vary in small but important ways.

Imagine that a hotel’s power goes down before a busy holiday weekend. All events are canceled, and the business lost is in the tens of thousands of dollars.

Your carrier of choice could make or break the future of that hotel. Although business interruption insurance is a standard offering, most carriers require a 72-hour waiting period before coverage kicks in.

In this instance, your knowledge of customer and carrier is paramount. If your customer can take the risk of losing that business, you may be able to save a few bucks up front with Carrier A. But if the bottom line is tight, you should match your customer with Carrier B, who offers no waiting period for business interruption insurance.

Cultivating a relationship: Do you trust this carrier to form its own relationship with your customer? The carrier should provide more than just coverage to your customers. If you want to maximize your renewal business, choose a carrier that will make your customer feel valued.

When bad things happen, every insurer will respond in some fashion—you have that base expectation of them. Carriers with claims representatives focused on taking care of your customers in a quick, responsive and caring manner are key to your success.

But the best carriers also are present when things are going well. What does a company’s field representative or underwriter say when he or she stops by your office? Does he or she provide blogs, case studies and social media posts to share with your customers? Carriers that go the extra mile are more likely to leave an impression with your customers. By taking a few extra minutes to consider the need to connect your customer to the right carrier, you can brighten their future.

Dina Schultz is vice president of sales & marketing at Society Insurance. Contact her at info@societyinsurance.com

www.iiak.org | July/August 2014 | 25

This is your portal.

Claim your space.

Show customers the POWER of INDEPENDENTS!

Consumers shop online, then buy from a local agent. Be at the top of the list with the Advantage Subscription from Project CAP. As an extra incentive for you to join this great program, IIAK will give one free year to the first 75 agencies to commit to 2 years.

But act fast! This offer expires on September 1st!!

Call IIAK at 502-245-5432 or email iiak@iiak.org for details

*Agencies committing to 2 years must pay for 1 year up front. www.iiak.org | July/August 2014 | 26

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28 | www.iiak.org | July/August 2014

IT’S THE RIGHT THING TO DO. Arlington/Roe. You have our word on it.

“Whether you choose Arlington/Roe for our breadth of knowledge, product line diversity, market access or industry know-how, you may be assured we are in business primarily to serve you. We will do our best to earn and keep your trust. You have our word on it.”

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Managing General Agents and Wholesale Insurance Brokers

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29 | www.iiak.org | July/August 2014

IIAK is proud to acknowledge our Industry Partners (as of 6/30)

PREMIER

PLATINUM

GOLD Bolton & Company Grange Insurance KEMI Progressive Risk Placement Services SILVER Acuity Amerisafe, Inc. Keystone Insurers Group State Auto Insurance Company BRONZE Auto-Owners Insurance Company Bailey Special Risks, Inc. Countryway Insurance Company Kentucky Agents Finance Company KESA KY Associated General Contractors Secura Insurance Travelers Westfield Insurance 30 | www.iiak.org | July/August 2014

DO YOU FOLLOW IIAK ON

?

SOCIAL MEDIA

NO? THEN YOU’RE MISSING OUT ON IMPORTANT NEWS & EVENTS!

Find all our links at our homepage: www.iiak.org Or, use your smartphone to scan the QR codes below:

IIAK

Young Agents

Classifieds Acquisitions

Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence. Call R. Alex Rankin, CPCU or Steve B. Thompson, CPCU, at Sterling G. Thompson, Co. at 502-585-3277

People in the News The Moberg Group is named IIAK’s endorsed Agency Consultant IIAK recommends The Moberg Group (TMG) for Westport E&O policyholders interested in risk management auditing.

The Moberg Group, a management consulting firm specializing in the operational analysis of insurance agencies, provides all Risk Management Audits for the FMS E&O SwissRe/Westport program.

Contact Eric J. Moberg today at 828-349-5750 or via email at emoberg@ moberggroup.com

Looking for Producers

Independent with top best markets looking to expand presence in Jefferson, Oldham or Shelby counties. Wanting Personal lines, Producer or book of business to move or purchase. All arrangements possible, in strict confidence. Please send inquiries to Turner Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065 or call Kurt Turner, CPCU at 502-633-6060.

Commercial Property/ Casualty Producer/Partner

Louisville Insurance LLC has producer opportunities with flexible compensation plans while offering ownership in book of business produced. Confidentiality provided to all interested parties. Contact Glenn Pike at 502473-5454 or glenn@louisvilleins.com.

LAIP Installs New Officers and Board of Directors The Louisville Association of Insurance Professionals installed its newly elected officers and board of directors at its annual May Night industry recognition awards banquet.

The incoming officers are: • President, Angelia Poyner; Van Zandt, Emrich & Cary, Inc. • President-Elect, Nancy Considine-Shireman; USI • Vice President, Marian Dunkerley; Van Zandt, Emrich & Cary,Inc.; • Secretary, Tamara Wallace; Kiely Hines & Associates; and • Treasurer, Michele Mattingly of Van Zandt, Emrich & Cary, Inc. • Immediate Past President is Deborah Wade; USI. The Board of Directors elected to serve are: • Sherry Case; Clarkson Agency • Barbi Charles; USI; • Kate Graeter; Arlington Roe; • Carolyn Murphy; PIA Services Group Insurance Fund • Cindy Powell; Van Zandt, Emrich & Cary, Inc.

Producer Wanted

Trusted Choice Big “I” State Golf Tournament Winners

Excellent opportunity for right person.

Commissions over 50% to producer. Ownership from day one. Excellent markets and support.

Contact Frank at Mutual Underwriters at 502550-6791 (in strict confidence)

Billy Tom Sargent of Georgetown shot a blazing 3-under par 68 en route to a twoday total of 139. This qualified him to win medalist honors at the Trusted Choice Big “I” State Tournament held at The University Club of Kentucky in Lexington on June 26 & 27.

Ad Index Amerisafe Arlington/Roe & Company Bolton & Company EMC Insurance Companies FCCI Guard Insurance J.M. Wilson Kentucky Retail Federation KESA Keystone Insurers Group RLI Personal Umbrella Secura Summit Consulting Swiss Re Professional Liability West Bend Mutual Insurance

27 29 OBC 23 14 12 22 28 IFC 24 17 20 19 6 16

For classified ads or to advertise in the Kentucky IA, contact: Nikki Petrowski, Communications Director, at npetrowski@iiak.org

(L-R) Will Sallee, Billy Tom Sargent, & D.J. Vogt

Sargent, won by two shots over Will Sallee of Lexington, who also qualified for the national event. Sallee, had rounds of 71-70=141 as he and Sargent were the only players in the field to break par. The final qualifier was D.J. Vogt of Louisville who shot a pair of 71’s en route to a 142 total.

In the girls division, Olivia Cason of Owensboro came from three shots off the pace to tie Gypsie Hutchinson of Lexington.

Cason made par on the first playoff hole to grab the only girls’ qualifying spot as the senior from Owensboro Catholic who shot rounds of 76-73=149. Hutchinson shot rounds of 74-75. First round leader Meredith Moir of Louisville finished in 3rd place at 150.

(L-R) Meredith Moir, Olivia Cason, & Gypsie Hutchison

The 46th Trusted Choice Big “I” National Championships will be held at the Pete Dye Golf Club in Bridgeport, West Virginia during the first week of August. www.iiak.org | July/August 2014 | 31

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