wisconsin INDEPENDENT AGENT
Featuring Our 2019-2020 IIAW
Exclusive
Company Sponsors
APRIL 2020
wisconsin INDEPENDENT AGENT CONTENTS 3-16.........Exclusive Sponsor Profiles 17............ Insurance Bartender Prepare Your Agency for the Future 18............Agency Operations 19............ Government Affairs 21............ How to Hire for Success in Sales 23............Food For Thought 26............ Matt’s Mixology Coronarita 26............Members in the News 27............ Virtual University
Independent Insurance Agents of Wisconsin 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com
2019-2020 EXECUTIVE COMMITTEE President: Chris Costakis Midwest Insurance Group LLC, Delafield President-Elect: Darrel Zaleski Spectrum Insurance Group, Eau Claire Secretary-Treasurer: Marc Petersen A merican Advantage - Petersen Group New Berlin
Chairman of the Board: Jason Bott Robertson-Ryan & Associates, Milwaukee
30............ Risky Business - Social Engineering
State National Director: Steve Leitch Leitch Insurance, River Falls
33............ Commentary from Counsel Ransomware Coverage
2019-2020 BOARD OF DIRECTORS
34............ How to Build a Better Hiring Plan
ADVERTISERS & INFORMATION 20..........Western National Insurance 22......... AAA 22......... Erickson Larsen, INC. 23.........Robertson Ryan & Associates 23.........Badger Mutual 24.........Penn National Insurance 25.........DAIS 28..........Prelicensing Schedule 29..........Continuing Education 31..........IIAW Agency Solutions 32..........West Bend Mutual
Mike Ansay Ansay & Associates, Port Washington Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Mike Harrison R&R Insurance Services, Inc., Waukesha Ryan Leitch Leitch Insurance, River Falls Aaron Marsh Marsh Insurance Services, Inc., Rice Lake Joanne Lukas Szymaszek Johnson Insurance Services, LLC, Racine Chad Tisonik HNI Risk Services, LLC, New Berlin Andrea Nelson Unisource Insurance Associates, LLC, Wauwatosa
IIAW STAFF
Matt Banaszynski Chief Executive Officer 608.256.4429 | matt@iiaw.com Mallory Cornell Vice President and Director of Risk Management 608.210.2975 | mallory@iiaw.com Kim Kramp Association and Agency Accounting Manager 608.210.2976 | kim@iiaw.com Trisha Ours Director of Insurance Services 608.210.2973 | trisha@iiaw.com Kaylyn Zielinski Marketing Specialist 608.210.2977 | kaylyn@iiaw.com Evan Leitch Technology and Risk Advisor 608.210.2971 | evan@iiaw.com Jennifer Petersen Membership Engagement and Events Coordinator 608.210.2972 | jennifer@iiaw.com Diana Banaszynski Education Coordinator 608.256.4429 | diana@iiaw.com
35..........Berkshire Hathaway GUARD 36..........IMT
On The Cover...
Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. Š 2020 For information on advertising, please contact Kaylyn Zielinski, 608.210.2977 or kaylyn@iiaw.com.
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Our Exclusive Company Sponsors provide significant support to the IIAW so that we can continue to bring industry leading products, services and world-class events and resources to our members. We thank them for their continued partnership, involvement and support of the independent agency channel! In this issue, learn about how these great companies and the IIAW are positioning the independent agency system for success.
IIAW 2019-2020 EXCLUSIVE SPONSORS PROFILES THANK YOU!
Thank you to our Exclusive Company Sponsors for their support of the IIAW. Without their support, we wouldn’t be able to provide industry leading products and services for our members. If you come across any representatives of any of these companies, please be sure and say thank you for supporting the IIAW and the IA channel.
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EXCLUSIVE SPONSOR PROFILES
Serving AAA Members, even on two wheels. While you’re out enjoying this year’s ride, here’s a refreshing tip for AAA Members: AAA now offers roadside assistance for bicycles. AAA Bicycle Service is a new benefit with every membership that provides transportation for you and your bicycle if it breaks down on your ride. It’s one more way AAA helps members relax and enjoy the ride!
Learn more today! For Information on becoming a AAA Independent Insurance Agent Contact: Leo Plese, Regional Sales Director lmplese@aaachicago.com (630)328-7076 AAA Bicycle Service is available in Florida, Georgia, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Tennessee, Wisconsin and portions of Illinois and Indiana.
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17-IA-2064B
AAA.com/Bicycle
EXCLUSIVE SPONSOR PROFILES
OPEN SEMCI Single-entry, multiple-company interface (SEMCI) is like magic!
Acuity, long recognized as a leader in agency interface technology, is committed to supporting SEMCI in commercial lines. SEMCI drives efficiency in the quote and application process and allows you to choose how you want to do business with Acuity. Acuity currently partners with several of the leading commercial lines insurtechs. We are building, exploring partnerships, or expanding with numerous other independent agency technology solutions. And Acuity is on the forefront of integration technology, continually building the connections necessary to be ready to connect to new insurtechs as they emerge.
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IT’S THE SIMPLE THINGS THAT DIFFERENTIATE US FROM OUR COMPETITORS. We are a strong Midwest regional carrier that values our relationships with independent insurance agents. PRODUCT LINES IMT Insurance offers personal and commercial insurance products to help protect families, homes and businesses. We strive to offer great insurance products and exceptional service for a competitive price. These products include car insurance, home insurance, business insurance, farm liability, umbrella insurance and surety/fidelity bonds. INDEPENDENT AGENTS People buy their insurance from independent agents because they know them, like them, and trust them. That is exactly the reason independent agents do business with IMT. We use our strong partnership with Wisconsin Independent Agencies to meet and exceed the needs of our personal and commercial lines clients.
TECHNOLOGY IS OUR STRONG SUIT Technology is a vital part of our business at IMT and have won awards for our innovative technology. We develop and maintain our own policy systems – all from our home office. Our systems are companytested and agent-approved. In addition, we are committed to helping our agents succeed with resources and content for social media, video and digital advertising. ABOUT IMT IMT is proud of our heritage and will never forget where our roots are firmly planted. Locally run from our home office in West Des Moines, Iowa, IMT has been a Midwest company since it was founded in Wadena, Iowa in 1884. That’s more than 130 years! Today, IMT continues to offer the strong line of personal and commercial insurance products for which it has always been known through Independent Agents throughout our six-state territory – Iowa, Illinois, Minnesota, Nebraska, South Dakota and Wisconsin.
Are you a local independent agent interested in learning more about IMT products and services? Contact Troy Neil at 800-274-3531, x730.
imtins.com | 800-274-3531 wisconsin INDEPENDENT AGENT
APRIL 2020
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EXCLUSIVE SPONSOR PROFILES
BOUTIQUE. INTENTIONAL. RELATIONSHIPS. It’s the meaningful relationships and investment in innovative solutions that make it easy for agents to do business with us.
Come grow with us: Contact Sales Director Cathy Colón at 920.968.9326 or ccolon@imico.com
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EXCLUSIVE SPONSOR PROFILES
You understand your clients. Liberty Mutual Insurance and Safeco Insurance understands how to support them. We know your clients’ needs are unique. That’s why we work with you to customize coverage exclusively for them. Talk to your territory manager or visit LibertyMutualGroup.com/Business or Safeco.com to learn more.
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EXCLUSIVE SPONSOR PROFILES
Creating effortless, personal, respectful and responsive customer experiences Partner with us if you are seeking: • A mutual carrier solely focused on agents and policyholders • Local managers who understand your operating territory • Access to an executive management team eager to get to know you • The ability to have merit-based conversations about decisions impacting your agency • Consistency in underwriting approach • A claims team that dependably earns high service marks • A carrier always seeking ways to make the experience better for agents and policyholders Better and stronger together We offer the strength, product portfolio and automation efficiencies of a super-regional-size, 11-state carrier, combined with the agentfocused, customer-first priorities of a mutual company.
Who We Are In 1919, a Pennsylvania farmer’s association founded Penn National Insurance to provide farm-related workers’ compensation insurance to its members. Today, we do business in 11 states, including a broad variety of business insurance and personal auto and homeowners insurance. And, we changed from an agricultural focus to a service-economy focus. In 2012, we affiliated with Wisconsinbased Partners Mutual Insurance, and continued our tradition of delivering personal attention with a local presence in Wisconsin and Iowa and the regional strength and services of a super-regional carrier. True to our roots, we are still a mutual insurance company, which means we operate for the benefit of our policyholders through providing superior customer service, and bringing innovative products and services to meet the ever-changing needs of the marketplace.
Agents know us as: • Vibrant • Innovative
Diverse array of commercial and personal coverages Penn National Insurance values the relationships we have with our agents as part of the underwriting process and placement of accounts with us. We offer a diverse portfolio of products and services to meet today’s customer needs. In addition to the traditional Commercial and Personal insurance coverages, we offer a wide range of coverage-rich PennPac endorsements. PennPacs provide valuable coverage and limit enhancements on Business Auto, Businessowners, General Liability, Property, Workers’ Compensation and Inland Marine. Some additional endorsements we offer include: Cyber Security Insurance, Monoline Inland Marine, and Manufacturers’ Mechanics’ and Contractors’ Errors and Omissions Liability endorsement. For our Home and Auto policyholders, we offer great coverage at an affordable price, plus many additional coverages you can add at an affordable price that will help you feel secure. For homeowners, we offer Underground Utility, Loss Assessment and Identity Theft coverage. Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin. Contact Vicki Lentz at 262-432-3420, vlentz@pnat.com or Clayton Zogata at 262.432.3422, czogata@pnat.com.
• Resilient • Personable • Bold • Persistent
Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company. Some coverages are not available in all states.
Pictured left to right: Thomas Korber, vice president – Human Resources; Jacquelyn Anderson, senior vice president, CFO/treasurer; Robert Brandon, president; John Foster, senior vice president – Insurance Operations; and Karen Yarrish, esq., senior vice president, secretary & general counsel.
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www.PennNationalInsurance.com
EXCLUSIVE SPONSOR PROFILES
AGENTS OF
invention
A PARTNERSHIP BUILT ON UNLEASHING DATA Independent agent Seth Zaremba has set his agency apart and up for continued growth by blending art and science. Using data sharing and artificial intelligence, he and his team create seamless customer journeys, from acquisition to renewal. He values Progressive for its thought leadership, advanced technology, and consumer insights. Because, when it comes to strategy and innovation, “Progressive is playing chess while other carriers are playing checkers.� AgentsofProgressive.com
SETH ZAREMBA ZINC | BROADVIEW HEIGHTS, OH
Vehicle insurance is provided by Progressive Casualty Ins. Co. & affiliates. Home and renters policies are provided and serviced by affiliated and third-party insurers who are solely responsible for claims. Prices, coverages, and privacy policies vary among these insurers.
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EXCLUSIVE SPONSOR PROFILES
Discover genuine. SECURA isn’t like other carriers, and we’re proud of that. We put the independent agent and your customers - first.
Our independent agents value the long-term partnerships they find with SECURA and our commitment to quality coverage and service. Here are just a few of the reasons they love to work with us. •
•
Genuine people – Passionate, experienced associates committed to excellence and service, both for our agents and policyholders Expansive product portfolio – Broad coverage for Commercial, Personal, Farm-Ag, and Specialty lines
Dave Gross President & CEO
Competitive coverage options SECURA exceeded expectations in 2019 with $728 million in direct written premium, and we’re positioned to continue this trend of profitable growth for years to come. •
Commercial Lines is SECURA’s largest business unit. Our expanding appetite for contractors, retail, restaurants, and numerous other markets offer coverage to fit your clients’ needs.
•
Personal Lines coverage options include our MILESTONE® home and auto package policy, which offers the added security of Roadside Rescuer℠ and Travel Rescuer℠.
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Easy to do business – Committed to agentfocused solutions to help you grow your business
•
Highly rated – Recognized by A.M. Best as A (Excellent) and Ward’s 50, not to mention high marks from agents and policyholders
•
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Motivated by mutual success – We meet our policyholders’ needs best by partnering with experienced, independent agents
Farm-Ag Lines taps the hands-on experience of former farm kids to underwrite farm-ag risks of all sizes.
•
Specialty Lines provides agents and prospects with an admitted carrier option for difficult-toplace business. Clients range from fitness centers to food trucks and special events to nonprofits.
Contact us today secura.net
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EXCLUSIVECOMPANY SPONSOR PROFILES EXCLUSIVE SPONSOR
REGIONAL TIMELINE • 2014: After acquiring Anchor Managing General Agency in Montgomery, Alabama, we created our Regional line of business. Anchor served independent agents and brokers in Alabama and Mississippi.
g professional nships
• 2015: We began expanding business insurance offerings through independent agents in Wisconsin. Our Midwest Region includes offices in Madison and Milwaukee. • 2016: We opened a second Southeast Region office in Charlotte, North Carolina, so we could expand to agencies in the Carolinas, Georgia, and Tennessee.
Building professional relationships Building professional
e, region by region
• 2017: As we continued to grow, we expanded into the Northeast Region, opening an office in Windsor, Connecticut. TARGET INDUSTRIES • Commercial construction
Delivering personal service, region by region
relationships • Commercial real estate • Distributors
WHO WE ARE • Retailers Delivering service, region by region We got our startpersonal in 1904, when members of the Wisconsin Retail Hardware Association formed their own insurance company. Backed by personalized care and powerful conversations, we’ve since grown to • Service industries become one of the largest and most financially secure mutual insurance companies in the nation. With • Manufacturing more than $15.7 billion in assets, a $4.7 billion* policyholder surplus, and an A+ (Superior) rating from A.M. Best, the industry’s leading rating authority, we continue to provide peace of mind for insureds.
REMEMBERING OUR ROOTS More than 100 years ago, when embers of the Wisconsin Retail Hardware we were Hardware Dealers Mutual rance company. Backed by personalized Fire Insurance Company, we experienced staff we’ve since grown employed to becomeanone of the knew and understood mutual insurance who companies in the nation. the hardware industry. Growing into ets, a $4.7 billion* policyholder surplus, and other markets, we continued selling Best, the industry’s leading rating authority, insurance through direct writers. ind for insureds. Today, our standard business lines are handled by knowledgeable, direct sales staff focused on specific e were Hardware Dealers Mutual industries, including dealerships and WHO WE AREFire Insurance manufacturing businesses. enced staff who knew and understood the
We got our start in 1904, when members of the Wisconsin Retail Hardware ther markets, we continued selling insurance Association formed their own insurance company. Backed by personalized AHEAD standard business LOOKING lines are handled by caresaw andanpowerful conversations, We opportunity to use the we’ve since grown to become one of the ocused on specific industries, including same relationship-building approach largest and most financially secure mutual insurance companies in the nation. sinesses. to helpmore new than customers broader With $15.7inbillion in assets, a $4.7 billion* policyholder surplus, and markets around the nation through an A+ (Superior) rating from A.M. Best, the industry’s leading rating authority, independent agents. That’s why we we continue to provide peace of mind for insureds. same relationship-building approach to help new established regional offices to support
Roger Kaland Regional Executive Roger.Kaland@Sentry.com Sentry Insurance Midwest Region
REGIONAL TIMELINE • 2014: After acquiring Anchor Managing General Agency in Montgomery, Alabama, we created our Regional line of business. Anchor served independent agents and brokers in Alabama and Mississippi. • 2015: We began expanding business insurance offerings through independent agents in Wisconsin. Our Midwest Region includes offices in Madison and Milwaukee. • 2016: We opened a second Southeast Region office in Charlotte, North Carolina, so we could expand to agencies in the Carolinas, Georgia, and Tennessee. • 2017: As we continued to grow, we expanded into the Northeast Region, opening an office in Windsor, Connecticut.
TARGET INDUSTRIES • Commercialconstruction • Commercial real estate • Distributors • Retailers und the nation through independent agents. That’s specially selected independent REMEMBERING OURtheir ROOTS • Service industries agents who understand clients’ s to support specially selected independent agents More thanand 100 years industries the areasago, theywhen live in.we were Hardware Dealers Mutual Fire Insurance • Manufacturing
stries and the areas they live in. Company, we employed an experienced staff who knew and understood the hardware industry. Growing other markets, we selling *Assets and policyholder surplus as of Dec. 31, into 2016, and represent the aggregate totalcontinued for all members of the Sentryinsurance Insurance Group and are not reflective of any individual underwriting company. A.M. Best rating as of May 19, 2017. through direct writers. Today, our standard business lines are handled by Property and casualty coverages are underwritten by a focused member of theon Sentry Insurance Group, Stevens Point, WI. For a complete knowledgeable, direct sales staff specific industries, including listing of companies, visit sentry.com. Policies, coverages, benefits, and discounts are not available in all states. See policy for complete dealerships and manufacturing businesses. coverage details. 68-177
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sentry.com
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LOOKING AHEAD 14 APRIL 2019 We saw an opportunity to use the same relationship-building approach to help new customers in broader markets around the nation through independent agents. That’s why we established regional offices to support specially selected independent agents who understand their clients’ industries and the areas they live in.
WISCONSIN INDEPENDENT AGENT
wisconsin INDEPENDENT AGENT
APRIL 2020
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EXCLUSIVE SPONSOR PROFILES
SFM
The right choice Wisconsin employers. in workers’ comp for
Our Wisconsin footprint is expanding Over 1,700 Wisconsin employers
Representing over $1.5 billion in Wisconsin payroll
or
Totaling $31,000,000 in written premium
Our Wisconsin-based full service team is growing Underwriters with broad authority that handle all of your new and renewal business Wisconsin claim personnel with unsurpassed jurisdictional knowledge and expertise
Loss control team of experts in accident prevention, ergonomics, safe patient handling and safety leadership Rehabilitation nurse with extensive knowledge of Wisconsin provider community
Local SFM premium auditor to ensure fair, timely and accurate premium determination
Our Wisconsin commitment has never been stronger Exclusive IIAW Company Sponsor
WCRB Rating and Governing Committee members
IIAW Government Affairs and Carrier Relations committee member
sfmic.com 14
wisconsin 1 SFM WI Indep. Insurance ad-agn-0219.indd INDEPENDENT AGENT APRIL 2020
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EXCLUSIVE SPONSOR PROFILES © 2020 Society Insurance
Delivering more by focusing on less. Small detail. Big difference. Rather than attempt to be all things to every kind of business, we focus on the ones we know best—restaurants and bars, supermarkets, convenience stores, hotels and motels, medical clinics, artisan contractors and auto service shops—to deliver outstanding property, casualty and workers compensation insurance. Deep niche expertise, with insight into unique business risks, is how we cover the details that make the biggest difference to our policyholders. To discuss an agency appointment, give us a call at 888-5-SOCIETY or visit societyinsurance.com.
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West Bend Mutual Insurance Company Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095 Founded: April 1894 Company Web site: thesilverlining.com What sets West Bend apart from other companies? There are many things that set our company apart, but these are the most important: 1. We develop and nurture strong relationships between agents and associates through personal contact, responsible actions, and a genuine concern for our valued partners. We use such means as agency performance programs, continuing education, and advisory boards to strengthen the bonds between agency and company and ensure our mutual success. With senior management, with the underwriting team, with billing, with claims, in fact with our entire company, you simply will not find a more dedicated, personal, community-oriented, and caring group of people. 2. With a broad personal lines coverage package, a full range of commercial products and services, insurance for specialty lines, and bonds, our robust product portfolio provides our independent agency partners with a market for a large percentage of the business they write. 3. Around this we wrap outstanding service. Our associates’ dedication and commitment to providing outstanding service to our policyholders and independent agent partners are the foundation of West Bend’s Silver Lining® brand, The Worst Brings Out Our Best®. Our priorities for 2020 We pledge our commitment to distribute our products through independent insurance agencies. We will continue to work with them to find new ways to meet the ever-changing needs of our policyholders. We know we have to make it easier for our agents and policyholders to do business with us. Our agents can rest assured the focus of our priorities and initiatives are the needs of our customers and our associates. At a time when other companies are paying less attention to relationships with their independent agency partners and choosing to distribute their products through multiple channels, West Bend remains dedicated exclusively to independent agents. – Kevin Steiner, President and Chief Executive Officer
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Prepare Your Agency for the Future “Coming together is a beginning. Staying together is progress, and Working together is success” – Henry Ford During this time, COVID-19 is creating many obstacles for businesses across the country. Whether it requires small businesses to close their doors for the time being or large corporations to activate their disaster response plan, the consequences are creating road bumps for everyone. Governor Evers issued a “Safer at Home” order on March 24th and the OCI has released a variety of recommendations and requirements for insurers. Independent agents are deemed as “essential businesses” (as of the time of this writing) and for the time being, allowed to stay open. However, agencies are encouraged to use their discretion in determining essential functions for essential employees. For example, an agency may determine it is appropriate to close to walk-in visitors, while remaining open for business, and available to consumers through calls and e-mail. Subsequently, non-essential staff with the capabilities to work remote are directed to work from home. The IIAW addressed the issue early by introducing a COVID-19 Online Resource Center (www.iiaw.com/coronavirus), and began sending out “text alerts” when new information is announced or updated online. The team continues to create new resources to assist our members with their operations. It’s critical to stay up-to-date with information and be agile in the changing environment. As you continue to work during the pandemic, here are some resources and considerations for your agency as you implement new policies. IIAW’s COVID-19 Resource Center On www.iiaw.com/coronavirus, you will find IIAW’s COVID-19 Resource Center. Here you will find all of the resources your agency will need to stay educated on the topic and tools you can implement in your agency. The page includes 4 different sections: Communicating to Customers, Agency Considerations for Employees, General Information and Webinars. The page is updated daily to provide our members with the latest news and resources, some of which can be shared with your clients.
Agency Management Systems (AMS) Hopefully your agency management system has a cloud option, app or other online/remote interface (perhaps a VPN connection) that allows staff to enter and retrieve data. If not, this will likely be a vital question for your remote work plan. If your agency doesn’t possess these capabilities, you should develop a system where information is shared with one key contact at your agency who can enter the data. Use an Excel form or other template (Google Sheets is a free online option) that promotes standardization so that there aren’t lapses or E&O exposures created. Then review the data when everyone returns to work. The staff at the IIAW has their AMS and Association Management systems on the cloud. Conferencing To continue having meetings and discussions with your staff, it will be important to set up conference calls, video chats, etc. There are free resources out there like Skype, Google Hangouts, Lifesize and Zoom. Some require downloads of software and may have limits, but your agency can investigate which one may be the best fit. iPhones and Android phones allow “Add Call” as an option for small group conferencing– just select it from your screen (assuming your phone’s service provider allows it). Other options may be conference call services like UberConference or using a free trial from a service like GoToMeeting or Join.Me. The staff at the IIAW uses GoToMeeting. Collaboration Have projects that your team needs to work together on in a shared format? Programs like Slack, Microsoft Teams, Basecamp, Asana and others can give you a platform to communicate, work on files, update project statuses and pool resources. Facebook even has a solution called Workplace. The staff at the IIAW uses Slack. Client Tools
If you haven’t already, join our text alerts by texting “IIAW” to (833) 3840094. You will receive a text alerting you to when important information is announced and uploaded to our resource center.
Your clients will have new access needs as well. Look at the offerings made available by your carriers for client portals apps and other tools. Consider programs like DocuSign for digital signature, ePayPolicy for online payments and other programs that allow remote ease of doing business. The IIAW uses DocuSign and ePayPolicy.
Virtual Learning (CE)
Promote Routines
The IIAW also offers a variety of continuing education classes online. Almost daily, there is a new CE class presented via webinar for agents to stay up to date on their CE credits. You may have employees working from home and unable to work at full-capacity or one of your employee’s license renewal is coming up. This is a great time to allow them to complete all their continuing education credits. Our online CE classes are conducted by professional instructors and accessible on any computer. Don’t let your license expire, take an online CE class with the IIAW!
Try to provide some structure to the group as they learn this new environment. Schedule conference calls for your staff, encourage daily team meetings, have video happy hours, virtual lunches or other social options like virtual games. Suggest people create a specific workspace at home and develop a workday routine.
Go to www.iiaw.com/OnlineCECourseCalendar to view all of the available online CE courses. Remote Access Does your staff have the capability to connect and work remotely? Do they have or can they be provided with a computer at home? Do they have internet access from home? If they can get online, can they access work files? This would be the time to check the “cloud access” of your programs (Ex. AMS), server and files with your IT professional. If you need other options for remote access, consider programs like Logmein, Gotomypc, Remotepc, Teamviewer and others. Need phone access as well? If your agency does not have a VOIP system, it may be difficult to set up call forwarding and other features. Host My Calls are a solution worth exploring. The staff at the IIAW all have remote workstations, a VOIP phone system in place and VPN’s setup on their computers to access work files not stored in the Agency Management System or Association Management System.
>M att Banaszynski
Encourage Strict Cyber Security Measures On top of everything else, cyber security is an even greater concern in times like this. When possible, encourage your staff to use a secure wi-fi connection or set up the security on their home’s internet if they haven’t already. Ask them to be extra vigilant on opening emails and links. Have them confirm any unusual requests like wire transfers or monetary transactions they receive by phone with their supervisor. (Refer to this month’s “Risky Business” article to learn more about Social Engineering) Be a Resource Do what you do best during times of hardship for your clients – be a resource. Try to provide useful information on business continuity, how to apply for government assistance programs, help promote initiatives to support your community and show the power of small business. One platform to consider using to help spread your message and market you and your agency is SoapBox. Please reach out to the IIAW if you need further assistance and have any questions regarding the transition. Remember that www.iiaw.com/ coronavirus will continue to be updated with the most recent news and resources for you to use at your agency. Source: Brian Hunter of the Insurors of “Remote Work Resources for Your Agency” article
CEO IIAW
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Agency Operations
OK Boomers, Slackers, Karens, Unicorns and Snowflakes: Can’t We All Just Get Along? With four primary generations now coexisting in the workplace, it’s not surprising that a few generational feuds are brewing and bubbling. Boomers (born roughly between 1946-1964) mock millennials (1977-1997) for expecting participation trophies and being like Peter Pan (never wanting to grow up), while millennials think Boomers are out of touch. Gen X (19651976), once viewed as the slacker generation, now paints millennials as the new slackers – often referring to them as unicorns and snowflakes who are entitled and difficult to manage. Gen Z (born after 1997) are portrayed as disloyal job-hoppers who are addicted to their phones and unable to handle face-to-face interaction. They have taken to calling Gen X the “Karen” generation – a privileged, irritating and entitled generation brought up by Boomers. All of this back-and-forth sparked this year’s viral two-word dismissal by millennials and Gen Z: “OK Boomer.” The phrase, typically used to respond to anyone over 30 who says something condescending about the younger generations, quickly went mainstream. The backlash phrase implied that Boomers are out of touch and don’t understand millennial and Gen Z culture or politics. Boomers, on the other hand, saw the phrase as an example of ageism. Pitting one generation against the next isn’t new. As Aristotle put it in Rhetoric: “[Young people] are high-minded because they have not yet been humbled by life, nor have they experienced the force of circumstance…They think they know everything and are always quite sure about it.” 18
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No matter where you fall on the generational spectrum, the recent online feud is a good reminder for all generations that there are fallacies in stereotypes and dangers in discounting the contributions, strengths and ideas of others not like you. The next time you’re faced with working with someone older or younger than you and are tempted to brush their generation off with a negative comment, try instead to understand differences. Different doesn’t have to mean bad, so take time to focus on strengths and preferences. Allow their strengths to improve your weaknesses, and vice versa. Each generation is an integral part of successful teams and companies, so ignoring difference and problems isn’t an option, especially today, when Boomers are actively choosing to stay in the workforce longer and millennials make up the largest segment in the workplace. At WAHVE, we started our entire business on the idea that combining the knowledge and skills of the retiring and retired workers with the fresh perspectives of the younger generation is a winning combination. And that’s proven: statistics show that companies that employ an age-diverse workforce have higher productivity, a wealth of new ideas, and a wide knowledge base.
Government Affairs NAIC Model Cybersecurity Bill Advances NAIC model legislation creating cybersecurity standards for the insurance industry is quickly moving through the Wisconsin Legislature. Assembly Bill 819 was approved on a bi-partisan, voice vote in the Assembly and awaits final approval from the Senate in late March. We anticipate unanimous approval when the Senate convenes its final floor period. The legislation creates standards for insurance businesses that will help protect private consumer information from data breaches. Under the bill, businesses are required to conduct risk assessments, develop information security programs based on those assessments, and submit those plans to the Office of the Commissioner of Insurance (OCI). During development of the model legislation last year, IIAW worked with OCI’s legal staff to advocate for an exemption for our members with fewer than 25 employees, or annual revenues under $5 million, or assets less than $10 million from having to comply with the provisions in the bill. The draft model had originally only exempted businesses with fewer than 10 employees. In addition, IIAW worked with the department to ensure that our member agencies would not be directly responsible for cybersecurity events that occur in a system maintained by an outside third-party service provider. The initial draft model had included this burdensome requirement.
any proposals related to data security and privacy take into account existing laws and regulations administered by the Office of the Commissioner of Insurance (OCI). The Assembly has adjourned session without any action on these proposals. See Assembly Bill 870, Assembly Bill 871, and Assembly Bill 872. Gov. Evers Signs Public Adjuster Consumer Protection Bill Legislation brought forward this session by State Representative David Steffen (R-Green Bay) and State Senator Dan Feyen (R-Fond du Lac) will make registration of public adjusters part of Wisconsin law following a recent bill signing by Governor Tony Evers. The bi-partisan legislation, Assembly Bill 357, requires registration with the Office of the Commissioner of Insurance (OCI) for nonresident public adjusters not already registered with their home state. Those registered as nonresident public adjusters will be subject to examination, continuing education and fee requirements. Wisconsin resident public adjuster have the option of registering with OCI and are also subject to requirements in the bill related to contract formation, certain compensation arrangements and professional conduct.
So far, eight states have adopted a version of the NAIC model Law and more like Wisconsin are on the way.
Wisconsin becomes the 46th state to regulate public adjusters in some manner. Matt Banaszynski of the IIAW testified in support of the bill highlighting in his testimony the importance of protecting Wisconsin homeowners from increasing public adjuster scams that have been occurring in the state following natural disasters.
Sweeping Data Privacy Legislation Fails With Industry Opposition
Gov. Evers Signs 45-Day Renewal With Altered Terms Notification Bill
River Falls Republican State Representative Shannon Zimmerman unveiled late in the legislative session three bills he headlined, the Wisconsin Data Privacy Act (WDPA), that would fine companies up to $20 million or assess a portion of their annual revenue if found in violation of rules established in the legislation. IIAW opposed these bills at a public hearing held in February by the Assembly Science and Technology Committee. These sweeping bills, if enacted into law, would have unnecessarily created millions of dollars in added compliance costs for our industry and placed significant regulatory burdens on agents. Furthermore, the legislation overlooks the importance of how innovation, new technologies and the use of data within the insurance industry is benefiting consumers and enhancing marketplace competition. Property and Casualty insurance is a heavily state-regulated industry and it’s important that
Governor Evers also signed legislation supported by the Wisconsin Insurance Alliance (WIA) that shortens the time requirement on personal lines property and casualty coverages from the current 60-day requirement to 45 days on a renewal notification that includes less favorable terms or higher premiums. Twenty-eight states have notice requirements of 30 days or less. Eleven states use the 45-day requirement and five states have a 60-day notification requirement. The WIA had initially asked for a 30-day notice and the final bill as signed by the Governor reflects the good-faith negotiations between the independent insurance agent community and insurance carriers.
>M isha Lee IIAW Lobbyist
wisconsin INDEPENDENT AGENT
APRIL 2020
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How to Hire for Success in Sales Did you know that the average sales employee turnover rate is nearly triple the average employee rate? Turnover in sales makes an impact on the entire organization, and it’s expensive. Sales employees are some of the most vital contributors to a company’s growth and bottom line, and hiring for sales effectiveness is critical. Did you know that the average sales employee turnover rate is nearly triple the average employee rate? Turnover in sales makes an impact on the entire organization, and it’s expensive. Sales employees are some of the most vital contributors to a company’s growth and bottom line, and hiring for sales effectiveness is critical. Yet, leaders continue to find it challenging to hire and develop the right people for these roles, and then keep them there. Hiring for Sales How do you determine if a candidate will be an effective salesperson? While sales effectiveness is not a generalized trait, there are qualities and habits that are greater indicators of success in a sales role. When hiring for sales, you should look for these six traits or the potential to cultivate these characteristics in candidates: • Hyper-focus: Salespeople have many tasks and clients to focus on at once. In order to be successful, they need to be able to prioritize and focus on what is most important. • Active listening: The best salespeople listen to their customers and ask the right questions. • Networking Master: Building relationships is a key element for success in sales. Effective salespeople are able to build trust which improves customer loyalty. • Work smarter, not harder: Successful salespeople follow a consistent process and balance their tasks. They don’t reinvent the wheel when there is already an efficient process in place. • Adaptability: When faced with an unforeseen challenge or obstacle, effective salespeople are able to quickly adapt their approach. • Be prepared: Exceptional salespeople know their product better than anyone. They do their research and are able to anticipate the questions their customers might have. • It’s also crucial to consider sales effectiveness as a function of the tasks themselves, although these tasks will differ across industry and organization. In order to hire the right candidates, start by defining the relevant tasks for your strategy, and reflect those tasks in hiring criteria and a disciplined hiring process. A combination of structured interviews, assessments, and background and reference checks allows hiring managers to observe and predict the candidate’s job behaviors which can yield the best results when hiring for sales. • Talent assessments have become more available and intuitive, which is great news for sales leaders. The Caliper Profile pre-employment assessment, for example, was built to help predict a job candidate’s potential success in the role. The assessment not only measures specific behaviors and competencies, but also uses the data and insights to match candidates to scientifically-validated job models for sales professions. The Caliper Profile also goes a step further to
provide hiring managers with interview questions, coaching recommendations, and training for skills gaps, meaning that it can be used at both the hiring and developing stages of employment. Set Them up for Success Did you know that less than 45% of companies have a formal sales training process? Given the lack of training and development structure in sales, it’s easy to see why the turnover rate is so high. Companies tend to invest more heavily in recruiting and hiring activities than on the processes and programs that focus on developing employees and keeping them engaged. However, investing in training and development will likely improve retention and increase your company’s margin. Professional Development and Productivity Playbooks are a great tool for training employees and creating consistent sales processes across your organization. A playbook ideally contains all the content necessary for your sales reps to succeed, including buyer personas, call scripts, negotiation tactics, and proposal guidelines. Creating a playbook can be very time-consuming and should involve multiple stakeholders throughout your company. However, it is time-saving in the long-run as it allows new employees to be trained more quickly. Additionally, a playbook frees up time for selling. Research by the CMO Council shows that sales reps spend 40% of their time searching for or creating content, and a playbook can help centralize the resources they need. Professional development is integral to individual success in sales and overall retention. When career advancement paths are unclear, sales reps will start to question their place in the company. This is where sales leaders can make an impact by investing in the professional development of their team with a coaching mindset. Effective coaching includes building a plan for your employees, establishing expectations, challenging your staff, and helping them find solutions. By implementing these practices, employees are more likely to become engaged with their careers and increase their overall performance. Sales productivity is the #1 challenge for 65% of B2B organizations and directly impacts a company’s ability to grow and improve its bottom line. Hiring and developing for sales can be difficult, but the right investment in these processes will help you find the most qualified sales candidates and keep them invested in your organization. Caliper can make implementing these processes as simple and seamless as possible. Want to see how our products can help you increase your success in sales? Contact us and we can get you on the right path to hiring and developing more sales effective employees. View Original Article https://calipercorp.com/blog/how-to-hiresales-effectiveness/
>A ggie Alvarez Caliper
wisconsin INDEPENDENT AGENT
APRIL 2020
21
Don’t just join a company, join a club. AAA is a membership-based organization; we’re a club, not just a company. This means we have an entirely different level of commitment to customers. All with an unbeatable combination of savings and security for customers. And the potential for success for you.
Learn more, contact me. Leo Plese (630) 328-7076 lmplese@autoclubgroup.aaa.com Insurance • Membership • Travel • Banking AAA Independent Agents are not employees of AAA The Auto Club Group; but, rather are independent contractors. Insurance underwritten by one of the following companies: Auto Club Insurance Association, MemberSelect Insurance Company, Auto Club Group Insurance Company, Auto Club Property-Casualty Insurance Company, Auto Club South Insurance Company, Auto Club Insurance Company of Florida, or non-affiliated insurance companies. ©2019 The Auto Club Group. All rights reserved. 19-IN-0147
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APRIL 2020
wisconsin INDEPENDENT AGENT
JOIN US, a WI Based Top 100 Agency
Are you or your agency ready for a positive change? Robertson Ryan has been offering innovation through our unique Agent Owner structure since inception in 1960. Time and time again after an agent or agency joins us they say, “We wish we did this years ago.” Our team recognizes the strength and power behind the agent and insured relationships so we’ve built, and continue to fine-tune, a support network rewarding those affiliated with RRA. Find more at, www.RobertsonRyan.com/AgentOwner ...and let’s connect. Call or email me 414.221.0363 or cillman@robertsonryan.com. I look forward to answering your questions!
Chris Illman, CEO
www.RobertsonRyan.com
to Commercial Insurance that understands the Bar & Tavern Industry At Badger Mutual, we take commercial insurance personally. Visit our website today to learn more about a customized package of protection for your customers.
badgermutual.com wisconsin INDEPENDENT AGENT
APRIL 2020
23
In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance. Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers. Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin. Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com
Clayton Zogata 262.432-3422 czogata@pnat.com
• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines product and services with competitive pricing and comprehensive coverages to help our agents grow profitably. • Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans. • State-of-the-art quoting, processing and self-service tools, making is easier and faster to meet your customers’ needs. • Local experienced underwriting, claims and management staff
An Equal Employment Opportunity/Affirmative Action Employer ©2020 Penn National Insurance
Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company.
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IIAW_Ad_Brand.pdf 1
wisconsin INDEPENDENT AGENT
9/16/2019 12:02:52 PM
INSURANCE BARTENDER > Matt Banaszynski
The Coronarita is a drink that seems to defy gravity. You would expect that, when you flip the beer updside down in your cocktail, the mixture would overflow and spill all over the place. But curiously, it all stays in place.
CEO of IIAW
How the Coronarita works has to do with pressure. If you flipped a bottle of Corona upside down normally, the beer would fall out and be replaced inside the bottle by air. But, in a Coronarita, the mouth of the bottle is surrounded by liquid, which prevents air from entering the bottle. The air that is inside the bottle creates pressure that keeps the beer from spilling out into the margarita. But, when you sip on the margarita with a straw, the liquid level in the glass will go down, and the beer inside the bottle will then flow into the glass to make up for the missing liquid.
Matt’s Mixology Coronarita Ingredients • • • • • •
Ice cubes Rimming salt 1 1/2 oz. silver tequila 3/4 oz. triple sec 3 oz. lime sour mix 1, 12 oz. bottle of Corona, Dos Equis, Pacifico, Tecate, Carta Blanca, Modelo or any Mexican beer
Steps to Make It
1. Pour ice cubes, tequila, triple sec, and lime sour mix into a cocktail shaker. 2. Shake the mixture and strain it into a salted pint glass. 3. Quickly flip the beer upside down and place it into the drink, so it dispenses slowly as you drink your delicious Coronarita from a straw. Whether you call it a Coronarita, a Mexican Bulldog Margarita, or a Mexican Car Crash, this tequila-inspired Mexican drink recipe is sure to be a hit with your friends and family. Though this drink is not always served in a traditional margarita glass, it still delivers on the familiar and refreshing flavors of two classic beverages. Perfect for Cinco de Mayo.
News Members in the
SFM receives Financial Strength Rating of A(Excellent) from AM Best SFM Mutual Insurance Co. has received a Financial Strength Rating of “A- (Excellent)” and a Long-Term Issuer Credit Rating of “a-“ from AM Best Rating Services, Inc. The rating was announced in a press release issued by A.M. Best on March 2, 2020. According to the press release, “ The ratings reflect SFM’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. SFM’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorized as strongest, and AM Best expects it to remain at a similar level in future years. The balance sheet strength assessment also considers the company’s low reinsurance dependence, improving liquidity and elevated underwriting leverage ratios. 26
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wisconsin INDEPENDENT AGENT
SFM has generated an adequate level of operating performance, predominantly supported by moderate underwriting gains and a consistent stream of investment income. SFM’s limited business profile is due to the group being monoline workers’ compensation insurers with modest geographic concentration. While the group is licensed and operating in 30 states, it does business primarily in five core states: Minnesota, where it is the market-share leader, Wisconsin, Iowa, Nebraska and South Dakota. “ “We are very pleased to receive this rating from AM Best,” said SFM President and CEO Terry Miller. “We view their assessment of our financial stability as an important indicator of our operation’s excellent performance and practices.”
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ASK AN EXPERT
VIRTUAL UNIVERSITY
Q: Paying the Insurance Premium on Behalf of a Customer If I pay the insurance premium on behalf of a customer and he does not pay me, can I order cancellation from the carrier for nonpayment?
A: No. The insured has the right to cancel the policy, not the agent. From the carrier’s standpoint, the premium has been paid. Fronting money for an insured is always a bad idea for the very thing you mentioned. It’s not a good business practice. You could try to take legal action. ---------That is the problem and issue with paying your customer’s bills. It shouldn’t be done. Better, take him to small claims court – and help the customer find a new agent. ---------I think you just learned a hard lesson – never advance payment. The carrier has been paid, unless you have an agreement (like those used by premium finance companies), you may not be able to force the carrier to do anything. ---------Absolutely the carrier should not and will not reimburse you. First of all, you simply gave an unsecured loan. The carrier has been paid so they cannot cancel for nonpayment. If a friend paid for the client and then didn’t get reimbursed, could the carrier cancel for non-pay? No, of course not. How is this any different? Secondly, and more importantly, you should not be paying premiums for your clients. That is an example of rebating and is illegal in any state I know. ---------Absolutely NOT!!!! ---------NO! NO! The policy clearly states that the only parties who can cancel the insurance are “you” (the named insured”) or the “we” (the insurance company).
---------I think the obvious response is, “why in the world would you do that?” In some states, if paid out of your trust account, you could create a problem since the uncollected money could leave you with an insufficient balance of all funds due your carriers and clients. This does not sound like a good business practice. ---------Since the parties to insurance contracts are the insurer and the insured, with producers as middlemen, if the premium is paid to the insurer and there are no other valid reasons for cancellation, I don’t believe that an agent can legitimately order a cancellation. We all like to trust others, but some sort of written finance agreement, involving a down payment, would be (have been) a much better option.
Q: Unlicensed Individuals Issuing COIs Can an unlicensed agent issue certificates of insurance? Is this permissible and/or advisable?
A: It is NEVER advisable to have the least experienced person issue COIs unless there is no wording required anywhere. If the agency is going to have an unlicensed person generate them for the agent to review and sign, that’s one thing (again, if there is no special wording). But if I’m the agent, I certainly don’t want anyone attaching my name to anything I don’t see and have the opportunity to approve.
Certificates require an “Authorized Representative” to sign, which I would take to mean that the person needs to be an agent. Plus, it is not advisable from an E&O standpoint and in my view would be indefensible in an E&O claim.
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This is a REALLY, REALLY bad idea!!!! Certificates are not a clerical function. A COI should be issued by a knowledgeable person. BTW - What is an “unlicensed agent”? An unlicensed person is not an agent.
No. Not only that, you’re likely in Breach of Contract with your insurance company.
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wisconsin INDEPENDENT AGENT
APRIL 2020
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2020 PRELICENSING IN-CLASSROOM SCHEDULE Since 1993, more than 20,000 students have graduated from our in-classroom prelicensing school. The IIAW in-classroom prelicensing school has some of the highest passing ratios in the state for the last 25+ years! “As an instructor, Gabrielle makes the week go by fast. Her real world examples really help me understand how insurance works and is applied.” -Former Student
IIAW PRELICENSING IN-CLASSROOM CLASSES: • Located at IIAW Headquarters • Fulfills the study requirements for life, health, property and casualty • Designed to help you pass your state licensing examination • Taught by an experienced insurance professional who know the business • Conducted in a comfortable classroom with free parking
LIFE & ACCIDENT/HEALTH
PROPERTY & CASUALTY
January 6-9 February 10-13 March 9-12 April 6-9 May 4-7 June 8-11
January 13-16 February 17-20 March 23-26 April 20-23 May 18-21 June 22-25
DAILY SCHEDULE
Day 1 (Monday) 8:30 am - 4 pm ($85) Section A: Principles of Insurance & General WI Ins. Law Ethics
Day 2 (Tuesday) 8:30 am - 4 pm ($90) Section B: Life Policies, Terms & Concepts or Section B: Property Policies, Terms & Concepts Day 3 (Wednesday)
8:30 am - 11:30 ($45) Section B: Life Policies, cont. & WI Life Insurance Law or Section B: Property Policies, cont. & WI Property Insurance Law Noon - 4 PM ($45) Section B: Accident & Health Policies, Terms & Concepts or Section B: Casualty Policies, Terms & Concepts Day 4 (Thursday) 8:30 am - 4 pm ($90) Section B: Accident & Health, cont. & WI Health Insurance Law or Section B: Casualty Policies, cont. & WI Casualty Insurance Law 28
APRIL 2020
wisconsin INDEPENDENT AGENT
MEET OUR INSTRUCTOR
Gabrielle O’Brien, MBA, has been active in the insurance industry for more than 25 years, developing continuing education classes in related fields such as Ethics and Errors and Omissions. As the lead instructor of the Independent Insurance Agents of Wisconsin’s Property & Casualty and Life & Health Prelicensing Schools, she has guided thousands of students to successfully passing the insurance intermediary’s exam. O’Brien has participated in many other aspects of the industry as an underwriter, manager, and field representative. Gabrielle also teaches tailored made group seminars for completion of the INS 21, 22, 23 certificate and a variety of seminars and college courses. O’Brien received her Master of Business Administration from Loyola University and her Bachelor of Arts from Saint Mary's College.
REGISTER AT IIAW.COM To register, click the Education tab on IIAW.com. For WI exam info, visit Prometric.com. IIAW Member Pricing: $340* Non-Member Pricing $355* Contact Kim@iiaw.com for multi-registration discounts. For any other questions please contact Diana@iiaw.com. The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • Life & Accident/Health or Property & Casualty Insurance Study Manual • The Intermediary’s Guide to Wisconsin Insurance Law • The State of Wisconsin Ins. Licensing Candidate Handbook (This provides all the information to obtain a license) • Exam Simulator - A computer program designed to help you pass your prelicensing exam on the first try *Pricing given for full class registration. You may also take individual classes.
CONTINUING
EDUCATION IIAW ONLINE EDUCATION & CE CLASSES DATE
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TIME
COURSE
06 07 09 09 09 14 14 15 15 16 20 21 21 23 23 23 27 28 28 29
12 PM - 3 PM 12 PM - 3 PM 11 AM - 1 PM 12 PM - 3 PM 2 PM - 4 PM 8 AM - 11 AM 12 PM - 3 PM 9:30 AM - 11:30 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 7 AM - 9 AM 4 PM - 6 PM 9:30 AM - 11:30 AM 12 PM - 3 PM 1:30 PM - 3:30 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM
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12:30 PM - 2:30 PM
MAY 05 05 05 06 07 11 12 13 14 18 19 20 20 21 21 21 22 28
2020
Farm Property Coverages Contractors Liability Exposures...Risk Analysis to Coverage Solutions 9 Rules for Reading an Insurance Policy Based on the Law of Insurance Contracts It’s Not My Fault, Or Is It? - Liability Issues in Personal Lines Policies Rules for Developing the Correct Premium E&O: Roadmap to Personal Auto and Umbrella Insurance E&O: Commercial Property Coverage Gaps and How to Fill Them 5 Contractor Coverage Concepts Every Agent Must Understand Workers’ Compensation Business Income - Coverage Analysis through Claims Business Auto Coverage 4 Key Personal & Commercial Lines Exposures Every Agent Must Understand 3 Keys to Getting the Named Insured Correct How to Understand Commercial Property Underwriting & COPE Insuring Trusts - Protecting Your Client’s Wishes 5 Mistakes Every Agent Makes 10 Things Every Commercial Lines Agent Ought to Know When the Child Becomes the Parent - Aging Parents and Insurance Decision Ethics and the Law NEW! Take Charge of Emerging Personal Automobile Trends...Automobile Sharing and Transportation Networks, Insureds vs. Family Members How to Understand Commercial Property Underwriting & COPE
9:30 AM - 11:30 AM 4 Key Personal & Commercial Lines Exposures Every Agent Must Understand 12 PM - 3 PM Farm Vehicle and Equipment Coverages 2 PM - 4 PM 3 Keys to Getting the Named Insured Correct 8 AM - 11 AM Additional Insureds and Certificates of Insurance 12 PM - 3 PM Personal Lines Checkup - What’s New and What’s Changed...What It All Means 12 PM - 3 PM The Dirty Dozen Twelve Great Commercial Insurance Mysteries 12 PM - 3 PM Dispelling the Myths of Workers’ Compensation 12 PM - 3 PM Cyber Liability 12 PM - 3 PM Protecting Your Most Valuable Asset 12 PM - 3 PM Condominiums 12 PM - 3 PM Ethical Dilemmas...Making the Right Choices 8 AM - 11 AM E&O: Commercial Liability Coverage Gaps and How to Fill Them 12 PM - 3 PM E&O: Roadmap to Homeowners Insurance 12 PM - 3 PM Contractual Liability...Separating Fact from Fiction 1:30 PM - 3:30 PM 5 Contractor Coverage Concepts Every Agent Must Understand 4 PM - 6 PM 9 Rules for Reading an Insurance Policy Based on the Law of Insurance Contrac 1:30 PM - 3:30 PM How to Understand Commercial Property Underwriting & COPE 12 PM - 2 PM 5 Contractor Coverage Concepts Every Agent Must Understand
TO REGISTER, PLEASE GO TO IIAW.COM
RISKY BUSINESS Friend or Foe? Don’t be a victim of social engineering As a true crime junkie, the idea of social engineering is intriguing to me; it also presents a significant risk for our members. We are aware of at least two instances of social engineering at our member agencies in 2020 and unfortunately there are likely to be more by year end. To try to prevent additional ‘attacks’, here is some education to share with family, friends and colleagues – because knowledge is the best defense against this type of criminal. “Ask any security professional and they will tell you that the weakest link in the security chain is the human who accepts a person or scenario at face value. It doesn’t matter how many locks and deadbolts are on your doors and windows, or if have guard dogs, alarm systems, floodlights, fences with barbed wire, and armed security personnel; if you trust the person at the gate who says he is the pizza delivery guy and you let him in without first checking to see if he is legitimate you are completely exposed to whatever risk he represents.” (“What is Social Engineering?” www.webroot.com)
Trusted Sources I need to make this payment! According to an annual data breach report from Verizon, phishing attacks and pretexting are responsible for 93% of successful data breaches. The reason for their success might be the tactics that are used to get the attention of the person on the receiving end. Here are examples of what to look for so you can avoid an expensive breach. • Displays an urgency to help a friend in need • Seems to come from a familiar sender either as an email, text, instant message from a well-known company, bank or other institution • Request for a charitable donation • Request for you to verify information • Notification that you’ve won and need to claim your prize • Posing as a boss or colleague It would be very difficult, if not impossible to avoid becoming a target, but you can arm yourself with knowledge so that you don’t fall into a spammers trap. Educate yourself and all employees about what to look for to keep your information safe.
Social engineering is when a cyber criminal manipulates a person into providing confidential information. This act is typically done by either posing as a friend or posing as someone you know or by posing as a friend or by acting as another trusted source (think vendor or customer).
Friends Oh look, grandma forwarded a cute email chain! If you receive something that you need to “click on the link” to access or that you need to download, pause and think twice about what (or who) might be hiding behind that request. Links and downloads are some of the easiest ways for has hackers to gain access to your computer, email accounts, social media accounts and contact lists.
> Mallory Cornell,
IIAW Vice President and Director of Risk Management
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wisconsin INDEPENDENT AGENT
AGENCY SOLUTIONS
TRUSTED CONSULTING FOR THE INDEPENDENT AGENT Because we know how important it is for you to succeed in business, IIAW has created a portfolio of solutions built just for you.
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We are a trusted partner for independent agents across the nation and a leader in agency risk management and agency solution
Mallory Cornell, IIAW Vice President mallory@iiaw.com www.iiaw.com wisconsin INDEPENDENT AGENT
APRIL 2020
31
Pamper your customer’s business with a policy from West Bend. Your customers gave their business what it needed to grow to the pride and joy it’s become. Now help them nurture it. An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable. So wrap it in the cozy warmth of the Silver Lining®.
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wisconsin INDEPENDENT AGENT
COMMENTARY COUNSEL IIAW RANSOMWARE COVERAGE Federal Court Rules Business owners Policy Covers Ransomware Attack Damages In late January, the United States District Court for the District of Maryland, in National Ink & Stitch, LLC v. State Auto Property & Casualty Insurance Co., ruled that a business owners policy provided coverage for an embroidery and screen-printing business that had fallen victim to a ransomware attack. The court described its decision as a continuation of a nationwide trend of courts finding coverage for loss of data or systems functionality following a cyber-attack. Implicit in the court’s decision may have been a recognition of the increasing frequency and severity of ransomware attacks across the country. It is critical that you and your agencies also take note of these trends. The National Ink & Stitch Case and Decision In December 2016, National Ink & Stitch suffered a ransomware attack, which prevented it from accessing all art files and other data contained on its server along with most of its software. The attacker demanded payment in the form of bitcoin to release access to the software and data, which National Ink & Stitch paid. However, the attacker then requested further payment. At that point, National Ink & Stitch contracted with a security company to replace and reinstall its software. While the business’s computers functioned after the reinstall, the new protective software slowed the system. Further, National Ink & Stitch still does not have access to the lost data, meaning it has to reproduce all of the lost art files. Finally, computer experts found that it was likely there are still remnants of the virus on the business’s computers, which could ultimately “re-infect the entire system.” Due to past and continuing damages resulting from the attack, National Ink & Stitch presented a claim to its insurer, State Auto, for the cost of replacing its computer system. The relevant business owners policy states that State Auto “will pay for direct physical loss of or damage to Covered Property…resulting from any Covered Cause of Loss.” The policy defines “Covered Property” to include “Electronic Media and Records (Including Software).” However, State Auto denied the claim, finding its insured did not experience “direct physical loss of or damage to” its computer system under the policy. National Ink & Stitch then sued to resolve the coverage dispute. Ultimately, the court held that State Auto’s policy did provide coverage for National Ink & Stitch’s losses. The court began with the policy language, which explicitly includes “data” and “software” within the definitions of “Covered Property.” The court also construed the phrase
“physical loss or damage” to include the inefficiency of National Ink & Stitch’s computer system following the installation of protective software, finding that a computer can “suffer ‘damage’ without becoming completely inoperable.” While the court came to its conclusions based on an analysis of Maryland state law, it noted that its interpretation tracks with holdings “reached by the majority of courts interpreting similar policies.” Now What? Before getting to the potential effects of this ruling on your agencies and clients, it is important to understand the basics. Ransomware is a computer virus that effectively holds a computer, or an entire system, hostage until a fee is paid. Ransomware attacks have become increasingly common in recent years. In the first four months of 2019 alone, there were more than 40 million ransomware detections. Experts predict that by 2021, a business will fall victim to a ransomware attack every 11 seconds. Further, the costs for businesses targeted with ransomware can be incredibly high. The total damages associated with ransomware in 2019 surpassed $11.5 billion, or an average of $141,000 per incident. In other words, this problem is common, it’s expensive, and it’s not going away any time soon. So what does this all mean for your agency? To start, as reflected by the National Ink & Stitch decision, courts across the country have begun to construe business owners policies to cover damages arising from ransomware attacks. Given the severity and frequency of the problem, and its effects on organizations ranging from multi-national corporations to small towns, courts are unlikely to reverse this trend. As a result, it is critical that you and your agencies understand the policy language you are presenting to your clients and the coverage they are requesting. Further, it is increasingly important to have connections with consultants, lawyers or firms that have expertise in not only insurance law, but in the expanding field of data privacy and cybersecurity, so that evaluating response strategy, security planning and coverage can be accomplished. Conclusion Ransomware attacks may soon become a daily headache for your business clients. In order to recoup some of the costs associated with these attacks, those clients are likely to bring claims under their business owners policies. If past is prelude, courts may be sympathetic to those claims and you need to be prepared to handle coverage requests and claims arising from these attacks.
> J osh Johanningmeier IIAW General Counsel
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How to Build a Better Hiring Plan Do you have enough talent to help you achieve your business goals? Do you have enough volume to support your growth? These questions are the reason that having a strategic hiring plan is so important.
By implementing these activities, you can attract applicants that have the right knowledge and skill set. You want to be able to confidently select the candidates that are the best fit for both the job role and your company.
The new year is a great time to reflect and set new goals for your organization. Your people are an integral component in your ability to achieve those goals, so it’s crucial to evaluate the climate of your workforce. Do you have enough talent to help you achieve your business goals? Do you have enough volume to support your growth? These questions are the reason that having a strategic hiring plan is so important.
Personality assessments are one of the best tools for determining candidate fit. After all, 82 percent of companies are using some form of pre-employment assessment. For example, Caliper’s assessment evaluates a number of competencies and behaviors including inclination to interact with peers and managers, attitude toward performance-related obstacles, and approaches to time management. The results are then measured against validated job models, which makes it easy for managers to see how well a candidate fits into the desired role and enables them to make better hiring decisions.
Anticipate Workforce Needs In order to create a hiring plan, you need to assess your current workforce. You want to consider both the quality and quantity of your workforce. The quality of the workforce is reflective of how your employees are rated on their current performance and future potential, whereas the quantity of the workforce measures the numerical impact of new hires, employee turnover, and internal promotions. There are a number of ways to get a sense of your current employees’ knowledge, skills, and abilities. You can reference old resumes to identify training and certifications that may not be utilized in an employee’s current role. You can discover your employees’ hidden talents, hobbies, and passions through simply having regular conversations with them. Performance reviews are also a great resource to find employees that are performing outside of their scope and are ready to take on more responsibility. In fact, evaluating performance and identifying career advancement opportunities for your employees is crucial to keeping them and creating long-term success. Ask yourself: how many employees do you typically need to replace in a given year? Do you have a plan in place for turnover? Not only do you need to think about the new positions you anticipate needing to fill, but there will also be departures and promotions for which you’ll need to be prepared as well. Plan ahead of time, so you aren’t taken by surprise and are rushing to fill critical gaps later. Identify the Gaps By now you should have a clear snapshot of how your company’s workforce will look throughout the year. But, there’s a second aspect that has a major impact on hiring plans: Annual business goals. Leadership will set a course for the year, whether that be to launch a new product, add a new department, or increase sales. Any major objectives for the year might have an effect on your talent acquisition strategy. Key questions for the HR department when crafting a hiring plan include: Does the company have the right talent for the year’s business strategy? Where can I anticipate skills gaps in order to meet company objectives? But, plan your talent strategy carefully. When putting together your hiring plan, focus on the activities and elements that aim to improve your quality of hire rather than to receive as many applicants as possible. Here are some examples of these types of activities: • Revamp your job descriptions. Poorly written job descriptions can attract candidates that are the wrong fit and deter qualified candidates from applying. Effective job descriptions should be able to give a complete picture of what a candidate needs to possess to be successful in the role. • Fine-tune your sourcing channels. Job boards and staffing agencies account for nearly half of sourcing spend but yield only 35% of applicants. Reevaluate that spend and strategy and shift your focus to the sourcing channels that are driving the largest pool of applicants. • Implement an employee referral program. Employee referrals are not only the shortest time to hire and onboard, but they also improve quality of hire. Who better to know the best cultural fit for your company than your own employees?
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Resumes and interviews can give you a picture of how a candidate has performed in the past and the present, but they lack the clarity of how a candidate will perform in the future and for your company. Personality assessments are able to raise the predictability of success, which you can pair with resumes and interviews for a more well-rounded view of your candidates and can improve time to hire and quality of hire metrics. Assess Your Acquisition Strategy An important aspect of your acquisition and hiring process is to make sure those candidates you’ve selected will choose you in return. You’ll want to consider: • Assessing your rewards and incentives programs. Is what you’re offering going to meet the expectations of your ideal candidates? If not, it could be difficult to attract and retain top talent. • Implementing professional development plans. This is a key benefit that candidates search for in a company. Building professional development into your long-term success plan keeps employees on track and shows them that you want them to succeed. • Evaluating your company culture. Having a strong company culture not only attracts highly qualified candidates, but also influences these individuals to stay with your company long term because they personally identify with the beliefs and attitudes. In fact, companies that actively manage their culture boast 40% higher retention. The new year is a great time to assess your hiring plan and implement changes that will affect the long-term success of your company. However, it’s important to keep in mind that HR planning is an ongoing process and you should continue to evaluate your strategy as your organization and industry trends change. For more information on the ways Caliper can help you find the best candidate fit for your company, reach out to our experts today to start building a better hiring plan. View Original Article https://calipercorp.com/blog/build-better-hiring-plan/
>A ggie Alvarez Caliper
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