Kentucky Independent Agent - November/December 2012 Issue

1046 Louisville, KY

13265 O’Bannon Station Way Louisville, KY 40223

NOVEMBER

We offer independent agents commercial auto insurance at very competitive rates for almost any situation you may find: long-haul, local and intermediate trucking, limousine service, fleet and cargo.

DECEMBER 2012

We can find coverage for almost any commercial auto situation that you can think of.

Well, almost any.

No minimum volume is required.

Just go to www.boltonmga.com to submit online.

BOLTON & COMPANY Tracking down the right coverage for over 45 years.

2400 Waterfront Plaza · 325 West Main Street · Louisville, Kentucky 40202 Telephone 502.583.8361 · 800.292.6597 · Fax 502.584.6131 · www.boltonmga.com

Highlights of the 116th Annual Convention Free, Public Wi-Fi Can Be Dangerous to Your Health

E R A C H T I W E L HAND We believe "handle with care" means more than a stamp on a box. We believe the best way to handle a claim is to prevent it from happening in the first place. Our SAFETY W.O.R.K.S. program offers an array of tools focused on training, education and awareness of workplace risks. If you do have a claim, we handle your claims with the utmost care and personal attention. Our fair-minded claims adjustors will guide you through the process. And our financial results show proof of our commitment to "handle with care" our financial strength and stability.

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

NovDec12_IFCIBC.indd 1

12/18/12 5:57 PM

THE KENTUCKY INDEPENDENT AGENT is the official magazine of 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; Toll Free # (866) 426-4425; E-mail IIAK@iiak.org; FAX (502) 245-5750.

Officers William S. Latta Chair; Henderson (270) 827-3543 John Funkhouser, CIC, CWCA Chair-Elect; Danville (859) 236-5922 Michelle L. Love Vice Chair; Owensboro (270) 926-2806 James D. England, AAI Treasurer; Pikeville (606) 437-7361

ON THE COVER

Stephen R. Kinkade, CPCU, AAI National Director; Leitchfield (270) 259-5465

Your association just recently held its 116th Annual

Tim Conder Immediate Past Chair; Louisville (502) 459-7500

Convention. Read about all the highlights of the event

Directors

new officers on page 5.

throughout this issue. You can also read about your

Chip Atkins Louisville, (502) 585-3600 Jason D. Billington, CIC Murray, (270) 753-4751 Moe Dugger Lexington, (502) 426-6060

FEATURES

David M. Houk Horse Cave, (270) 286-2724

Cover Story: IIAK Installs New Chair Bill Latta .........................................5

Diana G. Hunt, CIC Barbourville, (606) 546-4132

Convention in Pictures.........................................................................8

John L. Ison West Liberty, (606) 743-4472 Michael G. Johnson, CIC Lexington, (859) 233-1461 Aaron LaRue Bardstown, (502) 348-0050

Dugger Takes Reins as YAC Chair .......................................................12 Don’t Overlook Agency Operations .......................................................13

Skip McGaw Madisonville, (270) 821-3122

Free, Public Wi-Fi Can Be Dangers to Your Health .................................17

Staff

Desmond Presented with High Honors; West Liberty Agency ..................24 Recognized for Outstanding Service

Peggy P. Porter President/CEO Kristie Weyer Insurance Services Manager

Election to Have Significant Impact on Agent Issues ...............................30

Joy E. Holder Membership Manager Arlene Adonis-Hawkins Director of Communications Tara Taylor Marketing Director

DEPARTMENTS

Megan Granger Member Services Director

From The Chair..................................................................................4

The Kentucky Independent Agent welcomes all advertising and editorial submissions. Inquiries for advertising, news releases and editorial contributions can be directed to:

Welcome New Members ...................................................................10

Arlene Adonis-Hawkins P.O. Box 436689 Louisville, Kentucky 40253-6689 Ph: (502) 245-5432 Fax: (502) 245-5750 Email: aadonishawkins@iiak.org

Mission Statement

The mission of the Independent Insurance Agents of Kentucky, working in the public’s best interest, is to be the preeminent advocate for Kentucky Independent Insurance Agents and support their business and professional development needs.

Industry Partners .............................................................................10 Classified Ads ..................................................................................17 People In The News ..........................................................................23 Education & Events Calendar..............................................................28

This publication is intended to provide accurate and authoritative information on the subject matter covered and is distributed with the understanding that neither IIAK, nor any contributing author or publisher is rendering legal, accounting or other professional services and assume no liability whatsoever in connection with its use. The opinions expressed in the articles are those of the authors and does not necessarily reflect those of IIAK.

3

FROM THE Chair

When IIAK Past President, Tommy

Because you understand the value of

Adams, asked me to go through the

your association, I also ask you to reach

leadership chairs of this association, I was

out and encourage our colleagues in

very hesitant and wondered if I was worthy.

business, to join our association. Our

As most past leaders would know, when I

association does so many beneficial things

was told about the compensation for the

that are too voluminous to list. However, I

job, I could not turn it down. By the way,

encourage you to ask them to join, or bring

that compensation is for the love of the

them to an event, get their feet wet, kick

industry. And, I’m sure many of you

the tires. And, if they don’t see the value of

understand that.

what we are doing, let us know.

Bill Latta 2012 - 2013 IIAK Chair

Last year, immediate Past Chair, Tim Conder, shared his story of getting ready to graduate college. He was working in a

Bill Latta with members of his agency, Latta Insurance Services and family (L to R): Tamara Risley, daughter Whitney Floyd, Kim Portman, Dale Sights, Melanie Hutchison, son Justin Latta, and Alisa Sutman.

grocery store as a stocker, when a person reached out to him to encourage him to consider a profession in the insurance industry.

My story like Tim’s and many of yours

the tireless leadership of our past Presidents and Chairs, along with the excellent work

is very similar. I could not even spell

of Peggy and the IIAK staff, our association

insurance much less contemplate working

is very financially strong and involved in

in this industry, until someone invited me.

numerous projects and activities that

Our careers and many other paths that we

enhance your business.

go down in life are because someone asked

I am honored to serve as your Chair for

or encouraged us to take that step. I ask

the next twelve months and I look forward

you to reach out to the bright young people

to serving you and this proud organization.

in your community. Ask them to consider a career in the insurance industry.

4

Due to your involvement as members,

COVER Story

IIAK Installs New Chair Bill Latta

New IIAK Chair, Bill Latta giving his inaugural speech

William S. “Bill” Latta has been inaugurated as the new Chair of the Independent Insurance Agents of Kentucky (IIAK). He was installed at the association’s 116th Annual Convention on November 8, 2012 at the Marriott Louisville Downtown.

Latta, is the President of Latta Insurance Services, Inc., in Henderson. His agency, specializes in commercial coverage and offers a number of specialty products for business and industry, in addition to personal lines and financial services.

“Bill brings over 38 years of experience in the insurance industry to the table,” said IIAK President & CEO, Peggy Porter. “IIAK is proud to have him serve as its Chair for 20122013.”

Latta began his career in 1973 and became a licensed agent in 1974. An active member of the association, Latta joined the IIAK Board of Directors in 2005.

He also currently sits on the IIAK Convention and Government Affairs committees.

A lifelong resident of Henderson, Latta has served on the board of directors of the Henderson County Chamber of Commerce; is a past president of the Henderson Jaycees, Henderson Rotary Club and Henderson Association of Insurance Agents.

Latta has two grown children; son Justin (wife Ami) and daughter Whitney Floyd (husband Wes) who also works at Latta Insurance Services, Inc. Also installed at the event were John Funkhouser, CIC , CWCA as Chair-Elect and Michelle L. Love as Vice Chair.

Funkhouser is the vice president of Johnson & Pohlmann Insurance in Danville, which he has been part of since 1996.

Funkhouser first joined the IIAK Board of Directors in 2008. He currently sits on the Education and Health Benefits committees of IIAK. Aside from his involvement with IIAK, Funkhouser has taught insurance continuing

education for a number of organizations, which helps him stay on top of latest developments in the insurance business.

Active in his community, Funkhouser is a past president of the Special Persons Advocacy Network (SPAN), serves as a community investment panel chair for Heart of KY United Way, is a member of the Danville Rotary Club and local Home Builders Association. He is also a volunteer and passionate about the Wilderness Trace Child Development Center in Danville.

Funkhouser attended the University of Kentucky. He obtained his Certified Insurance Counselor designation in 1997 and his Certified WorkComp Advisor designation in 2010. Currently he is working on his Certified Risk Management designation.

He and his wife Kendra Stamper Funkhouser, have four children: Elizabeth Eshelman, Ande Stamper, Holly and Madeline Funkhouser.

Love is a commercial producer with E.M. Ford & Company in Owensboro, and has been with the company for ten years. Her insurance specialties include municipalities, schools, healthcare and nonprofits.

Love began her insurance career in 1994 with Gardner Insurance in Owensboro as office manager and commercial agent. In 2002 she joined E.M. Ford & Company.

She is a member of the Independent Insurance Agents of Owensboro, a local chapter of the state association. With that organization, she has served in a number of capacities including president, vice president and secretary-treasurer. She first joined the IIAK Board of Directors in 2010 and currently chairs the IIAK Industry Partners committee and is a member of the Convention and InVEST committees.

In her community, Love served for six years on the board of directors of Girls Incorporated, is a founding member of Impact 100, a member of the Junior League of Owensboro since 1999 serving in a number of board and organizational capacities. Love is also heavily involved with the International Bluegrass Music Museum and their International Award Winning ROMP Festival.

She has also volunteered her time with many community organizations including OMHS Foundation for Health, Country Heights Elementary PTA and many others. In the past,

5

COVER Story

The new officers being installed (l to r): Vice Chair, Michelle Love; Chair-Elect, John Funkhouser; Chair, Bill Latta; and IIABA Chair, Bobby Bramlett presiding over the installation.

she has served as vice chair of member services for the Greater Owensboro Chamber of Commerce from 2006-2009.

In 2007, she was awarded the Greater Owensboro Chamber of Commerce Director of the Year.

Love is a 1994 graduate of Brescia College with a Bachelor of Science in

Workers’ Comp is about . . .

Accounting. In 2005 she completed the Leadership Owensboro program She and her husband Chris have a 14 year old daughter named Jessica and an 11 year-old son named Daniel.

Each new officer will serve a one year term for the 2012-2013 year.

Your wish is granted!

You want/we offer: 1- Ease of doing business ! Same-day (often same hour) responses ! Sophisticated technology (including a nationally recognized agency portal) PLUS personalized attention 2- Competitive price 3-Broad underwriting appetite targeting small- to mid-sized risks 4- Unique product ! Specialized approach to service ! Payroll-based billing via the GUARD Reporting Interface for Payroll (GRIP) 5- Superior claims handling that promotes customer retention 6- Favorable compensation

A number of agency appointments are available.

Contact us to learn more:

www.guard.com/apply ÂŽ

Your Business Is Our Business!

6

The annual Agents Legislative Day will be held on February 13, 2013. The purpose of this day is to be a united force and bring awareness and understanding to our legislators of the issues facing agents and to thank them for the support they have provided our organization and the industry. As with every legislative session, it is anticipated that there will be a number of insurance issues that will effect agents. This is an opportunity for you to present information to help legislators make informed decisions.

There is no charge to to attend this event. Registration to this event can be done by filling out the details on this form and submitting it to the Independent Insurance Agents of Kentucky.

Make an appointment to meet with your legislator(s) Please don’t forget that it is important that you call your local legislator(s) and make an appointment to be able to see them on the actual day. They can be reached by calling (502) 564-8100.

Hotel Reservations If you need a hotel room, reservations can be made at the Capital Plaza Hotel, the event venue for Legislative Day. The Capital Plaza Hotel can be contacted by calling (502) 227-5100. The room rate is $88.00 single/double (plus tax). To receive this rate, attendees must make reservations by 1/23/2013.

To register, please fill out the form below or visit www.iiak.org Full Name: Agency/Company: Address: City/State/Zip: Phone:

Email:

Schedule of Events (ET) 8:30 am—9 am Registration & Buffet Breakfast 9 am—9:30 am Issues Briefing 9:30 am—1 pm Meetings with your legislator(s); and/or House Banking & Insurance Committee Meeting (Transportation is on your own. HB&I Committee Meeting is currently tentative) 12 —1 pm Lunch with your legislator and event conclusion (Lunch meeting with legislator and transportation from Capitol is individually arranged)

Please submit this form to IIAK by: Fax: (502) 245-5432 Email: iiak@iiak.org Mail: 13265 O’Bannon Station Way, Louisville KY 40223 If you have questions about this event please call us at (502) 245-5432 or email iiak@iiak.org

7

CONVENTION In Pictures

8

9

WELCOME WELCOME NEW NEW MEMBERS We welcome the following to membership in the Independent Insurance Agents of Kentucky since our last report: Agency Members Burke & Burke Insurance - Louisville The Association, its officers and staff look forward to serving these new members with the best membership benefits and related products and services available.

Thank you to the following companies that are supporting the association through its Industry Partners Program in 2012. Their support helps to make possible many of our events and meetings such as the IIAK Annual Convention, Big “I� Day, Legislative Day, KYIP Sales & Leadership Conference and KYIP Day. The Industry Partners Program is an opportunity for insurance companies, wholesalers and vendors to support the efforts of IIAK and bring to its members affordable, quality events geared towards enhancing the professionalism of association members.

(As of 12/7/2012)

Premier Level

Ohio Casualty Group Safeco Insurance Diamond Level Seneca Risk Services Platinum Level Progressive Gold Level Arlington/Roe & Co. Bolton & Company Risk Placement Services Silver Level Acuity Amerisafe, Inc.

10

Grange Insurance KEMI Kentucky National Insurance Company Keystone Insurers Group S.H. Smith & Company Travelers Bronze Level Auto-Owners Insurance Bituminous Insurance Companies Countryway Insurance FCCI Insurance Group Kemper Preferred Kentucky Agents Finance Company Kentucky Growers KESA KY Associated General Contractors Midwestern Insurance Alliance, LLC. Nationwide Agribusiness Secura Insurance State Auto Insurance Company Summit Consulting Westfield Insurance

If you are interested in becoming an IIAK Industry Partner or would like further information on this program, contact IIAK at (502) 245-5432 or email iiak@iiak.org.

Bringing the Best Together IN KENTUCKY Partner with the best and distance yourself from the competition.

Greg Carlton, Roy Riley & Keith Riley Peel and Holland Financial Group Benton, KY

Sandra Torstrick Blain Al Torstrick Insurance Agency Lexington, KY

Ben, Brett, Kenan & Bud Schultheis Schultheis Insurance Group Evansville, IN

Tommy Adams CM Moore Insurance Agency Bowling Green, KY

Matt Swallows Swallows Insurance Agency Cookeville, TN

Tom Strate Strate Insurance Group Morristown, TN

Virginia Goff Durrett Insurance Agency Louisville, KY

Bob McIntire McIntire & Associates Insurance Cleveland, TN

Carl Schlotman III CAI Insurance Agency Cincinnati, OH

David & Bob Fenner Thomas-Fenner Woods Agency Columbus, OH

Hugh M. McGowan & Hugh B. McGowan McGowan Insurance Group Indianapolis, IN

Tom Chappell & Chris Turnbull Chappell, Smith & Associates, dba. CS&A Insurance Franklin, TN

Partners in Pennsylvania, North Carolina, Virginia, Indiana, Ohio, Kentucky, Tennessee and Georgia.

• Increasing Agency Value for Over 235 Partners in 8 States • Perpetuating & Strengthening the Independent Agency System • Individually Owned & Operated

Doug Walker Walker & Associates Insurance Indianapolis, IN

Call Nancy Tehan at ntehan@keystoneinsgrp.com 888.892.5865 Or visit www.keystoneinsgrp.com

©2012 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. 11

CONVENTION Highlights

Dugger Takes Reins as YAC Chair

The Young Agents Committee of Kentucky has installed Hobert “Moe” Dugger, AAI, of Nicholasville as its new Chair for 2012-2013. Dugger was installed during the Young Agents Breakfast at the 116th IIAK Annual Convention on

Moe Dugger making his inaugural speech as YAC Chair

November 9 at the Marriott Downtown Hotel in Louisville.

Dugger is area vice president at Arthur J. Gallagher Risk Management Services in Lexington. He joined Gallagher after spending eight years with Wells Fargo Insurance Services, also in Lexington. A graduate of Eastern Kentucky University,

Dugger has spent his entire career as an insurance agent.

In his address, Dugger highlighted the important role that agents have in their local communities. “Insurance agents are volunteer firefighters, Rotarians, Little League coaches and community volunteers,” said Dugger. “We’re not only in our communities, but we are a part of our communities. Our job is to help protect those around us, when they need us most.”

This then led him to address the need to perpetuate the industry, particularly with an increasing number of agents retiring in the next few years. “Now more than ever is it important that we attract young talent to the industry,” said Dugger. “I’m going to challenge each and everyone one of you to seek out young people in your community.

Look for the next generation of producers, customer service managers and perhaps even future agency principals. If you have young professionals in your own office, encourage them to become engaged in our association. If you know another agency principal or manager, reach out to them to see if they have young people in their agencies that could become engaged.”

Dugger will serve a one-year term as YAC Chair, and YAC representative on the IIAK Board of Directors.

Goff Named Outstanding Young Agent

Past YAC Chair Aaron LaRue presenting Virginia Goff with the award for Outstanding Young Agent of The Year

12

For 2012 the award for Outstanding Young Agent of The Year was presented to Virginia Goff, CLCS, CWCA. It was presented also at the YAC Breakfast on November 9 during the 116th IIAK Annual Convention at the Marriott Downtown Hotel in Louisville.

“It’s been an honor and wonderful experience not just to represent the Young Agents but also Kentucky,” said Goff. “I’ve learned a lot from the experience and I hope that everyone takes the opportunity to get involved.”

Goff is a commercial lines producer and partner at Durrett Insurance Agency, LLP., in Louisville. She attended Western Kentucky University where she studied Corporate & Organization Communication. Goff is the immediate past Chair of the YAC of Kentucky. She first became involved with the group in 2008.

She has also served on IIAK’s InVEST committee.

Management

Don’t Overlook Agency Operations

By Mary M. Eisenhart, CPCU

When it comes to implementing and managing effective agency operations and the written procedures that are invariably followed by all employees is a given, there are a number of other considerations.

Today’s service has been eroded in many business sectors, not just insurance. It seems processing responsibilities have replaced true service for many agencies, and it takes many forms. Checklists or risk management questionnaires, properly employed, are

COMMITMENT A PROMISE WE DON’T TAKE LIGHTLY

“Volunteerism is a rewarding commitment. This same feeling of gratification comes from my 16-year career in the insurance industry, working with experienced managers and underwriters and assisting our agents in being successful.”

Chuck Craycraft Branch Manager in Westerville, Ohio—and Habitat for Humanity volunteer Connect with Chuck on LinkedIn!

PIA National 2011 MGA of the Year Property/Casualty t Professional Liability t Surety Commercial Transportation t Personal Lines t Premium Finance

800.388.8178

jmwilson.com

critical to this process, as well as a great sales and learning tool. The client response to this professional approach is overwhelmingly positive.

Producers should sell; account managers should provide quality service. When producers take on “servicing,” no one sells, service levels aren’t enhanced and E&O exposure often increases. Account managers should not be deprived of the opportunity to learn and grow, while providing a quality service experience to their clients. When more substantial parts of servicing are handled by others, it becomes a self-fulfilling prophecy that the account manager position becomes dumbed down to a basic processing level.

It’s not surprising that a large portion of the work on any CL account manager’s desk will often have to do with renewals. So why not do it right? The agencies that start the renewal process at least 120 days out are the ones that deliver a better experience in every way to the client-and to themselves.

When it comes to compensation, desired behavior comes from being rewarded. Keep rewards simple, and keep a bit of every employee’s skin in the game. Ultimately, the operations manager’s compensation should also be tied to performance to reach desired objectives. Base salary plus bonus (not commission for servicing staff) really works if implemented properly.

The fewer the exceptions, the better you will operate. Producer-owners are easily swayed by employees’ excuses for nonperformance and tend to hire more staff than necessary; and they can even be at the root of most exceptions that reduce the agency’s operational effectiveness. Real leadership is needed at an operational level, to counteract objections effectively. It takes intimate knowledge of all operations to create the best results.

Once an agency owner can say “We’ll miss you” to the employee he is most afraid of losing, the real work can begin.

Leadership is the ability to get people to do what they should do, not necessarily what they want to do. This includes the courage to eliminate those from the equation who cannot or will not operate properly.

One of an agency’s most important assets is its database. Agencies that can move beyond using their MIS as a typewriter can harness the power of having real,

13

Ownership Commitment The commitment of owners to operational effectiveness is crucial to achieving employee growth. Agencies large and small are often overwhelmed by the cost or complexity of operational solutions. Some of the best solutions are low-cost and high benefit where the real cost is in the commitment and follow-up.

Effective operational management takes discipline, but it is achievable.

The results just might be: • Producers who prequalify and sell quality accounts; • Motivated account managers who handle significant books of business; • Redefining service exposure analysis and risk management rather than rote processing; • EFT and credit card premium payments made directly to carriers, rather than any agency staff serving as bill payment clerks accepting walk-in payments; • Outgoing calls to round existing, quality accounts rather than playing “beat the bank” with the same, chronically poor paying clients each month; • Consistent procedures with exceptions; • A truly automated environment; and • Profitability and growth.

14

consistent, accurate information in place for making quality decisions, increasing sales and providing world-class service. It makes sense, saves time, eliminates E&O, increases profitability and delights clients.

Consider the real cost of not leveraging the full power of your automation tools; it’s more than you can afford to lose.

Most agencies do not have training programs

in place, yet they hire green, unlicensed individuals with the best intention of growing their own. Creating an educational career path for every employee is critical. It should include components of agency training and education, as well as outside, national level designation classes. The key is to create a baseline for knowledge and expertise, and make certain all employees attain at least that level while continuing to learn and grow.

If you can’t do it for yourself, do it for your clients. Commit to a plan, and oversee its execution. Leverage your current resources. Assess your needs and fill any critical gaps with the proper tools, staff and resources. Start by letting go of something old and truly implementing something new for a different, desired result. 1!

Mary M. Eisenhart, CPCU, is the owner of Eisenhart Consulting Group, Inc., specializing in providing management and operations consulting for insurance industry organizations.

We’re celebrating our 100th year by planning for our next 100 years.

Tanya Wentzel, Des Moines Branch Marketing Manager Troy Boysen, Minneapolis Branch Commercial Underwriter Connie Jarzynka, Omaha Branch Claims Adjuster Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

Cincinnati Branch: 800.732.5595 | Home Office: Des Moines

www.emcins.com © Copyright Employers Mutual Casualty Company 2011 All rights reserved

15

16

Technology

Free, Public Wi-Fi Can be Dangerous to Your Health

By Steve Anderson

A few days ago I was sitting at a local coffee shop and watched a young lady come in with her laptop. She sat down at the table, connected her laptop to the free wireless network, and proceeded to log into her online bank account. I remember thinking at the time, “That is a dangerous practice.”

I then received an email from Steve Aronson, an agent in Massachusetts, highlighting the same issue. He suggested I write about how to protect your information when using free public Wi-Fi. Wireless access to the Internet has become a necessity for many people so they can stay connected. Whether you’re on vacation at a resort, waiting in an airport or sitting in a coffee shop, it’s likely you will be able to connect to the Internet through a wireless network provided by the property owner. Sometimes these will be offered for a small fee and sometimes they will be free.

But be careful: sometimes free Wi-Fi can

be a scam perpetrated by criminals hoping to steal your personal information. You could end up being the target of a “man in the middle” attack, in which a hacker is able to steal the information you send over the Internet, including usernames and passwords.

And you could also have your files and identity stolen and end up with a spywareinfested computer. The attack could even leave your laptop open to hackers every time you turn it on, by allowing anyone to connect to it without your knowledge.

How the attack works You go to an airport or other hot spot and fire up your PC, hoping to find a free hot spot. You see one that calls itself “Free Wi-Fi” or a similar name. You connect. Bingo - you’ve been had!

The problem is that it’s not really a hot spot. Instead, it’s an ad hoc, peer-to-peer network, possibly set up as a trap by someone

Classified Ads Acquisitions Established Louisville agency interested in acquiring insurance

Acquisitions&Producers A well established regional agency is interested in individual

agencies in Jefferson and surrounding counties. If you are interested in

producers and insurance agencies considering selling or merging.

selling, merging or need assistance with perpetuation, we would like to

Commercial lines & personal lines wanted in Louisville, Lexington,

talk with you in confidence. Call R. Alex Rankin, CPCU or Steve B.

NKY and BG. We represent the best and desired markets for

Thompson, CPCU, at Sterling G. Thompson, Co. at (502) 585-3277.

growing an agency or book of business. Confidentiality provided to all interested parties. Call Scott Ferguson at The Underwriters

Looking for

Group (502) 244 – 1343.

Producers Independent with top best markets looking to expand presence

Producer Wanted

in Jefferson, Oldham or Shelby counties. Wanting Personal lines,

Louisville Insurance LLC has producer opportunities with flexible

Producer or book of business to move or purchase. All arrangements

compensation plans while offering ownership in book of business

possible, in strict confidence. Please send inquiries to Turner

produced. Confidentiality provided to all interested parties. Contact

Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065

Glenn Pike at 502-473-5454 or glenn@louisvilleins.com.

or call Kurt Turner, CPCU at (502) 633-6060.

To place a classified ad please contact Arlene Adonis-Hawkins at aadonishawkins@iiak.org or (502) 245-5432.

17

Technology

with a laptop nearby. You can use the Internet, because the attacker has set up his PC to let you browse the Internet via his connection. But because you’re using his connection, all your traffic goes through his PC, so he can see everything you do online, including all the usernames and passwords you enter for financial and other websites.

In addition, because you’ve directly connected to the attack PC on a peer-topeer basis, if you’ve set up your PC to allow file sharing, the attacker can have complete run of your PC, stealing files and data and planting malware on it.

You can’t actually see any of this happening, so you’d be none the wiser. The hacker steals what he wants to or plants malware, such as zombie software, then leaves, and you have no way of tracking him down.

All that is bad enough, but it might not be the end of the attack. Depending on how you’ve connected to that ad hoc network, the next time you turn on your PC, it may automatically broadcast the new “Free WiFi” network ID to the world, and anyone nearby can connect to it in ad hoc peer-topeer mode without your knowledge - and can do damage if you’ve allowed file sharing.

Security company Commtouch (previously Authentium Inc.) has found dozens of ad hoc networks in Atlanta’s airport, New York’s LaGuardia, the West Palm Beach, Fla., airport and Chicago’s O’Hare. Internet users have reported finding them at LAX airport in Los Angeles.

Commtouch did an in-depth survey of the ad hoc networks found at O’Hare, visiting on three different occasions. It found more than 20 ad hoc networks each time, with 80% of them advertising free Wi-Fi access. The company also found that many of the networks were displaying fake or misleading MAC addresses, a clear sign that they were bent on mischief.

How to protect yourself The easiest way to protect yourself from Wi-Fi fraud is to not connect to any free wireless networks. If you’re in a coffee shop, airport or hotel that has a legitimate Wi-Fi connection for a small fee, it’s worth the price for peace of mind. Ask the business’ staff if there is a hot spot available and get the name from them.

18

Mobile device users should make sure they have downloaded all the security updates for their operating systems.

If you function in a wireless environment on a regular basis, you are better off spending the money on a wireless card that you get through AT&T, Verizon or Sprint.

This way, you have your own relatively secured wireless connection. This is what I do for access.

If you choose to take advantage of free Wi-Fi availability, here are some things to keep in mind.

• Never connect to a “computer-tocomputer” network. When choosing a wireless network, check out the description of each one. A normal wireless network is simply called “wireless network” not a “computer-tocomputer” network.

• Use HTTPS to access webmail and avoid protocols that don’t include encryption.

• Turn off your computer’s file sharing capabilities. The instructions will vary slightly depending on what computer system you’re using (Windows XP, Vista, Windows 7, etc.).

• Use a software firewall to further control who can connect to your computer and how.

• Avoid conducting financial transactions or accessing any sensitive websites if you aren’t using an Internet connection that you know and trust.

It pays to be vigilant whenever you are connecting to a wireless network. If you have any doubt about the Wi-Fi connections, then don’t connect. It’s just not worth the potential problems.

Steve Anderson wears many hats these days. He has been a licensed independent agent for 30 years and is Executive Editor of The Anderson Agency Report (TAAR), a monthly newsletter dedicated to providing independent agents with the insurance technology information they need to more effectively manage and grow their agencies.

He is also president of The Anderson Network, Inc. which was formed to help agents and brokers maximize productivity and profits using practical technology. He can be reached via email at steve@steveanderson.com.

.

Paducah

.

ashland

From Ashland to Paducah We’ve got you covered

Workers’ Compensation Property & Casualty

1-800-442-5723 19

Our Members Say It Best

The KRF-SIF’s loss prevention and safety training has meant the world to our company. Prior to becoming members of the Fund, we spent quite a bit on annual safety training. Since the Fund provides this type of training at no charge to its members, we have been able to significantly decrease our training expenses.

Jennifer Shaw, HR Manager, Kentucky Lake Oil Company ‌the main reason we went with the KRF-SIF workers’ comp program is because of their reputation for handling claims management in a manner that is fair not only to the individual, but also to the company holding the policy. The Fund has proven to be able to reduce the cost per claim and overall claims costs.

My advice is that if claims management counts, you can count on KRF-SIF. If not, you can go anywhere.

Bruce Pieratt, President/CEO, Pieratt’s

Want to have a voice in your workers’ comp? For more information, contact your independent agent or: Mary Carney, KRF-SIF Program Manager ‡ /RXLVYLOOH DUHD )D[ e-mail: mcarney@ccmsi.com www.krfsif.org

20

Administered by CCMSI

We offer independent agents mobile home insurance at new competitive rates that will help you compete and expand your base.

We can find coverage for homes that have something most homes don’t.

Wheels.

Online quotes are available and no minimum volume is required.

Just go to www.boltonmga.com and click “Online Rating.”

BOLTON & COMPANY Tracking down the right coverage for over 45 years.

2400 Waterfront Plaza · 325 West Main Street · Louisville, Kentucky 40202 Telephone 502.583.8361 · 800.292.6597 · Fax 502.584.6131 · www.boltonmga.com

21

22

PEOPLE In The News

IIAK Appoints New Board Members

The Independent Insurance Agents of

a member of the Bardstown-Nelson County

Kentucky have made three new appointments

Chamber of Commerce, Lincoln Trail Home

to its Board of Directors for 2012-2013. They

Builders Association and the Old Kentucky

include:

Home Board of Realtors. He and his family are members of St. Thomas Parish in

Michael G. Johnson, CIC Johnson is a producer with Lexington based agency, Al Torstrick Insurance Agency and has been with the organization since 2000. He attended Bowling Green State

Bardstown.

LaRue and his wife Tanya have two young children; a daughter, Audrey, and son Clay.

He will be serving a three-year term on the IIAK Board of Directors

University.

As an active member of the association, Johnson has served on a number of IIAK

McGaw is the vice president of Riddle

committees including the Membership

Insurance in Madisonville, KY and has been

Services and Convention committees. He

with the agency

served as Chairman of the KYIP committee

for over 17

in 2008-2009.

years. The

In his community, Johnson serves on the Mike Johnson

Barret “Skip” McGaw, CIC,

agency has

board of the Bluegrass Crime Stoppers, is a

been serving

certified tourism ambassador for the

customers in the

Jessamine County Chamber of Commerce

central and

and served on the membership committee

western

for the Lexington All About Business

Kentucky

Networking Group.

regions since

Johnson and his wife Ali reside in Lexington with their two young sons, Davis and Donovan.

He will be serving a three-year term on the IIAK Board of Directors.

the 1920s.

He is active

Skip McGaw

in his local community, and currently serves on the board of directors for the MadisonvilleHopkins County Economic Development, Hopkins County YMCA and Hopkins County

Aaron LaRue LaRue is the vice president and branch

is a member of the Madisonville Rotary Club,

manager for LaRue Insurance in Bardstown.

and past president and life member of the

He has been with the agency since 2000.

University of Kentucky Alumni Association

The agency has been serving customers in

for Hopkins County and past division chair

the central Kentucky region since the 1930s.

for the Hopkins County United Way.

As an active member of the association,

Aaron LaRue

Community Clinic and Hancock Bank. He

McGaw is a graduate of the University

LaRue served as the Chair of the IIAK Young

of Kentucky, having also lettered on the UK

Agents Committee from 2010-2011. He was

men’s basketball team in 1990. He obtained

awarded the Outstanding Young Insurance

his Certified Insurance Counselor (CIC)

Professional Award by that group in 2011.

designation in 2001.

He has served on a number of IIAK committees including the Convention, Trusted Choice, and Education committees.

Also active in his community, LaRue is

McGaw and his wife Melinda have a 2year-old daughter named Marlee.

He will be serving a one-year term on the IIAK Board of Directors.

23

CONVENTION Highlights CSR of the Year went to Ison Insurance who are represented by Jenni Ison, Lisa Collins and John Ison.

Desmond Presented with High Honors; West Liberty Agency Recognized for Outstanding Service

The Independent Insurance Agents of Kentucky awarded its highest honor this year to Dennis D. Desmond, CIC, of Alexandria. The E. Starling Holloway Award is the highest honor given by the association, and was presented at its 116th Annual Convention on November 8, 2012 at the Marriott Louisville Downtown in Louisville.

“Denny has been and continues to be the ultimate example of the independent agent,” said Bill Stiglitz, past President of IIAK and the Independent Insurance Agents & Brokers of America (IIABA). “No one deserves this recognition of service to family, community and the independent agency system more than Denny Desmond.”

Desmond, is an owner of Desmond Insurance in Bellevue, a family owned and operated independent insurance agency. He began his insurance career in 1968 after a tour of service with the U.S. Navy. Highly involved in the insurance industry, Desmond served as the Chair of the Young Agents

E. Starling Holloway Award recipient Denny Desmond with members of his family and agency (L-R): Tim Desmond, son; Shannon Desmond Walz, daughter; Kevin Desmond, brother and President of Desmond Bros., Inc.; Denny Desmond; wife, Jan; daughter, Sarah Desmond Beyersdoerfer,; Dennis Desmond, son; and Colleen Desmond, daughter.

Committee of IIAK in 1979. He later joined the IIAK Board of Directors in 1991, and then became its President in 1999. On the national level, Desmond was the State National Director for Kentucky, serving on the board of IIABA from 2002 to 2009.

For his service to the insurance industry, Desmond has been previously honored with the IIAK President’s Award in 1995, 2004

24

and 2009 and IIAK Outstanding Young Agent Award in 1980.

Not only has Desmond been dedicated to his industry, but also to his community and country. He served in the U.S. Navy Reserves from 1967 to 1972. From 1975 to 1978 he was president of Transitions, Inc. It is the first non-medical residential treatment program for substance addiction in the greater Cincinnati and Northern Kentucky region.

He has served on the board of education for St. Catherine of Sienna School in Fort Thomas, KY and served as event chair of Villa-Rama in 1988 and 1995, a fundraising event for Villa Madonna Academy in Villa Hills, KY. Desmond is also a member of the Bellevue Veterans Association, the Knights of Columbus and president of the Commander Carrier Division/Group Six Reunion Group. He was presented by the Northern Kentucky Chamber of Commerce Salesman of the Year award in 1980.

“Denny has been a tireless advocate for his industry, his community and country,” said Peggy Porter, IIAK President & CEO. “His involvement in all these areas, exemplify the true quality of an independent agent and he is a fitting honoree of the E. Starling Holloway Award.”

The E. Starling Holloway Award is presented to an individual who has made a significant industry contribution, enhanced the ideals and reputation of the insurance industry, or has made a significant contribution to his or her community, state and country. The recipient does not have to be a member of IIAK. In addition to presenting the E. Starling Holloway Award, the association, presented the CSR of The Year Award this year to an entire agency - the Ison Insurance Agency in West Liberty. It was presented with the award, also during the 116th IIAK Annual Convention.

Traditionally presented to an individual, the award was this year presented to the entire Ison Insurance Agency for its

CONVENTION Highlights

overwhelming service to its insureds and West Liberty community during the March 2nd tornado that devastated the region.

“The agency immediately stepped in to help their clients and the community,” said IIAK President & CEO, Peggy Porter. “No one can imagine the devastation that the community sustained and the volume of claims that Ison Insurance had received and

handled so efficiently.”

The Ison Insurance Agency building was heavily damaged by the tornado and was without gas, electric, Internet and telephones for over a week. This didn’t deter the agency from going above and beyond taking names, cell phone numbers and damage details with paper and pen for the clients who came to file a claim. Employees went to shelters to gather claims information and to other locations that had power to serve their clients immediately. Over half of the claims that were filed by Ison Insurance Agency were done before the client called the claim in to the office.

John Ison and the staff would gather at the home of an employee who had power to file claims and make phone calls to check on clients.

Some worked until 3 and 4 in the morning to get the job done.

At the same time, the agency was out in the community, helping coordinate and receive donations that were being sent to Morgan County. The agency served as a storage place for items worth thousands of dollars in donations.

Clothing, school supplies, household goods, cleaning supplies, toiletries, bedding, child care products and the list goes on. They were stored and distributed from the Agency to those who were in need. And on weekends John would go out into the community and deliver supplies to those in need, not because they asked for them but because they recognized who was in need.

The CSR of the Year Award is typically given to a person, working in an IIAK member agency as a customer service representative who typifies the ideals of service. An individual’s experience, education, community service and attitude may be taken into consideration in the judging of the award. An individual may or may not hold an insurance license to be considered for the award.

25

26

27

EDUCATION & Events Calendar

% $

$ # - $ %"' #$"% $ "( ((' ) ( @ $)&' $& #

$ # $ #( & > 2

) ( $# 5 & # # #( &. $) '* !! & ? 2 +($# #')& # . $+! # & # & @ 2 '( &# #() , # * &' (,. "$#

- ## $" #$"% $ "( & ' 5 &(- # ) ( ? $)&' $& #

$ # $ #( %& ! :? 2

) ( $# 5 & # # #( &. $) '* !! %& ! :@ 2 ' '( & ". + #' $&$ ) )'( ? 2 '( &# #() , # * &' (,. "$# ) )'( @ 2 +($# #')& # . $+! # & # ($ & ;< 2

) ( $# 5 & # # #( &. $) '* !! ($ & ;= 2 '( &# #() , # * &' (,. "$#

$ # - * " & #$"% $ "( ((' ) ( @ $)&' $& #

$ # $ #( %( " & :@ 2 ' '( & ". + #' $&$ %( " & :A 2

) ( $# 5 & # # #( &. $) '* !! %( " & :B 2 '( &# #() , # * &' (,. "$#

" "

& $ $ ( "$ # "# " " + , & ( $ ' # " #( )# :;1:>. ;9:<. $) '* !!

! & $#

0./1 # $ & ' / &) &, :<. ;9:< " / % ( ! ! - $( !. & # $&(.

/ A/<9 %0"0 #$" $ / +++0 0$&

$) # & '( & $& ( ' * #(' # ) ( $# ' " # &' $& # $)( "$& # $&" ( $# , * ' ( # +++0 0$& 0 $) # !'$ !!

, % $# ( 3>9;4 ;=>1>=<; $& " ! 6 0$& 0

28

29

GOVERNMENT Affairs

Election to Have Significant Impact on Agent Issues

By Charles Symington

30

What are the consequences for health care, taxes and insurance regulation?

The 2012 elections have come and gone, and while there will be many new faces in the 113th Congress next year, there is no shift in the balance of power between the two parties in either the White House or Congress.

Many independent agents may be wondering how the elections will impact their livelihoods. Here’s a snapshot of the top federal issues affecting independent agents and their customers, and how the election results may alter the landscape for the end of 2012 and into 2013.

Health Care: Near the top of the list of agent concerns is the future of the Patient Protection and Affordable Care Act (PPACA).

Unfortunately, the status quo in the balance of power in Washington translates to no wholesale repeal of the PPACA. With the specter of repeal removed for now and the Obama Administration forging ahead with implementation, it is likely that many states will move forward with their portion(s) of implementation as well (state exchange creation, navigator programs, etc.).

The Big “I” government affairs team will continue working toward solutions that will address agent-specific issues, such as legislation in both the House and the Senate to exclude agent compensation from the Medical Loss Ratio (MLR) regulations. However, with little Democrat support for the MLR exclusion, it is expected to continue to be an uphill climb.

Taxes: Tax policy also promises to be a front-burner issue both during the upcoming “lame-duck” Congress and in the upcoming 113th Congress, which will begin in January.

All 2001-2003 tax rates are due to expire at midnight on Dec. 31, 2012, resulting in significant increases in individual rates, capital gains and dividends, as well as punitive estate tax rates and exemption amounts if Congress fails to act. With so many independent agencies paying taxes at the individual rates as “passthrough” entities, the potential for drastic tax increases is significant.

With President Barack Obama in the White House and a divided Congress, the expected debate in December will likely focus on whether or not to extend rates for “higher income” taxpayers. An effort toward a wholesale overhaul of the tax code is also a possibility next Congress, but will likely be considered in the context of deficit reduction.

Crop Insurance: Last spring the Senate passed its version of a Farm Bill, S. 3240, the “Agriculture Reform, Food, and Jobs Act of 2012.” Meanwhile, the House was unable to reach an agreement on its version of a Farm Bill and the bill expired Sept. 30, 2012, though

most essential programs, including crop insurance, are funded until March 2013 by a continuing resolution passed by Congress in September.

With a heavy focus on budgetary and tax issues in the “lame-duck,” there is not much time left for a full debate on a new Farm Bill.

It is highly likely that a one-year extension of the current Farm Bill will be passed and that negotiations for a new bill will begin in the spring.

Insurance Regulation: This past July marked the two-year anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). While the bill largely left the day-to-day regulation of insurance in the hands of the states, it did require the Federal Insurance Office (FIO) to submit a report on ways to “Modernize and Improve the US System of Insurance Regulation.”

That report is almost a year overdue, though now that the election is over, it is expected to be released in the near future. With the election results, other provisions of Dodd-Frank that could impact the insurance market (systemic risk oversight, Consumer Financial Protection Bureau, etc.) are expected to continue to see rigorous implementation.

Terrorism Insurance: Terrorism risk insurance promises to be a top issue in the 113th Congress, since current authorization of the Terrorism Risk Insurance Act (TRIA) is due to expire on Dec. 31, 2014. Without this program in place, the availability and affordability of terrorism insurance for commercial clients will be in doubt. No matter who controlled the levers of power in Washington, D.C., an extension of the current program was never expected to be easy.

While not necessarily a partisan issue, there are a number of federal policymakers, mostly from rural areas, who question the need for the program. However, some form of federal involvement is expected and the Big “I” has made the issue a top priority for the 113th Congress.

Every election is guaranteed to have an impact on the livelihoods of Big “I” members, their clients and consumers. Yesterday’s historic election proved the importance of participating in the political process. With so many important issues on the table, it will be more critical than ever for agents to be involved during the 113th Congress by participating in Big “I” grassroots campaigns, contributing to InsurPac and attending the annual Big “I” Legislative Conference April 17-19, 2013, in Washington, D.C. Charles Symington is Big “I” senior vice president of government affairs.

E R A C H T I W E L HAND We believe "handle with care" means more than a stamp on a box. We believe the best way to handle a claim is to prevent it from happening in the first place. Our SAFETY W.O.R.K.S. program offers an array of tools focused on training, education and awareness of workplace risks. If you do have a claim, we handle your claims with the utmost care and personal attention. Our fair-minded claims adjustors will guide you through the process. And our financial results show proof of our commitment to "handle with care" our financial strength and stability.

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

NovDec12_IFCIBC.indd 1

12/18/12 5:57 PM

1046 Louisville, KY

13265 O’Bannon Station Way Louisville, KY 40223

NOVEMBER

We offer independent agents commercial auto insurance at very competitive rates for almost any situation you may find: long-haul, local and intermediate trucking, limousine service, fleet and cargo.

DECEMBER 2012

We can find coverage for almost any commercial auto situation that you can think of.

Well, almost any.

No minimum volume is required.

Just go to www.boltonmga.com to submit online.

BOLTON & COMPANY Tracking down the right coverage for over 45 years.

2400 Waterfront Plaza · 325 West Main Street · Louisville, Kentucky 40202 Telephone 502.583.8361 · 800.292.6597 · Fax 502.584.6131 · www.boltonmga.com

Highlights of the 116th Annual Convention Free, Public Wi-Fi Can Be Dangerous to Your Health