Kentucky IA - Nov/Dec 2014

E&O: Santa’s not the only one who needs to check his list twice Page 7

118th Annual Convention Highlights Page 16

How Will Election 2014 Impact Agent Issues?

Page 23

AHHH, KENTUCKY. A WONDERFUL PLACE TO LIVE AND WORK. All of us at KESA are proud to call Kentucky our home and we’re proud to call KESA our workplace home. KESA’s Kentucky roots run deep with 34 years of providing workers’ comp coverage for Kentucky’s employers. All across our beautiful Commonwealth, from the biggest cities to the smallest towns, KESA’s goal is simple - to keep Kentucky’s workforce safe and provide coverage when a workplace injury occurs. We’re proud of the work we do and we’re proud to be a long-standing part of the Commonwealth of Kentucky.

Thank you for partnering with KESA.

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

Inside

What's

Page 7

Contents Page 16

13 Selling & Service: It’s Not Brain Surgery

16 118th Annual Convention & Trade Show Highlights 23 How Will Election 2014 Impact Agent Issues?

Page 23

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. Inquiries 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

In Every Issue 4 From the Chair

26 Technology - NEW

5 Benefits Spotlight

31 Advertiser Index - NEW

7 E&O - NEW

31 Classified Ads

10 Education Calendar

31 New Members

12 Trusted Choice

31 Social Media Links - NEW

17 Industry Partners

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.

www.iiak.org | November/December 2014 | 3

Chair

Officers

From the

Michelle L. Love

Chair, Owensboro 270.926.2806 David M. Houk

Chair-Elect, Horse Cave 270.286.2724 Jason D. Billington, CIC Vice Chair, Murray 270.753.4751 James D. England, AAI

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

National Director, Leitchf ield 270.259.5465 John Funkhouser, CIC, CWCA

Immediate Past Chair, Danville 859.236.5922

Directors Chip Atkins

Louisville, 502.585.3600 Allen J. Crawford, CIC, CSRM

Somerset, 606.679.6311 Sharon B. Hill

Jamestown, 270.343.3144 Michael G. Johnson, CIC

Lexington, 859.233.1461 Aaron LaRue

Bardstown, 502.348.0050 Skip McGaw, CIC

Madisonville, 270.821.3122 Adam T. Murphy, CIC, CISR, CPIA

Cadiz, 270.522.9964 Crystal Reid, CIC

Paducah, 270.442.3533 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

As 2014 began, our office read, “One Word that will change your life” and we each came up with a word that meant something to us. It was a great growing experience for our office and brought us all together for a common goal. I chose the word FOCUS to remind me to focus on the important things in life: family, work, God. I mention this because I re-read this book in preparation of taking over as Chair and I’ve picked a new word for my year as the 118th Chair of IIAK – VISION. Vision for my hopes and dreams for our association over the next year.

A little over 12 years ago I started working at E.M. Ford and haven’t looked back.

My boss, Steve Ford, has been a strong and constant mentor to me and I am exactly where I need to be. I am proud to say that I’m the third person from our office to lead this board (Reyburn Ford - 1980; Steve Ford - 2000-01).

Looking toward the future, I have many ideas and visions for our board and association. I have a vision of developing an Internship Program that we can make available to our members to help in recruiting new talent. I also want to strengthen our relationship with EKU’s Risk Management and Insurance Program to attract more people to our industry and provide opportunities for their graduates. Another item on the list is to research some programs and provide training for your current employees. This would be focused on professional development and not driven by CE Credits. We want the principals of our agency members to see the value in sending their staff to these various training opportunities to help them gain needed skills.

Another area of concentration this year will be strengthening our association’s relationship with our Industry Partners. We’ve taken some steps in this direction and plan on expanding our meetings and partnerships with you in order to continue to grow together.

One way of recruiting and retaining talent is participation in our association. I challenge our agency principals to encourage and support your young agents to be more involved. Ask them to come to Legislative Day, Sales & Leadership Conference and Convention. Encourage them to become involved with our Young Agent Committee and the training, networking and leadership opportunities it has to offer. The value of those relationships they will build will reap benefits for your agency for many years to come.

As you can see, I have a FOCUS on a VISION to further our mission to be the preeminent advocate for Kentucky Independent Insurance Agents and support our businesses and professional development needs. I hope you will all see the value in this initiative as we move ahead during this next year to help us all become more successful in the future.

Sincerely,

Kristie Weyer, CISR

Insurance Services Manager Michelle L. Love - Chair

4 | www.iiak.org | November/December 2014

Benefits Spotlight

‘Tis the Season for Online Shopping: Prevent Cyber Crime with these 6 Tips

By: Trusted Choice Staff

It’s the season of giving, but don’t give away personal information to identity thieves! Between crowded big box stores, packed mall parking lots and long lines, more and more Americans are doing their holiday shopping online. While this has become a tremendous convenience for many people, it comes with a few risks. Here are six ways to make sure your online shopping experience is a jolly one:

1. Avoid Shopping Online In Public.

While sitting in your local coffee shop browsing for deals online while you sip a latte might be relaxing, you can never be sure who might be looking over your shoulder. With the rise of camera phones, an identity thief could snap a picture of your screen- and your credit card information. You should also avoid using public Wi-Fi when making purchases online- best to do your online shopping from the comfort and security of your own home and network.

2. Always manually enter credit card information Some sites give you to the option to save your credit card information so that if you visit the site again you won’t have to re-enter it. While this seems like a convenience, particularly if you regularly make purchases from that site, you run an increased risk that your information could be compromised should the company suffer a data breach. Re-enter your payment information each time you visit the site to make a purchase.

password to access your email or online banking, data thieves could potentially be able to do a lot more damage, so it’s important to use different passwords for your online activities, so that if one site is compromised, your other information won’t be at risk.

5. Avoid Scams When you shop online, stick to reputable companies that you are familiar with. If you encounter links or offers through email from addresses that you aren’t familiar with, or that offer discounts and deals that look too good to be true, play it safe and don’t click suspicious links and delete emails from sources you aren’t familiar with.

6. Make Sure You Have Identity Theft Protection Insurance It’s easy and generally inexpensive to have special coverage for these risks added to your homeowners or renters insurance policy, and some companies include it automatically on certain policies. The coverage will help you pay for any attorney’s fees, lost wages and other expenses you may incur to restore your ID or credit.

3. Use The Same Credit Card for All of Your Online Purchases If for some reason your information is stolen or compromised, it makes it easier to follow up on the theft of your information, and you only have to worry about canceling one card instead of multiple cards. But… 4. ...Use A Different Password for Shopping Than For Your Other Accounts If an online retailer you use has their site hacked, data thieves could have access to the password you use on the site. If you use the same

So avoid the crowds and the hassles and do your shopping online this year with a little more peace of mind!

www.iiak.org | November/December 2014 | 5

WHEN YOU KNOW your agency is protected by the best E&O PROGRAM in the nation, you can focus on

hunting for business.

Swiss Re Corporate Solutions policyholders: Don’t miss out on the invaluable risk management resources available exclusively to you. Log in to www.iiaba.net/EOHappens to access claims statistics, prevention tools, insightful articles and more.

the Big “I” Professional Liability Program Prevent.

Our exclusive risk management resources help your agency avoid making common preventable mistakes.

Protect.

Our superior coverage through Swiss Re Corporate Solutions and our experienced claims teams are in your corner in the event of a claim.

Prosper.

When you know you have the best agency E&O Protection, you can focus on growing your most important asset–your business.

The Big “I” and Swiss Re Corporate Solutions are committed to providing IIABA members with leading edge agency E&O products and services. The IIABA and its federation of 51 state associations endorse the comprehensive professional liability program offered by Swiss Re Corporate Solutions.

Visit www.iiaba.net/EOContact to connect with your state association today.

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of Swiss Re Corporate Solutions and is licensed in all 50 states and the District of Columbia. © 2012 Big “I” Advantage, Inc. and Swiss Re .

6 | www.iiak.org | November/December 2014

E&O

Make a List and Check it Twice Santa isn’t the only one who should be meticulous about using a checklist. While no E&O discussion would be complete without preaching about the importance of documentation, often this mantra devolves into: “Blah, blah, blah. Documentation!

Blah, blah, blah….”

It seems basic, but a lack of documentation can turn a simple case to defend into a nightmare.

Consider some past events. While both the Casey Anthony murder trial and the perjury mistrial of Roger Clements involve criminal charges, the importance of evidence and evidentiary burdens was clear. In the Anthony trial, the prosecution did not prove the case to the satisfaction of the jurors. The lack of hard evidence was too difficult to overcome. In the Clemens case, the judge declared a mistrial when the prosecution used inadmissible evidence, making clear the lesson that not all evidence is allowed into trial. While E&O cases are in civil court, lessons learned

By: Anne Payne, J.D.

from criminal cases still hold true. It is very difficult to prevail on an E&O claim without good evidence to support your position.

Checklists make documentation part of the normal work-flow. Consistently using checklists improves efficiency by eliminating multiple calls back to the client for more information. At times, it can lead to the selling of more insurance coverage (a checklist review can serve to educate a client to additional coverages not previously considered). Every time a checklist is used, staff receives training on the various coverages available. Finally, the checklist can serve as good evidence in the event of an E&O claim.

Coverage checklists are essential, but checklists in general can be used in other areas as well—such as work flow process, valuation determination and to delineate the differences in coverage that various carriers may offer. In order for checklists to be valuable, they must be used consistently, completed properly and both the insurance professional and the customer must understand them.

Checklists are more likely to be used if they are helpful to the insurance professional.

Nobody likes busy work. Take time to develop or choose the appropriate checklists for your business. There are also commercially-available coverage checklists that can be very comprehensive. Making checklists relevant and keeping them up to date is critical to getting people to use them.

Additionally, the checklist will be useless if it is not completed properly. For example, if a checklist is not really discussed with the customer, is not done contemporaneously with the procurement of coverage or selection/rejection sign-offs are not obtained from the customer, then

www.iiak.org | November/December 2014 | 7

E&O

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issues can arise. In these instances, the checklist does not become good, usable evidence and does not assist you internally in training or in helping to educate the customer.

Likewise, a checklist that is routinely completed, but not understood, is not helpful.

Consider a scenario where an E&O claim has resulted in litigation for failure to procure necessary coverage. The plaintiff’s attorney is deposing the customer service representative (CSR) who filled out the checklist. Included in the checklist is an acronym for a certain coverage that might have been beneficial for the client to purchase. The plaintiff’s attorney asks the CSR what the acronym stands for and the CSR says “I don’t know” or perhaps guesses incorrectly. What could have been good evidence will now be used against the agency.

Do not underestimate the value of using checklists.

A well-done checklist can even have the effect of thwarting an E&O claim from being pursued. For those claims that are pursued, decision makers want to see hard evidence. Your claims professional and defense attorney, armed with a good checklist,

8 | www.iiak.org | November/December 2014

will have a way to defend you that can be clear and unambiguous for a judge or jury. Utilize your industry resources to assist in formulating a relevant, easy-to-understand checklist that will actually be used.

The result will be increased efficiency and a potential source of good evidence.

Anne Payne, J.D., is an assistant vice president, claims and liabilities, with Swiss Re Corporate Solutions and handles claims against insurance professionals.

Do YOU need E&O? Contact Kristie Weyer at kweyer@iiak.org or call 502-245-5432

www.iiak.org | November/December 2014 | 9

Education CRM: Analysis of Risk Louisville • February 25-28, 2015

____________________________________________________________________________________ ABEN Webcasts (http://iiak.aben.tv/) Annuity Basics and Where They Fit December 9 @ 12 pm EST January 19, 2015 @ 12 pm EST

Certificates of Insurance December 9 @ 2 pm EST January 19, 2015 @ 10 am EST

Commercial Lines Claims That Cause Problems December 9 @ 10 am EST

Estate Planning Basics December 9 @ 2 pm EST January 19, 2015 @ 2 pm EST

Home Based Business Exposures December 2 @ 10 am EST

How Insurance Agents Can Become Invincible to Lawsuits and Save Thousands in Taxes December 10 @ 10 am EST

Commercial Property Endorsements That Can Make You Money!

December 16 @ 10 am EST

Data Privacy Insurance December 18 @ 10 am EST January 5, 2015 @ 10 am EST

Directors and Officers Liability Insurance December 17 @ 2 pm EST January 6, 2015 @ 2 pm EST

Make the Wholesaler you BFF! December 9 @ 10 am EST

National Flood Insurance Program: Basic Course with 2013 Updates December 11 @ 10 am EST

The New Health Age: The Future of Health Care in America December 30 @ 10 am EST

Professional Ethics in the Insurance Industry December 16 @ 2 pm EST January 7, 2015 @ 2 pm EST

For questions on any of these courses or IIAK’s education program, contact Katie Freshley at kfreshley@iiak.org or call 502-245-5432 10 | www.iiak.org | November/December 2014

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12 | www.iiak.org | November/December 2014

Selling and Service: It’s Not Brain Surgery One of the reasons I like insurance agents as much as I do is that the more intuitive ones make it their business to make themselves indispensable to their customers.

For them, working in the insurance industry isn’t just about making the sale or always closing;

By: Shawn Moyanihan they’re in the business of building relationships, many for the long term. These people know their clients. They know their clients’ families. They have an intrinsic understanding of their customers’ needs, and they endeavor to make sure those needs are met—and in so doing, not only do they perform a much-needed service but also make a solid, reputable living doing it.

Comparatively speaking, let’s just say I’m not the biggest fan of car salesmen.

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FCCI empowers me with decision making authority, and that allows me to build trusting relationships and to resolve issues fairly.”

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In my experience, on the whole, the people employed by auto dealerships typically aren’t exactly what you would call trustworthy folk. Some of them are smarter than others, but these people are interested in one thing only: the sale, by any means necessary.

One recent experience of mine, however, served as a customer-service teaching moment for those who would actually like to retain their clients.

Last month, my lease was nearing its end on my Toyota RAV-4. In the weeks before I was to return the vehicle, I heard from Toyota Financial Services, who, I have to say, were always professional, courteous and helpful. They cheerfully reminded me of my obligation to return the RAV to the dealer, which was located about an hour away from where I live; it was not close.

Meanwhile, during this time I didn’t hear a sound from the dealer.

I know my strengths; selling isn’t one of them. But even I know that selling requires you to use your head. Here I am, about to return a leased vehicle to your dealership;

www.iiak.org | November/December 2014 | 13

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the logical progression of thought here would be that I might, just might, need a car to replace it.

That makes me a... what’s the word? Ahh, yes: A prospect.

But did anyone reach out to me? Nope. So with less than a week to go, I figured I’d better take matters into my own hands and start calling the dealership to hint that, hey, fellas, perhaps you can sell to me.

Toyota Financial gave me a contact name to call, so I did. Calls one and two to this person went unreturned; on a third attempt, three days before the return was scheduled, I reached someone else.

I explained my situation, and they assured me a salesperson would get right back to me. Of course, no one did.

On the day I had to take the vehicle back, I’m driving over the Bayonne Bridge and thinking to myself, “If this were my dealership, I’d want to know that my staff was completely dropping the 14 | www.iiak.org | November/December 2014

ball on a prospect.” So I wrote a well-crafted email to the owner of the dealership, to which, incredibly, I still received no response.

I drove out to the dealership and dropped off the vehicle that evening, to a grinning, well-meaning dim bulb with a Bluetooth in his ear (incidentally, if you do this, please stop; you look ridiculous).

All of this taught me a valuable lesson: Prospecting isn’t about being the smartest person in the room.

It’s about being the one who is always thinking about how he or she can better serve clients and garner new ones in the process.

It’s also about returning phone calls.

Shawn Moyanihan is the Executive Managing Editor of National Underwriter P&C. He can be reached at smoynihan@ summitpronets.com. This article originally appeared in National Underwriter and was used with permission.

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118th Annual Convention & Trade Show Highlights There were 278 attendees who ventured out to network, learn and develop their careers at the Brown Hotel in Louisville, Ky. Many agents and company representatives began the Convention with a day of betting on the ponies and getting to know each other at Churchill Downs. The 4th race was the Independent Insurance Agents of Kentucky Classic. IIABA Chair-Elect Randy Lanoix, was on-hand to present the trophy.

The conference officially kicked off with a combination of the Opening Reception and Trade Show in the Crystal Ballroom. Exhibitors and attendees alike seemed to enjoy the timing as well as the turnout. The evening concluded with a dessert reception sponsored by Liberty Mutual/Safeco that allowed attendees to gather with peers and satisfy their sweet tooths.

Thursday commenced with the Welcome Breakfast and General Session. John Funkhouser introduced your leadership for 2013-2014 and gave his State of the Association Address. Randy Lanoix was next on the stage to talk about IIABA. A very special award is given to the person working in an IIAK member agency as a customer service representative who typifies the ideals of service. The person’s experience, education, community service and attitude are taken into consideration in the judging of this award. The well-deserved 2014 CSR of the Year award went to Patricia Allen from the Charles M. Moore Insurance Agency.

Next is the E. Starling Holloway Award presented to an individual who has made a significant industry contribution, enhanced the ideals and reputation 16 | www.iiak.org | November/December 2014

of the insurance industry, or made a significant contribution to his or her community, state or country.

This year’s award winner goes to the merited Darlene Rufra, whom just retired from Secura Insurance.

The next presentation was from Make-A-Wish®, the chosen philanthropy for Trusted Choice This year Trusted Choice has committed more than $530,000 to the foundation and more specifically $12,000 for the Kentucky Chapter. Alana Karl and Craig Peterhansen were on hand to talk about recent wishes. Over 140 wishes are granted each year and the money raised in Kentucky stays in the state to grant more wishes locally.

In May, one of our own was stricken with some unbearable news. Brady, the son of long-time member Shannon Desmond Walz of Desmond Brothers, Inc., was diagnosed with leukemia. Brady is only 14 years old and is halfway through the most intense chemotherapy treatment which he will complete in March if all goes well. Recently, Brady was given the good news that he would get a wish.

Brady’s wish is to receive all of the equipment needed to start his own lawn care business. But Brady also plans on paying it forward to help with the family’s medical bills, help the nurses at the hospital, and other children fighting for their lives. IIAK plans to help in any way we can. You can help the Walz family by ordering a Brady Strong T-Shirts or sweatshirts. Please contact the IIAK office for more information.

After breakfast, keynote speaker David Tralka from Insurbanc spoke to attendees on how to successfully prepare for perpetuation along with insights on financing options from a lender’s perspective.

We have something for everyone at our Convention.

If you are a guest or spouse of one of the attendees you can register to go on the spouse outing. This year, 15 people ate lunch at Bluegrass Brewing Company and ventured out to Huber’s Orchard and Winery for a tour and wine tasting.

IIAK is proud to acknowledge our Industry Partners (as of 10/29) PREMIER

Meanwhile, back at The Brown Hotel, the Conferment Lunch followed our keynote presentation.

Diana Hunt of Mountain Valley Insurance serves on the National Alliance CIC Board of Governors and spoke about the CRM designation and what it entails. Hunt then awarded two conferees, Brian Clontz and John Kernohan with their certificates and completion pins.

After lunch, attendees chose between two tracks: Cyber Liability: Understanding the Exposure with John Immordino. He was a dynamic speaker that concentrated on the scary statistics of not being prepared for a data breach.

Meanwhile, Kordell Norton focused on creating an experience for your customer to bring them back again and again in his session Status Quo to Status Grow.

Everyone gathered back in the Crystal Ballroom for a cocktail reception and silent auction to support our InVEST program. Following the reception all sat down to listen to the long-time radio personality Wayne Perkey. Finally, it was time to honor all of our past leaders and welcome our newest. Michelle Love of E.M. Ford & Company in Owensboro was inducted as our newest Chair. She is the third representative from her agency and only the second female to hold this distinguished position. Installed alongside Love were David M. Houk of Houk Insurance in Horse Cave as Chair-Elect and Jason D. Billington of The Murray Insurance Agency in Murray as Vice Chair. To round out the night, many ventured out to the Sports and Social Club for a night of fun and bowling.

More than 100 people gathered Friday morning to hear Sharon Clark, Commissioner of the Kentucky Department of Insurance at the Young Agent Breakfast. She spoke about the climate of the industry and what to expect with upcoming

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Keystone Insurers Group State Auto Insurance Company

BRONZE Anthem Blue Cross & Blue Shield Auto-Owners Insurance Company Bailey Special Risks, Inc. BITCO Insurance Companies BusinessFirst Insurance Companies Countryway Insurance Company Kentucky Agents Finance Company

KESA KY Associated General Contractors Prime Insurance Company Secura Insurance Summit Swiss Re Corporate Solutions Travelers Westfield Insurance

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legislation. The young agents committee inducted their newest chair, Adam Murphy from Lake Barkley Insurance and Harbor Insurance Agency. Moe Dugger, Immediate Past Chair of the Young Agent committee presented the Outstanding Young Agent of the Year to Ross Richey. The conference wrapped up with Rick Pitts and his three hour Ethics course.

Of course, none of this would have been possible without the help and support of our Industry Partners. Thank you!

We would like to thank all who attended and we hope to see you plus many more on November 11-13, 2015 at the 119th Annual Convention & Trade Show at the Hyatt Regency in Louisville.

www.iiak.org | November/December 2014 | 17

People who run a not-for-profit organization know.

The most valuable things

are also the hardest to get.

This organization didn’t grow overnight. It came from years of hard work, confidence in what they could do, a strong commitment to the community, 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 reach their full potential.

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.

20 | www.iiak.org | November/December 2014

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

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AGGreGATeS

How Will Election 2014 Impact By: Charles Symington Agent Issues?

As the dust settles on the 2014 midterm elections, agents across the country may be wondering how this new balance of power will affect federal issues that impact the day-to-day business of insurance.

Republicans controlling the U.S. Senate for the first time since 2006 will mean new Senate leadership,

Stability. Longevity.

new Senate Committee chairs and new priorities.

The House of Representatives will remain in Republican control, meaning most of the current chairs and leadership will likely remain. But the Republican House will now deal with a Republican Senate, which in many cases will change priorities and expectations.

Integrity

For the insurance industry and the Big “I” in particular, the new balance of power in Congress will likely end up being somewhat of a mixed bag. On some issues, the power shift could have little to no real impact. For example, the association’s top two federal priorities—enactment of the National Association of Registered Agents and Brokers Reform Act (NARAB II) and an extension of the Terrorism Risk Insurance Act (TRIA)—enjoy bipartisan support. The Senate already passed its seven-year TRIA bill, with NARAB II included, by a 93-4 vote. The Big “I” is optimistic that Congress will complete their work on a long-term reauthorization of TRIA and passage of NARAB II during the lame duck session of Congress and that the election results will not change the current focus. In the event that this Congress only passes a short-term extension of TRIA, terrorism insurance will be a top priority for the Big “I” next year. If agent licensing reform is not included in any TRIA package this year, NARAB II will be a top issue for 2015 as well.

Similarly, the change in control likely won’t have a large impact on the Federal Crop Insurance Program (FCIP) since it is a regional program that will continue to garner support from traditional farming states, regardless of which party controls those seats.

www.iiak.org | November/December 2014 | 23

But the election results could have a significant impact on other Big “I” legislative priorities, including greater oversight of the implementation of the Affordable Care Act (ACA) and efforts to finally fix some of the law’s more problematic provisions—though President Obama’s veto authority could certainly complicate that process.

The changes may also result in greater oversight of the NFIP and perhaps more interest in exploring ways to privatize the program. Finally, a Republican Congress will almost certainly take a hard look at Dodd-Frank and could challenge or revise certain provisions in that law, including attempts to ease capital requirements for large insurance companies and hamstring federal regulators in their potential oversight of large insurers. Reigning in the Federal Insurance Office created by Dodd-Frank could also be on the table.

While it is impossible to predict exactly what any new Congress will attempt, the power shift offers both opportunities and risks, and the Big “I” bipartisan federal government affairs team is prepared to handle both.

Charles Symington is Big “I” senior vice president of government affairs.

Corrections The Kentucky IA always tries to publish accurate information.

However, sometimes mistakes are made. And when these mistakes are made, we will be sure to print corrections.

The September/October issue had some incorrect statistics listed in the callout box of the “Bring Your Own Device: Opportunities & Risks” article.

The corrected statistics are as follows: • 81% of American use their personal mobile devices for work. (Source: Gartner) • 24% of consumers surveyed currently use a smartphone or tablet at their primary, work-related computing device. (Source: Samsung)

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Technology

Tools that Enhance Claims Information and This article discusses technology tools that have been introduced to permit independent agents and brokers to serve their clients more promptly and effectively in claims situations. Claims download, real-time claim inquiry, real-time filing of First Notice of Loss (FNOL), real-time requests for loss runs, and Activity Notes all have great promise to make agency workflows more efficient.

Most of these new capabilities have already been introduced by some carriers, but we need to see much broader usage. The agents will play the critical role in making this happen, but first they need to be convinced that these new technologies will materially improve their workflows.

This article seeks to make that case.

Claims Download One of the most exciting new opportunities is for the automatic downloading of new claims and claims status information into agency management systems.

An ACORD standard has been put in place for claims download, and several vendors and carriers have begun to implement the new capability.

However, an agent might ask: “How exactly will claims download benefit me? I already have claim inquiry available via carrier websites or through my agency management system using real-time inquiry.” Or, the agent might say: “Why do I need download, when I already receive an e-mail or Activity Note into my agency management system

26 | www.iiak.org | November/December 2014

that tells me there is a claim?”

Real-time claim inquiry has been a great enhancement for agents and will continue to be so for up-to-the-minute information. But, it is only beneficial if the agent knows the claim has taken place! Further, real-time claim inquiry does not populate the agency management system’s database, and so the agent must enter the claims information into his or her system.

E-mails or Activity Notes1 are also great “incremental” steps, but again, the agent has to enter the claim into the agency management system and update the information as the status of the claim changes.

The goal is for all of the latest features of technology to work hand-in-hand to make the claims process as streamlined as possible.

Claims Download Critical in Disaster Situations The horrific storm seasons we have had in recent years provide an instructive example as to how claims download can help agencies. If an agent has had no power and has had clients reporting claims directly to the carrier, how does he or she know what claims have been filed? Once the agency finds out about the claims, who is going to enter the hundreds or thousands of claims into [1] Note that Activity Notes today are typically downloaded after the close of the business day. In the future, it is hoped that carriers will deliver time sensitive Activity Notes multiple times a day to their agents’ IVANS mailboxes and agencies will pick up those messages several times a day as well.

Technology

Efficiency for Independent Agents & By: Donna J. LaGoy AIT, ACE Brokers its agency management system? Who is going to update the status on each of the claims, as it is paid or closed? The agency’s employees are already working overtime under terrific stress, and they want the needed claims information to be handy in their system. They want to spend their limited time assisting their clients regarding the claim and demonstrating the value added that their agency provides to its clients. The last thing these employees want to spend hours upon hours doing is entering all of this claims information into their system.

Claims download allows for all of the claims to be: automatically entered into the agency management system updated as the status is changed, and closed when the carrier closes it.

Claims download would save the typical agency hundreds of hours per year, as well as enable agency employees to provide better service to their clients should a claim occur.

Recommended Claims Workflow The question, then, is how do claims download, real-time claims inquiries and e-mail or Activity Notes work most efficiently together? Consider the following workflow: 1. The claim is reported directly to the carrier by the client (FNOL reported by the agent is a different workflow and is addressed below.).

2. An e-mail message or Activity Note is sent to the agency instantly notifying it of the loss.

3. Overnight, the claims are processed via a batch process and downloaded into the agency management system.

4. A log is waiting for the agent in the morning, when he or

she comes in to review what was attached (similar to policy download) and what went to suspense to be attached.

5. The claim is now in the agency management system and is ready to be serviced.

6. Claim inquiry can be used at this point to look at anything that has transpired during the current day, if necessary.

An example would be that the adjuster had not been assigned when the claim was downloaded, and you need to get that information today.

7. Any updates to the claim will download each night (or at given intervals during the day, if the carrier and vendor provide this feature). Again, this download information will populate a log for review.

8. The agency is now in the position to run reports from the agency management system to track losses.

First Notice of Loss (FNOL) Claim Reporting Another very important technology for agencies is real-time FNOL claim reporting, where the agent can submit the claim to the carrier and instantly get back the claim number and adjuster for the claim.

What a terrific service to be able to provide the client with this information on the spot! Even where the agent is using real-time FNOL, however, claims download still plays an important role, because it allows for the automatic updating of the status of the claim, including payments made, adjuster notes, and the closure of the file.

www.iiak.org | November/December 2014 | 27

Technology vendors should continue to collaborate to harness the exciting technologies that are available to us now to significantly improve the overall customer experience and to make our distribution system more efficient and responsive.

Real-Time Loss Runs Requesting loss runs through the agency management system and receiving them back in Real Time from the carrier is another significant improvement for agents, providing clients with immediate service and saving considerable time for the agent.

Agents Play Key Role Whether we are talking about claims download or real-time claim inquiry, FNOL, loss runs, or Activity Notes, agents will play the critical role in making these improved workflows a reality within our industry. Agents should advocate for these improvements with their carriers, and then “walk the walk” by implementing them within their agencies when they are introduced by particular carriers.

High agency usage will be the dominant factor in convincing additional carriers to leave the sidelines and join the game by implementing these new capabilities.

The Future As exciting as these new technologies are, the future will require the industry to take yet another step, and that is to permit the agency’s clients to access their claims information directly from the agency’s website. Claims download and real-time claims inquiry will provide the foundation for this enhanced consumer capability. Consider once again what this would mean to an agency devastated by a disaster, struggling to make or receive phone calls of any kind. What a godsend it would be if anxious clients could go to the agency’s website and learn that their claim has been received and is in processing, and receive the assigned adjuster’s contact information. Organizations like ACT will continue to work with carriers and vendors to make this future a reality.

Most important today, agents, carriers, and

28 | www.iiak.org | November/December 2014

Donna LaGoy is a Client Partner of Applied Systems, Inc. and is Chair of the ACORD Claims Download Working Group. Before taking her current role, Donna was an independent agent, with many years of experience working for a national broker and then owning her own agency. She is dedicated to improving the technologies and workflows available to independent agents and brokers, both internally and with their insurance carriers. She has been deeply involved in ACT, AUGIE, ACORD, and ASCnet. Donna LaGoy can be reached at dlagoy@ appliedsystems.com. She prepared this updated article for the Agents Council for Technology (ACT) which is part of the Independent Insurance Agents & Brokers of America. For more information about ACT, contact Ron Berg, ACT’s incoming Executive Director, who can be reached at ron.berg@iiaba.net. This article reflects the views of the author and should not be construed as an official statement by ACT.

IIAK - the most important tool in your

Technology

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Does Twitter have you tangled? Flabbergasted with Facebook? Given up on Google+ or are you lost when it comes to LinkedIn? We’ve made some basic step-by-step guides for each of these plus much more!

We all know that you’ve prepared your clients for the worst-case scenario, but what about your business. Read this toolkit for tips on how to prepare for various disasters and what to do after disaster strikes.

Have you ever looked at where you rank in Google search results? Want to make it to the top of the list? Read the tips and tricks inside this toolkit on how to improve your rankings.

Our friends at InsurBanc have helped us out on this one and put together a toolkit mapping out your next steps to keep your legacy alive. www.iiak.org | November/December 2014 | 29

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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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

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.

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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 502-473-5454 or glenn@louisvilleins.com.

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For information regarding IIAK membership, contact: Tara Purvis, Marketing Director 502-245-5432 • tpurvis@iiak.org

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