e-Insight - December 2019 - Member

DECEMBER 2019

INSIGHT Gain a

CLEAR UNDERSTANDING of New Laws Affecting Your Agency in 2020 - New Employment Laws - Cannabis and the Workplace

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E474-35621 Loss Control Ad Resizes 2019_Ag of IL_7.5x10_v01_al.indd 1

9/26/19 12:43 PM

December 2019

Editor & Graphic Design - Rachel Romines

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Advertising - Tami Hubbell

CONTENTS 10 How to Avoid Becoming

on the Job

13

22 TURNOVER

10 13 15 18 22 25 30

The Most Important Business Building Questions

By John Chapin

How to Avoid Becoming Obsolete on the Job

By John Graham

Cyber... What? Part VI

By Brian McSherry

New Employment Laws in Illinois

By Evan Manning

Cannabis and the Workplace

By Evan Manning

Avoiding Turnover in High-Performing Salespeople

By Caliper

Circles Concierge - New IIA of IL Service

25

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 17 26

President’s Message Industry

e-Insight Associate News

27 28 32 33 34

IIA of IL News Board of Directors Profiles Industry News People in the News Classifieds

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

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.

ADVERTISERS

Board of Directors Executive Committee

Chairman of the Board | Patrick Muldowney (312) 595-7192 | patrick.muldowney@alliant.com

36

APPLIED UNDERWRITERS

President | Bill Wirth (618) 939-6368 | billw@wirthagency.com

14

BERKSHIRE HATHAWAY GUARD INS. GROUP

President-Elect | George Daly (708) 845-3311 | george.daly@thehortongroup.com Vice President | Jay Peterson, AFIS, LUTCF (217) 935-6605 | jay@peterson.insurance Secretary/Treasurer | Bennie Jones (312) 960-6206 | bjones@rmsoa.com IIABA National Director Gregory A. Sandrock, CIC, AFIS (815) 438-3923 | gregsandrock@2cornerstone.com

Regional Directors Region 1 | Lisa Lukens (618) 942-2556 | salibainsurance@gmail.com Region 2 | Joseph Heneghan (618) 639-2244 | joe.heneghan@hwcrins.com Region 3 | Christopher Leming (217) 321-3185 | cleming@troxellins.com Region 4 | Bart Hartauer, CIC (815) 223-1795 | hartauer@hartauer.com

2

E M C INSURANCE COMPANIES

6

GRINNELL MUTUAL REINSURANCE COMPANY

31

IL INSURANCE PRE-LICENSING PROGRAM

33

IMT INSURANCE

24

INSURANCE PROGRAM MANAGERS GROUP

5

KEYSTONE INSURANCE GROUP, INC.

8

LEVEL UP AGENT SUMMIT

Cover Tip

OMAHA NATIONAL

16

OPENLY

12

W.A. SCHICKEDANZ/INTERSTATE RISK PLACEMENT

35

WEST BEND MUTUAL INSURANCE CO.

Region 5 | Nick Gunn, CIC (309) 691-1300 | nickgunn@nixonagency.com Region 6 | Thomas Evans, Jr. (779) 220-6564 | tevans@crumhalsted.com Region 7 | Neidra Crosby, CPIA, CISR (708) 597-8731 | ncrosby@insxchg.com Region 8 | Regional Director Position Open Region 9 | Ed Boltz, JD (630) 443-7300 | eboltz@crumhalsted.com Region 10 | Christopher Bassler, CLCS (847) 480-0800 | cbassler@basslerins.com At-Large Director | William Durkin (312) 629-0725 | durkinb@danielandhenry.com At-Large Director | Michael-Charles Hilson (708) 333-3378 | mhilson@gbgins.com At-Large Director | Ryan Hite (309) 688-7316 | ryan.hite@eaglerockins.com At-Large Director | Patrick Taphorn, CIC, CSRM (309) 347-2177 | ptaphorn@unland.com

Committee Chairs Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com Education | Teresa Fleming, CIC, CISR (815) 849-5219 | tess@leffelmanassoc.com Farm Agents Council | Randy Jacobs (309) 365-3231 | rjacobs@mtco.com Government Relations | Kevin Lesch (630) 830-3232 | klesch@arachasgroup.com IIAPAC | Dustin Peterson (217) 935-6605 | dustin@peterson.insurance Planning & Coordination | Cindy K. Jackman, CIC, CISR (800) 878-9891 x8745 | cjackman@arlingtonroe.com Young Agents | Allyson Padilla (618) 393-2195 | allyson@blanksinsurance.com

IIA of Illinois Staff CRM Manager, CONVO Coordinator Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org

Vice President, Agents Insurance Services Brian McSherry, CIC - (217) 321-3018 - bmcsherry@iiaofil.org

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, Tradeshow Admin 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.og

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

Digital Communications Coordinator Karissa Sweatman - (217) 321-3023 - ksweatman@iiaofil.org

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

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

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

Sr. Products & Services Administrator Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

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

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president's message | INSIGHT

The Season of Giving The Holiday season is here and I find myself thinking about everything in my life for which I am so grateful. My wife, Angie, and children, Nora and William, are happy and healthy. We have a house to call home, vehicles that take us where we need to go, and a southern Illinois community that we love. I have the pleasure of serving as President of our Association this year, and I’m grateful to serve alongside so many wonderful industry professionals in this State.

However, while I think about everything in my life for which I am thankful, there is a tug on my heartstrings that pulls me to St. Jude Children’s Research Hospital. We all see the commercials on TV - Marlo Thomas asking us to donate. But do we truly understand the impact that St. Jude makes to desperately ill children and their families?

I decided to do a little digging and found out that an average of 8,500 patients visit St. Jude each year and in that time frame, they can provide the following medical services: - 875,785 pharmacy doses - 8,322 diagnostic X-rays - 11,855 blood transfusions - 8,343 radiation therapy treatments - 5,189 CT scans - 11,146 MRI exams The incredible part… not one single family receives a bill from St. Jude for these medical treatments. NOT ONE! And that is because of the generosity of people that find it in their hearts to make a donation, large or small.

You and I may not be in a position to treat these children.

But, might we be in a position to provide a little extra comfort? Can we help with the cost of a cuddly little teddy bear? Or, can we help offset the cost of the next dose of medication? Patients receive a little extra care around the holidays and a donation as simple as $5 could buy a toy for a one-year-old fighting cancer. Just $5! It costs more to stop at Starbucks for coffee.

So, this holiday season, I’m asking you to find it in your hearts to give to this cause that helps so many children and their families. I urge you to navigate through the St. Jude website at www.stjude.org to take a look at everything they do – from care and treatment to research and training.

Then, please, consider donating.

The IIA of IL has made donating easy. Simply go to www.iiaofil.org/About-Us/IIA-of-IL-Gives-Back and click donate. You can help make a difference. Any contribution will be greatly appreciated!

I’ll leave you with this quote I found while doing my research: “All of us are born for a reason, but all of us don’t discover why. Success in life has nothing to do with what you gain in life or accomplish for yourself. It’s what you do for others.”

- Danny Thomas, Founder of St. Jude Children’s Research Hospital and ALSAC Happy Holidays!

At this very moment, while you read this letter in the comfort of your home or office, many children and their families are sitting together in a hospital room waiting for their next treatment. They are not smelling freshly baked, chocolate chip cookies about to come out of the oven.

They are not decorating a tree in their living room, or going to a band concert at school.

Bill Wirth - IIA of IL President - (618) 939-6368 - billw@wirthagency.com december 2019

insight

7

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industry | INSIGHT

Millennials and Insurance – Research Study Millennial Insurance Consumer Myths Debunked

By Agent for the Future Staff

A new Liberty Mutual Insurance and Safeco Insurance research study shows that millennial insurance consumers’ views of insurance are largely aligned with older generations, dispelling many myths about this generation and presenting a huge opportunity for the independent agent channel.

While there is a widely held assumption that younger buyers always shop online and only care about price, our research shows that millennials are not more price-focused than previous generations and that they want the ease, choice and advice that IAs provide.

Millennials Want You To Help Them Become Informed Consumers Millennials want to be informed consumers, and 53 percent said they need to know all the details of their policy. Of those who worked with an agent, 80 percent said they want their agent to help them understand insurance.

“Millennials are now the largest generation of adults in the U.S., and this generation is heading into their peak earning years, starting families and buying homes,” said Tyler Asher, President, Independent Agent Distribution, Liberty Mutual Business Lines and Safeco Insurance. “We at Liberty Mutual and Safeco Insurance want to help IAs transform their agencies to meet the needs of millennial customers and win in a digital-first world.”

Millennials Want To Work With Seasoned Professionals Only 9 percent of millennials want their agent to be close to their age. When asked to describe their ideal agent, they said they want to work with someone who inspires trust (50 percent), is a seasoned insurance professional (49 percent), and makes a point to get to know them (29 percent).

Millennials Are Loyal Customers The research team conducted a survey among 2,860 consumers - roughly 1,600 millennials, 600 Gen-Xers and 600 baby boomers - to learn about the differences in attitudes toward insurance, what influences millennial purchasing decisions, and how IAs can attract younger customers to compete with direct-to-consumer carriers.

While millennials are more likely than older generations to shop for insurance online, more than half bought insurance through an exclusive or independent agent, and 81 percent plan to use their current agent again.

The millennial insurance customer research builds off our original Agent for the Future™ survey, where we found that 55 percent of agents said the rise of the millennial consumer segment would have a major effect on their agency by 2020.

Here are a few key findings from our new research: Millennials Care About More Than Just Price Millennials are not more price-sensitive than older generations. When it comes to purchasing insurance, only 31 percent said they wanted the cheapest price, even if it means a basic policy. december 2019

For more information on the study, go to www.agentforthefuture.com/millennials-and-insurance/. insight

9

The

Most Importa BUSINESS BUILDIN QUESTIONS If you’ve read many of my articles in the past, you’ve undoubtably come across my statement that the biggest key to business-building and sales success is activity, or, more specifically, activity that leads to sales: prospecting, presenting, and closing. It’s simple, the more people you talk to, the more business you’ll do. Even a blind pig finds corn. If you talk to enough people during the day, you’ll eventually bump into someone who says, “I need what you have”, or “I know someone who needs what you have.”

Below are some questions you can use to direct your days activities.

QUESTIONS THAT LEAD TO SALES SUCCESS What will I do today to grow my business?

This is the most important question to ask first thing in the morning. Your answer should revolve around proactive activities to grow your business. Ideally that activity consists of lots of in-person calls at best, and phone calls at the very least. Cold e-mails are one of the worst, if not the worst, forms of initial communication unless accompanied by a phone call or in-person visit.

I tell new salespeople, “Your number one priority in life is to go out and talk to new people about what you do.

Everything else comes after that.” The only exception is if they have kids. In that case, the kids come first and the second priority is sales calls. It isn’t paperwork, cleaning your desk, spell-checking a letter, or answering a call from a client to tell them something basic like what address to send their paperwork to. Those tasks are done off-hours and ideally, most of the time, by other people.

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insight

One of the primary goals of your activity is to talk to and meet new people. This is one of the challenges I have with networking groups. You’re talking to the same people over and over again whose number-one priority is to sell you something as opposed to the other way around. I don’t have a problem with you going to Chambers of Commerce and BNI groups as an add-on, or for fun because you like the people, but you only go to these after you have your 50 cold/semi-warm calls (or whatever your number is to generate the new business necessary) done first. If you haven’t hit those numbers, you don’t go to the comfortable networking meeting and waste your time. That’s like eating candy so you don’t have room for dinner. Same with social media. That is done after your proactive marketing.

Networking groups and social media aren’t proactive, they’re reactive because you have to rely on other people to contact you or give you leads. You can’t control your numbers that way. When you go out and knock on doors and ring phones, you control the numbers. I’m not saying don’t do other networking and social media, I’m saying you do them after your in-person calls and phone calls.

Note: A variation of the above question is: “What will I do tomorrow to grow my business?” You of course ask this question the night before. Come up with one, two, or three ideas and then set some goals around those. For example, 10 in-person cold calls, 30 follow-up phone calls, and 30 follow-up e-mails. You might even add sending out five handwritten notes. In blue ink of course.

december 2019

ant NG

By John Chapin

What am I doing right now to grow my business?

Use this question to stay focused on your sales numbers during the day. If it’s currently prime time (the time in which you can reach prospects), you should be prospecting, presenting, and closing 80% of the time, or more. I recommend you make two signs in the largest font possible on your computer that say, “Am I prospecting, presenting, or closing right now?” Put one at your work desk and the other in your car if you make in-person calls.

If it’s 5 a.m. and the answer is ‘no’, that’s fine. If it’s 11 a.m. on a Wednesday and your prospects work a typical 9-to-5 day, and your answer is ‘no’, that’s a problem. Granted, some of this time might be travel time but, the focus should be on driving to make a cold call or follow-up call with a prospect. Also, you of course want to use your time wisely by grouping calls together.

What did I do today to grow my business?

What are your results at the end of the day? Did you hit the numbers you needed to hit to be successful? How many people did you call on and how many did you actually talk to? Based upon your annual, monthly, weekly goals, and daily activity, did you get done what needed to get done?

All of this leads to the ultimate question, the answer of which best determines sales success or failure: How many new people did I make aware of my business today?

Also remember how important persistence is. 81% of appointments are made after the fourth contact. 80% of salespeople don’t make the initial four contacts. The average executive gets 400 e-mails a day and has 52 hours of unfinished work on their desk. It’s not that they aren’t interested or don’t want to hear from you. When they have a to-do list of 76 items and you show up as number 77, it’s most likely going to take some time to move up the list.

Either way, on the day they do wake up thinking about doing something related to the product or service you sell, you want to be the next thought in their brain.

december 2019

John Chapin is a motivational sales speaker and trainer with over 26 years of sales experience. He is the author of the 2010 sales book of the year: Sales Encyclopedia. He can be reached at johnchapin@completeselling.com.

Remember how Important PERSISTENCE is.

81% of appointments are made after the fourth contact.

80% of salespeople don’t make the initial four contacts.

insight

11

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How to Avoid Becoming on the Job

By John Graham Millions of us wake up one morning to the haunting realization that we’re losing the battle to avoid becoming obsolete on the job. It affects those in their 20s, while others don’t see the darkness descend until they’re much older. Some are high school dropouts, others are college graduates, or successful professionals. It can strike anyone.

Oxford researchers Carl Benedikt Frey and Michael Osbourne, according to a USA Today article, estimate that “47% of American jobs are at high risk of automation by the mid 2030s.”

Some may run faster or be in denial, but Steve Tobak got it right on CBS Radio when he said, “Nobody wants to believe they’re the problem, that they’re in over their head.” In other words, that they’re obsolete. It can happen to anyone at any age and at any point in their work life.

If you want to avoid becoming an obsolete worker, here are a few ideas to consider:

2. Don’t Expect Work-Life Balance The promise of a work-life balance isn’t new, but it got a boost as technology eroded the wall between the two.

Even so, trying to achieve work-life equilibrium may be dangerous. “The idea of balance is an unattainable standard that results in an almost constant feeling of failure,” says Jessica Lutz in Forbes. Or, as Olga Khazan put it in The Atlantic, “Despite the pressure to have it all, many workers still feel they are failing both in the office and at home.”

We may not like getting a text message at 2:11 am that requires an immediate response or our vacation interrupted with a crisis that demands attention. Like it or not, work demands upset the balance, just as can family needs and other personal issues. An imperfect work-life balance is the new normal.

1. Don’t Try To Pass The Passionate Test

3. Save The Dreams For Another Day

Those speaking passionately about their passion for their job may have a credibility problem. Anyone committed to their work doesn’t need to broadcast it. Their performance speaks more eloquently than anything they might say.

Arguably, commencement speeches are less than memorable, even though schools may pay speakers who exhort their listeners to follow their dreams or go change the world. But dreams soon fade as life and jobs (or lack of them) take us far from what we studied in school.

In fact, being passionate about one’s work is not all it’s cracked up to be, at least that’s what researchers at the University of Quebec at Montreal discovered. They found that being passionate about work leads to burnout, not success.

However, a colleague of mine cracked the code. At the end of every meeting, he wrote down a list of tasks that were discussed. He then announced, “Who’s going to do what to whom and when?” In other words, who’s going to get the job done? Believing we should be passionate about our work is naïve, while making a commitment to do our best work is a measurable objective.

december 2019

Everyone would be better served if someone said, “Hey, look! The chances are your chosen career will be obsolete sooner rather than later. Start planning for it now. Your permanent job is getting ready for the next one.” continued...

We can train ourselves to anticipate trends, get ourselves ready for change by sharpening our marketable skills, and have a plan in place so we’re always ready to make a move.

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13

4. Embrace The Inevitable As Opportunity Don’t let yourself get blindsided! It happens to those who ignore where their employer is going and who assume that “doing a good job is the best security.”

Kevin is someone who didn’t let it happen to him. For many years, he worked for a printing company handling prepress responsibilities, a job requiring skill and technical expertise. Then, seeing the future, he knew his job would be automated. When it happened, he was prepared.

Not everyone can be like Kevin, but we can train ourselves to anticipate trends, get ourselves ready for change by sharpening our marketable skills, and have a plan in place so we’re always ready to make a move.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com or johnrgraham.com.

Kevin and his family lived in an iconic South Boston “triple-deckers,” where he became skilled at taking care of the property. The word got around to “Call Kevin” if you needed a terrific handyman. To up his income, he was also on call at the Boston Convention Center, where he earned a reputation as being available when needed and doing a top-notch job. Then it happened. His boss landed a management position at the new $2.5 billion Encore Boston Harbor Resort and Casino - and he chose Kevin to go with him. A big win for Kevin!

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insight

december 2019

Cyber… What?

Part 6 of 6

This is my sixth and final article in the cyber series. This month we will cover the final two steps in creating your written security plan. Number 11- Implementing MultiFactor Authentication and number 12 - Procedure for Disposal of Non-Public Information. Our goal is to provide you with a pathway to compliance for your agencies and customer security. With this article you have the complete guide to your security plan. The implementation is up to you now. To review the 12 parts: 12 Parts to Building an Agency Security Plan 1. Risk Assessment 2. Written Security Plan 3. Incident Response Plan 4. Staff Training and Monitoring 5. Penetration Testing/Vulnerability Assessment 6. Access Control Protocol 7. Written Security Policy for Third Party Providers 8. Encryption of Non-Public Information 9. Designation of a Chief Information Officer (CIO) 10. Audit Trail 11. Implementing Multi Factor Authentication 12. Procedure for Disposal of Non-Public Information 11. Implementing Multi-Factor Authentication Multifactor authentication (MFA) is a security system that requires more than one method of authentication from different categories of credentials to verify the user’s identity for a login or other transaction.

One example is a policyholder logging into an agency website and being requested to enter an additional onetime password (OTP) that the website’s authentication server sends to the policyholder’s phone or email address.

Resources: • SBC.com: Protect Your Small Business with Two-Factor Authentication www.smallbusinesscomputing.com/biztools/protect-yoursmall-business-with-two-factor-authentication.html • CIO.com: Making Multi-Factor Authentication Easy to Use www.cio.com/article/3155006/making-multi-factorauthentication-easy-to-use.html

Editor’s Note: January 1, 2020 marks the first day of Brian McSherry’s journey into retirement. The IIA of IL staff would like to thank Brian for his dedication to the association, and to the industry, over the years. From a Young Agent Committee member, to Board Chairman, and then joining the staff as Vice President of Agents Insurance Services, he has forever left an impact on the lives of so many, both professionally and personally. We wish you the very best on the next chapter of your life! december 2019

By Brian McSherry

12. Procedure for Disposal of Non-Public Information As with encryption, this regulation refers to all electronic information that is not publicly available, including PII, PHI and PCI. Improper document destruction is often a downfall of small business security.

Regulations on this vary by state. Agents doing business in multiple states should adhere to the highest level of requirements. Keep in mind, there is a difference between complete disposal of information, and simply deletion.

Resource: • National Conference of State Legislatures (NCSL) - Data Disposal Laws by State www.ncsl.org/research/telecommunications-andinformation-technology/data-disposal-laws.aspx Also, please contact your agency management system provider for their disposal protocol.

These last two steps are extremely important in your cyber security plan development. Both are easily accomplished. If you need some help, we have some available. NetGen Consulting can provide products and services for your agency’s privacy, security and data breach response requirements. Contact Bill Larson @ bill@ netgendatasecurity.com.

If you need a refresher on the first 10 steps visit www. iiaofil.org/cyber. There you will find my magazine articles, as well as our recorded cyber webinars.

Its been six months since we started our journey on plan development. Hopefully you have taken this time to slowly develop your security plan. There is one step left “IMPLMENTATION.” All plans fails without implementation.

Thank you all for investing your time reading my cyber articles over the last six months. I hope you found the articles informative and useful in developing your security plan.

Brian McSherry is Vice President of Agent’s Insurance Services. He can be reached at bmcsherry@iiaofil.org or (217) 321-3018.

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15

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Available for sale exclusively through licensed independent agents and only where approved by state regulators

e INSIGHT -

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

DE CE M BE R

20 19

INSIGH T

Ga

CLEAinR a of N UNDER

e STAND Your Aw Laws Aff ING e gency in 202cting 0

- New Empl oymen - Can nabis t and th Laws e Wor kplace

What to Expect in Commercial Insurance Market Conditions Heading Into 2020

In this month’s e-Insight. december 2019

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New Employment Laws in Illinois

By Evan Manning

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november december 2019

The 101st General Assembly passed several initiatives impacting employers in Illinois. The new laws create new requirements and obligations for Illinois employers.

Some of them have already gone into effect and others at the beginning of the year. All of these will likely require changes to existing policies and procedures at all stages of the employment life cycle, as well as training, existing employment agreements, and separation agreements.

Employers should consider retaining legal counsel to assist with ensuring compliance. You may want to access out Legal Services Hotline, which is available to all current IIA of IL member agencies at no charge at the rate of 30 minutes per year. Please take advantage of this service and visit https://www.iiaofil.org/Products-Services/LegalServices-Hotline.

Amendment to the Illinois Income Tax Act

Minimum Wage Law (Lifting Up Illinois Working Families Act) – P.A. 101-0001 – Effective February 19, 2019

Lawmakers also passed SB 687 (P.A. 101-0008), sponsored

by Sen. Toi Hutchinson (D-Chicago Heights) and Rep. Michael Zalewski (D-Riverside), which contains the recommended income tax rates that could take effect in January 2021 if voters ratify the amendment next fall. If enacted, Illinois will have the 3rd highest corporate income tax rate in the United States and the 8th highest individual tax rate that also applies to pass through entities such as Subchapter S corporations, partnerships, and LLCs.

The General Assembly passed and Governor JB Pritzker signed SB 1, sponsored by Sen. Kimberly Lightford, which raises the state’s minimum wage to $15 per hour. The new law sets the following schedule for a minimum wage hike: • January 1, 2020 • July 1, 2020 • January 1, 2021 • January 1, 2022 • January 1, 2023 • January 1, 2024 • January 1, 2025

$ 9.25 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00

SB 1 provides that businesses with 50 or fewer fulltime employees total may take a tax credit to assist with the implementation of the higher minimum wages. An employer may not claim a credit for an employee who has worked less than 90 consecutive days immediately preceding the reporting period. However, these credits can accrue and be claimed for future reporting periods.

The current minimum wage in Illinois is $8.25 per hour, which amounts to about $16,500 per year for a full-time employee.

Workers’ Compensation Repose Law – P.A. 101-0006 – Effective May 17, 2019 Amends the Illinois Workers’ Compensation Act and the Workers’ Occupational Diseases Act. The amendment allows employees to sue their employer for injuries or diseases that manifest more than 25 years after occupational exposure. The new law provides that specified Sections limiting recovery do not apply to injuries or death resulting from an occupational disease as to which the recovery of compensation benefits under the Act would be precluded due to the operation of any period of repose or repose provision.

The new law provides that, as to any such injury or occupational disease, the employee, the employee’s heirs, and any person having the standing under law to bring a civil action at law has the nonwaivable right to bring such an action against any employer or employers. In effect, this IL WC Act law subjects Illinois employers to unlimited liability in tort for their employees’ “latent injury” claims.

This new law may render Illinois employers uninsured for potentially thousands of expensive and unpredictable claims.

december 2019

The Illinois House of Representatives and Senate, at the behest of Governor J.B. Pritzker, approved a constitutional amendment creating a graduated income tax in Illinois, if approved by voters. SJRCA 1 sponsored by Sen. Don Harmon (D-Oak Park) and Rep. Robert Martwick (D-Chicago) passed their respective chambers by votes of 40-19 and 73-44, both on a straight partisan vote.

The constitutional amendment achieved the required supermajority of votes in the General Assembly and will now be on the ballot in November 2020 where it will be ratified if 60 percent of those voting on the measure (or 50 percent of total voters in the election) approve the amendment.

The proposed tax rates for corporations:

Income

Tax Rate

$10,000 or less

4.75 percent

$10,001 to $100,000

4.90 percent

$100,001 to $250,000

4.95 percent

$250,001 to $500,000

7.75 percent

$500,001 to $1 million

7.85 percent

$1 million or more **

7.99 percent

The proposed tax rates for individuals and pass through entities:

Income

Tax Rate

$10,000 or less

4.75 percent

$10,001 to $100,000

4.90 percent

$100,001 to $250,000

4.95 percent

$250,001 to $350,000

7.75 percent

$350,001 to $750,000

7.85 percent

$750,000 or more **

7.99 percent

** For corporations with income in excess of $1 million, the entire income is taxed at the maximum 7.99 percent rate.

For individuals and pass thru entities with income in excess of $750,000, the entire income is taxed at the maximum 7.99 percent rate It is important to note that Illinois businesses are also subject to the Corporate Personal Property Replacement Tax (CPPRT) that is 2.5 percent for C corporations and 1.5 percent for pass thru entities. This effectively takes the top rates for most businesses to 10.49 percent and 9.49 percent respectively. continued...

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Salary History Ban and Other Amendments to Equal Pay Act – P.A. 101-0177 – Effective September 29, 2019

Amendment to the Workers’ Compensation Act – P.A. 101-0040 – Effective January 1, 2020

Employers and employment agencies may not request or require that employees or applicants disclose prior wage, salary, benefit or other compensation history as a condition of the application process or employment. Employers and employment agencies may simply ask applicants and employees about their expectations regarding compensation and benefits.

The section amends 820 ILCS 305/4 which requires an employer to file with the commission annually an application for approval as a self-insurer, guarantee payment by the employer of the compensation, and insure his/her entire liability to pay. Previously the Act required a panel of three commissioners to determine whether an employer knowingly failed to provide coverage as required.

Employers may not prohibit employees from discussing their compensation with other employees. Employers may not require an employee to sign an agreement that prohibits the employee from disclosing the employee’s compensation. The Act allows exceptions when the job applicant’s wage or salary history is a matter of public record under the Freedom of Information Act or if the job applicant is a current employee and is applying for a position with the same current employer.

Under the amendment, a commissioner after a hearing will determine whether an employer knowingly failed to provide coverage as required. Additionally, under the amendment, if the business is declared to be extra hazardous, a commissioner may issue an emergency workstop order on such an employer ex parte, prior to holding a hearing, requiring the cessation of all business operations.

The amendment raises the minimum citation amount that the investigator with the Illinois Workers’ Compensation Commission Insurance Compliance Division may issue, based upon the period of noncompliance, from $2,500 to $10,000.

The Equal Pay Act will allow employees to compare their jobs to those requiring “substantially similar” skill, effort, and responsibility, instead of “equal” skill, effort, and responsibility found in the previous version of the law. This provides additional protection and a lessened standard to employees pursuing legal action based upon unlawful pay discrimination.

The Equal Pay Act further limits an employer’s ability to justify pay disparities as non-discriminatory. An employer must show that the non-discriminatory factor (1) is not based or derived from differential in compensation based on employee’ sex or other protected characteristics; (2) is job-related with respect to the position and consistent with business necessity; and (3) accounts for the differential.

Employee damages under the Equal Pay Act now include damages incurred, special damages up to $10,000, potential injunctive relief, potential punitive and compensatory damages, and costs and reasonable attorneys’ fees. The Equal Pay Act previously included only lost wages, attorneys’ fees, and costs.

Collective Bargaining Freedom Act – P.A. 101-0003 – Effective April 12, 2019 Establishes that it is the policy of the state that employers, employees, and their labor organizations are free to negotiate collectively. Local governments are prohibited from enacting or enforcing any local laws, ordinance, rules, or regulations that restrict, prohibit, or regulate the use of union security agreements. Gives interested parties a private right of action to file suit in circuit court.

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Under the amendment, if an employer is found to be noncompliant more than once, all minimum penalties will double. Further, the failure or refusal to comply with an order of the commission or the knowing and willful failure of an employer to comply with a citation issued by an investigator, may lead to civil penalties of up to $1,000 per day for each day of refusal, with a maximum penalty of $20,000.

Equitable Restroom Act – P.A. 101-0293 – Effective January 1, 2020 Requires all single-occupancy restrooms in a place of public accommodation or public building to be identified as “all-gender” and designated for use by no more than one person at a time or for family or assisted use. The Act further requires exterior signage that marks the singleoccupancy restroom and does not indicate a specific gender. The second Act provides that a place of public accommodation, a state building, a retail store of more than 5,000 square feet, or a restaurant that meets certain criteria are required to provide at least one baby diaper changing station accessible to both women and men in one location or one station in each restroom. The Act further requires signage for the baby diaper changing station at or near the entrance to the changing station that indicated the location of the changing station. The second Act does not apply to industrial buildings, nightclubs, or bars that do not permit anyone under the age of 18 to enter the premises, or in a health facility that has a restroom intended to be used by one persona at a time.

december 2019

Illinois Workplace Transparency Act – P.A. 101-0221 – Effective January 1, 2020, Article 5 effective July 1, 2020, Article 6 effective August 9, 2019 Prohibits employers from entering into a contract or agreement if the contract or agreement contains a nondisclosure agreement or non-disparagement clause that covers harassment or discrimination. Contracts with these clauses are voidable if they were entered into before the effective date of this Act. Unlawful discrimination now includes perceived discrimination under the Illinois Human Rights Act (IHRA). There are exceptions in the Act for nondisclosure clauses or non-disparagement clauses contained in settlement agreements if: • The claims or disputes arose before the settlement agreement was executed and the employee does not waive any claims that accrue after the execution of the settlement agreement; • Clauses were mutually agreed upon and mutually benefit both parties in a valid, bargained-for consideration in exchange for the confidentiality; • Employee or applicant is given 21 days to consider the agreement before it is executed; and • Unless waived, the employee or applicant has 7 days after the agreement is executed to revoke the agreement.

Employers will be liable for harassment and sexual harassment of nonemployees, including independent contractors and consultants by employer’s nonmanagerial and nonsupervisory employees, once the employer becomes aware of the conduct and fails to take reasonable corrective measures.

Beginning July 1, 2020, and by each July 1 thereafter, the Act charges each employer that had an adverse judgement or administrative ruling against it in the previous year to disclose the following to the Illinois Department of Human Rights:

Every employer in Illinois will need to provide sexual harassment prevention training at least once per year to all employees using the model sexual harassment training provided by the state or the employer’s own sexual harassment training that equals or exceeds the minimum standards provided by the model. The penalty for not providing training or not reporting ranges from $500 to $5,000.

The Act also amends the Victims’ Economic Security and Safety Act by allowing victims of domestic violence, sexual violence, or gender violence the right to take unpaid leave to seek medical help, legal assistance, counseling, safety planning, and other assistance without employers penalizing them for 4 to 12 weeks depending on the size of the employer. The Illinois Department of Human Rights’ Institute for Training and Development conducts valuable trainings to organizations and companies throughout Illinois. Their website is www2.illinois.gov/dhr/Pages/ default.aspx.

Artificial Intelligence Video Interview Act – P.A. 101-0269 – Effective January 1, 2020 The Act requires employers to obtain consent from applicants before using “artificial intelligence” to evaluate an applicant’s video interview and qualifications for the position. The consent must (1) notify each applicant before the interview that artificial intelligence may be used to analyze the applicant’s video interview and fitness for the position; and (2) explain how the artificial intelligence works and the general types of characteristics it uses to evaluate applicants. The Act additionally prohibits employers from sharing video interviews, except with persons necessary to evaluate an applicant’s qualifications for the position. Employers must delete the videos within 30 days of their receipt of an employee’s request.

Evan Manning is the Director of Government Relations for the IIA of IL. He can be reached at (217) 321-3002 or emanning@iiaofil.org.

• The total number of adverse judgments or rulings during the preceding year; • Whether any equitable relief was ordered against the employer in any adverse judgments or administrative rulings; and • The number of adverse judgements or administrative rulings in certain categories.

Included in the amendments to the IHRA is an expanded definition of “employer” and “worksite”. The amendments expand the definition of “employer” to include any entity that employs one or more persons. Currently, the law applies a 15-employee threshold for most protected categories. The Human Rights Act will also apply to working environments beyond the physical location at which employees work, such as any instances of remote work or any work performed outside of the workplace.

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CANNABIS and the

WORKPLACE

By Evan Manning

Legalization of Recreational Cannabis The legalization of recreational cannabis has been gaining steam for several years. Now, with the recent passage of the Cannabis Regulation and Tax Act in Illinois, IIA of IL members need to know what the Illinois law does and what it means for employers. This article will summarize the current, confusing framework of federal statutes, Illinois statutes, address employers’ rights and obligations pertaining to cannabis use, and provide practical guidance and advice for employers in Illinois where medical and recreational cannabis use is legal.

Let’s begin with the new law. On May 31st, the General Assembly narrowly approved the use of recreational cannabis in Illinois nearly six years after authorizing the use of medicinal cannabis. Sponsored by Rep. Kelly Cassidy (D-Chicago) and Sen. Heather Steans (D-Chicago), HB 1438 received bipartisan support and was signed into law by Governor J.B. Pritzker on June 25th. Thus, along with being one of the thirty-three states plus Washington D.C. to have legalized medical cannabis use, Illinois joins ten other states to have legalized recreational cannabis use.

The enacting legislation (P.A. 101-27) amended the Right to Privacy in the Workplace Act to define lawful products as those that are lawful under state law except as provided

by Section 10-50 of the Cannabis Regulation and Tax Act. Under the law, Illinois residents over the age of 21 years will be able to possess 30 grams of cannabis while nonresidents can possess 15 grams of the drug. Individuals may not smoke cannabis in public. Recreational cannabis users will not be allowed to grow plants at home; however, medicinal cannabis patients will be able to maintain up to 5 plants in their residence.

Legal medical cannabis use in Illinois was first enacted on January 1, 2014. P.A. 98-0122 created the Compassionate Use of Medical Cannabis Pilot Program Act. Provides that when a person has been diagnosed by a physician as having a debilitating medical condition, the person and the person’s primary caregiver may be issued a registry identification card by the Department of Public Health that permits the person or the person’s primary caregiver to legally possess no more 2.5 ounces of usable cannabis during a 14-day period that is derived solely from an intrastate source. The Pilot Program was later strengthened and became permanent with the passage of P.A. 101-363.

The complete Compassionate Use of Medical Cannabis Program Act can be found in 410 ILCS 130/.

Background on Marijuana in the United States Legalization of cannabis has been gaining traction on the state-level for more than a decade. Only until recently has there been a much bigger discussion on the national-level. Nationally, the biggest piece of legislation regarding cannabis was in 1970 when Congress passed the Controlled Substances Act (CSA), which banned 22

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or regulated certain controlled substances. The CSA established five schedules of controlled substances, with Schedule I substances defined as those which have a high potential for abuse, no currently accepted medical use in the United States, and a lack of accepted safety for use under medical supervision. Under the CSA’s classification system, cannabis remains a Schedule I drug which is illegal to possess, use, cultivate, or sell.

In 1996, California became the first state in the country to legalize medical cannabis use when it passed the Compassionate Use Act. Since then, 32 more states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have passed laws allowing medical cannabis use. Medical cannabis statutes vary considerably concerning requirements for medical cannabis use, including residency requirements, whether home cultivation is permitted, registration obligations, and limits on the amounts and types of cannabis products that can be used.

In 2012, Washington and Colorado became the first two states to legalize cannabis for recreational use. Since then, nine other states – including Alaska, California, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, and Vermont – and the District of Columbia have also legalized recreational cannabis use.

In August 2013, amid various states’ cannabis legalization efforts, the U.S. Department of Justice (DOJ) updated its cannabis enforcement policy and announced that while cannabis remained illegal under federal law, the DOJ was deferring its right to challenge state cannabis legalization laws. The DOJ further stated that it expected states to establish strict regulatory schemes in alignment with eight enforcement priorities established by the DOJ, but that the DOJ would not prioritize enforcement of the federal prohibition on cannabis beyond those eight priorities. But in 2018, the DOJ reversed course and announced a further update to its cannabis enforcement policy, including a return to the rule of law and the rescission of previous guidance documents. The DOJ’s 2018 memorandum specifically stated that prosecutors would continue to enforce the federal prohibition on cannabis.

Banking and Cannabis The U.S. House of Representatives passed The Secure and Fair Enforcement Banking (SAFE) Act on September 25, 2019. The legislation would allow banks to provide services to cannabis companies in states where it is legal.

By a vote of 321-103, lawmakers approved the bill, which now heads to the Senate. The bill received nearly unanimous support from Democrats, as well as nearly half of all Republicans. The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to write up rules for how they would supervise such banking activity. december 2019

Since 2014, protections have existed for cannabis businesses in legalized states via riders that have needed to be passed with each successive fiscal year. However, the SAFE Banking Act represents the first piece of standalone cannabis legislation to be voted on in Congress.

Were it to become law, Congress would no longer need to pass annual riders, since the Act itself would protect banks and credit unions from being targeted by the federal government for providing services to the cannabis industry.

In the bill there are explicit protections for insurers. With respect to engaging in the business of insurance within a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis pursuant to a law or regulation of such State, political subdivision, or Indian Tribe that has jurisdiction over the Indian country, as applicable, an insurer that engages in the business of insurance with a cannabis-related legitimate business or service provider or who otherwise engages with a person in a transaction permissible under State law related to cannabis, and the officers, directors, and employees of that insurer may not be held liable pursuant to any Federal law or regulation solely for engaging in the business of insurance; or for further investing any income derived from the business of insurance.

Employers and Their Rights In this rapidly changing landscape, many employers are left wondering how cannabis legalization will impact their workplaces. Can employers deny employment to applicants or discipline employees who test positive for cannabis, even in Illinois where cannabis is legal?

Do employers need to modify their workplace policies to address cannabis use? Do employers have a duty to accommodate medical cannabis use, either at work or outside the workplace?

Although the Cannabis Regulation and Tax Act legalizes cannabis at the state level, Section 10-50 enables employers to maintain reasonable zero-tolerance or drug-free workplace policies, provided that the policies are applied in a nondiscriminatory manner, and to prohibit employees from being under the influence at the workplace, while working, or while on call.

Although, in Illinois, an employee may be disciplined/ terminated for violating an employment policy by being impaired/under the influence, the employer must afford the employee a reasonable opportunity to contest the basis of the determination. An employer may consider an employee to be impaired or under the influence if it has a good faith belief that the employee manifests specific, articulable symptoms while working that decrease/lessen the performance of the employee’s duties or tasks— including symptoms of the employee’s speech, physical dexterity, agility, coordination, demeanor, irrational or unusual behavior, or negligence or carelessness in operating equipment or machinery; disregard for the safety of the employee or others or involvement in any accident that results in serious damage to equipment or property; disruption of a production or manufacturing process; or carelessness resulting in injury to the employee or others.

Be aware that the amendment to The Right to Privacy in the Workplace Act prohibits employers from discriminating against job applicants or adverse action against current employees for off-duty use of legal substances such as december 2019

cannabis. While drug screening for cannabis has not been outlawed in Illinois as it has been in Nevada and the city of New York, employers should proceed with caution as current cannabis testing methods cannot provide conclusive proof that an employee was impaired while on duty. Drug screening should be paired with documentation of the symptoms leading to the employer’s belief the employee was impaired while on duty.

Finally, it is important to note that no legal authority has yet required an employer to accommodate medical cannabis use during work hours or while at work. Thus, employers in all states may continue to adopt and enforce policies prohibiting the use of cannabis while at work or during work hours.

Guidance for Employers in Illinois Although judicial precedent in several other states suggests that employers in those states need not accommodate medical cannabis use, the change in attitudes towards cannabis and growing trend towards cannabis legalization may lead to those authorities becoming overruled, whether by statute or by further judicial decision. Thus, the following guidelines are intended for employers in Illinois where medical and recreational cannabis use is legal: 1. Continue to enforce workplace policies preventing the use of alcohol, cannabis, and illegal drugs at work or during work hours. Ensure that these policies expressly identify cannabis as a prohibited substance, instead of referring to “illegal drugs” since that phrase no longer encompass cannabis. Include in the policies a procedure by which employees may contest a cannabis-related disciplinary action. Communicate these policies to employees and explain repercussions for impairment on the job prior to the law taking effect on January 1, 2020.

2. Determine whether any federal statute or regulation requires your organization to maintain a drugfree workplace or decline to employ any applicant testing positive for cannabis. If not required, consider eliminating cannabis from pre-employment drug screening to avoid discrimination against applicants for off-duty use of legal substance.

3. Do not use a positive cannabis test as the sole basis for any employment action as current testing limitations cannot accurately determine the timeframe of the use.

4. Educate managers on the signs of impairment and consider using a checklist to document signs before taking any employment action. These include symptoms of: • Speech • Physical dexterity • Agility • Coordination or demeanor • Irrational or unusual behavior • Negligence or carelessness 5. If a prospective or current employee notifies you of medical cannabis use, consult with counsel to determine whether a reasonable accommodation is required or feasible.

Undoubtedly the landscape will continue to change as amendments and judicial rulings are made, we will continue to update our members on any new proceedings that are made available regarding cannabis both nationally and in Illinois.

Evan Manning is the Director of Government Relations for the IIA of IL. He can be reached at (217) 321-3002 or emanning@iiaofil.org. insight

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Avoiding

TURNOVER in High-Performing Salespeople

By Caliper The average annual turnover rate for salespeople is 20%.

Many factors account for that number, but a sizeable amount of voluntary turnover occurs from burnout and lack of motivation. To combat turnover, it’s crucial to put added resources behind your onboarding and development process to ensure your hires maintain the engagement, mental toughness, and willingness to tap into the personality traits that contribute to success in the role.

We’ve previously discussed what the different sales jobs entail and which personality traits are best suited to those jobs, but how do you nurture your employees so that they maintain their performance and resist leaving?

Avoiding a Bad Hire

Just because a candidate exhibits the right personality traits doesn’t mean they will perfectly adapt to the role without additional coaching and development.

Unproductive workers reduce revenue potential by 40%, and another 36% of your team can also experience negative performance trends when affected by negativity from a low-performing or unhappy co-worker. As we’ve previously outlined, it doesn’t always come down to experience. Look for candidates who are adept at navigating the modern sales force.

Sales success today isn’t made from just making calls and making connections. Top salespeople also know how to multitask so as to keep records, build relationships, manage data, document conversations, stay up-to-date on industry trends, and function as a consultant rather than just focusing on closing the deal. 79% of buyers say it’s absolutely critical they interact with a salesperson they trust and who adds value to their business - not just a sales rep who wants to make the sale.

Nurture Over Nature

Even the perfect salesperson needs to know their manager is invested in them. You’ve placed them in their perfect role, but they can’t succeed on their own. Your salespeople need help understanding and maintaining their motivations, building out their competencies, and developing their work style. Without these, you might start to see that turnover rate creep up - even in your top performers.

Working with Introverts Versus Extroverts You might think salespeople are all naturally extroverts, but that isn’t necessarily the case. Extroverts make great salespeople because they love to talk; introverts because they love to listen. Each can build equally meaningful december 2019

client relationships through their strengths, but they will likely each have different work styles. As such, you can’t treat every salesperson the same. Pay close attention to the types of interactions where your team members thrive, and mold your management style to fit their preferred methods of communication. Trying to fit square pegs into round holes can also contribute to turnover rates.

Watch for Burnout High-performing salespeople will often keep their nose to the grindstone in order to meet their goals, and it’s the responsibility of leadership to catch those at risk of burnout and intervene before it becomes a problem. Here’s how you can avoid burnout and maintain motivation in your sales team: • Set clear, measurable benchmarks - Having small, achievable goals allows your employees to feel productive and successful, even during long stretches of indecision or lengthy sales cycles. Celebrating small successes along the way boosts morale and keeps spirits high.

• Extra time off - Many companies offer bonus PTO after the busy season. Whether that’s Fridays off throughout the summer or designated long weekends, allowing your busy team a little time for rest and relaxation can afford them the time they need to recharge without sacrificing their progress.

• Make time for self-improvement - Give your team opportunities to sharpen their skills, learn new methodologies, and continue their education in order to reach their full potential. Demonstrate that you’re committed to their excellence just as much as they are, and you’ll notice a more engaged, motivated team.

Once you’ve carefully chosen and placed your candidate, it’s important that you develop and implement a coaching plan that allows your employees to thrive in a role in a way that’s suited to their particular personality. For more information on the Caliper Essentials for Coaching and how to build a strategic coaching plan for your team members, reach out to our experts about a subscription today!

View the original article on the Caliper website at https://calipercorp.com/blog/avoiding-turnover-in-highperforming-salespeople/.

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INSIGHT | associate news Thank you to our Associate Members.

Diamond Level Members

Platinum Level Progressive

Gold Level AAA Insurance Arlington/Roe Blue Cross/Blue Shield of IL Surplus Line Association of Illinois

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS IMT Insurance A. J. Wayne & Associates AFCO Credit Corporation AMERISAFE AmWINS Brokerage of the Midwest, LLC Aon Programs Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Burns & Wilcox, Ltd. Chicagoland Carstar 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 Insurance Fund Illinois Public Risk Fund Indiana Farmers Insurance Insurance Program Managers Group J C Restoration J M Wilson Kemper Keystone Insurance Group, Inc. KPA, LLC dba Succeed/KPA 26

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Nationwide West Bend Mutual Insurance Co.

Bronze Level Larry Gordon Agency Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company MarshBerry Maximum Independent Brokerage, LLC Mercury Insurance Group MetLife Auto & Home Midwest Insurance Company miEdge NatGen Premier NHRMA Mutual Workers’ Compensation PEOPLE Previsor Insurance ProAg Management Inc PuroClean 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 2019

iia of il news | INSIGHT

Education Classes december

3 3 4 11 11 11 12 17 17 26 30

Ethics & E&O: Synergy Not Rivalry Webinar Pre-Licensing Course Life & Health Springfield CIC - James K. Ruble Graduate Seminar Elk Grove Village E&O: Roadmap to Policy Analysis Webinar Pre-Licensing Course Property & Casualty Rolling Meadows Pre-Licensing Course Property & Casualty Springfield E&O: Roadmap to Policy Analysis Webinar Ethics and the Law Webinar Pre-Licensing Course Life & Health Rolling Meadows E&O Risk Management Webinar E&O Risk Management Webinar

New Members member agency ASIA, Ins. (Assoc. Serv. Ins. Agy.) Chicago, IL First Mid Insurance Group Mattoon, IL Group Marketing Services, Inc. Bloomington, IL For information regarding IIA of IL membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org.

december 2019

january

6 8 13 14 14 16 21 21 22 22 30 30

Pre-Licensing Course Property & Casualty Mt. Vernon Pre-Licensing Course Life & Health Mt. Vernon Pre-Licensing Course Life & Health Peoria E&O: Commercial Liability Coverage Gaps Webinar E&O: Roadmap to Homeowners Insurance Webinar Ethics-Walking a Straight Line Webinar Pre-Licensing Course Property & Casualty Springfield Pre-Licensing Course Property & Casualty St. Charles Ethics & E&O: Synergy Not Rivalry Webinar CIC-Agency Management Rolling Meadows IIA-E&O: Roadmap to Policy Analysis Webinar FAC Mid-Winter Meeting Springfield

Online Education www.iiaofil.org December & January Featured Online Classes E&O Risk Management | It’s Not My Fault, or Is it?

Workers Compensation Beyond the Basics Fiduciary Liability, ERISA Bonding & Emp. Benefits Liability Property & Liability | Income After Retirement Commercial General Liability | Cyber Liability | Ethics Aging Parents and Insurance Decisions | And More! insight

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Board of Directors Pr

Jay Peterson Vice President

Peterson Insurance Services, Inc., Clinton, IL President Number of Years with Agency: 40 Year You Started in Insurance: 1979 Education: Richland Community College Current or Past Civic, Political, or Community Service Activities: - Rotarian - Dewitt County Development Council - Board Member - Clinton Country Club - Past President - Clinton Lake Ducks Unlimited - Past President - Dewitt County Pheasants Forever - Founding Director What do you feel are major challenges facing our Association today?

Lack of member engagement and Mergers & Acquisition activity.

What suggestions do you have to respond to these challenges?

Expense reduction or find new sources of revenue. Explore new events and new training ideas that appeal to members in the changing environment.

What do you see at the greatest benefit to IIA of IL membership?

Networking, legislative updates and training.

Joe Heneghan

What advice do you have to share with someone considering a volunteer position with the IIA of IL? Get involved at some level and/or allow some of your staff the opportunity to be involved. I have enjoyed my four years as a Regional Director and found it very rewarding.

What prompted you to get involved with the Association?

I had always thought it would be interesting to serve and learn how other agents, the IIA of IL and companies deal with the issues we all face.

Education: Eastern Illinois University

- Harvest Fest - Food Chairman - 4th Degree Knights of Columbus and Honor Guard – Comptroller - Jersey County Housing Authority – Commissioner - Jersey County Past Board Member - Advisory Boards - Rockford Mutual Insurance, Allstate Insurance, Consumers Insurance - Illinois Farm Agents Council - Member, Past Council Chairman - Quails Forever – Member - Pheasants Forever – Member - Honorary Jersey County Fair Board - Jersey County Business Association - Member

Current or Past Civic, Political, or Community Service Activities: - St. Francis Xavier Catholic Church - Lector, Eucharistic Minister, Usher, and Dinner Chairman - Cemetery Board and Building Committee Member

What do you feel are major challenges facing our Association today?

Consumers purchasing insurance from direct writers over the internet, mergers & acquisitions, and getting qualified help to take over agency operations.

Region 2 Director

Heneghan Insurance Agency, Inc. dba Heneghan, White, Cutting, & Rice Insurance Agency, Jerseyville, IL President Number of Years with Agency: 38 Year You Started in Insurance: 1982

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rofiles

Bill Durkin

At-Large Board Member

Daniel and Henry Insurance and Risk Management, Chicago, IL Director & Broker and Member of Executive Committee and Operations Team Number of Years with Agency: Seven Year You Started in Insurance: 1992 Education: University of Illinois Champaign-Urbana - 1989 Current or Past Civic, Political, or Community Service Activities: - Riverside Brookfield High School District Board of Education - Elected member - Fenwick High School Life Trustee - Volunteer in local, statewide and federal elections for both Democrats and Republicans What do you feel are major challenges facing our Association today?

Attracting new members and advocacy for our best interests and protection as independent agents big and small.

What do you see at the greatest benefit to IIA of IL membership?

Advocacy and variety of offerings.

What advice do you have to share with someone considering a volunteer position with the IIA of IL? You will be working alongside a lot of great people. The Association is a great organization.

What suggestions do you have to respond to these challenges?

Have a larger presence on the internet and recruiting qualified people to the industry.

What do you see as the greatest benefit to IIA of IL membership?

The Legislative action and help the Association provides to prevent burdens on the agency.

What advice do you have to share with someone considering a volunteer position with the IIA of IL? The Association is a great place to meet peers in the industry from across the state and event across the nation.

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NEW SERVICE!

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Concierge is available by phone, email or web portal, 24-hours a day, 7-days a week, 365days a year.

Illinois

Insurance Pre-Licensing Program

Designed by experienced agents for the next generation of great agents.

Designed by industry experts, one of whom played a role in developing the licensing exam, this program will give you, or your new hire, valuable insights into the industry.

Our program is top-notch and will blow away the competition. It’s not just about being able to pass the test. It’s about retaining the information and building the foundation your new hire needs to have a successful career. You will see a difference in taking our sessions versus other educational providers offering similar programs.

By attending an Illinois Insurance Pre-Licensing Program, you, or your new hire, will: • Receive valuable insights into the industry from instructors that have over 30 years experience • Retain and understand the information presented, not just memorize answers for a test • Be confident in your new role in the insurance industry

Cost per two-day session: $229 per person (IIA of IL Members receive discounted rate of $199) Includes workbook, online interactive flash cards and quizzes as well as access to instructors after the program.

IIA of IL Members will need a discount code to receive member rate.

Contact info@ILPrelicensing.com to request the code.

Contact us to inquire about onsite training for your organization, or discounted registration for 5 or more people.

Winter/Spring 2020 dates & locations have been released.

Check out the website for details and to register.

Check out what attendees are saying: “I enjoyed the smaller class size as it made it more hands on and personalized.”

- Jordan Eiring “Very comfortable atmosphere that allowed instructors to take time to answer questions and revisit topics. Great pace of learning.”

- Geoff Desmond

www.ILPrelicensing.com info@ILPrelicensing.com (833) 99LEARN (995-3276) december 2019

Find Us On Socials: insight

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INSIGHT | industry news Illinois’ Healthiest Employers for 2019 Include Two IIA of IL Members

Crain’s Content Studio, a division of Crain’s Chicago Business, and Cigna (NYSE: CI) have announced the winners of the 2019 Illinois’ Healthiest Employers Awards, recognizing companies that make workplace wellness a priority. The 8th annual awards were presented at a ceremony Friday, September 27 at the Fifth Third Arena by Chicago Blackhawks legend Brian Campbell.

This is the fourth year of Cigna’s sponsorship of the Illinois’ Healthiest Employers Awards, a corporate wellness awards program that recognizes organizations that proactively shape the health of their employees. Since 2009, more than 8,000 employers have participated across 45 cities in the nationally recognized Healthiest Employers Award Program, representing insights and best practices of more than 60,000,000 employee lives.

The award is powered and scored by Springbuk, a health intelligence software company, which administers an online application process to evaluate companies’ performance in six key areas of corporate health and wellness: culture and leadership commitment, foundational components, strategic planning, communication marketing, programming and interventions, and reporting and analytics. Applicants are categorized by number of employees so that organizations compete against like-sized organizations.

The IIA of IL staff and Board of Directors congratulates the following member agencies: 2-99 Employees: Winner: Connor & Gallagher OneSource, Lisle, IL

Grinnell Mutual Internship Program Recognized

Grinnell Mutual has been named one of Vault’s 2020 Best 100 Internship Programs in the country, ranking seventh overall with a score of 9.278.

Vault, a career research company based in New York, surveyed over 400 companies nationwide. More than 14,000 interns ranked their experience on a scale of 1 to 10 (10 being best).

Interns rated their companies based on six areas: work-life balance, compensation and benefits, interview process, career development, full-time employment prospects, and diversity.

Within the overall rankings, Grinnell Mutual also ranked fourth for full-time employment prospects, and ninth for compensation and benefits.

One co-op student from Grinnell Mutual wrote, “I never thought that I would be in the insurance industry but it’s a lot more than what people believe the stereotypical insurance company is. It’s not just selling insurance; it involves a bunch of different departments to keep the company a well-oiled machine. It’s the hidden gem of the Midwest.”

In recent years Grinnell Mutual has invested in growing and improving its program for co-op students and interns with competitive wages, flexible work hours, the opportunity to earn school credit, access to senior leadership, and the chance to work across divisions on enterprise-wide projects.

100-499 Employees Finalist: The Horton Group, Orland Park, IL

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people in the news | INSIGHT Schmale Insurance Agency Celebrates 100 years of Service with Travelers, Demonstrates Enduring Value that Agents Provide in Their Communities

Congratulations to Schmale Insurance Agency for celebrating 100 years of business. Since 1919, Schmale Insurance Agency has been selling insurance and partnering with Travelers to help clients with their home and auto insurance needs. Schmale has enjoyed a century of continued success because of their perseverance and solid foundation of personal relationships.

“The longevity of the Schmale Insurance Agency is a testament to our joint commitment to delivering insurance products and services that meet and exceed customers’ needs,” said Chris Hackworth, Regional Vice President of Sales, Personal Insurance at Travelers.

“We thank Schmale for being outstanding ambassadors for Travelers for so many years, and for continuing to exemplify the important role that agents play in today’s market.”

J.M. Wilson Hires Walsh as Marine Underwriter

J.M. Wilson has announced the addition of Jim Walsh as a Marine Underwriter. He will be responsible for working with Marine carriers and agents for both commercial and personal ocean marine and wet inland marine business in all states where J.M. Wilson is licensed.

Walsh has over 18 years of experience in marine hull & liability brokerage, as well as marine underwriting. He is a graduate of the U.S. Merchant Marine Academy with a Bachelor of Science degree in Marine Engineering.

Founded in 1920, J.M. Wilson is a Managing General Agency and Surplus Lines Broker providing independent insurance agents access to specialty markets. J.M. Wilson can provide coverage for standard and hard-to-place commercial transportation, property & casualty, professional liability, garage, personal lines, and surety.

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Learn how you can represent IMT Insurance at imtins.com/contact and help your policyholders Be Worry Free with IMT.

For more information about J.M. Wilson, call (800) 666-5692 or visit www.jmwilson.com.

AUTO | HOME | BUSINESS

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INSIGHT | classifieds for the insurance professional by the insurance professional

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.

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.

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

Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

Dan Browne or Cathy Hall Forest Agency (708) 383-9000 www.forestagency.com/contact-us/mergersacquisitions/

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