August 2016 Wisconsin Independent Agent

wisconsin

INDEPENDENT AGENT AUGUST 2016

TAKE FLIGHT WITH THE CONNECTING CONSUMERS TO INDEPENDENT AGENTS WITH Trusted Choice .com

2016 LEADERSHIP CONFERENCE RECAP, PAGE 18

West Bend knows Preferred Risk Types: – Manufacturers of small stamped, rolled, turned, pressed, cut, machined, or soldered/welded products or component parts that are made from material other than wood – Manufacturers that generally produce items that are simple in nature and physically small

Light Manufacturing.

At West Bend, we’re proud of our broad base of knowledge when it comes to commercial risks. Over the years, however, we’ve developed extensive expertise of certain risks and the skills needed to underwrite them.

That’s why we’re more competitive in writing these classes.

Like light manufacturing.

If you have a light manufacturing risk, contact your West Bend underwriter. We look forward to sharing our expertise with you, and providing the best coverages necessary to protect your valued customers.

wisconsin

INDEPENDENT AGENT AUGUST 2016 Eric Schwartz, Editor

Open Door Policy Outsourcing: The New Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Government Affairs Should the Feds Pick Your Health Plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Sales Checklist for Client Visits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Virtual University The Danger of Relying on Automatic Coverages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Technology Protect Your Agency from Ransomware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2016 Leadership Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Message From The President Where’s My Smaller Agents Committee? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Agency Management Protect Your Clients: Read the Policy You’re Selling . . . . . . . . . . . . . . . . . . . . . . . . 23 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Errors & Omissions Grow Your Agency: Reject ‘As Is’ Renewals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Errors & Omissions Referrals Gone Bad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Marketing 6 Takeaways for Marketing to Millennials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2015-2016 Executive Committee President......................................................... Steve Leitch P.O. Box 85, River Falls, WI 54022 President-elect .............................................. Matt Weimer 100 North Corporate Dr., #100, Brookfield, WI 53045 Secretary-Treasurer .......................... Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583

Jack Riesch P.O. Box 1610, Waukesha, WI 53187-1610 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701 2015-2016 Committee Chairs

Chairman of the Board ............................. John Wickhem P.O. Box 1500, Janesville, WI 53547-15

Agency Operations....................................... Kim Dandrea N19 W24200 Riverwood Dr., Waukesha, WI 53188

State National Director ................................ Linda Steiner 555 Main Street #320, Racine, WI 53403

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

2015-2016 Board of Directors

Emerging Leaders ...........................................Jack Demski 101 East Grand Ave. #11, Port Washington, WI 53074

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Mark Behrens 555 Main Street #320, Racine, WI 53403 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202 Cindy Burns 500 South Central Ave., Marshfield, WI 54449 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Mike Farrell 1300 S. Green Bay Rd., Racine, WI 53406 Chris Hanson 5601 Grande Market Drive, Appleton, WI 54913 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902

WISCONSIN INDEPENDENT AGENT

Employee Benefits.......................................... Mike Farrell 1300 South Green Bay Rd., Racine, WI 53406 Finance & Compensation ............... Lise Meyer Kobussen P.O Box 633, Sauk City, WI 53583 Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Industry Relations ....................................... Kevin Murray 525 Junction Road, Madison, WI 53717 Marketing & Membership Development ........... Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610 Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical ................................................... Mark Truyman P.O. Box 6, Seymour, WI 54165 Technical ...............................................Timothy Kakuska P.O. Box 547, La Crosse, WI 54602-0547

On The Cover…

Once again, thanks to a generous grant from Trusted Choice, the IIAW has aligned itself with the Green Bay Packers Radio Network (and its huge fan base) to connect consumers with independent insurance agents.

All season long, with digital and radio advertising, consumers will be directed to TrustedChoice.com and its power to find independent agents. Take advantage of this dynamic resource! Go to page 31 to see what an Advantage subscription can do for your agency.

> ADVERTISERS & INFORMATION AAA Wisconsin ................................................ 34 Acuity Insurance ............................................ 35 AmTrust North America ....................................11 Axley Brynelson ............................................. 29 Badger Mutual ................................................ 30 Berkshire Hathaway/Guard .............................. 9 Burns & Wilcox ................................................. 6 EMC Insurance................................................ 20 IIAW Continuing Education .............................. 14 InVEST ............................................................. 15 J.M. Wilson ...................................................... 16 Join TrustedChoice.com .................................. 31 Save The Date: David Spade ..............Back Cover Partners Mutual .............................................. 21 Pekin Insurance............................................... 16 Robertson Ryan & Associates..........................10 The IMT Group ................................................ 33 West Bend ........................................................ 2 Wilson Mutual ................................................... 4 Western National............................................ 28 AUGUST 2016 | 3

Big I Wisc 8.5x11 Handshake 5-16.pdf

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OPEN DOOR POLICY

THE NEW FRONTIER PROTECT YOURSELF WITH SWISS RE’S E&O POLICY Let’s face it, we are expected to do more with less these days and everyone is looking to make their lives easier and more efficient. Not to mention it is becoming more and more difficult to find talented employees. Outsourcing has become the new normal for many independent insurance agencies, but it’s not without its potential perils and exposures.

But don’t worry; we’ve got you covered.

Companies specializing in outsourcing are aggressively marketing their services, claiming they can provide agents, brokers and carriers with solutions to improve speed, competitiveness, revenue growth, and profitability. They tout numerous benefits of outsourcing like: a Frees up producers to spend more time selling a Frees up CSRs to provide more service a Increases time for CSRs to cross-sell/up-sell a Improves ROI per employee a Eliminates backlogs a Increases consistency and accuracy a Reduces employee training and HR expense As innovation in the insurance industry continues to change the business model of an independent insurance agency, you can rest assured that your team at the IIAW (Swiss Re) is constantly reviewing these advances and efficiencies to ensure your business is protected.

Your Team in Action Recently, one of our insureds contacted us regarding their use of ReSource Pro and WISCONSIN INDEPENDENT AGENT

whether or not they are covered if a claim arises if this company is involved. ReSource Pro, headquartered in New York City, developed a model to provide routine, backoffice services to agents and brokers using a pool of Chinese college graduates housed in its processing center in Qingdao, China.

First, I want to provide you with some insight into how we operate when a call/inquiry like this comes in.

The IIAW’s products/services team, which consists of myself, Mary Morrison and Meggen Gagas, meet to assess the situation and gather all relevant information pertaining to the (coverage) question. Once we have all the information we need, we engage our underwriter, claims team and if need be, legal counsel and other pertinent individuals.

In this particular instance we worked with the agency to gain a better understanding of ReSource Pro’s business model and the work they were doing for our agent and their relationship. (It’s important to note that the agency is the primary point of contact with every account/insured. ReSource Pro only interacts with agency personnel and not customers.)

Next, we reviewed the contract between our member and this company. We then drafted an analysis and supporting information to share with Swiss Re in order to work together to identify how our policy would respond

and whether or not there were any gaps in coverage. It is truly a team effort.

In reviewing ReSource Pro’s business model and their contract we came to the following conclusion that I believe is beneficial to share.

First, the contract ReSource Pro has their clients (insurance agencies) sign is not the best for agencies, but, as I am told, if you want to do business with them there is very little wiggle room on modifying the language.

One example of troubling language contained in the contract states, “The Client agrees that the services shall be deemed completed successfully and accepted by the client if the client does not advise RSP (ReSource Pro) of errors or omissions within sixty (60) days following completion and delivery thereof.”

The 60-day language is disconcerting, but ultimately is not a deal breaker.

According to the article titled, “Navigating the ‘tort problem’ in Contractual Liability Exclusions: a Matter of Timing?”:

CONTINUED ON PAGE 33

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin.

Contact him at matt@ iiaw.com.

AUGUST 2016 | 5

BURNS &

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GOVERNMENT AFFAIRS

SHOULD THE FEDERAL GOVERNMENT PICK A HEALTH PLAN AUTOMATICALLY FOR YOU? Editor’s Note: The guest columnist is Ted Nickel, Wisconsin’s Commissioner of Insurance. Misha Lee will return next month.

Wisconsin consumers can currently choose from a variety of health insurance plans tailored to their specific needs including Wisconsin-based companies and national insurers, for-profit and non-profit plans, and a range of network options. Consumer choice has long been ingrained in all lines of insurance in Wisconsin and, as a result, Wisconsin is home to one of the largest insurance markets in the country.

Wisconsin also has one of the most competitive health insurance markets in the country. We have more than 20 insurers offering coverage in the individual market and more than 30 offering coverage in the small group market. It takes more than 15 insurers in the individual market to make up 80% of the market share and almost 20 insurers to make up an 80% market share in the small group market. By almost any measure, Wisconsin is one of the few states without a highly concentrated health insurance market. As a state, we have worked hard to preserve our competitive environment despite all the interference with our market by Obamacare.

Now, through a process known as “auto-enrollment,” the federal government is determined to take those choices away from many consumers.

Obamacare’s new auto-enrollment proposal is particularly frustrating. The proposal ignores centuries of contract law, is a violation of numerous Wisconsin consumer protection laws, and, most importantly, is harmful to Wisconsin consumers. We believe it is driven by federal officials that are facing significant market withdrawals by health insurers across the country and the need for a solution to sustain enrollment numbers.

Here is how the auto-enrollment proposal will work. In cases where a consumer’s current health insurer is exiting the market and the policy was purchased through the federal exchange, the federal government will assign the consumer to a new health insurer if the consumer doesn’t purchase coverage through the exchange. There is no way to opt-out.

This process is called “auto-enrollment.” The health insurer will receive a so-called “834” transaction and will be required to accept the new enrollee without necessarily knowing the consumer was involuntarily assigned to them.

In order to ensure enrollment, the consumer’s personal information— including financial information—will have to be sent from one insurer to the other insurer without the consumer’s consent.

After the passage of Obamacare we have seen numerous insurers exit the health insurance market. This year, UnitedHealthcare—citing losses through the exchanges and as a result of Obamacare—announced a market withdrawal in Wisconsin and most other states. One Milwaukeebased health insurance company has closed its doors, so not only did consumers lose their health insurance plan, but hundreds of Wisconsinites WISCONSIN INDEPENDENT AGENT

lost their jobs. In Minnesota nearly 100,000 people will be losing their existing coverage due to another market withdrawal. The proposed assignment process—by forcing insurers to take on these unwilling consumers—could further destabilize health insurers leading to more market withdrawals. Government should not pick a consumer’s plan.

Some might argue that the goal of getting more people health insurance coverage outweighs the consumer concerns. It has always been the goal of the Obama administration to use enrollment as THE metric of success, but enrollment is not and should not be the only metric for success.

When a consumer’s current health insurer is exiting the market and the policy was purchased through the federal exchange, the government will assign the consumer to a new health insurer if the consumer doesn’t purchase coverage through the exchange.

There is no way to opt-out.

The auto-enrollment proposal is seeded with a unique ability to sow chaos in an individual consumer’s life. Health care is intensely personal. Consumers facing serious medical problems have their own needs. Because each health insurance plan includes an entirely different network of doctors and hospitals, consumers will not be able to maintain their relationship with their existing medical providers.

Each insurer has a different prescription drug formulary which will provide different levels of coverage for consumer’s existing medications.

A consumer that has not agreed to an insurance contract—in fact may not even know the name of the insurer—cannot possibly know which medical providers are in the network, what the formulary covers, or what the insurer procedures are to cover medical care.

As the insurance commissioner appointed by Governor Scott Walker, we stand against costly federal intrusions into an individual’s health insurance. As the impact of these decisions is felt in the Wisconsin market, consumers will continue to have fewer and fewer choices. Governor Walker has made it clear it is my job to protect Wisconsin consumers from the harmful effects of Obamacare as best I can. To that end and like many other issues, Wisconsin has informed the federal government that the auto-enrollment proposal is a violation of Wisconsin law.

> Ted Nickel is Commissioner of Insurance for the state of Wisconsin.

AUGUST 2016 | 7

SALES

A PRACTICAL CHECKLIST FOR CLIENT VISITS

Meeting with your clients in their environment is a great way to strengthen existing relationships. accounting, support services, and claims.

11. Vehicle and parking. Be sure your vehicle is clean and ready for guests in case you are asked to drive to lunch or another meeting.

Park in employee area or on the street. Do not park in their designated customer spaces.

12. When visiting with colleagues, arrive together at the office. Arriving separately is an inconvenience to your host.

13. Turn off your cell phone and keep it out of sight. If you need to use it to research something, ask permission, use it, then put it away. Wear a watch since you won’t have your cell phone as a timepiece.

Not only will you get a better sense of their business and culture, the visit demonstrates your professionalism and appreciation. Use these reminders as a checklist for making your client visits successful.

1. Set up the appointment by phone, not e-mail. Discuss mutual objectives, agenda items, who to meet with, who will be conferenced in, meeting space, A/V equipment if needed, etc.

2. Pre-call plan with your team. Identify who will lead conversation on specific issues.

Prepare a list of anticipated questions and responses. Do your homework on key topics.

3. Confirm the visit a day or two in advance.

Ask if there are any changes from original plans.

if it’s casual jean day in their office. If you don’t know, ask if their dress standards are business or business casual.

6. Bring enough materials and marketing gifts. Avoid having to ask your client to make copies.

7. Conference room seating. Ask your client about seating arrangements.

8. If using slides on a screen, keep room properly lighted. If detailed information is presented, have paper copies as well.

Be prepared to present without visuals if equipment is not working.

9. Lunch protocol. Advance planning is needed. Who to include and invite, reservations so the table is ready, and server informed you are buying.

4. Take plenty of business cards.

5. Wear appropriate business attire even

8 | AUGUST 2016

10. Ask for scheduled time to meet others you do business with in their office such as

14. Be a master of small talk and conversation starters. Obviously, stay away from politics and religion. Asking “How’s business?” or “What’s new this year?” are safe conversational questions.

15. At the start of the meeting, briefly review your agenda with attendees. Reconfirm timeframe. Ask your client what they want to discuss. Start with the items most important to them even if it’s not on the agenda.

16. Follow up with an email that is both a brief meeting summary and thank you. If there are items you are researching, let them know the timeframe of your response.

> Emily Huling (sellingstrategies.com) helps the insurance industry create topperforming sales, service, and leadership organizations.

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INSURANCE DAY AT SUMMERFEST

It has become an annual tradition. On June 30, 2016, members of the IIAW staff, Emerging Leaders Committee, and other industry professionals met at

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Summerfest for Insurance Day. The small group took in some great live music and enjoyed a summer day along Lake Michigan.

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VIRTUAL UNIVERSITY

THE DANGER OF RELYING ON AUTOMATIC COVERAGES Note: This article is applicable to both personal and commercial lines staff.

I’m putting together a quote for a commercial account, and am having something of a battle with the underwriter over whether or not the insured needs liquor liability coverage. I think the host liquor coverage in the CGL is all this insured needs, but the underwriter doesn’t agree. The business is a day spa with two locations. Twice a year, they have a wine and cheese open house. Also, they allow members to book the entire facility after hours, for special occasions. The owner told me that last month, a bride-to-be treated all her bridesmaids to an evening at the spa, complete with facials, massages, manicures, pedicures, and so forth. The bride furnished refreshments, which included beer, wine and finger food.

To me, the day spa is not ‘in the business of …selling, serving or furnishing alcoholic beverages.’ Do you have any reference information, especially court cases, which I could send to the underwriter, to convince her that this insured does not need a separate liquor liability policy?

Determining the exact scope of automatic coverages like host liquor is a vexing problem. The one sentence exception at the end of the CGL liquor exclusion which creates “host liquor coverage” is certainly subject to myriad interpretations. In the cases I’ve seen over the years, there hardly seems to be any real judicial consensus about the intended scope of host liquor coverage.

For example, I recently read about two similar cases involving nonprofit fraternal/social clubs that routinely sold alcohol beverages to members and had liquor licenses. In one of the cases, the court ruled that, although the alcohol sales generated the bulk of the organization’s income, the money was plowed back into the charity and social work the group performed, and was thus not a “business.” In the other case, the court reached the opposite conclusion, reasoning that the nature of the operation was in reality a bar, and the fact that the organization was a social/fraternal club did not matter.

Since the day spa does furnish alcoholic beverages during their semiannual open houses, it’s quite debatable whether or not a court would consider this within the host liquor exception to the liquor exclusion.

In the case of bridesmaids at the day spa, where the bride furnished the alcohol, I still have concerns that a court could rule that the liquor exclusion applied.

Importantly, since the underwriter has already expressed the view that the insured needs separate liquor coverage, I see no point in challenging that. It’s a judgment call by the insurer, so you already know that they would almost certainly deny any alcohol-related claims.

Therefore, my recommendation would be to provide a quote for liquor

liability, and document the insured’s acceptance or rejection of your proposal. Where there is a very limited, event-specific exposure to liquor liability, a special events policy might be a reasonable alternative.

Vacant Land In a broader sense, the issue of how to interpret the numerous automatic coverages in insurance forms is fraught with danger for the producer. Running a close “second” to the number of questions I get on host liquor, are question on “vacant land.”

In the ISO Homeowners Policies, there is automatic coverage in Section II for various “insured locations,” one of which is “vacant land, other than farmland, owned by or rented to an insured.”

However, there is no definition of “vacant land,” and I get all sorts of opinions from agents who are trying to advise insureds whether or not a specific tract of land is “vacant” or not. Just recently, an agent contacted me about one of his insureds who owned a sizeable piece of land. The agent told me that he “knew” the land was vacant because he had driven by it, and “there was nothing on the property except for a fence.”

(Gulp!)

Here is a summary of some court cases I found in researching the issue:

> Mike Edwards is a faculty member for the IIABA Virtual University.

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

12 | JUNE AUGUST 2016 2016

WISCONSIN INDEPENDENT AGENT

VIRTUAL UNIVERSITY Case #1: Road built by former owner of the land, current owner sued. Verdict: Not vacant.

Case #2: Wide pathways and trails made by animals and erosion over time, being used by small recreational vehicles, land owner sued.

Verdict: Vacant.

Case #3: Acreage with natural pond and dock. Verdict: Not vacant.

Case #4: Acreage with only an abandoned well, which was covered with concrete pad. Verdict: Not vacant.

Consider these three scenarios, and decide if these vehicles were in dead storage at the time of the accident: 1. Insured’s pickup truck had several cracked pistons. He parked it in his yard for several months, and used his motorcycle instead.

He finally purchased a new engine, and got some friends to help him remove the old engine. They looped a chain over a tree limb, connected the chain to the old engine, and used a “come-along” winch to raise the old engine out of the truck.

Somehow the chain came loose and struck one of the friends in the face, causing him to lose an eye. (Louisiana case)

Case #5: Acreage with only an irrigation pump. Verdict: Vacant.

Case #6: Acreage with manmade dam. Verdict: Not vacant.

Case #7: Acreage with pond and manmade canal connecting pond to intracoastal waterway; injury arising out of the canal. Verdict: Vacant.

Case #8: Acreage with natural caves; owner gave permission for cave explorers to enter caves at no charge. Owner did not know that the cave explorers had installed an iron gate over the cave entrance for safety.

Land owner sued over injury. Verdict: Vacant. Court cited a definition of “vacant” which included “unoccupied and unused,” and ruled that the landowner was not using the land for his benefit.

Case #9: ATV accident on acreage where wild alfalfa was growing.

Landowner had allowed neighbor to harvest some of the alfalfa.

Landowner had claimed a “farmland loss” on his tax return. Verdict: Not vacant.

Case #10: Cattle on insured’s pasture cause injury. Insured argued that “farmland” refers only to planting and harvesting of crops. Court disagreed. Verdict: Not vacant.

Clearly, whether or not a piece of land is vacant is very fact-specific, and subject to a court’s interpretation. As this sampling of court cases illustrates, it is impossible to know with absolute certainty exactly how a court will rule on the status of supposedly vacant land. In fact, most experts advise that the automatic coverage granted to “vacant land” not be relied on, and that specific coverage be procured on any land the insured owns or rents. As the above cases demonstrate, something as simple as a fence, well, power pole, or other seemingly insignificant structure, could jeopardize coverage for the landowner. In addition, in situations where a piece of land has even been inspected by the insurer and is deemed to be vacant, there is no guarantee that the landowner won’t add some structure to the property at a later date.

Dead Storage An equally subjective automatic coverage in the ISO Homeowners Policies is the situation dealing with motor vehicles in “dead storage.”

This is one of the exceptions to the motor vehicle exclusion in Section II. So how to advise an insured as to when a vehicle is in dead storage?

When is it “dead,” and when is it in “storage”?

2. Insured bought his son an 8-year-old Dodge Duster for high school graduation. It soon developed major engine trouble, so it was towed home and put into a metal shed behind the house. Over the next several months, the engine was removed and rebuilt. When time came to reinstall the engine, some friends came by to help. They had trouble getting the engine cranked, so the while the owner attempted to crank the engine, another poured gasoline into the carburetor. The car suddenly backfired, the cup of gasoline caught fire, burning the hand of the guy who had been pouring it. Unfortunately, in a moment of panic, he flung the cup of burning gasoline away from himself, but some of it hit the other guy who was standing nearby, seriously burning him.

(Alabama case) 3. Insured had a 15-year-old pickup truck that he insured on his Business Auto Policy. Because the truck was in such bad shape, was past any useful service, and was not drivable or worth repairing, he deleted the truck from his BAP. He also did not renew the truck’s registration. He subsequently moved the truck to his home, parked it on the front lawn, with the intent to sell it for scrap. For some inexplicable reason, one day the truck suddenly rolled down the incline in his yard and struck a passing vehicle, injuring the passengers. (Maine case) In all three situations, the courts ruled that none of these vehicles was in “dead storage,” thus there was no coverage for the injuries under the Homeowners Policy. In these three cases, and several others I read in researching this article, the courts consistently hold that “maintenance” and “dead storage” are mutually exclusive.

In case #1 above, the Louisiana court cited the definition of “dead storage” in Black’s Law (5th edition): “The storage, especially of automobiles in public garages, where automobiles not in use are to remain uninterruptedly for a time, sometimes for a season.”

In case #3 above, the Maine court found that “the fact that this vehicle was unregistered, disable and not in use does not change the fact that this accident happened because the object was a motor vehicle and for no other reason…Dead storage means that the vehicle is placed in some condition where it has no potential to cause harm because of its attributes as a vehicle.”

CONTINUED ON PAGE 15 WISCONSIN INDEPENDENT AGENT

AUGUST 2016 | 13

CONTINUING EDUCATION

IN PERSON CLASSES Ethics: When the Impossible Happens 4 CE Credits Approved Date: August 16, 2016 Location: IIAW State Headquarters, Madison Time: 8:30 AM – 12:30 PM

E&O Risk Management: The Technology of Our Industry 6 CE Credits Approved Date: August 17, 2016 Location: IIAW State Headquarters, Madison Time: 9:00 AM – 3:00 PM (Lunch Provided!)

ABEN ONLINE CLASSES Premium Financing 2 CE Credit Approved Date: August 19, 2016 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 12:00 PM

Ethics in Today’s Changing Times 4 CE Credit Approved Date: August 23, 2016 Location: ABEN Online – iiaw.aben.tv Time: 2:00 – 6:00 PM

Insuring Condominiums 2 CE Credits Approved Date: August 25, 2016 Location: ABEN Online – iiaw.aben.tv Time: 9:00 – 11:00 AM

Cyber Gaps, UASs and TNCs 3 CE Credits Approved Date: August 25, 2016 Location: ABEN Online – iiaw.aben.tv Time: 8:00 – 11:00 AM

Hot Topics in Personal Lines 2 CE Credits Approved Date: August 26, 2016 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 12:00 PM

ABEN ONLINE CLASSES, cont.

Insurance and the Property Lease 2 CE Credits Approved Date: August 30, 2016 Location: ABEN Online – iiaw.aben.tv Time: 12:00 – 2:00 PM

IIAW WEBINARS

When the Child Becomes the Parent: Aging Parents and Insurance Decisions 3 CE Credits Approved Date: August 18, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM Top 10 Countdown of Personal Lines Coverages & Current Issues 3 CE Credits Approved Date: August 19, 2016 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM The Dirty Dozen 3 CE Credits Approved Date: August 22, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM Ethics and the Law 3 CE Credits Approved Date: August 23, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM Homeowners Hot Topics: What You Need to Know 3 CE Credits Approved Date: August 25, 2016 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM Risk Assessment for Manufacturing Operators: What Can Go Wrong?

3 CE Credits Approved Date: August 30, 2016 Location: ABEN Online – iiaw.aben.tv Time: 12:00 – 3:00 PM

FOR MORE CLASSES AND TO REGISTER, PLEASE GO TO IIAW.COM

VIRTUAL UNIVERSITY

THE DANGER OF RELYING ON AUTOMATIC COVERAGES CONTINUED FROM PAGE 13

One last point about “dead storage” and the automatic coverage in the Homeowners Policy. This exception to the motor vehicle exclusion applies to vehicles “in dead storage on an ‘insured location’.” This is even more restrictive than just the narrow scope of dead storage. If an insured is restoring an auto, and keeps it at a friend’s garage, or an uncle’s barn, etc., there is no coverage under the Homeowners Policy, even if the auto is deemed to truly be in dead storage. The best advice to an insured is to have the vehicle covered under a Personal Auto Policy.

Depending on the condition of the vehicle, this might not always be possible, but no producer should assume the automatic provision under Homeowners Section II for vehicles in dead storage is going to apply.

Resident One last situation in which I get many questions from agents involves trying to decide when a person qualifies as a “resident.” This comes up in Homeowners, Personal Auto, and Personal Umbrellas, as well as Business Auto with a Drive Other Car (DOC) endorsement, all of which can provide coverage for resident relatives.

WISCONSIN INDEPENDENT AGENT

The scenarios where the issue of residency arises are quite varied, and include kids in college or the military, kids of divorced parents with joint or shared custody, grown kids who move home temporarily (socalled “boomerang kids”), and spouses who are separated due to marital problems, or live apart for other reasons, such as job requirements.

There are so many court cases on this issue it would take several pages just to summarize them, given the seemingly crazy-quilt pattern of court decisions. But a Louisiana appellate court offered the following illuminating assessment of when someone is a “resident”: “The word ‘resident’ is flexible, elastic, slippery, somewhat ambiguous, obscure, and nebulous in meaning, has many definitions and is difficult of exact or satisfactory interpretation.” [281 So.2d 183]

Conclusion Rule-of-thumb judgment calls, interpreting the scope of the many automatic coverages in various coverage forms, is a risky undertaking.

The main danger is assuming a particular coverage situation is automatically covered by the policy, and advising the insured that they do not need to purchase separate insurance for the potential exposure.

The best approach is to offer to provide a quote on the exposure, and document the insured’s acceptance or rejection.

AUGUST 2016 | 15

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AUTO 16 | AUGUST 2016

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TECHNOLOGY

YOU NEED TO PROTECT YOUR AGENCY

FROM RANSOMWARE

The biggest cyber threat to your agency in 2016 may not be a data breach, but a ransomware attack. I’ve had several agency owners tell me they have been a victim and have had to paid a ransom to get access to their compromised networks.

Ransomware is a type of malware that gains access to your computer system and makes either the entire system or the data on the network inaccessible by encrypting the information. The attackers then attempt to extort payment from the business in return for receiving the encryption key.

The healthcare industry seems to be especially vulnerable.

Incidents at Titus Regional Medical Center in Texas and the Hollywood Presbyterian Medical Center appear to be the start of a series of ransomware attacks on the healthcare industry this year.

Three California hospitals owned by Prime Healthcare Services, King’s Daughters’ Health in Indiana, Methodist Hospital in Kentucky, as well as Maryland/D.C.-based MedStar Health were all hit by or allegedly affected by ransomware in the past few months.

The reported amounts paid in ransom range from a few thousand dollars to $17,000.

Is your agency secure? Unlikely!

Ransomware is not new. It first appeared when the Internet became more popular in the early 90s and had been around in various forms since. However, ransomware activity has significantly increased lately.

Because acknowledging a ransomware attack involves owning up to vulnerabilities or mistakes, it is believed that only a small fraction of them are reported.

I talked to Mark Parrish, owner of Ajasent, a managed service provider that specializes in insurance agencies, to get his take on how ransomware is affecting his insurance agency clients.

During March, April and May of this year, Mark received two to three calls per week from agencies that suffered a ransomware attack. This is the worst cyber-attack occurrence he has seen.

If an agency has not taken specific preventative steps to protect against a ransomware attack, his advice is to pay the ransom.

He suggests the following steps any agency can take to protect themselves: 1) Have a backup (he received a call from an agent in Florida the week before I talked to him and that agency had never done a backup of agency data in 20 years!).

2) Test your backup to make sure it is actually usable. Your backup process may be running, but not actually creating the backup files necessary to restore. You must test often to make sure it is actually working. Simply pick a few files and actually restore them.

3) Make sure you have a commercial grade virus protection program in place.

4) Make sure you have a web filter to prevent your staff from going to malware sites. Malware sites account for 10 times more problems than viruses attached to emails.

WISCONSIN INDEPENDENT AGENT

Ransomware is a type of malware that gains access to your computer system and makes either the entire system or the data on the network inaccessible by encrypting the information.

5) Have an agency-wide policy detailing expectations of staff for protecting the agency from any type of cyber-attack.

6) Make sure everyone in your organization practices safe computing.

Don’t connect to public Wi-Fi hotspots, be overly cautious about clicking on links in emails from unknown or unrecognized people, be very careful about opening email attachments even from people you know (their email account could be compromised), and keep security software up to date – to name just a few.

7) Think about creating and funding a Bitcoin account. Almost all hackers require the ransom be paid using the cryptocurrency Bitcoin. It can take up to five days to set up a Bitcoin account. Many ransomware attacks will automatically double the amount of the ransom after two weeks. If you don’t have a plan in place, you could face a higher payout.

Talk to your clients about how ransomware could affect their organization. While there is no insurance policy that I am aware of that will cover a ransomware attack, you can help them think through the risk management process so they can be better prepared.

Moreover, don’t be the cobbler with holes in his shoes! A ransomware attack could significantly impact your agency. Your organization will be better able to respond to an attack if you take the time today to think through your options and adequately prepare.

> Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/or reduce expenses.

AUGUST 2016 | 17

2016 LEADERSHIP CONFERENCE: Approximately 100 attendees and guests came to the Wilderness

competing with online companies, expanding into new markets and

Resort in Wisconsin Dells for the 2016 Leadership Conference.

many other topics that will help agencies keep growing into the

The conference started on Wednesday, July 13 with a risk

future.

management tour at Wisconsin Dells Brewing Company. Mick McGavin,

Thank you to all the agency and company members and members

director of risk management at Roundy’s Inc., first led the group

of the Emerging Leaders Committee who made the 1st Annual

through a brief overview of risk, exposures and risk management

Leadership Conference (formerly the Sales & Leadership Conference)

techniques. This was followed by a tour through the brewery and a

a resounding success.

firsthand look at potential exposures. The tour ended with samples of

The Leadership Conference would not be possible without our great

the brewery’s products.

company sponsors:

Later that afternoon, all conference attendees enjoyed a reception at one of the Wilderness Resort’s waterpark cabanas On Thursday morning, after breakfast, the first session convened. P. Artell

EXCLUSIVE COMPANY SPONSORS: AAA Wisconsin, ACUITY Insurance, Burns & Wilcox, Integrity Mutual, Liberty Mutual,

Smith, adjunct faculty member at UW-Madison’s Center for Professional

Progressive Insurance, SECURA Insurance, Sentry Insurance, SFM

and Executive Development, talked to the group and explored how to sell,

Insurance, Society Insurance, The Hanover, The IMT Group, Travelers

recruit, develop, influence and manage the incredibly diverse workforce –

Insurance, West Bend Mutual and Wilson Mutual.

five generations - that is now in the workplace.

SECURA Insurance once again sponsored a poolside cabana for networking and refreshments.

Thursday ended with a great dinner at the River Walk Pub. The venue

PARTNER LEVEL SPONSORS: Amerisafe, Arlington/Roe & Co., Austin Mutual, Auto-Owners Insurance, CNA Insurance, EMC Insurance, Madison Mutual, Partners Mutual, Philadelphia Insurance, QBE,

featured a fantastic view of the Wisconsin River and games and

Wisconsin Mutual and WPS Health Solutions.

activities for all attendees.

These photos are also on facebook.com/IIAofWI.

On Friday, July 15, the final day of the conference, Dan Paulson led his session, The Agency of Tomorrow: Growing a Profitable

and Sustainable Business. Dan, with his experience as the CEO of IDI Technologies, talked to the group about finding great talent,

Mick McGavin, Director of Risk Management at Roundy’s Inc., gave a brief overview of risk, exposures and risk management techniques.

18 | AUGUST 2016

After the risk management walking tour, attendees were able to sample a variety of house brews.

WISCONSIN INDEPENDENT AGENT

ANOTHER SUCCESSFUL YEAR IN THE DELLS

The view from the river walk is spectacular.

You can build up quite a thirst after a grueling risk management tour. Alan Neva (left) and Jack Demski, both producers at Ansay & Associates, are ready to sample eight of the house brews from the Wisconsin Dells Brewing Co.

Conference attendees enjoyed dinner Thursday night at the River Walk Pub.

Enjoying the river walk along the Wisconsin River. From left: Eric Petersen, American Advantage-Petersen Group; Katie Goswitz, IIAW Events & Education Coordinator; Haley Clark, Administrative & Marketing Assistant; and Dan Lau, Robertson Ryan & Associates.

Dinner at the River Walk Pub featured lawn games for adults and kids alike.

Dan Paulson, CEO at IDI Technologies, spoke Friday about the agency of tomorrow and growing a profitable business.

WISCONSIN INDEPENDENT AGENT

AUGUST 2016 | 19

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MESSAGE FROM THE PRESIDENT

WHERE’S MY SMALLER AGENTS COMMITTEE?!

As autumn approaches, our Association will prepare for the coming year at the Fall Planning Session on September 22 in Sheboygan.

Those that have been active in the Smaller Agents Committee will notice that our committee is missing from the list.

You might ask, “How can this be?” What about the needs of the small agent? The IIAW is in no way reducing focus on small agents. In fact, 79% of our members report revenue of $1,000,000 or less. The small agent is still a critical part of our industry and our Association. There are, however, several changes that have brought this decision about.

The Small Agent Of Today Is Very Different From The Small Agent Of The Past Years ago, a small agency was typically located in a smaller community, and its business focus was on the immediate community. Those businesses, likewise, would tend to be smaller, with specific local or regional markets. Today, we might still be located in smaller towns and cities, but our client base has gotten very diverse and sophisticated.

Our local businesses now have international exposures to address. Our client mix is likely not that different from a larger agency.

Operationally, we’ve evolved as well. We, as small agents, may have lagged behind our larger counterparts in regards to automation and evolution of workflows, but we’ve generally figured that out by now.

And many of the ongoing needs are served by other committees, or are common enough, like employee training and recruitment, that they continue to be addressed broadly by the Association.

Wisconsin STRONG For 85 years Partners Mutual Insurance Company has built lasting relationships with independent agents across the state. We are committed to the independent agency system as the only means to deliver our products and work hand-in-hand to help our agencies grow profitably.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com or Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com

The Services That Small Agents Are Looking For Have Evolved I started in the industry, and the Smaller Agents Committee, in the heyday of the Telemark Mid-Winter Convention. This was a 4-day event that primarily provided a great social and networking experience.

This was coupled with a State Convention that also spanned 4 days. I have to admit, I enjoyed both!

However, we all continue to get pressed for time, and agents need to see value in the time they spend away from the office. The Mid-Winter went through ups and downs and several iterations, including moving to the fall. Program quality was top-notch, but based on attendance, it was no longer valuable to smaller agents.

Our Annual Convention continues to be one of the best in the nation, but it has been compressed into a two-day event, with every minute intended to provide value to all our members, both large and small.

The IIAW Is Evolving, Too! This committee change is one of many changes happening within the Association. It is no secret that mergers and acquisitions continue to put a lot of revenue pressure on the state and national associations. We have been able to counter that by adding new members, thanks to our outstanding staff in Madison. But the trend is going to continue, and the IIAW Board of Directors and staff are reviewing virtually every facet of the organization to make sure we are an Association positioned for tomorrow.

Every activity is reviewed from an income/expense standpoint, as well as its measure of member value. This doesn’t mean just cutting and trimming. We are making investments in systems and changing our way of doing business to improve the delivery of member products such as the E&O, Cyber, and EPLI programs. We have invested in high-caliber staff that has moved Wisconsin into the top tier of state associations within the Big “I”.

Choose Your New Committee “Home” If you haven’t already, review the other committees and find an area of focus that interests you – there are plenty to choose from!

As Matt Banaszynski noted in the July issue of Wisconsin Independent Agent, we will be looking for feedback this fall as to how we can improve the committee process overall. Again, we want to provide maximum value to all our member agents, in return for the time and effort that you all invest in the Association.

I look forward to seeing everyone at Fall Planning!

AUGUST 2016 | 21

WISCONSIN INDEPENDENT AGENT

PMIC_3-75x4-875_WIA.indd 1

> Steve Leitch is President of the Independent Insurance Agents of Wisconsin.

6/30/2016 9:30:19 AM

AGENCY MANAGEMENT

Insurance professionals should be diligent in the performance of their occupational duties and should continually strive to improve the functioning of the insurance mechanism. (Canon 4)

“

“

Insurance professionals should seek continually to maintain and improve their professional knowledge, skills, and competence. (The Canons, Rules, and Guidelines of the CPCU Code of Professional Conduct, Canon 2)

PROTECT YOUR CLIENTS: READ THE POLICY YOU’RE SELLING Let’s consider these three scenarios:

1. “Last Sunday morning there was a 24-inch water main break on the road where my insured is located. The water main was only 20 yards from the insured. We have them written under a Businessowners policy that has the broadest coverages available. Yesterday, the adjuster indicated, ‘the claim might be not covered because of surface water.’ However, when we Google what is surface water, it‘s quite vague. Therefore, it has been difficult to explain to our client that the water main damage most likely will not be covered by the comprehensive policy we tailored for them.

I hope you might have other similar claims that you recall, or perhaps there is some case law(s) or bulletins which you might be able to research.” - Email, sent with no citations or attachments of policy forms, from the president of an agency outside New York in the eastern U.S. 2. “I write a property policy using ISO form CP 00 10 06 07. The building definition includes buildings under construction for materials, equipment, supplies, etc. The policy also has the special causes of loss form CP 10 30 06 07. Question: If there is a loss to building materials due to theft, would there or would there not be coverage?” - Email from

22 | AUGUST 2016

another anonymous producer in a Midwestern state 3. “Is the trigger for property damage in a Commercial General Liability policy the date the product was manufactured or the date the product was put to use? What is the interpretation of ‘occurrence’?” - Email from a CPCU in another Midwestern state What do these three questions have in common? The producers could have found the answers quite easily by reading the contracts they were selling.

In question 1, the agency president claimed that the insured had “the broadest coverages available,” yet the news about a surface water exclusion apparently came as a surprise. The water damage exclusion in property insurance policies dates back decades. The individual did not know the product the agency had sold.

The second questioner knew what the coverage forms were. However, rather than reading the forms to determine whether coverage would apply to a theft of building materials, the questioner asked someone else (not me) to do it.

The third questioner, who is actually bound by the ethics canons cited above, and who has taken the intensive CPCU courses and passed the exams, apparently did not review the CGL

policy, did not know that coverage under that form has always been triggered on the date the injury or damage occurs, and in fact did not check the form’s definition of the word “occurrence.”

All of these individuals hold licenses issued by their respective state insurance regulators.

They have been granted legal authority to give other people advice about insurance decisions.

They are permitted to accept commission payments for the sale of contracts potentially involving tens or hundreds of thousands or even millions of dollars. No doubt some of them prominently use the Trusted Choice® logo in their advertising. And yet, they do not know what is in the contracts they are selling.

Worse, they don’t display any inclination to find out on their own.

I wish I could tell you that these questions are unique, but they are not. It is very common for producers to ask, “Does a [fill in the blank] policy cover [a particular loss]?”

That question immediately implies that all policies of that type are the same and that there’s no difference between ISO, GEICO, Progressive or Travelers auto policies. That a Chubb umbrella is the same as one issued

by The Hartford. That a GL policy issued by Scottsdale says the same thing as one issued

by CNA. These are demonstrably incorrect.

As evidence, I will cite my own blog posts: WISCONSIN INDEPENDENT AGENT

AGENCY MANAGEMENT > An ISO homeowners policy covers dwellings that house up to four families. At least one insurer’s policy does not cover three- and fourfamily dwellings. > A theft claim was not covered because two words, found in ISO homeowners policies, were not in the one a Texas man bought. > The aforementioned ISO Causes of Loss – Special Form contains a five-word phrase that would make the difference between coverage and no coverage for the owner of heavy equipment if the floor collapses. His policy will not provide the coverage. > A commercial auto insurer’s policy actually makes the application part of the legal agreement between it and the insured. In one part of that application, the insured acknowledges a duty to notify the insurer of new drivers. What happens if the person who normally handles that is on vacation or out sick when a new driver gets hired?

Here are the facts: > Insurance policy forms and endorsements for the same line of coverage but issued by different insurers have significant differences. > Insurance producers offer these different policy forms and endorsements for sale to their clients. > Leaving aside what the courts say about a producer’s legal duty to insurance buyers, those buyers rely on producers to know what those forms and endorsements say. > Producers who do not know what the forms and endorsements say cannot give sound advice to their clients.

When people receive bad advice, they are more likely to make bad decisions. They may make bad decisions even with good advice; bad advice just makes a bad outcome more likely. When they make bad decisions and eventually suffer uninsured losses, people suffer. It’s not just the insured but also innocent third-party claimants.

In one case involving a New York State agency, the insured had a special events policy covering a rodeo.

Actually, the insured received a certificate of coverage, not a complete policy. After the WISCONSIN INDEPENDENT AGENT

event ended, some bulls got loose. An average professional riding bull weighs between 1,600 and 1,700 pounds. It’s not hard to imagine that a bull after a rodeo is at best anxious and at worst frightened. These bulls injured several people before they were subdued. People who came out for an evening’s entertainment ended the night in hospitals.

When they sued, the insured looked to his special events policy for coverage. This policy was obtained from an employee of a managing general agency, brokered to an employee of the retail agency, which was managed by a veteran agency principal. And before the loss occurred, none of them noticed that the policy excluded coverage for bodily injury or property damage caused by animals.

I believe that product knowledge is an ethical issue.

A special events policy covering a rodeo did not cover injuries caused by animals, and nobody noticed. Please ponder that for a moment. At rodeos, animals are kind of the stars of the show.

So, with no coverage under the events policy, the insured sued the agency. The trial court dismissed the lawsuit, the insured appealed, and this time he won. The agency couldn’t even cite the insured’s duty to read the policy as a defense, as there was no policy for the insured to read. He only had a certificate. The appellate court has sent the case back to the lower courts for a trial. I doubt the agency’s E&O carrier will let things get that far. The agency in question has not been an IIABNY member for well over a decade, so I don’t know who that carrier is.

Did I mention that the injuries occurred in the summer of 2012 and the appellate court’s decision just came down four months ago? In the meantime, have the people injured by the bulls received anything? Only if the insured emptied his pockets. The guy is a logger by trade and puts on rodeos as a sideline.

Something tells me he’s not independently wealthy.

I believe that product knowledge is an ethical issue. The stakes are too high, the consequences too severe, the potential financial loss is too great for we as insurance professionals to shrug, say the policies are all the same, and focus on whether we can get the

premium down fifty bucks. Ignorantly selling someone the wrong product can harm people.

It’s one thing if a client ignores your suggestion and buys lower limits or skips the coverage altogether. People can’t be forced to buy high-uninsured motorists limits or flood coverage. It’s another thing altogether when the clients are never given the chance to make that decision because they’ve been told that they have “the comprehensive policy we tailored for them,” to quote the email above.

We are insurance professionals. We do what we do to make a living, yes, but we also do it to give people peace of mind so they can go on about their lives and businesses. We can’t do that unless we know what we are talking about. That means keeping copies of the insurance policy forms and reading them.

Sometimes the words are indeed vague and subject to interpretation (personally, I find interpreting policy language to be the fun).

That’s when the conversation should start about what it all means.

However, the starting point has to be opening a paper or electronic copy of a policy, finding the relevant provision, and reading what it says. No one can commit all these forms to memory, but the key is to know where they are and where to look for the answers when questions come up.

Sure, I can do that for you and so can many other people around the country who are smarter than I am. But I’m not the one who has to face the client, or answer a summons, or suffer a damaged reputation. Someone could face bankruptcy if an insurance producer sitting at a desk in Prairie du Chien or Hayward or Wisconsin Rapids or Rice Lake sells a policy to someone without knowing if it’s the right policy for that client.

We are insurance professionals. We may not all be CPCUs, but that doesn’t mean we shouldn’t meet the requirements of the CPCU canons. We have ethical obligations to the customers we serve. We owe it to them.

We owe it to our peers in this industry that has treated us so > Tim Dodge is assistant well. We owe it VP of research at to ourselves.

Read the policy.

Independent Insurance Agents & Brokers of New York, Inc.

AUGUST 2016 | 23

S W E N E H T N I S R E B MEM INTEGRITY INSURANCE

Rebarchik Named Territory Sales Manager Integrity Insurance, a property and casualty carrier, is proud to announce Nate Rebarchik has been named a Territory Sales Manager for Wisconsin.

Rebarchik’s territory will cover eastern Wisconsin and the southern part of the state.

Rebarchik has been with Integrity for the past 10 years, recently as Property Claims Manager. As a Nate Rebarchik Territory Sales Manager, he will be responsible for managing agency relationships with partners throughout his region in Wisconsin to achieve business mix, growth and profitability for commercial and personal lines.

Sales Director, Cathy Beaudin-Colón stated, “Nate’s exceptional customer service background, knowledge of Integrity’s products and our company culture will ensure his success as Territory Sales Manager.

I’m confident he will thrive in this role assisting agents with their profitable growth with Integrity.”

Rebarchik earned his associates degree from Fox Valley Technical College. Career development has been a top priority for him throughout his tenure at Integrity. He earned his HAAG Certified Inspector certificate for both residential and commercial roofing and completed the Practical Property Training Program at FVTC. In 2010, Rebarchik was accepted into the prestigious yearlong Emerging Leaders Program offered to a small group of Integrity and affiliate partner, Grange Insurance, associates. In 2015, Rebarchik was honored with an Accolades Award for his exemplary performance.

Haddock Promoted to Senior Marketing Specialist Integrity Insurance is proud to announce the promotion of Maggie Haddock to Senior Marketing Specialist.

As Senior Marketing Specialist, Haddock will be responsible for corporate communications, development of strategic marketing campaigns and Maggie Haddock brand management. She will oversee the marketing coordinator position and serve on Integrity’s Management Team.

Vice President Personal Lines and Marketing Steve Klingemann stated, “Maggie’s contributions have been invaluable to the company and we’re happy to promote her to this new role. Her innovative thinking and vision will continue to enhance Integrity’s strategic direction.”

Haddock joined Integrity in December 2014 as Marketing Specialist bringing nearly ten years of marketing and public relations experience.

She has a BA in Journalism with emphasis in Advertising and Public Relations from the UW Oshkosh. Prior to joining Integrity she was the Marketing and Public Relations Manager at the Fox Cities Performing Arts Center.

For more about Integrity Insurance, please visit integrityinsurance.com.

24 | AUGUST 2016

Gebhard Named VP, Communications at SFM Insurance Bloomington, Minn.-based mutual insurer, SFM, has promoted Andy Gebhard to vice president, communications.

Gebhard has been with SFM since 2007 in various roles, and most recently held the position of director of communications and Andy Gebhard social media. In this position, he oversaw the company’s recent brand awareness campaign and growing focus on multimedia and online communication.

For more about SFM, please visit sfmic.com.

J.M. Wilson Receives AAMGA Award for Website J.M. Wilson Corporation was recently recognized at the annual meeting of the American Association of Managing General Agents (AAMGA) with a second place award for website. According to the AAMGA, the Advertising & Marketing awards are “awarded to members with the most innovative advertising, newsletters, sales materials, website, stationary and other collateral materials.”

J.M Wilson is a long standing member of the AAMGA and is honored to receive this award.

The AAMGA was established in 1926 and has continuously served the interests of insurance companies and agents for more than three quarters of a century. It is recognized as the voice of the wholesale and excess and surplus lines insurance industry.

For more about J.M. Wilson, please visit jmwilson.com.

WEST BEND MUTUAL

Luka Installed as IAIP President Elect Linda Luka, agent education coordinator at West Bend Mutual Insurance Company, was recently installed as president elect of the International Association of Insurance Professionals (IAIP).

Luka has been employed at West Bend for Linda Luka 39 years. She spent 31 years in Commercial and Personal Lines Underwriting and the past eight years in Marketing. Charter president of the local Kettle Moraine Insurance Professionals, she’s held leadership positions at the local, council and regional levels.

The IAIP was officially organized in 1940 and is an association of insurance professionals dedicated to the development of leaders in the insurance industry. The national organization has 225 local associations throughout the United States, Canada, and Puerto Rico. The association is best known for providing insurance education, skills enhancement, and leadership development to its members.

WISCONSIN INDEPENDENT AGENT

WS E N E H T N I S R E B M ME • Ranked in top 10% of peer business mix benchmark group; and

IAIP Names Schuett Risk Management Professional of the Year

• Passed Ward Group’s evaluation of company operations.

Mindy Schuett, loss prevention specialist at West Bend, was recently was named Risk Management Professional of the Year at the national conference of the International Association of Insurance Professionals (IAIP).

Schuett was honored with the IAIP Region V Mindy Schuett Professional of the Year Award in April. At the June national conference, she was chosen from among three finalists for the national award which recognizes her superior knowledge in the risk management field and the pursuit of professional in the insurance industry. She was chosen for her outstanding dedication to continuing education, industry involvement, involvement in IAIP, community involvement, and her essay on risk management.

Schuett joined West Bend in September 2013. She conducts property-focused surveys on new and existing commercial accounts, looking at building construction, firewalls, warehousing standards, and property hazards to help the company better understand how to improve safety. She also serves as a resource for West Bend’s loss prevention and commercial lines underwriting departments. Before joining West Bend, she worked for the Insurance Services Office (ISO) as a senior loss control field representative and also for a fire protection company.

“We’re very pleased with our results,” said Kevin Steiner, president and CEO. “Being included in the Ward’s 50 again this year is affirmation that West Bend Mutual Insurance Company is truly one of the top property-casualty insurers in the U.S. I extend my thanks to our associates and the independent agents who represent our company. We couldn’t achieve this success without our associates’ hard work and dedication, or without our agents’ continued loyalty.”

For more information about West Bend, please visit thesilverlining. com.

Company Makes Top 50 Ranking West Bend Mutual Insurance Company has made the Ward Group’s list of the 50 top-performing property/casualty insurers for 2016.

The recently released list includes the best performers of the more than 3,000 U.S.-domiciled companies.

After analyzing the property/casualty insurance industry, Ward Group recognizes those companies that achieved outstanding financial results in the areas of safety, consistency and performance from 2011 to 2015.

According to Ward’s analysis, this year’s Top 50 met this criteria:

NAMIC Recognizes Society Insurance for Innovation The National Association of Mutual Insurance Companies (NAMIC) presented its Award in Innovation on June 29 at its 2016 Management Conference in Hilton Head Island, S.C. CAMICO Mutual Insurance Company, San Mateo, Calif., received the award for its in-house innovative support team that uses employee suggestions to improve on processes within its organization.

“The CAMICO ‘Idea Central’ program was designed to fall in line with one of CAMICO’s mutual principles – to extend a ‘philosophy of ownership’ to all employees,” said Ric Rosario, CAMICO’s president/ CEO. “CAMICO has realized several benefits that have been brought to the forefront, such as increased employee engagement, leading to higher customer satisfaction, increased productivity, and creative problem-solving.”

Other NAMIC member companies that received recognition were: • Society Insurance, Fond du Lac, Wis. • Build America Mutual Assurance Company, New York, N.Y. • A.I.M. Mutual Insurance Companies, Burlington, Ma. • PURE Insurance, White Plains, N.Y. (multiple categories)

• Surplus and premiums of at least $50 million for each of the five years analyzed;

For more information about Society, please visit societyinsurance. com.

• Net income in at least four of the last five years;

Jackson Kahl Plans Expansion Sites along I-41

• Risk-based capital ratio of at least 100% for each of the five years analyzed; • Compound annual growth in premiums between -10% and +40%; • Net written premium divided by gross written premium is greater than 50%;

As it moves into a new building in Fond du Lac, Jackson Kahl Insurance plans to expand into new markets in Wisconsin: Appleton and Green Bay. On Monday, June 27, l, Jackson Kahl Insurance broke ground on a new location along Interstate 41 in Fond du Lac, the first of several moves across the Fox Valley.

• Gross written premium divided by net written premium is less than 130%; CONTINUED ON NEXT PAGE WISCONSIN INDEPENDENT AGENT

AUGUST 2016 | 25

WS E N E H T N I S R E B MEM said Jeffrey J. Rieder, partner and head of Ward Group. “From 2000 through 2016, Acuity demonstrated its ability to consistently generate outstanding results.”

CONTINUED FROM PREVIOUS PAGE

The firm, with locations currently in Oshkosh, Fond du Lac and Ripon, plans to sell its site in Peru, Illinois, using proceeds from that to expand into Appleton and Green Bay. Over the next several months, Jackson Kahl will begin construction on a building at the corner of North Pioneer Road and Forest Avenue in Fond du Lac, a site that drew the company for its high visibility from I-41, a feature that Jackson Kahl plans to pursue for future Fox Valley sites, said President Mitch Kahl.

“We plan to place branded buildings up and down Interstate 41,” Kahl said. “So we’ll have that visibility from the highway.”

The firm has operated from 39 S. Marr St. in downtown Fond du Lac for years. Jackson Kahl was founded in the 1950s, and changed hands in the early 2000s before Kahl bought the company in 2009.

Seven years ago, the firm employed about 25. Today it employs about 45. Hiring will increase as the company moves to new markets, he said.

Jackson Kahl’s new building in Fond du Lac will feature a community room that the firm plans to use to host meetings for entrepreneur development groups and other business organizations, Kahl said. The company at its current space on Marr Street in Fond du Lac doesn’t have room to host such events.

Thomas O’Connor, chairman and CEO of Lomira’s TSB Bank, which helped fund this project, said Jackson Kahl’s move to the highway signals the economic strength of the thoroughfare to the Fox Valley.

“It’s good for Fond du Lac when our businesses move along 41,” O’Connor said. “There’s great exposure here. Certainly we’ve got to have more businesses in Fond du Lac off 41.”

“Acuity’s continued recognition

by Ward Group as a top performer matters to everyone who depends on us—our employees, independent agents, and the individuals, families, and businesses who are our customers,” said Ben Salzmann, Acuity President and CEO. “Being part of the Ward’s 50 for 17 straight years is a testament to our shared success.”

Ward Group is the leading provider of benchmarking and best practices studies for insurance companies. To develop its annual list of the 50 top-performing insurers, Ward Group analyzes the financial performance of over 3,000 property-casualty insurance companies domiciled in the United States based on objective data and quality measures. Top performers have passed all safety and consistency tests and achieved superior performance over a five-year period.

Year after year, Acuity has outperformed the industry, and the company did so again in 2015, growing its revenue 7 percent while recording a combined ratio of just 93.0, nearly 7 points better than the industry. Acuity has achieved a combined ratio under 100 for five straight years and is on track to continue its record of financial and operational success in 2016.

Company Earns Spots on Multiple Top Employer Lists Acuity announced it has been named to several lists of top workplaces published by Fortune and Great Place to Work®. The company’s multiple recognitions include: • Best Workplaces in Financial Services and Insurance

For more information about Jackson Kahl, please visit jacksonkahl. com.

• Best Workplaces for Baby Boomers

Nate Beck originally wrote this story for the Fond du Lac Reporter.

• Best Workplaces for Recent College Graduates • Best Workplaces for Millennials

ACUITY INSURANCE

Company Named a Top Performer

by Ward Group Acuity has been named to the 2016 Ward’s 50 list of top-performing property-casualty companies, putting Acuity in the top 2 percent of insurers nationwide. Acuity has earned a spot on the Ward’s 50 every year since 2000, making the company the only regional insurer to have been named to the list for 17 consecutive years.

“Ward Group recognizes Acuity for achieving outstanding financial results in the areas of safety, consistency, and performance,”

26 | AUGUST 2016

These awards add to Acuity’s growing recognition for its unique, innovative, and employee-friendly culture. In 2016, ACUITY was also named the #2 employer in Fortune’s 100 Best Companies to Work For®.

“Acuity is honored to be recognized as a top employer,” said Ben Salzmann, Acuity President and CEO. “Everyone at Acuity shares in these accomplishments and has contributed in building a great workplace and achieving excellence in all we do.”

“We are all committed to doing what it takes to be a great workplace WISCONSIN INDEPENDENT AGENT

S W E N E H T N I S R E B MEM not just within our industry, but across all sectors and for employees of all ages and backgrounds,” said Joan Ravanelli Miller, Acuity General Counsel and Vice President - Human Resources. “Our consistent recognition as a top employer shows we are getting it right.”

In compiling its Best Workplaces lists, Great Place to Work® conducts anonymous surveys of thousands of employees.

Top employers are selected based on corporate culture, communication, employee pride, and other key factors that define a great workplace.

Company Earns Star Award for Outstanding Operating Results ACUITY earned a 2016 Stakeholder Team Accomplishment Recognition™ (STAR) Award from independent financial analysis firm Demotech, Inc., putting the company among the top 1.1 percent of insurers nationwide.

The Demotech STAR Award recognizes insurers whose performance benefits all stakeholders, including agents, customers, employees, consumers, regulators, and reinsurers.

Acuity was honored with a STAR award for exceeding the industry in all areas of performance, including financial strength and stability, profitability, claim handling, and compensation to employees and agents. Just 29 of the 2,628 property-casualty carriers evaluated qualified for a STAR Award.

“This is further external, independent validation of Acuity’s financial strength in protecting our customers and growing with our independent agents,” observes Ben Salzmann, Acuity President & CEO.

“This award resonates internally to all of our associates as a stamp of approval, as well as beyond our halls and walls,” says Dave Gross, SECURA’s President & CEO. “It’s a testament to our independent agents who partner with us to write our business. They know they can recommend our company with confidence and assure policyholders we’ll be there for them when they need us.”

Each Ward’s 50 company passed all safety and consistency screens and achieved superior performance over the five years analyzed (2011-2015).

This recognition comes on the heels of two other highly sought after awards naming SECURA a Platinum Well Workplace by the Wellness Council of America (WELCOA), and a Great Place to Work.

For more information about SECURA, please visit secura.net.

Hierl Insurance Launches New Brand Hierl Insurance is excited to announce the launch of its new brand and website. A new logo, tag line and website revamp were introduced on July 11.

With the new brand, Hierl hopes to better define who they are at the core of the company through a clear, defined and consistent message.

“As we’ve grown throughout the years, we have discovered that what really matters to us is people—those we work with, work for, and the communities we serve,” said agency President Mike Hierl. “We believe this new brand better reflects our focus on helping both our employees and customers become successful. The new tag line, ‘Strength. Heart. Results.’ describes the essence of who Hierl is in one phrase.”

“Strength” represents Hierl’s dedication to their clients. Hierl is straightforward and transparent with their current and future clients to provide recommendations that are backed by expertise in all areas of service.

For more information about ACUITY, please visit acuity.com.

SECURA Recognized as Ward’s 50® Top Performer Three Years Running SECURA Insurance was recognized among Ward’s 50® top performers for the third year in a row.

Ward Group® is the leading provider of benchmarking and best practices studies for insurance companies, and analyzes more than 3,000 property-casualty insurance companies based in the United States to identify top performers each year. Companies are included based on their ability to achieve outstanding financial performance in the areas of safety, consistency, and performance over a five-year period.

WISCONSIN INDEPENDENT AGENT

“Heart” is the passion Hierl has for people. Hierl understands that what they do impacts more than the spreadsheet or the bottom line. It has a real impact, for real people and real families. It is the “extra mile” that is expected and delivered.

“Results” is what Hierl delivers. They hold themselves accountable for their promises and measure what they deliver to show its impact over time. This is reflected in their effort to develop meaningful relationships personally, professionally and financially. This is their ROR – Return on Relationship.

The new website redesign will feature a more user-friendly navigation, personalized tools and resources, and a modern design that emphasizes the Hierl brand.

For more information about Hierl, please visit hierl.com.

AUGUST 2016 | 27

ERRORS & OMISSIONS

REJECT ‘AS IS’ RENEWALS AND INCREASE YOUR AGENCY’S ORGANIC GROWTH

Knowledge is power—especially when it comes to an agency’s organic growth.

Within every agency’s customer base lies a labyrinth of coverage limitations and policy exclusions—a potential roadmap to increased revenue. To grow organically, it’s important to recognize that customer needs change over time and that “renewing as is” isn’t the only path to success.

Take advantage of organic growth opportunities by becoming proficient at policy and exposure analysis.

Documenting offered coverages, whether accepted or not, will provide a foundation for defending potential E&O claims down the road.

Here are some key considerations for growing organically while reducing E&O exposure:

Product Knowledge: The deeper your product knowledge, the better prepared you are to take advantage of opportunities where organic growth exists. Investing in quality, technical coverage training opportunities pays for itself over time.

Policy Review: In reality, many agencies don’t take the time to review policies ordered by the customer. How can you tell if customer exposures are actually covered without reviewing policies? Word of caution: Don’t get backlogged on policy delivery. Customers need to review their policies as well.

Policy Exclusions: A policy exclusion could be an opportunity to sell coverage either through a policy endorsement or a stand alone policy. The Big ‘I’ Virtual Risk Consultant (independentagent.com/vrc), exclusively available to members, provides valuable direction on ISO policy endorsements and their uses Customer Evolution: People and businesses change over time—a fact ripe with opportunity for organic growth. Think through the evolution of the customer insurance life cycle and new exposures, offering coverage accordingly. Your customer might not call you

Attorney ROBERT PROCTER

Attorney TIM FENNER

Attorney MICHEAL HAHN

when his or her exposure changes.

Coverage Checklist: Whether you’re a new producer or a seasoned agency owner, using a coverage checklist will ensure you’re offering expanded coverage options. This helps you get the most out of every customer you work with.

Customer Decisions: Don’t fall into the trap of only offering the coverages customers thinks they need. You may not have a legal duty to offer additional coverages, but if you are trying to grow, it certainly makes sense. Even if the customer doesn’t want to pay for the additional coverages, at least you’ll have documented that you offered it in the event of an uncovered claim in the future.

Understanding a customer’s coverage needs and the coverage their policies afford can open the door to organic growth opportunities—while slamming it on potential E&O claims.

> David Hulcher (david.hulcher@iiaba. net) is Assistant Vice President of Agency Professional Liability Risk Management for the Big “I” Professional Liability Program.

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AUGUST 2016 | 29

ERRORS & OMISSIONS

REFERALLS GONE BAD

As independent insurance agents, it’s our business to network and know who does what.

Because of this, we often get asked for referrals.

Generally, referrals are a good thing; many sales have been generated through referrals. But what happens when something goes wrong?

Let’s say you give someone a referral for a real estate agent, for example, and the agent has a party at their house rather than the open house they said they would. It sounds crazy but it’s happened.

Because of the party, the house is damaged and you are named in a lawsuit because of the referral gone bad. If you report this claim to your Errors & Omissions carrier, will it be covered?

A typical E&O policy provides coverage for claims arising out of “professional services” rendered to others. Activity included in “Professional Services” is dependent on the definition in each policy, but might typically include activity as a managing general insurance agent, general insurance agent, insurance agent, or insurance broker.

As a general rule, referring a customer to a third person or entity unrelated to the insurance products provided by the agency is not considered “professional services” under the policy. In this case, the claim for negligent referral against you would not be covered under the insurance agent’s E&O policy.

What can you do to protect yourself in this type of situation? There are two options:

> Meggen Gagas (meggen@iiaw.com) is the IIAW’s Director of Agency Services.

30 | AUGUST 2016

referrals, but offer several names and be sure to include a statement (or statements) that specifies the scope and limits of what you are providing.

For example, put in writing that the person who is receiving your referral should look into the qualifications of everyone they choose to use so they can be sure their needs and requirements are met.

As always, you should consult with an attorney licensed in your state as to the specific disclaimer language and the legal effect of such language.

1. Risk Avoidance - Decide you are not going to continue providing referrals.

2. Risk Mitigation - Continue providing WISCONSIN INDEPENDENT AGENT

MARKETING

6 TAKEAWAYS FOR

MARKETING INSURANCE TO MILLENNIALS

Over the past few years, millennials have made headlines for their perceived sense of entitlement, lack of loyalty, and eagerness to challenge the status quo, while invariably changing the landscape of the world around them. Millennials have revolutionized the way we communicate with one another and, in particular, the way businesses communicate with them. So who are they? What do they want? And more importantly, how can insurers reach them?

It is important to look at the position millennials hold in today’s economy, as well as the role they play as consumers in shaping insurance industry marketing.

Takeaway #2: Not all younger insurance customers look, think or feel alike.

Crucial market for insurers

Millennials are over-educated and underemployed, a combination, which goes a long way in determining what, their buying behavior looks like. According to the New York Times, in 1990, the median annual income for people between 18 and 34 years old was roughly $36,700, and about 15.7% were college-educated. Between 2009 and 2013, median earnings dropped to roughly $33,900. Meanwhile, the rate of education rose to 22%.

Because their income is relatively low, and many are saddled with college debt, millennials are waiting far longer to reach milestones traditionally associated with adulthood, like marriage, having kids and buying a home. In fact, Pew reports that only 28% of those between the ages of 18 and 33 are married — compared to 49% of boomers when they were the same age.

You’re probably aware of who millennials are.

Born between 1980 and 1996, millennials are today’s 20- and 30-somethings. But you may be surprised to learn that, according to Pew Research, they’re now the largest generation in human history — larger even than boomers. Read on to see how what is unique about this generation.

Takeaway #1: This is a high-priority market for insurers who are seeing millennials start to comprise a large portion of their customer mix.

Highly-educated with unprecedented student debt

Takeaway #3: We’re talking to smart people with thin wallets who are delaying buying their first homes.

Renters insurance is a great way to start the customer relationship with many millennials.

Buying power coming soon

Celebrate diversity Diversity is a major characteristic for this generation. Last June, the U.S. Census Bureau reported that over 44% of millennials are not white. In fact, they’re the most diverse generation America has seen to date. Ethnic diversity is not the only kind of diversity to be sensitive to either. With 80 million millennials worldwide, there is significant diversity of opinions, values and experiences within any particular demographic.

32 | AUGUST 2016

Millennials may have thin wallets now but that’s going to change. According to Bloomberg, millennials are slated to inherit $30 trillion. As the largest generation, and with more and more millennials graduating and entering the workforce, they will soon wield tremendous buying power.

Takeaway #4: Millennials will increase their spending capacity.

No time for fakes Millennials “are highly skeptical of brand messaging,” said noted author Michael Parrish

DuDell, a featured speaker at the Property Innovation Summit earlier this year. “We know how to spot a faker. We know when you are being inauthentic. We know when you are being dishonest. And we turn off,” he explained.

Fortunately, there’s a flip side to that coin.

Millennials can also be very loyal consumers.

“If you figure out how to win us over, if you figure out how to talk to us in a truly authentic way that we will listen to, this generation will stick with you,” DuDell said.

Takeaway #5: Remove all traces of propaganda from your message. Communicate frequently and authentically. It’s the best way to earn millennial buy-in.

Experience is everything Millennials are willing to sacrifice money and things in exchange for experiences. According to a study by Fidelity Investments, millennial professionals would accept an average pay cut of $7,600 for better quality of work life. “We value experiences over possessions,” DuDell said. “Instead of spending a lot of money on a big house or a big car, we think that life is about experiences.”

Takeaway #6: Millennial policyholders care more about protecting life experience than they care about protecting “stuff.” In marketing, focus on how your products fit their lifestyle and create lasting experiences.

Conclusion What’s the conclusion for personal lines insurers? As we market to millennials, DuDell says we should seek to deliver “a deeply authentic 360-degree brand experience that anticipates their needs, respects > Robert Chase is cotheir values, and CEO and chief customer celebrates their officer of Enservio (enservio.com). individuality.”

WISCONSIN INDEPENDENT AGENT

OPEN DOOR POLICY

OUTSOURCING: THE NEW FRONTIER CONTINUED FROM PAGE 5

“In today’s insurance market, a number of professional liability insurance policies contain so-called contractual liability exclusions. Contractual liability exclusion will typically exclude coverage for Loss in connection with any Claim ‘based upon, arising from, or in consequence of any actual or alleged liability of any insured under any express contract of agreement.’ Given the various contractual relationships that inevitably arise in the professional liability context – think shareholder agreements, partnership agreements, employment agreements, and more – the issue of applying the contractual liability exclusion is one that comes up time and time again.”

The omission of such an exclusion extends coverage for the named insured’s liability that is created when it assumes, in an oral or written contract, the financial consequences of another’s negligent acts or omissions that results in damages to a third party.

Essentially, if your E&O policy contains a contractual liability exclusion, and you sign a contract that modifies or changes your liability exposure, your E&O policy may not cover claims arising out of a situation in which that contractual party was involved.

If you are a Swiss Re policyholder, this is

something you do not have to worry about.

Thankfully, our Swiss Re policy does not contain a contractual liability exclusion like in many professional liability policies. For example, even if you sign a contract with this type of language, you would still be afforded coverage under your Swiss Re E&O policy.

Swiss Re expounds upon the coverage question by stating:

“If a professional liability claim is made against the named insured (agent) or suit is filed against the named insured (agent), a defense will be provided for the named insured (agent). If it is discovered through litigation or investigation that the alleged error was made on the part of ReSource Pro, we will not defend or provide coverage to ReSource Pro. In the same vein, if suit is filed against both ReSource Pro and the named insured (agent), a defense will be provided to the named insured (agent), but not ReSource Pro.” Swiss Re continued: “As in any E&O claim various allegations could be made.

For example, if suit is filed and there is an allegation of intentional acts then a reservation of rights would be issued as to

the allegation of intentional acts, and if there is a finding of actual intentional acts against the agency, then those damages would not be covered by the policy. The policy provides coverage for negligent acts, errors or omissions. If a claim is made against an agency and the claim falls within in the purview of the insuring agreement, then defense and indemnification would be granted to the named insured (agent). The fact that an agency uses ReSource Pro is not an issue that would preclude coverage (and defense) for the named insured (agent).”

We, the team at the IIAW, welcome the opportunity to answer your questions and to engage Swiss Re to ensure that, as your business model evolves, your E&O policy does as well.

Ultimately, we received a wonderful compliment from the agency owner about our expedited work on this issue. He said: “I want to commend you on your follow up. I am very impressed. It is a great comfort to know that in our very competitive world the IIAW has assets like you three.”

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AUGUST 2016 | 33

FOOD FOR THOUGHT ONE FOR THE MEN & WOMEN IN BLUE

In one of the Chicago’s roughest neighborhoods, police are dropping their guns and batons and picking up bats and balls in an effort to reach at-risk kids. Police officers like Angela Wormley are stepping up to coach boys and girls as part of the Englewood Police Youth Baseball League. The program was started for kids 9-12 years old on Chicago’s south side – an area notorious for gang violence – to gain the trust of children who are often suspicious of police.

“Showing them that police are human, that we’re their friend, that they are safe around us – that’s an extension of being a police officer,” Wormley told NBC News. In a statement, Englewood Youth Baseball League Program Manager Andrea Na’Tay, said,“ The purpose of this program is to promote unification and trustworthiness, to establish and build relationships between the youth and the police of this community.”

Source: NBCnews.com

A LEFT-HANDED HONEYMOON COULD LAND YOU IN THE COOLER

The 2015 Ashley Madison hacking scandal uncovered the names of many alleged unfaithful spouses but in Wisconsin, infidelity can cost you more than embarrassment and a guilty charge in the court of public opinion. In this state, adultery is a Class I felony punishable by a fine of up to $10,000 and prison time. This is true. Check out Wisconsin statute 944.16. The law was put into place in 1849, just one year after Wisconsin became a state. Wisconsin, however, is not the only state with a law like this on the books. Fifteen other states treat sampling the forbidden fruit as a misdemeanor or felony. If you’re thinking about it, you may want to move to Maryland. The fine for stepping out is only $10.

Source: whoonew.com & peoples-law.org

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