wisconsin INDEPENDENT AGENT
Ready to revolutionize your approach to insurance technology?
COVER STORY:
IA Tech SummitPowered by Catalyit
Join the IIAW November 14, 2024 for a one-day event designed to equip you with cutting-edge insights and tools to stay ahead in a rapidly evolving industry.
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INDEPENDENT INSURANCE AGENTS OF WISCONSIN
725 John Nolen Drive
Madison, Wisconsin 53713
Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com
2023-2024 EXECUTIVE COMMITTEE
President:
Mike Ansay | Ansay & Associates
President-Elect: Joanne Lukas Szymaszek | Risk Strategies Company
Secretary-Treasurer:
Dan Lau | Robertson Ryan Insurance
Chairman of the Board:
Nick Arnoldy | Marshfield Insurance Agency, Inc.
State National Director: Steve Leitch | Leitch Insurance
2023-2024 BOARD OF DIRECTORS
Janel Bazan | Avid Risk Solutions/Assured Partners
Beth DeLaForest | Aspire Insurance Group, Inc.
Mike Harrison | R&R Insurance Services, Inc.
Jason Knockel | Kunkel & Associates, Inc.
Aaron Marsh | Marsh Insurance Services, Inc.
Andrea Nelson | Unisource Insurance Associates, LLC
Brad Reitzner | M3 Insurance Solutions
IIAW Staff
Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com
Mallory Cornell | Vice President 608.210.2975 • mallory@iiaw.com
Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com
Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com
Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com
Kim Fiene | Marketing & Communications Director 608.210.2977 • kimf@iiaw.com
Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com
Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com
Diana Banaszynski | Events Coordinator and HR Business Partner 608.256.4429 • diana@iiaw.com
Ali Smeester | Accounting Specialist 608.256.4429 • ali@iiaw.com
Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256.4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2024
For information on advertising, contact Kim Fiene, 608.210.2977 or kimf@iiaw.com.
THANK YOU TO OUR Diamond and Gold Level Supporting Company Members
Our Diamond and Gold Level Supporting Company Members provide significant support to the IIAW so that we can continue to bring industry-leading products, services and worldclass events and resources to our members. We thank them for their continued partnership, involvement and support of the independent agency channel. Learn more about these companies in this issue!
Company Name: Auto-Owners Insurance
Company Location: Lansing, Michigan
Date Company Was Founded: July 1, 1916
Current Officers:
• Jamie Whisnant, Chairman & CEO
• Tony Dean, President & CIO
• Andrea Lindemeyer, Executive Vice President
Products Company Specializes In: We provide a wide range of personal, commercial and farm products.
BUILDING
F or The Future
Central’s construction vertical has grown 112% over the past five years, and we’re just getting started We’re building specialized teams dedicated to construction underwriting, claims, and loss control, and enhancing our products like the new Builder’s Risk form with expanded coverages and higher sublimits for your construction risks.
Let’s talk about how Central can help you better serve your construction clients and add value to your agency.
Auto-Owners specializes in garage risks (auto, boat and ATV sales & repair operations), contractors, light manufacturing, and commercial auto, including trucking, as well as Main Street BOP business. We also offer loss control services within the state of Wisconsin. We offer a full range of life, health, and annuity products.
Outlook for the Company's Future:
With our Simple Human Sense® approach to insurance, we will continue to be committed to the independent agency system in marketing our products. We've grown to become the 14th largest property & casualty company in the nation. We expect to maintain AM Best’s highest rating (A++ Superior), which we have earned every year since 1972. That makes us an especially attractive place for agents to place their customers’ business.
Rob Gudates
Territory Sales
Manager
- Wisconsin
rgudates@central-insurance.com Ph: 262.282.2153
To better support you and your customers.
To help you protect businesses in your community.
To keep your agency thriving.
This is our promise. Let’s achieve it together. Learn more at emcinsurance.com
Company Name: Western National Insurance Group
Company Location: Headquartered in Edina, Minnesota
Date Company Was Founded: Founded in 1901 as a direct-writing fire insurer for Minnesota’s creameries and cheese factories.
Products Company Specializes In: Commercial lines, personal lines, and surety bonds.
Outlook for the Company's Future: Driven by initiatives focused on People, Product, and Performance, Western National is wellpositioned for continued growth in Wisconsin and other markets. In 2023, the collective Group reached $2.44 billion in total assets, surpassed $1 billion in direct written premium, and attained numerous other profitable growth objectives. The success of 2023 has followed the Group into 2024, with Western National surpassing $1 billion in policyholders’ surplus, being named a 2024 Top Workplace in Minnesota, and earning recognition once again among Ward’s Top 50 Benchmark Group of top-performing U.S. property-and-casualty companies. Western National’s success continues to be backed by an ongoing commitment to individual-risk underwriting, prompt and fair claims service, and strong partnerships with Independent Insurance Agencies.
New look. Same commitment.
WPS, a health solutions company, is energized and ready for growth. Our company has served Wisconsin and the nation for over 75 years. Now, we are evolving to bring innovative solutions forward for another 75 years and beyond. From military members to seniors and businesses, our customers experience compassionate service that makes a difference.
Visit wpshealthsolutions.com today.
NEW IIAW EVENT: IA TECH SUMMIT 2024
Join the IIAW November 14, 2024 at the Hilton Garden Inn – Madison Sun Prairie!
In today’s hard market, agents are facing an increased workload and are always on the lookout for ways to save time. This creates an opportunity for efficient use of new and existing technology to make a noticeable impact at your agency. The surge in AI and new technologies in the insurance industry is designed to enhance agent efficiency, streamline tasks, and reduce redundancy. By embracing the right technologies and maximizing the potential of existing tools, agents can focus more on building relationships and delivering exceptional value to their clients.
While an agency management system remains the cornerstone of an agency’s tech toolkit, mastering its features, staying updated on best practices, and exploring new functionalities is essential for becoming a power user and saving valuable time. Additionally, integrating complementary tech solutions can further enhance your agency’s operations, offering additional time savings and competitive advantages.
As a member of the IIAW, you have a unique opportunity to elevate your toolkit by attending the 2024 IA Tech Summit – Powered by Catalyit. This one-day event is designed specifically to
address the needs of independent insurance agents, offering valuable insights and practical tools to help you thrive in today’s fast-paced, technology-driven environment. Don’t miss out on this chance to transform your approach, enhance your efficiency, and stay ahead of the curve in the insurance industry.
Why Every Independent Insurance Agent should Attend the 2024 IA Tech Summit
1. Exclusive AMS Training Sessions
Gain exclusive access to training directly from your agency management system. This is a rare chance to dive deep into the functionalities and features that can make your work more efficient and streamlined. Whether you’re looking to refine your current skills or discover new capabilities, these sessions are tailored to provide you with actionable knowledge.
Vertafore (AMS360), Applied (Epic) and HawkSoft will all be in attendance providing a 3-hour training session to start the event. In-person training sessions are typically challenging to come-by and expensive to attend. Our IA Tech Summit is only $99 for members to attend!
2. Industry Panels
Learn from two different panel discuss as we bring in thought leaders and industry innovators.
The Carrier Panel and Agency Panel sessions will cover a wide range of topics, from the latest technological advancements to best practices for integrating new tools into your daily operations. Engage with professionals who understand the unique challenges and opportunities in the insurance industry.
3. Networking Opportunities
Connect with fellow independent agents, technology providers, and industry leaders. The IA Tech Summit offers a unique platform to share experiences, exchange ideas, and build valuable relationships that can support your professional growth.
4. Learn About New Innovative Tools and Insights
Discover the latest tools and technologies designed to help you save time and increase efficiency. Explore a range of innovative tools and solutions designed to streamline operations,
reduce administrative burdens, and free up valuable time for agents and staff.
Mark your calendar for November 14 and make plans to join us for this pivotal event. Embrace the future of insurance technology and take the first step towards becoming more efficient, effective, and successful in your role as an independent insurance agent.
We look forward to seeing you at the 2024 IA Tech Summit – where technology meets opportunity!
Visit iiaw.com/iaTechSummit to learn more and register for the event!
Matt’s Mixology
Boat House Punch
A festive and flavorful summer punch to serve to a crowd.
Ingredients
• 4 lemons, peeled
• 1/2 cup superfine sugar
• 1 liter dry gin
• 750 mL Aperol
• 12 ounces St-Germain
• 12 ounces grapefruit juice, freshly squeezed
• 12 ounces lemon juice, freshly squeezed
• 12 ounces orange juice, freshly squeezed
• 750 mL sparkling rosé
• Garnish: orange wheels
Directions
Muddle the lemon peels (save lemons for juicing) with the sugar in a bowl until the sugar looks slightly moistened.
Cover and let sit for at least one hour, or overnight, so the sugar can absorb the lemon oils.
Add the gin, Aperol, St-Germain, grapefruit juice, lemon juice and orange juice to a large pitcher or punch bowl. Add the lemon-sugar mixture, and let sit for 15 minutes.
Remove the lemon peels, drop in a large ice block, and add the sparkling rosé.
Garnish the pitcher and individual punch cups with orange wheels.
> Matt Banaszynski, CEO, IIAW
NOVEMBER 14, 2024
Hilton Garden Inn Madison Sun Prairie 1220 S Grand Ave, Sun Prairie, WI 53590
Join the IIAW for the 2024 IA Tech Summit – Powered by Catalyit, where technology meets opportunity!
Join us for this immersive one-day event designed to help you save time and become more efficient using cutting-edge technology.
Gain exclusive access to the latest insights and innovative tools during a special training session with your agency management system. Learn from expert panels and discover opportunities to enhance your efficiency. Don’t miss this chance to connect with thought leaders and elevate your skills.
EVENT SCHEDULE
9:00 AM-12:00 PM
AMS Bootcamp: Unleash the Full Potential of Your Most Critical System
Grand Ballroom and Prairie A
Presented by Vertafore, Applied Client Network and HawkSoft
Dedicated Training Sessions for Vertafore AMS360, Applied Epic and HawkSoft users.
Topics Covered:
HawkSoft: HawkSoft 6 Training - Tasks & Activity Tags, Reporting, and Mini Topics (migration, downloads, policy changes, database maintenance, local server).
Vertafore AMS360: AMS360 Best Practices, Automations, Reporting, Advanced Features, Integrations, AgencyOne (NEW!), AgencyZoom and Q&A.
Applied Epic: Epic Best Practices, Automations, Reporting, Integrations, New Product Updates and Q&A.
Can’t afford to take the time away to attend a user group conference. This is your next best solution. Join us for an exclusive training session from Wisconsin’s most popular agency management systems. This session is designed to equip insurance professionals with the essential skills and insights needed to leverage your agency management system to its fullest potential. Throughout this intensive session, representatives from the three major platforms will guide you through advanced features, best practices, and innovative strategies to optimize your system. You will learn how to streamline workflows, improve data management, and enhance customer interactions, ensuring your agency operates at peak performance.
12:00-1:00 PM
Networking Lunch Mezzanine
1:00-1:50 PM
Agency Panel: How Successful Tech Adoption Can Help an Agency
Grand Ballroom
Panelists: TBA
Experienced agents will share their insights with the latest technological advancements introduced to the industry. This interactive session will feature a diverse group of agents who have successfully integrated new tech solutions into their operations, providing a firsthand look at the benefits and challenges of adoption.
2:00-2:30 PM
Disaster Planning for Cyber Risks in Modern Agencies
Grand Ballroom
Presenter: Nick Oliver, President, Redbird Security
Join us as Nick Oliver, President of Redbird Security, dives into the critical considerations agencies must address when tackling today's cyber risks and establishing a disaster plan. This isn't just about storm or cyber event responses—Nick will explore the broader spectrum, including management system outages, email disruptions, internet failures, phone issues, and much more!
2:30-3:00 PM
Your Tech Resource Hub: Catalyit
Grand Ballroom
Presenter: Casey Nelson, Director of Consulting Services, Catalyit
All the insurance agency tech guidance you need in one place. Catalyit’s simplified technology resource opens independent agents to a community where they can inspire, grow, and succeed. Learn more about how Catalyit can help you and your agency with your complimentary subscription by being an IIAW member. Whether it's Guides, Resources, Consulting, State of Tech Report, or other tools, Catalyit is here to help you thrive.
3:10-4:10 PM
Carrier Panel: Exploring New Carrier Technology
Grand Ballroom
Panelists: TBA
Join us for an insightful Carrier Panel, where leading insurance carriers will showcase their latest technological innovations and discuss how these advancements are transforming the industry. This dynamic session will feature key executives and tech experts from top carriers who will provide an inside look at cutting-edge solutions designed to enhance efficiency, improve customer experience, and drive growth.
4:00-4:30 PM
New Tech Platforms to Help Save Your Agency Time and Money
Grand Ballroom
Presenters: Matt Banaszynski and Evan Leitch
In today's fast-paced insurance landscape, efficiency is key to staying competitive. This session will explore a range of innovative tools and solutions designed to streamline operations, reduce administrative burdens, and free up valuable time for agents and staff.
4:30-5:30 PM
Networking Reception
Grand Ballroom
Join us for an hour of networking and collaboration at the Networking Reception to wrap up the IA Tech Summit. Enjoy refreshments and hors d'oeuvres as you share insights, exchange ideas, and build valuable relationships that can drive your career and business forward.
BOOST EFFICIENCY AND SAVE TIME WITH TECHNOLOGY
In today’s hard market, agents face increased stress and workloads. Fortunately, advancements in insurance technology are transforming the industry, offering solutions that streamline operations and save precious time. From automation and AI to integrated systems and outsourcing options, these tools make processes faster, more accurate, and ultimately more profitable. Let's explore the top technologies helping agents optimize workflows and focus on building relationships and growing their business.
Revolutionize Your Marketing Efforts
Struggling to create the perfect Facebook post or ad graphic? Leverage free or affordable tech tools to save time and enhance your marketing efforts. ChatGPT can generate ideas and write posts or entire blog articles for you (always proofread before publishing). Simply visit Chatgpt.com and type ‘Facebook post examples for an insurance agency in Wisconsin’ to get started."
For graphic design needs, Canva’s Magic Design™ creates visuals in seconds based on your description. You can then edit the graphic in their easy-to-use editor. Alternatively, Trusted Choice offers Social Jazz at a discounted rate which allows you to automate all of your social media posts with just a few clicks using Trusted Choice’s social graphics. Go to trustedchoice. independentagent.com/social-jazz to learn more!
If you regularly create presentations to get in-front of prospects or clients, try beautiful.ai which transforms
your notes, data or simple description of a slide into a visually appealing presentation. It can save you hours of time trying to perfect your presentation.
Streamline Your New Business Process
In a competitive market, efficient new business processing is key. There can be a lot of data entry and information requested from the client. There are a variety of tools available that allow you to embed a form on your website or send a link to your client, gather the necessary data and insurance information securely, so you are better prepared to create the initial quote. Certain platforms even integrate with agency management systems and comparative raters. Some of the most popular platforms that offer this ability include Canopy Connect, SALT, Xilo, Indio or InsurGrid among others! Go a step further and impress prospects with a customized proposal by using platforms like Fulcrum or generate proposals directly from your AMS after creating a visually appealing proposal template.
Enhance Your Renewal Process
Start renewal conversations early to manage client expectations. Clients are often critical of their renewal, especially as premium increases or coverage is refined. A touchpoint 60 to 90 days prior to renewal can go a long way and give you the opportunity to showcase one of the many benefits of working with an independent agent – having a variety of carriers a client can choose from. Levitate, Indio, Agency Zoom, and Client Circle are all well-established email
automation platforms that integrate with agency management systems. Reach out to your clients before the carrier does and check-in with them, perform E&O risk mitigation by asking if they had any changes in their exposure and provide a notice their policy is renewing soon! You can then setup another email to check in with clients after they receive their renewal information from the carrier and/or a special touchpoint to those that hit a certain rate increase percentage at renewal.
If you don’t have emails for a majority of your clients, it’s not too late to start asking! Create a process to ask for emails now, so you can automate touchpoints in the future!
Automate Policy Checking for Accuracy
Whether it’s at renewal or with a new client, policy checking is an important task to complete thoroughly and consistently. There are tools that use AI to automatically perform a policy review and identify variances between policies or other document pages. Between rewrites and changes in forms at renewal, a policy review can save your agency time and money while keeping the best interest of the client front and center. A variety of platforms were built just for the insurance industry including Exdion, Quandri, and Patra. Alternatively to AI tools for policy checking, this task can be outsourced instead.
Streamline Operations with Virtual Assistants
Outsourcing routine and administrative tasks to virtual assistants (VAs) is a popular option to reduce expenses and increase efficiency. Several firms offer virtual assistants to offload redundant tasks. Some of the options include: Agency VA, Cover Desk, Marble Box, Savvital, Lava, Virtual Insurance Pro, Insu Serve-1, WAHVE among many others. Some of the outsourced VAs may be international while others are fully-licensed assistants living in the U.S. Common tasks unlicensed assistants take on are: data entry such as setting up a client/prospect, assistance with renewals, organizing or adding attachments, policy checking, managing document downloads, mortgage dec. page requests, sending Auto ID cards and more! The important piece is to be mindful and check exactly what tasks each state allows a non-licensed employee to complete.
Leverage Robotic Process Automation (RPA)
RPA uses bots to automate repetitive tasks, following pre-built rules and procedures. This is different from AI as it’s customized software that mimics human actions and tasks by following a set of pre-built rules and procedures. RPA is best used for tasks that are repetitive and follow a set of rules for being completed. There are opportunities for agencies to use this technology for account setup in agency management system and customer onboarding, direct bill reconciliation, renewal processing, document retrieval from the carrier websites, policy checking and even integrations for legacy applications that may not “talk” to other systems. They are often customized for the specific agency’s process and procedures, so any repetitive task that follows a set of written rules can typically be automated by an RPA bot. While there are different tech companies offering custom RPA bots to all industries, Eleviant’s vBots are focused on insurance agents.
Explore All This and More at IIAW’s IA Tech Summit
These ideas are just scratching the surface of ways to reduce workloads and improve efficiency. The technology exists and is gaining popularity within the industry as insurtech solutions offer a solution for agencies to offload repetitive or mundane tasks and be able to focus on the client and ways to add value to that relationship.
Hear about all of these platforms and more at IIAW’s IA Tech Summit on November 14th at Hilton Garden Inn’s Conference Center in Sun Prairie, WI. Matt Banaszysnki and myself will present on technology that can help save you and your agency time during our session in the afternoon. We hope to see you there!
> Evan Leitch, Agency Solutions Advisor, IIAW
Rather than attempt to be all things to every kind of business, we focus on the ones we know best— restaurants and bars, grocery and convenience stores, medical clinics, artisan contractors and auto service shops—to deliver outstanding property, casualty and workers compensation insurance. Deep niche expertise, with insight into unique business risks, is how we cover the details that make the biggest difference to our policyholders.
To discuss an agency appointment, give us a call at 888.5.SOCIETY or visit societyinsurance.com
FREE CE NEW Agency Member Benefit
FOR IIAW AGENCY MEMBERS
Starting September 1, 2024
We are excited to announce an exclusive new benefit for our valued agency members!
Starting September 1, 2024, IIAW member agencies and their licensed employees will gain free, full access to unlimited on-demand CE courses and live CE webinars through CEU and The Institutes.
As part of your agency membership, the IIAW is covering the cost of this fantastic new offering. Here’s how you can take advantage of this new benefit:
1. Renew your IIAW Membership by September 1
2. Complete the request for employee information
3. Start enjoying FREE unlimited CE
More information on this valuable new benefit is coming soon—stay tuned and learn more about CEU's course offerings at web.theinstitutes.org/ceu
IS YOUR AGENCY READY FOR A TECH UPGRADE?
Determining if your insurance agency is ready to embrace technology involves assessing several key factors. Here are some questions to consider:
1. Current Technological Infrastructure: Does your agency have the necessary hardware, software, and network infrastructure to support technological advancements? Assess whether your current systems can integrate new technologies seamlessly and safely.
2. Staff Readiness and Training: Are your employees equipped with the skills and knowledge to effectively adopt and utilize new technologies? Consider the level of training and support needed to ensure a smooth transition.
3. Client Demands and Expectations: What are your clients' expectations regarding technological capabilities? Understanding client needs can help prioritize technological investments that enhance customer experience and satisfaction.
4. Compliance and Security Considerations: Are there specific regulatory requirements or security concerns that must be addressed when adopting new technologies? Ensure that any technology solutions comply with industry standards and protect client data.
5. Cost-Benefit Analysis: Evaluate the potential costs and benefits of adopting new technologies. Consider both short-term expenses (e.g., implementation costs) and long-term benefits (e.g., efficiency gains and improved customer service).
6. Competitive Landscape: How are your competitors leveraging technology? Assess how
technological advancements could provide your agency with a competitive edge in the market.
7. Strategic Alignment: Do technological advancements align with your agency's overall business goals and strategic objectives? Ensure that any technology investments support your agency's growth and operational efficiency.
8. Change Management: How will your agency manage the organizational change associated with adopting new technologies? Develop a plan to address potential resistance and ensure a smooth transition for employees.
9. Scalability and Flexibility: Consider whether the technology solutions you choose can scale as your agency grows and adapts to future changes in the insurance industry.
10. Feedback and Evaluation: Solicit feedback from stakeholders, including employees and clients, regarding their readiness for technological changes and preferences for specific technology solutions.
By carefully evaluating these factors, you can determine whether your insurance agency is ready to embrace technology and identify the steps needed to integrate new technological solutions into your operations effectively.
> Mallory Cornell, Vice President, IIAW
WHAT ARE ERISA BONDS AND WHO NEEDS THEM?
For independent agents who provide employee benefits coverage to their commercial clients, offering Employee Retirement Income Security Act (ERISA) bonds are a natural addition. Generally, ERISA bonds are quick and easy to write, the loss ratios are low, and the premiums are competitive. For example, an insurance agent can secure a $200,000 bond for $100 in annual premium.
By understanding the ins and outs of an ERISA bond and what it protects against, independent agents can better position themselves to offer this important coverage to their clients.
Since 1974, when ERISA became law, companies that want to offer their employees a retirement plan moved away from traditional pension plans, known as defined benefit plans, to retirement plans like 401(k) plans, known as defined contribution plans. Employers usually contract with large money managers to handle the administration of these plans and advise plan participants on their investment choices.
ERISA was enacted to “address public concern that private pensions and other
employee benefit plans were being mismanaged and abused," according to the U.S. Department of Labor (DOL), which administers the program. Under ERISA, all individuals who handle retirement plan funds and other property must be covered by an ERISA fidelity bond. This includes the person within the company appointed by the employer to manage the plan on the company's behalf.
However, ERISA does have some exemptions. For example, the bonding requirements don't apply to church plans or government plans. Employee benefit plans that are completely unfunded—where the benefits are paid directly out of an employer's or union's general assets—are also exempt, as are insured welfare plans and solo 401(k) plans.
How do employers protect themselves and their employees from dishonesty and fraud that may be committed by plan administrators? They obtain a fidelity bond—also known as an ERISA bond— which is required by law. These bonds help employers ensure compliance with the DOL's requirements and protect their businesses from financial losses caused by dishonest acts.
For any business, having a safe and secure retirement fund is critical. With an ERISA fidelity bond in place, retirement savers and employers offering benefit plans like 401(k) s can rest easy knowing that the bond will reimburse any financial losses caused by acts of fraud or dishonesty.
Common Violations
The employee benefit plan is the named insured on the bond, and a surety company is the party that provides the bond to cover anyone, including the employee benefits manager within the company, who may “receive, handle, disburse, or otherwise exercise custody or control of plan funds or property."
As the insured party, the employee benefit plan can make a claim on the ERISA bond if a plan fiduciary causes a covered loss to the plan due to a wrongful act, such as larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication and more.
Some of the most common ERISA violations include improper denial of benefits to current or former employees, breach of fiduciary duty toward employees covered by plans, and interference with the rights of employees covered by plans.
If the plan fiduciary is found liable for any wrongdoing and the bond is used to cover any settlements, the surety has the right to pursue reimbursement from the fiduciary through various mechanisms.
Required Coverage
Every person who “handles funds or other property" of an employee benefit plan must be bonded with coverage equal to at least 10% of the plan assets they managed in the preceding year. The minimum amount a standard plan can be bonded for is $1,000 and the maximum amount is $500,000.
Some plans require an ERISA bond up to $1
million. That is typically due to those plans containing non-qualifying assets, such as limited partnerships, mortgages, real estate or employer securities.
These amounts apply to each plan named on a bond. So, if a plan trustee, named fiduciary and administrator all have the same access and power over a plan's total assets of $2 million, they must each be bonded for at least 10% or $200,000. If the employer has more than one retirement plan—for example, a plan for highly compensated employees that is separate from the plan for the other employees—the fiduciaries of that plan must also be bonded for 10%.
One issue that arises is the value of a retirement plan's assets varies depending on the investment returns, the number of participants and the amount of their contributions. Some sureties provide an endorsement that increases the amount of the bond as the value of the plan assets increases to ensure that the plan remains in compliance with ERISA requirements.
Having a bond in place demonstrates a commitment to maintaining the highest standards of integrity and fiduciary responsibility. It also gives employees and stakeholders peace of mind that their interests and long-term well-being are of utmost importance.
By providing ERISA bonds, independent agents can help their commercial clients take proactive measures to protect employees' financial interests and earn trust and credibility in the marketplace.
This article was originally featured on iamagazine.com in June 2024.
Weiland
3 SAFETY TIPS AGENTS SHOULD OFFER TO SHORT-TERM RENTAL HOSTS
Today, you would be hard-pressed to have not heard about vacation rental properties that are offered through Airbnb and Vrbo. These websites, where people rent out their home or a portion of it as a short-term rental, have become an increasingly popular way for homeowners to make extra money.
“We're seeing several trends emerge in the home rental market that are redefining what people want when they rent while traveling," says Bob Herich, vice president, product management at American Modern, a Munich Re company. “One noteworthy trend is the increase in flexible cancellation policies, offering travelers the ability to adapt their plans if needed.
“There is also an increase in demand to stay in unique properties such as eco-friendly homes, tiny homes, and offgrid retreats," Herich continues. “Extended stays are also becoming more popular as more individuals seek longerterm rentals for remote work or extended vacations."
For homeowners who rent out their property, it's imperative to understand what insurance coverages are needed to protect themselves and their property. Agents also need to comprehend the many factors insurance carriers are taking into consideration when offering coverage for vacation rentals.
While the 2022 edition of the ISO homeowners policy excludes this type of rental for both property and liability coverage, there is an option to buy an endorsement. However, simply adding a limited endorsement to a homeowners policy has the potential to leave many hosts without sufficient protection.
Landlord insurance policies will only cover long-term rental properties, so clients looking to rent on a short-term basis cannot generally rely on such policies. For hosts of Airbnb and Vrbo properties, there are options that an independent insurance agent can offer, as well as numerous tips agents should relay to their clients to avoid a claim.
“One of the most important things as it relates to rentals
is who's actually renting the property and what type of experience they have in the business," says Christopher Giuditta, vice president and senior advisor of Private Client Group, World Insurance Associates LLC. “How many units are they managing and maintaining? And do they have a property management team involved when they're absent as an owner or a landlord?"
The more background a host can provide on their experience as a host and how well the property is maintained, the better. A host should also be prepared to provide detailed information on what type of property is being rented out—whether it's the rental of a bedroom or two, versus the entire house—as well as the safety of the property, including egress windows for safe evacuation in the event of a fire.
“If it's a single situation where it's just a host who's renting one home, there's a market for that," Giuditta says. “If you go past a certain number of units, you then enter into writing a commercial policy, simply because there's so much risk there that carriers in personal lines don't want to insure that anymore."
In choosing coverage for a short-term rental, agents should ensure the following components are included in the coverage offered: property and contents, loss of income, and liability.
Safety is paramount, and agents are in a position to provide risk advice for any short-term rental host. Here are three tips to pass on to clients:
1) Revolving tenants. A short-term rental does not traditionally have a lease agreement in place, leaving implications for both parties involved.
“Background checks are typically not used for short-term vacation rentals," Giuditta says. “Because of that, the risk is forever changing as a host really doesn't know who is walking into their home."
However, “platforms like Vrbo and Airbnb enable users to
review guest profiles and feedback from previous hosts, which can assist hosts in screening prospective renters," Herich says.
2) Protect valuables. Clients should take precautions to protect their property and belongings. Both valuable contents and the property itself should be taken into account. “Is there copper piping that could be stolen?" Giuditta says. “After protecting the nuts and bolts of the house itself, other valuables, such as TVs, should be considered."
“These include securing or removing valuables, locking certain areas—such as personal bedrooms or storage rooms—installing security measures, including motion sensors and lighting, and performing regular maintenance to identify and address any potential hazards," Herich says.
3) Protect renters. Hosts should ensure their property is well maintained and does not pose a potential danger to their renters.
“From a liability and safety standpoint, there shouldn't be cracked walkways, and appropriate railings should be in place where required," Giuditta says. “Additionally, if there's a weather issue, a host needs to make sure someone is there maintaining, plowing and sanding for slip and falls. Preparation planning for hurricane, flash flood or brush fires is a key component of protecting the home and tenants."
And if there is a pool connected to the property, all laws should be adhered to, including having a locking gate in place.
“By taking a few proactive measures, homeowners and hosts can help protect their property and provide a safe environment for their guests," Herich says. "By clearly communicating house rules and restrictions and providing contact information for emergency services in the area, hosts can help ensure a safe and positive experience for all parties."
In essence, the more education an agent can offer a client on trends within the short-term rental market and the status of the market in general—including the hard market—the more prepared their client will be when it comes to renting their home.
It pays to help clients identify “how to protect their property, get ahead of a claim, self-insure to some extent, and put things in place so that they are prepared if something does come up, whether it's a water incident, a pipe burst, electrical issues or a fire," Giuditta adds.
This article was originally featured on iamagazine.com in June 2024.
Workers’ Compensation
We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.
Upfront loss control measures
Responsive claims handling
Facilitation of quality medical care
(when an accident does occur)
We’ve been successfully protecting our policyholders and their employees since 1983.
Our Workers’ Compensation policy is available nationwide except in monopolistic states: ND, OH, WA, and WY.
WISCONSIN WORKERS’ COMPENSATION RATES DROP FOR 9TH YEAR IN A ROW
Effective October 1, 2024, Wisconsin workers’ compensation rates will see the largest reduction in over a decade, according to information provided by the Wisconsin Compensation Rating Bureau (WCRB). This marks the 9th consecutive year of premium rate decreases. Businesses in Wisconsin and across the U.S. are catching a break as workers' compensation rates continue to decline. While Wisconsin's 10.5% rate decrease is significant, it reflects a broader trend of safer workplaces and more efficient systems leading to lower costs for employers nationwide.
There are a several key reasons behind this trend:
Safer workplaces: The good news is that Wisconsin workplaces seem to be getting safer. This could be due to factors like increased employer investment in safety training, improved work practices, and better ergonomic design. Fewer workplace injuries translate to fewer claims which keeps insurance costs down for everyone.
Faster recovery times: Wisconsin generally boasts strong healthcare provider networks and effective return-towork programs. This means injured employees can get the treatment they need and get back on the job faster, reducing the overall cost of claims for employers and insurers.
Collaborative approach: The Wisconsin Department of Workforce Development (DWD) emphasizes collaboration between employers, workers, and healthcare providers. This focus on communication and shared goals likely contributes to a more efficient workers' compensation system compared to other states.
Advancing technology: The insurance industry, like many others, is embracing technology. This means using data analytics to identify trends, predict risks, and potentially adjust premiums accordingly. Additionally, telehealth is playing a growing role, allowing for remote consultations and faster treatment for injured workers.
Gig economy challenges: The rise of the gig economy presents new challenges for workers' compensation. Many gig workers aren't classified as employees, leaving
them without coverage in case of injury. This is an ongoing policy debate and may lead to legislative changes at some point in the future.
While declining Wisconsin Workers' Compensation rates might seem like a negative development for insurance agents at first glance, it can actually present some opportunities. With reduced premiums, the focus can shift from simply selling policies to offering value-added services which many agents are doing. Agents are already trusted advisors and helping businesses implement effective risk management/safety programs can further reduce the risk of injuries and claims.
Overall, predicting the future of workers' compensation rates can be complex, but the current consecutive decline in rates is unprecedented. Continued focus on safety and advancements in technology could lead to further declines. However, rising healthcare costs, an aging workforce and the evolving gig economy present challenges that could cause workers’ compensation rates to increase in the future.
> Misha Lee IIAW Lobbyist
In 1919, a group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.
Today, Penn National Insurance sells property-casualty insurance in 12 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the qualit y of products and ser vices of national carriers.
Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin.
Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com
Contact: Clayton Zogata 715-383-5454 czogata@pnat.com
We help people feel secure and make life better when bad things happen
• Strong financial performance and A.M. Best Financial Strength Rating of A (Excellent) Positive Outlook
• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably
• Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans
• State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs
• Local, experienced underwriting, claims and management staff
Members
in the News
ACUITY CELEBRATES A QUARTER CENTURY AS A WARD GROUP TOP-PERFORMING INSURER
Acuity Insurance has been named to the 2024 Ward’s 50 list of top-performing property-casualty companies, putting the company 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 one of just three insurers, and the only regional carrier, to be named to the list for the past quarter century.
“We recognize Acuity for outstanding financial results in the areas of safety, consistency, and performance over a five-year period,” said Jeff Rieder, partner and head of Ward Group, the leading provider of benchmarking and best practices studies for insurance companies.
“In selecting the Ward’s 50, we analyze the performance of nearly 3,000 property-casualty insurers and identify companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results.”
“We are pleased and honored to be again named by Ward Group as a top performer,” said Melissa Winter, Acuity President. “Acuity’s intentionality of purpose and unwavering focus on our mission, vision, and strategy have produced a level of performance over the past 25 years that puts us in the top tier of insurers across the entire industry.”
“Acuity’s consistency, strength, and stability are vital to all our stakeholders—independent agents, customers, and employees,” said Ben
Salzmann, Acuity CEO. “We can all be proud of our recognition on the Ward’s 50 for 25 consecutive years because we all contribute to maintaining our incredibly high level of performance.”
Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures nearly 150,000 businesses, including nearly 350,000 commercial vehicles, and more than 550,000 homes and private passenger autos across 32 states. Rated A+ by AM Best and S&P, Acuity employs more than 1,700 people.
JM WILSON PROMOTES FENIMORE TO BROKERAGE SUPERVISOR
PORTAGE, MICHIGAN, JUNE 2024 – JM Wilson is pleased to announce the promotion of Jaime Fenimore to Brokerage Supervisor. With her proven track record of excellence and dedication to continuous improvement, Jaime will ensure efficiency, accuracy, and compliance with industry standards for the brokerage operations in all states that JM Wilson writes business.
Jaime joined JM Wilson in 2022 as a Brokerage Underwriter, specializing in Cyber related risks and handling a variety of new and renewal professional and brokerage accounts. She has built strong relationships with carriers and independent insurance agents and has proven herself as an asset to the company and a leader among her peers.
Jaime earned a Master of Science degree from Penn State University and holds a CPCU (Chartered Property Casualty Underwriter) designation, reflecting her commitment to professional development and expertise in the insurance industry.
JM WILSON PROMOTES TOKARZ TO SENIOR TRANSPORTATION UNDERWRITER
PORTAGE, MICHIGAN, JUNE 2024 – JM Wilson is pleased to announce the promotion of Ryan Tokarz to Senior Transportation Underwriter. In this role,
Ryan is responsible for underwriting a wide variety of new and renewal commercial transportation risks, as well as building relationships with carrier underwriters and independent insurance agents in Iowa, Illinois, North Dakota, South Dakota, and Wisconsin. With an increased level of product knowledge, Ryan is a leader and resource to other underwriters in his department.
Ryan joined JM Wilson in December of 2020 as an Assistant Transportation Underwriter, before being promoted to Renewal Transportation Underwriter in 2021. He joined JM Wilson with previous experience as an Underwriting Operations Associate and Sales Manager. A Kent State University graduate, Ryan earned his bachelor’s degree in Interpersonal Communication.
JM
WILSON HIRES UEKERT AS BROKERAGE UNDERWRITER
PORTAGE, MICHIGAN, JUNE 2024 – JM Wilson is pleased to announce the addition of Joe Uekert as Brokerage Underwriter. In this role, Joe is responsible for underwriting a wide variety of new and renewal professional and brokerage accounts, as well as maintaining relationships with carrier partners and independent insurance agents in all states that JM Wilson writes business.
Prior to joining JM Wilson, Joe was a Relationship Banker II at Old National Bank and an Account Executive at United Wholesale Mortgage. A Michigan State University graduate, Joe earned a bachelor’s degree in advertising management with a minor in sales leadership.
JM WILSON ADDS WEISZ AS ASSISTANT BROKERAGE UNDERWRITER
PORTAGE, MICHIGAN, JUNE 2024 – JM Wilson is pleased to announce the addition of Joshua Weisz as Assistant Brokerage Underwriter. In this role, Joshua is responsible for providing vital support to underwriters with a diverse range of new and renewal professional and brokerage accounts.
Prior to joining JM Wilson, Joshua held roles as Logistics Account Executive at Total Quality Logistics, as well as Honor Caddie and Club House
Supervisor at various golf clubs. An Illinois State University graduate, Joshua earned his Bachelor of Science degree in Finance, with a minor in Insurance.
JM WILSON HIRES MOORE AS ASSISTANT TRANSPORTATION UNDERWRITER
PORTAGE, MICHIGAN, JUNE 2024 – JM Wilson is pleased to announce the addition of Kayla Moore as Assistant Transportation Underwriter. In this role, she is responsible for providing vital support to underwriters with new and renewal public and business auto risks in Iowa, Illinois, Indiana, Kentucky, and Wisconsin.
Prior to joining JM Wilson, Kayla gained experience as a hazard and flood underwriting manager for a mortgage company. A Grand Canyon University graduate, Kayla has earned her bachelor’s degree in applied management.
Founded in 1920, JM Wilson is a family owned and operated Managing General Agency and Surplus Lines Broker providing independent insurance agents access to A rated specialty markets. JM Wilson offers coverage for standard and hardto-place Commercial Transportation, Property & Casualty, Brokerage, Marine, Personal Lines and Surety accounts in 47 states across the U.S.
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IIAW CONTINUING EDUCATION
2024 ONLINE EDUCATION & CE CLASSES
AUGUST COURSE SCHEDULE
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Understanding and Avoiding E&O Claims in an Independent Insurance Agency
Setting Business Income Limits: It’s Easier Than You Think!
Personal Lines Issues That Keep You Up at Night
Those Kids and Their Cars - UPDATE
Embracing Directors & Officers Liability Ins. & Understanding Claims Potential
4 Key Personal & Commercial Lines Exposures Every Agent Must Understand Claims - Made Policies - The Most Dangerous Insurance Policies in our Industry
9 Rules for Reading an Insurance Policy Based on the Law of Insurance Contracts
3 Keys to Getting the Named Insured Correct
Insight on Modern Day Cyber Exposures & Risk Mitigation
Properly Calculating & Insuring the Business Income Exposure Rules for Developing the Correct Premium
Understanding the Importance of Ordinance or Law Coverage
E&O Exposures: Websites & Social Media
Farm and Insurance Issues- Top Ten Cases of the Last Decade (Or So)
Gigs and Side Hustles - The Insurance Issues
Why Business Income is the MOST Important Property Coverage
Why Certificates of Insurance - Just Why?
Understanding (and Managing) the Largest Government Benefits: Social Security
Watch Your Six - A Half Dozen Ethics Scenarios for Insurance Professionals
E&O - Roadmap to Homeowners Insurance - Part 1
Agency Management Based E&O and Ethics - UPDATE
E&O - Commercial Property Coverage Gaps & How To Fill Them - Part 1
Commercial Lines Claims That Cause Problems - UPDATE
