Insight October 2016 by Big I Illinois

GO who you WITH TRUST

We know you place your best customers with carriers you can truly depend on. That’s why The Hanover works hard to retain and reward your trust, providing industry specialized product lines, local underwriting expertise and responsiveness, and an unwavering commitment to the success of our agents. It’s because of these distinctive capabilities, and this unique value proposition, that we are able to work exclusively with people we trust. The very best independent agents across the U.S. Trust. We wouldn’t be an industry leader without it.

THE HANOVER. Earning trust since 1852

The Hanover is a proud sponsor of the IIA of Illinois

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112-1003 (8/16)

Personal Lines

Small Commercial

Middle Market

Technology

Specialty Industrial

Surety

Healthcare

Management Liability

Chaucer/Lloyd’s

Marine

Professional Liability

ADVERTISERS

Board of Directors

Executive Committee

47 24 52 7 55 56 24 20 15 10 54 45 5 50 51 21 6 34 18 22 44 40 18 2 44 35 26 14

AAA ABRC AGENTS INSURANCE SERVICES AMALGAMATED INSURANCE UNDERWRITERS AMTRUST APPLIED UNDERWRITERS BERKSHIRE HATHAWAY GUARD INS. GROUP CHICAGOLAND SIA EBRM EMC FCCI FORRESTON MUTUAL INSURANCE CO IPRF KEYSTONE INSURERS GROUP LIVE OAK BANK MADISON MUTUAL MAVON INSURANCE METLIFE AUTO & HOME MIDWEST OFFICE SUPPLY PEKIN INSURANCE SOCIETY INSURANCE SPRISKA STANDARD MUTUAL THE HANOVER INSURANCE GROUP THE IMT GROUP TRANSCOM GENERAL WA SCHICKEDANZ WEST BEND MUTUAL

IIA of Illinois Staff Education Director, CRM Manager Shannon Churchill - ext. 3004 - schurchill@iiaofil.org Vice President of Government Relations Chris Davis - ext. 3002 - cdavis@iiaofil.org Communications Assistant Kirsten Davis - ext. 3023 - kdavis@iiaofil.org Vice President of Communications Deann French - ext. 3022 - dfrench@iiaofil.org Products & Services Administrator Melissa Hilgendorf, CIC, CISR - ext. 3012 - mhilgendorf.indep12@insuremail.net Education Coordinator & Tradeshow Admin Tami Hubbell - ext. 3016 - thubbell@iiaofil.org Director of Human Resources/Board Admin Jennifer Jacobs - ext. 3013 - jjacobs@iiaofil.org Sr. Vice President/Chief Financial Officer Mark Kuchar - ext. 3015 - mkuchar@iiaofil.org

Chief Executive Officer Phil Lackman - ext. 3005 - plackman@iiaofil.org Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org Vice President, Agents Insurance Services Brian McSherry, CIC - ext. 3018 - bmcsherry@iiaofil.org Digital Communications/Web Administrator Rachel Romines - ext. 3024 - rromines@iiaofil.org Director of Membership Services Tom Ross, CRIS, CPIA - ext. 3003 - tross@iiaofil.org Accounting Services Administrator Debbie Trudeau - ext. 3006 - dtrudeau@iiaofil.org Products & Services Administrator Janet White, CISR - ext. 3010 - jwhite.indep12@insuremail.net Sr. Products & Services Administrator Carol Wilson, CPIA - ext. 3011 - cwilson.indep12@insuremail.net

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Overall, there were 1,300 attendees at our Chicago walk and raised over $180,000! THANK YOU again for helping Make-A-Wish reach itâ&#x20AC;&#x2122;s goal! 8

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Trusted Choice Rolls out The Power of 30 Seconds The first 30 seconds of any inbound sales call set the tone for the entire customer experience. In that short time agencies can either earn valuable new business or develop an unfavorable view among potential clients. Trusted Choice is aiming to help members make those seconds count with The Power of 30 Seconds.

The Power of 30 Seconds is an online training tool designed to help Trusted Choice agents convert inbound sales calls into clients. The training program coaches agents on creating and managing an inbound sales process for their agencies. Through The Power of 30 Seconds, you will learn how to: Establish an effective call workflow, Provide a positive customer experience and Manage phone system automation. You can also earn a certificate of completion by testing your knowledge of the principals of handling inbound sales calls through the post-training quiz. Boost profit, experience growth and cement your reputation by visiting IndependentAgent. com/30Seconds. View more at http://tc.iiaba.net/powerof30seconds/index.html

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EMC’s Businessowners Program (BOP) is bigger than ever. With more classes. More value added loss control services. More online resources to make writing BOP easier for you. Give your small- to medium-sized businesses a big value with EMC’s Businessowners Program. It’s just one of the many reasons why agents Count on EMC®. CHAD MEEKS Commercial Lines Underwriter II EMC Chicago Branch

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8/31/2016 11:33:53 AM

INDUSTRY

I.I.I. Highlights How Auto Insurers Price Their Policies - Releases New Infographic on Factors Insurers Consider When Assessing Policyholders Reporters writing about the criteria employed by U.S. auto insurers when pricing their policies should review a new Infographic developed by the Insurance Information Institute (I.I.I.). The make/model of the policyholderâ&#x20AC;&#x2122;s vehicle and their driving record, where the vehicle resides and how many miles it is driven, as well as the cost of medical care and litigation in the policyholderâ&#x20AC;&#x2122;s state, are among the factors which impact the cost of an auto insurance policy, according to the I.I.I. Regulators in 47 states also allow auto insurers to use credit-based insurance scores as a rating criterion. Auto insurers do not use a policyholderâ&#x20AC;&#x2122;s race, religion, or income when determining the price of a policy.

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IIABA Fal l Leadership Conferenc IIA of IL Receives Education Award

Young Agents Committ

IIA OF IL was recognized by the Big “I” with Diamond Excellence in Insurance Education (EIE) award during the Education Convocation. The EIE awards celebrate and recognize state associations and staff that have made significant contributions to education for their members and the industry in the areas of class offerings, continuing education, professionalism, designation offerings, industry collaboration, planning goals, marketing, resources and more. “Through a variety of traditional and cutting-edge educational programs, recipients of this award have proven their dedication, passion and commitment to education,” says Sue Knobeloch, past chair of the Big “I” Virtual University Committee and executive director of Association of Risk Mangers Northwest in Seattle.

EDU CATION

Each entrant is scored based on a state association’s overall educational offerings in a variety of areas and a short essay detailing its education programs.

Young Agents Committee Members, bottom Allyson Padilla, Rachel Romines, Adam Hack second row l-r: Michael-Charles Hilson, Lindsey Polzin, Brad Leonard, Andrea Nehrin Renee Crissie, Lindsay Williams, Corbin Adam

Young Agents Committ

IIA of IL President Cindy Jackman, Education Director Shannon Churchill and Education Committee Chair Lindsey Polzin receive the Diamond Excellence Award 12

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october 2016

ce - Sep temb er 7-11 - Chicago

tee Receives Three Awards The IIA of IL Young Agents Committee was recognized with three awards during the Young Agents Leadership Institute. Rachel Romines, IIA of IL Digital Communications/Web Administrator, received the Young Agents Staff Liaison of the Year Award for her hard work overseeing and coordinating all YA events and projects.

l-r: kman,

Rachel Romines and Chairman Adam Hackman

Y OU N G

In addition, the entire Young Agents Committee received three awards; Outstanding Membership Development, Outstanding YA Meeting for the EDGE Conference and the overall Fall Leadership Attendance Award.

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AG EN TS

tee Hosts Second City Event

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Long-Term C

As most of us are aware a prolonged nursing home stay can easily deplete a person’s savings, liquidate their assets, and possibly erode their retirement money. And modern medicine – which is keeping us alive longer – is only making this possibility a bit more likely for most. If Long-Term Care (LTC) is needed, most people would like to remain in their home, rather than residing in a Skilled Nursing Facility (SNF). And they probably think the cost will be substantially less at their home than the expense at a SNF. That is possible if the individual has a friend or relative that can provide the hands-on care. But what if no such person is available? Consider this: A certified in-home care-giver runs a minimum of $20 per hour in most parts of the country. Do the math… three 8-hour shifts will be approaching $500 per day! That may be twice the cost of a SNF in the same general area. According to the 2016 study by Genworth Insurance the national average cost for care is staggering: The Average Monthly / Annual Cost (Nationally): • Assisted Living Facility - $3,628 / $43,536 • Skilled Nursing Facility (Semi-Private) - $6,844 / $82,128 • Skilled Nursing Facility (Private) - $7,698 / $92,376 Site: genworth.com/about-us/industry-expertise/cost-ofcare.html

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With this site, it is very easy to search for your state’s averages as well as most major cities in your state. Ok, so what are the LTC funding options should the need arise? There are really only three options: 1) Be Rich, 2) Be Poor, or 3) Be Insured. The 1st option (Be Rich) eliminates the vast majority of people. The 2nd option (Be Poor… meaning Medicaid). What usually happens is the person needing cares uses their money and assets FIRST and they become destitute, and then meet Medicaid eligibly rules. Every state has specific rules regarding Medicaid qualification: 1) the applicant must spend down their assets to a mandated amount – generally $2,000, and 2) their income can’t exceed a certain level ($2,199 per month in Florida in 2016, as an example). The 3rd option (Be Insured) usually meets with resistance due to, 1) the perceived high cost of the premium of Long Term Care insurance (LTCI), and, 2) many people simply do not think this issue will affect them. No question about it… a traditional LTCI contract is pricy! And, there is rarely any benefit payable should the person die before using the coverage. What is the “trigger” for a covered claim

october 2016

Care Funding

with Life Insurance

By Jerry Rhinehart

with a LTCI? Typically, it mean they can’t perform any 2 of 6 Activities of Daily Living (ADLs). ADLs are defined as eating, dressing, bathing, toileting, transferring or continence. The second “claims-trigger” is the insured must have a medical diagnoses of Severe Cognitive Impairment. A person with a dementia impairment (maybe Alzheimer’s disease) might be able to perform all 6 ADLs, but obviously should not be left without someone to look after them. So, how is a claim approved? The insured individual meets either of the two defined claims-triggers – any 2 of 6 ADLS OR Severe Cognitive Impairment. Once an individual claim’s qualification is met, benefits are payable until they recover from the medical issue, or the insurance “bucket of money” is empty. What is meant by the term “… until they recover”? Well, most think of this coverage for older people with severe (and irreversible) medical situations. But what about a person of any age that has a serious medical event (heart, cancer, accident, etc.) and is in need of care for several months and then recovers? The benefit would be payable for that period of time if the claims-trigger and the elimination period are met. We have discussed the dilemma, various options and the traditional LTCI approaches. What about recent innovation and trends for this issue? A few years ago, we started seeing some life insurance carriers include a novel approach regarding the LTC benefit. Many refer to it as a Living Benefit (LB). Some call it an Accelerated Benefit. Now, keep in mind not all carriers include this coverage. For those that do, some make it a rider (with a published additional cost) while most make it a policy provision or contract feature, thus no published additional cost. Additionally, the LB contract language and pay-out provisions vary greatly with the companies that participate in this benefit. It is even available in varying degrees with some annuity contracts. How does the LB provision generally work? First, the life insurance contract obviously has the death benefit. But as part of the death benefit, the contract will generally provide three “buckets” of money that can be accessed by the owner if the insured has a qualifying event or meets a “claims-trigger” provision. Note that just because a company’s life policy is approved in a particular state, this rider may not. Always check with your company. • The first coverage “bucket” is generally referred to as “Critical Illness.” Here the claimant can file for up to some maximum amount against the contract – meaning, the life insurance death benefit amount – should they have a defined medical procedure. A physician’s october 2016

certification will be required. One company’s language defines it as: “open heart surgery, angioplasty or myocardial infarction, life threatening cancer, stroke, major transplant or end-stage renal failure.” The limit may be a flat maximum amount (such as $25,000) or some maximum percent of the death benefit (such as 25%), but not to exceed some specified dollar amount (one company’s maximum is $125,000). An example: John (who is self-employed) has a $500,000 life insurance policy that contains the LB provision. He becomes ill and ultimately receives a kidney transplant. He is responsible for a sizable medical insurance deductible and can’t work for 4 months – so he sustains a significant loss of income. He decides to take an advance against his policy of $100,000. He still has $400,000 of death benefit coverage, since this is considered a lien against the contract. Most companies will charge an administrative fee when such a claim is made. A onetime fee of $150 is common. • The second “bucket” is generally defined as “Chronic Illness.” Here the claimant will be required to provide a physician’s certification that shows the individual is unable to perform any 2 of 6 ADLs (eating, dressing, bathing, toileting, transferring or continence), OR, has been diagnosed as having Severe Cognitive Impairment. You will note this is the exact language we discussed with a traditional LTCI contract. Carriers may require the “coverage-trigger” to be for a minimum and continuous timeframe – perhaps 90 days. As with Critical Illness, there will be some maximum limit. With many life insurance companies, it will generally be up to 50% of the death benefit, with some overall maximum total. One company’s maximum benefit payout is $1,000,000. One company’s language states: “The sum of all accelerated benefits may not exceed either 50% of the specified amount (the death benefit) at the time of the first acceleration, or $1,000,000.” Additionally, the company may limit how benefits are paid under this provision. Some may pay annual installments, but not to exceed the maximum LTC benefit as defined under HIPAA. Some may pay a maximum monthly benefit (such as 2% installments over 50 months). An example: Sharon is 45 years old and has a $400,000 life policy that contains the LB provision. She has developed a degenerative muscle disorder and is no longer able to care for herself. She and her husband take an advance of $200,000 from her policy to modify their home and help pay for a home health aide. She will still have $200,000 death benefit protection. continued... insight

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• The final “bucket” is defined as “Terminal Illness.” Most contract’s LB language states the owner can access this benefit if the insured individual’s life expectancy is 12 months or less. Generally, the maximum benefit will be 50% to 75% of the death benefit, not to exceed some specified amount, perhaps $1,000,000. An example: Patrick has a $300,000 life policy that contains the LB provision. He has an inoperable tumor and his physician has given him 5 months to live. He requests a $50,000 advance against his contract - so he, his wife, and adult kids can take a cruise they have discussed for years. Upon Patrick’s death, his wife receives the remaining $250,000 death benefit. Note that a number of life insurance carriers have the LB provision as part of their Whole Life, Universal Life and even Variable Life contracts. A few carriers even have this part of selected Term Life contracts. An important point: when the LB benefit is received, it is considered a lien against the life insurance policy. The company will have some fee associated with each transaction ($150 as an example), plus, they will charge interest against the lien as specified in the contract. The company will always state the maximum interest – such as 8%. With a lien, the interest is charged against the ultimate remaining death benefit payout. By doing this, the amount received from the LB, should be free of taxation. Always recommend your clients check with their tax specialist for their advice and interpretation. As mentioned, variation of this benefit is available with some annuity carriers. One such enhancement is the Waiver of Surrender Charge Provisions with many carriers. This provision has been around with most carriers for a number of years. How does this work? Should the annuitant have a terminal illness, or be confined to a nursing home (many define confinement as 12 months or longer), the individual can access the annuity account value without a surrender charge. Another variation is the ADL trigger provision (or rider). How does this work? Should the annuitant meet the LTC “claims-trigger” (2 of 6 ADLs, or Severe Cognitive Impairment), they can access a greater percentage of their annuity account value on an annual basis without a surrender charge. A 10% annual withdrawal with no surrender charge is common without this provision. This LB provision will increase this percentage to a higher amount – perhaps 20% annually – without a surrender charge. Currently, very few annuity carriers have this last provision available. Either of these annuity variations are a benefit to a person or family that has the long term care funding need. But neither will be as attractive as the life insurance with LB unless the annuity is very sizable. What are the major advantages of an insured LTC funding program? With either a good quality LTC insurance contract or a somewhat sizable life insurance policy with the LB, the unpleasant thought of 1) running out of money,

october 2016

2) having to liquidate their assets, or 3) trying to qualify for Medicaid, can be eliminated or greatly postponed. Most of us will work 30 or 40 years to amass a sizable amount of money in our qualified plans (401-k, IRA, SEP, ROTH, etc.) so our retirement years can be financially low-stress. As stated previously, to qualify for Medicaid, you must spenddown your assets to a certain threshold. Are you aware that Medicaid rules require you to spend down your qualified money (401-k, IRA, SEP, ROTH, etc.) in additional to all your other assets? Think of a quality insured LTC funding program as a FIRE-WALL around all your qualified money! Numerous questions might arise concerning this innovative LB provision. Others may come up about LTC funding options with an annuity. The questions may include: What are the tax rules, limitations on the use of the funds, coverage territory issues, and waiver of premium concerns … just to list a few. The comparison table found with this article should address most of the issues and questions that might come up for agents and their prospects. Since coverage language and benefit options vary greatly with life and annuity contracts that offer one or more of these funding choices, it is highly recommended that agents thoroughly research what is available with their carriers. Another alternative is to discuss these contracts and options with a knowledgeable life insurance brokerage agency that works in this area, and has a good relationship with numerous quality life insurance companies. Jerry E. Rhinehart, CIC, CLU, ChFC, RHU graduated from the University of West Florida in 1970 (College of Education). After teaching at the high school level for a brief time, he moved into the insurance industry. He worked for a property and casualty direct writer for several years. In 1983 he and his wife opened an independent insurance agency in Tallahassee, Florida. While there he focused primarily on the life, health, and financial services area. Additionally he began working in the Continuing Education field as a speaker and writer. Today he serves on the National Faculty of the Society of Certified Insurance Counselors and continues to operate Rhinehart & Associates located in Panama City, Florida, where he works with clients concerning life insurance clients concerning life insurance, long-term care, and annuities.

Visit http://tinyurl.com/LTCTable for a table showing Key Questions and Concerns Regarding the Living Benefit Provision with Life Insurance and Annuities as it Compares to the Traditional Long Term Care Insurance Contact.

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In Sal es and Business Y ou Do

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WIN

By John Chapin

Recently Shaunae Miller of the Bahamas won the women’s 400 meters at the Rio Olympics by diving over the finish line. Some say she fell, others say she dove, but either way, she won, as it is legal to fall, dive, or do whatever you have to in order to get over the finish line first. Still, some people cried “foul” because, to them, this didn’t seem fair. This situation, Deflategate, and other examples raise the question of right and wrong, and fair and unfair when it comes to winning in sports. What about when it comes to winning in sales and business? Is there a gray area? Is there a line somewhere that we don’t cross? Or is selling in the same category as love and war where “all’s fair?” The Rul es for Pushing the Env el op e When Comp eting Rule 1: Know the Rules and Laws Intimately You do whatever you need to do to win as long as it is legal and ethical. Because of this it is very important to have a complete understanding of the rules and laws. I find that people who say “that’s not fair” when a competitor uses a creative but legal tactic against them to win, simply weren’t aware of the tactic and would have been the first to use it had they known. I also find that many people incorrectly interpret rules and laws as an excuse for not stepping out of their comfort zone or going above and beyond. You must use all rules and laws at your disposal to win. Shaunae knew it was legal to dive, so she did, and she won.

You also need to know what isn’t in the rule book that you might be able to use to your advantage. For example, when I was eight years old, my best friend David and I played minor-league baseball. One day, when I was the pitcher and he was the catcher, David, who is now a sports announcer, and even at eight knew more about sports than most adults, had the bright idea to intentionally walk the other team’s super-star player. He called for time-out, marched out to the mound and said to me, “John, let’s walk this guy. When I stand up and step off to the side, just throw the ball to me.” He did, and I did, and after the first pitch the coach from the opposing team erupted and came flying out of the dugout screaming and yelling that “we couldn’t do that.” The coaches and umpires, unable to find any rule against it in the rule book, allowed us to intentionally walk the batter, but just this one time. Another example came when I was in Cub Scouts. The highlight of that experience was winning the Pinewood Derby. I won by knowing the maximum weight for a car was 5 ounces, a little something about aerodynamics, and the fact that graphite would help my wheels turn with the least friction. Okay, correction, my dad knew all that. In any case, we crafted the car for aerodynamics, my dad filled the cockpit with clay, bolts, and nuts until we were at the maximum weight, and I put graphite on the nails holding the wheels… and WE won. I remember looking up the rules to identify the maximum weight and whether or not it said anything about graphite: five ounces, and continued...

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october 2016

nothing on graphite, so we used it. Know the rules and the laws and be resourceful without crossing ethical or legal lines. Oh, and surround yourself with smart people like David and my dad. Rule 2: Tell Horror Stories Related to the Competition One of the first rules of sales is that you NEVER bad mouth the competition. I agree. This is not the same as bad-mouthing the competition. You’re going to tell stories about bad results of some of their common practices, not attack them personally. You’re going to use these stories when a customer is in danger, or you are about to lose a major account and you are trying to save it. In these situations, the gloves come off and everything is legal. You’re looking for situations in which customers have been hurt by something the competition did or overlooked. For example, three years ago a friend switched his insurance and saved $300. He was told it was exactly the same policy, the new company was simply less money. After he had a serious motorcycle accident, he found out it wasn’t the same. The new company had an exclusion so he wasn’t covered under his umbrella policy when he was on his motorcycle. The key here is to raise a reasonable doubt. You have to show the prospect the potential pain to going with the competition. Is there something that can hurt them like in the story above? If so, tell a story of someone who got bit by their mistake. If you’ve been in your business for any length of time, you have some solid stories of people who got hurt by the competition in one way or another. If you don’t personally have stories, go to others who have been in your business a while that have good stories. Oh, and if you catch the competition outright lying, let the prospect know and have them get the lie in writing to cover their butt.

Rule 3: Sell on Price The last thing you want to do is outright cut your price. Typically if you are dropping price you are also reducing services or removing options or extras. That said, as an exception, you can drop price as a “last” resort. I remember presenting a new bank branch proposal to a Senior V.P. and he said, “If you can knock $1,500 dollars off, I’ll do it.” Considering it was a $165,000 order, I said, “Done. I just need your approval right here.” Rule 4: Leave No Stone Unturned You have to go to bed at night knowing you did everything you could to get the sale. If there was something else you could have done, but you didn’t, you’re always going to wonder if that would have made the difference. So make one more call, spend a little more money making something look better, and put in a little more effort and energy to make sure you do all you can to win. NOTE: Never outright break a rule or law, get caught in a lie, or otherwise sacrifice your ethics. Also, always err on the side of caution. At the end of the day, all you have is your reputation and character. John Chapin is a sales and motivational speaker and trainer with over 26 years of sales experience. He is the author of the 2010 sales book of the year: Sales Encyclopedia. He can be reached at johnchapin@completeselling.com.

The k ey here is to raise a reasonab l e doub t. Y ou hav e to show the p rosp ect the p otential p ain to going with the comp etition.

october 2016

insight

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e INSIGHT -

online journal at http://reader.mediawiremobile.com/IIAofIL/issues/107535

OC TO BE R 20 16

T H G I S IN 2016-201P7resident IIA of IL

RICK SUTT

f IL g the IIA o Introducin IRECTORS D F O BOARD

me Bringing Hwo are d ar H e th s Four

in IIA of IL Wat Big “I” Awards nference Co

Build a

BeyHive

for Your Brand By Jessica Fenney

In this month’s e-Insight. october 2016

insight

RICK SUTTON 2016-2017 IIA of Illinois President Congratulations on your induction as President of the IIA of IL. You have been involved with the Association for a number of years in many capacities. Tell us how you first got involved with the IIA of IL? My original involvement goes back to the PIA days. I had just started my own agency and Mike Patton from PIA called on me. He along with a couple of Field Reps suggested I get involved in the PIA. Thanks goodness I listened. It has been a great experience.

insight

What made you want to go through the Executive Committee Chairs?

This is something I had wanted to do for several years, but just did not feel I could dedicate the time needed to do the job right. At this time in my career, thanks to David Miller and the staff at Interstate Risk placement (IRP), I can take the proper time needed. I hope to be able to help grow the IIA of IL and make being an independent agent the best profession in the world.

october 2016

Family is a huge priority in your life. Tell us about your family.

Sandie and I have four children and seven grandchildren. Kim has two daughters, Teryn and Hallie, Eric has two daughters, Kaylee and Lexie, Amy has a son Beckett and Andy has twins, a boy and a girl Ellie and Brady. We are blessed to have a happy and healthy family. We cherish the time we get to spend with the kids and grandkids. Add to that the one that is dear to all of us, my mother, Marguerite who is 97 and constantly on the go.

How do you feel about your Presidency?

I am honored to be able to serve the over 1,200 independent agents in Illinois as their President. Even though my title will be President, the work of the IIA of IL is a team effort. Without the dedication of the many volunteers and the excellent staff we would not be the successful Association we are today.

continued... october 2016

insight

I hope members will remember me as a

PRESIDENT

that

WORKED HARD

to BETTER the ASSOCIATION

and provide

VALUE

insight

to MEMBERS. october 2016

Who or what led you to choose a career in insurance?

I was going to school at Eureka College on a basketball and golf scholarship, yes really, to be a coach and was working part time in a clothing store. The wife of a sales manager for Metropolitan Life came in to buy for her husband. She told her husband he should talk to me about a career in Life Insurance. He interviewed and hired me to be a Metropolitan Insurance Consultant. I thought that being a MIC was pretty cool and more lucrative than being a coach. The rest is history.

What other professions have you had?

I received my Insurance license in 1973 and have been in the Insurance business ever since.

What lessons from your personal life have you incorporated into your business career?

At a young age I saw my father work long and hard to provide. He had a good work ethic but always made sure he had time for family.

We all know the industry has faced many changes in the two decades, what would you say has most impacted your business, both positively and negatively, over the last few years?

There are a few. The Health Insurance issue has had a drastic effect on both the professional agent and the consumer, and it will continue to impact both. The system in its current form will not survive. Commission cuts represent another issue facing the independent agent. We need to continue to search for alternate revenue streams for our agencies. NARAB II has had a positive effect for licensed producers doing business in multiple venues. Fortunately, the IIABA successfully worked to get this passed. And finally the Trusted Choice brand and TrustedChoice.com, while still a work in progress, are having a positive effect on many producers and will continue to help them grow.

I try to keep things simple. Love, kindness and compassion are three important words to me. Treat people the way you would want them to treat you. What do you see as some of the major industry issues in the immediate future? We will need to continue to work on finding a Health Insurance system that will work for the companies, producers, and consumers.

Looking down the road five, ten years, what other issues do you see independent agents facing? Being able to keep up with, and afford, the technology needed to stay competitive in the marketplace. Social media is constantly changing. Agents will need to rely on the IIA of IL to stay in touch and determine how to use social media as a marketing tool. Client needs are changing. Agents need to stay educated and up to date in order to meet their clientâ&#x20AC;&#x2122;s needs.

What about issues the IIA of IL will have to address?

I see Mergers & Acquisition activity as the most critical issue facing the IIA of IL. We must continue to provide value to both large and small agencies.

How has your involvement with the IIA of IL impacted you both personally and professionally?

Personally Sandie and I have met some of our best friends through the IIA of IL. We have been able to travel to places we would not have seen had it not been for the Association. My professional life has been impacted in many ways. I have been able to take advantage of resources made available by our association. The IIA of IL provides many opportunities to keep us informed whether it be through education courses, Insight magazine, or e-Weekly just to mention a few.

In your opinion, what are the key benefits of membership with the IIA of IL?

The benefits are numerous. Education, legal advocacy, E&O, networking with peers and so much more. The IIABA has resources available through their web site that are invaluable. The more a individual gets involved the more he or she will reap the rewards of being a member. continued...

october 2016

insight

What goal(s) do you have for your presidential year?

I want to continue to develop the programs currently in place. InVest is such an important program for the future of the Independent Insurance Agency. Trusted Choice and TrustedChoice.com are continuing to gain momentum and become an important lead system for our agents. We need to continue to provide quality education and make sure we offer programs to fill our memberâ&#x20AC;&#x2122;s needs. I want to continue the excellent relationship we now have with the Illinois Department of Insurance.

Do you have a personal motto or creed by which you live?

I do not have a personal motto or quote from some famous person. I try to keep things simple. Love, kindness and compassion are three important words to me. Treat people the way you would want them to treat you.

insight

What is one fact about you that people would find surprising?

I am pretty plain and ordinary. You really do not get any surprises with me. The one thing people may not know is that Sandie and I previously raised Clydesdale Horses. We had as many as 21 at one time. We were fortunate to have raised the Champion Yearling Stallion two years at the Illinois State Fair. We also had the winning Clydesdale six horse hitch at the Illinois State Fair which I drove.

Finally, when all is said and done, what is the most important message you hope IIA of IL members take away from your Presidency?

That I did not screw up the great things going on at the Association! Seriously I hope members will remember me as a President that worked hard to better the Association, provide value to members, and continue to make being an Independent Insurance Agent the best possible profession.

october 2016

insight

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insight

BOARD OF DIRECTORS

2016-2017 IIA of IL 36 18insight insight

Chairperson of the Board Cynthia K. Jackman

Consol idated Insurance Agency , Inc. 312 E. Main St., Carbondale, IL 62901-3010 Phone: 618-457-0471 Email: cindy@ciains.net

Vice-President Patrick Muldowney

M esirow Insurance Serv ices, Inc. 353 N. Clark St., Chicago, IL 60654 Phone: 312-595-7192 Email: pmuldowney@mesirowfinancial.com september october 2016 2016

President

President-Elect

Rick Sutton

Ryan Hite

Secretary/Treasurer

State National Director

Bennie Jones

Gregory A. Sandrock

Interstate Risk Pl acement, Inc. 7320 N. Villa Lake Dr., Peoria, IL 61612-3765 Phone: 309-692-8544 Email: ricks@was-irp.com

Risk M anagement Sol utions of America, Inc. 309 W. Washington St. Ste. 200, Chicago, IL 60606 Phone: 312-960-6200 Email: bjones@rmsoa.com september october 2016 2016

Eagl e Rock Insurance Serv ices 7800 N. Sommer St., Suite 204, Peoria, IL 61615 Phone: 309-688-7316 Email: ryan.hite@eaglerockins.com

Cornerstone Agency , Inc. 107 S. Main St., Tampico, IL 61283-7766 Phone: 815-438-3923 Email: gregsandrock@2cornerstone.com

insight 37 19 insight

Region 1 Director

Region 2 Director

Lisa Lukens

William Wirth

Region 5 Director

Region 6 Director

Patrick Taphorn

Robert Messer

Sal ib a-Y ewel l Insurance Serv ices, Inc. P O Box 218, Herrin, IL 62948 Phone: 618-942-2556 Email: salibainsurance@gmail.com

J ames U nl and & Co, Inc. 2211 Broadway St., Pekin, IL 61554-3945 Phone: 309-347-2177 Email: ptaphorn@unland.com 20 38 insight insight

Wirth Agency 119 E. Mill St., Waterloo, IL 62298-0323 Phone: 618-939-6368 Email: billw@wirthagency.com

M ark et Financial G roup , Ltd. 240 Commerce Dr., Crystal Lake, IL 60014-3549 Phone: 815-459-3300 Email: rmesser@marketfinancialgrp.com september 2016 october 2016

Region 3 Director

Region 4 Director

Jay Peterson

Darlene McGehee

Region 7 Director

Region 8 Director

Michael-Charles Hilson

Gerald K. Harris

Peterson Insurance Serv ices, Inc. 117 W. Main St., Clinton, IL 61727-0377 Phone: 217-935-6605 Email: jay@petersoninsuranceciag.com

( * ) G . B. G . , Inc. 40 W. 162nd St., South Holland, IL 60473-2061 Phone: 708-333-3378 Email: mhilson@gbgins.com september 2016 october 2016

Iroq uois Insurance Agency P.O. Box 220, Watseka, IL 60970-0220 Phone: 815-432-2404 Email: dmcgehee@iroquoisins.com

Insurance Sup p ort Sy stems, Inc. 6962 West North Ave., Chicago, IL 60707-4414 Phone: 312-831-4650 Email: geraldharris@insurancessystems.com insight insight 2139

Region 9 Director

Region 10 Director

Thomas Evans, Jr.

Kevin Lesch

Esser/ Hay es Ins. G roup , Inc. 1811 High Grove Ln, Ste. 139, Naperville, IL 60540 Phone: 630-544-3762 Email: tevans@esserhayes.com

22 40

insight

Bartl ett Insurance G roup , LLC 804 W. Bartlett Rd., Bartlett, IL 60103-4402 Phone: 630-830-3232 Email: klesch@bigonline.net

september october 2016

At-Large Board Member/IIAPAC

At-Large Board Member

George Daly

Ken Samson

The Horton G roup , Inc. 10320 Orland Pkwy, Orland Park, IL 60467-5658 Phone: 708-845-3311 Email: george.daly@thehortongroup.com

Dasco Insurance Agency , Inc. 628 Academy Dr., Northbrook, IL 60062-2421 Phone: 847-291-0660 Email: kens@dascoins.com

At-Large Board Member/InsurPAC Thomas Walsh, Jr.

TW G roup , Inc. 850 N. Cass Ave., Westmont, IL 60559-1394 Phone: 630-737-0300, ext. 1000 Email: tjw@twgroupinc.com

september 2016 october 2016

insight insight

23 41

Agent/Company Chair

Education Chair

Timothy J. Nicoud, Jr.

Lindsey Polzin

Trusted Choice Chair

Young Agents Chair

Keith Verisario

Allyson Padilla

N icoud Insurance 4481 Ash Grove, Ste. B, Springfield, IL 62711 Phone: 217-546-6900 Email: tim.jr@nicoudinsurance.com

Al l Security Insurance Agency 1000 E. Warrenville Rd., Ste 101, Naperville, IL 60563 Phone: 847-699-4040 Email: kmv@allsecurity.com 24 42

insight

Wine Sergi & Co. , LLC 1000 E Warrenville Rd., Ste 101, Naperville, IL 60563 Phone: 630-513-6600 Email: lindseyp@winesergi.com

Bl ank â&#x20AC;&#x2122; s Insurance Agency 515 S. Whittle Ave., Olney, IL 62450-2264 Phone: 618-393-2195 Email: allyson@blanksinsurance.com september october 2016

Government Relations Chair

Planning & Coordination Chair

William C. Lawrence

William Kelso

P/ L/ R Insurance Serv ices, Inc. 139 N Williamsburg Dr., Bloomington, IL 61704 Phone: 309-827-0007 Email: blawrence@plrinsurance.com

Sp ecial ty Risk of America 401 Fayette Ave., Springfield, IL 62704-2788 Phone: 217-753-2500 Email: bill.kelso@spriska.com

AIS President Julie Hearring

Bl ank â&#x20AC;&#x2122; s Insurance Agency 515 S. Whittle Ave., Olney, IL 62450-2264 Phone: 618-393-2195 Email: julie@blanksinsurance.com october september 2016 2016

insight

43 25

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We offer niche products for agents working to cover hard to place risk including: • Farm Policies • Dwellings with replacement costs between $125,000 - $175,000 • ACV Homes • Mobile Homes • Rentals without supporting business • Fire Protection Class 9-10 Dwellings • A-50 Functional Replacement Cost Product 208 S Walnut Ave · P.O. Box 666 · Forreston, IL 61030 · (815) 938-2273 · (800) 938-2270 · www.fmic.org

Trusted Choice Raffle Raises $2,000 for St. Jude Children’s Research Hospital The Trusted Choice sponsored Ultimate Baseball Giveaway raffle to benefit St. Jude Children’s Research Hospital raised a total of $2,000 for the charity. Congratulations to Dave Baggett. He threw out the first pitch at the Sept. 13 Cubs/Cardinals game at Busch Stadium. Thank you to all who participated in the fundraising event.

TW Group Hosts Shredding Event to Benefit St. Jude Children’s Research Hospital TW Group, Inc. in Westmont hosted a shred event on Saturday, September 10. Area residents were encouraged to bring their shreddable materials to the drop-off spot with donations being collected for St. Jude. The event raised over $800 for the charity. Thank you to Tom & Mary Walsh, pictured right, for coordinating.

insight

october 2016

Thank you to those that attended the Young Agents sponsored Company Appreciation event on August 26. For the second year, it was a huge hit with our company representatives and agents that attended this fun afternoon at the race track. A silent auction was offered during the event and over $1,500 was collected to benefit Make-A-Wish Illinois. This put the Young Agents Committee well over their $6,000 Make-A-Wish goal for the year.

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ASSOCIATE NEWS

Thank you to our Associate Members.

Diamond Level Members

Platinum Level

Standard Mutual Insurance Company

Gold Level Silver Level AAA Insurance Agent/Broker Review Company Arlington/Roe Blue Cross/Blue Shield of IL

Grinnell Mutual Reinsurance Company Rockford Mutual Insurance Co. The IMT Group West Bend Mutual Insurance Co.

Bronze Level A.J. Wayne & Associates AMERISAFE Apartment Insurance Consultants Auto-Owners Insurance Co. Berkshire Hathaway Guard Insurance Companies Burns & Wilcox, Ltd. Cornerstone National Insurance Company Donald Gaddis Company, Inc. Employers Encompass Enterprise Rent-A-Car Erie Insurance Group Farmers Mutual Hail Foremost Insurance Group Forreston Mutual Insurance Company Grange Mutual Casualty Co. Illinois Mine Subsidence Insurance Fund Illinois Public Risk Fund Imperial PFS/AIS Premium Finance Interstate Risk Placement Iowa Mutual Insurance Company IPMG J. C. Restoration J M Wilson Keystone Insurers Group, Inc. 48

insight

Liberty Mutual Madison Mutual Insurance Company MarshBerry Maximum Ind. Brokerage, LLC Mercury Insurance Company of IL MetLife Auto & Home Nationwide Pabius Corp ProAg QBE Americas, Inc. Risk Innovations Safeco Insurance Sagamore Insurance Company Selective Insurance Company of America ServiceMaster DSI Society Insurance Specialty Risk of America Surplus Line Association of Illinois Transcom General Agency Travelers United Fire Group Utica National Insurance Group W.A. Schickedanz Agency, Inc. Western National Insurance Westfield Insurance Company october 2016

IIA OF ILLINOIS NEWS Education Classes october

13 18 19 27

CISR - Personal Lines Springfield CISR - Personal Residential Pekin CISR - Commercial Property Rolling Meadows Errors & Omissions Rolling Meadows

november

1 2 9 15 16

CISR - Dynamics of Service Springfield

New Members member agency B. Ozburn Insurance Agency Murphysboro, IL Batavia Insurance Agency Batavia, IL C.H. Smith Insurance Agency, Inc. Danville Multi-Lines Insurance & Investment Services, Inc. Roselle, IL

CIC - Commercial Casualty Springfield

associate copper level

CISR - Dynamics of Service Rolling Meadows

Midwest Office Supply Springfield, IL

Ethics Edwardsville Errors & Omissions Springfield

For information regarding IIA of Illinois membership or company sponsorship, contact Tom Ross, Director of Membership Services, at (217) 321-3003, tross@iiaofil.org.

Online Education www.iiaofil.org IIA of IL Webinars | ABEN Webcasting October & November Featured Online Classes 10 Things Every Commercial Lines Agent Ought to Know | E&O Risk Management: Meeting the Challenge of Change Personal Auto Hot Topics | Homeowners Hot Topics | Additional Insureds and Certificates of Insurance Contractors Liability Exposures | Top 10 Countdown of Personal Lines Coverages & Current Issues | The Dirty Dozen When the Child Becomes the Parent - Aging Parents and Insurance Decisions | Commercial General Liability Coverages Risk Assessment for Manufacturing Operations | Business Auto Coverages | Contractors Property Exposures Insuring Toys & Collectibles | Unlocking the Secrets of D&O Insurance | Farm Property Coverages | Who is an Insured? Workers Compensation | Cyber Liability | Itâ&#x20AC;&#x2122;s Not My Fault, or is it? Liability Issues in Personal Lines Policies

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insight

october 2016

West Bend Mutual Insurance Company, along with independent insurance agents who represent the company and key business partners, recently raised $644,398 for the MACC Fund, Midwest Athletes Against Childhood Cancer. Donations were raised at an August 15 event the company hosted at the West Bend Country Club and at the Prairie Center at West Bend’s corporate headquarters. This is the seventh time West Bend has hosted this biennial event which, to date, has generated nearly $1.7 million for the MACC Fund. The check was presented by Lily, Bailey, and Maddie Dove. Lily and Bailey are identical twins who were both diagnosed with lymphoblastic leukemia. Their father, Ryan Dove, is director of information security at West Bend Mutual Insurance. The MACC Fund is a charitable organization founded in 1976 by Jon McGlocklin, former Milwaukee Buck’s player, and former Buck’s announcer Eddie Doucette to support pediatric cancer and related blood disorder research in Wisconsin. Since its inception, the MACC Fund has contributed more than $57 million to this cause. This MACC Fund-supported research in Wisconsin impacts the treatment and cure for children throughout the state, the nation, and the world.

Mercury Insurance Introduces Mechanical Breakdown Protection ‘Fast Quote’ Program for Credit Unions Vehicles are one of the largest investments a person makes and credit unions are well-known for providing their members some of the most affordable loan rates available. To help credit union members protect their investment from potential repairs for longer than the typical standard manufacturer warrantyi, Mercury Mechanical Breakdown has launched “Fast Quote,” an easy-to-sell and inexpensive mechanical breakdown protection program to extend their vehicle’s protection. Fast Quote is different from other Mechanical Breakdown Protection Programs: • A single rate card is all credit union employees need to quote coverage, making it simple to sell. • The simplified pricing model includes all vehicle surcharges, which means there are no extra charges for AWD/4WD, Turbo or even special electronics. • Mercury’s Fast Quote program offers three levels of coverage: • Platinum – Factory-like named exclusion coverage for virtually all mechanical and electrical components unless the part is specifically listed as “not covered.” • Silver – Named component coverage that covers nine core component categories including many mechanical and electrical components. • Copper – A powertrain plan with certain additional named component coverages. • Mercury’s new Fast Quote Mechanical Breakdown Protection covers no less than 15,000 miles of driving per year, compared to the industry norm of 12,000, further protecting a credit union’s auto loan. All coverages are add-on to the existing miles on the odometer. • Mercury’s Fast Quote program covers seals and gaskets, exceeding industry standards. Copper seals and gaskets coverage is in conjunction with a covered component repair. Additionally, there’s no limit to the number of claims that can be made, and all plans are standard $0 deductible per visit. Credit union members also have sixty (60) days to try the program or cancel and receive a full refund (less the cost of any claims). To learn more about Fast Quote, email mbpmarketing@ mercuryinsurance.com or call at 1-800-654-8455 ext. 41013.

october 2016

insight

industry news

West Bend Mutual Insurance Company Raises $644,000 for MACC Fund

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october 2016

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