Insight - December 2020 by Big I Illinois

DECEMBER 2020

INSIGHT 2020

The Year That Kind of Wasn’t COVID Impact Survey Results Lessons from the Pandemic Plus

Why You Should Teach Your Client’s Kids About Insurance

Use Health Insurance to Grow All Your Lines of Business

Largest GA for BCBSIL Your existing business clients and prospective new clients all have the same problem: finding high-quality health coverage at a reasonable cost. EBRM shows P&C and Life agents how to solve this problem. EBRM offers full support to make you the health insurance pro your clients expect.

EBRM is a true wholesale GA: We are exclusive to brokers and never sell direct to the public. “EBRM’s expertise has helped us protect our P&C book of business and build a successful health insurance practice.”

ITEMS TO CONSIDER: ■

High Benefit/Low Cost Networks

■

Age vs. Composite Rating

■

HRA and FSA Options

■

Age 65 Employee Options

■

Pre-Tax Premium Plans

■

Group vs. Individual insurance

■

Level Funded Plans

There’s No Longer A Reason To Go It Alone – EBRM Never Splits Commissions With You Or Charges You Fees.

– Jack M. Cacioppo, CDC Insurance Group Independent, Authorized General Agent for

Want More Information? CALL 1-800-982-ERBM (3276) Today. CLICK EBRM.com or COME IN to our Oak Brook offices. Live CHAT available at EBRM.com

An Independent Licensee of the Blue Shield Association

EBRM: The GA on Your Side, Not in Your Pocket

DECEMBER 2020

Editor & Graphic Design - Rachel Romines

Advertising - Tami Hubbell

CONTENTS 13

13 15 20 22 25 28 30 33

Can Statistics Give the Wrong Impression?

By Curtis Pearsall

Why You Should Teach Your Client’s Kids About Insurance

By Chris Boggs

2020: The Year That Kind Of Wasn’t

By Phil Lackman

COVID-19 Impact on IIA of IL Member Agencies Lessons from the Pandemic

By Todd Sorrel

The Benefits of IIA of IL Membership Big “I” Membership Has Its Perks A Look Back at the Cartwright Award

By Jennifer Jacobs

In This Issue

The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

7 9 11 19

President’s Message Trusted Choice Industry

36 37 38

Associate News IIA of IL News Classifieds

e-Insight

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744

2009 • 2010 • 2011 • 2012 • 2013 2014 • 2015 • 2016 • 2017 • 2019 • 2020

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of IL). The magazine is published monthly for the members of the IIA of IL, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of IL welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership. The editor reserves the right to edit and select submissions for publication. Address submissions for review to Rachel Romines at rromines@iiaofil.org. For advertising information, contact Tami Hubbell at thubbell@iiaofil.org.

Board of Directors Executive Committee

ADVERTISERS 10

AAA INSURANCE

Chairman of the Board | Bill Wirth (618) 939-6368 | billw@wirthagency.com

APPLIED UNDERWRITERS

President | George Daly (708) 845-3311 | george.daly@thehortongroup.com

ARLINGTON/ROE

BERKSHIRE HATHAWAY/GUARD INSURANCE CO

DONALD GADDIS COMPANY, INC.

DONEGAL INSURANCE GROUP

EBRM

IIABA National Director Gregory A. Sandrock, CIC, AFIS (815) 438-3923 | gregsandrock@2cornerstone.com

E M C INSURANCE COMPANIES

Regional Directors

EPAY POLICY

ERIE INSURANCE GROUP

6 38 8

GRINNELL MUTUAL REINSURANCE COMPANY HEMPHILL FINANCIAL GROUP/LEGALSHIELD IMT INSURANCE

INSURANCE PROGRAM MANAGERS GROUP

KEYSTONE INSURANCE GROUP, INC.

SELECTIVE INSURANCE COMPANY OF AMERICA

UTICA

W. A. SCHICKEDANZ AGENCY, INC.

WEST BEND MUTUAL INSURANCE CO.

Committee Chairs

IIA of Illinois Staff

Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com

Director of Information and Technology Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org

Director of Government Relations Evan Manning - (217) 321-3002 - emanning@iiaofil.org

Education | Teresa Fleming, CIC, CISR (815) 849-5219 | tess@leffelmanassoc.com

Director of Education and Agency Resources Brett Gerger - (217) 321-3006 - bgerger@iiaofil.org

Office Administrator Kristi Osmond - (217) 321-3007 - kosmond@iiaofil.org

Accounting & Admin Services Tami Hubbell - (217) 321-3016 - thubbell@iiaofil.org

Director of Communications Rachel Romines - (217) 321-3024 - rromines@iiaofil.org

Director of Human Resources, Board Admin Jennifer Jacobs - (217) 321-3013 - jjacobs@iiaofil.org

Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3003 - tross@iiaofil.org

Sr. Vice President/Chief Financial Officer Mark Kuchar - (217) 321-3015 - mkuchar@iiaofil.org

Products & Services Administrator Janet White, CISR - (217) 321-3010 - jwhite.indep12@insuremail.net

Chief Executive Officer Phil Lackman - (217) 321-3005 - plackman@iiaofil.org

Director of Prof. Liability & Ins. Products Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org

Find us on Social Media

18 Years and Counting Unlike many other carriers, West Bend believes in the value of long-term relationships. Thatâ&#x20AC;&#x2122;s why many of our personal lines underwriters, like Sarah, have worked with their agents for so long. Sarahâ&#x20AC;&#x2122;s agents trust her knowledge, making it easier for them to do business with West Bend. And that makes the relationships that much stronger.

CUSTOMIZED COVERAGE FOR RESTAURANT CUSTOMERS Our restaurant coverage offers a menu of options that cover the risks of running a successful dining establishment, from food spoilage to cooking equipment protection, and much more. Agents, contact your underwriter for details. Trust in Tomorrow.® Learn more today.

AUTO | HOME | FARM | BUSINESS

grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2020.

president's message | INSIGHT

What a Year 2020 Has Been Looking back to the end of 2019, who would have thought our lives would change so dramatically only a few months later. Our industry has been such a face-to-face relationship business filled with networking, presentations, client service, and lots of direct contact along the way. Who would have thought that would be replaced with Zoom, social distancing, hand sanitizer, and mask-wearing. Nobody would have predicted this major shock to our industry and the entire world. So many people have been impacted by Covid-19. First and foremost, we pray for all family and friends who have experienced a health impact from Covid. We continue to worry about the kids who have been forced out of in person learning and so many activities. We empathize with those that have been forced to postpone a wedding, graduation, or special celebration. As trusted advisors, we continue to work every day in the trenches with our clients that have been impacted by Covid-19. Despite so much disruption, we continue to offer our support and guidance to all of our clients. Early in the pandemic, as businesses were urged to shut down, our essential industry was forced to adapt quickly to this new environment so we could be there for our clients. In the Pre-Covid insurance world, our industry was certainly not thought of as an industry that embraced working remotely. That all changed in March of 2020. We were thrust into working remotely as the pandemic took hold. What we found is that working from home generally worked out very well. It helps that so many of our agency members use agency management systems, take advantage of download functions, and have made strides through the years to create paperless environments. In addition, so many clients are now communicating via e-mail, which allowed the client communication to be somewhat seamless for many.

and sharing with one another. We have learned that not all employees can work effectively at home. At the same time, as we emerge from Covid-19, it will be important for agency leadership to determine how business practices might change. From a leadership perspective, working remotely may create an expansion of the labor pool that could allow you to hire employees from other geographies. In addition, it may allow you to lease less office space. If you go this route, make sure you have the proper accountability measures in place and your internal communication plan allows for regular contact with staff. How can you utilize the process, procedures, and tools you deployed during Covid to create a new, more flexible environment for staff that will still allow you to execute your service promise for all of your clients? The IIA worked hard to provide many tools and relevant, timely information to our members that helped all of us not only survive but thrive during Covid. The IIA staff is committed to continuing that progress through enhanced virtual education opportunities and delivering cutting-edge technology recommendations through our newly formed technology committee. As we move toward the close of 2020, I wish all of our members and your families a joyful holiday season. I know we are all anxious to turn the page on 2020, and we are all looking forward to what this New Year will bring.

Hopefully, with the adoption of a Covid vaccine in 2021, we will have the option to be back in the office full time. However, agency owners will have a decision to make. Can we enjoy the same productivity at home as at the office? When you consider the change in commute or being closer to their family, is there a compelling reason to have a hybrid work/home solution moving forward? We know that many of our employees were just as efficient working remotely, and many clients have adapted well to more digital communication. My opinion is that we need to strike a balance. We canâ&#x20AC;&#x2122;t lose that culture that comes from employee interaction. We canâ&#x20AC;&#x2122;t lose that environment of learning

George Daly - IIA of IL President - (708) 845-3311 - george.daly@thehortongroup.com december 2020

insight

HAPPY Thank you for your business and we look forward to a prosperous new year. Commercial Lines | Personal Lines

See state availability at www.guard.com

WHO YOU GONNA CALL WHEN THEY SLIP AND FALL? BUSINESS INSURANCE THAT’S DESIGNED TO BE WORRY FREE A company is a business owner’s pride and joy. Help maximize coverage and protect it with business insurance from the Worry Free company — IMT Insurance. Learn how you can represent IMT Insurance at imtins.com/contact.

AUTO | HOME | BUSINESS

insight

december 2020

Trusted ChoiceÂŽ

Digital Review Is your website fully optimized? Are you utilizing social media effectively? Sign up for a FREE Trusted Choice Digital Review to have your website and social media channels analyzed and reviewed. You will receive an actionable report that gives you detailed feedback on how you can improve your online presence and reach more customers.

Visit agentresources.iiaba.net today!

A Digital Review includes:

A scored website report

Content and Layout Feedback

Social Media Review

After receiving your report, you can schedule a free phone consultation with a Trusted Choice team member who can walk you through your results and help you determine next steps.

For more details please visit trustedchoice.com/agents ordecember email2020 us at trusted.choice@iiaba.net

insight

For more information on AAA Products and Services visit aaa.com or to become a AAA Independent Agent Contact Leo Plese at (630) 328-7076 or lmplese@acg.aaa.com

industry | INSIGHT

Independent Insurance Agents Continue to Face “Headwinds” Due to Pandemic By Lyle Adriano Although the pandemic may have presented an opportunity for independent insurance agents to better serve customers, a new report from J.D. Power found that agents are “facing headwinds” due to complications related to the global outbreak and increasing competition. J.D. Power’s latest study, the “2020 US Independent Agent Performance and Satisfaction Study,” is the analytics and intelligence company’s third in its annual series. Developed together with the Independent Insurance Agents & Brokers of America (IIABA), the study evaluates the evolving role of independent agents in P&C insurance distribution, general business outlook, management strategy, and overall satisfaction with personal lines and commercial lines insurers in the US. Key findings of the study include: • Effects of pandemic put spotlight on independent agent challenges: 36% of agents say they were unaware of their carriers’ efforts during the pandemic. Agents have also fallen short in leveraging their strategic advantage during the pandemic; only 42% of independent agent customers say they were contacted to help manage their policy costs during the crisis, compared to 52% of direct customers who say the same. • Progressive wields influence on independent agent growth: Although independent agents write 58% of all P&C policies, their market share is falling – particularly in personal lines auto, where they write just 31% of all policies. Progressive’s agency channel notably accounts for 52% of all personal lines’ growth among independent agents. • Digital support could improve agent satisfaction: Digital channels are independent agents’ preferred means of communication with insurers, J.D. Power found, with email and online dashboards the most preferred communication methods. Specific digital tools that drive agent satisfaction focus on sales and product training and identification of cross-sell opportunities. However, the study found that these digital offerings are only used by fewer than 60% of agents. • “Help me help you”: Satisfaction among independent agents is higher among carriers with diversified product offerings (i.e. enabling agents to offer flexible design and onboarding, enabling them to offer product bundling), the study revealed. About 43% indicate receiving this level of support from insurers.

• Independent agents focused on alignment with carriers: Overall satisfaction of independent agents with carriers that demonstrate better market alignment (by offering adequate support for targeted industries) is 126 points higher (on a 1,000-point scale) than with those carriers that do not provide adequate support. • Traditional agents face competition from virtual agents: 81% of consumers say they would be open to working with virtual insurance agents to perform core insurance activities – a trend J.D. Power suggests that traditional agency distribution is increasingly threatened by. The study also ranked the carriers with the highest overall satisfaction score among independent insurance agents. Auto-Owners Insurance came out on top with an overall satisfaction score of 816, followed by Safeco with 761, and Chubb with 755. “The effects of COVID-19 have highlighted the importance of personalized insurance as consumers seek help navigating their way through this period,” said J.D. Power head of property & casualty insurance intelligence Tom Super. “Ironically, in many instances it was direct-based carriers, which have made a concerted effort in recent years to emulate the high-touch and high-quality agent experience, that were able to step up and deliver during this crisis.” Super added that the independent insurance agent channel should be using this moment as a learning experience, and redouble their efforts toward improved alignment, execution, and efficiency. This article was originally published on the Insurance Business America website: https://www. insurancebusinessmag.com/us/news/breaking-news/ independent-insurance-agents-continue-to-face-headwindsdue-to-pandemic-239333.aspx Lyle Adriano is a journalist at Insurance Business. His news articles and features have been published on websites across North America. Lyle’s specialty areas include insurance regulation, cybersecurity, and insurance fraud.

• Cost efficiency not linked to agent satisfaction: J.D. Power found that the notion that simply paying agents a higher commission translates to higher agent satisfaction and improved business outcomes is not true. The study noted that many of the top-performing agent-based insurers have been able to maintain expense discipline while also delivering on agent expectations.

december 2020

insight

Top 5 Reasons

to Choose Utica National’s Agents’ Errors & Omissions Since 1966, Utica National has been a continuous leader in the E&O market.

Customized Coverage Claims Strength Utica National’s E&O claims team is 100% dedicated to E&O and has decades of experience. When needed, we engage top litigators with proven track records of successful results.

More than just solid, comprehensive coverage; we offer choices based on your operation and risk appetite. We provide several options when you are planning to retire, sell or purchase another agency.

More than 10,000 agents have placed their trust in Utica National’s E&O program and their state association. Let us earn your Direct Access business!

Leading-Edge Risk Management We offer resources on contemporary topics like social media, cyber liability and multilingual communications so you can understand the hazards involved and take steps to reduce your risk.

to Underwriters and Claim Specialists

Flexible Payment Options

Need input regarding an E&O exposure or potential claim situation? With Utica National, you can speak directly with an underwriter or claim representative.

We offer multiple billing options including electronic fund transfer without any interest charges or fees*.

For more information on how you can protect your agency from the financial hardship that results from an E&O claim, visit www.uticanational.com/EO.

9-A-2491 Ed. 10-20

*A nominal fee per installment applies to direct bill invoiced policies using the 12-payment option. Fees vary by state.

Can

Statistics

Give the

Wrong Impression? By Curtis Pearsall It is possible that when your customers are determining what or how much coverage to buy, they want to get a better understanding of how often that coverage will be needed. Let’s consider flood coverage, for example. The customer asks about the likelihood that their house will get flooded over the next few years. As their agent. you advise them that their house is located in a •1 in 10<1 flood zone, which means that over the course of the next 100 years, their house will be flooded once. “1 in a 100” sounds like fairly good odds, and makes a strong case to not buy flood coverage. As a result, the customer decides that flood coverage is not something they need. This exact situation occurred in Minot. North Dakota, in 2010. A customer discussed their personal lines coverage with their insurance agent and, during the discussion of flood coverage, the customer was advised that they were in a “1-in-a -100-year flood area.” The agent was being truthful as the last time the Souris River in North Dakota reached the highest level was in 1881, over 125 years earlier! Unfortunately, that “1 in a 100 years” occurred just one later in 2011. The levees were topped and over 4,000 homes were destroyed or damaged. So, it was actually “1-in-a-129 years,” except the following year was that year. An E&O claim was brought against the agency. This situation is not unique. Another rare event took place in Charleston, South Carolina, in October 2015. It involved something that had a statistical chance of occurring of .1%, or “1 in 1,000 years.” While most would conclude that an event with this type of statistical probability is highly unlikely, it did happen. A “once-in-1 ,000-years” rainfall occurred, resulting in widespread amounts of 15-20 inches and localized amounts of over 25 inches, mainly in the Charleston tri-county area. This led to significant property damage. A key takeaway from these two events is that when discussing coverage with customers, whether an event is a “1 in a 100 years” or “1 in a 1,000 years,” there may be a tendency for the agent or producer to not address december 2020

the coverage since the chance of the coverage applying is so remote. This should not happen. Even if the chance of the event such as a flood, earthquake, etc. occurring is remote, agents and producers should still inform the customer of the availability of the coverage. Providing the customer with a proposal is the best approach as it forces the customer to make a decision about whether or not they want the coverage. If the agency does not mention the coverage, could it be viewed that they are essentially making the decision for the customer? The last thing you want is for the customer to come back after an uninsured loss and argue “If I knew the coverage was that inexpensive, I would have bought it.” A key E&O loss prevention issue involves customer accountability. This should be a goal of every agency. Have you ever had a customer ask for your advice about whether to buy certain coverage? This will often sound like “What would you do?” or “What do you recommend?” Agencies need to know how to answer these types of questions. Imagine if the agent in the above scenario commented that “If I were you, I wouldn’t buy it.” How is the customer going to feel after they have a claim that isn’t covered? It’s quite possible that they could bring an E&O claim against your agency alleging they relied upon your “poor” advice. It is probably best to say something such as “What I would do is immaterial. This is your home and you need to decide what coverage you purchase.” Bottom line, interjecting statistics into the conversation with the customer should be undertaken with extreme caution. While statistics provide historical perspective, there is no way to know whether those statistics will continue the same pattern moving forward. Maybe in the example above, it would have been best for the agent to tell the customer, “that area has not been flooded in over 100 years, but next year could be that year.” Curtis Pearsall is the President of Pearsall Associates, Inc. and Consultant to the Utica National E&O Program.

insight

Delivering

Best-In-Class Service

...since 1889

We understand the importance of delivering outstanding customer service. That’s why we have real people waiting to help you when it’s needed most. It’s just another way we are “There when it matters most.” for our agents and policyholders.

DonegalGroup.com

By Chris Boggs Face it, most personal lines clients are functionally illiterate regarding insurance. Don’t misunderstand, it is not that your insureds lack intelligence, the issue is most have never been taught insurance fundamentals. Even clients who bought their first insurance policy 40 years ago only know what they hear on commercials, read on the Internet, or are told by their friends and neighbors - who are just as illiterate. In fact, most of what your personal lines clients think they know is actually lies and misinformation. Insurance practitioners who wallow around in the insurance muck every day forget that insurance” is a unique and foreign language to our clients. We fail to realize our insureds don’t know the basis of the insurance contract they purchased; they just know they bought the policy because someone or something made them buy it (contract, statute, or mortgagee). Without correct information, only price matters. Remember, somewhere between $6 and $7 BILLION is spent on television advertising telling consumers insurance is all about the best price. That’s a lot of dollars to support a lie. When misinformation and lies are replaced with knowledge and truth, the insurance purchase becomes more about protection than price. Give buyers the correct information needed to feel empowered and they feel better about their decisions; and they also feel better about the person who gave them the information. What better reason to teach your client’s kids about insurance? Why Focus on the Kids? Every parent worries about his or her kid(s). Are they eating well, getting enough sleep, studying like they should, dating the right person (or not dating the wrong person), and learning how to be an adult? Being an adult, a contributing member of society, requires the ability to properly manage financial affairs. Insurance, though not always portrayed this way, is a key part of personal financial management; that’s why you want to focus on your client’s kids. december 2020

When you teach their kids about insurance, you help your client prepare their children for life; and if you do it right, you help your client be better prepared themselves without them looking like they need the help. No 42-yearold will go to a homeowner’s or personal auto training session on his own (they don’t want to appear unprepared themselves), but tell them the class is for their kids and you will get them as well. The key to getting and keeping the parents in the room the topic and its hook.” Want the parents to stay? Conduct a class about the realities of personal auto coverage for new drivers. Discuss the insurance implications surrounding going away to college, or getting your first job, or your first apartment, or whatever is changing in the kids and parents lives. Parents will gladly come because they feel they are helping their kids, not because they don’t know themselves even though they don’t. Beyond educating the kids and their parents about the realities of insurance, you are creating and cementing long-term relationships with your current clients while concurrently developing contacts with future clients - you know, the kids who will one day buy insurance. Insurance is a relationship business, build the relationship before the kids are in the market for insurance. (A side note: the industry needs new talent as thousands retire every year; this exercise may trigger some kids to explore insurance as a career.) Who to Invite Use the information in your agency management system to run a list of your client’s children. Remember, the personal auto policy application requires all residents of the household to be listed on the application, not just drivers. (The application requests, RESIDENT & DRIVER INFORMATION [List all residents & dependents (licensed or not) and regular operators].) The same requirement is not found in the ACORD homeowners’ application, but a proprietary application may ask for such family information. continued...

insight

Parents want their kids to be prepared for life; insurance is an important part of life especially when something bad happens. Invite the 14 to 19-year-old kids. These are the ones learning to drive, just beginning to drive, getting ready to graduate, headed to college, and looking towards their futures. Encourage them to bring their friends (because no kid wants to go anywhere without a friend) and their friend’s parents. How to Invite Have personal invitations printed. Kids rarely get mail and the invitation will be special to them in a strange way. Send a separate letter to the parents explaining the topic or topics you plan to cover and personally invite them

6 REASONS

Knowledgeable Local Agent

to attend with their child(ren) so they can continue the conversation at home.” Place open invitations on your website, Facebook page, or any other media you use. Ask for an RSVP so you know how many to expect. Make this a big deal! An event! Have snacks and drinks and even a door prize if you want. But remember, your goal is to teach not sell. What to Teach

Six Reasons Why ERIE is The Pioneer in the Insurance World

Erie Insurance and its agents, claims adjusters and employees have been living the Golden

The PAP Outline

Rule and treating people right since 1925.

Every state Department of Insurance makes available some level of basic personal auto training for consumers.

Today, ERIE stacks up better than others with industry-leading products, coverages and service.

Award-winning Service

Lowest Possible Cost

Best Possible Protection

These are the just some of the reasons Erie Insurance is The Pioneer in the Insurance World® Contact your local ERIE agent to learn more or get a quote.

Stringent Claims Response Standards

Locate an agent at www.erieinsurance.com Direct Repair & ERIEGlass SM Programs

Erie Insurance Exchange, Erie Insurance Co., Erie Insurance Property & Casualty Co., Flagship City Insurance Co. and Erie Family Life Insurance Co. (Erie, PA) or Erie Insurance Co. of New York (Rochester, NY). Company licensure details at erieinsurance.com. S1642 2/19

insight

Initially focus on the personal auto policy. Parents feel the economic pain of a new driver, and the new(er) driver hears about this pain quite often from his/her parents I know, I keep telling my daughter how much she is going to cost me. Plus, personal auto coverage is the focus of most TV advertising’s half-truths and neighborhood lies.

If you want to provide more detail than the state provides or just want to develop your own outline, you can use the following outline for ideas to build your own personal auto program. I. Help Me Understand My Personal Auto Policy Coverages? A. Liability Coverage 1. Who or what is protected? 2. Minimum Limits are they enough 3. What’s with the three numbers (i.e. 100/300/50) B. Medical Payments Coverage 1. Coverage for an Insured 2. Coverage for Others C. Uninsured/Underinsured Motorist Coverage 1. Uninsured Motorist 2. Underinsured Motorist 3. Is this coverage required D. Physical Damage Coverage 1. Comprehensive Coverage december 2020

(aka Other than Collision) 2. Collision Coverage E. Personal Injury Protection (PIP) (No Fault” Coverage) 1. Who/what is covered 2. When does PIP respond 3. What is PIP isn’t enough 4. Is this applicable in every state II. Who is Covered by My Policy? 1. Who is a You 2. Who qualifies as an inured III. What Happens if I Hit Someone and it is My Fault? 1. Liability Coverage 2. Limits of Coverage IV. What Happens if Someone Hits Me? V. How do I Keep My Premiums Low? VI. How to Evaluate Coverage VII. Special Situations 1. Renting a car 2. Driving in another country 3. Uber, Lyft and other such services 4. Out-of-State coverage while at college

And lastly, give a Certificate of Completion to each person. If more than one session is held, indicate the level” completed: John Jones has successfully completed the Masters Training in Personal Auto Protection.” You get the idea. Kids Are the Key Parents want their kids to be prepared for life; insurance is an important part of life especially when something bad happens. As independent agents we strive to help our communities through coaching, volunteering, and various other ways. Why not use our knowledge to increase our community’s insurance IQ”? Remember, your goal is to teach, not sell. But by doing this, you will be seen as the trusted advisor you are which will likely gain you new clients. Chris Boggs is the Executive Director of the Independent Insurance Agents and Brokers of America (Big “I”) Virtual University. He can be reached at chris.boggs@iiaba.net.

Regardless the source, the state, or an internally developed outline, limit the class to no more than 90 minutes with a 10-minute break in the middle. But because there is so much needed information, consider holding two sessions over a couple weeks a basic class and an advanced class (but come up with better names Beginners and Masters, or something like that).

december 2020

insight

When it comes to supporting independent insurance agents, we believe that growth starts close to home. That’s why EMC has offices and representatives across the country — giving you personalized service from a trusted partner who knows the local market. And because we tailor our insurance solutions and loss control services to meet the unique needs of your customers, you can always count on bringing the best products to the table.

e INSIGHT -

online journal at www.iiaofil.org/Resources/Insight

DE CE M BE R

20 20

INSIGH T

2020

The Kind Yoear That f Wasn COVID ’t Imp

act Su rvey R esults s from the Pa ndemic

Lesson

Plus

Why Your You Should AboutClient’s Kid Teach s Insura nce

To Emerge From COVID-19, We Must Learn From It Together By Bruce Carnegie-Brown - PropertyCasualty360 In this month’s e-Insight. december 2020

insight

2020: The Year That Ki As we wind down 2020 and look hopeful to a safer and more normal 2021, I want to thank our Board of Directors and each of our member agencies for their continued engagement with the Association. Whether you are 71 or 21, we all shared similar new experiences in both our home and professional lives. While many of these “new” experiences will continue in our professional lives, let’s hope 2021 will bring back most of the old experiences like in-person conferences, sporting events, and social gatherings. I was in Nashville on March 13, attending a meeting with my fellow Big “I” state executives when Governor Pritzker, and many other Governors, announced schools would be closing. This was really the first indication that COVID-19 was truly serious, and my colleagues and I decided to wrap up our meetings and head home. During the week of March 16, the staff at IIA of IL began communicating with our contacts in state government as a stay-at-home order appeared imminent. On March 20, the Governor announced the stay-at-home order, and due in part to our efforts, insurance operations were deemed essential. The team at the association went into full advocacy mode, creating a COVID resource page on our website with relevant information impacting agencies and the industry. This included business interruption insurance guidance, how an employer’s CGL policy would respond to reopening of business against orders, as well as insurance and workers’ compensation coverage issues related to COVID. This page continues to serve as a resource for the latest news and guidance for business owners, particularly with the resurgence of cases. We held multiple meetings with the Department of Insurance, Governor’s office, and our industry partners and employer groups as we dealt with multiple issues, including workers compensation, cancellations and non-renewals, business interruption coverage, and many more. We reached out to local associations and regions with live virtual updates on all issues related

to COVID and quickly turned our educational programs into virtual classrooms. We conducted a COVID Impact Survey to not only measure our response efforts, but also to find out what issues our members anticipated they would need assistance with moving forward. The IIA of IL will be launching new information and resources based on the feedback received. In a matter of two months, we transitioned CONVO into a virtual event which received great reviews from our members and company partners. We continue to meet with our associate members to understand their needs and how the association can assist them in working through COVID related issues. Our marketing representatives are also available by phone or through web meetings to assist your agency. Unfortunately, as I write this, Illinois and most other states are witnessing a surge in COVID cases, and the Governor has moved the state back to Tier 3 mitigation efforts. We are hopeful that continued mitigation will bring the numbers down and that a vaccine will soon be available. In the meantime, your staff remains on high alert and ready

ind of Wasnâ&#x20AC;&#x2122;t By Phil Lackman

to assist you with any support you may need. Please, do not hesitate to reach out to us. Phil Lackman is IIA of ILâ&#x20AC;&#x2122;s Chief Executive Officer and can be reached at plackman@iiaofil.org or (217) 321-3005.

A er

n e g

s in ir he ncie orld. t on ge w 19 ent a -19 re VIDpend OVID we O C de t-C 1% s n of d1 ct of i a po n a a e p n, im stat s in rba he the tion t u e of cta sub ug re ga view expe e o t er th w rs 8% be an ov row 3 , m g s d me de cie ur rovi re an en o g p a u d es. al ye to fut ag ve ded heir rur p r e u t r ing is s ten to we no is in ts in low i % l l l 1 o I f of ion sigh s, 5 the ey ons. IA rmat re in n I v r o d su ssi the fo ha er his in as s ed bmi iste t l e m u l l s are um . T el mp s lts co mou is s esses s as w u s h e e T in oi th ny s er Of ano bu Illin Th

b m e

M s i o

9 1 ID

V O C

s e i c

a p Im

II n to

in l l I of

insight

COVID-19 Impact on IIA of Illinois Member Agencies In Illinois, insurance agencies were designated as “essential businesses” and thus allowed to remain open throughout the COVID-19 crisis. Which of the following best describes how your agency responded to the state and local “stay at home” orders?

19% 49%

Other No impact Transitioned all or most staff to remote work Loss of personal lines clients

Operated in a hybrid model with some staff coming in daily and others working remotely

32%

Remained open with all or most employees reporting to the office daily

How has COVID-19 impacted your agency operations?

Converted to “work from home” for majority of employees

15.03% 7.84% 8.5% 9.8%

Decreased revenue

22.88% 18.3%

17.65%

Not writing new business

Loss of commercial lines clients Taking a deeper look at the data, 63% of suburban agencies were indicating a loss in revenue thus far for 2020. Where only 38% of rural agencies were reporting the same. The biggest impact was the commercial lines business with 43% of suburban agencies and 32% of rural agencies reporting a loss of business. Several agencies reported no change in business. Others stated they were writing more business in Q2 than the previous year. Many agencies indicated after the first few months of the shut-down new business was starting to pick up heading into the summer months.

What challenges did your agency face?

Survey answers varied widely. Here are a few challenges expressed: Security issues with staff working remotely Lacked training for implementing new technology Experienced difficulty due to an Agency Management System (or lack of) Lacked adequate technology for client communications Lacked adequate technology for in-office communications Extra equipment expenses for remote employees Internet issues Difficulty with clients embracing technology New ways to interact and do business

Overall, Illinois agencies were well prepared to move and adapt with the changes the pandemic threw at them. 22

insight

december 2020

In order to continue operations both during and after the pandemic, what assistance do you feel would be most beneficial? Other

Online peer networking opportunities Guidance on staffing issues (layoffs, return to work, COVID concerns) Assistance with assessing and rebuilding my business post-pandemic Information about carrier financial stability and rate changes

7% 7% 8% 8%

Assistance with online business tools

9% 16% 14% 9% 10%

Assistance with home-based technology for remote workers

12%

Assistance with building an online presence for marketing

Guidance and talking points for clients about the crisis and coverage

Guidance on cyber security

In response to the needs outlined in the survey, the IIA of IL identified many resources to assist member agencies:

During this time, the IIA of IL team continues to be hard at work for our members.

• Online Presence for Marketing - Check out the Trusted Choice resources available at no charge: www.TrustedChoice.com/Agents. • Talking Points for Clients About the Crisis and Coverage - Visit the COVID Resource page on the website: www.iiaofil.org/covid-19-resources. • Guidance on Cyber Security - The IIA of IL Solution Center includes a section on cyber, plus IIABA’s Agents Council for Technology (ACT) is a great resource for members. • Online Business Tools & Home-Based Technology - In addition to tools like ePayPolicy and DocuSign, the new Technology Committee is looking at additional solutions to address technology needs. Information is available under the Technology section of the Solution Center. The committee is also looking for volunteers. If you, or someone in your office, is interested in working with the committee, go to www.iiaofil.org/About-Us/GetInvolved. • Information about Carrier Financial Stability and Rate Changes - Senior staff at the IIA of IL have been visiting with carriers periodically, as well as tracking news articles, to collect pertinent information from carriers. • Assistance with Assessing and Rebuilding my Business Post-Pandemic - The IIA of IL staff has been researching, writing, and collecting articles for member use. Stay up to date by visiting the COVID resource page, reading your e-Weekly newsletter, and browsing your monthly issue of Insight. • Guidance on Staffing Issues - With a certified SHRM Human Resources Director on staff, the IIA of IL has been collecting and sharing information on rapidly changing COVID guidance and HR issues. Resources are available in the Solution Center as well as on the COVID resource page of the website.

COVID Resources – From cancellation issues and bulletins, insurance issues, and agency operations/ employer resources, stay up-to-date with the information available to navigate your agency through compliance and the COVID-19 pandemic.

december 2020

Solution Center – This extensive, members-only section on the IIA of IL website answers your questions and provides resources for you and your agency. The Solution Center provides answers and guidance to dozens of topics in an easy-to-navigate format and the information has been sourced by the experienced staff at IIA of IL and the Big “I” (Independent Insurance Agents and Brokers of America). Topics include Agency Management, Cannabis, Employer Compliance, Licensing, PFTA, Rebating, Service Fees, Technology, Workers Comp & so much more. Moving Forward - As a result of the situation surrounding COVID-19, there is a unique opportunity for agents and agencies to rethink and innovate as they adjust and respond. This crisis may prove to be the motivation for innovation and change in insurance by exposing higher levels of customer experience and personalization that has, quite possibly, been long overdue. To download this resource, go to http://tinyurl.com/IIA-MovingForward. The IIA of IL Board of Directors, Committees, and Staff are here for you. Please reach out to us anytime at info@iiaofil.org or 800-628-6436 or visit www.iiaofil.org/ About-Us/Our-Staff to reach out to a staff member.

insight

=120)(1.+Ã¿F)/*)(<Ã¿<(1(*+)2Ã¿*)/0F

#@8AB80%Ã¿C@ B60DE @6

01234Ã¿67789Ã¿ Ã¿ Ã¿ 442Ã¿ 4Ã¿ Ã¿3 134Ã¿ Ã¿12 4 42 42 Ã¿ 42 Ã¿ Ã¿ 4Ã¿4 34 1 2 Ã¿ 4 134Ã¿ 2 Ã¿ 13Ã¿ 2 2 Ã¿ 1!4 "Ã¿#4Ã¿ 4 Ã¿ 42 Ã¿ 34Ã¿ $ $ 1 4Ã¿ 4 %Ã¿3 ! 42 1 2Ã¿ 1 Ã¿ 2 Ã¿ 4Ã¿ 442Ã¿ 4 &Ã¿ 334 Ã¿ 1 12 Ã¿3 4 2Ã¿ 33 2 Ã¿ Ã¿ 4 1 4Ã¿3 ! 4 1 1 4Ã¿ 1312 "Ã¿ '()*+'+,Ã¿(../01'2 C 2 3 31 Ã¿ 03 Ã¿ 4 E 312 0 Ã¿4 56 Ã¿ 1 91 1 D Ã¿84 1 7 584 2 94 4 1 E 12

2 3 12 4Ã¿3 4 2+1,Ã¿1+:Ã¿20;<=22=/12Ã¿'/>Ã¿ 324 !1 1 2 ?1 ! "3 ! 1('G(1Ã¿H(F)=1(I J134Ã¿ 4 1 42 Ã¿ Ã¿# 4 %Ã¿C ! 42 1 2Ã¿ 3 134 2 2" 12 &?1 ! "3 !Ã¿KÃ¿LMN"OPQ"Q7LP

LESSONS FROM THE PANDEMIC FAILING TO PLAN IS PLANNING TO FAIL

Go beyond just using tech and learn to master it By Todd Sorrel Not too long ago I was on a conference call with a management system partner and one of their clients. The agency owner admitted that COVID-19 has blown his 2020 growth plan out of the water. He thought it could take two years to get fully back on track. This got me thinking about business resilience in times of major disruption. The pandemic has certainly affected all of us in major ways. But it hasn’t hit all agencies equally. My firm, ePayPolicy, surveyed our clients about how COVID-19 has affected their agencies. On a scale of 1 to 10, most responses were 3 or 4, so the impact hasn’t been severe. These low scores are not a coincidence. How do we account for the difference between agencies that are basically unfazed vs. those that are struggling? Quite simply: strategic planning. The agencies that were prepared for disruption were able to pivot, thanks to their technology and management style. They had set and fulfilled specific goals pre-COVID to build out their operations and implement technology solutions to drive growth that also helped to keep their agencies operational during this disruption. And when I say goals I’m not talking about vague, ill-defined statements like “We will expand our technology capabilities this year.” I’m talking about specific, focused, and strategic goals. Those who start with BHAGs (Big, Hairy, Audacious Goals) and break them down into manageable chunks are more likely to succeed. Let’s look at it on an individual level. Think about why so many New Year’s resolutions fail. People say, “I want to lose weight, travel more, move to a new city, change jobs,” and so on. These are aspirations and nothing more. They lack an actual plan to reach the goal. Inevitably, months go by, no progress is made, and the resolution fades into oblivion - until it’s trotted out again next year. On the other hand, those who start with BHAGs (Big, Hairy, Audacious Goals) and break them down into manageable chunks are more likely to succeed. They

lay out the steps needed to get from Point A (where they are now) to Point B (success). There’s a huge difference between “I want to lose weight” and “I want to lose 30 pounds by December.” Thirty pounds seems like a lot, but it breaks down to only 2.5 pounds per month. Losing just a few pounds each month seems doable, right? The action plan might include walking for 30 minutes every Monday, Thursday and Saturday, reducing daily intake by 200 calories, and cutting out sugary drinks. One missed day of exercise per month or the occasional splurge at a party are not going to derail the resolution. Not having a plan of action will. The same concept holds true in the world of independent agencies. Let’s say your 2020 goal is to eliminate manual data entry for accounting, implement a new CRM solution, and apply new technologies to improve your response time to client outreach. You’ve outlined specific targets in each area, invested in the right people/partners, and started to build out the tech needed to achieve these goals. For your agency, COVID-19 is likely just a speed bump (albeit a very big speed bump) because you have a plan and are actively putting the pieces into place. But what about agencies that wanted to “grow” and “increase profits” this year but never built a solid plan (i.e., the doomed New Year’s resolution approach)? Well, they’re a very different story. Looking around the industry, I see three identifiable groups of agencies and philosophies: Group 1: These agencies have a strategic vision that they’ve built their agency around. They continue to innovate and push on, excited to see what’s to come. Group 2: This group may have had a detailed strategy to start the year, but they view COVID-19 as an opportunity/ catalyst and spent the time to build out a strategy and now have a technology implementation roadmap to go forward with. continued...

december 2020

insight

Our preferred digital payment processor

READY TO SPEED UP YOUR RECEIVABLES? Sign up today and get two months free with referral code “iiaofilmember”

Group 3: The final group continues to battle against innovation. They just can’t wait to get back to the “good old days.” Two of these groups are going to succeed, and one is not. Here’s why. Whether we like it or not, the industry is changing. We’re changing because our clients are changing. Because of COVID-19, they are working in (even more) dangerous conditions and have new (often changing) regulations to follow. They’re asking their teams to adjust to working under uncertain, potentially high-risk conditions. And this is on top of the already pervasive trend of clients expecting tech-assisted convenience from their vendors and service providers. Today’s independent agents need to rise to the challenge and deliver service in tech-assisted ways. This means more than making your website mobile friendly (although that’s important). It means client portals, AI chatbots, rapid response texting, digital payments, and more. These all drive the user experience. They are no longer optional bells and whistles. Technology-based client engagement is now a competitive “must.” So where does your agency stand? If you’re in Group 3, don’t worry. It’s not too late to change course. The “good old days” are not coming back. But I promise you there are plenty of good “new” days ahead. I encourage all agency owners to sit down with your team and ask: “What does our agency look like 90 days, six months, one year, and five years out?” Don’t be afraid to write down your Big, Hairy, Audacious Goals. But don’t stop there! You want your BHAGs to become BHARs (Big, Hairy, Audacious Realities). To get there, you’ll want to build out your SMART goals. (Google it if you don’t know what SMART goals are.) No one says you need to accomplish all your goals at once. Trying to do so is a surefire way to overwhelm your agency (management, staff, resources) and tank your client service. Instead, apply SMART principles to prioritize your efforts. Devise your plan for quick and easy wins and build on your successes. We’ve talked in the past about not just using tech but mastering it. Management system integrations, cloud storage, project management systems, underwriting solutions, social media, digital payments, and so on work best when they become second nature to everyone who uses them (both agency staff and clients). Now is the time to engage in goal setting for your agency. Right now, with your clients’ businesses and lives disrupted - to whatever degree - you have a prime opportunity to position your agency to serve them both during and after the pandemic, and far into the future.

december 2020

I can guarantee three results: 1. You’re going to attract some amazing new talent entering the workforce. Remember, as you plan out one to five years, you’re going to be hiring generations who are digital natives. They master technology in their sleep! 2. Your employees who love the changes you’re making are going to be fired up. Those who are change-resistant technology avoiders will need to leave (and stop holding you back). 3. You’re going to maximize your relationships by accommodating increasingly tech-adept clients. And you’ll attract the right kind of new business from clients who appreciate your commitment to their convenience and their future. None of us knows when the next major business disruption is going to occur—or how widespread it may be. Whether it’s a tornado or flood, a labor strike, another public health crisis, or even a Godzilla attack, SMART planning now is your insurance policy. A phased tech-adoption plan will position your agency to adjust and pivot, regardless of what comes your way. Remember, your clients are (and will be) dealing with their own challenges. They look to you for guidance and protection. They’re depending on you to see them through. Todd Sorrel is co-founder of electronic payment processor ePayPolicy, IIA of IL’s payment processor of choice. The firm facilitates the acceptance of electronic payments via credit card and ACH with transaction fees being passed on to the consumer. For more information, visit www.epaypolicy.com.

Now is the time to engage in goal setting for your agency. Right now, with your clients’ businesses and lives disrupted—to whatever degree—you have a prime opportunity to position your agency to serve them both during and after the pandemic, and far into the future.

insight

The Benefits of

IIA of IL M

Providing members with a sus competitive advantage since 1 INSURANCE COVERAGE FOR YOUR AGENCY • IIA of IL Bond Program

• Purchase required producer bonds

• Insurance Agents E & O Insurance • SwissRe/Westport and Utica

• Cyber Liability

• Two exceptional products

INSURANCE COVERAGE FOR YOUR CLIENTS

• Independent Market Solutions (IMS) • Market access solution to fit any need for any size agency

• Cyber Liability for Your Clients • Two exceptional products

BUSINESS RESOURCES

• Access to experienced staff for your insurance and agency management questions • AIS Premium Finance • Competitive, convenient options

• Agency Operations & Procedures Manual • Easily customized for your agency

• Business Intelligence

• Discover how relevant information can drive new value for your agency

• Solution Center

• Providing answers and guidance to dozens of topics in an easy-to-navigate format

• Mexico Tourist Auto Insurance

• Remote Staffing Solutions

• Workers’ Comp Program

• ePay Policy - Payment Processor

• No minimum volume requirements • Market-access program with “A” Rated Carriers

• RLI Personal Umbrella

• WAHVE: an innovative contract staffing talent solution • Start accepting online payments

• Legal Services Hotline

• Free 30-minute consultation per year

• Provide an extra layer of protection for your insureds

• Concierge/Personal Assistant

• Affordable coverage

• Talent Assessment and Development

• RLI Home Business

• Solutions for your agency

• Increase productivity, employee engagement, and profitability

• Hiring Resources

• Identify, recruit, hire, and assess topperforming producers and CSRs december 2020

Membership

stainable 1899.

• Risk Management Websites

• E&O Happens (SwissRe/Westport) • Utica Customer Care Center

www.iiaof il.org

• Agency Management System Selection Summit • Helping agencies update or replace their existing AMS

COMMUNICATIONS

• Members-Only Content • Print & Digital Publications • Legislative Updates • The latest news and compliance information for your agency/business

EDUCATION, & EVENTS

• Discounted Education Seminars • Discounted Event Registration • Discounted Rate on Pre-Licensing • Leadership Conference • Legislative Conference • Annual CONVO

december 2020

insight

Big “I” Members

Has It

As an IIA of IL member, you have acc services and resources offered by the BUILD THE AGENCY YOU WANT • Eagle Agency

• Agency incubation program

• Employee Benefits

• Group life, group short- and long-term disability, dental, vision and more

• Retirement Services

• Retirement savings options

• Flood

• Roll over your flood business or start selling flood

• IIABA general counsel reviews agent/ carrier contracts & provides guidance

• Contract Reviews

• Agents Council for Technology

GROW THE AGENCY OF YOUR DREAMS • Big “I” Markets

• More than 30 top-tier markets, no fees, no volume commitments, own your expirations

• Diversity Council

• Prepare your agency to serve diverse markets through research, education and resources

• Best Practices

• Boost productivity and refine operations by benchmarking the nation’s top agencies

• InVEST

• Free educational materials and internship guide to attract young professionals to the industry, and find your next employee

• Industy’s leading experts provide blueprints on disaster planning, cyber, customer experience and trends

• Big “I” Hires

• Experts will review your website and social media and provide a formula to make them ore user-friendly and increase traffic

• Young Agents

• Website & Social Media Help

• Digital Referrals

• TrustedChoice.com - be where consumers turn to find independent agents

• Download job descriptions and interview resources, or let IdealTraits recruit top candidates for you • Access to HR Resource • Sales and leadership training - plus, join a network for newer employees and agency owners

www.independentagent.com december 2020

ship

ts Perks

cess to all the products, Big “I” (IIABA). HELP YOUR AGENCY THRIVE • Independent Agent Magazine

• Award-winning monthly publication

• Digital Publications

• Weekly news, right in your inbox

• Virtual University Research Library

• Find answers to tough questions

• DocuSign

• e-Signature solution

• Ask an Expert

• Coverage questions, answered by experts

• Rough Notes Advantage-Plus

• Powerful tool that generates checklists and helps uncover gaps in coverage

• Legislative & Regulatory Advocacy

• On the front lines working to protect programs important to you and your clients

• Federal Legislative Conference • Spring conference in Washington, D.C., giving you facetime with legislators

Only one brand unites more than 23,000 independent agencies - Trusted Choice®. Together we reach more customers, so they understand the importance of using an independent agent for their insurance needs. Marketing is easier when you lean on our free customizable content and reimbursement program. • Agency Profile • Branding Tools • Content to Share • Training Materials • Marketing Reimbursement • Get Recommended • Customizable Content • Digital Review • And More! TrustedChoice.com/agents insight

Helping you take care of clients isn’t just business. It’s personal. With access to more than 200 markets, our collaborative teams know how to provide the right solutions with a personal touch. Located in nine states, licensed in all 50, and independently family-owned, we can connect you with insurance specifically tailored to your clients’ needs. Our commitment to your success is the reason for ours. Get to know the people of Arlington/Roe. We’ve been doing the right thing since 1964.

Let us help you find the right solutions. Managing General Agents | Wholesale Insurance Brokers

800.878.9891 | ArlingtonRoe.com

A Look Back at the

Cartwright Award By Jennifer Jacobs

History of the Award Charles M. Cartwright was a well-known figure in the insurance industry in the early 1900s. Upon graduating from Princeton University in 1894, he joined the Chicago Inter Ocean as a reporter and later took over as the editor of the publication which featured a regular insurance column. While with the Inter Ocean, Cartwright attended the organizational meeting of the National Association of Insurance Agents (the Big “I”) to write a story on the gathering of agents for the purpose of organizing a national group. After a brief stint with the Chicago Tribune, Cartwright took over as editor of the National Underwriter in 1900, a position he occupied until his retirement in 1947. Until his death in 1952, Cartwright was a nationally-renowned convention speaker and a champion of associations and their activities toward the improvement of the insurance industry. In the fall of 1943, inspired by the Big “I” Woodworth Memorial Award, Cartwright developed the concept of a merit award to recognize the achievements of individuals within the state of Illinois who had an impact on the insurance industry. Cartwright shared the idea with Independent Insurance Agents of Illinois Board member, Herbert Stewart who brought the idea to the Board. The Board agreed the idea was worth exploring and charged Stewart with the task. In December of 1943, Stewart presented to the IIA of IL Board of a report on his investigation of the proposed C.M. Cartwright Award. Cartwright’s desire was that the award should go to someone who had performed an outstanding act for the good of insurance agents in Illinois. Cartwright provided a fund, to be placed under the control of the

Budget & Finance Committee, and stipulated that only the interest on the fund be used to provide a suitable award. If the interest was not enough to provide such award, when won, the IIA of IL was to bring that amount up to an amount equivalent of 6% of the contribution provided by Cartwright. for the purpose of purchasing the award. The Board unanimously agreed to accept the award and the conditions and immediately appointed Herbert Stewart and William Laadt as a Committee to draw up a resolution of appreciation and acceptance. The resolution was amended to further stipulate that the award may be presented to anyone as designated heretofore, exclusive of the Executive Committee, who shall be responsible for selection of the winner of the award and the selection and presentation of the award to the winner. The amendment was also approved unanimously. continued...

december 2020

insight

At the time the Cartwright Award was under consideration, the Board was discussing war-related issues such as a resolution to permit “one-man agency members” in the service to continue their membership without dues until certain conditions had transpired. They also were considering a discussion with the national association to ask, “whether or not the waiving of dues could be extended to certain activities supporting the War Effort.” In May of 1944, the Special Committee drafted a resolution to accept the award proposal and corresponded with Cartwright to inform him and to acknowledge his contribution, the sum of $500.00, entrusted to the association “the interest on which is to provide sufficient income to make this award annually if suitable achievement is found to exist to merit award being presented.” In the letter, Herbert Stewart and William Laadt thank Cartwright for the contribution and “for your confidence in the Association to follow through with your idea of a perpetual award.”

The Award Today The Association takes the task of following through on this perpetual award seriously. Each year, the Cartwright Award Committee, comprised of the past three living recipients of the award, assembles to discuss which candidates, if any, have made contributions significant enough to warrant presenting the award. In the history of the award, there have been 19 years (including 2020), in which the award was not presented. A 1972 speech written by Thomas K. Sprague of Joliet, on the occasion of presenting the Cartwright Award, describes a moment of “nervous anxiety in anticipation of the winner” and explains, “it is extremely difficult to hold incognito the recipient in attempting to make the introduction without identifying the individual until the very last moment.” This tradition of keeping the fact that there is an award recipient and keeping that individual’s name a secret until the moment of the award presentation at the association’s convention continues today.

ROY ROBINSON Schramm. This group of recent recipients collaborated to develop a set of interview questions that were answered by two of our oldest living Cartwright Award Recipients. Roy Robinson served as Executive Manager for the Independent Insurance Agents of Illinois, the association’s top paid position, from 1972 to 1990. Roy received the Cartwright Award in 1991 and is one of a small number of recipients who did not serve as volunteer officers of the Association. Roy and his wife Harriett spend much of their time in Arizona and recently celebrated their 60th wedding anniversary. Cal Schuneman was owner of The Schuneman Agency in Prophetstown and later served in the Illinois House of Representatives and State Senate between 1975 and 1993. Cal was association President from 1965-1966 and received the Cartwright Award in 1973. Cal is enjoying his retirement in Naples, where he spends as much time as possible on the golf course.

CAL SCHUNEMAN Interview with Past Award Recipients

The 2020 Cartwright Committee is comprised of past recipients: Cindy Jackman, CIC of Arlington/Roe (2017) Luke Praxmarer, CPCU, AAI of Corkill Insurance Agency (2018, pictured left); Ken Samson, CIC of Dasco Insurance (2019, right), pictured with 2014 recipient, Chuck 34

insight

From your first year in the insurance industry to your last, how did the industry change? What changes do you see in the next 5 yrs, 10 yrs? Roy: During the beginning of my tenure, the relationship between the agent and the client was very personal. As time and greater technology took place, less direct contact with the client occurred and many or most tasks were accomplished via greater utilization of available technology. In my judgment, this wasn’t necessarily good, however the use of technology did allow things to happen more quickly and effectively. In the next five or ten years, there will no doubt be continued growth in technology and new tools available to the agent to provide service to their clients.

december 2020

Cal: Primarily as a means of exchanging ideas with agents from throughout the state. An incentive to attain my CPCU degree.

Cal: Generally for the good. The premium increases from the advent of package policies, first Homeowners then Business packages, but ever decreasing rates of commission. When you were active in the industry, what major predictions were made (banks taking over the industry, the internet taking away the need for an IA, etc.) that did not occur? Roy: Clearly the most significant prediction and occurrence was the banking industry infringing on “our” territory and getting into the insurance business. It was a hard fought battle in which the insurance agents did not prevail, however in retrospect it can be said that our industry did not suffer a devastating blow and was able to continue with our core functions despite the bank’s involvement in our bread and butter. Cal: To some extent these predictions did occur, but not to the degree feared. Personal service of the agent continues to be a valuable commodity to some. Looking back at your career, what was your greatest accomplishment or something you are most proud of? Roy: Without question, the thing I am most proud of is to receive the Cartwright award from my peers at my retirement. It was such a great honor and one that I hold closely today, 30 years later. Cal: Serving my district in the State Senate. Co-chair of Reagan for President in Illinois. Delegate to 3 Republican National Conventions. Do you see the value of the IA still as prominent as it once was? Roy: I believe the Association continues to be very worthwhile for the agents, especially in the area of continuing education and in the legislative arena. The association is effective both at the state and national levels and provides important information and legislative strategy for its agents. Cal: It is certainly valuable as a lobbying effort, educational opportunities, place to exchange ideas with other agents. Would you choose the same profession? Roy: I would most certainly do it again. The insurance profession has been a rewarding one for me, both with regards to my professional growth and the lifelong relationships made throughout the years. Cal: Probably, I enjoyed it very much, and customers were very good to me.

What advice do you have for someone new to the industry? Roy: For those employees entering the field, I am confident they will be well schooled and know the latest and greatest technological advances. But it is critical for them to study, know and understand the products that we sell. Being pleasant and able to communicate is important, but the detailed knowledge of our products is what will best serve our client’s needs. Cal: Learn and work hard. Jennifer Jacobs is IIA of IL Director of Human Resources and serves as the association’s resident historian and archivist. She can be reached at jjacobs@iiaofil.org.

ONE SIZE FITS ONE.

Selective is committed to working with our independent agency partners to get it just right for each unique customer, who is unlike any other. It’s how we deliver on our promise...

How did the Association help you advance your career? Roy: In my case, the Association was my career so any judgments about my career would need to be made by my peers and colleagues. © 2020 Selective Ins. Group, Inc., Branchville, NJ. Products vary by jurisdiction, terms, and conditions and are provided by Selective Ins. Co. of America and its insurer affiliates. Details at selective.com/about/affiliated-insurers.aspx. INST-19-021

december 2020

insight

INSIGHT | associate news Thank you to our Associate Members.

Diamond Level Members

Platinum Level

Progressive Surplus Line Association of Illinois

Gold Level AAA Insurance Arlington/Roe Blue Cross/Blue Shield of IL

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS IMT Insurance

Nationwide West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AFCO Credit Corporation AMERISAFE AmWINS Brokerage of the Midwest, LLC Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Columbia Insurance Group Continental Western Group Donald Gaddis Company, Inc. Donegal Insurance Group Encompass Insurance Encova Insurance Erie Insurance Group Foremost Insurance Group Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Illinois Mine Subsidence Ins. Fund Illinois Public Risk Fund Indiana Farmers Insurance Insurance Program Managers Group J C Restoration J M Wilson Kemper Keystone Insurance Group, Inc. 36

insight

Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company MarshBerry Maximum Independent Brokerage, LLC Mercury Insurance Group MetLife Auto & Home Midwest Insurance Company miEdge a Division of Zywave PEOPLE Previsor Insurance ProAg Management Inc RT Specialty - Naperville Selective Insurance Company of America ServiceMaster DSI Society Insurance Specialty Risk of America Transcom General Agency Travelers UIG - The Agent Agency United Fire Group Universal Property & Casualty Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield december 2020

iia of il news | INSIGHT

Education Classes december

2 7 8 8 9 9 9 14 15 15 16 16 17 17

CIC-Ruble Graduate Seminar Webinar Pre-Licensing Course - Property & Casualty Virtual E&O Roadmap To Homeowners Endorsements Webinar E&O Roadmap To Cyber & Privacy Insurance Webinar Agents E&O: Duties, Checklists and More Webinar E&O: Commercial Liability Coverage Gaps Webinar Pre-Licensing Course - Life & Health Virtual E&O Roadmap to Personal Auto & Umbrella Webinar Ethical Dilemmas Webinar Flood Insurance and the NFIP Webinar E&O Roadmap To Policy Analysis Webinar Culture, Ethics, and E&O Webinar E&O Roadmap to Identity Theft Part 1 Webinar E&O: Roadmap to Homeowners Insurance Webinar

january

5 11 13 14 14 14 19 20 21 26 27 27 28

Pre-Licensing Course - Property & Casualty Virtual E&O Risk Management Webinar E&O - Roadmap to Cyber & Privacy Insurance Webinar CISR-Elements of Risk Management Virtual Agents E&O Webinar E&O-Roadmap to Homeowners Endorsements Webinar Pre-Licensing Course - Life & Health Virtual CISR-Personal Auto Virtual E&O:Identity Theft, Red Flags, Money Laundering Webinar Culture, Ethics, and E&O Webinar E&O - Roadmap to Policy Analysis Webinar CIC-Agency Management Virtual E&O Risk Management Webinar

New Members member agency Balanoff Enterprises, LLC Chicago, IL

Courses will now be held the 1st and 3rd week of the month! december 2020

insight

INSIGHT | classifieds for the insurance professional by the insurance professional

AGENCY/AGENTS/PRODUCERS WANTED

02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits. Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

Dan Browne or Cathy Hall Forest Insurance (708) 383-9000 www.forestinsured.com/mergers-acquisitions

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

13. We are a 100 year old Northbrook agency looking to discuss any mutually beneficial opportunity. Our producers, mergers, clusters and agency purchases receive 50% commissions on new and renewal business without any expenses. We can provide: office space, phones, agency management system, service renewals and changes. The companies we represent are: Badger Mutual, Employers Mutual, General Casualty, Guide One, Hartford, Kemper, Progressive, Rockford Mutual, Safeco, State Auto, Travelers and Met Life. Contact:

Nancy Solomon Martini, Miller & Schloss, Inc. (847) 291-1313 Ron@martini-miller.com

AGENCY WANTED

20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.

Visit www.ciagonline.com for contact information.

This is Rick Hemphill, I have had the LegalShield booth at your convention for the last number of years. I have been an insurance agent for the last 44 plus years, and before that I was a police officer. Now more than ever, I believe our clients need the LegalShield products. LegalShield has: •Family Legal Plans

•Identity Theft Plans

•Plans for Truck drivers

•Law enforcement Plans

•Small Business Plans

•Supplement’s, like the Gun Owners Supplement

As a former police officer if you have a concealed carry I really suggest you take a look at this. Rick Hemphill Hemphill Financial Group 314-517-6836 rhemphill@hfgstl.com 38

insight

december 2020

doesnâ&#x20AC;&#x2122;t just tell partner agencies what the path looks like, we walk it with them. We understand the challenges independent agencies face and what it takes to propel them towards growth. We work shoulder-to-shoulder with partner agencies to enable them to reach greater levels of success.

Because independence works better together.

Contact Matthew Fink: 570.473.4643 | mfink@keystoneinsgrp.com keystoneinsgrp.com

ÂŽ

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com. Follow us at bigdoghq.com.