June 2012 WIA Magazine by Independent Insurance Agents of Wisconsin

wisconsin

independent agent JUNE 2012

JOIN THE CAUSE TO INCREASE YOUR MARKET SHARE

1 1 3 T H A N N UA L CO N V E N T I O N R EC A P I N S I D E ! P H OTO S & STO R I E S B EG I N O N PAG E 5

If it’s worth insuring , it’s worth insuring well.

wisconsin

independent agent Open Door Policy Convention Thank Yous & A Look To The Future. . . . . . . . . . 4 113th Annual Convention Recap!. . . . . . . . . . . . . . . . . . . . . . . . . 5

It’s important to prot ect the things your customers value. So it makes sense to in sure them with a compa ny that provides wha t they need. West Bend’s Home and Highway® polic y offers the right protection with many benefits, including: – Coverage for just about everything th ey own: home, condo, or re ntal unit, as well as cars, truck, boat, motorcy cle, snowmobile, je welry, even umbrella liabi lity coverage ... all on one policy with one prem ium. – Guaranteed repl acement cost with no cap so if the home is de stroyed by a fire or a tornado, we’ll pay w hat it costs to replac e it, even if it’s more than the policy’s limits. – Automatic covera ge for some of the costs they may incur, incl uding most veterinar ian expenses, if a belo ved family pet is th e victim of a covered accident. – Five percent of th e annual premium back – in cash – if they don’t have a claim all year. West Bend’s Home an

d Highway makes se

Because if it’s wor th insuring, it’s wor th insuring well.

nse.

Commentary From Counsel Mandatory Motor Vehicle Liability Coverage Revisited. . . . . 24 Project CAP Three Rs of Web Site Ranking: Relevance, Referrals & Recency. . . . . . . . . . . . . . . . . . . . . . . . 27 Marketing Minute Avoiding The Dangers: It’s No Time To Trip . . . . . . . . . . . . . . 34 News From ACT The Reality Of Texting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Government Affairs Legislative Flashback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 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 2011-2012 Executive Committee

2011-2012 Committee Chairs

President.............................................................Mike Hierl P.O. Box 949, Fond du Lac, WI 54936-0949

Agency Operations.................................. Sandra Hardrath P.O. Box 1030, Manitowoc, WI 54221-1030

President-elect............................................... Michael Froh P.O. Box 1320, Sheboygan, WI 53082-1320

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

Secretary-Treasurer.......................................David Dunker P.O. Box 443, Brookfield, WI 53008-0443

Employee Benefits.............................................. Tim Bever 555 Main St. #320, Racine, WI 53403

Chairwoman of the Board............................ Linda Steiner 555 Main St. #320, Racine, WI 53403

Finance & Compensation............................. Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443

State National Director...................................Skip Hansen 100 North Corporate Drive #100, Brookfield, WI 53045

Government Affairs......................................Tom Helbach P.O. Box 40, Mosinee, WI 54455-0040

2011-2012 Board of Directors

Industry Relations...............................................Ted Haase P.O Box 6, Seymour, WI 54165

Chris Costakis 251 Progress Way #300, Waunakee, WI 53597-2520 Thomas Holter P.O. Box 938, Beloit, WI 53512-0938 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066 Jeff Rasmussen 525 Junction Road, Madison, WI 53717

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.......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320 Young Agents........................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500

JUNE 2012 Eric Schwartz, Editor On The Cover…

The IIA of Wisconsin is proud to partner with Project CAP to help bring more consumers and independent agents together. To do this, independents need a stronger online presence. With more visibility, revenues will inevitably increase. The IIABA and Trusted Choice are also partners of the Project CAP initiative. Find more information about Project CAP on page 27 and pages 31-33. The time is now to increase our market share. Thank you to everyone who made the annual convention a fantastic and memorable event. For full coverage, please turn to page 5.

> OUR ADVERTISERS AAA................................................................. 42 ACUITY Insurance............................................ 43 Arthur J. Gallagher......................................... 37 Badger Mutual................................................. 40 Burns & Wilcox................................................ 25 IMT Insurance.................................................. 22 Partners Mutual.............................................. 40 Pekin Insurance............................................... 22 Project CAP.................................................31-33

Frederick Thomas 330 East Kilbourn Avenue, Milwaukee, WI 53202

SFM...................................................................11

Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

West Bend......................................................... 2

Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

Wilson Mutual.................................................. 26

Donald Williams P.O. Box 595, Beaver Dam, WI 53916

JUNE 2012

WISCONSIN INDEPENDENT AGENT

OPEN DOOR POLICY

CONVENTION THANK YOUs AND A LOOK TO THE FUTURE

113 TH IIAW ANNUAL CONVENTION

THANK YOU to everyone who made this year’s convention a renowned success! We could not have done it without the support of our members and company partners. I hope you enjoyed it as much as we enjoyed planning it.

While it was my first convention at the helm of this great Association, I would be remiss if I didn’t thank our wonderful staff for the fabulous job they did. While it certainly was a team effort, Kathy Faltersack, IIAW Events Coordinator, did much of the heavy lifting and preparation for this year’s convention. Her leadership and expertise in event planning ensured that all of our bases were covered and that everything went off without a hitch. The staff and our volunteer leadership deserve the credit for this year’s convention success. This year’s CEO panel was a huge hit yet again. Jeff Yates from the Agents Council for Technology participated in a few tech sessions and worked with the great people on our Automation and Technology Committee. These folks are truly rock stars in their field. You won’t want to miss their invigorating and informative sessions they have planned for next year. Association President Mike Hierl did a fantastic job emceeing this year’s event. His countless hours of preparation and his passionate introduction of Gov. Scott Walker made the awards breakfast an event to remember. Rep. Robin Vos, the recipient of the IIAW Legislator of the Year award, did a great job kicking things off and getting the crowd energized before the governor took the stage. Much applause and three standing ovations later, the governor concluded his speech and was met with a rush of attendees jockeying for a picture with him. He graciously paused and posed so people could get a picture of a lifetime. There was a lot of buzz surrounding Project CAP, Trusted Choice, and the Wisconsin Field Agent app (launching later this summer). The folks from Project CAP were > Matt Banaszynski is the in attendance and Executive Vice President met with members. of the Independent They will be back Insurance Agents of on July 12 (at the Wisconsin. Contact him Midwest Yong Agents at matt@iiaw.com.

Gov. Scott Walker’s speech at the awards breakfast was a highlight of the convention. Pictured: Gov. Walker and Matt Banaszynski, IIA of Wisconsin Executive Vice President. Just to clarify, the governor is on the left. Conference) for a special session on Project CAP and how agencies can sign up and take advantage of this state-of-the-art member benefit. Keep your eyes peeled for the IIAW Spotlight e-newsletter for more details. You don’t want to miss it. Again, THANK YOU to those that attended this year’s convention and contributed to its success. For those that we missed this year, we hope to see you next year. We promise it will be a good investment of your time and money. I hope you enjoy the pictures and recap of the convention in this month’s issue. Next year, we plan to change things up. We’ll be at a new venue (Madison Marriott West) and have a new theme. There will be

WISCONSIN INDEPENDENT AGENT

new entertainment, new format (more CE opportunities), new speakers, and much more. Over the course of the past year we have been gathering input on how we could transform our annual convention to be more responsive to the feedback we have been receiving. It’s not too late to make suggestions. Just shoot me an e-mail or give me a call. As Kelsey Grammer who played Doctor Frasier Crane always said, “The doctor is in and I’m listening.” Except I’m no doctor, unless you’re my son, then I’m a fighter pilot, Superman, the President, a doctor or whatever he wants me to be. But I am listening and my door is always open.

JUNE 2012

C H A M P I O N S B E AT T H E F I E L D

AG E N TS GET WIRED INTO WHAT’S HAPPENING Karl Seidl, Maritime Insurance Group, and Chris Costakis, The Murphy Insurance Group, moderated the event which touched on Real Time, commercial lines download, breach of data, agency management systems, Project CAP, Facebook, and more. Real Time is the ability to click on a button from a client file in your agency management system or comparative rater for immediate access to carrier information on that client. For example, the transaction could be a quote or billing inquiry. However, even though Real Time is activated from your desktop and is immediate, some users have an issue with its speed. Some

THE DREAM IS A SINGLE ENTRY, MULTIPLE COMPANY INTERFACE. REAL TIME IS THE WAY TO GET THERE.

producers consider Real Time slow, said Costakis. After pressing the button, it takes a few seconds to get the information. Karl Seidl had the tongue-in-cheek line of the morning when he said, “Aren’t producers the source of all problems?” Scott Deetz, the president and CEO of Project CAP, didn’t miss a beat and countered with, “And the revenues.”

The 113 th annual convention opened with the automation and technology open forum. With technology playing an expanded role in agency and company business, this lively discussion was needed more than ever. This forum always draws a large crowd and this year was no different. Extra chairs had to be brought in to accommodate the participants.

Real Time is supported by the IIABA and the Agents Council for Technology (ACT) and is a stepping-stone for broader connectivity.

It was acknowledged that there has to be a balance between security and functionality in the workplace.

“The dream is a single entry, multiple company interface,” said Jeff Yates, executive director of the Agents Council for Technology (ACT). “Real Time is the way to get there.” Yates also spoke at the afternoon IT session.

Losing these devices is also a security risk and very common. Anthony Lopez, president and CEO of Equivus, a security consulting firm, said that one airline gathered 160,000 lost tablets from airports. This is a problem and one that could be expensive. Lopez said that breach of data costs companies over $300 per client record.

Another method of gathering information is the commercial lines policy detail download (CLDL). Commercial lines download allows users to electronically download policy information, including policy coverages, locations, drivers, vehicles, premiums, etc., directly into the agency management system. This system has received criticism for a number of reasons (i.e., overwriting policy information) but its capabilities have improved greatly. One forum participant said to give CLDL another chance because of the quality improvements. Costakis said his agency tried CLDL for 2-3 years a few years back and then stopped using it. The agency was not getting what it wanted from the download. However, The Murphy Group has started using CLDL again. One of the reasons Costakis cited for revisiting commercial download was training. Agencies should have a process in place so users know how to perform the download correctly. Another big issue facing agents is breach of data. In this era with tablets and smartphones everywhere, personal and insurance information is literally carried in the palm of one’s hand. Chris Costakis handed his phone to Karl Seidl and asked, “Is this a data breach?” It’s a question that could be discussed at length but the simple answer is yes. If the phone is not password protected or encrypted, a person could access a client’s confidential information.

The discussion moved away from security to market share. Scott Deetz said that independent agencies have been losing personal lines market share to direct writers. To combat this, the national Big “I” and other groups have aligned together to create Project CAP, or Consumer Agent Portal.

 Karl Seidl and Chris Costakis (in blue) stand before the assembled forum participants. Seidl and Costakis moderated the session which drew around 80 agents and other company representatives.  Jeff Yates (2nd from left), ACT Executive Director, makes a point at the automation and technology open forum on May 9.  Scott Deetz (2nd from right), president and CEO of Project CAP, talks about the need to efficiently link consumers with independent agents online.

With Project CAP, consumers will be able to evaluate dozens of insurance companies and have the opportunity to select an independent agent who will advocate for them. Deetz said the portal will “connect consumers with agents” using digital marketing. It is a way to potentially reach younger customers who are accustomed to and comfortable with shopping online.

AUTOMATION/TECHNOLOGY OPEN FORUM

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

Social media is also a way to reach younger customers. One participant said that Facebook is an “animal.” One survey found that over 50 percent of the younger generation has no e-mail account. They use Facebook as their means of communication. Currently, Facebook has around 900 million active users. To keep abreast of the fast moving technological changes, please visit ACT’s Web page at www.iiaba. net (go to Member Resources on the home page and click Agents Council for Technology) and www. getrealtime.org for more information. Also, visit projectcap.info and www.projectcapmarketing.com.

WISCONSIN INDEPENDENT AGENT

JUNE 2012

WISCONSIN INDEPENDENT AGENT

V I EW F R O M T H E TO P E X ECU T I V E PA N E L : P OS I T I V E S I G N S FO R T H E F U T U R E

The executive panel Q&A on Wednesday morning always draws a large crowd. Before moderator Jeff Thiel introduced the executives, State National Director Skip Hansen took stage to honor the veterans in attendance. “I want to thank our military personnel for their service,” said Skip. “We often take our freedoms for granted but people in other countries marvel at our freedom to assemble and speak.” Skip offered his reflections about the challenges and hardships his Dad faced as a Vietnam veteran when he came home from that war. He asked the veterans in the crowd to come to the front of the stage for some recognition. Approximately 20 men came forward. The company leaders answered a variety of questions about the state of the industry including how the market is doing, industry challenges like agency perpetuation, service, innovations, and social media. Overall, the executives agreed that the insurance market was improving. “Personal lines are inching up,” said Mike Donohoe, owner and agent of the James R. Weir

Agency. Larry Schreiber said that the health insurance market was “stable and competitive.” Rick Parks said that the weather in 2011 was “biblically bad” and the bottom line was disappointing, but he is optimistic for 2012 and beyond. Dave Pauly said he thought the industry was in a “rational market.” One challenge that needs to be addressed is perpetuation. “Many people will be retired in ten years,” said Donohoe. “It’s a challenge for older agents to deal with changing technology. We’ve got to be faster. We’re behind and we have to catch up.” Staying on technology, Larry Schreiber said the use of radio-frequency identification (RFID) chips will revolutionize the industry and our lives. The chips use radio-frequency electromagnetic fields to transfer data from a tag attached to an object, for the purposes of automatic identification and tracking. For a practical application, a smartphone installed with a chip would eliminate the need for “ATMs or a wallet full of credit cards.”

“The applications are endless,” said Schreiber. A chip imprinted on a person’s medication could relay information to a doctor after the person ingested the pill. A more down-to-Earth idea — service — was also discussed. “Service sells in 2012,” said Dave Pauly. “If you’re a customer today and you call on May 10th, you want your quote on May 10th or May 11th. People today want faster service.” Social media can be a big part of improved service. “Social media is an opportunity to brand yourself,” said Rick Parks. “You can use it like you’re sitting across the table form someone in your office. That’s important to people.” Larry Schreiber took it a step further and said that he thought business will be conducted through social media sites in the future. “Today, Facebook users spend 12 hours a month online and there are 150 million Americans on Facebook,” he said. Worldwide, there are approximately one billion Facebook users.

EXECUTIVE PANEL OPENING SESSION

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

1 Skip Hansen paid tribute to the veterans in attendance at the panel discussion. 2 Jeff Thiel (at podium), R&R Insurance, listens to Dave Pauly as he answers a question. Jeff moderated the panel discussion and read the questions. 3 The executives who took part in the View From The Top panel discussion. From left: Dave Pauly (President and CEO, Capitol Insurance Cos.); Larry Schreiber (President, Anthem Blue Cross and Blue Shield; Mike Donohoe (Chairman, Independent Insurance Agents & Brokers of America); and Rick Parks (President and CEO, Society Insurance).

 A large crowd is always on hand for the Wednesday morning executive panel Q&A.

JUNE 2012

WISCONSIN INDEPENDENT AGENT

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

CONTINUING EDUCATION

T EC H N O LO GY, AG E N CY M A N AG E M E N T, WO R K E R S’ CO M P & M O R E Changes in the insurance industry are IIA of Wisconsin’s continuing education commonplace so it’s necessary to keep up roster at the convention brought together on the latest trends and information. The excellent speakers and expert instruction.  Association General Counsel Josh Johanningmeier touched on a variety of topics including certificates of insurance and tort reform.

 Tad Cleveland of the Wisconsin Compensation Rating Bureau talks about workers’ compensation at the Kalahari. Janelle Krainz and Erin Pinney also presented at this session.

 Continuing from where the Automation/Technology open forum left off in the morning, Jeff Yates, executive director of the Agents Council for Technology (ACT), engaged attendees with a timely IT workshop about technology and where it’s headed in the future. In part 2 of the IT workshop, mobile devices (e.g., smartphones, tablets, etc.) and agency data management were key topics.

Trust the  Employee benefits are a hot topic and David Harvey of the International Foundation of Employee Benefit Plans brought his expertise on this topic to the convention. David’s session focused on how employee benefits practitioners can succeed in this world of health care reform.

experts.

SFM–The Work Comp Experts Claims, legal and medical expertise. Optimal results in preventing injuries and controlling costs. Highest levels of customer satisfaction and retention.

 Dirk Nohre always draws big crowds and his agency management session proved to be another winner on Wednesday afternoon. Dirk is the owner of Nohre & Co. in Eau Claire.

A leading regional insurer, specializing in workers’ compensation.

Let SFM quote your workers’ compensation business. Call (800) 937-1181 or visit www.sfmic.com

JUNE 2012

WISCONSIN INDEPENDENT AGENT

C H A M P I O N S B E AT T H E F I E L D PA RT Y: F R I E N DS H I PS & F U N After a busy day in the exhibit hall and in the classroom, industry leaders, independent agents and company representatives were ready to have a good time at the Champions Beat The Field opening night party. Endless Summer provided the great musical entertainment and cranked out the hits for 3 ½ hours without a break. Food and drink were in abundance and, as the night progressed, more and more people took to the dance floor.

The photographs on these pages capture the friendships and fun that have been the mainstay of conventions for a long time. Thanks to everyone who joined us for our Association’s biggest night. See you next year! The 114th annual state convention is scheduled for May 8 and 9, 2013, at the Marriott Madison West in Middleton, Wisconsin.

Editor’s note: Special thanks to Lynne Helbach for her photography skills at the party. These pictures and many more will be posted on the IIA of Wisconsin’s Web site in the Member Reference Library. To view them, open the 2012 Convention folder. Next month’s magazine will feature photographs of the exhibit hall.

 John Bakkestuen, Paul Geyer and Gary Ascher at the party. Who is that peeking through?

 Kevin Murray and friend enjoy the evening.

 The Hanover once again graciously sponsored the $3,500 money drop at the end of the opening night party. This is just moments before the balloons fell to the floor.  The opening night party was packed with photogenic people having a great time.  Indianapolis’ Endless Summer Band rocked the party for three plus hours with no let up.

 We all wish Cap would loosen up and just enjoy himself. From left: Cap Wallrich and Scott Hansen.  Dan Hudzik shows off his moves before he made it to the dance floor.

 This is just moments after the balloons fell and the mad scramble began.

OPENING NIGHT PARTY

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

 Chris Costakis, Karl Seidl and Wayne Kiefer

 There was no shortage of smiling faces. From left: Dan Lau, Neil Ziegler and Ericka Schaefer.

 Fred – what are you looking at?

 Austin Durham and Amy Driscoll enjoy the party.

 Janel Bazan and Patti Smits

 Who likes to have a good time? We do!

 Allison Banaszynski, Heidi Nienow and Kathy Faltersack love to have their picture taken.

 Jeff Rasmussen and Jeff Thiel

 Matt Banaszynski, John Vose and Mike Hierl early in the evening.

OPENING NIGHT PARTY

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

 Skip Hansen (right) makes a point to Mike Donohoe and Scott Deetz.

 On the dance floor, Linda Steiner, Lynne Helbach and Vicki Lentz tear it up.

OPENING NIGHT PARTY

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

GOVERNOR HEADLINES MORNING MEETING

Gov. Scott Walker’s appearance generated the most buzz this year, but the Thursday morning awards breakfast was packed with engaging speakers and top industry talent. Before he introduced Rep. Robin Vos (R-Burlington), IIA of Wisconsin President Mike Hierl introduced the current Executive Committee and board of directors and praised them for their dedication. “It has been my pleasure for the past several months to work with this talented group of professionals,” said Hierl. Mike also introduced his wife, Melissa, and two daughters and acknowledged the “sacrifices” the girls had to make to be there like missing school, staying in the presidential suite, and playing in the Kalahari waterpark. Rep. Vos then took the stage. His remarks focused on the need of government to function within its means because of tight budgetary constraints. Small business owners, like those that are part of the IIA of Wisconsin, know that you can’t spend what you don’t have. “If you lose one customer, is it OK to charge a fee to all your other customers to make up for it?” he said. “The private sector does not work that way.” In this era to find business you “have to be smarter, more efficient and hungrier.” This goes for government, too. Rep. Vos, co-chair of the Legislature’s Joint Finance Committee, left the stage to a rousing round of applause and thanks for his hard work on behalf of the industry.

The main attraction was next but he made the crowd wait. Mike announced that the governor was en route so the crowd of approximately 400 (including TV crews from Fox 6 in Milwaukee and WKOW in Madison) took an unscheduled break. When the governor did arrive, he walked in with Matt Banaszynski, IIAW Executive Vice President, and listened to Mike’s introduction. “(Since his inauguration) he has proposed bold reforms that have eliminated the state's $3.6 billion budget deficit without raising taxes and gave school districts and local governments the tools to balance their budgets without the massive layoffs seen in other states,” said Hierl. “Please join me in welcoming Governor Scott Walker.” After a standing ovation, the governor talked about the successes of his administration including allowing school districts to bid out their health insurance. This move alone has saved smaller school districts thousands and thousands of dollars. When he was inaugurated, he held the oath of office in front of the Constitution of Wisconsin because of one passage that’s never been amended or changed. It’s a defining passage for him as governor. “It’s the part that talks about the proper role of government in our life,” he said. “It’s not conservative or liberal, Republican or

Democrat but simply this: ‘Moderation and frugality in government leads to freedom and prosperity for our people.’” This struck a chord with the crowd and he left the stage to another standing ovation. The next speaker had the unenviable position of following the governor on stage but Rob Bell handled this tough task with humor and grace. “I’ve never had the governor open up for me before,” he said before beginning his presentation, “Make ‘em say WOW!” His speech focused on ways to provide great customer service and his performance was enthusiastic and energetic. He stressed the importance of being positive and reaching out to customers because “people want to do business with friends.” Rob, the founder of Focus Consulting, also touted the benefits and power of social media — “word of mouth on steroids” — and the power of body language. “Our real thoughts are more powerful than we realize and more visible to others than we like to think,” he said. To close out the breakfast, Mike Hierl announced the winners of two $500 cash prizes courtesy of Germantown Mutual. John Wickhem and Brent Schuler were the lucky recipients of the money.

 While waiting for the governor to arrive, Ted Nickel, Commissioner of Insurance, spoke with Rick Parks, president and CEO of Society Insurance.

 The governor’s remarks touched on the role of government, deficit reduction and job creation.

 Gov. Scott Walker with Matt Banaszynski, IIAW Executive VP, just moments before the governor addressed the awards breakfast attendees.

WISCONSIN INDEPENDENT AGENT

JUNE 2012

ANNUAL AWARDS BREAKFAST

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

1 David Craig, Robertson-Ryan & Associates, received the Young Agent of the Year award. “His growth and accomplishments as an agent at Robertson-Ryan & Associates have been exemplary,” said Hierl. 2 Mike Ansay (left), Ansay & Associates, accepted the first-ever Government Affairs Agency Leader of the Year Award from IIAW President Mike Hierl. Ansay & Associates led all agencies with contributions to InsurPAC and Insuring Wisconsin PAC. The award will be a traveling trophy. It will be up to the previous year’s award winner to hold on to or defend the award from moving on to another agency. Each year every agency will have the opportunity to win this trophy for the year. . 3 Vicki Lentz, SECURA Insurance, received the Industry Representative of the Year award for her active leadership as a member of both our Membership and Industry Relations Committees. “Her cooperation and creative thinking helped generate new methods in marketing to attract new members and retain existing agencies,” said Hierl. 4 Rep. Robin Vos (R-Burlington) received the IIA of Wisconsin’s Legislator of the Year Award from Mike Hierl. “He is being recognized for his relentless efforts to provide Wisconsin with the best insurance and business marketplace possible,” said Hierl. 5 David Dunker, Zingen & Braun, accepted the Agent of the Year award from Mike Hierl. David’s service on the Agency Operations Committee, Executive Committee, and as an advocate of government affairs program make him an invaluable member of the Association. “He embodies the very principals and ideals this association was founded upon,” said Hierl. 6 Arvid “Dick” Tillmar, owner of Tillmar Connect, received the firstever Employee Benefit Agent of the Year award for his work on the Employee Benefits Committee and for helping the Association partner with the International Foundation of Employee Benefit Plans. “With his many years of experience in health insurance and wellness he is helping the association expand its focus and services,” said Hierl. 7 Mike Walston, Walston Insurance Associates, Inc., accepted the Committee Chairman of the Award for his outstanding work as the chairman of the Smaller Agencies Committee. “His hard work and dedication to the Association over the years is unparalleled,” said Hierl.

JUNE 2012

WISCONSIN INDEPENDENT AGENT

MORE THAN JUST DOOR PRIZES ANNUAL BUSINESS MEETING:

(ALTHOUGH THERE WERE SOME REALLY GOOD ONES) The convention’s final piece of business is the annual business meeting. Dave Dunker, who reported on the Association’s finances, began by saying that this will be “the most exciting two minutes of the convention.” He said that the IIA of Wisconsin is financially strong. Association President Mike Hierl, who did a fantastic job throughout the convention, praised the IIAW’s committee structure. “I can’t say enough about the dedication of the great volunteers who serve on IIA of Wisconsin committees, and with me on your board of directors,” he said. “It is very satisfying to be part of the team of volunteers.” He thanked the convention’s sponsors for their support and read their names: SECURA,

I CAN’T SAY ENOUGH ABOUT THE DEDICATION OF THE GREAT VOLUNTEERS WHO SERVE ON IIA OF WISCONSIN COMMITTEES.

ACUITY, Integrity, Wisconsin Mutual, Wilson Mutual, Capitol Insurance, Progressive, Society, Pekin, QBE, West Bend Mutual, Travelers, The IMT Group, The Hanover, and Anthem Blue Cross and Blue Shield. He also thanked the following companies: Germantown Mutual for two $500 cash

awards; The Hanover for sponsoring the $3,500 balloon drop; The IMT Group for the $1,200 given away in the exhibit hall; Society and Mt. Morris Mutual for donating iPads; and the Agents Assistance Corp. for the $1,000 given away at the business meeting. “You have all added a lot of fun and excitement to the convention,” said Hierl.

Office of the Commissioner’s Insurance Property and Casualty Advisory Council,” said Matt as he read from the certificate of appreciation. Then Roger Abbott took the podium for the last time to pick names and hand out door prizes. His inimitable style will be missed.

Mike acknowledged retiring board members Chris Costakis, Jeff Rasmussen and Fred Thomas for their contributions to the board. However, Jeff accepted another three-year position on the board.

Before handing out gifts, Roger paid tribute to Bob Nadolske, who died unexpectedly in March 2012. He asked the assembled for a few moments to remember Bob. Bob was a great supporter of the IIA of Wisconsin for more than 30 years and helped out at the business meeting with door prizes on many occasions.

“I would like to thank our retiring board members for their years of service in helping to guide the IIA of Wisconsin,” he said.

“He was a friend,” said Abbott.

Then Board Chair Linda Steiner took the podium to swear in the 2012-13 Executive Committee and board of directors. They are: Mike Hierl (chairman); Mike Froh (president); Dave Dunker (president-elect); John Wickhem (secretary/treasurer); Tom Holter (board member); Lise Meyer Kobussen (board member); Cap Wallrich (board member); Matt Weimer (board member); Bruce Kommers (board member); Don Williams (board member); Jeff Rasmussen (board member); Jason Bott (board member); and Mike Ansay (board member). Jason Bott and Mike Ansay are new to the board. Linda Steiner will replace Skip Hansen as the State National Director. Skip served six years in this capacity and he received a plaque from the governor (presented by Matt Banaszynksi) that recognized his importance to the Association.

Something supernatural took place when Roger pulled the very first business card from the container to award the first $100 prize. Roger looked at the business card and said, “This was not planned. Linda Nadolske.” Linda made her way to the stage to claim her prize and a big hug. “He’s working up there,” said Abbott. “Amazing.” To win a prize, the person must be at the business meeting to claim the prize. Whenever a name was called and the person was not there, the crowd would let out a collective, “Awwwww” and Roger would say straightfaced, “That’s a shame.” There were several multiple award winners but Sheryl Loy of Schwarz Insurance was the big winner and has her Christmas shopping done early. She took home three Kindle Fires and a flat screen TV.

“Skip…continually demonstrates his dedication to the IIAW legislative affairs initiatives by representing the association at legislative events, advocating for our industry at legislative hearings, and serving on the

WISCONSIN INDEPENDENT AGENT

JUNE 2012

1 Board Chair Linda Steiner swears in the 2012-13 board of directors. From left: Lise Meyer Kobussen, Tom Holter, Mike Froh, Dave Dunker, John Wickhem, Mike Hierl, Mike Ansay, Jeff Rasmussen, Jason Bott and Cap Wallrich. 2 Skip Hansen received a gubernatorial certificate of appreciation for his service to the Association as the State National Director. 3 Roger Abbott and assistant Mary Morrison hand out door prizes at the business meeting. This year was Roger’s last as the prize master and host. 4 Sheryl Loy took home a nice haul at the annual business meeting.

ANNUAL BUSINESS MEETING

> IIAW ANNUAL CONVENTION | CHAMPIONS BEAT THE FIELD

CO M M U N I C AT I N G T H E VA LU E O F T R U ST E D C H O I C E ® Business owners — including independent insurance agents and brokers — often make assumptions about customers and prospects that aren’t always on target. Why?

We are seeking quality agency appointments to become part of our “Worry Free” family. Simply bundle your customer’s auto, home and business insurance into IMT’s “Worry Free” bucket, and you will be worry free too.

One reason is that you’re too close to the situation. It’s difficult to step back and observe our industry from the consumer’s point of view. For example agents often assume that most consumers understand the words “independent,” “insurance” and “agent.” But in the research that led to the development of Trusted Choice®, most consumers said they were confused about the insurance shopping experience — specifically who you are, what you’ll do for them and where they can find you.

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The Trusted Choice® brand is designed to clearly address that very disconnect. The beauty of the brand is that participating agents and brokers are giving back to consumers precisely what consumers said they desire in an insurance provider: customization, advocacy and choice.

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So it’s the responsibility of all Trusted Choice® participants — the Independent Insurance Agents & Brokers of America (the Big “I”) and its state affiliates, carriers, agents and brokers — to communicate to consumers the clear value of the

GOING BEYOND • Competitive Rates A U TO

• Company Trips Every Year • Social Media Campaign • Easy-to-Use Raters for All Lines of Business • Upload and Download Capabilities • Qualified Field Representation • Training Department with CEC Classes

LIFE

• Life, Annuity, and Health Specialists • E-Applications • Competitive Products in All Lines with Exemplary Endorsements and Enhancements • Agent-Friendly Intranet Site

HEALTH

brand. This isn’t a unique task; all smart brands remind customers and prospects of their unique advantages. And they remind customers over and over again — in multiple media. Tell customers and prospects of the value you’ll bring them. Remind them in your advertising, on-hold messages, newsletters, Web site, sales presentations, thank you notes to new customers, and so on. You are in the driver’s seat as a Trusted Choice® agent. You can compete locally with a great message and a target audience. Don’t let the competition outbrand you by failing to communicate. The IIA of Wisconsin supports Trusted Choice®, which provides you a powerful ingredient adding value to your brand. It supports your effort to retain customers and grow market share. Trusted Choice® is our future together. For more information, visit www.TrustedChoice. com/agents.

You are in the driver’s seat as a Trusted Choice ® agent. You can compete locally with a great message and a target audience.

• Profit Sharing (1-Year Agreement with Lock-In Option) • Co-op Advertising Program

BUSINESS

• Unique Commission Earning Opportunities • Broad Portfolio of Products (Personal Lines, Commercial Lines, Life, Health, and Annuity)

HOME

Trusted Choice

• 24-Hour Claim Call Center with 4-business-hour call-back Guarantee • Catastrophe Team with Mobile Claim Office

Write for a company that continually searches for ways to become the easiest company for your agency to communicate and do business with.

Trusted Choice

Pekin Insurance Beyond the expected.

2505 Court Street Pekin, IL 61558 800-322-0160, Extension 2394 www.pekininsurance.com

• And, there’s much more!

WISCONSIN INDEPENDENT AGENT

JUNE 2012

WISCONSIN INDEPENDENT AGENT

COMMENTARY FROM COUNSEL

TRAVELING THE STATUTORY HIGHWAY:

MANDATORY MOTOR VEHICLE LIABILITY COVERAGE REVISITED

If you cannot place all of your clients’ personal insurance needs, they will find someone who can.

In the two years since Wisconsin’s mandatory liability insurance for motor vehicles took effect, one question has been raised often enough to merit a short column — what about vehicles in storage? had their licenses revoked or suspended, or vehicle owners who have had their vehicle registrations revoked or suspended, but those are separate issues.

The short answer: if the vehicle is not being operated on state highways, it need not be covered by a motor vehicle liability policy. Here is why not, both legally and practically.

The Wisconsin Office of the Commissioner of Insurance (OCI) publishes a Consumer's Guide to Auto Insurance that also supports this conclusion. The current version, revised in May 2011 — nearly a year after mandatory motor vehicle liability insurance took effect — says this about vehicles in storage:

Mandatory motor vehicle liability insurance in Wisconsin was one product of the 2009-2010 budget bill and, with regard to automobile insurance, one of the few products of that legislation that remained intact after the Consumer Choice in Auto Insurance Act passed and took effect in 2011. The compulsory insurance requirement is contained in Wis. Stat. § 344.62. Section 344.62, aptly titled Motor vehicle liability insurance required, provides: Except as provided in s. 344.63, no person may operate a motor vehicle upon a highway in this state unless the owner or operator of the vehicle has in effect a motor vehicle liability policy with respect to the vehicle being operated.

The exceptions in Section 344.63 are narrow and not relevant to the issue of vehicles in storage. Section 344.62 also requires the operator of a motor vehicle to produce proof of insurance upon demand from a traffic officer. Penalties for operating a motor vehicle without a liability policy in effect can reach $500, while not having proof of insurance immediately available for a traffic officer may subject the operator to a penalty of up to $10 (which can

be avoided if proof of insurance in effect at the time of the traffic stop is subsequently provided). The statute is explicit — it requires a vehicle to be insured if, and only if, the vehicle is being operated upon a Wisconsin highway. Other statutes may require proof of insurance (or some other form of proof of financial responsibility), as a condition precedent to the reinstatement of vehicle operators who have

No person may operate a motor vehicle upon a highway in this state unless the owner or operator of the vehicle has in effect a motor vehicle liability policy with respect to the vehicle being operated. WISCONSIN INDEPENDENT AGENT

If you plan not to use your car for an extended period of time and decided to place it in a garage, you may want to ask your agent to suspend some of the coverages, so that you will not have to pay the premium associated with these charges. Your car might still be susceptible to physical damage, however, so you might consider maintaining comprehensive and possibly collision coverage while your vehicle is in storage.

Against this backdrop, it is clear that a vehicle in storage need not be covered by a motor vehicle liability policy. From both a practical and an enforcement standpoint, this also makes sense. A stored vehicle presents little or no risk to others and, of course, will not be the > Josh Johanningmeier subject of a traffic is the IIAW’s General stop where proof Counsel. Call the Legal of insurance may Services Hotline at (877) 236-1669. be demanded.

JUNE 2012

When it comes to personal insurance, every part matters. Because when one piece goes missing, the entire account could come undone. At Burns & Wilcox, we can insure individual portions of their coverage or the whole account. So you do not have to turn away any business. We have the expertise, resources and experience that can only come from being the largest independent wholesale broker and underwriting manager. Need help with personal insurance? No one has you covered like Burns & Wilcox. Milwaukee, Wisconsin | 262.347.0266 toll free 800.544.5700 | fax 262.347.0440 milwaukee.burnsandwilcox.com s #OMMERCIAL s 0ERSONAL s 0ROFESSIONAL s "ROKERAGE s "INDING s 2ISK -ANAGEMENT 3ERVICES

WELCOME TO THE IIAW! NEW IIA OF WISCONSIN MEMBERS FOR 2011-12

PROJECT CAP’S THREE Rs OF WEB SITE RANKING:

RELEVANCE, REFERRALS & RECENCY



Homestead Agency In Principal: Patrick Bren c. nand 5291 County Road II Larsen, WI 54947 Phone: 920.836.0285

Avid Risk Solutions Principals: Brock Ryan and Ben Shortreed 2009 W. Beltline Highway, Ste. 103 Madison, WI 53713 Phone: 608.229.AVID (2843)

PROJECT CAP

Project Cap’s mission is to help independent agents increase their online visibility and revenues. That is the impetus of this article.

A question that agents continually ask is “How do I get my Web site to the first page of the search results?” The answer to that question isn’t easy, nor is it the same for any two searches. A sobering statistic is that only 11 percent of searchers actually click through to the second page of the search results according to a December 2010 study by Optify. Thus, getting an answer to the question is vital to any digital marketing strategy. Books can be (and have been!) written about this topic. The purpose of this article isn’t to answer the question on how to achieve page one rankings. Rather, the intent is to provide some background for the uninitiated on how pages get rated.

Rattunde-Ott A Principal: Ga gency ry Ott 215 S. Main S tr Necedah, WI eet 54646 Phone: 715.4 24.2233

BACKGROUND Today, the major search engines compete with each other for both users and advertisers. Because they generate most of their revenue from advertising sales (aka Pay Per Click or PPC), it is critical that they have plenty of folks like you and me coming to their sites to start our searches. The primary way that they keep us coming back is to give us good results when we start our search about the origins of the Bauhaus art movement, the best local steak house, or information on long haul trucking insurance. Search engines provide two types of results: natural (also called organic) and paid results. As you might guess, paid results are from companies who are paying PPC fees to be listed on the screen. Natural results are what the search engine believes to be the best match for the searcher’s request. If a search engine consistently points you to Web sites that don’t provide valuable information, you will use another search engine that is more helpful. For that reason, the search engine providers continually tweak their search algorithms to provide better search results.

RANKING SEARCH RESULTS How does a search provider know whether you value the results they provide? It’s very simple actually. You tell them. When you perform a search and click on either a paid or natural listing, the search

WISCONSIN INDEPENDENT AGENT

JUNE 2012

provider watches your behavior very closely. If you immediately hit the back button; you signal to the search provider that you found no value in the page. If on the other hand, you spend time on the page, and click to other pages on the site, the provider is pretty sure that you found what you are looking for. Therefore, the odds that they will serve that page to others searching for the same information will increase. Search engines use very complicated ranking methodologies (aka algorithms) to determine the value of each and every page. (Note: As always, the ongoing challenge online is that the major search engines continually tweak their algorithms, so that advice is current as of spring 2012.) The first step in the process is when a new page gets added to the search engine provider’s list of known sites. Each search provider has automated tools (aka spiders) that are constantly searching the Web, and when they find a new page, they look at it from a number of perspectives. Ultimately, this examination and subsequent activity determines how a page will rank. I have developed a simplified model I call the Three R’s of Ranking that will hopefully shed some light on how you might move your page up the list toward your ultimate destination: the first page!

THE THREE Rs . OF INSURANCE RANKING Chances are you've heard of the old three Rs: Readin’, ‘Ritin’ and ‘Rithmetic. I'd like to propose a new set of Rs which, if implemented correctly, will help your insurance agency or company do well in search ending rankings, (i.e., helping you improve how your business shows up in a search engine results page). The major search providers use dozens if not hundreds of factors to determine how well a specific Web page fits the searcher's intent. For

Only 11 percent of Web searchers actually click through to the second page of search results. WISCONSIN INDEPENDENT AGENT

simplicity I have distilled these down to the three Rs: Relevance, Referrals and Recency. To move these concepts from the arcane world of the Internet to an area where we have day-today experience, let's think about them in the context of insurance sales.

RELEVANCE. You can think about relevance in terms of discussing relevant information with your prospect. If your prospect asks about homeowners insurance, and you respond with information on auto insurance, your results won't be as good as if you had responded with direct information about critical issues regarding their home and personal property. Therefore, if consumers are searching for a particular phrase + (plus) insurance, your page will rank better if your content on that page is exclusively focused around that particular phrase. REFERRALS. For referrals, how much better will a prospect respond if you have been referred to them by someone they know and you reference that friend, rather than approaching them without any sort of introduction? On the Web, referrals are links from other Web sites to yours.

RECENCY. As for recency, aren't you more likely to write an insurance account if you follow up with clients regularly rather than just calling them at the expiration date and expecting them to remember you when you haven't talked to them in months? If you aren't regularly > Marty Agather is the updating content of VP of client development your Web page, the for Project CAP. Project search engines may CAP was created through believe that your site is an alliance of the IIABA, stale and doesn't provide Trusted Choice®, state valuable information to associations and key insurance carriers. the searcher. Contact Marty by As you can see, these e-mail at martyagather@ three Rs provide us with projectcap.info. For a framework to evaluate more information about our Web pages and their Project CAP, please visit projectcapmarketing.com effectiveness. and projectcap.info/blog. 27

WHERE’S THE FIRE?

AVOIDING E&O CLAIMS FROM FIRE LOSSES Every fire loss claim covered by an insurance policy begins and sometimes . ends with the agent who sold the policy. However, avoiding an E&O claim related to a fire loss begins and always ends with you understanding the process. Remember, the fire loss doesn’t start with the fire; it starts with the application.

I. Getting Started: The Application It has become increasingly common for carriers to attempt to avoid covering a loss when they determine that the risk as represented on the application is materially different from the actual risk insured. In some states, the misrepresentation on the application does not even have to be related to the ultimate cause of loss for the carrier to deny the claim and void the policy ab initio (back to the beginning). And if that happens, where’s the first place your customer will look to have that loss covered? Hint: go look in the mirror. Faced with an uncovered loss, the policyholder may begin to focus on the agent in an attempt to shift blame and recover any damages. Therefore, it is essential to submit accurate information on the application for insurance to avoid potential E&O liability. After an uncovered loss occurs and the customer brings suit against the agent, typically they will testify that they gave the correct information to the agent who then incorrectly filled in the blanks on the application. The policyholder may go on to say he did not have a chance to review the information and relied on the agent to correctly complete the application. Lesson One: NEVER fill out an application for a customer. ALWAYS make sure THEY complete and sign the application themselves. Other claims arise when the policyholder alleges that he told the agent the correct information but the agent specifically advised that the information did not need to be disclosed on the application. These situations typically descend into a scenario where it is one person’s word against another. Lesson Two: NEVER advise a customer that information should not be put on an application. When in doubt, write it down. Matters become worse if the customer testifies that even though the application is signed, it is not his signature and the customer did not authorize anyone to sign on his behalf.

Agents are often tempted to complete an application with information received over the phone and they are given permission to sign the application on the customer’s behalf in order to save time. Pay attention to Lesson One and Two; don’t give into the temptation.

media and many times the agent becomes aware of a fire while it is still burning. Often a policyholder will call the agent from a fire scene wanting to know what to do and ask for assistance in reporting the claim. Problems

After you receive the completed application from your customer, be sure to review it to ensure that all the questions and information have been completed and included. The agent should make sure the application includes accurate information regarding prior fires/claims (regardless of size), prior denials/ cancellations and unusual fire hazards. You Avoid E&O claims from fire losses. Be thorough when filling out the application for insurance. may not realize it, but unusual fire hazards can be encountered with the application for a homeowner’s policy can arise when the agent is asked if there where the applicant has a hobby or part time is coverage for the fire loss and the agent job that requires them to store large supplies responds without reviewing the policy. of flammable liquids. This is the type of risk a carrier will say they would not knowingly Lesson Three: Never advise the policyholder accept. Further, agents should include all what will or won’t be covered. While your known relevant information an underwriter first inclination is to tell them what you would obviously want to know, such as prior think, let the adjuster for the carrier give that losses at other properties owned by the same information. You can help them contact the individuals (even if technical ownership is by carrier, but after the loss is reported, get out of a different corporate entity). the way. Without looking at that customer’s actual policy, an agent may assume fire II. Claim Assistance coverage is in place and tell the policyholder Fires can be big news events for the local not to worry.

WISCONSIN INDEPENDENT AGENT

JUNE 2012

Always remember to document, document, document. . If there’s no documentation, it didn’t happen.

While many policies are identical, there is a chance that there is some special provision that could apply. In many instances there is no coverage for a number of reasons including the policy recently lapsed for nonpayment of premium. In other instances the policyholder may have several locations covered under the policy but forgot to add the location that suffered the loss. Sometimes there are special requirements under a commercial policy that require the policyholder to take certain precautions to lower the fire risk such as having sprinklers in place or special fire alarms. If the policyholder has not complied with these requirements it may cause the claim to be denied. A significant problem arises when an agent assumes a legal duty he may not otherwise have by agreeing to notify the carrier of the fire. If the agent agrees to assume this duty, care must be taken to notify all of the customer’s potentially responsible carriers. Courts have held that if an agent assumes a duty it must carry out that duty without negligence. After a fire is extinguished and all the fire fighters, trucks and equipment are gone, the policyholder can be very anxious to get the clean up work started. The policyholder may ask the agent if he may proceed with the clean up work. Although the cleanup seems to be a routine matter to the agent, this approval to start should come from the adjuster or carrier, and not from the agent. If the work is started because the agent told the policyholder to start but the carrier later denies the claim after investigating, the agent may be in a difficult situation. The policyholder will look

JUNE 2012

to the agent for any costs associated with the cleanup if the carrier refuses to pay. The same holds true with repair work. Sometimes the policyholder, carrier and contractor point their fingers at the agent when the carrier refuses to cover the work entirely or says the expense is in excess of what the policy will allow. Let’s assume the agent tells the policyholder to start the repair work and the current building codes require additional work beyond just repair. The policy may exclude or limit coverage for any work associated with the improvements to meet the current building codes. When the carrier denies this expense in whole or in part the contractor will look for payment from the policyholder. The policyholder in turn will look to the agent since he gave approval to proceed.

III. Paying The ClaimActual Cash Value vs. Replacement Cost After the fire and cleanup, then comes the task of paying the loss from the fire. In general, there are two methods to determine how much should be paid: Actual Cash Value vs. Replacement Cost. Simply stated, Actual Cash Value (ACV) is the actual value of the property at the time of the loss less depreciation. Replacement Cost (RC) is how much it would cost to replace the property if it were to be rebuilt just as if it had never been destroyed. There are many variables that can play into these amounts, but in most instances ACV is less than RC. The agents’ job is to make sure that at the time the policy is applied for, that the customer understands the difference and that they make the decision about which type of policy they want, so that if a loss occurs, they know exactly what they will receive. After the loss, the policyholder may ask how much they will be receiving for their property. Many times, in an effort to be helpful, an agent may tell the policyholder that “everything is covered.” These words could come back to haunt them if everything isn’t covered. It is the carrier’s

WISCONSIN INDEPENDENT AGENT

duty to review the claim and determine how much is to be paid, not the agent’s. Lesson Four: Let the carrier discuss payment of the claim with the policyholder. You can be sympathetic with your customer, but after the loss only the carrier and their representatives can tell them how much they will receive. Hopefully, this has reminded you that as the agent, you must use due care when underwriting and responding to fire losses. That care starts with having your customer complete the application accurately and correctly. It continues through to claim reporting. But > Ed Barbosa, JD, is an assistant VP of Swiss remember — Re/Westport, handling adjusting the insurance agents E&O claim and all claims. This article activities related is meant for general to it should be informational purposes. Swiss Re shall not be done by the held responsible in any carrier or its way for, and specifically adjuster — not disclaims any liability the agent. arising out of or in any way connected to, While all of reliance on or use of this may seem any of the information routine, it is not contained or referenced inconsequential in this article. The and is sometimes information contained or referenced in this overlooked article is not intended during the rush to constitute and should of doing business. not be considered Oh, and one legal, accounting or professional advice, more thing: nor shall it serve as always remember a substitute for the to document, recipient obtaining document, such advice. The views document. expressed in this article do not necessarily If there’s no represent the views of the documentation, it Swiss Re Group ("Swiss didn’t happen. Re") and/or its subsidiaries and/or management and/ or shareholders.

Join the Cause

S E N . J O H N T H U N E ( R -S. D) A N D R E P. J O H N BA R ROW ( D - GA . ) A D D R E SS B I G “ I ” AG E N TS Lawmakers weigh in on health care, election year politics and the economy. On April 26, 2012, Sen. John Thune (R-S.D.) and Rep. John Barrow (D-Ga.) addressed the Independent Insurance Agents & Brokers of America (IIABA) membership at the association’s annual Legislative Conference & Convention. Thune and Barrow delivered keynote speeches at the legislative conference breakfast that occurs just prior to the association’s annual Big “I” Day on Capitol Hill. Every year, approximately one thousand agents and brokers visit Capitol Hill offices to lobby members of the House, Senate and their staffs on issues that directly impact independent agents and consumers.

the court’s past decisions where they had “taken the side of individual liberty when they looked at these issues.”

Thune said lawmakers need to come together to rein in government spending and craft policies to promote economic growth and boost domestic energy production to change the direction of the country.

The lawmakers weighed in on numerous top issues including health care, election year politics and the economy. Agents asked the lawmakers what they thought would happen to the Patient Protection and Affordable Care Act (PPACA), the constitutionality of which is under consideration by the U.S. Supreme Court. Thune said that while he couldn’t “predict how it’s going to come out,” he thinks the court will find the individual mandate to be unconstitutional by a narrow vote, based on

More Internet Marketing. More Insurance Prospects. More Agency Growth.

The individual mandate is the lynchpin of the law, he said, “because if they decide to kill off the individual mandate and declare it unconstitutional, then for all intents and purposes, it’s sort of a house of cards after that.” Similarly, Barrow said if he “had to bet the farm,” he would predict that the court would strike parts of law, such as the individual mandate, and leave the rest intact.

to Recapture Your Market Share.

Created through a partnership of the IIABA, Trusted Choice®, state associations and key investor carriers, Project CAP is an industry initiative with the vision and resources to recapture and expand the independent agency channel’s share of Personal Lines insurance. It starts with meeting consumers where they are, helping them find and connect with local agencies, and helping agencies leverage digital marketing to attract and recruit those prospects. SEN. JOHN THUNE (R-S.D) AND REP. JOHN BARROW (D-GA.)

“What worries me is if we carve out parts of it, we could have something that Congress never intended as being the law of the land,” Barrow said. “It would be the worst of all possible worlds.” Regardless of whether or not the court upholds the constitutionality of the law, Thune said health care will be a huge issue in this year’s presidential election. “Both sides are going to be trying to win the argument with the American people about how best to deal with the health care issue,” he said.

Thune said lawmakers need to come together to rein in government spending and craft policies to promote economic growth and boost domestic energy production to change the direction of the country. “If you look at where we are today, we need to get the country turned around — or we are heading for a train wreck,” Thune said. In addition, lawmakers also need to enact comprehensive tax reform, including simplifying the tax code and creating solutions for S corporations and limited liability companies, corporate structures often used

WISCONSIN INDEPENDENT AGENT

by agencies, that end up paying at a higher individual tax rate because they’re considered pass-through entities, he said. “That’s why this debate about the individual tax rate is so important,” Thune said. “Everybody seems to think that that just affects the rich in this country, but what they don’t realize is how much of small business income is actually paid at those higher rates, the individual rates.” He said he thinks that Mitt Romney, the Republican presidential candidate front-runner, will be elected president this fall over incumbent Democratic President Barack Obama. “People in this country — when they are concerned about their economic futures and when there is a lot of anxiety about pocketbook, bread and butter, kitchen table issues — are going to be looking for a different direction,” he added. While many believe Thune is on the short list of vice president contenders, when asked whether he would end up being Romney’s running mate, he said, “I don’t expect to be there.” Instead he anticipates he will ultimately be “in the Senate, hopefully working with a new president to take on big issues.” “In order to solve big problems, you’ve got to have presidential leadership,” he said.

www.projectcapmarketing.com

The Big “I” Legislative Conference & Convention is the insurance industry’s bestattended, most effective legislative meeting. This year’s event was held April 25-27 in Washington, D.C.

JUNE 2012

855.372.0070

JUNE 2012

WISCONSIN INDEPENDENT AGENT

The Independent Channel Is Losing This week, nearly 75% of personal insurance shoppers will begin their search for coverage online.* Yet, for the most part, independent agencies and

Independent Agency Channel Market Share Personal Lines Insurance 2010

carriers are invisible. As a result, the independent channel has lost more than 2% of the Personal Lines market in the past five years alone. Worse yet, every point now represents $2.4 billion in annual net premium – or about $260 million in agency commissions.

Independent Agents Should Be Winning Why are independent agencies falling behind? We still provide more choice. We

Source: A.M. Best

offer better service and real guidance. So, why are we losing market share? The fact is Personal Lines is still our market – but our consumer has changed.

Our Consumers Have Changed the Game

A New Model of Marketing Success

With three-quarters of insurance consumers online – and

Project CAP’s integrated online platform and “national

competitors dominating the space – independent agents

strategy of marketing locally” create a completely new

are missing a critical opportunity to tell our story of choice,

model for success. By leveraging the best practices of

customization and advocacy. Direct writers

digital marketing to raise the visibility of independent

alone may spend over one billion

agencies in their own markets – and linking those agencies

dollars on consumer marketing

to the national consumer website – we’ll create a

this year. How can

collective online presence no competitor can match.

we compete with that?

CAP

*Estimate. Source: Comscore

Our Agencies Must Also Change

If We Change – We Win

The fact is we can compete. We can also recapture market share. But we can’t do it by doing more of what

Participation in both the Agency Marketing and

we’ve always done. We must develop new marketing strategies that promote our unique value proposition, leverage our numbers across the Internet, and elevate our overall online presence. In short, we have to stop presenting ourselves like 22,000 individual agencies and

Consumer Website programs will not only improve our local agency and national industry online rankings, but amplify and align our unique marketing message. Working together, we can recapture market share and reclaim our dominance in Personal Lines.

start speaking as one clear voice. That’s where Project CAP comes in.

WISCONSIN INDEPENDENT AGENT

JUNE 2012

WISCONSIN INDEPENDENT AGENT

MARKETING MINUTE

AVOIDING THE DANGERS: IT’S NO TIME TO TRIP It happened on Thursday after lunch as I ran up five steps to the office holding a cup of coffee. On the second step, I tripped. Instantly I knew what happened. “Call an ambulance,” I shouted. It was a complete quadriceps tendon tear. This time on the right thigh. Four months later, the surgeon gave me these words of wisdom: “Don’t trip.” Those words are also good business advice. While “Don’t trip!” is a powerful message, it can be ignored, even at a time when it’s easier than ever to take a dive on the second step. When they “trip,” many businesses either don’t recover or remain badly injured. Yet, their missteps can make us more aware of the dangers and how to avoid them. Here are examples of what to watch out for.

Never compromise credibility. Yet, companies can’t resist “putting a spin” on their actions, which only makes them look stupid or worse. Take what Bank of America’s global strategy and marketing officer Anne Finucane said after her company pulled the plug on its $5 per month debit card charge in the face of a nationwide revolt led by a 21-year old parttime nanny. “We were too aggressive. We were convinced given the environment, given the reaction, given the mood of the country that it just wasn’t the thing to do,” she told the Boston Globe. This is pure corporate spin, jibberish and should be avoided at all cost. Always protect the company’s credibility, which she could have done by saying, “We made a huge mistake and we’re correcting it. We should have been better listeners. It was a good lesson for BofA.”

Watch out for the details. Paychex, a national company recently sent its 401(k) plan customers an urgent notice detailing an action they needed to take by a specified date. There was one problem: they neglected to include the contact information. What does that say about the company? A well-meaning company has a Website promoting its annual clothing drive. Unfortunately, the dates of the drive were missing.

A highly regarded insurance company sends out e-mail messages with grammar and spelling mistakes. Minor matters? Perhaps. But it also fuels the way we perceive companies.

Saying it doesn’t make it so. Just as more customers are embracing selfcheckout at supermarkets, other operators are rejecting it. They maintain they want to interact with their customers, particularly in the checkout line. Really? Haven’t they noticed that many cashiers are texting, talking to other employees and yawning? Haven’t they noticed the way they handle the food? Bread and tomatoes stuffed in the bottom of a bag? Why not give customers a choice? All too often, righteous responses by companies are purely self-serving. In this case, it may be the technology cost that’s the issue, not “personal service.”

Getting customer-friendly communication right. Who doesn’t dial an 800 customer service number without trepidation, doubt and angst? Between pushing buttons, waiting for the call to be answered, then being transferred when someone does answer, repeating the problem and being told to call another number, what’s there to love? For many consumers, it’s more like “anti-service.” Such experiences establish terrible expectations and cause misery for

those taking the calls. It’s bad business, no matter how you cut it. Not surprising, Apple does it differently. Not only do customers have a choice of how they want to communicate with the company, but they can also set the date and time they want to be called, for example. This works because the calls start off with customers having a positive attitude.

Getting ahead of yourself can put you behind. Whether it’s announcing a new product, a major event or a new service, it’s dangerous to put cake on display before it’s baked. More often than not, it becomes a problem. The Chevrolet Volt is a good example. Several years of hype for a technological marvel led to extraordinarily high expectations from a company that, at the time, was on the ropes. Then came production delays, dismal sales figures, endless “battery fire” stories, the announcement that GM would buy back Volts, and, finally, GM’s president saying the engineers should lop off $10,000 in costs. What a negative PR scenario. This isn’t a story about technological failure. General Motors created the perception that the “old GM” was back doing things the wrong way. It’s another horrible example of getting up-to-speed before starting the car, a perfect prescription for fostering further doubt about the company.

Thinking outside the walls.

NEVER COMPROMISE CREDIBILITY. WISCONSIN INDEPENDENT AGENT

Thinking “outside the box” is an overrated and useless exercise since it rarely occurs except, perhaps, in someone’s fantasy. The real rub is failing to think outside the walls –– the company’s walls. Even though Polaroid brought the first digital camera to market, it couldn’t shake off seeing itself as an “instant film” company. That sealed its fate.

JUNE 2012

Now, Research in Motion flirts with a similar destiny as its market share dropped from about 50 percent at the end to 2009 to nine percent in the third quarter of 2011, according to Canalys, the Londonbased market research firm, as its attempts to overcome a “push” e-mail preoccupation failed. Getting it straight starts with getting yourself out from behind the company walls.

Blindsided by belief. It’s amazing how great companies make such foolish mistakes. In its CEO’s unrelenting drive for Bank of America be the biggest, it swallowed Countrywide Financial at the moment when it was overflowing with toxic home mortgages and continues to suffer the consequences. Then, there’s Netflix that based its success on the making its customers happy. That went well until it came up with a 60 percent price hike and separated its DVD and videostreaming businesses, only to see 800,000 customers disappear. Most dramatically, the famed Xerox research lab developed a blazing array of computer technologies in the 1970s –– the Alto personal computer, the Ethernet, laser printing and the graphical user interface –– but the company, blinded by its imaging process, dismisses them as too risky. It seems that Research in Motion heads down the same path. So absorbed with its push e-mail mindset, it missed the smartphone phenomenon and may never recover. How easy it is to trip when we’re blinded by our beliefs. Unless we pay attention to the dangers inherent in our fast> John Graham, a paced business marketing and sales environment that consultant and a are waiting to business writer, lives bring us down, it’s in Boston. He can be easy to trip at the contacted at (617) 774-9759 or johnrg31@ most unexpected me.com. moments.

JUNE 2012

BIG “I” TESTIFIES BEFORE CONGRESS ON NATIONAL FLOOD INSURANCE PROGRAM Association’s government affairs chair calls for a long-term extension and much needed reforms. On May 9, 2012, the Independent Insurance Agents & Brokers of America (IIABA) testified before the United State Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Economic Policy at a hearing titled, “The National Flood Insurance Program: The Need for Long-Term Reauthorization and Reform.” Jon Jensen, an independent agent from South Carolina and chairman of the IIABA government affairs committee, represented the association and was the only agent/ broker witness at the hearing. Jensen is president of Correll Insurance Group. In his testimony, Jensen outlined the reasons why the Big “I” believes Congress should modernize the program and shore up its finances to better protect consumers in the future. He also stressed that the marketplace, and the NFIP’s 5.6 million consumers, are increasingly frustrated with the nature of the short-term extensions granted to the program and that they deserve the stability granted by a long-term extension. This discussion was particularly timely given that the program is set to expire at the end of the month. Jensen said the program is “far from perfect, which was made all the more clear by the devastating 2005 hurricane season. The current $17.2 billion dollar debt, incurred in 2005, reveals some of the deficiencies of the program and has strained government resources. While IIABA is confident that the NFIP will recover, it is important that Congress shore up the NFIP’s financial foundation and use this opportunity to enact needed reforms

WISCONSIN INDEPENDENT AGENT

to ensure the long-term sustainability of the program.”

It is important that Congress shore up the NFIP’s financial foundation and use this opportunity to enact needed reforms to ensure the longterm sustainability of the program. Jensen also outlined why the Big "I" strongly supports S. 1940, the “Flood Insurance Reform and Modernization Act of 2011,” by Chairman Tim Johnson. The association also supports H.R. 1309, the “Flood Insurance Reform Act of 2011,” similar legislation which passed the House of Representatives with more than 400 votes last year. “We believe that while there are some differences between the Senate and House bills, these minor differences could be overcome by policymakers with a modest amount of effort,” said Jensen.

BIG “I” LEGISLATIVE CONFERENCE: EYE OPENING & VALUABLE EXPERIENCE Insurance agents provide an important service. We help everyday people protect the valuable items in their lives. These items may be material possessions or people themselves. However, as agents, we do not always protect ourselves.

A great contingent of IIA of Wisconsin members attended the Big “I” Legislative Conference & Convention from April 25-27 in Washington, D.C. The group was fortunate to meet personally with Sen. Ron Johnson (R-WI), Congressman Sean Duffy (R-Weston), and Congressman Paul Ryan. From left: Matt Banaszynski, IIAW Executive Vice President; IIAW President Mike Hierl (Hierl Insurance, Fond du Lac); Derek Wickhem (John Wickhem Agency, Janesville); Andy Spaeth (Ansay & Associates); Rep. Paul Ryan (R-Janesville); IIAW Board Chairwoman Linda Steiner (Johnson Insurance Services, Racine); Tom Helbach (Ansay & Associates); Mike Ansay (Ansay & Associates); and State National Director Skip Hansen (Diversified Insurance Services, Brookfield).

Luckily, I was given the opportunity to not only get a glimpse of those that help look out for our careers, but to also actively participate in its defense. This year’s National Legislative Conference and Convention, hosted by the Independent Insurance Agents & Brokers of America (IIABA), was definitely an eye opener. Agents and company representatives from all across the country, and even some from overseas, gathered on Capitol Hill to make sure our voice as an industry is heard. The conference had several sessions for agents to meet with legislators. At first, I believed these briefings were just to get us all on the same page as we discussed the importance of flood insurance or our concerns over the health care reforms. I quickly learned that there was a lot more depth to these briefings. The issues we were discussing with our legislators have a direct impact on our future as agents. Armed with this new knowledge and with specific examples of some of these

discrepancies provided by fellow agents, we began our climb to Capitol Hill. Our group from Wisconsin was able to meet with three legislators during our Capitol Hill visits.

meet many interesting people from across the country and gain valuable networking opportunities unavailable to those who were not in attendance.

Meeting with these legislators was a welcome moment of connection. The legislators were extremely busy but they took the time to sit and meet with us. We were able to discuss the issues that are important to independent agents and our customers. Those legislators who had questions about what we were explaining had staff take thorough notes so that they could investigate these topics in greater detail. I was truly thankful for their time and for their effort in understanding our concerns.

I would highly recommend all independent agents, especially young agents, to participate in an IIABA national event. My experience with the IIABA has helped me not only gain valuable insight into the insurance industry, but also network with leaders in our industry from across the country. There is no better time > Derek Wickhem is than now to help a personal lines agent protect our future as at the John Wickhem independent agents, Agency in Janesville, and the chairman and I strongly urge everyone to become of the IIAW Young Agents Committee. more involved, both Contact Derek at at the state and derek.wickhem@ national level. wickheminsurance.com.

Overall, this conference was one of the most informative and helpful conferences I have ever attended in my time as an independent insurance agent. Over one thousand people attended this conference and it was a vast sea of resources, especially for a young agent. I was able to

WISCONSIN INDEPENDENT AGENT

JUNE 2012

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NEWS FROM ACT

THE REALITY OF TEXTING FOR INSURANCE AGENCIES

During every meeting I have attended in the last few months, there have been questions and discussions on should an agency allow texting by its clients and staff and if so, how do we control errors & omissions (E&O) and documentation in our agency management system?

Empowered clients are going to communicate with agents in the manner most convenient to them, so the real issue becomes how is the agency going to manage texting if the client prefers to use it? In this article, I discuss several concerns agencies have with texting, current “best practices” for managing these communications, and the technology options

personal phone, a number of issues come to my mind:  What if your staff member is on vacation where their phone is not functioning or they are just too busy to take care of the issue?  What if your staff member is ill and not able to pay attention to incoming messages on a real-time basis?

any texting. Others don't see any way to stop people from texting but don't know what to do with it and how to set parameters. A number of people commented that it was seamless to attach an e-mail, voicemail or other documentation in their agency management system, but not texts. Since it is difficult to manage the capture of the text information, they want to ban receiving texts. We need to remember that capturing e-mail information in an agency management system was not always easy. Once upon a time we copied the e-mails and pasted them into an activity or note since we couldn't attach anything to our agency management systems. Through communication with the various agency management vendors from their user groups, the vendors enhanced their systems to handle e-mail attachments. From this grew the ability to easily attach various other attachments and we hope vendors will create streamlined workflows for capturing texts as well, possibly as a part of their mobile apps. The initial attachment functions were "clunky," but as time and technology have progressed, this function has become more streamlined. In today’s world, texting is a reality. It is not only your young clients that are engaging in this act. Texting eliminates telephone tag, and results in an almost instant response. This is what many of us are programmed to want.

CURRENT “BEST PRACTICES” I recommend you consider taking the following approach with regard to texting: for managing texts and importing them into your systems as I understand them. There may be other options and not everyone uses Microsoft Outlook. Your technology professional should be able to assist you with the details.

 What if the individual is actually no longer a staff member?

AGENCY CONCERNS

I have heard more than one agency principal flatly state that they weren't going to allow

If clients are texting staff members on their

 What if the individual says they will take care of the request and does, but doesn't document in the system and something is not correct?

WISCONSIN INDEPENDENT AGENT

1. Do you want to be relevant to your client base? If so, then you must embrace this technology. 2. Set standards and best practices. These really are no different than handling face-to-face conversations, phone calls, e-mails, etc. Your standard should be that all conversations with the client or with others about the client’s account are to be documented in the agency

JUNE 2012

management system or the system which you are using to collect client data. 3. Be proactive and determine how to best receive texts at the agency level and educate your staff and clients. 4. If your client and someone in your agency are friends, inevitably there will be a text on a person phone. Define, train and implement the process to get this moved to an agency level as quickly as possible. I don’t see that there is any more of an E&O exposure in receiving and responding to texts than there are in phone calls, e-mails or face-to-face conversations. The biggest issue I believe agencies have at this time is how to make this format work for them as seamlessly as possible.

FORWARDING TEXTS TO E-MAIL Here are some thoughts I have on this process that I have picked up from users who have already addressed this issue: 1. As soon as the initial text is received on a personal phone, forward it to your business e-mail address. Text a response back to the client from your business Outlook account. The client's text response will come back into the e-mail which will let you accumulate the stream of the conversation which can then be attached to the agency management system. 2. Some phones will allow you to capture an entire text conversation. In this case it could be acceptable that the conversation continue on that phone and then be captured and sent to the business e-mail address for attachment into the agency management system. This would be the best approach when the conversation is just a question and answer session. 3. It is important for everyone in the agency to learn how their specific phone works for text forwarding:  iPhone – iphonefaq.org/archives/97335. Another approach is to take a picture of your iPhone screen when the text is showing, by pressing the on/off button on the top of the phone simultaneously with the application change button on the bottom front of the phone. This approach creates an image of the entire text message and the picture can then be e-mailed to your Outlook account.  Android phones. Each manufacturer handles this in a different way and I find even some differences within a manufacturer between their phones. It is best to check the operating information for your specific phone for this function.

JUNE 2012

SENDING TEXTS FROM E-MAIL Microsoft Outlook can be used as a tool to manage text messaging with your client. There are several steps to setting up and implementing the use of Microsoft Outlook. However, like anything else that you do, if you invest the time to research, implement and train a process, the rewards will be great. The best place to start the research is on the Web at Microsoft’s Web site. Learn how to set up text messaging (SMS) in Outlook at : office. microsoft.com/en-us/outlook-help/send-andreceive-text-messages-sms-HA101823438. aspx#_Toc261416088 Microsoft has done a really good job here of explaining the options available for using Outlook and providing lots of screen shots.

IMPLEMENTING AN AGENCY TEXT ADDRESS I also recommend that the agency implement a way to receive text messages directly. I understand from my tech friends that many VoiP phone systems can have a number set up for receipt of text messages. I am also advised that this works differently with every system and that you will need to work with your phone system provider to get this set up and implemented. Once set up, someone in your agency will need to monitor this number during business hours so that the expected immediate response can be managed. If your agency does not have a VoiP system, another option available for receiving texts at a number that you control is to set up a Google Voice number at www.google.com/ voice. In the Settings section of your Google Voice account, you will find a place to show the e-mail address for text forwarding. When you receive these text messages, they should then be forwarded to the Outlook e-mail address of the individual in your agency who will be handling this client. Once the number is set up, you should promote it to your clients, so that those who want to communicate in this manner can do so. When agency employees receive text messages on their phones, they should let that individual also know there is a number that is attended during business hours and would get attention even when the employee is not available. Finally, some important points about texting to keep in mind: 1. If the client texted you, that is how they would like to communicate, so at least your initial response should be in a text.

WISCONSIN INDEPENDENT AGENT

In today’s world, texting is a reality. It is not only your young clients that are engaging in this act. Texting eliminates telephone tag, and results in an almost instant response. This is what many of us are programmed to want.

2. If the client texted you, they expect an immediate response as that is what the common expectation is with texting. 3. Your employees should know the agency’s procedures for documenting text messages in the agency’s system, just as they would other communications from clients and business partners.

> Patricia Alexander is a consultant, coach and mentor with many years of experience in retail agency and MGA settings. She may be reached at pat@patalexander.com. Alexander developed this article for ACT which is part of the Independent Insurance Agents & Brokers of America. ACT’s Web site is www.independentagent.com/act. This article reflects the views of the author and should not be construed as an official statement by ACT.

FROM THE ARCHIVES

GOVERNMENT AFFAIRS

LEGISLATIVE FLASHBACK: CELL PHONE BAN FOR TEEN DRIVERS AIMS TO REDUCE ACCIDENTS It’s over… the state’s historic recall elections are in the past.

On Oct. 29, 1969, IIA of Wisconsin President Richard L. Jeatran of Eau Claire (middle) presented a large $1,000 check to Bucky Badger and Elroy “Crazylegs” Hirsch, the UW’s athletic director. This was Elroy’s first year as AD. He served in this capacity until 1987. In addition to his duties with the Association, Richard was also the regional vice president and director of the National Surety Bond Producers. He was co-owner and president of Minton-Jeatran & Associates in Eau Claire.

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But if state residents are looking forward to a summer without political ads and get-outthe vote phone calls as well as mailboxes devoid of candidate fliers, they will have to wait until next year. The fall elections may seem like light years away, but in political time, they are right around the corner – and the intense aroundthe-clock campaigning won’t come to an end until the polls close on November 6. In an effort to secure the IIAW’s future legislative success, the Big “I” Government Affairs team will be highly engaged in Wisconsin’s legislative elections. While it’s important to look toward the future – both in politics and business – it’s also beneficial to occasionally look back and absorb past successes.

Recently Partners Mutual formed an affiliation with Penn National Insurance of Harrisburg, PA.

› Cell phone restrictions are part of graduating drivers licensing laws in 29 states, including Illinois and California:

I N S U R A N C E

20935 Swenson Drive!Waukesha, WI 53186!www.partnersmutual.com an affiliate of Penn National Insurance

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› A National Safety Council report found the risk of being in a car crash is at a lifetime high for teens, particularly in the first 6 to 12 months and 1,000 miles of driving.

› The NHTSA also found teens are more likely to use cell phones while driving than any other age group.

For more information about becoming a Partners Mutual Insurance Agent please contact Lyn Schumann at 262.432.3430 or Schumann.Lyn@PartnersMutual.com

› Distracted driving results in 2,600 deaths, 333,000 injuries and 1.5 million property damage claims annually, according to the Harvard Center for Risk Analysis.

› The National Highway Traffic and Safety Administration found that cell phone use is the most common teen driver distraction and significantly increases the risk of crashing.

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M U T U A L

driving while using a cell phone, except to report an emergency. The new law goes into effect on November 1 and creates a penalty of up to $40 for a first offense and up to $100 for each subsequent conviction. Similar proposals enacted in other states have proven to be effective in reducing the crash risk for new and inexperienced drivers. The results in other states and a collection of unnerving statistics led to the IIAW’s support for this legislation:

JUNE 2012 3/22/2012 9:02:27 AM

One such success enjoyed by the IIAW during the recently concluded legislative session was the passage of a bill to significantly enhance Wisconsin’s graduated drivers licensing law. The legislation, which was recently signed into law by Gov. Scott Walker, prohibits drivers operating under an instruction permit or a probationary license from

JUNE 2012

– Illinois has seen a 50 percent reduction in teen driving fatalities following the adoption of its cell phone ban in 2007. – California teen driver fatalities have declined 44 percent since the state enacted a cell phone ban on teen drivers – also in 2007.

WISCONSIN INDEPENDENT AGENT

The Big “I” worked closely with a broad coalition of stakeholders to help pass this important legislation, from law enforcement groups and health care organizations to insurance companies and children

Distracted driving results in 2,600 deaths, 333,000 injuries and 1.5 million property damage claims annually. advocates. Other organizations that supported the bill include the Wisconsin Insurance Alliance, Sentry Insurance, the Wisconsin Medical Society, and the Wisconsin Sheriff & Deputy Sheriff Association. The bill’s passage was important to both the IIAW, as well as the safety of Wisconsin teen drivers, but it was only one of many legislative victories in the 2011-12 session. As the summer and fall election season unfolds, the IIA of Wisconsin will take a closer look at other legislative accomplishments and what they mean for independent insurance agents. The findings will be published in Wisconsin Independent Agent. But rest assured, the Big “I” will also continue to look toward the future and will be > Tim Hoven is the extremely active founder of Hoven in the fall election Consulting in Madison, cycle – working to Wisconsin. Tim also ensure the IIAW is served in the Legislature from 1994 to 2002. well-positioned for Hoven Consulting is the legislative success Government Affairs team in 2013. for the IIA of Wisconsin.

Food for Thought

RELAX. !

WE’VE GOT YOUR BACK.

! File This Under “Fate, Tempting”

This Couldn’t Be True, Could It? A Charlotte lawyer purchased a box of costly cigars and insured them against flood, storm damage and, of all things, fire. Needless to say, his investment went up in (happily inhaled) smoke within a month, after which the lawyer filed a claim with his homeowners insurance company that he was owed compensation because “the cigars were lost in a series of small fires”. The insurer refused to pay, assuming (correctly) that the man had smoked the pack himself. A judge ruled, however, that since the insurer had never stated what was considered to be "unacceptable" fire the company did, in fact, owe him $15,000 to replace his property. The insurance company paid the claim, but they got their own back in the end. The lawyer was then arrested, sentenced to 24 months in jail and a $24,000 fine for 24 counts of arson and insurance fraud. Source: swapmeetdave.com

An Australian billionaire announced plans in April to build an “unsinkable” version of the Titanic, 100 years after the original sank after hitting an iceberg. Titanic II is expected to make its maiden voyage from England to North America, the old Titanic route, in late 2016. “It is going to be designed so it won’t sink,” mining and tourism tycoon Clive Palmer told reporters. “It will be designed as a modern ship with all the technology to ensure that doesn't happen.” The original Titanic, the largest liner in world when it was launched and dubbed “virtually unsinkable” at the time, sank after hitting an iceberg on April 15, 1912. Design work has started for the new Titanic; it will have the same dimensions as its old version with 840 rooms and nine decks. Source: reuters.com

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