e-Insight - May 2021 by Big I Illinois

MAY 2021

INSIGHT MORE INNOVATIONS

INCREASED CREATIVITY

NEW PERSPECTIVES

INCREASED PROFITS

INCLUSION

BETTER DECISION MAKING

LOW EMPLOYEE TURNOVER

BETTER REPUTATION

Five Things Anyone Can Do to BE MORE INCLUSIVE Content Marketing that Matters Illinois Issues Feasibility Report For Coverage Affordability Initiatives

HIGHER ENGAGEMENT

SUCCESS HIRING RESULTS

PROBLEM SOLVING

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Editor & Graphic Design - Rachel Romines

May 2021

Advertising - Tami Hubbell

CONTENTS 6 IIA of IL Diversity Scholarship Program

14 18 22

Summary: Illinois Issues Feasibility Report For Coverage Affordability Initiatives

26 28

Five Things Anyone Can Do to Be More Inclusive

Why Hiring Older Workers is Good for Your Business

Workplace Flexibility, the ADA, and Requesting Medical Information

Do Your Proposals Have These?

By Michael Wojcik

Leadering Generationally Diverse Teams

By Alyson Van Hooser

Summary Findings from IIA of IL Diversity, Equity, and Inclusion Survey

By Dr. Lee Nunery

By Raven Solomon

How to Do Diverse and Inclusive Content Marketing That Matters

By Ann Gynn

By Sharon Emek

By Tracie DeFreitas By Curtis Pearsall

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 10 12

President’s Message Brett’s Two Sense Trusted Choice Industry

21 38 41 42

e-Insight Associate News IIA of IL 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 • 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

Regional Directors

ADVERTISERS 40

AMERISAFE

APPLIED UNDERWRITERS

BERKSHIRE HATHAWAY/GUARD INSURANCE CO

DONEGAL INSURANCE GROUP

EBRM

EMC INSURANCE COMPANIES

GRINNELL MUTUAL REINSURANCE COMPANY

IIA OF IL SOLUTION CENTER

INSURANCE PROGRAM MANAGERS GROUP

JM WILSON

Cover Tip

OMAHA NATIONAL UNDERWRITERS, LLC

SECURA INSURANCE

UNITED FIRE GROUP

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

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Diversity Scholarship Program To invest in the future of the insurance industry in Illinois and create long-term opportunities for minorities considering a career in insurance, the IIA of IL now offers Diversity & Inclusion Scholarships. Scholarships are awarded to IIA of IL member agencies looking to hire minorities into their agency OR individuals considering a career in the insurance industry. Scholarships will be awarded based on availability of funds. Member agencies with 11+ employees qualify for two scholarships per fiscal year. Member agencies with 10 or less employees qualify for one scholarship per fiscal year. Individuals qualify for one scholarship per year, choosing either Property & Casualty or Life & Health. For the purposes of this Scholarship, a minority is defined as a person in a racial or ethnic minority group historically disadvantaged within the context of the United States, which may include: Black or African American; Hispanic or Latino; Native American; Pacific Islander; or Asian American.

IIA of IL Diversity & Inclusion Scholarship includes: 1. Free P&C OR L&H Illinois Insurance Pre-Licensing class for the new producer/CSR This course prepares the new producer/CSR to take the Illinois State Exam for a Property & Casualty License or Life & Health License. Workbook, online quizzes and flashcards, and access to instructors post-class is included. 2. Reimbursement for the state licensing exam The fee to take the Property & Casualty OR Life & Health state licensing exam and application fees will be reimbursed upon receipt of proof of passing the exam. 3. Initial license fee The license fee will be reimbursed upon receipt of purchase. 4. New Hire Training through New Level Partners/ COMBINATION BUNDLE- Commercial Lines and Personal Lines Coverage Basics Includes 17 Personal Lines Coverage Basics courses and 23 Commercial Coverage Basics courses 5. EDGE Conference registration for two years Conference held in the spring each year.

For more information, go to www.iiaofil.org/diversity ** Scholarship benefits are not transferrable to another individual and may not be used for classes or events outside of the listed benefits.

insight

may 2021

president's message | INSIGHT

IIA of IL Diversity, Equity, and Inclusion Initiatives We are all fortunate to be in an industry that uses our talent and resources to help others. We work with businesses, individuals, and families that are diverse in size, complexity, and many other ways. We diversify our offerings to meet the needs of those specific clients. We truly understand that we must challenge ourselves to find creative and unique solutions to address our customer base. At the same time, our industry has struggled to attract young people to our great business. In various ways, we have adapted and achieved diversity in the solutions we provide clients. However, I would like to challenge everyone today to create a talent acquisition strategy that includes diversity. Yes, we need to attract more young people to our business, and I would love to see everyone include a plan to not only attract young talent but consider adding young, diverse talent. At the IIA of IL, we are initiating a program to help launch those efforts. I have outlined a few initiatives that are being introduced in 2021 to help our members execute a plan to attract more young, diverse talent to our wonderful industry. We will combine the resources of the IIA of IL with your plan and willingness to attract young talent by making it easier to find, hire, and train candidates. Here are the steps we plan to initiate: 1. Recruiting- The IIA of IL will engage and develop a plan with select Illinois colleges for recruiting fairs in the Fall of 2021. In preparation for this recruiting effort, IIA of IL will launch an association job board powered by Career Plug. Association members will have free access to this site and a members-only rate on the Career Plug Hiring platform. The association will conduct outreach to member agencies to promote the job board as a resource and invite agencies that offer internships or are seeking entry-level employees to join IIA of IL and the Young Agents Committee at the recruiting fair. The association will also promote this job board as a resource for students seeking opportunities in the insurance industry.

3. Mentoring - We will be piloting a mentoring program that will include an approach to formally connect ethnic minority or female-owned agencies with successful agencies willing to mentor. They will work together to understand strengths, opportunities, weaknesses, operating style, employee capabilities, carriers, financials, planning, and goal setting. The program will include six monthly consulting sessions with mentor agencies followed by semi-annual reviews and mentoring sessions for the next 18 months. The IIA of IL has launched a Diversity Resource page on the website at www.iiaofil.org. You will find, among other resources, a DEI Resource Guide that includes best practices, reports, websites, books, articles and other media to inform and educate you on the various issues that pertain to DEI. This initiative is truly about finding ways to use our industry’s amazing talent, hearts, and minds to make a difference. Our agencies will benefit as we start executing and creating opportunities, educating, training, and developing the next generation. My hope is that we will look back in ten years at our industry and marvel at a new generation of young talent that we hire today that includes diversity that can continue to create solutions for our clients and true opportunity for this tremendous young talent to flourish in our industry. Please reach out to me with any questions, concerns, or ideas you have for implementing your own plan. I’m happy to have a discussion with you.

2. Scholarships - A scholarship program is now available. Limited to diverse individuals or agencies hiring an unlicensed person that meets the qualifications, the following offerings are included in this program: 1. One free Prelicensing class for the new producer/CSR. 2. Reimbursement for passing test and initial licensing fee. 3. New Hire Training Program through New Level Partners/ COMBINATION BUNDLE- Commercial Lines and Personal Lines Coverage Basics (41 courses) 4. EDGE Conference Access for 2 years

George Daly - IIA of IL President - (708) 845-3311 - george.daly@thehortongroup.com may 2021

insight

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Premium Fund Trust Account (PFTA)– Commission Withdrawal Guidance The easiest way to comply with Title 50 IL Adm. Code 3113 (PFTA rule) is to move all of your accounts to direct bill. Article over. Just kidding. However, this rule is as antiquated as they come and the Association (Phil) has been working with the Illinois Department of Insurance (IDOI) to modernize the rule for too many years. When I was at the IDOI approximately four years ago we had an agreed upon rule with industry but it got caught up in the bureaucratic process. The re-write sat idle until I joined the association and we reignited discussions to modernize this rule while still providing the consumer protections of the current rule. We hope to have movement on this in the near future. The common misconception is that this rule protects the consumer. False (As Dwight Schrute would say). The law (which supersedes any rule) 215 ICS 5/500-115(b) states “An insurer that issues a policy of insurance shall be deemed to have received payment of the premium if the insured paid any insurance producer requesting the coverage. The insurer shall be responsible to the insured for any return premium.” Basically, payment to the agent is payment to the insurer. So, the PFTA rule is a protection for the insurers not consumers as once they pay the agent the insurer is on the hook so to speak. This would not count if a producer was committing fraud and claimed to be collecting premium for an insurer that for which they never applied for insurance. That scenario is an entirely different matter and would most likely guarantee that your license would be revoked. Throughout my career at the IDOI investigating agents, the most common violation of the PFTA Regulation I found was regarding commission disbursements. Matter of fact there may have been a handful out of the hundreds of exams that I performed that complied with this part of the PFTA rule. This also is the most common way agents become out of trust. I do not know of any agency management system that completely complies with the PFTA rule when it comes to commission disbursements. Illinois is the only State that has this strict of rule and many States envy Illinois’ PFTA rule. This could be why Illinois has fought so hard to keep the rule. The big hurdle with the PFTA rule is documenting each commission withdrawal with premiums previously deposited into the PFTA. If you are withdrawing even commission amounts such as $5,000, it is hard to prove whose premiums those commissions represent. The majority of agent and agency exams I performed took commissions in this manner. The rule further states in part, “If the disbursement is a commission payment to the licensee or another licensee, the disbursement shall be supported by a written record of the following: A) Name of insured; B) Policy number; C) Gross premium; D) Commission rate; E) Net commission (Equals the amount of the PFTA check); F) Check number to which the written record applies.” This should make it clearer as to how it is hard to comply with the current Brett Gerger PFTA rule. may 2021

Part 1 of 3

A common pitfall is that you take the commission you think you are entitled and an insured provides you a check on an account that has insufficient funds (bounced). You should, theoretically, take less commission than you took because the insureds’ premium check that bounced wasn’t technically funds deposited.

B r e t t ’s 2 Sense

So, let us get you complying with the current PFTA rule with six easy steps: (1) When you receive your account current, screen shot or scan it. (2) Prior to payment to the insurer ensure that all premiums collected have cleared the insureds’ accounts. (3) Pay your account current on or before it is due and write a check or transfer your entire commission amount to your operating account. (4) Take a screen shot of the check or the transfer. For example, your account current says you are due $5,647.93, you then move $5,647.93 to your operating account. (5) Put all the screen shots or scans in a folder on your system labeled “commission withdrawals.” (6) Write out your procedures indicating the steps that you have taken especially that you have ensured that all of the premiums have been confirmed deposited. Should you run into issues such as consumer checks that have bounced, make note of it and reduce your commission check accordingly. If you keep paper, instead of screen shotting, just print off all previously mentioned steps and put in a folder labeled “commission withdrawals.” We should have a discussion about why you’re still not as paperless as you can be. Your account current will contain the majority of the requirements: name of insured; policy number; gross premium; commission rate; and net commission. Your documentation of the check or transfer will contain check number to which the written record applies and you verifying that insureds’ checks have cleared will meet the premiums previously deposited requirement. These processes will meet all IDOI PFTA rule requirements for commission withdrawals and give you the peace of mind should the IDOI examine you or your agency. Should you have any questions regarding PFTA rule compliance, do not hesitate to reach out to me directly. As always, this is just Brett’s 2 Sense and I hope it was helpful. If you need any clarification or have any suggestions for future articles, please email me at bgerger@iiaofil.org.

| IIA of IL Director of Education & Agency Resources bgerger@iiaofil.org | (217) 321-3006 insight

may 2021

insight

INSIGHT | industry

US P&C Rate Increases Continue in First Quarter 2021 Umbrella, D&O and EPLI Lead the Way Underwriters continue to push rates across the board, with umbrella, D&O and EPLI leading the pack with double digit increases. Larger accounts are priced modestly higher than medium and small accounts. Habitational and transportation industry groups reflect the highest rate increases. Even work comp rates were up at plus 1.7 percent. As anticipated, energy rates increased more aggressively in the first quarter. Richard Kerr, CEO of MarketScout, noted, “Because the property market is so large, the composite rate is tempered by placements across the US. In CAT prone areas, rates were up significantly more than the composite rate of 8.6 percent.” In describing the overall market, Mr. Kerr added, “We expect rate increases to continue for the remainder of 2021.” The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.

By MarketScout

For detailed rating analysis or market projections by industry class, coverage or account size, contact Vilma Scott at vscott@ marketscout.com. MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. The firm is a Lloyd’s Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues.

A summary of the first quarter 2021 rates by coverage, industry class and account size is set forth below.

insight

may 2021

industry | INSIGHT

Big ‘I’ and Future One Release 2020 Agency Universe Study COVID-19 Impact Findings

Special report reveals how the coronavirus pandemic affected the independent agency system. One-quarter of independent insurance agencies report COVID-19 had a significant impact on their operations, revenue and commercial lines customer base, according to the 2020 Agency Universe Study COVID-19 Impact Summary. Future One, a collaboration of the Big “I” and leading independent agency companies, has released key findings from the recently completed Agency Universe Study. Due to the coronavirus pandemic and related shutdown orders in 2020, the study was halted in its traditional fielding time in March and re-started in September. The 2020 study included survey questions related to the coronavirus pandemic, released as the COVID-19 Impact Summary. “Independent agents and brokers emerged as truly essential anchors in their communities during the challenges of 2020, helping their clients and neighbors find security and peace of mind even as they themselves were impacted by the uncertainties,” says Bob Rusbuldt, Big “I” president & CEO. “The 2020 Agency Universe Study highlights how agencies can best tackle the continued obstacles and trends in the post-COVID-19 world.” The COVID-19-focused section of the study looks at the pandemic’s impact on operations, revenue, staffing, strategies and carrier relationships. “The study uncovered some key areas in which independent agencies need further support, including finding new business opportunities and offering digital tools and servicing,” says Madelyn Flannagan, Big “I” vice president of agent development, education and research. “As the Big ‘I’ continues supporting its members, we look forward to partnering with the brightest minds in the industry to provide the critical resources, tools and solutions needed to adapt to the current business environment.” Key findings from the 2020 Agency Universe Study COVID-19 Impact Summary include: • Small and newer agencies took the brunt of COVID-19’s impact. About one in four agencies report COVID-19 had a significant impact on their operations, revenue and commercial lines customer base. The pandemic was more likely to impact the revenue of small agencies (34%) and newer agencies (32%). • Absence of disaster recovery plans belies preparedness perception. Nearly half of respondents believe their agency was well-prepared to deal with COVID-19’s impact on their business—despite only 1 in 20 having a disaster recovery plan that included pandemics. Smaller agencies were least prepared to deal with the pandemic at 33%. Nearly half of those with a plan will modify it, but only 1 in 5 without a plan expect to create one. Newer agencies are less likely to have had a disaster recovery plan (22%). may 2021

• Building an online presence is crucial. Going forward, building an online presence for marketing and implementing or improving online business tools are the most important factors in succeeding in 2021. Building a digital presence is more important for small (65%) and medium-small (61%) agencies. Jumbo agencies cite implementing or improving home-based tech for remote workers (46%) and developing strategies for opening the office safely (29%) as important. Newer agencies are more likely to cite building an online marketing presence as important (80%). • Independent agencies need support with business opportunities and digital tools. Top areas needing support because of the pandemic are finding new business opportunities and offering digital tools and support with digital servicing. Small agencies are more likely to need support with handling personal lines clients’ calls and service requests at 23%, while jumbo agencies are more likely to need support leveraging risk control services to identify new areas of exposure due to the pandemic (23%) and providing guidance about the crisis and coverage (28%). Newer agencies are more likely to need support with finding new business opportunities at 56%. The 2020 Agency Universe Study is the fourteenth in a series that was first conducted in 1983. Since 2002, the study has been completed biennially. Since 2004, the Agency Universe Study has relied on internet data collection. In total, 1,437 respondents were included in the 2020 study, conducted by Zeldis Research in cooperation with Future One. To order a copy of the 2020 Agency Universe Study Management Summary or the COVID-19 Impact Summary, providing an overview of the highlights from the complete study, visit the Big “I” Agency Universe Study webpage at www.independentagent.com/research/ AgencyUniverseStudy/agency-universe.aspx. In addition to the Big “I,” the Future One coalition includes the following company partners: Allstate/Encompass, Amerisure, Central Insurance Companies, Chubb, CNA, Foremost, Grange Insurance, Hartford Steam Boiler (HSB), Liberty Mutual Insurance/Safeco, Nationwide, Progressive, Selective, The Hanover Insurance Group, The Hartford, Travelers and Westfield Group. In response to the coronavirus pandemic, the Trusted Choice® COVID-19 Relief Fund provides critical relief to independent insurance agencies and brokerages, owners and employees experiencing significant economic disruption or financial distress as a result of the COVID-19 pandemic. Since April 2020, the fund has assisted approximately over 750 agencies. Grant applications are currently being accepted at https://trustedchoice.smapply. io/prog/the_trusted_choice_covid-19_relief_fund/.

insight

INSIGHT | government

Summary: Illinois Issues Feasibility Report For Cove On July 7, 2020, Governor Pritzker signed SB1864. The legislation instructed the Department of Healthcare and Family Services (HFS), in consultation with the Department of Insurance (DOI), together known as the Interagency Working Group, to oversee a feasibility study exploring policy options to make health insurance more affordable for low- and middle-income Illinois residents. This study was designed to provide policymakers with a menu of policy options to improve health care affordability, reduce the number of uninsured residents, and improve health equity. The process was open to responses from all stakeholders, including the public by the end of February 2021. The Coalition of Insurance Agents and Broker of Illinois, of which I was a part of, representing Independent Insurance Agents of Illinois, along with the Illinois State Association of Health Underwriters and NAIFA of Illinois submitted a response. We stated our firm belief that every American should have access to affordable, comprehensive healthcare coverage and control over their healthcare choices regardless of their health status, income, or pre-existing conditions. We also explained the critical role Agents and Brokers play in helping individuals and businesses with carrier and plan negotiation and selection, member enrollment and education, claims advocacy and more. In preparing our response we met with many stakeholders including representatives from hospitals, physicians, pharma and insurance carriers. We also met with NAHU and Big I National representatives who introduced us to other states who experienced or were in the middle of similar state actions. This provided a great base for our response. After review of the responses, the Interagency Working Group released their Feasibility Study Report on April 2, 2021. They identified six policy options for inclusion in the study, each of which were considered separately, but could be pursued in various combinations. The Working Group directed Milliman to model outcomes. Milliman did a very good job with their review in illustrating the pros and cons of each option and provided cost forecasts on several models. From my reading, it appeared no one option would solve the problem in full, that is, reduce the number of uninsured, increase affordability and improve health equities, but the study did suggest the pairing of options could help and at least produce lower costs.

A summary of the Feasibility Report follows: Overarching goals of the plan: - Reducing the numbers of uninsured - Increasing affordability, and - Improving health equity

insight

The following priorities were to be considered: - Improving affordability in terms of both premiums and cost-sharing - Aligning with existing systems and programs - Leveraging federal funding and - Minimizing market disruption The Interagency Working Group identified 6 policy options for inclusion in the study: 1. Basic Health Program (BPH) – In lieu of Marketplace coverage for individuals with incomes up to 200% of FPL who otherwise be eligible for federal Advance Premium Tax Credits (APTCs). i. Currently two states, Minnesota and New York have implemented a BHP. 2. State Premium and Cost Sharing Subsidies – States may build on the federal government’s APTCs and CostSharing Reductions (CSRs) by funding subsidies to lower premiums and / or cost-sharing for Marketplace enrollees. i. Currently five states, California, Colorado, Massachusetts, New Jersey, and Vermont have committed state dollars to provide premium subsidies or premium and cost sharing subsidies for individual market health insurance. 3. Public Option Plan – A government-backed health plan which would compete on the Marketplace with private health plans. The public option may reduce costs through lower administrative costs and / or by paying lower provider prices. i. The state of Washington implemented a public option plan and several other states are considering legislation to create one. 4. Medicaid Buy-In – The state would make Medicaid, or Medicaid-like, coverage available to consumers who are not otherwise eligible. The plan would reduce costs by leveraging a state’s existing Medicaid infrastructure and lower provider reimbursement rates. The targets could be narrow (only those up to 400% of the FPL who are ineligible for federal premium tax credits), or broad (anyone not already eligible for Medicare, Medicaid or CHIP). No state has implemented a Medicaid buy-in program, but it is being studied by several. 5. Transitioning to a State Based Marketplace – Illinois could take over responsibility for operating the Health Insurance Marketplace from the federal government. The state would run the eligibility and enrollment, consumer outreach and assistance, and plan management functions. Several of the above proposed policies would benefit from, if not require the state to transition to a State-based Marketplace. 6. State Supported Marketing and Outreach – The state could increase its investment in outreach, education and enrollment assistance to consumers eligible for Marketplace coverage and / or Medicaid. Milliman was directed to provide a study that showed the impact of four of the six policy options. They were also directed to estimate the state’s cost of funding each program. The study was done reflecting a 7.1%

may 2021

| government | INSIGHT

overage Affordability Initiatives By Michael E. Wojcik unemployment rate in calendar year (CY) 2022, with each policy independently modeled. The Milliman Study revealed the following: There were 906,000 non-elderly uninsured in Illinois with 330,000 being eligible for Medicaid, but not participating. Of the 906,000, 546,000 had a household income up to 200% of the Federal Poverty Level (FPL) and 260,000 had household incomes greater than 200% FPL. Administrative costs to implement and operate a state plan were not determined in this study. Results: 1. Basic Health Plan. The Minnesota Model showed 135,000 would potentially enroll, most with a lower premium. However, the uninsured population would only decrease by approximately 23,000. New York’s model showed 139,000 would potentially enroll, most with lower premiums, and the uninsured population would only decrease by 27,000. The Zero Premium model used by New York’s Essential Plan was more generous and would produce lower premiums to members. An expected 188,000 would enroll with 72,000 being newly uninsured. Each model was expected to produce a comparatively large reduction in uninsured documented immigrants. All BPH options were projected to reduce premiums for nearly all enrollees, regardless of race, ethnicity, or geographic differences. Milliman estimated if BHP provider reimbursement rates were held to Medicaid levels, the combination of federal funding and enrollee contributions through premiums and cost sharing would be sufficient to fund the cost of coverage for the program in CY 2022 based on a steady state of enrollment. 2. State Premium and cost-sharing Subsidies. Milliman was asked to model four of the six variations of a statefunded coverage subsidy program: • Massachusetts model: Would provide premium and cost-sharing subsidies to enrollees with household incomes up to 300% FPL. • No FPL limit: This option would provide premiums subsidies to otherwise eligible individual with household incomes above 400% FPL. • California model: Would provide premium subsidies to federal APTC-eligible enrollees with household incomes from 200 – 400% FPL, and to otherwise eligible individuals with household incomes ranging from 400-600% FPL. • House Energy & Commerce Committee (HEC) proposal: Would provide premium and cost-sharing subsidies to federal APTC-eligible enrollees with household incomes up to 400% FPL, and premium subsides to otherwise eligible individual with household incomes above 400% FPL. Milliman estimated each subsidy program option would increase enrollment in comprehensive individual market coverage relative to existing policy. The HEC model would produce the largest increase in enrollment among individuals currently uninsured projecting a pick-up of

may 2021

106,000. The HEC model would also generate savings for the largest number of enrollees: about 423,000 would experience lower premiums and roughly 248,000 would see reduced cost-sharing. The estimated program costs for CY2022, excluding administrative costs, were projected to be $113 Million for the California model and $796 million for the HEC model. 3. Public Option Plan. Three scenarios for a public option were studied: 1) If there was a 10% reduction in premium for the Second Lowest Cost Silver Plan (SLCSP), Milliman estimated a 6,000 uninsured pick up; 2) a 20% reduction: 13,000 pick-up and 3) a 30% reduction: 20,000 pick-up. Over 85% of the additional enrollment would come from people with a household income over 400% of FPL who do not qualify for Marketplace APTCs. It was determined the public option plan would not play a significant role in reducing racial and ethnic disparities in uninsured rates as the new plan would benefit those with income greater than 400% of FPL, who are disproportionately white. Milliman also pointed to a potential risk around provider reimbursement levels and premiums to spur competition without prompting insurer exits from the Marketplace. 4. Medicaid Buy-In. Two broad eligibility variations were studied: a. Targeted Buy-In: Illinois residents not already eligible for Medicare or comprehensive Medicaid coverage, and up to 400% of FPL who are either an undocumented immigrant or in a family glitch would be eligible for this buy-in program. (Family glitch is defined as individuals with an affordable offer of employer-sponsored insurance would not be eligible for APTCs, regardless of whether they enrolled in such insurance), b. Broad Buy–In, Basic: All residents not already eligible for Medicare or comprehensive Medicaid coverage would be eligible, including those currently eligible for Marketplace subsidies and employer-sponsored insurance. Premiums would be 30% lower than assumed CY2022 premiums for the SLCSP, with premium contributions capped consistent with the federal maximums based on household income. c. Broad Buy-In, Balanced: Same as Basic, but cost sharing would be set up to 300% FPL, consistent with Massachusetts plan. Milliman estimated 535,000 Illinois residents would be eligible for the targeted buy-in option. Approximately 60,000 individuals of the approximately 187,000 uninsured who are eligible would gain coverage. For the broad buy-in options Milliman estimated that approximately 6.2 million residents would be eligible. Of the estimated 580,000 eligible uninsured, Milliman estimated that approximately 72,000 or 12% would enroll in the Basic version and approximately 146,000 or 25% would enroll in the Enhanced version.

continued... insight

It shouldn’t take a six-by-six barn beam crashing through your customer’s bedroom wall to find out who you can trust.

BUT SOMETIMES IT DOES. And that’s the Silver Lining®.

| government | INSIGHT Undocumented immigrants would experience the largest reductions in unisurance rates across all three Medicaid buy-in variations, ranging from 30-40%. The Hispanic/ Latino population would see significant declines from 1025%, while Black or African Americans would see smaller declines, with only 2% in the Targeted and Broad Basic and 7.6% under the Broad Enhanced program. An approved 1,332 waiver would make federal passthrough funding available for the broad Medicaid buy-in models. Milliman estimated state costs, including off-sets from federal pass-through funding to be approximately $289 million for the cost of the targeted buy-in coverage. For the broad-Basic buy-in option, a cost of approximately $274 million was estimated, and for the broad Enhanced option, a state cost of $1,052 billion was estimated. These estimates did not include state administrative costs. Milliman Benefits and Risks of a Medicaid buy-in program: The study indicated both the targeted and broad Medicaid buy-in programs would directly benefit populations identified by stakeholders as in need of intervention, including undocumented immigrants and individuals caught in the family glitch with incomes up to 400% FPL. The broad Medicaid buy-in program runs the risk of siphoning away a significant number of individuals currently enrolled in the individual market and could destabilize the Marketplace. Additionally, with approximately 80% to 85% of enrollees in a broad Medicaid buy-in estimated to transition from individual or employersponsored insurance, where provider reimbursement is significantly higher than Medicaid, some providers may be unwilling to voluntarily participate in a broad Medicaid buy-in at Medicaid reimbursement levels. Transitioning to a State-Based Marketplace: Marketplaces were designed to help organize insurance markets, promote competition, and help consumers more effectively compare their health plan options. The Illinois Marketplace has been run by the federal government since November 2013. In that time, the Illinois DOI has overseen Marketplace plan management functions. In recent years, several states have transitioned, or are considering a transition from Federally Facilitated Marketplaces (FFM) to a State-Based Marketplaces (SBM). In the transition several have benefitted from significantly lower start-up costs and have been able to generate savings that could help subsidize other affordability initiatives, such as reinsurance.

Conversely, the Milliman study showed a Broad Medicaid buy-in option could provide a disincentive to transition to a full SBM. If significant numbers of Marketplace enrollees shift to the buy-in programs, it would likely result in a smaller pool of enrollees in the Marketplace, which in turn means a smaller base from which to finance operations. SBMs would be required to administer marketing and outreach including a “navigator” program. The study stated investment in such consumer assistance and marketing efforts have been found to improve both the size and health of the individual market risk pool. In Illinois, being that more than two-thirds of the uninsured population, including most uninsured individuals at lower incomes and the vast majority of uninsured Black residents are already eligible for subsidized coverage through Medicaid / CHIP or the Marketplace, this could produce substantial outreach in a manner that increases health equity. Assessing the Menu of Policy Options: Considerations for Illinois. Milliman concludes all of the policy options modeled for this study were projected to reduce the number of Illinoisans without insurance and / or make coverage more affordable for enrollees, compared to existing individual market health insurance options. They found most options would do both. The outcome and cost to the state would vary significantly by policy. The distribution of gains, by income level, race, ethnicity, immigration status, and geography, would also be different across options. It was also noted, if the state combined policy options, and considered Section 1332 waiver opportunities, it could enable the state to realize benefits from multiple policies with comparatively lower costs. Given that the report was issued with less than six weeks remaining in the General Assembly’s spring session, we understand it is unlikely for the General Assembly to act on any of the options before they adjourn in late May. To view the full report, go to https://insurance.illinois.gov/ Reports/04-02-21-Feasibility-Study-Report-Final.pdf. Michael Wojcik is Senior Vice President for The Horton Group and former IIA of IL board member. He is a long- time benefits specialist on the IIA of IL Government Relations Committee is currently the IIABA Healthcare Liaison. Wojcik can be reached at mike.wojcik@thehortongroup.com.

Several policy options show the feasibility study would be best optimized if the state had its own Marketplace. In particular, having an SBM would ensure a more seamless consumer experience if the state implemented state-funded premium and / or cost-sharing subsidies. A public option with priority placement on the Marketplace website would help drive a campaign targeting the uninsured.

may 2021

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LEADING

GENERATIONALLY DIVERSE TEAMS By Alyson Van Hooser Incredible leaders of diverse teams at work need to understand the stories from their people, not just the statistics about them. There are answers in their stories that you’ll never get from statistics alone. Let’s dig into the information you need to make the best decisions when it comes to engaging your people. How To Lead Diverse Teams At Work I work with new leaders to develop them to achieve higher performance through education and training. During a session this week, the conversation turned in a direction I wasn’t planning for - but I’m glad it did! A leader in the room raised their hand and said something to the extent of I have some employees that don’t like 18

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having conversations with people. That’s a generational problem, right? The leader wasn’t wrong, but they weren’t right either. With the most diverse workforce to date, understanding your people in a way that will help you lead them to achieve the best results is not easy. What is easy…is not gathering information from all the right sources and assuming or predicting incorrect root causes of issues. Science Gives You A Starting Point It’s very common for assumptions to be made about people. How could you not?! Everywhere you turn headlines are screaming information at you about may 2021

your employees from work schedule preferences to communication preferences, etc. Research conducted on people can be extremely helpful in creating a solid starting point for leaders. The results can help you better recruit, assign roles, and establish a baseline for leadership within the organization. However, when it comes to your employees, that same research can lead you the wrong way fast. Science May Give You Incorrect Information Here’s one example: Let’s say your organization does some form of personality testing to determine what position a person is best suited for. The results come back and say that Craig has a rugged personality and prefers to work independently. Instead of placing Craig in a public-facing leadership role, you decide the best fit for him would be a role where he could work more independently and under a leader with a blunt communication style. Six months into the newly assigned role that seemed perfect for Craig - he quits. Why? Because Craig answered the questions on the personality test based on his default. The test couldn’t tell you that Craig has learned, despite his default and through his experiences, to work best with others and under a very gentle leader. Craig left your company to find a position where he could work closely on a team under a very gentle leader. At this new company, Craig is killing it in every way! You missed out on a high performing employee because you only knew what statistics could tell you about Craig, not the real stories that have shaped Craig. Stories Give Accurate Clarity More than ever before, incredible leaders need to understand the stories from their people, not just the statistics about them. There are answers in their stories that you’ll never get from statistics alone. Research may have you believe that many young people don’t prefer face-to-face communication. However, you might be hiring a 21-year old that prefers face-to-face communication over any technological option. If you operate off of the statistics you’ve read, without learning about your people individually, then you potentially risk losing very high performing employees.

iia of il

Statistics may have you believe that older generations prefer to work very independently. If you avoid working with them on projects because you think they want to work alone, you risk losing the opportunity to learn from them and help fulfill their desire to teach young leaders. Research may have you believe that your Millennial candidate is entitled, but they’ve been the person who worked to raise themselves from the time they were a child. Stories Can Be Hard to Learn People are shaped by their experiences, regardless of what the statistical majority says a person should be like. This is why learning the real stories about your people is so important. You need to learn where they came from, how they were raised, nitty-gritty stories about their daily worklife experiences. But that can be difficult, right? In order to learn those stories about your people, they have to trust you enough to open up and you have to put in the time and effort to listen and dissect what you learn. That’s not easy, but it is necessary if you want to learn how to motivate, engage, and ultimately lead your people to greater success. Leaders of Diverse Teams At Work Need to Understand Statistics & Stories Understanding the value of BOTH statistics and stories is the first step to action that leads to improved leadership results. Think about this today: 1. Can you block off more time on your calendar to spend with your employees in order to build trust and learn more about them individually? It may prove extremely valuable when it comes to employee retention issues! 2. What stories do you have about yourself that would help your employees understand and work with you better? It only takes one story to start breaking down walls and ceilings! Leading today’s diverse teams at work may be more difficult than ever. Stories unlock answers for leading the best way. I can’t wait to hear how you use both science and stories to improve your leadership! Allyson Van Hooser is a leadership keynote speaker, trainer on Millennials, Gen Z and Women in Business.

Alyson Van Hooser October 5-7 2021

Keynote Speaker

Alyson Van Hooser is a Leadership Keynote Speaker, and Trainer on Millennials, Gen Z & Women in Business. With the grit that only comes from tough experiences, Alyson has learned a thing or two about personal and professional success. From her management experience with Walmart, as an elected city council member, bank manager - all before the age of 30 Alyson has wisdom well beyond her years! Her podcast, Stake: The Leadership Podcast, offers a fresh perspective on leadership and helps multiple generations successfully work together! Connect with Alyson on LinkedIn and Instagram. Look for details on Alyson’s keynote session at CONVO 2021, coming soon to ILConvention.com. may 2021

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INSURANCE PROGRAM MANAGERS GROUP CLAIMS MANAGEMENT SERVICES

IN THE WORLD OF INSURANCE, CLAIMS DO HAPPEN. IPMG’s Claims Management Services division (CMS) is that partner. As a full-service claims management company, IPMG CMS accepts the responsibility and expects to be held accountable for the results we achieve on behalf of our clients.

SERVICES AND RESOURCES: » » » »

» » » » » » » » » »

Workers’ compensation claims management Property and liability claims management Auto liability and physical damage claims management Professional liability claims management » Strong emphasis on public entity and long-term care sectors Nurse case management Risk management/loss control Medical bill review Pharmacy benefit management Aggressive litigation management Utilization review Electronic claim reporting with immediate acknowledgment and adjuster assignment 4-hour assigned adjuster contact on every claim Online claim review including adjuster notes and financials Industry leading analytics with national database for benchmarking purposes

INTERNAL QUALITY CONTROL AND COST CONTAINMENT PRACTICES: » Adjuster book of business analysis – to ensure workload does not affect service levels » Closing ration analysis – a monthly review to ensure adjusters are achieving maximum production » Claims diary tracking » Formal litigation handling guidelines and practices » Comprehensive medical bill review – average 59% cost reduction » Pharmacy benefit program – average 35% cost reduction » ISO claims search » Medicare section 111 data reporting and compliance

For more information please contact:

MIKE CASTRO

BOB SPRING

Sr. VP, Claims Management Services Mike.Castro@ipmg.com 630.485.5895

VP, New Business Development Bob.Spring@ipmg.com 630.485.5885

e INSIGHT -

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

M AY 20 21

INSIGH T

NEW PECT IVES

PERS

INCREA CREA SED TIVITY

INCREA SED PROF ITS

LOW EMPL OYEE TURN OVER

MOR INNOVA E TIONS

INCL USIO BETTER DECISI ON MAKIN G

BETT REPU ER TATION

Five T BE MOhings Anyon RE INC e LUSIV Can Do to E Content Marke ting th at Mat Illinois ters CoveragIssues Fe e Affor asibility R dabilit y Initiaepor t For tives

SUCC

HIGH ENGA ER GEMEN T

ESS

HIRING RESU LTS

PROB LE SOLV M ING

In this month’s e-Insight. may 2021

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What is diversity? The presence of difference.

What is inclusion? Making sure that difference counts.

INCLUSION

SUCCESS

Sexual

Gender

Racial/ Ethnic 22

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Religion

Orientation

Generation/

Age

Socioeconomic

Physical Disability

Education Level

Source: Raven Solomon presentation to Association Forum December, 2020

may 2021

Summary Findings from IIA of IL

DIVERSITY, EQUITY, AND INCLUSION SURVEY By Dr. Leroy Nunery, II

The following information has been reviewed and summarized from the Independent Insurance Agents of Illinois (IIA of IL) 2020 Diversity and Inclusion Survey distributed by the Association to a subset of its membership to gauge how independent agents in Illinois are addressing changing demographics in their respective markets, and how they are incorporating diversity, equity, and inclusion practices within their organizations. There is a significant, indelible pattern of individual ownership of the responding agencies. It is clear that in order to achieve overall success in adopting Diversity, Equity, and Inclusion (DEI) as operating principles for IIA of IL, then the receptivity of owners/operators to implementing DEI practices in hiring, training, customer acquisition, and community engagement is essential. This is truly a personal mission. Agency Ownership and Longevity The survey found that approximately 77% of agencies that responded had been in business at least 15 years, with 72% of those having been in business for more than 20 years, indicating longevity and sustainability of the agencies. Just under 12% of the respondents have been in existence for less than 2 years. Such a high percentage of veteran participants signifies the “stickiness” and persistence of those who join on, and once they build good books of business, they stay engaged. This result seems to reflect an accumulation of experience in agency operations and the resilience of their agencies, regardless of economic cycles. In addition to the agents’ longevity, this response may also be indicative of high customer retention rates: Once established, even if the agency remains relatively small, there appears to be a sustained capability to serve customers and markets. We think ownership structure is a very strong indicator of how DEI is perceived, communicated, and implemented, i.e., how agency ownership – especially in light of multiple years of experience - may be navigating changes in markets served, diversity of client mix, etc. The survey also found that more than half of respondents had a premium volume of under $3.5 million and nearly 70% of agencies surveyed had a single owner. Recruitment Into the Industry It appears obvious that ownership and operation does not require an advanced degree and seems to support the supposition that control of many of the agencies were through family or network connections. Forty-six percent of the single owner agencies reported having college educated leadership, followed by 26% with high school diplomas, and 14% with associates degrees. This result may 2021

may enable the Association to promote opportunities for independent agency ownership to individuals who may not have previously considered insurance or agency operation as a career option, believing that education was a barrier. Certainly, having an advanced degree (postsecondary) should be seen as a huge advantage, but it is clear that longevity in the business is not totally dependent upon educational attainment. Therefore, regardless of academic concentration or degree status, pursuit of an independent insurance agency could be presented as a viable and sustainable career options to women, minorities, Millennials, and Generation X’ers, among others. Thirty-one percent of agency owners that responded entered the business through a family, friendship or business connection. College recruitment and advertisement did not generate the kind of interest that might be expected, which substantiates the assumptions that introductions and acculturation to insurance, building careers, and even transfer of ownership most often hinge upon close, personal networks. It is conceivable to conclude that having prior knowledge about opportunities in insurance and independent agencies is an essential factor in one’s decision to join and remain engaged. Thus, if we correlate this sub-question with other demographics and background questions, unless there are intentional efforts to present opportunities to underrepresented/ minority potential owners, diversity among independent agents will be difficult to achieve. Unsurprisingly, “word of mouth” Is the most widely used approach to identifying talent, with 88% indicating this method as their primary vehicle. Employee referrals and personal outreach (55% and 45%, respectively) were the next most effective approaches. These results indicate that in order to expand the reach of independent agencies to diverse talent, particular and intentional effort of agency owners will be necessary. Employee referrals are mostly deemed as continued...

It is clear that in order to achieve overall success in adopting Diversity, Equity, and Inclusion (DEI) as operating principles for IIA of IL, then the receptivity of owners/operators to implementing DEI practices in hiring, training, customer acquisition, and community engagement is essential. insight

effective methods to identify talent. The strength of referrals points to how important are connections to owners and/ or prior knowledge of the underlying business. It stands to reason that these responses demonstrate potential obstacles to diversity, if current employees have limited exposure to individuals who live in or experience different backgrounds and could be automatically ruled out as potential candidates. Internships are an important recruiting feature (a combined 42% indicating that they matter a “great deal” and “a lot”), but they are not universally perceived as such. It would be worthwhile to explore how interns are identified, and what type of training or development they receive on the job. It is possible that internship programs could be a vital way to identify younger, more technologically adept, and more diverse potential talent. Markets Served The top three minority markets or communities served by respondents were: African American, Latino/Hispanic, and Asian. While a number of agencies indicated that their markets had not changed over the last five years, some respondents were adapting their marketing and wrote comments such as, “We added a minority partner and [are] marketing to specific races and ethnicities” and “Definitely more diverse racially and ethnicity”. So, while many respondents are continuing to serve similar customer profiles, some are actively responding to the demographic shifts. We think that there are opportunities for peerlevel training, market development, information-sharing (e.g., Association meetings), and direct consultation if the adaptive approaches are successful. Strategies shared in the survey comments included translation of collateral materials and proposals to other languages such as Polish and Spanish. One agency, located in a community that is almost 50% Hispanic, has embraced that market and is successful in obtaining new business primarily from referrals from existing customers. Another agency joined the local LGBT Chamber of Commerce to support and develop their network in the community.

When asked if customer needs or buying approaches are different than in the past, 57% of respondents answered, “no.” However, 43% of respondents acknowledged changes such as younger consumers purchasing through apps and an increase of online purchasing, thus some consumers no longer relying on an agent as a trusted advisor. Use of comparative raters without considering diversity and systemic racism impacting access to technology were cited as concerns for some minority clients. Some agencies are adapting to the use of apps to appeal to tech-savvy customers while others are pairing producers from different generations to provide a well-rounded experience with multiple perspectives on communication and technology. We have incorporated the survey above in order to facilitate the reader’s understanding of the respondents’ opinions and perspectives. There are viable program ideas which could be developed to advance the association’s DEI initiatives, mostly focused on training and exposure. Opportunities identified include: - Developing or identifying new talent - Internship programs - Perpetuation training - Insurance market access/company contracts - Peer-level training - Information-sharing (e.g., Association meetings) - Direct consultation These areas will require a great deal of coordination, but the state association has an opportunity to not only promote diversity equity and inclusion, but also expose more individuals to the long-term positive aspects of careers in the industry. Dr. Leroy Nunery, II is Founder and Principal of consulting firm Plūs Ultré and author of the study, The Journey of An African-American Insurance Professional.

10 Benefits of Workplace Diversity Variety of different perspectives from employees with diverse backgrounds.

NEW PERSPECTIVES

Your company becomes a melting pot of new fresh ideas.

INCREASED CREATIVITY

Different backgrounds and ideas spark innovation.

MORE INNOVATIONS

Creative diverse workforce brings financial benefits.

INCREASED PROFITS

Workplace Diversity

HIGHER ENGAGEMENT BETTER DECISION MAKING LESS EMPLOYEE TURNOVER BETTER REPUTATION

HIRING RESULTS PROBLEM SOLVING

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Employees who feel appreciated become more engaged. More potential solutions incrase decision making within the team.

By having employees feel accepted and valued, you will decrease turnover. Good, human and socially responsible companies build stronger reputations.

Strong reputation and employer brand turns company into desirable place to work. Diverse solutions can bring the best results faster.

Source: TalentLyft may 2021

Mega Trends Reshaping the Environment and Influencing Business Priorities Source: Raven Solomon presentation to Association Forum December, 2020

Diversity of Markets The growing middle class in emerging markets is causing a shift in consumer demand.

Diversity of Ideas Digital technology, hyper-connectivity, and deregulation make innovation more important than ever.

Trend 1

Trend 2

Trend 3

Trend 4

Diversity of Customers An increasingly diverse customer base expects better personalization of products and services.

Diversity of Talent Shifts in age profiles, education, migration flows, multi-ethnicity and expectations impact the mix of our most valuable resource.

These results indicate that in order to expand the reach of independent agencies to diverse talent, particular and intentional effort of agency owners will be necessary. may 2021

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5 Things ANYONE Can Do to Be More Inclusive By Raven Solomon When I thought about writing this piece, I originally intended it to be “5 DE&I Focused New Year’s Resolutions Anyone Can Make.” Then I did a little research and found that less than 5% of Americans actually stick to all of the New Year’s Resolutions they make. Aside from feeling personally attacked (It is me. I am admittedly in the 95%), I did not want to contribute to the list of great-sounding things that 95% of us will not follow through on. I, instead, wanted to give everyone… anyone… 5 things you can do every day to practice inclusive and equitable behavior. Learn about, and begin to check your own bias Whether you want to admit it or not, whether you know it or not, we all have biases. If you have a brain, you have biases. It is simply a part of how the human brain functions. In light of the millions of pieces of information we are bombarded with at any given minute, our brains are hardwired to take shortcuts based on a number of factors - our past experiences, our emotions, our exposure, our preferences, and more. But these shortcuts can be harmful to others, our organization, and even ourselves as it impacts how we make decisions, how we engage with others, and how we respond in certain situations. Becoming aware of your biases is the first step to managing the detrimental effects they can have on those you work with, those you serve, and the performance of you and those around you. Potential Actions: • Take a few or several Implicit Association Tests (IAT) to identify your potential areas of bias. I promise you’ll be surprised. • Learn about how bias works scientifically. Two books I would recommend are: Blindspot by Mahzarin Banaji and Anthony Greenwald and Thinking Fast and Slow by Daniel Khaneman. Other great books to learn more about bias include The Person You Mean to Be by Dolly Chugh and The Leader’s Guide to Unconscious Bias by Pamela Fuller & Mark Murphy with Anne Chow.

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• Commit to slowing down, reflecting, and asking yourself tough questions in the midst of important decisionmaking, highly emotional moments, or moments of overload and/or overwhelm. Questions like: Am I demonstrating an automatic preference at this moment? If this comment were made by someone more like me, would I listen differently? Am I truly listening with an open mind right now? Diversify your network

For many of us, our professional and personal networks often reflect our own identities, sharing key facets of who we are - our age, our race, our gender, our education level, our background, etc. This tends to feel very natural because of in-group favoritism, also known as in-group bias, and identity theory. In order to disrupt in-group favoritism and limit the inequities it can produce, one should seek to diversify the groups with which they regularly fraternize, to increase their awareness of the experiences & challenges of others and how they can potentially help. This requires work, humility, discomfort, and intention but is well worth it if you are truly committed to diversity, inclusion, and equity. Potential Actions: • Audit your network to identify areas of homogeneity. Do a spot check of those you follow and those who follow you on social media outlets like LinkedIn, Twitter, and Instagram. • Intentionally attend events and meetings to meet and build connections with people who are unlike you. Consider ERGs (employee resource groups), professional associations, and community organizations. Set aside the time and energy to truly cultivate the relationship. Consistently, actively, and intentionally ally for a marginalized community Let’s face it… there are too many marginalized groups. And simply put, that needs to change. In order for that change to happen, we need everyone active somewhere. After the awakening that was 2020 for many, maybe the Black community is the marginalized community you feel compelled and called to consistently, actively, and intentionally ally for. Maybe it is the transgender community… or women… or those who are differentlymay 2021

abled.. or the Latinx community, or the Muslim community.. or the underrepresented generation in your workplace. Sadly, there are plenty to choose from. While being an advocate for equity means we leverage our privilege to ally for any marginalized group when we witness injustice, I suggest focusing your mid-term energy, learning, and capital (social, political, financial) on really moving the needle within your circle of influence concerning one marginalized community this year. Learn as much as you can about that community’s experience, their challenges, and how you can support. Foster deeper relationships with people of that community and be a reliable, consistent, and intentional ally. Create opportunity, amplify their voices, and speak up with them. Remember, the word “ally” is a verb — an action word. Potential Actions: • Volunteer with a local non-profit organization that directly serves the marginalized community you’ve elected to intentionally ally for in 2021. You can find lists of national organizations all over the web. Identify the organization you’d like to support and search for local or regional presence. Then, show up. Show up to meetings to listen and learn. Show up and lend whatever expertise you have to help the organization accomplish its goals. Commit to making this a part of your schedule for the year. • Intentionally pass the mic to members of the marginalized community you’re allying for. In meetings at work, on social media, in your place of worship, in your conversations with friends and family, etc. What does passing the mic mean? It means spotlighting their contributions to conversations, ensuring they receive credit for their ideas, giving them space to share their experiences (should they choose), and amplifying their voices. “You know… I particularly appreciated what Jasmine said at the beginning of the call [insert what Jasmine said that everyone seemed to have forgotten]. Mentor, if possible, or SPONSOR, someone who is unlike you 71% of sponsors’ proteges are the same race or gender as them. This would not be an issue if the leadership of companies was diverse and opportunity was distributed equitably, but we know this is not so. We also know that mentoring, and certainly sponsoring, positively impacts job performance, retention, and career growth. (Click here to learn more about the difference between mentorship and sponsorship and their impact.) These facts considered, mentoring or sponsoring someone who is different than you, particularly someone of a marginalized community, can not only lead to positive results for the mentee or protegee, but for the organization and for you. Potential Actions: • See if the ERGs at your company have mentoring programs. If so, sign up! And if not, inquire about how to start one. may 2021

• Visit/call the business school or career center at an HBCU near you and inquire about mentoring opportunities. • If you are a high-level leader, ask some of your direct reports about high-potential talent within their organizations who look different than you, who you can get to know and potentially sponsor. Regularly (maybe it’s monthly) seek opportunities to increase your cultural awareness How often do you actively seek to learn about another person’s culture, norms, experiences, or traditions? How do you do so? Do you travel and immerse yourself in the culture (when we’re not in a global pandemic, of course)? Do you read, watch documentaries, or listen to podcasts? Do you have inquisitive conversations with those you’ve built a safe space with to hear first-hand accounts? All of these things can help you increase your cultural awareness but will require some humility, curiosity, courage, and intention. How about in the next year you make a point to do these things? You challenge yourself to be comfortable with being uncomfortable. You schedule it. Potential Actions: • Follow me on social and participate in my bi-weekly diversity challenges to increase your cultural awareness and potentially push you beyond your comfort zone (LinkedIn | Instagram | Facebook | Twitter) • Take the Generational View Challenge. Commit to engaging at least one person of one other generation before making your next three big decisions, personal or professional. It’s simple. Sign up here to take the challenge and to receive accountability. Diversity, equity, and inclusion can be a big space. Solving inequity can be a big task. Being more inclusive can be ambiguous. But it is the small things we do every day… the decisions we make… the things we prioritize… the people we engage with… the way we allocate our 24 hours… that moves the needle over the long-term, even if bit by bit. Imagine if every one of us did just two of these throughout the course of 2021. How much of an impact could we have? Please pass this along. Share it with your friends, family, and colleagues. Ask them to commit to doing just one or two things. Raven Solomon is a Diversity, Equity & Inclusion Speaker, Author, & Strategist who helps organizations understand generations, racial equity, and their intersection. She can be reached at info@ravensolomon.com.

Whether you want to admit it or not, whether you know it or not, we all have biases. If you have a brain, you have biases. It is simply a part of how the human brain functions.

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How to Do

DIVERSE and INCLUSIVE CONTENT MARKETING That MATTERS A content marketer searches for a stock image to accompany a blog post titled The Top 10 Business Lessons Every Young Professional in Our Industry Should Know. The first result for “business” appears:

Not so fast. Truly diverse and inclusive content – the kind that resonates consciously and subconsciously with your audience – requires far more than an image. It requires thinking more deeply, from your audience research to your team structure, from your style guide to your user experience. Why Content Marketers Should Care

Knowing the importance of diversity, the marketer scans the image. • Women? Check. • Men? Yes. • African Americans? Yes/probably. • Whites? Yes/probably. • Other minorities? Maybe. • Young people? Yes. • Middle-age or seniors? No. • Office workers? Yes. • Industrial workers? No. Satisfied with the racial and gender mix and OK with the lack of age and worker-type diversity given the topic, the marketer includes the image with the article. Now, that’s an image that will appeal to the target audience and allow the post to demonstrate the brand’s commitment to diversity. 28

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Your audience (clients) want to see themselves in your content and no single image can convey that. More importantly, they want to know that you see them – physically, geographically, psychologically, etc. They want to make sure you get their needs, their pain points, their thoughts. But your audiences aren’t always thinking about themselves. They want to see more than one type of person or voice in your content. A 2019 consumer survey by Google and The Female Quotient revealed that 64% of all respondents took some action after seeing an ad they considered to be diverse or inclusive. With some segments of consumers, that percentage was higher: millennials (77%), blacks (79%), Latinos (85%), and LGBTQ community (85%). “We found that highly relevant ads go beyond winking and recognizing diversity and inclusion … These ads enhance brand perception, increase brand effectiveness, and significantly lift purchase intent and loyalty,” Carlos Santiago, co-founder of Alliance for Inclusive and Multicultural Marketing, says in the report. may 2021

As Michael P. Krone explains in his oft-quoted piece, Diversity Marketing & Cultural Awareness: If your customers are different than you and they feel unrecognized, you will begin to lose them. Diversity and Inclusion Are Not Synonymous Rita Mitjans, ADP’s chief diversity and social responsibility officer, says: “Diversity is the ‘what’; inclusion is the ‘how’.” She continues: “Diversity focuses on the makeup of your workforce - demographics such as gender, race/ethnicity, age, sexual orientation, veteran status, just to name a few, and inclusion is a measure of culture that enables diversity to thrive. Inclusion requires that everyone’s contributions be valued.” Read Rita’s quote again and substitute “audience” for “workforce.” Then ask whether your content marketing demonstrates that your brand not only sees the importance of diversity but embraces inclusion?

By Ann Gynn

Salesforce is a great example. It even created inclusion as a segment topic in its online learning system (Trailhead) for developers learning to code for its platform. In announcing the module, called 6 Principals of Inclusive Marketing, Salesforce offered a helpful definition of what inclusive marketing is: We define inclusive marketing as creating content that truly reflects the diverse communities that our companies serve. It means that we are elevating diverse voices and role models, decreasing cultural bias, and leading positive social change through thoughtful and respectful content. In the message, Salesforce says its marketers have the responsibility to create and promote messaging that resonates with people of all backgrounds, race, ethnicity, gender identity, age, religion, ability, sexual orientation, etc. But Salesforce went even further: “(T)ruly inclusive marketing can elevate the stories and voices of people that have been typically marginalized or underrepresented, deepen connections with customers, and even influence positive social change.” Imagine what a differentiator it would be if your content incorporated voices from people who haven’t seen their faces represented or been heard in your industry. You need only look to Unilever’s Dove Real Beauty Pledge, launched in 2004, to understand the power of inclusion. Over 15 years, the campaign to appreciate women of all ages, races, sizes, etc. has evolved into a brand differentiator, one from which the company still garners positive media attention and customer praise.

How to Achieve Real Diversity and Inclusion You don’t need to view diversity and inclusion as a lofty goal or something you need to accomplish all at once. In fact, you should never be done with the topics – always keep an open and questioning mind to make sure your content reflects your evolving audience. Dig Into Your Audience While you should respect everybody, inclusion in marketing doesn’t mean you have to address groups that have no relevance or interest in your company’s products or services. For example, women would not be the primary audience for a beard-care product company. And college students would not be the primary audience for AARP. But research your audience. Look at the available data to understand representation that can be documented such as gender, income level, geography, race, etc. Then go deeper. Ask front-line team members, go to industry events, conduct focus groups in part to better understand those characteristics that are not easily tracked, such as a physical ability or a point of view. Develop or update your audience personas to ensure that they reflect the diverse characteristics that are important to your audience and/or your business. Most importantly, ensure that you don’t operate from a single, homogeneous persona. Look at Your Team How well does your team reflect the diversity of your audience? If it doesn’t, how can you make it more inclusive? I’m not suggesting you fire someone. But when you hire your next team member, first think about what characteristics and qualities are missing from your team. For example, if you’re hiring a new content creator, think about who can deliver a fresh voice or unrepresented perspective that will resonate with your audience. But you don’t have to wait for the next vacancy on your team. When you hire freelancers or contract with agencies, think about what voices they can provide that your team doesn’t have. Or be more inclusive by creating (and listening to) a diverse editorial advisory board (internal or external members) who can share ideas, react to your team’s plans, and inspire you to think differently. As Del Johnson, a principal at Backstage Capital, says in the Google research report: “The more distance there is culturally between your team and the market, the less ability you will have to execute. We all fall into particular biases. That’s why you need to have culturally competent people in the room who have the power to affect decisions. By bringing in the talents of those who have traditionally been overlooked, you unlock true creative expression - and build an organization able to check its biases.” Inclusive cultures make a difference, as detailed in this recent CMO.com article: “(A) Deloitte report noted that organizations with inclusive cultures were six times more likely to be innovative and agile, eight times more likely to achieve better business outcomes, and twice as likely to meet or exceed financial targets.” continued...

may 2021

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UFG Insurance celebrates 75 years In celebration of our 75th anniversary, we at UFG reflect on all the people who have had a hand in our success over the years. After all, our company was founded on the belief that the insurance business is a people business — and that remains at the heart of who we are today. As we begin our next 75 years, we give our most humble thanks to our independent agents. We owe our success to you. UFG INSURANCE | 118 Second Avenue SE, Cedar Rapids, Iowa 52401 | ufginsurance.com | 800-332-7977 © 2021 United Fire & Casualty Company. All rights reserved.

Edit for Inclusion

Don’t Go Overboard

Ensuring that your text reflects inclusion requires writers and editors to avoid assumptions and instead question what they know. And that often requires a major shift in thinking.

On the other hand, your brand shouldn’t try so hard to communicate that it’s “diverse” that it offends a segment of your audience. (The result is the same for brands that are too ignorant about diversity to recognize a problem.)

Prime your writers and editors to think critically when they write and to regularly use their style guides when in doubt on phrasing. Most professional style guides address diversity-related topics. For example, The Associated Press Style Guide added a new section in 2019 about racerelated coverage. It covers everything from how to reference people based on their racial identity to why you should question whether race is even relevant to include in the article.

A fairly new entry into the dictionary, cultural appropriation is “the act of taking or using things from a culture that is not your own, especially without showing that you understand or respect this culture” (Cambridge Dictionary).

The National Center on Disability and Journalism guide “covers general terms and words on physical disabilities, hearing and visual impairments, mental and cognitive disabilities and seizure disorders.” The guide also is helpful because it details the background of the topic, its recommendations, and what the AP Style Guide says about it. The important thing is to ensure that your brand’s style guide addresses the language components used most frequently and that your team members proactively ask questions so they can make the most helpful and relevant edits. Incorporate in Production But don’t stop at text when you create inclusive content. Think about elements such as navigation for people who don’t see or hear as well as others in your audience. For example, use alt-text for every digital image published. Don’t distinguish options by color only. Use captions for all videos. Include transcripts for audio or video interviews. One-Stop Resource The Conscious Style Guide is designed as a “helpful resource for better understanding and knowing what to say, how to phrase something, be sensitive to, etc.” It was created by Karen Yin as a resource for inclusive, empowering, and respectful language. Through articles and links to resources (including topical style guides), it covers: • Ability + Disability • Age • Appearance • Empowerment • Ethnicity, Race + Nationality • Gender, Sex + Sexuality • Health • Plain Language • Socioeconomic Status • Spirituality, Religion + Atheism While you should bookmark the Conscious Style Guide as a reference document, it’s also extremely helpful in educating your team members about topics they don’t know around diversity and inclusion.

may 2021

Remember Pepsi and Kendall Jenner in 2017. (The backlash was so bad, it even has its own Wikipedia entry.) The beverage brand inserted itself into the #BlackLivesMatter movement saying it wanted to express a “global message of unity, peace and understanding.” The ad showed Kendall walking through a protest to give a Pepsi to a police officer who opens and drinks it to the cheers of the protesters. But Pepsi isn’t known for its social consciousness and the idea that drinking a Pepsi could solve the conflict was absurd to many. The lesson? Make sure your content reflects a sincere commitment to diversity but in a way that’s organic for your brand and your audience. Open up the Thinking Diversity and inclusion are important. But they can’t be incorporated into your content marketing with a checklist or an image. They require embracing the opportunity to think differently and genuinely valuing the inclusion of diverse voices in your content marketing. It’s a never-ending opportunity to do good for your audience and your business. Reprinted, in part, with permission from the Content Marketing Institute. The full article may be accessed online at: https://contentmarketinginstitute.com/2020/06/ diverse-inclusive-content-marketing/ Ann Gynn edits the CMI blog. Ann regularly combines words and strategy for B2B, B2C, and nonprofits, continuing to live up to her high school nickname, Editor Ann. Former college adjunct faculty, Ann also helps train professionals in content so they can do it themselves. Follow Ann on Twitter @anngynn or connect on LinkedIn.

64% of all respondents took some action after seeing an ad they considered to be DIVERSE or INCLUSIVE. insight

Why Hiring Older Workers is Good for Your Business

By Sharon Emek

“In coming decades, many forces will shape our economy and our society, but in all likelihood, no single factor will have as pervasive an effect as the aging of our population.” – Ben Bernanke When it comes to retirement, a significant cultural shift is well under way. More and more people are choosing to remain in the workforce beyond traditional retirement age. An entire demographic is reimagining retirement, and this change requires employers to simultaneously reshape their own notions about work, retirement and age in order to stay competitive. A few fast facts: • By 2024, one in four workers in the United States will be 55 or older. By comparison, in 1994, workers over the age of 55 accounted for about one in 10 workers. (US Department of Labor) • In 1996, less than 46 percent of people age 60 to 64 were working. In 2016, that percentage grew to 56 percent. In 2026, it’s expected to reach almost 60 percent. (Bureau of Labor Statistics) • 85 percent of today’s baby boomers plan to continue to work into their 70s and even 80s. (Special Committee on Aging) At WAHVE, we believe in the power and performance of experienced workers. We make it easy for you to hire work-at-home vintage professionals who are matched to the specific needs of your business. But if you’re like many employers, you might still be wondering how hiring an older work-at-home employee can benefit you: 1. Retain valuable knowledge – This may be the most obvious benefit of hiring an older worker, whether they work remotely or not. Retiring workers have a career’s worth of institutional knowledge at their fingertips that can’t be easily, quickly or inexpensively replaced. In addition to having the knowledge and skills required to perform the job itself, they have years of experiences that have taught them how to navigate difficult situations, solve problems on their own and effectively manage relationships with colleague and clients. may 2021

2. Fill the talent gap – As we discussed in Can Remote Work Fill the Talent Shortage, there are more than 7 million job openings in the United States, and not enough employees to fill them. Employers often can’t find the qualified workers that they need. To fill this gap, it’s inevitable that employers will need to consider hiring older remote workers. Employers benefit from their vast knowledge, while employees benefit from being able to stay employed and enjoy the work-life balance they desire. 3. Boost work ethic – According to an article in Deloitte Insights, research shows that older workers are more likely to demonstrate positive “organizational citizenship.” This means they are more likely to work hard, show up on time, help coworkers, and go the extra mile when needed. 4. Innovate – Innovation is an attribute usually reserved for younger workers, but research suggests that older workers can be just as creative and innovative as younger peers if given the chance. Additionally, creating a generationally diverse workforce can also spur innovation, as discussed in Why Generational Diversity Is the Ultimate Competitive Advantage. There’s no turning back. Our population is aging. People are living longer and retiring later. And more people than ever are working from home. Older workers offer incredible value to employers who hire them. Are you ready to reap the benefits? Sharon Emek, Ph.D., CIC, is founder and CEO of Work At Home Vintage Experts (WAHVE). WAHVE , endorsed by the IIA of IL, is an innovative contract talent solution that matches retiring, experienced career professionals with a company’s talent needs. WAHVE bridges the gap between an employer’s need for highly skilled professional talent and seasoned professionals desiring to extend their career working from home. From screening to placement, WAHVE is a comprehensive solution to qualifying, hiring, and managing experienced remote talent.

insight

Workplace Flexibility, and Requesting Me

Avoiding Missteps With M Workplace flexibility that includes work arrangements like working at home and alternative and flexible scheduling is surging as many employers have been forced to adjust where, when, and how their workforce operates. Employers are implementing employment policies that allow, and sometimes require, employees to work in flexible ways to maintain business operations. But while some workplaces have embraced this flexibility, others still only offer flexible work arrangements either as a privilege or benefit of employment, or a job accommodation provided only to employees with disabilities who qualify and when reasonable. Employers who are asked to provide flexible work arrangements must sometimes decide whether to request information or an explanation from an employee in order to approve this type of request. When an employer generally allows flexible work arrangements as a policy or practice, often no information is required to be provided by employees. However, it’s not uncommon for a supervisor or manager to trip up when an employee requests access to workplace flexibility for a disability-related reason and to make the possible misstep of requesting medical documentation. This is when it’s important to keep the Americans with Disabilities Act (ADA) in mind. Why is it a possible ADA misstep to ask for medical information? Consider for a moment how employees without disabilities are generally treated when workplace flexibility is requested in accordance with an employer’s current policy or practice. For example, AccommSol company has a policy that allows alternative and flexible scheduling for employees in the advertising department. When Amaya requests to work a compressed work schedule in order to be off on Wednesdays to provide care for her eighty-threeyear-old mother, who requires dialysis, the employer does not ask for a note from her mother’s health care provider to approve the schedule. Amaya is granted the schedule she requests as a matter of policy. In another example, Keaton works in the same department and requests to flex his work schedule two days a week in order to attend group therapy sessions in the morning as part of his alcoholism recovery process. Keaton should not be asked to provide medical documentation to approve this request simply because his reason for requesting the flexible work schedule supports recovery and treatment for alcoholism. AccommSol’s policy entitles Keaton to a flexible work arrangement without the need to provide documentation or an explanation. 34

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When flexible work arrangements are available to all employees as a matter of policy or practice and no information or explanation is required, or no criteria must be met to receive this flexibility, then an employee with a disability who requests access to the flexibility afforded to others - like working at home a couple days a week or flexing a work schedule and making up time missed — should not be required to provide medical information to receive this flexibility. It’s not uncommon when a disability or medical reason is mentioned in the type of situation described above, that a supervisor or human resources manager might believe that the ADA is triggered and there is a duty to engage in the interactive process. The mere mention of disability can lead some to believe the request for access to the same flexibility available to others requires a different process. But it’s important to recognize when a request for a flexible work arrangement should be handled as a request for accommodation under the ADA, and when it should not. It is also important to keep disability-based discrimination in mind. What does this have to do with keeping discrimination in mind? Using a familiar idiom, if the flexible work arrangement an employee with a disability is asking for is something any employee would or could ask for, an employer should not require an employee with a disability to jump through unnecessary hoops, for example to provide medical information when employees without disabilities are not required to provide it. Using Keaton’s example above, if the supervisor asks for a note from Keaton’s therapist to confirm that he wishes to flex the work schedule to attend group therapy sessions, this is requiring Keaton to jump through extra hoops — to take additional steps and be held to a different standard — to access the flexibility that is available to everyone in his department as a matter of policy. This is treating someone differently on the basis of disability, just because a medical condition is the reason for the requested flexibility. If an employee is eligible for a flexible work arrangement based on policy, practice, or the terms of their employment, an eligible employee with a disability should not be held to a different standard to receive an available flexible work arrangement. This type of situation could be interpreted as discrimination under the ADA because the employee with a disability is being treated disparately than employees without disabilities.

may 2021

y, the ADA, Medical Information Medical Documentation When might it be appropriate to request medical information for ADA purposes? Knowing when it might be appropriate to engage in the interactive process under the ADA will depend on whether an employee with a disability is requesting access to a workplace flexibility that is available to other employees or is requesting access to flexibility that goes beyond the parameters of the employer’s policy or practice — whether the employee is requesting an exception, something different. For example, at the discretion of management YouCanDo employees are permitted to work at home two days a week. Jade requests and was granted this flexible work arrangement. As a matter of policy, no information or explanation was required by management to permit Jade to work at home two days a week. Jade was afforded access to the flexible work arrangement available to all employees. No information is required to approve this request, and this IS NOT a request for accommodation under the ADA. After working at home for two months, Jade recognizes that she is more focused and organized, is much less anxious, and performs at a higher level than when she is in the office. Jade has attention deficit disorder (ADD) and generalized anxiety disorder (GAD). Due to distractions and constant interruptions, Jade has significant difficulty performing the essential duties of the job while in the office environment. Jade requests to work at home five days a week, for disability-related reasons. This IS a request for accommodation under the ADA, and further information may be requested. Using the example above, if an employee with a disability requests access to a flexible work arrangement for a disability-related reason, and that flexibility is not generally available to employees without disabilities as a matter of policy or practice, it might be appropriate to engage in the interactive process under the ADA. Assuming Jade’s disability or need for accommodation is not known or obvious, the employer may request medical information to determine if Jade has an ADA disability and can benefit from the accommodation of working at home five days a week. When an individual with a disability requests access to a flexible work arrangement that goes beyond the flexibility that is ordinarily available to employees without disabilities, for a disability-related reason, this can be treated as an accommodation request under the ADA.

may 2021

By Tracie DeFreitas, M.S.

Key questions to consider when deciding whether medical information may be requested under the ADA to provide access to a flexible work arrangement: - Is the flexible work arrangement generally available to employees as a matter of policy or practice? - Is the employee who is requesting flexibility generally entitled to the flexible work arrangement requested? - Is information or an explanation ordinarily required in order to provide access to the flexible work arrangement allowed by policy or practice? - Is the employee requesting, for a disability-related reason, access to a flexible work arrangement that goes beyond the scope of flexibility that is generally available to employees or of which they are entitled? There has been a significant transformational shift around workplace flexibility that has resulted in many organizations embracing benefits that flexible work arrangements offer – particularly related to working at home. Still, questions arise related to applying flexibility when it is requested for a disability-related reason. For assistance with these tricky ADA and accommodation questions, chat with JAN staff at AskJAN.org. Tracie DeFreitas, M.S., is a Principal Consultant for Job Accommodation Network (JAN) and an ADA Specialist. JAN is the leading source of free, expert, and confidential guidance on job accommodations and disability employment issues. JAN provides free one-on-one practical guidance and technical assistance on job accommodation solutions, Title I of the Americans with Disabilities Act (ADA) and related legislation, and self-employment and entrepreneurship options for people with disabilities. Visit www.askJan.org for more information.

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YOUR CUSTOMERS’ NEEDS OUR RANGE OF OPTIONS We offer your customers a menu of coverage options. From food spoilage loss to cooking equipment protection and more, we’re prepared to serve your restaurant customers. Trust in Tomorrow.® Learn more today. AUTO | HOME | FARM | BUSINESS

grinnellmutual.com “Trust in Tomorrow.” and the “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2021.

Do your

agency proposals have these?

By Curtis M. Pearsall A key issue that agencies need to be aware of is that at the time of a problem or errors-and-omissions (E&O) claim, the agency proposal is an admissible document. This means that both attorneys – the one defending your agency and the one suing your agency – have a right to review this document. The attorneys will be evaluating whether the agency proposal helps or hurts their position. Obviously, from the agency perspective, your goal is for the proposal to help provide an element of protection that could be material enough to largely determine the eventual outcome. An issue that seems to get overlooked in many agencies deals with the use, or lack of use, of disclaimers. Comments such as “Why include disclaimers? The agencycustomer never reads them” or “I am trying to sell the account – why would I want to include these legalese disclaimers?” are all too common. However, whether the agency-customer reads them may be irrelevant. The primary issue is that if the proposal included disclaimers and a problem develops, the agency can show that the proposal included the various disclaimers. Another important issue is that the use of disclaimers is not limited strictly to P&C proposals.

What are some typical – and necessary – disclaimers? • Information contained in this proposal is intended to provide you with a brief overview of the coverages provided for reference purposes only. It is not intended to provide you with all policy exclusions, limitations and conditions. The precise coverage afforded is subject to the terms, conditions, and exclusions of the policies issued. This is designed to alert the agency-customer that the proposal is not a substitute for the policy when determining coverage issues. • Specimen forms are available upon request. While it is preferable to actually include the various specimen forms, many of these forms can be lengthy. This disclaimer advises the agency-customer that if they wish to see the actual forms that will be part of the Practices Liability, D&O, and E&O, where there is no real standardization of the forms. In addition, coverages written through the E&S marketplace are typically customized to only provide the coverage the carrier desires. • Higher liability limits may be available. Please let us know if you would like a quote for increased limits. When your agency is quoting limits, it is important for the agencycustomer to know that the limits noted on the proposal are not the only limits available. may 2021

• In evaluating your exposures to loss, we have depended upon information provided by you. If there are other areas that need to be evaluated prior to binding coverages, please bring them to our attending. This disclaimer serves to protect the agency by noting that the agency-customer has some responsibilities to notify the agency of other issues of concern. What’s more, the agency-customer is responsible for providing the agency with accurate information. For example, if the agency-customer fails to advise you that they are allowing employees to use their personal vehicles for business purposes, or that the agencycustomer just bought a dog or put an addition on the house. • Exclusions and Limitations include, but are not confined to, the following: (list some key exclusions). Virtually every insurance policy has exclusions, and many have limitations of some type. By listing some of the more noteworthy exclusions, this could very well prompt discussion on what coverage is necessary to address those exclusions. This creates a sales opportunity. Bottom line, this disclaimer notifies the agency-customer that not everything is covered. • The rates quoted for these benefits may be subject to change based on final enrollment and/or final underwriting requirements. This is a common disclaimer used in benefit proposals and is designed to place responsibility on the agency-customer to notify the agency if there have been any changes to the census data previously provided. • This policy is written by a surplus lines insurer and is not subject to the filing or approval requirements of the (specific state) Department of Banking and Insurance. Such a policy may contain conditions, limitations, exclusions and different terms than a policy issued by an insurer granted a Certificate of Authority by the (specific state) Department of Banking and Insurance. The insurer has been approved as an eligible surplus lines insurer, but the policy is not covered by the (specific state) Insurance Guaranty Fund. This could be a key disclaimer should the surplus lines carrier become insolvent. Many agencies are sensitive to the length of their proposals. While lengthy proposals are certainly an issue, including the necessary disclaimers in your proposals could just make the difference in whose favor a judgement goes should an E&O claim occur. Curtis M. Pearsall is President of Pearsall Associates, Inc. and Consultant to the Utica National E&O Program. insight

INSIGHT | associate news Thank you to our Associate Members.

Diamond Level

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Progressive Surplus Line Association of Illinois

Gold Level AAA Insurance Arlington/Roe Blue Cross/Blue Shield of IL Keystone Insurance Group, Inc. Pekin Insurance

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Bronze Level A. J. Wayne & Associates AMERISAFE Auto-Owners Insurance Co. Badger Mutual Insurance Company Berkshire Hathaway Guard Insurance Companies Columbia Insurance Group Chubb Columbia Insurance Group Continental Western Group CRC Group Donald Gaddis Company, Inc. Donegal Insurance Group EMC Insurance Encompass Insurance Encova Insurance 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 38

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J C Restoration J M Wilson Kemper Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company Marsh, Berry & Company, Inc. Maximum Independent Brokerage, LLC Mercury Insurance Group MetLife Auto & Home Midwest Insurance Company Nationwide Previsor Insurance RT Specialty - Naperville ServiceMaster DSI Society Insurance Specialty Risk of America Travelers UIG - The Agent Agency United Fire Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield may 2021

associate news | INSIGHT J.M. Wilson Acquires Transcom General Agency JM Wilson, a Managing General Agency headquartered in Portage, Michigan with eight offices in the United States, has acquired Wisconsin based Transcom General Agency, effective April 1, 2021. Transcom General Agency was founded in 1995 and has been privately owned for 20+ years. Transcom General Agency provides Transportation and Property & Casualty insurance to independent insurance agents in Wisconsin, Illinois, and Indiana. As part of the acquisition, Michael Knutson and his staff will join the JM Wilson team, offering a seamless transition to Transcom General customers.

The Best Workplaces in Financial Services & Insurance list is based on analysis of survey responses from more than 840,000 current employees at companies across the U.S. In that survey, 96% of SECURA’s employees said SECURA is a great place to work. This number is 37 points higher than the average U.S. company. The Best Workplaces in Financial Services & Insurance list is one in a series of rankings by Great Place to Work and Fortune based on employee feedback from Great Place to Work-Certified organizations. SECURA was also ranked No. 34 on the Fortune Best Small & Medium Workplaces 2020 list.

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, Brokerage, Marine, Personal lines and Surety. For more information about J.M. Wilson, call (800) 666-5692 or visit http://www.jmwilson.com.

VanderMaiden Joins J.M. Wilson as Assistant Transportation Underwriter J.M. Wilson is pleased to announce the addition of Kaleb VanderMaiden as Assistant Transportation Underwriter in their Arlington Heights, Illinois office. He is responsible for assisting underwriters with a wide variety of new and renewal commercial transportation accounts, as well as maintaining relationships with carriers and independent insurance agents in Illinois, Iowa, and Nebraska. Prior to joining JM Wilson, Kaleb was a Risk Management Intern for a transportation management company. In May of 2021, Kaleb will graduate from Illinois State University with a bachelor’s degree in Finance.

SECURA Insurance Named on 2021 Best Workplaces in Financial Services & Insurance List

SECURA Insurance was named on the 2021 Best Workplaces in Financial Services & Insurance list by Great Place to Work and Fortune. This is SECURA’s fifth time being named on the list. The company took the No. 11 spot on the list this year. may 2021

2021 JM Wilson CF Insurance Insight.indd 2

insight 39 3/31/21 10:37 AM

Homeowners Insurance

Recognizing that the typical insurance needs of homeowners have changed over the years, our Homeowners products have been designed for all kinds of circumstances. We cover: Single-family homes & multi-family dwellings Condominium units Renters and lessors/landlords Home-sharing services

Browse all of our products at www.guard.com Our Homeowners Insurance is not available in all states. Please refer to www.guard.com/states for state availability.

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY AmGUARD • EastGUARD • NorGUARD • WestGUARD

SAFETY IS OUR FOCUS.

Among the men and women that keep our world moving are those with calloused hands and hard hats. At AMERISAFE, our duty is to keep these workers protected.

WORKERS’ COMP IS ALL WE DO.

amerisafe.com - 800.897.9719

iia of il news | INSIGHT

Education Classes may

3 4 4 5 12 12 17 18 19 20 25 26 26 27

E&O-Roadmap to HO Endorsements & PIM Webinar Pre-Licensing Course - Property & Casualty Virtual CISR - Life and Health Essentials Virtual E&O Roadmap to Personal Auto & Umbrellas Webinar CISR - Commercial Casualty 2 Virtual E&O Roadmap To Cyber & Privacy Insurance Webinar Pre-Licensing Course - Life & Health Virtual Ethics: Essentials for the Insurance Producer Webinar CIC - Life and Health Virtual E&O - Identity Theft, Red Flags, Money Laundering Webinar Agents E&O Webinar CISR - Agency Operations Virtual E&O - Roadmap to Policy Analysis Webinar E&O Risk Management – Challenge of Change Webinar

New Members member agencies Achieve Agency, Inc. Chicago, IL Bishop Insurance Group, Inc. Carbondale, IL G Triple Three Group DBA M Insurance Services Hillside, IL

june

1 2 8 8 9 9 10 15 16 17 17 17 22 23 23 30

E&O: Identity Theft, Money Laundering Webinar E&O Roadmap to Personal Auto Webinar Pre-Licensing Course - Property & Casualty Virtual Flood Insurance and the NFIP Webinar CISR-Personal Lines miscellaneous Virtual E&O Roadmap To Cyber & Privacy Insurance Webinar E&O-Roadmap to Homeowners Endorsements Webinar The Evolution of Ethics in Insurance Webinar CISR-Commercial Casualty 2 Virtual CISR-Insuring Personal Residential Property Virtual Agents E&O Webinar E&O: Identity Theft, Money Laundering Webinar Pre-Licensing Course - Life & Health Virtual CIC-Commercial Multiline Virtual E&O - Roadmap to Policy Analysis Webinar E&O Risk Management – The Challenge of Change Webinar

North Shore Risk Management, LLC Skokie, 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. may 2021

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INSIGHT | classifieds for the insurance professional by the insurance professional

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/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.

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 ANNOUNCEMENT

27. Insurance Brokers Incorporated (IBI) Welcomes GAINSCO as a Carrier Partner Insurance Brokers Incorporated (IBI) is pleased to announce the addition of GAINSCO Auto Insurance as an IBI carrier partner. GAINSCO is a nationally recognized market leader with outstanding service to the specialty auto insurance market. The partnership will provide distribution for GAINSCO Auto Insurance products and will provide increased sales opportunities for IBI agency customers. Please contact us at marketing@GoIBI.com.

Bill Coughlin IBI Insurance Brokers, Inc. (547) 797-9577

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

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may 2021

Commercial | Personal | Farm-Ag | Specialty

Tricia B., Personal Lines Underwriter

Tyler S., Specialty Lines Underwriter

Tyler H., Agribusiness Lines

Underwriter

Honest relationships SECURA’s team of insurance experts is making insurance genuine. They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.

Interested in building a relationship? Contact us at secura.net/IL-agents.

Matthew B., Illinois Sales Manager

Betsy V., Commercial Lines Underwriter

Hear from our experts. Want to learn more about what SECURA has to offer? Scan the QR code or visit secura.net/IL-agents for more information about the SECURA team.

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e-Insight - May 2021

Articles inside

How to Do Diverse and Inclusive Content Marketing That Matters

Five Things Anyone Can Do to Be More Inclusive

Why Hiring Older Workers is Good for Your Business

Workplace Flexibility, the ADA, and Requesting Medical Information

Leadering Generationally Diverse Teams

Summary: Illinois Issues Feasibility Report For Coverage Affordability Initiatives