POLICY FALL 2019

POLICY FALL 2019

Oklahoma’s Magazine

INTRODUCING

JEFF BURTON,

INCOMING CHAIRMAN

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24

FALL 2019 | VOL. 58 NO. 18 EDITORIAL STAFF PUBLISHER Denise Johnson, CIC

MANAGING EDITOR Jerri Culpepper GRAPHIC DESIGNER Brandy Akbaran

PROFESSIONAL STAFF

PRESIDENT/CHIEF EXECUTIVE OFFICER Denise Johnson, CIC CHIEF OF STAFF AND OPERATIONS Josh Reasnor WORKERS’ COMP PROGRAM ACCOUNT MANAGERS Susan Starr MEMBER ENGAGEMENT AND OPERATIONS DIRECTOR Kortney Wahkinney SPECIAL EVENTS DIRECTOR AND PARTNER SALES AMBASSADOR Shania Slavick SPECIALTY LINES PROGRAM ACCOUNT MANAGER Cindy Munden, CISR E&O PROGRAM ACCOUNT MANAGER Cheryl Lyman

POLICY is the official publication of the Independent Insurance Agents of Oklahoma. POLICY is published quarterly and distributed to all member agencies and other interested parties in Oklahoma. Manuscripts and contributions are welcome and will be considered for publication at the discretion of the IIAO Publications Committee.

Correspondence and advertising inquiries may be addressed to IIAO, P.O. Box 13490, Oklahoma City, OK 73113.

Ph: (405) 840-4426 or 1-800-324-4426

28

21

COVER

COLUMNS

24 INTRODUCING JEFF BURTON, INCOMING CHAIRMAN

4 BETTER TOGETHER Jeff Burton, Chairman

FEATURES 17 HEAVY HITTER – JOHN MELTON

7 WHAT DATA CAN SHOW US Denise Johnson, CIC 12 REGIONAL AGENCIES AND VARYING DUTIES OF CARE Tom Cooper

28 UNLOCKING THE 17 POWER OF STAFF-DRIVEN YOUNG AGENT FINDS AGENCY GROWTH HIS NICHE Jake Bramlett 34 NEWSMAKERS 19 LEGISLATIVE ADVOCACY AT WORK FOR YOU Gerald Keeton 22 GET READY FOR ELECTRIC SCOOTERS Glen Mulready

Select graphics courtesy of depositphotos.com and freepik.com

Visit iiaok.com

FALL 2019

POLICY 3

BETTER TOGETHER

Jeff Burton, CIC, CPCU, CRM

CHAIRMAN

W

hen I review the Big I of Oklahoma’s updated Vision and Mission statements, it’s quite evident to me that the purpose and goal is “spot on” for all members.

We have a fantastic state association executing our mission and working toward our vision that is a leader among state associations. Denise Johnson, our president and CEO, is highly respected by her peers.

She is a fearless leader, innovative, and focused on our future. In addition, our association staff supporting and executing our mission is outstanding!

When members actively engage and communicate with the association, and not just utilize the resources and services the association provides, everyone benefits.”

While we have much to be thankful for, our association can provide even more value for our members! In these next few paragraphs, I will strive to gain not just your agreement, but your engagement that is necessary to achieve this next step up in value.

I’ll begin by describing just a few examples of the many challenges common to us all.

Changing Risks, Markets, and Competition. The pace of industry change continues to accelerate. Insurers and wholesalers regularly modify and hone their offerings, policy lines and desired industries and classes of business. Many 4 POLICY

insurers and wholesalers have found opportunities in specializing in either a policy line or an industry. For agencies to stay abreast of product and personnel changes within these markets is a challenge in and of itself.

Technology advances and societal change adds to the challenge of new and evolving risk (e.g., cyber, active shooter).

To stay ahead of these issues and educate agency personnel and clients is challenging.

In addition to our regular competitors, there are also new competitors and new distribution models. Just one example of the newest entrants is insuretech markets.

Technology. Successfully managing an agency requires a high level of administration, record keeping, compliance processes, reporting and activities that are all managed via various technology platforms. The proficient use of these platforms is critical to an agency’s financial success. Measuring an agency’s productivity and efficiency in utilizing its own technology can be daunting.

Despite the pivotal role of technology in our business, we often fail to gain the full advantage it can provide.

Technology has also influenced the buying public by creating new and different expectations for their buying experience, as well as how their insurance program is administered. Meeting these demands is another example of how technology in general is an ongoing challenge.

FALL 2019

Finding and retaining talent. It is often difficult for insurance agencies to find the talent it needs. There’s a relatively small pool of people with an insurance background or an interest in the industry. This means we may have to hire people who are new to the industry and educate them from ground zero. Once on board, we have to find ways to motivate and retain them while they learn the ropes. There is a constant risk they may lose interest while waiting to experience the full rewards of our profession. Creating effective career paths are crucial for employee retention. Generational differences contribute to this challenge. Sometimes, agencies must also grow in order to create opportunities for newer team members to advance.

Perpetuation. Many of our member agencies have owners, producers and staff at or near retirement. Developing timely and smooth exit strategies that limit disruption of their client base while allowing for continued agency growth is critical.

Finding and attracting individuals with the right skill set and cultural fit to follow in the footsteps of owners and producers is difficult. Plus, it’s often challenging to create a compensation model which is equitable and attractive to both parties.

Despite the gravity of these and other challenges, they also represent potential areas where our association could bring additional services and value to members in the future. But to do that requires increased engagement and feedback by a greater percentage of members.

When I think about our most active and engaged members, they’re often from the most successful agencies. That correlation is not by accident. They

FALL 2019

are more than members; they are partners and collaborators. They are consistent high users of the association’s various resources and services, and they are actively involved in the shaping of the resources and services the association offer.

When members actively engage and communicate with the association, and not just utilize the resources and services the association provides, everyone benefits. Members benefit through resources and services that address their needs and help them grow. The association benefits by gaining a better understanding of member needs and how to meet them. By exploiting the association’s resources and services and by keeping a dialogue open about members’ needs and feedback about resources and services provided, continuous improvement and additional member value occurs.

Our association gets better and stronger.

The extent to which we all get involved and more engaged equips our association to provide better education, legislative advocacy, innovative concepts and practical solutions, build a stronger community, and expand our industry’s career opportunities.

Efforts to better understand member needs are underway by our association. I encourage us all to share challenges and needs we have that are beyond what we may have once thought the association could help us address.

We truly are… Better Together. n

POLICY 5

WHAT DATA CAN SHOW US

I

recently returned from a conference with my peers in the IA association world. We gather annually to discuss the future of associations in the insurance industry. We’re all different, yet we’re are the same in many ways.

In today’s culture, we are seeing the use of data as a crystal ball to see the future. Data can show us many things, including:

Denise Johnson, CIC

PRESIDENT/CHIEF EXECUTIVE OFFICER

In today's culture, we are seeing the use of data as a crystal ball to see the future.

• Measure email marketing performance • Analyze member retention • Leverage Marketing Automation • Demographic Breakdown • Optimize Expenditures on Marketing • Identify Revenue Opportunities At our Fall Conference in November, we’ll have a presentation pertaining to the use of data in your agency.

As with our Association, data can be the path by which you make your future decisions. Be sure to mark your calendars for Nov. 12 at the Reed Center in Midwest City.

In July, we transitioned to our new board with Jeff Burton taking over as chairman of our Association. Jeff has

MARK YOUR CALENDAR! Register at iiaok.com/education FALL 2019

been a face in the Oklahoma Insurance industry for many years and has served on the company and agency side. He has incredible insight to the business but understands the importance of what we do as an association. He is featured in this edition of POLICY – I think you’ll find his story very interesting. When you see him, be sure to thank him (and all of our board members) for the service. Our leaders are great resources for our organization and the industry.

As always, we have SO much going on. Education classes are always ongoing and available for you and your staff. We also have a plethora of products and services to benefit your agency. n

Sept. 4 – CISR Commercial Casualty I (OKC) CE: 7 credits Sept. 5 – CISR Commercial Casualty II (OKC) CE: 7 credits Sept. 18-20 – CIC Commercial Casualty (OKC) CE: 16 credits Oct. 16-17 – James K. Ruble Seminar (Stillwater) CE: 16 credits Dec. 4 – CISR Insuring Personal Auto Exposures (Tulsa) CE: 7 credits Dec. 5 – CISR Insuring Commercial Property (Tulsa) CE: 7 credits

POLICY 7

OkPAC CONTRIBUTORS OkPAC is IIAO’s political action committee. It provides financial support for state elected officials who will provide support for or have shown support of issues affecting the insurance industry and to those who share our business philosophies. Only individuals or partnerships can make contributions to OkPAC. Under Oklahoma law, OkPAC can accept no contributions from corporations.

2019 Bob Bramlett Mark Carlin Jerrad Coots

David Eaton Patricia Gillespie Gerald Keeton

Mark McPherson Stephen M. Poleman Sara Bradshaw Ray

Candice Richardson TJ and Ashleigh Riley Michael Ross

Daniel L. Somers Richard Teubner Ryan Teubner

InsurPac CONTRIBUTORS InsurPac is IIABA’s political action committee. It pools the voluntary and individual financial contributions of thousands of independent insurance agents to help elect candidates to Congress who share IIABA’s business philosophies. InsurPac is the largest property-casualty insurance industry PAC in the country.

2019

Stewart Berrong Kent Bradford James “Jake” Bramlett Robert Bramlett Jr. Travis Brown Jeff Burton

Mark Carlin Scott Cornelius William Evans David Gammill Candace Graham Vaughn Graham

Charles Harris Tony Holmes Denise Johnson Gerald Keeton Mark McPherson Steve Payne

Steve Poleman T.J. Riley Michael Ross Jane Seals Daniel Somers Joe Strunk

Richard Teubner Ryan Teubner

Contributors as of 7/31/2019. Only gifts of $100 or more are listed.

Is your name not on the list? Use the contributor’s statement on the back of this page to donate.

National Security has been Insuring your world for over 60 years.

National Security has provided competitive, affordable insurance to policyholders for over 60 years. We also provide our agents with competitive commissions, excellent customer service and experienced company adjusters.

As a Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company. Our agent website provides fast quotes, online policy issuance, and real-time policy information. Find out more about our products by calling 1-800-239-2358 or visiting nationalsecuritygroup.com.

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FALL 2019

POLICY 9

Independent Insurance Agents of Oklahoma P.O. Box 13490 | Oklahoma City, OK 73113 P: (405) 840-4426 | F: (405) 840-4450 | info@iiaok.com

INSURE YOUR FUTURE!

By making a contribution to OkPac, you are investing in the future of independent insurance agents across Oklahoma. Please note: All contributions must be made by PERSONAL check or PERSONAL credit card. Company or Agency accounts cannot be used.

CONTRIBUTOR INFORMATION Name: Agency:

Occupation:

Address: City:

State:

Phone:

Zip:

Email:

Count me in! I want to INSURE MY FUTURE with a personal contribution to OkPac at the following level/amount: (select one) $5,000 - Millenium Level $2,500 - Platinum Level $1,000 - Centennial Level $500 - Gold Level

$250 - Pioneer Level $150 - Founders Level $100 - Young Agent Level Other: $______

I am including a PERSONAL check made payable ot OkPac. I will submit payment online via https://okpac.epaypolicy.com National Support: I want to INSURE MY FUTURE on a national level with a personal contribution to InsurPac in the amount of: $________ I am including a separate personal check made out to InsurPac. Please process my credit card. (Note: Card information may not be provided for OkPac.) Credit Card Number: ____________________________________ Expiration Date: _______ Name on Card: ______________________________________________ CVV: __________ Contributions or gifts to InsurPac and OkPac are not deductible as charitable contributions for purposes of federal income tax. Federal and State law require IIABA and IIAOK to use our best efforts to collect and report the name, mailing address, occupation and name of employer for each individual. Your contribution should be considered strictly voluntary. Any corporate contributions are prohibited.

Declaration: The contribution listed above was freely and voluntarily given by me from my personal property. I have not, directly or indirectly, been compensated or reimbursed for the contribution listed above.

Signature: 10 POLICY

Date: FALL 2015

IIAO LEADERSHIP CHAIRMAN Jeff Burton, CIC, CPCU, CRM INSURICA, Oklahoma City

CHAIRMAN-ELECT Christopher K. Mosley, CIC Mosley Agency Inc., Chickasha

TREASURER Stewart L. Berrong, CIC, CRM Ed Berrong Insurance Agency Inc., Weatherford

SECRETARY Jerrad Coots Burrows Agency, Claremore

STATE DIRECTOR Gerald W. Keeton Cole, Paine & Carlin, Oklahoma City

IMMEDIATE PAST CHAIRMAN Chris S. Floyd, CRM, CIC Brown & Brown Insurance Professionals, Pryor

BOARD DIRECTOR Vaughn Graham Jr., CIC Rich & Cartmill Inc., Tulsa

DIRECTOR Kathy Reeser VIP Insurance, Edmond

COMPANY LIAISON Mark Gruber CompSource Mutual

DIRECTOR Scott Cornelius ECI Agency, Piedmont

YAC CHAIRMAN Jake Bramlett The Bramlett Agency, Ardmore

COMPANY LIAISON Carol Partridge Standard Lines Services

IIAO MISSION STATEMENT As the new voice of the independent agents of Oklahoma, IIAO promotes and provides education, legislative advocacy, innovative concepts and practical solutions, and community and career opportunities.

ABOUT IIAO The Independent Insurance Agents of Oklahoma is the largest insurance trade association in Oklahoma. With more than 475 independent insurance agencies, we represent nearly 3,000 independent insurance agents and their employees and more than 100 company members. IIAO member agencies range in size from one person to some of the largest agencies in the region.

Founded in 1906 as the Oklahoma Association of Local Fire Insurance Agents, IIAO is a result of the consolidation of the Independent Insurance Agents of Oklahoma, Inc. (IIAO) and the Oklahoma Association of Professional Insurance Agents (OAPIA) on Jan. 1, 1992.

IIAO policy is set by a board of directors elected at the annual conference. Policy is implemented by a professional

staff located in Oklahoma City. IIAO’s mission is carried out through a variety of programs designed to enhance the business of independent insurance agencies.

IIAO is an active advocate on behalf of independent agents before legislative, regulatory and judicial groups in Oklahoma and at the federal level.

IIAO is affiliated at the national level with the Independent Insurance Agents and Brokers of America with offices in Alexandria, Virginia, and Washington, D.C. IIAO is an excellent source of information through POLICY magazine, published quarterly, and the Oklahoma Agent, a monthly newsletter of time-sensitive material for its members.

REGIONAL AGENCIES AND VARYING DUTIES OF CARE

Tom Cooper, Attorney at Law PIGNATO, COOPER, KOLKER & ROBERSON, P.C.

I

n my most recent article, I discussed our state’s fledgling medical marijuana industry and touched upon some of the unforeseen consequences of an insurance agency dabbling in an industry that is still searching to define itself (which includes the fact that the 10th Circuit Court of Appeals recently determined that the operator of an insolvent cannabis dispensary cannot seek bankruptcy protection because cannabis is still, in the eyes of the federal government, a Schedule I drug).

The point of this article is not to criticize the obvious trend we see with smaller agencies being bought and/or absorbed by larger ones. The point is that, with the ever-growing list of agencies which are indeed regional – i.e., those with offices and producers and clients in several states – it is wise to step back and take note of the different standards of care a producer might be held to, depending on the state in which he or she is doing business.”

I had hoped and expected to find some real-world examples to share with you in which agencies had been sued as a result of a cannabis client having an insurance claim denied as a result of being engaged in an “illegal” activity. Although I am confident those types of cases are coming,

there is still nothing published – at least not that I can uncover. So, until some unfortunate agency is dragged through the litigation mud on a cannabis case which results in a published decision, I will move on to other topics.

I recently received an assignment from an E & O insurer to represent an agency I had done some work for in the past. It is a relatively small agency, in a mediumsized Oklahoma town, with four or five producers and an equal number of staff.

I had developed a good relationship with the owners of the agency during my prior assignments, and just assumed when I got the assignment that everything – the agency decision-makers, the organization of the customer files, the workflow in the agency, etc. – would be the same as before.

But, when I looked closely at the contact information for the guy at the agency I was asked to report to, I was thrown off. Even though the name of the agency still appeared to be the same as it was in years past, his email address was for some company I had never heard of.

You can probably guess the rest of the story. The small, friendly, non-megacorporate agency I had grown to know and love had been consumed by a large regional agency. Most of the agency personnel were the same, and the name had not been changed, but there was definitely a new set of decision-makers for the agency, and they were definitely not continued on page 14

12 POLICY

FALL 2019

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REGIONAL AGENCIES AND VARYING DUTIES OF CARE

continued from page 12

"In short, a regional insurance agency may find itself and its producers subject to a variety of standards of care, and it would be wise to educate itself about the differences."

local. It took some getting used to, but we managed to defend the case just fine.

The point of this article is not to criticize the obvious trend we see with smaller agencies being bought and/or absorbed by larger ones. The point is that, with the evergrowing list of agencies which are indeed regional – i.e., those with offices and producers and clients in several states – it is wise to step back and take note of the different standards of care a producer might be held to, depending on the state in which he or she is doing business.

You have likely heard me say (or write) it before: In Oklahoma, a producer has a duty to properly procure the coverage that is specifically requested by the customer (as well as coverage mandated by law). Vague requests by the customer for “full coverage” and the like will not suffice, and there is no duty to “advise” a customer as to which coverages to purchase. That said, if the customer can establish a “special relationship” with the producer (on the level of a fiduciary), or if the producer held himself or herself out as an expert or “risk manager,” then the standard of care can be heightened (which means there is less chance of prevailing at trial). Some states have a standard of care that is even more protective of producers, while others have a heightened standard of care as a baseline.

Sticking to states in the southwest, south central and southeast, it appears that Arkansas and Missouri are very similar to Oklahoma in that there is no duty to advise as 14 POLICY

customer unless a “special relationship” can be shown, and such relationship is difficult to establish.

New Mexico, Texas and Louisiana have a similar rule in that there is generally no duty to advise a customer as to coverage needs, but the exception – i.e., demonstrating a “special relationship” that would give rise to a duty to advise – is easier to prove.

Colorado, Kansas and Mississippi have a type of hybrid approach. In those states, there is no duty to advise a customer as to coverage needs unless a special relationship exists, but whether such relationship exists will be determined on a case-by-case analysis.

In contrast are the extremes. There are a couple of states (Utah and West Virginia are the closest to Oklahoma geographically) that are strict “order taker” states, meaning that there is simply no duty to advise a customer. It is up to the consumer to determine what he/she/it needs, and it is up to the producer to make certain that the insurance product that was ordered is actually delivered by the insurer. But, in other states such as Arizona and Alabama, the courts have determined that a producer has an advisory role similar to that of an attorney or accountant. In order to comply with the standard of care there, an agent must inform the customer about the existence and advisability of additional types and limits of coverage.

In short, a regional insurance agency may find itself and its producers subject to a variety of standards of care, and it would be wise to educate itself about the differences. n FALL 2019

We’d like to thank our 2019 Partner Program participants for their continued support of our association.

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BriteBee ♦ Farmers Alliance Companies ♦ Specialty Insurance Managers of Oklahoma, Inc. ♦ Phoenix Restoration ♦ ProducersXL ♦ Hallmark Specialty Personal Lines ♦ Leavitt Group ♦ Worth Casualty Company ♦ ePayPolicy ♦ GAINSCO Auto Insurance ♦ Risk Theory ♦ Philadelphia Insurance Companies ♦ AMERISAFE ♦ Patriot National Underwriters, Inc./Old Glory Insurance Company ♦ AmWINS Group ♦ Employers Inc. ♦ AutoGard ♦ AmTrust ♦ Traders Insurance ♦ ServiceMaster Restore by RSI ♦ Builders & Tradesmen’s Ins Services Inc. (BTIS) ♦ MJ Kelly Company ♦ AF Group ♦ Risk Placement Services, Inc. ♦ EMC Insurance ♦ BITCO Insurance Companies ♦ Markel Specialty Commercial ♦ RT Specialty - OKC ♦ Heartland General Agency ♦ Southwest Risk, LP ♦ Equity Insurance Company ♦ ICW Group ♦ Normandy Insurance Company ♦ Pennsylvania Lumbermens Mutual Insurance Company ♦ Applied Systems, Inc ♦ Union Mutual Insurance Company ♦ Berkshire Hathaway GUARD Insurance Companies ♦ Houston International Insurance Group (HIIG) ♦ Method Insurance Services ♦ Atlas Financial Holdings, Inc. ♦ Commercial Insurance Underwriters, Inc. ♦ Agency Matrix ♦ McGowan Companies ♦ Falcon FALL 2019

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16 POLICY

FALL 2019

YA CONFERENCE OFFERS OPPORTUNITIES

W

e have just wrapped up our Young Agents conference, and I hope fun was had by all.

Your Young Agents Committee carefully chose this year’s speakers to cover topics that were new to us.

First we had a panel that included IIAO President/ CEO Denise Johnson, past IIBA and IIAO Chairman Bob Bramlett and Vaughn Graham. The panel covered topics including OK PAC, Insure PAC, Trusted Choice and involvement in Young Agents/IIAO. We also welcomed Jody Styles, president of Cross Pointe Insurance Advisors. Jody is not only a licensed agent with many years of experience, but also an attorney, receiving his juris doctorate from the University of Arkansas. Jody covered the topic of risk management from the legal perspective and his presentation was fantastic.

Next we welcomed Greg Porter, with Selective Insurance, who is an expert in flood insurance.

Selective’s flood program is endorsed by the Big I and called “Big I Flood.”

Our keynote speaker, Kevin Kloesel, is a meteorologist with the University of Oklahoma. Kevin gave us an eye-opening presentation on the weather, weather technology and how we still have a need for meteorologists even with today’s technology.

Jake Bramlett

YOUNG AGENTS COMMITTEE CHAIRMAN

“I encourage everyone to become involved in the IIAO and Young Agents; there is no better investment than time spent building our profession and spending time with peers.”

I want to thank you for allowing me to serve as your Young Agent chairman for 2019-2020. If I can answer any questions, please feel free to email me at jbramlett@bramlettagency.com. I encourage everyone to become involved in the IIAO and Young Agents; there is no better investment than time spent building our profession and spending time with peers.

Last, if you have not yet, please make your annual contribution to OK PAC and Insure PAC. Your contributions will go to fight legislative issues that directly impact the independent agent. n

We also had lots of fun activities such as a corn hole tournament and a golf tournament, and cocktails and conversation were enjoyed by all.

FALL 2019

POLICY 17

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LEGISLATIVE ADVOCACY AT WORK FOR YOU

M

y last two articles have dealt with a new Big I program called Big I Hires. This is an excellent program and has been very successful in helping agencies find and obtain a staff that is qualified to sustain and perpetuate us into the future.

I will shift gears somewhat and talk about legislative and regulatory advocacy.

If you have ever questioned what happens to the dues that you pay to IIAO, I would like to present an excellent example of how your dues dollars work. When you pay your dues to IIAO, a portion goes to IIABA to support our national office, which includes our government affairs efforts. Charles Symington, vice president of external, industry and government affairs in the Washington, D.C., office of IIABA, worked very closely with the legislators in crafting the recent tax reform bill and is solely responsible for the favorable tax treatment of pass-through entities. Insurance agencies would not have been the beneficiary of this and would not have been included in the pass-through exemption without the efforts of Charles Symington. This is truly your dues dollar at work and goes hand in hand with the donations that we make to InsurPac. A short five-question survey was conducted to see the financial effect of this new legislation directly effecting the amount of tax that is paid. The first question was “Did your agency see a benefit on your 2018 taxes because of the new tax law?” Of the 606 respondents, 64% said “yes”, 18% said “no” and 18% were not sure. The second question asked, “How is your agency organized?” Of 599 respondents, 72% were Passthrough, 23% were C-corps and 5% were other. The next question was “For those agencies organized as C-corps who saw a tax reduction, how much was saved?

FALL 2019

Gerald Keeton

STATE DIRECTOR

51% saved $1,000 to $5,000, 21% percent saved $5,001 to $15,000, 15% saved $15,001 to $25,000, 6% saved $25,001 to $50,000 and 7% saved more than $50,000.

The last question was “For those agencies organized as pass-throughs who saw a tax reduction, how much was saved?” 34% saved $1,000 to $5,000, 29% saved $5,001 to $15,000, 15% saved $15,001 to $25,000, 15% saved $25,001 to $50,000 and 7% saved more than $50,000.

This is pretty amazing and put real dollars back in the agencies and pockets of those who own them.

A discussion of taxes is typically not a particularly riveting topic, but I present the results of this survey to reinforce the fact that your association is at work for you, both locally and on a national level. IIAO is at work at the state capitol reviewing the legislation presented in attempt to police any unfavorable legislation while encouraging new laws that help our industry and our state. The recent passing of the workers comp legislation, Affidavit of Exempt Status is an excellent example, so don’t forget to make your contribution to OkPac along with your contribution to InsurPac, which works on a national level.

In short, these are examples of how your state and national associations are at work for you. While there are many other examples of how these memberships add value to your business, this tax saving is real money that obviously has had a very favorable effect on many of our members. n

POLICY 19

2019 HEAVY HITTERS™ PROGRAM

A Commitment to Young Independent Agents

Take the Swing!

2019

Together, Your Future is Our Future 2019 Heavy Hitters Program Union Standard is committed to working with young independent agents because their future is our future. Investing in the education and development of the next generation of agency professionals will help move you up the leaderboard. Our Heavy Hitters Program will provide the support necessary to achieve the real goal of a hole-in-one in mutual success.

We recognize the need to foster new talent to perpetuate the independent agency system, as well as provide our best young agents an even greater competitive advantage.

Interested in participating in our Heavy Hitters Program?

Do you want to own the leaderboard?

Contact our local office today!

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YOUNG AGENT CREDITS HIS SUCCESS WITH AN ABILITY TO RELATE TO OTHERS

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B

JOHN MELTON PRODUCER, RCI INSURANCE AND BONDING

efore entering the insurance business, RCI Insurance & Bonding agent John Melton pursued several other lines of work. The coolest? Serving as a boom operator on a KC-135 Stratotanker while serving in the U.S. Air Force. While he didn’t become the pilot he’d aspired to be as a young man, he still considers this endeavor “a dream fulfilled.”

He also worked as an electrician for about a year and a half. Tongue in cheek, he shares that “I like to tell my electrical clients I am a much better insurance agent than electrician.”

Melton also spent time working in the area of industrial supply sales. His first job, at age 16, was working at a golf course in Verdigris, Oklahoma.

Melton, a Tulsa native who was raised in Claremore, attended Rogers State University and the Community College of the Air Force, where he earned a degree in transportation management.

In 2015, he was recruited into his first job in the industry – as an agent – by his current boss, Kyle Beggs, at RCI Insurance & Bonding in Claremore.

Like countless Young Agent awardees before him, Melton lays the credit for part of his success at the feet of several of his mentors, among them Mick Cottom and Kyle Beggs at RCI and Michelle Lange at Rich and Cartmill. Noting that RCI writes a lot of business with Union Standard, Melton says both he and his employer have benefited from their “great relationship with their current and past underwriters and marketing teams.”

“I appreciate having friendly competitors who I can call with questions and vice versa,” he notes.

Success is achieved on many fronts, and Melton acknowledges the necessity of growing his knowledge base through continuing education. “I feel that it is very important to always be learning in this industry,” he said.

FALL 2019

“I learn something new daily. If you aren’t continuously moving and seeking improvement, you are only hindering yourself in the future.”

Melton plans to get involved in insurance-related organizations, both for the networking and educational opportunities they provide, but to hone his leadership skills.

He currently is a member of the Oklahoma Agents Alliance.

Outside of insurance, he serves on several NPO boards.

The Young Agent acknowledges that being an insurance agent isn’t a calling for everyone. “I have seen a lot of young agents come and go,” he said. “This career isn’t for everyone, but if you have the mental fortitude to put your head down and go to work, this can be one of the most rewarding careers out there. This career allows for unmatched flexibility, and one hell of a lifestyle. I love it.”

Melton cites keeping up with technology as his biggest challenge. “I’m a little old-school in how I operate. I am definitely not good at troubleshooting computer issues. If I could get my home office 3-in-1 printer to work right, I think that would be a big win for me!”

On the other hand, Melton believes he brings to the table an innate character trait that has served him well as an agent: the ability to relate with others. “I am proud that I can relate with the guy sweeping the floor in a manufacturing shop as much as the guy who owns it. It’s because I’ve been the guy sweeping the floor. It doesn’t feel like it was that long ago.”

As he enters into the next phase of his insurance career, Melton says his short-term career goals are to build up his book and to invest in more real estate.

A single dad, Melton enjoys spending his nonwork hours with Olivia, 2. Outside interests include “traveling, anything outdoors, aviation, giving back to other veterans who may be struggling, and trying to get rid of my ‘Dad Bod’ by working out.”

POLICY 21

GET READY FOR ELECTRIC SCOOTERS: WHO IS RESPONSIBLE?

Glen Mulready STATE INSURANCE COMMISSIONER

W

hether you’re on vacation or zooming around your own town, electric scooters are flooding city streets. These rental scooters can be found along the curb in hundreds of U.S. cities, including Oklahoma City, Tulsa, Norman and Stillwater. Before you download the app and hop on, there are a few things you should know to protect yourself.

According to Consumer Reports, eight people in the United States have died while using a rentable e-scooter since the

Your personal health insurance could help defray the cost of medical bills in case of an accident. But what if you are riding a scooter and you hit a pedestrian, damage someone’s property or cause a car accident? fall of 2017. One of those deaths was a 5-year-old boy who was riding with his mother in Tulsa in April.

Along with numerous injuries, these deaths highlight the potential dangers of the scooters. Understanding the insurance implications related to electric scooters will help you make responsible decisions.

22 POLICY

Your personal health insurance could help defray the cost of medical bills in case of an accident. But what if you are riding a scooter and you hit a pedestrian, damage someone’s property or cause a car accident?

You might think your auto insurance would kick in; however, most car insurance doesn’t generally cover vehicles with less than four wheels. Homeowner’s or renter’s insurance may cover an accident that occurs on a traditional bicycle, but it does not cover motorized bikes or scooter trips.

The two largest scooter companies in the United States generally place the responsibility for accidents on riders by listing in their rental agreements that riders relieve the companies of liability. You must agree to those terms before you can ride. And despite the scooter companies' liability insurance, responsibility for damages is likely to fall on your shoulders because of the terms and conditions agreed upon when you downloaded the app.

What can you do to protect yourself?

Call your insurance agent. You may be able to add an umbrella policy to your homeowner’s or renter’s insurance policy.

An umbrella policy can cover more scenarios and include higher limits for coverage than a typical policy.

SUMMER 2018

We Do Business the Honest, OldFashioned Way. No answering services. No phone screeners.

Just us, helping you place your difficult risks.

When you call Specialty Insurance Managers, we actually pick up the phone to talk with you.

Call us old-fashioned, but that’s just the way we like to do our business.

• Phone Quotes There are a few other ways to protect yourself on an e-scooter.

• Increased Commissions • Fee Sharing

• Wear a helmet: While it is not required by law in Oklahoma to wear a helmet while riding a scooter or a bicycle, it is highly recommended.

• Friendly Service

• Operate the scooter in right-hand lanes and bike lanes where possible: Your agreement with your scooter rental company will tell you to use streets and bike lanes. Riding motorized scooters on sidewalks is illegal in most cities, and you can be cited for doing so. Know where you can ride before you hop on.

• Keep your eyes on the road: You may be tempted to share photos or video of your new adventure on social media while operating.

Always pay attention to the road.

• Inspect the scooter before you ride: Check to make sure the brakes are working properly before taking off.

Specialty Specialty I’m encouraging all Oklahomans who plan to ride an electric scooter to get ready. Know your coverage. Anticipate what could happen – and know what your insurance will and won’t cover. And most importantly, be careful. n

Specialty Insu Specialty Insurance Man

Insurance Managers of O

Insurance Managers of Oklahoma, Inc.

Call us today at (800) 876-3278 www.simoklahoma.com

FALL 2019

POLICY 23

INTRODUCING

JEFF BURTON, INCOMING CHAIRMAN

By Jerri Culpepper

24 POLICY

A

s incoming board chairman of the Independent Insurance Agents of Oklahoma, Jeff Burton’s goal is “to be a supportive resource and to guide and facilitate the board's efforts to effectively assist the Big I of Oklahoma in advancing the association's purpose and mission by providing quality insight and oversight.”

His second goal is to help the board "effectively communicate and promote the association's value and member-centric vision".

In the coming decade, Burton – whose “day job” is serving as Oklahoma City branch president of INSURICA – believes the Association faces two major challenges: helping members stay ahead of the ever-changing industry, and helping

FALL 2019

COVER STORY

I lean toward a servant leader approach, which assures the resources and environment individuals need to thrive are provided; where individuals are given the opportunity and encouragement to act independently using their skill/knowledge; and where they are given opportunities to grow, develop, and achieve professional goals.

Jeff's wife, Debbie, is also in the insurance business.

The couple enjoy OU sports, music and travel.

members successfully navigate through a generational change that will see the retirement of a highly experienced workforce and transition to a generally younger, less seasoned workforce.

Not surprisingly, he’s proud to take on a leadership position with IIAO. Its strengths today, he says, include its proven legislative influence, its quality education programs, and its insurance products. The Association also benefits from its strong brand – both locally and nationally.

Burton said he believes many members of the association underutilize the association and that is something he hopes to have a positive impact on during his tenure as chairman.

What leadership style will he bring as chairman? “I lean toward a servant leader approach, which assures the resources and environment individuals need to thrive are provided; where individuals are given the opportunity and encouragement to act independently using their skill/knowledge; and where they are given opportunities to grow, develop, and achieve professional goals,” he said.

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POLICY 25

COVER STORY

The Road From Then to Now

A native of West Covina, California, Burton soon transplanted to Poteau, Oklahoma – where his parents were born and raised.

He credits his father, for whom he worked while in his early teens, for inspiring in him an entrepreneurial spirit.

“I knew I wanted to go into something business related – though I didn’t know exactly what. I was influenced by my dad as I watched him open a small business in our garage and eventually quit his regular job to focus on his business,” Burton said. “I admired and appreciated my dad's persistence and hard work, and his belief in himself that allowed him to take a risk.”

While attending the University of Oklahoma, where Burton earned his bachelor’s degree in business administration-finance, he held summer jobs at manufacturing plants in Fort Smith, Arkansas. Those included Whirlpool, Rheem Heating/Air Conditioning, and at Planters Peanuts. His final year in college, he stayed in Norman, working for a contractor building concrete parking lots and sidewalks.

In 1982, Burton joined USF&G as a marketing representative. USF&G (acquired by St. Paul in 1998) was a U.S. property and casualty insurer that marketed its insurance solely through independent brokers and agents. “The official title was Special Agent, which I thought was pretty cool,” he said, chuckling.

“Up to that point,” Burton explained, USF&G would fill its marketing roles with people who had been underwriters. But for whatever reason, USF&G decided to build a marketing force with newbies and teach them, on the job, what they needed to know. My initial territory was Southeast Oklahoma, which is where I was from and familiar. Then, after a couple years, my territory became Northeast Oklahoma until I had the opportunity in 1988 to transfer to USF&G’s New Mexico branch to head up its marketing team. I was there for three years before transferring back to OKC, as the Albuquerque branch was eventually rolled into the Denver branch office.”

In 2000, he joined INSURICA, which is among the 40 largest insurance brokers in the United States and is currently the 23rd largest privately held independent agency in the country.

26 POLICY

“The opportunity presented itself at just the right time, as the commercial products I was marketing to independent agencies in Oklahoma and Arkansas weren’t that competitive. So, I leapt at the chance to join the agency ranks – especially with an agency I knew and respected.”

As Oklahoma City branch president, Burton says he’s “ultimately responsible for assuring we execute our mission while living our core values and meeting our growth and profitability goals.”

His successful transition from the insurer side of the business to the agency side was, Burton says, a critical factor to his current career.

“All subsequent success has been driven by working for an organization with a clear vision and culture which attracts and retains fantastic people who support and believe in our mission and core values,” he said. “I am very fortunate to be where I am today.”

On a Personal Note …

Burton is married to Debbie, who is also employed in the insurance business. In fact, she worked for INSURICA at one time prior to his joining the agency.

They have one son, Justin, 31, who works in the energy industry. The Burtons enjoy OU sports, music and travel.

He also shared one other passion: “Growing up in rural Southeast Oklahoma, a car represented freedom and cruising was a key part of our pastime. So naturally, I am a fan of the era cars we drove in high school. I recently purchased one of my favorite rides –- a '66 Chevelle SS.” n

FALL 2019

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FALL 2019

POLICY 27

FEATURE

Unlocking the Power of Staff-Driven Agency Growth

The hidden potential of results-based talent management

By Tom Baker

P

hil Knight owes his company’s iconic name to his first employee, who suggested calling the new company “Nike”.

Coffee drinkers may wish to thank employee Andrew Frank for their coffee, blended with ice and other various ingredients, usually topped with whipped cream and sauces – better known as a Frappuccino. It was his idea.

GM employee Art Fry had an idea to apply an adhesive to the back of a piece of paper to create a bookmark that kept the place in his church hymnal. He called it the Post-It Note.

Talent management is the single most significant investment for agency owners committed to staffdriven agency growth. It is also the most commonly overlooked. Recognizing and implementing four strategies for results-based talent management creates a "culture of ownership" in which every team member personally acts likes a stakeholder in the agency's growth and success.

28 POLICY

STRATEGY 1: RECRUITING AND HIRING

Attracting and onboarding the right people is the single most dynamic indicator of staff-driven agency growth. The following keys effectively unlock the potential recruiting and hiring staff who bring their own motivation to grow the agency.

KNOW YOUR TARGET MARKET The average age of an agency’s customers will be around the same age as their employees. That’s why it’s a good idea to target applicants who are between the ages of 25 to 35. Targeting this age group often means hiring individuals lacking insurance experience – and that’s a good thing.

Sara Bradshaw with SynerDynamics Consulting says, “After growing up in the insurance industry and leading an agency team, I discovered that lack of insurance experience is not necessarily a liability.

Insurance can be learned but asking an insurance FALL 2019

FEATURE veteran to unlearn the past 20-plus years can be a genuine challenge. Our industry needs fresh ideas that reflect the current millennial-driven market.”

While millennials may present a challenge, they are well worth the investment.

ONLINE PRESENCE AND SOCIAL MEDIA A consistent online presence, including website, Facebook and Instagram, is an agency’s most valuable hiring asset. It’s important to regularly update the agency’s online presence to include: • Staff testimonials on Google Reviews, the agency website and social media. They are “internal customers” and applicants will want to know their level of “customer satisfaction”.

• Photos that demonstrate how staff is recognized and rewarded in the community.

• Photos of everyone having FUN! Show work/life integration, including hobbies and recreational activities as well as fun activities at work.

SAMPLE JOB POST #1 – ACCOUNT MANAGER/CSR The Catalyst Group is an independent insurance agency that is making a difference in the lives of our employees, families and neighbors in north Texas.

Our mission is to create a value-driven, fun, creative and professional environment in which team members feel valued and respected, passionately protect the financial future of our customers and become known as a true source of inspiration and value in our community. The Account Manager/CSR will have a significant voice in the direction of our agency.

This opportunity is for a bi-lingual property/casualty licensed individual with at least two years experience, the proven ability to write and retain business, the commitment to present our value proposition that insurance is not a commodity, the passion to build strong loyal customer relationships and a strong social media network with 500+ friends/connections.

The Catalyst Group offers a performance based compensation plan with the financial security of a salary plus a share of the agency’s revenue growth. Benefits include health care, flexible hours, an office/mobile workplace, unlimited paid time off, delivery/dry cleaning pick-up and delivery, healthy snacks and donating 2% of commission revenue you write to the charity of your choice.

• Photos of the agency and customers making a difference in the community. This is especially valuable for millennials.

Jason Cass is an agency owner and the founder of Agency Intelligence as well as a nationally recognized conference speaker, author and subject matter expert on applying technology for agency growth. He has discovered, “Traditional methods of recruiting and hiring will not attract and retain the level of talent required for staff-driven agency growth. Our online presence represents our brand to our customers, community and prospective top talent.”

RELEVANT BENEFITS When I first introduced the benefits of fresh fruit and snacks to a few of our agency owners, I didn't expect much response. My perspective changed when a customer told me her millennial staff became very excited about receiving this benefit.

Another relevant benefit attracting millennials is providing a way to reduce student loan as staff does their job and fuels agency growth.

Possibly the most innovative benefit gaining traction is unlimited PTO. And yes, that means staff takes off as many paid days in the year as they want and need.

According to Taylor Cotterell, Forbes Council member, “The concept of unlimited PTO may cause confusion and discomfort. Confused employees are likely to just continue as they did before, not even utilizing the full amount of PTO they had been allotted previously.

Some companies that implement unlimited PTO find that employees take less time off than they did before.”

It’s important to remember that “unlimited” does not mean “unplanned”. Agency standards must apply to any PTO strategy.

OUTSOURCING Outsourcing continues to become a significant recruiting and hiring strategy. The mobile workplace empowers owners to expand their talent pool as well as reduce the cost and frustration of finding the right people. Outsourcing includes full-time licensed CSRs and account managers as well as virtual assistants for processing and service work. Providing agency owners with access to dedicated service teams trained in how each agency does business is one of the most continued on next page

FALL 2019

POLICY 29

FEATURE

continued from previous page

important business drivers for agency growth, says Joe Gallegos, CEO and founder of insBOSS – a leading industry provider of virtual assistants providing backoffice automation.

“Our customers are relieved to hand over the responsibility for recruiting, vetting and managing top service talent to our leadership team, which means they get to focus on the bigger picture. Outsourcing gives licensed staff more time for account rounding and building client relationships while continuing to provide top-level customer service.”

STRATEGY 2: INTERVIEWING

Staff-driven agency growth only happens when the right people are on the bus – the concept introduced by Jim Collins in his business classic, Good to Great. The interview process is essential for hiring the “right” person rather than the “best” person. Finding the right person begins with hiring for the “Position,” not the “Person”.

Unfortunately, few owners enjoy the interview process.

In the Harvard Business Review’s article, “The Strategies of Effective Interviewing,” the author, Samuel Trull, notes that “Interviewing remains one of those activities which we think we know all about merely because we have been doing it so long; we have been lulled by habit.”

PRE-INTERVIEW LETTER Ten days before the interview, send the applicant a registered letter outlining what they need to know to prepare for their upcoming interview. The letter can include:

SAMPLE PRE-INTERVIEW LETTER Jane: My team and I are looking forward to the interview on August 1, 2019 at 1:00 PM. For the position of Personal Lines Account Manager. Please review the information below about our agency and the upcoming interview to prepare for our visit.

Catalyst Insurance’s vision “Aleaf Insurance’s vision is to create a team-based culture of ownership in which every employee feels recognized, valued and appreciated and has the opportunity to grow both personally and professionally. Our vision is demonstrated when our community believes we are a committed resource, our customers value loyalty more than satisfaction and our staff is committed to focused, purpose driven attention that fulfills each part of our vision.”

Aleaf Insurance’s mission statement Our mission is to passionately care for our client’s dreams in a way they don’t have to worry about living ins a smaller house, driving an older car or living a lesser lifestyle because they run into something unexpected in life.

Duration of the interview Our interview begins promptly at 1:00 PM. Please allow ninety minutes for the interview.

Appropriate dress code.

Please come in business casual customary for our agency staff.

Please come prepared to discuss the following questions.

1. Why do you want this job?

2. In your own words, please describe the job you are interviewing for.

• Agency’s vision and mission

3. What is an example of a disruptor to the insurance industry?

• Time and duration of the interview

4. Why do our customers love doing business with Aleaf Insurance?

• Appropriate dress code • Questions they should be prepared to discuss such as: 1. In your own words, what is the job you are interviewing for?

2. What is an example of a disruptor to the insurance industry?

5. What can you tell me about our agency, our mission, staff and what our customers value?

Looking forward to seeing you soon. Please let me know if I can help you prepare or if you have any questions.

Tom Baker Aleaf Insurance

3. What can you tell me about our agency, our mission, staff and what our customers value?

4. Why do you want “this job,” not “a job”?

30 POLICY

FALL 2019

FEATURE VIDEO INTERVIEW Dilly Williams, founder of “Inspire a Nation,” believes the first interview should be electronic. His reason is simple – the applicant will primarily serve agency clients electronically, especially by phone.

However, the use of video conferencing is becoming increasingly important. The simplest way to conduct a video interview is Skype or one of the many screensharing applications such as Zoom. You can see the applicant in their own environment and how they prepared for the interview. An applicant showing up with shorts and a T-shirt may not be the idea candidate.

LUNCH INTERVIEW Lunch interviews offer the unique opportunity to learn three revealing aspects of an applicant’s personality and character.

• WHAT IS THEIR EQ? Traditional resumes and interviews can assess professional knowledge and intelligence but fall short in determining an individual’s emotional intelligence. Emotional intelligence can only be tested in the real world.

• ARE THEY POLITE AND CONSIDERATE OF OTHERS? What makes you think the applicant will treat your customers better than the wait staff?

Informal interviews usually bring out our core personalities.

• ARE THEY THE PERSON TO REPRESENT YOUR AGENCY’S BRAND? A lunch interview helps to identify if the individual is someone who represents the agency's vision/brand and determines if their behavior aligns with how the agency does business.

STRATEGIC INTERVIEW PROCESS The interview process is too important to rely on "gut feelings". That is why I recommend a strategic three-part interview process: • PASSION: If the applicant does not inspire you, it’s doubtful they will inspire your customers. Ask questions that reveal if the applicant is looking for “a job” or passionate about “this job.”

• BEHAVIORAL: The second interview focuses on behavioral questions to determine aptitude. continued on next page

FALL 2019

SAMPLE INTERVIEW QUESTIONS Passion 1. Who are three people who continue to inspire you? And why?

2. What do you dream of achieving in life?

3. Give an example of something you do that gives you energy.

4. How lucky are you as a person?

5. Why do you want “this” job?

6. What are some ideas for how agency owners can respond to one of the disruptors in the insurance industry?

7. How do you stay up to date with what’s happening in the insurance industry?

Behavioral 1. What is an example of a personal goal you achieved in the past six months?

2. What is the lowest grade you had in school and why?

3. Give me an example of a failure and how you responded.

4. How would you respond to an angry customer who cursed at you?

5. Tell me about a past coworker. What makes the person memorable?

6. What did you like least about a previous employer?

7. Give me an example of a time where you feel you did not meet your customer’s expectations and how you handled the situation.

8. Tell me about a time you were dissatisfied in your work. What could have been done to make it better?

Aptitude 1. What is the first question you would ask a prospect asking for an auto quote?

2. How would you answer a Millennial’s response that they do not need life insurance?

3. What percentage of your customers need an umbrella policy?

4. How would you respond to a customer asking to keep their auto and home but cancel their umbrella?

5. When would you introduce home and life to an auto quote?

6. Should levels of customer service be different?

7. How would you respond differently to a Millennial and a Boomer?

8. Describe your ideal target customer.

Skills 1. Answer the next 10 phone calls in a unique and memorable way that brands the agency.

2. Role play an angry customer with increased premium.

3. Role play a customer who expects a quote sooner than agency policy.

4. Role play scheduling an account review.

5. Prepare an actual quote.

6. Role play how to document a customer conversation with back-to-back calls.

7. Discuss and demonstrate how you determine what coverage is needed for a new quote.

8. Role play dealing with a difficult customer who is irate over an unreturned phone call.

POLICY 31

FEATURE

continued from previous page

Behavioral-based questions ask the applicant to describe past behavior to determine whether they are a good fit.

• SKILLS: The third interview is “show & tell” providing the applicant the responsibility to demonstrate how they will perform their job.

STRATEGY 3: PERFORMANCE MANAGEMENT

“The number-one reason most Americans leave their jobs is they don’t feel appreciated. In fact, 65% of people surveyed said they got no recognition for good work last year.” (Gallup, Tom Rath and Donald Clifton, How Full Is Your Bucket? Positive Strategies for Work and Life, 2001). If you can’t track performance, you can’t recognize performance.

A popular method of performance management is “self-tracking”. Self-tracking empowers individuals to take responsibility for everything from how many steps they take each day to driving in a way that lowers their insurance premium. The purpose of self-tracking is to facilitate habits developed by "job owners" rather than "job renters". Job owners are personally and proactively engaged in organic agency growth.

These habits become Key Performance Indicators (KPIs) that quantify specific measurable behaviors that steer the agency and fulfill its goals. KPIs also provide a practical way to recognize achievement and challenge opportunities for personal and professional growth.

After seven years recognizing his staff’s achievements, agency owner Brian Bernth of Indianabased Laven Insurance believes, “Results-based performance management is extremely important.

We can't just keep giving staff money for showing up for work every day or paying producers to NOT produce. Longevity doesn't equal a good employee.

When you can explain their value to an agency and how behaviors can generate revenue for everyone in the agency, why wouldn't you use performance-based compensation? We're in our seventh year on the program and it still serves a purpose for all of us.“ KPI-driven performance management provides staff with measurable objectives to evaluate how they perform their job, which also offers management a way to recognize their achievements. After

32 POLICY

SAMPLE KEY PERFORMANCE INDICATORS (KPIS) Account Manager • Ask for Customer Testimonials • Close Out Suspenses On Time • Complete Video Proposals • Personal Growth & Development • Return Phone Calls Per Agency Standards • Schedule Account Review • Send out Thinking of You/Thank You Cards • Sign Customer Up For EFT • Update Contact Information • Write Auto/Home/Umbrella Package • Write New Premium • Write Premium with Preferred Carrier Receptionist • Ask for Customer Testimonials • Coordinate Staff Meetings • Create/Document Processes & Procedures • Get License • Intercept Account Manager Service Calls • Make Daily Bank Deposit • Process mail • Send out Thinking of You/Thank You Cards • Update Contact Information • Update Social Media Sites New Hire Probation for Account Manager • Ask to Schedule Account Reviews • Cancellation Callbacks • Cost/Time Saving Ideas • Get Expiration Dates • Get License • Learn 10 Insurance Terms • Learn a Carrier Product • Learn 10 Agency Management System Functions • Pass License Pre-Test With A Minimum Score Of 80 • Remarket High Value Customers Per Agency Standards Commercial Lines Producer • Attend Networking/Community Meetings • Create Proposal To Review With Customer • Customer Referrals • Deliver Bag of Cookies To Customers • Review Proposals With Prospect/Customer • Establish New Centers of Influence • New Account • New Prospect Conversations • Write Complete Restaurant Package Including Specific LOB • Write New Premium

(Ed. Note: List shortened due to space limitations.)

FALL 2019

implementing results-based compensation in 2013, Angie Almond, office manager for ECI Agency in Oklahoma, observed: "Staff gets paid for results and they know exactly what is expected of them. They can see their progress and know how far they must go to meet their goals. KPIs develop great habits as well.”

STRATEGY 4: RESULTS-BASED COMPENSATION MANAGEMENT

Results-based compensation is differentiated by “ownership” vs “bonus”. Bonuses offer an “opportunity” to receive more money if and when desired. Alphie Kohn is quoted in a 2014 Harvard Business Review article as saying “Incentives ... do not alter the attitudes that underlie our behaviors. They do not create an enduring commitment to any value or action. Rather, incentives merely — and temporarily — change what we do." Bonuses gives staff the option to choose how they will do their job. If they don’t want or need the money, management has given permission to perform at their level of comfort.

Results-based compensation relies on the theory of “psychological ownership,” meaning we emotionally possess an object before we take legal or physical possession. For example, we all tend to get highly possessive once we spot "our" parking place. Challenging ownership of the parking place subjects others to our emotional wrath. Psychological ownership presents staff’s total compensation package as “their money” rather than a traditional base plus opportunity to earn a bonus. It becomes staff’s job to earn the full amount of their compensation plan.

Results-based compensation plans offers the option for three sources of income.

• HOURLY/SALARY: Staff continues to earn their current hourly or salary income. Staff buy-in relies on feeling safe so they can pay their bills and meet their financial needs.

• PERFORMANCE INCOME: Performance Income is earned by successfully achieving an Evaluation Score based on Key Performance Indicators (KPIs) goals and a Maximum Score.

The score is calculated based on the percentage of the KPI goals that are achieved.

FALL 2019

• REVENUE SHARING INCOME: While Performance Income manages staff’s personal accountability, Revenue Sharing is based on corporate or team accountability. The idea of Revenue Sharing is based on JFK's observation that "A rising tide lifts all boats.” When agency income rises, everyone’s income rises.

Revenue Sharing Income is available to all nonproducer staff regardless of their position or license. When the agency achieves its monthly goal, all qualifying staff receives a portion of the agency’s total revenue for the month.

According to Denise Johnson, CEO of IIAOK, “The primary benefit of results-based compensation is it keeps me focused and allows me to set goals that are quantifiable and achievable. It allows me to budget KPI incentives with hopes that all incentives are achieved.

I’m not having to pull numbers out of the air any longer but can allow the employees to grow in the parameters that we’ve set.”

Understanding the dynamic of staff-driven agency growth and results-based talent management begins when owners discover their two options. The first is to manage staff and personally drive the growth of their agency. The second option establishes processes that manage staff, then steps into the role of a leader like a symphony conductor.

Imagine a conductor leading the orchestra. They play no instrument, even though most expertly play multiple instruments. They don’t even make a sound.

Benjamin Zander, musical director of the Boston Philharmonic Orchestra, had a revelation after over 20 years leading musicians. “I have no power. My power comes from making my musicians feel powerful.”

And the proof Zander has done his job? The spark of excitement and ownership in each player’s eyes.

This spark creates vision. Vision releases energy charged with purpose, collaboration and creativity.

This energy powers staff-driven agency growth.

Tom Baker is the CEO of Catalyst Insurance Systems. As an author, speaker and coach, Baker has developed a unique talent management system, Symphony, which empowers agency owners to implement a performancebased compensation system that transforms compensation from an expense to an investment.

POLICY 33

NEWSMAKERS From left: Jeremy Willoughby, insurance agent at VIP Insurance; Kathy Reeser, owner of VIP Insurance; Ellie Scioli; Theresa Scioli, co-owner of VIP Insurance; Terry Lanham, interim director of the Edmond Convention and Visitors Bureau; and Eriech Tapia, marketing director with VIP Insurance

Frontier Country Marketing Association Honors VIP Insurance Being civically minded has paid off for one Edmond company after they were highlighted as an outstanding business by the Frontier Country Marketing Association at its annual award ceremony.

“The judges said that they were pleased to see a partner like VIP Insurance being recognized for their community efforts and participation,” said Sherri Rogers, executive director of the association.

VIP Insurance has been a part of the Edmond community for more than 10 years and strives to bring visitors to the community through its marketing strategies, said owner Kathy Reeser.

“Giving back to our community is the goal we all have at VIP Insurance,” said Reeser, who has a staff of five.

Businesses and organizations from across counties in central Oklahoma were honored at the June 21 event held at the Grand Casino Hotel & Resort in Shawnee.

VIP Insurance was awarded honorable mention by the organization.

“They listed on their entry form that they had hosted and participated in multiple events every year,” Rogers said.

Since the start of June 2018, VIP has hosted more than 11 community-wide events with the aim of giving back to everyone, including increased sales tax for Edmond.

“The community has supported us for 10 years and it just makes sense to give back throughout the year,” Reeser said.

Each July 4th, the company hosts the community by handing out food and other items during Edmond’s Liberty Fest Parade. They also host monthly Lunch & Learns to benefit businesses and individuals.

Another outreach of VIP Insurance is its weekly classes for Irish dancing through McTeggart Irish Dancers of OKC. Frontier Country Marketing Association, a 501-c6 organization, promotes the economic growth of the tourism industry in the 12 central counties of Oklahoma. For more information about FCMA, visit www.oktourism.com or call (405) 364-1191.

Be a Newsmaker | What’s happening in your organization?

Celebrating an anniversary, opening a new branch, or have a staff member who has received an outstanding award? Send us your

news, along with a photo and your logo, so we can recognize those achievements in our POLICY magazine. Please email info@iiaok.com if you have questions.

34 POLICY

FALL 2019

One General Agency Acquires Renewal Rights to Oklahoma City MGA’s Business One General Agency (OGA) has acquired the renewal rights to the book of business previously owned by Oklahoma City-based Acton Inc. (Acton).

Acton President Eric Acton will be joining the OGA staff.

One General Agency (OGA), also based in Oklahoma City, is a managing general agency and surplus lines broker that has been serving the specialty needs of independent insurance agents since 1951. OGA is a family-owned and operated company centered on strong relationships and trust.

It provides markets for commercial transportation, property and casualty, garage, oil & gas, personal lines, professional lines and workers’ compensation risks and represents top-rated admitted and non-admitted insurance carriers in Oklahoma and an expanding number of states.

Acton Inc. is a managing general agency and surplus lines broker that has served Oklahoma independent insurance agents since its founding in 1972. Acton’s area of expertise includes many of the same lines as OGA but has a concentration in larger, more complex accounts, especially in the lines of excess and umbrella, environmental, professional and excess workers’ compensation.

Its markets complement the admitted and nonadmitted insurance carriers represented by OGA. Terms of the transaction were not disclosed.

FALL 2019

FAA Leadership Camp Met With Enthusiasm Some 2,000 high school students, along with 175 collegiate leaders, Future Farmers of America staff – as well as IIAO staff and representatives of the Association’s membership – took part in the State FFA Leadership Camps, held in July at Camp Tulakogee, near Wagoner.

Through a grant from Trusted Choice, IIAO is one of the sponsors for the camp.

In Memoriam We are saddened to pass on the news of deaths of four of our friends and colleagues.

Jerrald L. “Jerry” Luecke James L. Martin Chuck Tippit Thomas Ray "Tom" Webb

POLICY 35

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We cover policyholders in more than 40 states and we have 20 offices strategically located around the country. So when you partner with us, you not only get the stability of one of the country’s top insurance organizations, but you also get a familiar face close to home.

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FALL 2019

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Home Office: Andrew Adams, President aadams@rvuins.com

Arkansas Office Underwriting: Amy Webb, Underwriter awebb@rvuins.com

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Erin Oswald, Underwriter eoswald@rvuins.com

Merdis Burse - Policy Issuance mburse@rvuins.com

Tina Dodd, Underwriter tdodd@rvuins.com

Accounting: accounting@rvuins.com

Rick Dovers,Underwriter rdovers@rvuins.com

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FRED BARKER 405.202.8102 fred.barker@ipfs.com Copyright © 2018 IPFS Corporation. All rights reserved.