March 2014 Wisconsin Independent Agent Magazine by Independent Insurance Agents of Wisconsin

wisconsin

INDEPENDENT AGENT MARCH 2014

RATE THE COMPANY R E S Y E U V L R T U S S

People who run a business know. The most valuable things

are also the hardest to get.

wisconsin

INDEPENDENT AGENT MARCH 2014 Eric Schwartz, Editor

Open Door Policy Participation Is The Key. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Marketing Minute Business Ideas That Drive The Right Results. . . . . . . . . . . . . . 6 On The Cover…

News From ACT Enhancing Claims Information & Efficiency. . . . . . . . . . . . . . . . 8

Last fall, the IIA of Wisconsin conducted

Commentary From Counsel Legislature Revamps Unemployment Compensation Law . . . 10

Survey. The purpose of the survey was

Focus On Content Got ZMOT? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Errors & Omissions A Rejection Form! A Rejection Form! My Kingdom For A Rejection Form! . . . . . . . . . . . . . . . . . . . . . . 16 Government Affairs Wisconsin OCI Updates-Agent Licensing. . . . . . . . . . . . . . . . . . 19 Virtual University What’s The Value Of Happiness?. . . . . . . . . . . . . . . . . . . . . . . . 23

its first biannual Rate The Company to get feedback and insight for our exclusive company carriers about the state of the agent/carrier relationship in Wisconsin. Well, the results are in and available as a new member service! Please see Open Door Policy on page 5 for more about the survey results and how to access the findings on iiaw.com.

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

Your customer’s business didn’t grow overnight. It came from years of hard work, confidence in what they could do, and making smart decisions. That’s why an insurance policy from West Bend makes sense. It protects these valuable and hard-earned businesses so your customers can focus on doing what they do best. And with West Bend, it’s backed by your knowledge and experience.

Executive Vice President - Matt Banaszynski 2013-2014 Executive Committee

2013-2014 Committee Chairs

President........................................................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443

Agency Operations........................................ Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406

President-elect............................................ John Wickhem P.O. Box 1500, Janesville, WI 53547-1500

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

Secretary-Treasurer.......................................... Steve Leitch P.O. Box 85, River Falls, WI 54022

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

Chairman of the Board...................................... Mike Froh P.O. Box 1320, Sheboygan, WI 53082-1320

Finance & Compensation............................... Steve Leitch P.O. Box 85, River Falls, WI 54022

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

Government Affairs........................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

2013-2014 Board of Directors

Industry Relations.............................................. Tom Sitter P.O. Box 2424, Oshkosh, WI 54903-2424

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202

West Bend. Insurance your customers buy when they can’t afford anything less.

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 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902 Jeff Rasmussen 525 Junction Road, Madison, WI 53717 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

WISCONSIN INDEPENDENT AGENT

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............................................. Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504

> OUR ADVERTISERS AAA................................................................. 30 ACUITY Insurance............................................. 31 Applied Underwriters.........................Back Cover Badger Mutual................................................. 20 Burns & Wilcox..................................................11 Capital Remediation........................................ 27 Erickson-Larsen, Inc.......................................... 9 Guard Insurance.............................................. 22 IIAW Continuing Education.............................. 29 JM Wilson......................................................... 17 Northern Underwriting Managers....................18 Pekin Insurance............................................... 27 Robertson Ryan............................................... 13 SECURA Insurance............................................ 14 Society Insurance............................................ 12 Swiss Re E&O.................................................... 21 The IMT Group................................................. 26 West Bend......................................................... 2 Western National Insurance.............................. 4 Wilson Mutual.................................................. 20 MARCH 2014 | 3

OPEN DOOR POLICY

PARTICIPATION IS THE KEY Day on the Hill A successful event requires great participation and our Day on the Hill was no exception to this. Thank you to the 80 agents and members who attended the biannual legislative meetings at the Capitol and the full program of speakers at the Concourse Hotel on February 12. I know you have busy schedules

“How many of us grew up with the dream of someday being dependent on the government? I certainly did not,” the governor said in his remarks. “The idea just seems foreign to the American Dream. Sadly, there are some in our nation’s Capitol who measure success in government by how many are dependent on the government.”

The survey is a vital part of the IIAW’s relationship building efforts with our companies and demonstrates the importance the Association places on agent/carrier relations. Survey results can help agents see how their carriers performed versus their peers and can help them evaluate carriers before taking on new contracts.

I want to personally thank Gov. Walker and our other distinguished speakers, OCI Commissioner Ted Nickel, Rep. John Nygren, Sen. Alberta Darling, Wes Bissett, IIABA’s Government Affairs Senior Counsel, and all legislators and staff who took the time to meet with our members.

(It should be noted that no one at the IIAW or the insurance companies had access to individual surveys. Industry Insights, an independent research company, received the surveys and tallied all the responses.)

The legislative relationships that we build today will pay At the successful 2014 Day on the Hill. From left: Lynda Patterson, NAIFA Executive Director; dividends in the Dave Dunker, IIAW President; Gov. Scott Walker; Mike Immel, NAIFA President; and Matt future to ensure Banaszynski, IIAW Executive VP. the strength and and your turnout underscores that you are stability of the IIAW and the independent leaders in your industry. Your time is valuable agency system. and I appreciate that you spent some of it with us in Madison. Rate The Company Survey Our first-ever Rate The Company Survey is Another round of thanks goes out to our complete and is available as a new member Day on the Hill partner, NAIFA-Wisconsin. service! Executive Director Lynda Patterson and her staff’s professionalism helped take the event Eighteen percent of our members responded to another level. to the confidential 2013 Insurance Company Satisfaction Survey last fall. That number may seem a little low but for a first survey A successful event requires great that is good participation. We are excited about the information that was collected and participation and our Day on the look forward to building on this in upcoming years. We are encouraged by this initial Hill was no exception to this. survey.

We can help with both. With friendly underwriters who listen, and a full complement of products to serve your small-to-mid-size commercial insurance needs (including enhanced BOP, surety, and packaged coverages), Western National is your one-stop shop for getting business done. The proof is in the partnership.

The entire event was memorable but the notable highlight was a visit from Gov. Scott Walker. His 40-minute speech and extemporaneous question-and-answer session had the audience nodding in agreement with what he had to say. WISCONSIN INDEPENDENT AGENT

Of course, the more respondents that we have in the future, the more accurate and comprehensive the surveys will be. That is something we will strive for as we move forward.

For our exclusive company carriers, they receive valuable insight into the agent/ carrier relationship in Wisconsin. The survey ratings illustrate how the companies performed in a variety of areas, including marketing, underwriting and compensation.

The survey is a vital part of the IIAW’s relationship building efforts with our companies and demonstrates the importance the Association places on agent/ carrier relations.

This feedback allows the companies to make better decisions. The surveys allow all parties involved to get an inside glimpse at how they are doing. To access the insurance company survey results, go to the IIAW homepage at www. iiaw.com, select Publications and then Rate The Company. You will need to sign in with your username and password as this is an exclusive benefit for our members. Please contact the IIAW with any questions, and thank you for your time and opinions.

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at matt@ iiaw.com.

MARCH 2014 | 5

MARKETING MINUTE

BUSINESS IDEAS THAT DRIVE THE RIGHT RESULTS Americans spend more than $12 billion a year on the nation’s most pervasive addiction. Like other compulsions, we can’t get enough to satisfy our longing. It’s self-help and the seemingly insatiable desire to be more successful. Every couple of weeks, there’s a new selfhelp book, video or seminar. Malcolm Gladwell’s latest addition to his shelf of self-help books is totally enticing — “David and Goliath: Underdogs, Misfits, and the Art of Battling Giants.” How can anyone resist the appeal of getting to the next rung on the job ladder, of making the numbers every quarter and of going from the bottom to the top? If self-help were so effective, then tens of millions more of us should be the most engaged and highly motivated people in the world, smashing every performance record where we work. That’s not the case, to say the least. The problem isn’t how we think or feel, but what we do. It’s the doing that makes the difference. Here are business ideas that get the right results: 1. Stop talking to ourselves. As individuals, it’s so easy for us to think we’re right. And it’s the same with companies, too. A recent cars.com TV commercial makes the point. When the “team” hears the new plan, everyone cheers — all except one guy, who says, “It’s a stupid plan.” In the next shot, he’s standing at the curb holding a box with his personal stuff. Many companies, like individuals, become so enamored with their

6 | MARCH 2014

own ideas (read brilliance) that they shut out other views. Amid the cheering, no one dares say, “That’s stupid.” Ideas, plans, initiatives, campaigns and just about everything else benefit from diverse input. 2. Never stop improving. While this Lowe’s tagline has a clear double meaning for that home improvement company, the words apply to all businesses and employees. Many get to a certain point — a plateau — and stop, as if they’ve gone far enough, while a few keep on improving. “From the time she was very young she aspired and achieved, and often did it by breaking down barriers,” said her son David of his mother, Myril Axelrod Bennett, a Young & Rubicam VP and a pioneer in advertising research. “Everything she did, she did to perfection, and she demanded that of herself,” as the Boston Globe report. And she was doing a weekly blog until just before her death at 93. A never-stop-improving attitude puts the focus on what matters: performance.

our community.” From start to finish, the focus was on the publication. More than a community service, the program came across like an “ad” for the newspaper. It takes enormous willpower, discipline and skill for companies to keep the spotlight on their customers.

to belong and the need for self-preservation. Businesses aren’t much different, always seeking opportunities to showcase themselves. The pull is irresistible, as compelling as that of Facebook. For example, a regional daily newspaper sent

Of all the lessons from the Obamacare website debacle, one towers above all others: never launch anything before it’s ready. subscribers a letter with a $50 or $100 voucher charities can use to “purchase” advertising. Ironically, the first half of the letter was devoted to talking about the newspaper. In fact, the headline started off this way: “We are proud to launch….” The final sentence thanked subscribers “for helping us support

3. Avoid corporate narcissism. Facebook’s phenomenal success is no surprise, as a recent Boston University study, “Why do people use Facebook?” points out. It meets two basic human needs: the need

4. Get good at connecting the dots. In spite of a major recession, high unemployment, and pervasive wage stagnation, we might think that few, if anyone, could be heard to say, “Hey, what do you expect? I’m doing what I was hired to do,” as if that were a

Those customers who never complain, keep coming back, pay promptly, and appear satisfied may also be off our radar screen. We take them for granted. remarkable accomplishment worthy of special recognition. Most people can describe what they do at work, but far too few can recognize opportunities, identify problems and come up with solutions that have a positive impact on the company. It’s the ability to connect the dots that separates average employees from those displaying superior performance. 5. Seek ownership opportunities. Workers

WISCONSIN INDEPENDENT AGENT

come in two varieties, those who see themselves as employees and those who act as owners. There are many of the former and too few of the latter. If there’s anything managers need and want from employees, it’s having them “take ownership,” taking charge of one’s job by controlling outcomes, meeting deadlines, overcoming hurdles and reaching goals. With the current “teamness” throughout the business world, we might expect that the ownership spirit would be thriving. Since that’s not the case, is it possible that “teamness” is either wishful thinking or window dressing — or both. Unless being a “team” member is wedded to ownership, it’s nothing more than another example of jargon. 6. Beware of “passive customer loyalty.” Those customers who never complain, keep coming back, pay promptly, and appear satisfied may also be off our radar screen. We take them for granted. Some have been around so long they’re invisible. We can call their behavior “passive customer loyalty.” It’s worth thinking about because it’s dangerous. These are the customers who quietly disappear. No one misses them until they’re gone, and then we say, “I wonder what happened?” “Active customer loyalty” is quite different. It results from constant cultivation, reinforcing how much we appreciate them, always looking for new ways to “refresh” their interest, feedback and loyalty. It’s worth the effort because losing customers

is costly. 7. Don’t get suckered into doing something dumb. Of all the lessons from the Obamacare website debacle, one towers above all others: never launch anything before it’s ready. A CNET eBulletin evaluated entrants in the blossoming smart watch category. Whether selling for $49.95 or $950, one word described them: clunky. It wasn’t the first time. Microsoft’s SPOT smart watch was said to be “a bulky and poor design,” when it appeared in 2004. Needless to say, it went missing rather quickly. It happens every time someone says, “We’ve got to get this out now or else.” Or else what? Or else we’ll look stupid, wrong, or embarrassed? Whether it’s a product, a plan, a project or anything else, getting it right is the only test that counts. In business as in life, it takes the right ideas to drive the right results.

> John Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales.” Contact him at johnrg31@me.com, 617.774.9759, or johnrgraham.com.

MARCH 2014 | 7

NEWS FROM ACT

ENHANCING .

CLAIMS INFORMATION & EFFICIENCY This article discusses technology tools that have been introduced to permit independent agents and brokers to serve their clients more promptly and effectively in claims situations. Claims download, real-time claim inquiry, real-time filing of First Notice of Loss (FNOL), real-time requests for loss runs, and Activity Notes all have great promise to make agency workflows more efficient. Some carriers have already introduced most of these new capabilities, but we need to see much broader usage. The agents will play the critical role in making this happen, but first they need to be convinced that these new technologies will materially improve their workflows. This article seeks to make that case.

Claims Download One of the most exciting new opportunities is for the automatic downloading of new claims and claims status information into agency management systems. An ACORD standard has been put in place for claims download, and several vendors and carriers have begun to implement the new capability. However, an agent might ask: “How exactly will claims download benefit me? I already have claim inquiry available via carrier websites or through my agency management system using real-time inquiry.” Or, the agent might say: “Why do I need download, when I already receive an e-mail or Activity Note into my agency management system that tells me there is a claim?” Real-time claim inquiry has been a great enhancement for agents and will continue to be so for up-to-the-minute information. But, it is only beneficial if the agent knows the claim has taken place! Further, real-time claim inquiry does not populate the agency management system’s database, and so the agent must enter the claims information into his or her system.

The goal is for all of the latest features of technology to work hand-in-hand to make the claims process as streamlined as possible.

Claims Download Critical in Disaster Situations The horrific storm seasons we have had in recent years provide an instructive example as to how claims download can help agencies. If an agent has had no power and has had clients reporting claims directly to the carrier, how does he or she know what claims have been filed? Once the agency finds out about the claims, who is going to enter the hundreds or thousands of claims into its agency management system? Who is going to update the status on each of the claims, as it is paid or closed? The agency’s employees are already working overtime under terrific stress, and they want the needed claims information to be handy in their system. They want to spend their limited time assisting their clients regarding the claim and demonstrating the value added that their agency provides to its clients. The last thing these employees want to spend hours upon hours doing is entering all of this claims information into their system.

Recommended Claims Workflow The question, then, is how do claims download, real-time claims inquiries and e-mail or Activity Notes work most efficiently together? Consider the following workflow: 1 > The claim is reported directly to the carrier by the client (FNOL reported by the agent is a different workflow and is addressed below.). 2 > An e-mail message or Activity Note is sent to the agency instantly notifying it of the loss. 3 > Overnight, the claims are processed via

including payments made, adjuster notes, and the closure of the file.

4 > A log is waiting for the agent in the morning, when he or she comes in to review what was attached (similar to policy download) and what went to suspense to be attached.

Real-Time Loss Runs

5 > The claim is now in the agency management system and is ready to be serviced. 6 > Claim inquiry can be used at this point to look at anything that has transpired during the current day, if necessary. An example would be that the adjuster had not been assigned when the claim was downloaded, and you need to get that information today. 7 > Any updates to the claim will download each night (or at given intervals during the day, if the carrier and vendor provide this feature). Again, this download information will populate a log for review. 8 > The agency is now in the position to run reports from the agency management system to track losses.

First Notice of Loss (FNOL) Claim Reporting Another very important technology for agencies is real-time FNOL claim reporting, where the agent can submit the claim to the carrier and instantly get back the claim number and adjuster for the claim. What a terrific service to be able to provide the client with this information on the spot! Even where the agent is using real-time FNOL, however, claims download still plays an important role, because it allows for the automatic updating of the status of the claim,

Requesting loss runs through the agency management system and receiving them back in Real Time from the carrier is another significant improvement for agents, providing clients with immediate service and saving considerable time for the agent.

Agents Play Key Role Whether we are talking about claims download or real-time claim inquiry, FNOL, loss runs, or Activity Notes, agents will play the critical role in making these improved workflows a reality within our industry. Agents should advocate for these improvements with their carriers, and then “walk the walk” by implementing them within their agencies when they are introduced by particular carriers. High agency usage will be the dominant factor in convincing additional carriers to leave the sidelines and join the game by implementing these new capabilities.

The Future As exciting as these new technologies are, the future will require the industry to take

Whether we are talking about claims download or real-time claim inquiry, FNOL, loss runs, or Activity Notes, agents will play the critical role in making these improved workflows a reality within our industry.

yet another step, and that is to permit the agency’s clients to access their claims information directly from the agency’s website. Claims download and real-time claims inquiry will provide the foundation for this enhanced consumer capability. Consider once again what this would mean to an agency devastated by a disaster, struggling to make or receive phone calls of any kind. What a godsend it would be if anxious clients could go to the agency’s website and learn that their claim has been received and is in processing, and receive the assigned adjuster’s contact information. Organizations like ACT will continue to work with carriers and vendors to make this future a reality. Most important today, agents, carriers, and vendors should continue to collaborate to harness the exciting technologies that are available to us now to significantly improve the overall customer experience and to make our distribution system more efficient and responsive.

> Donna LaGoy is a client partner of Applied Systems, Inc. and is Chair of the ACORD Claims Download Working Group. Reach her at dlagoy@ appliedsystems.com. She prepared this updated article for ACT, which is part of the IIABA. For more information about ACT, contact Ron Berg, ACT’s incoming Executive Director. He can be reached at ron.berg@iiaba.net. This article reflects the views of the author and should not be construed as an official statement by ACT.

Claims download allows for all of the claims to be:

E-mails or Activity Notes are also great “incremental” steps, but again, the agent has to enter the claim into the agency management system and update the information as the status of the claim changes.

a Automatically entered into the agency management system.

Note: Activity Notes today are typically downloaded after the close of the business day. In the future, it is hoped that carriers will deliver time sensitive Activity Notes multiple times a day to their agents’ IVANS mailboxes and agencies will pick up those messages several times a day as well.

a Closed when the carrier closes it.

8 | MARCH 2014

provide better service to their clients should a claim occur.

a batch process and downloaded into the agency management system.

a Updated as the status is changed.

Claims download would save the typical agency hundreds of hours per year, as well as enable agency employees to WISCONSIN INDEPENDENT AGENT

MARCH 2014 | 9

COMMENTARY FROM COUNSEL

WISCONSIN LEGISLATURE REVAMPS UNEMPLOYMENT COMPENSATION LAW Last session, as part of the 2013-2015 biennial budget bill, the Wisconsin Legislature revised Wisconsin’s unemployment compensation statutes. The changes are significant, primarily benefit employers, and took effect for unemployment compensation benefit determinations on January 5, 2014. Bad Behavior — More Tools For Employers

within the 120-day period before the date of the employee’s termination,” unless the employer has a policy stating otherwise in

indicates that the employee received the employer’s attendance policy. Furthermore, in attendance-based terminations, employers should follow their policies and document an employee’s failure to give notice or an explanation for absences/ tardiness if they plan to contest the employee’s application for unemployment benefits.

The most significant change made by the new unemployment compensation provisions was to redefine what behavior and actions will constitute disqualifying misconduct under unemployment compensation purposes. This standard has long been difficult for employers to meet when unemployment benefits are Quitting and Sitting contested. The new law creates The new law also eliminates a two-tier standard that will be eight of the eighteen quit used to disqualify applicants for exceptions that allow benefits. Beyond misconduct, employees to collect benefits an employee’s benefits may after they have resigned or quit be delayed or denied if the their employment. Further, the employee was terminated for unemployment compensation “substantial fault.” According to provisions now require the Wisconsin Department of that applicants for benefits Workforce Development (DWD), complete at least four work Last session, Wisconsin’s Legislature revised was to redefine what behavior and actions “an employee’s behavior may the state’s unemployment compensation will constitute disqualifying misconduct under searches each week to collect be substantial fault when the benefits. There are additional statutes. The most significant change made unemployment compensation purposes. employee violates a requirement provisions that limit benefits in of the employer but the violation does an employee manual (and of which the certain circumstances, increase consequences not rise to the level of misconduct.” These employee has acknowledged receipt with his for fraud, and provide additional requirements changes allow employers to challenge or her signature), or the more benefit claims made by terminated employee is excessively The new law also eliminates eight of the eighteen quit employees. tardy in violation of the employer’s policy; and exceptions that allow employees to collect benefits after Attendance Issues and “Misconduct” (2) the employee did they have resigned or quit their employment. In the past, it was very difficult for employers not provide his or her to contest collection of unemployment employer notice and benefits by former employees based on one or more valid reasons for the absenteeism for requalification for benefits following terminations for poor attendance. Wisconsin or tardiness. disqualification. law required that (1) employers establish a very specific attendance policy which defined As a result of these changes, an employer may The unemployment compensation system in absenteeism and tardiness, (2) employees be contest an employee’s application for benefits Wisconsin has long heavily favored employees if the employee was and their applications for benefits. These terminated for at least changes are a step The new law creates a two-tier standard that will be used two absences within toward balancing the to disqualify applicants for benefits. a 120-day period and rights of employers the employee failed to and employees in give notice and a valid common situations permitted at least five instances of absence reason for the absence, even if the employer involving benefit gray or tardiness before termination, and (3) does not have an attendance policy. To obtain areas, and all employers employers demonstrate that the employee was the benefit of these changes, employers should ensure they are aware of the policy. should revisit their attendance policies with providing themselves > Josh Johanningmeier their legal counsel to ensure they provide with maximum is the IIAW’s General The new law eliminates these requirements. maximum flexibility under the new law. protection and Counsel. Call the Legal Now, misconduct includes an employee who Employers should also ensure they have an flexibility under the Services Hotline at (877) is: (1) absent “on more than 2 occasions acknowledgement from the employee which new law. 236-1669.

10 | MARCH 2014

WISCONSIN INDEPENDENT AGENT

Your gateway to contractors markets.

CONTRACTORS SOLUTIONS

Placing insurance for different contractors can be a daunting project. At Burns & Wilcox, our network of domestic and international carriers opens doors to the broadest range of markets. Since time is of the essence, we deliver quotes and binders fast. When it comes to finding solutions for every stage of construction, contact the wholesale broker with the tools to make the hard-to-place easy – Burns & Wilcox. Milwaukee, Wisconsin | 262.347.0266 | toll free 800.544.5700 fax 262.347.0440 | milwaukee.burnsandwilcox.com Minneapolis, Minnesota | 612.564.1880 | toll free 800.328.1693 fax 612.564.1881 | minneapolis.burnsandwilcox.com WISCONSIN INDEPENDENT AGENT

GOT

Yet, in major corporations throughout the world, ZMOT is either the primary selling approach, or one of many selling philosophies completely embraced by sales management – except in insurance agencies. That will need to change in 2014. Here’s why. There is research by the bushelful that in the B2B environment, as many as 88% of buyers know more about you than you’ll ever know

FOCUS ON CONTENT In all my travels, during all my speeches, and with all the insurance companies I’ve consulted with, not once in the last 18 months has an insurance executive told me they were familiar with the term ZMOT.

be the Stimulus component; this is a TV commercial, a print ad, an email or direct mail piece. This was then followed by the First Moment of Truth (FMOT), which was a sort of familiarization with the product or service through a trip to the grocery store, a meeting with a sales representative or a discussion with a friend. Then came the Second Moment of Truth (SMOT) where a buyer might experience the product, and decide whether

> 83% of Americans do online research after seeing a TV commercial. > In 2010, there were 5.3 online sources consulted before a purchase decision; in 2011, it was 10.3 online sources consulted before a purchase decision. You are being looked at and evaluated without knowing it. And, by the looks of it, they’re also checking out your competitors. If it were me, I’d take a close look at your website, and then the websites of three other competitors and see if you stack up.

83% of Americans do online research after seeing a TV commercial.

about them, including the fact that you’ll they were interested or not. In the end, this probably never even know who they are. string of Truths could take days or weeks to That’s the Zero Moment of Truth. There is play out. But now, everything has changed Understanding the Zero Moment of Truth is further research that indicates that it’s very and independent insurance agencies need to vitally important to independent insurance possible that your website might not get you change, too. agencies. As we new business, but it’s almost a certainty that continue to progress it will lose you new business. That’s the Zero Today, there is still the Stimulus, but the to more refined and ()*234!,-#%./+!0++1234!5)-0+,6!#-!;#%/=!$#%!/20+!)99+66!,#!5)3$!5#-+!5)-0+,67! Moment of Truth. Studies have indicated Moment of Truth comes in one sequence better defined digital ,@+!)36;+-!26!A#.+-,6#3!A$)3 that in the service sector, of which insurance of events that is virtually instantaneous. selling efforts, to agencies fall, asBC!$#%!)6!#;3+-!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!,@+! many as 50% of prospective After the Stimulus, people turn right to making our websites visitors to your website never make it past your their smartphone (incidentally, this is one selling machines .##0<!,@+!)36;+-!26!A#.+-,6#3!A$)3 homepage before they bail. That’s the Zero of many reasons why your website better be rather than online BC!$#%!)6!#;3+-!;)3,!,#!6+//!$#%-!)4+39$<!,@+!)36;+-!26!A#.+-,6#3!A$)3 Moment of Truth. And, Millenials, the most designed in what we call Responsive Design; brochures, and misunderstood BC!$#%!;)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-234<!,@+!)36;+-!26! buyer segment in the insurance this doesn’t mean a mobile site, but a website as we learn the business, but the most important in regard that automatically adapts to any screen size), dynamics of lead > Thomas Marks is A#.+-,6#3!A$)3 to the future health of the industry, will look or their laptop, a tablet device, or a desktop nurturing through president and managing partner of TMA+Peritus. to your website as the second most deciding where your website is visited and reviews of a digital presence, Prior to starting the factor in their purchasing of insurance – after your company are searched for. we’ll become more agency in 1983, Tom their family and friends. That’s the Zero successful at attracting was the VP of marketing ! Moment of Truth. If you don’t believe it, believe this: audiences who are and advertising for Bally Corporation in Chicago. D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQ completely changing He was also president In the olden days, around the turn of > Over 70% of Americans look at product the landscape of how of Bally’s multi-million the century, there were several paths in and company reviews before they decide to to do business. dollar in-house ad agency a purchasing decision. There will always purchase. FFC Advertising.

D2E!+<BF

Fine coverage instead of fine print. Small detail. Big difference. At Society, we keep it simple and protect your customer’s outdoor property the same way we do their building—

123!455!26!789!4G2H9?!/2G937:2>!/I4>!B:!789!4>:J93C

and that includes coverage for wind damage. In our experience, signage, fencing or satellite dishes are more likely !

to be damaged by wind than anything else. Ironically, some insurance companies don’t include this common risk in their outdoor property coverage. If you agree that details like these can make a big difference, give us a call at 888-5-SOCIETY or visit societyinsurance.com.

! "#!$#%&! '! '! '! '! '!

"#$%&'$%"!&#()*!+(%"&'#,"!*-.%!#,%!"$-/&!-,"0%/

()*+!,-#%./+!0++1234!5)-0+,67! 8)3,!,#!)99+66!5)3$!5#-+!5)-0+,67! :6!)3!)4+39$!#;3+-<!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!$#%-!.##07 8)3,!,#!6+//!$#%-!)4+39$7 8)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-2347

! !!!!!123!455!26!789:9!;<9:=2>:?!/#@%/&"#,!/A-,!B:!789!-,"0%/C !D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQL ://!9)//6!;2//!.+!0+1,!23!,@+!6,-29,+6,!9#3?=+39+L

ROBERTSON RYAN & ASSOCIATES, INC.

WHY INSURANCE AGENCIES NEED TO . CONTENT MARKET STARTING TODAY Ask any retail broker or agent and they’ll tell you that speed is the trump card when it comes to getting your risk submitted, quoted and bound by a surplus lines broker. There are a few things to keep in mind to ensure that you get your broker’s attention and make the process as smooth and fast as possible. Understand the Account History

Be ready to provide the surplus lines broker with the history of the account and why it is coming to the E&S market. The broker will want to know: a The carrier that currently writes it. a Whether the account is not being renewed and why. a Expiring premium amount.

Let’s make sure they’re safe at home.

Surplus lines submissions by nature are unique, so they require creative underwriting that will often mean additional questions. Deliver a Completed Submission It may sound simple, but a completed submission will get the process started properly. A fully completed Acord application should be submitted along with a supplemental application should it be required.

Covering all the bases since 1900 Commercial • Personal • Farm-Ag • Specialty 14 | MARCH 2014

WISCONSIN INDEPENDENT AGENT

Be sure to include important details like payroll and sales data. If you are requesting property coverage, your submission will need information related to construction type, fire protection class, the year the property was built, the property’s total area and any building updates. WISCONSIN INDEPENDENT AGENT

a Whether your standard markets have been exhausted.

a Five-year loss runs and a loss narrative that describes what occurred, repairs or restitutions that have been made and what the applicant has done to prevent a similar risk from occurring in the future. Given this information, the broker can typically let you know if you have a competitive account or whether it is a wheelspinner.

Manage Your Relationships and Be Respectful of Time Just as you manage your relationships with clients and underwriters, surplus lines brokers manage relationships with their clients (retail agents) and their underwriters. Insurance is a

relationship business, so it should come as no surprise that submissions coming from patient and professional retail agents are prioritized. In addition, it is helpful to provide the surplus lines agent with the specific timing for when the quote should be returned. A specific date illustrates expectations and allows for less follow-up discussions. Also, unlike the standard market, a surplus lines broker may not have binding authority, which therefore requires additional time to process and review your binding request. Please also keep in mind that unlike standard markets, surplus markets do not backdate. Surplus lines submissions by nature are unique, so they require creative underwriting that will often mean additional questions. After you’ve completed your fact-finding, limit your follow-up to one communication with all answers included. This saves time for both the retail agent and surplus lines broker in limiting multiple touches on the file and lessens the chance that a response will be missed. Remember that surplus lines brokers are experts in a variety of specialty insurance verticals. By building smart and strong relationships, your broker can provide outstanding counsel and help you better serve your clients in finding a home for your hard-to-place clients.

> Meggen Gagas is a commercial underwriter for Burns & Wilcox, the nation’s largest independent wholesale insurance broker and underwriting manager. She can be reached at 262.408.4147, or magagas@burnswilcox.com

MARCH 2014 | 15

ERRORS & OMISSIONS

A REJECTION FORM! A REJECTION FORM! MY KINGDOM FOR A REJECTION FORM! A CAUTIONARY TALE WITH APOLOGIES TO WILLIAM SHAKESPEARE In his play “Richard III”, William Shakespeare relates the tale of King Richard III in which Richard is unhorsed on the battle field at the most crucial moment. In a desperate attempt to save himself, he cries out: “A horse, a horse, my kingdom for a horse!” Unfortunately for Richard, no horse is delivered and Henry dispatches him, succeeds to the throne as Henry VII and marries Princess Elizabeth of the House of York. This very famous story highlights how one asset can be the most important factor in determining the success or failure of a person, especially when timing is critical. For Richard, it was his horse. For you as an insurance agent, while not as noble or glamorous, it can be the coverage rejection form. While certainly an agent won’t lose his life without this form, the financial impact can be devastating. And to the contrary, if such a form is obtained, not only may it save the day, it may also be financially rewarding if you are insured by Swiss Re Corporate Solutions. A case in point: in 2011, an agent was retained to procure personal auto liability and umbrella coverage on behalf of his customer. The policy had UIM limits of $250,000/ $500,000 aggregate and an accompanying umbrella policy had a $1MM limit. At that time, according to the agent, the customer signed a UM/UIM rejection form for the umbrella policy. Under this particular state law, an applicant must execute a signed UIM waiver form during the application process in order to waive UIM coverage under an umbrella policy. Additionally, the agency agreement with the insurance carrier expressly stipulated that the agency retain for the period

specified in the underwriting requirements, all original, signed applications, driver exclusions, selections and rejections of optional coverage, premium discount documents, vehicle inspection reports, and power of attorney. After the primary and umbrella policies were issued, the customer was involved in a serious accident that resulted in a significant brain injury. The claimant sought the full $1MM umbrella limit from the carrier. (Notably under the law of the state, if an insurer fails to pay a first party UIM claim within thirty days, it may be subject to the assessment of double damages). The carrier contacted the agency to determine if any such waiver existed and after a thorough search, none was found. The carrier was required to pay the $1MM limit of the umbrella policy and then tendered a $1MM policy limit indemnification demand against the agency. Due to the agency’s inability to locate the waiver and the language of the agency agreement, the claim was paid. There are two key points to remember from this tale: the first is to always read your agency agreements thoroughly and be fully aware of their terms. The explicit

There are two key points to remember from this tale: the first is to always read your agency agreements thoroughly and be fully aware of their terms. The second key point is to properly document and retain rejections of coverages. 16 | MARCH 2014

language of the agreement was that it was the agency’s duty to retain copies of certain documents and in particular to this case, the waiver of coverage form. Therefore, liability for indemnity to the carrier was absolute. Had the agency read and understood this provision, perhaps better care would have been taken to ensure that the document was retained. When you are presented with any written agreement that you must sign in order to be able to do business with a company, be sure to read the document thoroughly and, if you have questions concerning the provisions, consult with your own attorney to review and advise you of any provisions you may not understand. In many instances, some provisions may be negotiated if you or your attorney do not believe they properly state or protect your interests. The second key point is to properly document and retain rejections of coverages. Offers of higher limits can, and would have in this case, prevented a significant exposure in which a claim was later made as it related to the coverage limit. And, if you are insured > Richard F. Lund, under a policy JD, is a VP and senior issued by Swiss Re underwriter of Swiss Re/ Corporate Solutions/ Westport, underwriting Westport Insurance insurance agents errors and omissions coverage. Corporation, you He has also been an may reap a financial insurance agents benefit. Under the E&O claims counsel Deductible Reduction and has written and presented numerous feature of the E&O risk management/ policy, if an insured loss control seminars, agency generates mock trials and articles and maintains nationwide since 1992. WISCONSIN INDEPENDENT AGENT

contemporaneous written documentation of a customer’s refusal to accept any type of coverage or limit recommendation made by the agency, and there is subsequently a claim alleging a failure to secure such recommended type of coverage or limit, then 50% of the deductible relating to that claim will be waived up to a maximum of $12,500, or until dismissal of the allegations, whichever is first. For example, in the case above, if the agency had the signed waiver in its file, and an action was brought against the agency and costs were incurred, the agency would have been responsible for only 50% of their deductible. Had the deductible been $10,000 for example, the agency would have saved $5,000, perhaps enough to buy a horse! For more information about how to properly document your files, go to www.iiaba.net/eohappens and go to Prevention Tools. To learn more about the coverages that you should be offering to your customers, go to Prevention Tools and then Virtual Risk Consultant.

ENTHUSIASM IT’S CONTAGIOUS “I am passionate about underwriting Personal Lines. That enthusiasm gives me the ability to brighten a customer’s day and let the agent know that I really do care about the account they are sending me. They know I will get the job done for them.”

Calvin McNamara Personal Lines Manager

800.595.0063

jmwilson.com

Managing General Agency Since 1920 Property/Casualty • Professional Liability • Commercial Transportation • Surety • Personal Lines • Premium Finance

GOVERNMENT AFFAIRS

WISCONSIN OCI UPDATES.

AGENT LICENSING

This is an exciting time in Agent Licensing. We are finalizing the Request for Proposal evaluations to select our exam, prelicensing, and continuing education vendor. We received three proposals from well-qualified vendors. Our objective is to select a vendor who can offer cutting-edge technology to develop and administer our licensing exams as well as to improve our review and delivery of prelicensing and continuing education courses. The new contract will be awarded by mid-March for an effective date of July 1, 2014. OCI is also pleased with our new fingerprint vendor, FieldPrint. They have provided excellent customer service, reduced fingerprint rejections by 60% and added 40

of the license, verify appointment status, and review their transcript online. In March 2014, NIPR and Vertafore will be releasing our revised uniform applications which include changes to the background questions. On the national level, OCI continues to work with the National Association of Insurance Commissioner (NAIC), the

OCI continues to work with state legislators and interested parties in drafting Assembly Bill 660/Senate Bill 576, relating to the sale of limited line travel insurance. In addition, OCI is promulgating rules interpreting ch. 628, Wis. Stat., as amended, relating to the oversight and licensing of navigators and registering navigator entities and nonnavigator assisters.

Wisconsin Office of the

Commissioner of Insurance

convenient fingerprint locations throughout Wisconsin. Resident agents applying for a license or adding a new line of authority are required to submit their fingerprints and background check along with their application and fees.

Our primary goal is to ensure information is readily accessible to our agents and their staff so they can conduct their business. OCI continues to work with the National Insurance Producer Registry (NIPR) and Vertafore (formerly Sircon) to enhance our online services. Agents can now apply for 95% of licenses, submit address changes on NIPR, pay the renewal fee, print a copy WISCONSIN INDEPENDENT AGENT

Producer Licensing Task Force, and the Producer Licensing Working Group. We are monitoring current legislation including the National Association of Registered Agents and Brokers Reform Act. This legislation would amend the Gramm-LeachBliley Act to create NARAB, a nonprofit entity. The bill would create a 13-member governing board with eight state insurance commissioners and five insurance industry representatives. The legislation is modeled after the National Association of Securities Dealers (NASD) and will be a completely voluntary, selfregulating organization. Insurance agents will be able to apply for NARAB membership and become licensed to sell insurance in multiple states. The states would retain their full authority in regulating the business of insurance. The Senate passed the legislation as part of the Homeowner Flood Insurance Affordability Act of 2014. The bill now goes to the House. However, the overall bill faces significant opposition in the House due to the flood insurance provisions and it is unclear when and if the legislation will be enacted. The NAIC and OCI support this legislation.

Our agent population has increased about 5% over the last three years. As of February 2014, there were 126,149 licensed agents and more than 600,000 active appointments.

Our agent population has increased about 5% over the last three years. As of February 2014, there were 126,149 licensed agents and more than 600,000 active appointments. Our primary goal is to ensure information is readily accessible to our agents and their staff so they can conduct their business. Our website at oci. wi.gov is a great resource. You can always contact us at (608) 2668699, toll-free at (800) 236-8517, > Nitza Pfaff is an agent licensing supervisor with or by e-mail at the Wisconsin Office of ociagentlicensing@ the Commissioner of wisconsin.gov. Insurance.

MARCH 2014 | 19

IS BITCOIN THE NEW CURRENCY?

E&O HAPPENS ...  MAKE SURE YOU HAVE THE   BEST E&O COVERAGE

Move over cash, credit, and debit cards … there’s a new payment method available. It’s called Bitcoin — a virtual and digital version of cash that’s emerging as a global payment platform that can be used through smart phones, tablets, and other devices. Move over cash, credit, and debit cards … there’s a new payment method available. It’s called Bitcoin — a virtual and digital version of cash that’s emerging as a global payment platform that can be used through smart phones, tablets, and other devices. Bitcoin, which is a product of open source intelligence using peer-to-peer technology to operate with no central authority or banks, has the potential to change how millions of people around the world conduct their business. The first day Bitcoin launched, sales totaled $126,000.Even Amazon and Google are considering adding Bitcoin as a payment option. The Bank Security Act regulations in this case are intended to prevent transactions through anonymous accounts — think money laundering. However, the Bank Security Act does allow users of virtual currencies such as Bitcoin to buy and sell goods and services. Recently, officials within the United States Treasury and Justice Departments have now recognized the virtual currency as legitimate and financially viable. However, the U.S. government is not accepting Bitcoin for tax or other payments. What makes Bitcoin unique is that there’s a record as to who possesses it, and there’s a network that records transactions. Additionally, there is no way to increase the number of Bitcoins in existence, which is not the case like other currencies.

SWISS RE Is The Answer

Source: LinkedIn

“There is no other E&O policy on the market today that has the  extensive coverage our agency needs.”

‐  Skip Hansen, Diversified Insurance Services

Member Testimonials

PLACED PLACED

“I just switched my policy and received a great price with more  coverages. It was a no brainer.”

‐  Jerry Davis, Lakeland Insurance LLC

Switch to Swiss Re today and   protect yourself against the unexpected.

Receive an electronic quote today —  Go to our homepage at www.iiaw.com and click Fast Quote!   Visit www.iiaw.com to learn more or call 608.256.4429   20 | MARCH 2014

WISCONSIN INDEPENDENT AGENT

VIRTUAL UNIVERSITY Rated A+ (”Superior”) by A.M. Best Company

A Strong Company Just Got Stronger! GUARD is now part of Berkshire Hathaway – giving us an immense base upon which to grow. We feature the same products, services, and personalized attention that marked our first three decades of success as a specialist in writing small- to mid-sized Workers’ Compensation risks (under the name of GUARD Insurance Group) . . . but with one very important difference. We now have a new ultimate parent – Berkshire Hathaway – and BILLIONS of dollars of capital and invaluable expertise to support us.

New to Wisconsin! We are expanding and looking to appoint quality independent agents to grow with us in the state.

(Not yet a Berkshire Hathaway GUARD Agent but anxious to get started as soon as possible? Visit www.guard.com/apply.)

WHAT’S THE VALUE OF HAPPINESS?

A few years ago I was sitting on a plane bound for Chicago when I found myself in conversation with my seatmate. He was the CEO of a midsize company, so of course our conversation turned to business. He asked me why I was headed to Chicago and I explained I was off to give a speech to a group of CEOs. He asked me what my topic was. “Happiness,” I answered, explaining that my work was about helping companies understand and activate the link between employee happiness and customer happiness so that customers would come back, buy more and bring friends with money. The time flew by as we had a nice conversation about the importance of the customer experience and how it affected loyalty and buying behavior. Just before we got off the plane he said he wanted to leave me with “a little piece of advice.” He said, “Don’t use that word.” “What word?” “Happiness,” he replied. “CEOs don’t care about happiness; they care about bottom line results.”

results of years of studies now definitively link a happy thriving work culture to better business performance. Some notable findings: people are happier when they feel valued and appreciated, and when they feel that their work makes a difference - both in the overall success of the company and in the world. People are happiest when they’re given the opportunity to play to their strengths at work and use them to grow. They are happiest when they are appropriately challenged with stretch goals that take them into their “stretch zone,” but not into the “panic zone.” Science has proven that people blossom when challenged and wither when threatened. Isn’t it about time we “get it” - that fear as a motivator works only in the short term? In the long term, fear-based cultures wear people down and disengage them. Happy employees are more productive and perform better than unhappy ones over the long term. Period. Happiness as a business strategy has proven incredibly profitable for retailer ZAPPOS. CEO Tony Hsieh’s evolving business model combines three faces of happiness - pleasure, passion and Happy employees are more productive and perform purpose, as he explains it better than unhappy ones over the long term. and has created a culture of committed “Zapponians” I chuckled and smiled as he packed up to who come to work each day driven to “Deliver leave. “Well I’m off to teach them that when Happiness.” They’ve gotten so good at it that they start caring about happiness they will see they now teach other companies to do it! better bottom line results. It would be great if To get on board and create the kind of you could join us!” happiness in your business that engages I wish I could remember who he was - I employees and keeps customers, here are three would send him a copy of an article in Harvard things for you to do. I suggest you do them Business Review (HBR) titled, “The Value Of immediately: Happiness - How Employee Well Being Drives 1. Identify your core values. What values lie at Profits.” the “heart and soul” of your company? What HBR’s spotlight on the “Happiness Factor” fuels the culture? Are people connected to has five articles just on that topic. Two decades the values? What do you do to activate that of research from the fields of psychology, connection on a daily/weekly/monthly basis? neuroscience and economics have finally (We have a great report to help you uncover converged, giving us a broader and more those values: Making The Tangible Intangible) detailed picture than ever before about the 2. Identify your story. Stories build your brand. power of emotions - how feelings trigger specific What stories do you retell over and over? responses in the brain and impact what a person What memories do you create? What do your values. Wouldn’t you know, the collective customers remember and retell? What emotions WISCONSIN INDEPENDENT AGENT

do you evoke when customers do business with you? What important role do you play in their lives? Is it time to change your story? 3. Identify pockets of “Positive Deviance” that exist in your company. Every company has a department, a division or a group that seems to do things a little differently, a little better than the rest. Who’s doing great things in your culture? What group is most optimistic? Who’s the healthiest or the happiest? Take a look at what they are doing and figure out how to make their positivity contagious in other areas of the organization. No one fits the bill on the inside of the organization? Then look at who’s doing a great job in your industry, category, or neighborhood. Who is getting positive results? What can you learn from them and bring back to your organization? Take your values, your story and your potential and use them to change the conversation in your company. Nothing changes until the language and the conversation changes. I know my clients are starting to assimilate the knowledge I bring when I hear changes in their language and the topics of conversation. When I see the shift from problems to possibilities, I know I am getting somewhere. Happy companies are productive companies. There is a clear connection between how your employees feel about coming to work and how well they treat your customers. It’s a new year! Start asking yourself, “How can I create a company (or department, or > Since 1990, JoAnna division) that’s Brandi has been president of JoAnna great to work for Brandi & Company. She and great to do is a consultant, a public business with? speaker and author of How can I create two books on customer a culture that loyalty. Find out more at returnonhappiness.com. THRIVES?” The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent.com/ Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

MARCH 2014 | 23

S W E N E H T N I S R E B MEM Edmond Promoted To President & COO Of Frankenmuth Insurance Frederick A. Edmond, Jr., was promoted to president and COO of Frankenmuth Mutual Insurance Company and its subsidiaries, Ansur America Insurance Company, ASure Worldwide Insurance Company, Fortuity Insurance Company and Patriot Life Insurance Company, effective January 24, 2014. John S. Benson will continue to serve as chairman of the board and CEO. With fourteen years of prior insurance experience in claims, underwriting and marketing, Edmond joined the company in October 1998 as Marketing Group Coordinator. He was promoted to Group Coordinator and Sales Manager (Michigan) in November 2001, Sales Manager (Michigan-Wisconsin-Ohio) in April 2004, Vice President in October 2005 and Senior Vice President in July 2012. He was elected to the Board of Directors in April 2008. Edmond holds an Associate’s degree in Business Administration from Delta College and a Bachelor of Arts degree in Finance/Management from Western Michigan University. He also earned his Chartered Property Casualty Underwriter (CPCU) designation in 1992 and his Certified Insurance Counselor (CIC) designation in 2000. Edmond is a member of the Board of Directors of the Michigan Chamber of Commerce, a member of the Executive Committee of the Insurance Institute of Michigan, and he is a member and past president of the Northeastern Michigan Chapter of the Society of CPCU. Edmond is also active in the Frankenmuth community. He is a member of the Frankenmuth Morning Rotary Club and former Chairman of the Frankenmuth Chamber of Commerce Board of Directors. For more information about Frankenmuth Insurance, please visit www. fmins.com.

SECURA Honors 2013 Top-Performing Agencies SECURA Insurance announced its topperforming agencies for 2013. To earn this prestigious recognition, these independent agencies met specific criteria based on their premium volume, profitability, growth, retention, and loss history with the super-regional insurance carrier. The Charles L. Crane Agency Company, from St. Louis, Mo., and Indianhead Insurance Agency, Inc., from Eau Claire, Wis., were named the TopPerforming Agencies for 2013. Having represented SECURA for 20 years, this is the Crane Agency’s sixth time earning a top-performer award from the company. Tom Berra, Broker; and Mike Reedy, President; were on hand to accept the award at a ceremony in January at the company’s annual Premier Agent Professional Development Conference.

24 | MARCH 2014

Indianhead has partnered with the carrier for 37 years, and this is the agency’s eighth time winning a top-performer award. Toby Dutter, Owner; and Craig Jameson, COO; accepted the award at the conference. These independent agencies also received top-performing agency awards: • The McClone Agency, Inc., Menasha, Wis., is a four-time award recipient and has represented SECURA since 1976. • Schwarz Insurance Agency, Inc., Prairie du Sac, Wis., is a first-time award recipient and has represented SECURA since 1982. • Beth & Rudnicki Insurance Agency, Inc., Rockford, Ill., is a firsttime award recipient and has represented SECURA since 2000. • Continental Insurance Agency, Glenwood Springs, Colo., is a firsttime award recipient and has represented SECURA since 2008. In addition, the carrier recognized The Maguire Agency from St. Paul, Minn., as its Rookie of the Year. The agency has worked with the insurance company for 12 years. “I’m proud to celebrate the strength of our key agent partners,” said John Bykowski, SECURA’s CEO. “Each of these agencies has shown their dedication to our company, and I truly value their partnership, knowing it will lead to continued success in the future.”

Johnson Insurance To Launch Private Exchange For Employers In the spring of 2014, Johnson Insurance Services will launch a newly created private health insurance exchange called Johnson Insurance Marketplace. The private exchange is an online marketplace where employees can shop for health insurance, based on a defined contribution supplied by their employer. At this time, the private exchange is only available to a business and its employees. “Our clients asked us to provide them with an alternate benefits model with advantages for both the employers and their employees,” said Mark Behrens, President of Johnson Insurance. “With Johnson Insurance Marketplace, we’re giving employers additional insurance choices and easy-to-use decision-making tools that both the employer and the employee can appreciate and value. “Our private health insurance exchange allows employers to control the rising costs of health insurance by contributing a fixed amount,” explained Michael Derdzinski, Senior Vice President of Employee Benefits for Johnson Insurance. “The benefits process for employers will now be streamlined, giving employees additional options and the flexibility to make their own insurance decisions based on their individual needs.” Although negotiations to include products from additional carriers continue, five insurance carriers have joined and are participating in the marketplace exchange, including • United Healthcare • Humana • Common Ground Healthcare Cooperative • Network Health Plan • WPS Health Insurance/Arise Health Plans WISCONSIN INDEPENDENT AGENT

S W E N E H T N I S R E B MEM Working with Johnson Insurance, the employer selects an insurance carrier and sets a defined contribution per employee. The carrier then delivers approximately four to six insurance plan options that offer different tiers of coverage. Employees will then be able to compare plan benefits and costs and choose a benefit plan that is specific to them. The employer contribution remains tax deductible. In addition to health insurance, employees can put together a combination of coverage. They can decide whether they’d like to include dental, vision, life or disability as part of their individual insurance package. In some cases, the employer contribution may cover the additional insurance products. During the initial rollout, Johnson Insurance professionals will provide assistance to employees as they enter the marketplace. Employees shopping the Johnson Insurance Marketplace also have access to decision-making tools to help guide them through the registration and selection process. Initially, the rollout will concentrate on businesses in southeastern and northeastern Wisconsin and eventually other parts of the Johnson footprint in Wisconsin. For more information about Johnson Insurance, please visit www. johnsonins.com.

ACUITY Insurance Knuth & Jones Promoted ACUITY has promoted Marcus Knuth to Vice President - Enterprise Technology. Marcus began his career at ACUITY in May 1992 as a Management Trainee and became Unit Supervisor in Services later that year. Two years later, he was named Procedures Analyst, and he was promoted to Senior Procedures Analyst in 1996. In 1998, Marcus received the title Business Consultant, and he was subsequently promoted to Senior Business Consultant in 2001. The following year, he was named Director of Information Technology. In 2006, he was promoted to Area Manager Information Systems. Marcus earned bachelor’s degrees in computer science from Lakeland College and in finance from the University of WisconsinWhitewater. Susan Jones has been promoted to General Manager - Sales at ACUITY’s corporate headquarters. Susan began her career at ACUITY in 1989 as a Personal Lines Underwriter and left to join West Bend Mutual in 1993. She WISCONSIN INDEPENDENT AGENT

later joined SECURA where she served in various management capacities, heading up projects and supervising teams of people. She rejoined ACUITY in 2005 as the Territory Director for northeast Wisconsin and northern Michigan. A graduate of the University of Wisconsin-Whitewater with a bachelor of arts in communications with an emphasis in public relations, Susan completed her master’s degree in business from Silver Lake College. She has earned her certified insurance counselors (CIC) designation and is working toward her chartered property casualty underwriter (CPCU) designation.

Company Finished 2013 With 92.4 Combined Ratio ACUITY released its 2013 Financial Statement, which details the insurer’s profitability, strength, and stability. ACUITY’s financial results shattered company records in several areas and surpassed peer companies in the insurance industry’s most important measurements of performance. Highlighting ACUITY’s 2013 financial results is a 92.4 combined ratio, a 1.8-point improvement over 2013 and nearly 10 points better than the insurer’s competitors in the property/casualty industry. “Achieving an incredible 92.4 combined ratio shows that ACUITY is doing things right,” said Ben Salzmann, ACUITY President and CEO. “We are writing more business with independent agents, who recently named ACUITY the easiest company to do business with. We are also continuing to exercise underwriting and pricing discipline to achieve consistent profitability.” ACUITY’s Financial Statement showed other areas of continued strength as well. Assets under management increased by more than 12 percent to reach an all-time high of nearly $3.1 billion, and policyholders’ surplus increased by 14.5 percent to finish at nearly $1.3 billion, also an all-time record. 2013 marked the third straight year that ACUITY’s combined ratio finished below 100, and the company has averaged a 95.4 combined since 2000. Additionally, ACUITY maintained a leverage ratio under 1:1 for the fifth consecutive year, finishing 2013 with an incredibly strong 0.89:1. ACUITY also combined financial performance with sales growth that was balanced between personal and commercial lines. Companywide, ACUITY increased its written premium by 14.4 percent and has averaged double-digit annual sales growth since 2000. “ACUITY is positioned for continued growth and profitability,” Salzmann said. “We have the agents, staff, technology, and financial stability to sustain our momentum into 2014 and beyond.” For more information about ACUITY, please visit www.acuity.com.

MARCH 2014 | 25

WS E N E H T N I S R E B MEM Integrity Insurance Drew Winegar Named Auto Liability Claims Manager Integrity Insurance named Drew Winegar as the new auto liability claims manager. In this position, Winegar is responsible for supervising the auto liability claims representatives, managing day-to-day operations within the department and reinforcing the company’s strategic focus of delivering outstanding customer service. Winegar brings over nine years of claims experience to his new role, with a multi-line background in claims, holding positions as a claims associate, appraiser and most recently a material damage and bodily injury manager. “We are excited to have Drew join our team. His background in claims handling and management will complement our current efforts and enhance the service we provide,” said Christian Martin, vice president of claims for Integrity Insurance. Originally from Maquoketa, Iowa, Winegar earned his bachelor’s degree in Journalism and Mass Communication at the University of Iowa in Iowa City. He has also earned his Associate in Claims AIC designation.

The Water and Microbial Remediation Experts

Company Honored For Technology Achievement

Client Catastrophe: SEWAGE

The Association for Cooperative Operations Research and Development (ACORD) recognized Appleton-based Integrity Insurance with one of its top-level awards at its 2013 Implementation Forum.

“First Supply would like to commend you and your team on the outstanding service that you provided with the cleanup of our sewer break. I was very pleased by the urgency that you displayed when I called your company after normal business hours on a Friday night. Our business was not closed for even one hour, we were never left in the dark and had top notch communication as to what work was being performed at all times. Your team was nothing but a first-class operation from the time you took the phone call until the last truck exited our premises.

Integrity, among 14 carriers and vendors, received the 2013 Property & Casualty AL3 Download Award for its ACORD-certified AL3 download. This award is given to companies who have made significant accomplishments using the current electronic data interchange standards, and companies whose implementation of those standards have provided a solid history of success for the industry. “Integrity continues its commitment to providing our agency partners with the best experience possible, and a big part of that is offering time-saving download of processed policy information” said Integrity Insurance President Jill Wagner. “To be recognized from industry associations such as ACORD underscores how important our Ease of Doing Business® philosophy is to delivering a quality experience for our agency partners.” ACORD awards recognize companies for their achievements in implementing the association’s standards in categories such as compelling case studies, early adoption of standards implementation and technology, as well as download. For more information about Integrity Insurance, please visit www. integrityinsurance.com.

WATER U MOLD U SEWAGE U FIRE

24/7/365 EMERGENCY

608.210.1993

Capital Remediation will be my first and only choice in the future for First Supply or personal needs.” First Supply Dave Galland, Operations Manager-Madison Region

Call Deborah Mann, Commercial Consultant U 608.417.0611 6330 Copps Ave., Suite C, Monona, WI 53716 UÊÊcapitalremediation.com Delivering Total Project Accountability

BEYOND THE EXPECTED

Our coverage enhancements and endorsements go Beyond the expected.®

AUTO

• Roadside Rescue • Replacement Cost Coverage • Enhanced Coverage for Rental Cars • Pet Coverage • No Deductible on Glass Claims • Accidental Death Coverage • Tire Protection Coverage • Non-Standard Auto Program

HOME

• Identity Fraud Coverage with Resolution Service • Personal Injury • Pet Health Insurance • Equipment Breakdown Coverage • Earthquake Coverage • Water Back-Up of Sewers & Drains • Water & Sewer Line Breakage

BUSINESS

• Employment Practices Liability Insurance • Employee Benefit Liability Coverage • Equipment Breakdown Coverage • Water Back-Up of Sewers & Drains • Loss Control Services • Workers Compensation Claim Specialists • Employee Wage Expense Continuation

LIFE

• E-App for Most Life Products • Long Term Care Endorsement • Term Insurance Guaranteed Conversion Program • Access to Life Insurance Planning Specialists • Children’s Single Premium Term Plan

HEALTH

• Personal Customer Service • Extensive PPO & Transplant Facility Networks • Benefits Paid Faster than Industry Average • Wellness Coverage • Online Access to Claim Information • TPA Services

Offering some of the most innovative products available in the industry today, we strive to be the easiest company to do business with. Learn more. 2505 Court Street • Pekin, IL 61558 • 800-322-0160, Extension 2394 • www.pekininsurance.com

26 | MARCH 2014

WISCONSIN INDEPENDENT AGENT

MARCH 2014 | 27

#I NDEPENDENT #

2014 Trusted Choice ®

On February 12, the Independent Insurance Agents of Wisconsin (IIAW) and the National Association of Insurance and Financial Advisors – Wisconsin partnered to hold a Day on the Hill at the Concourse Hotel. About 175 participants listened to a great lineup of speakers including Gov. Scott Walker, OCI Commissioner Ted

Nickel, Sen. Alberta Darling, Rep. John Nygren, Wes Bissett, IIABA Govt. Affairs Senior Counsel, and Misha Lee, IIAW lobbyist. Later, participants met with their legislators and/or staff to discuss policies at the Capitol. Thank you to everyone who attended to make Day on the Hill a tremendous success!

Gov. Scott Walker spoke eloquently about his vision for Wisconsin and the country, which included less government and lower taxes.

I NSURANCE A GENTS OF W ISCONSIN !

'.#2%$3".#&7-33%3# !

/-.)*+:!8-+1(+#(>!"$#!,.'!C1>9#+1*'!@#$H'>>)$1+:! 1#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&'()&*+',& 7FIHCBFJ9&!"C4DE2& !BK@9&<=(+&-!&6&'*=(+&?!& /KL!B)>M!&+1+2'%'1-!N!&''-)12!,.'!?.+::'12'!LH!?.+12'! L#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&*F)&-B#43&*&"2C&-B#43&()&*+',& 7FIHCBFJ9&?57"GH55&I(J*FK)&-BB35:E2&I,J*K&"2C&?57"GH55&I,J(K& !BK@9&<=(+&-!&6&*=(+&?!& !

".7'.%#&7-33%3# !

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

Rep. John Nygren (R-Marinette) and Sen. Alberta Darling (R-River Hills), co-chairs of the powerful Joint Finance Committee, spoke about the state budget.

J$-!,$E)*!C1!@'#>$1+:!G)1'>! )#&%#&?@ABCD#-EE?FG@A! 6HC@9#!"#$%&'>)&*+',& 7FIHCBFJ9&-./0&123425&6&44"78"9528:;& !BK@9&'*=++&6&*=++&?!& /KL!B)>M!&+1+2'%'1-!N!&''-)12!,.'!! ?.+::'12'!LH!?.+12'! L#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&*+)&*+',# 7FIHCBFJ9#-./0&123425&6&44"78"9528:;& !BK@9&'+=++&-!&6&,=++&?!! "#$%!&'()*+)(!,$!-.'!/0*.+12'3!4.+-!/5'#6! 72'1-!8.$9:(!;1$<! 1#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&*@)&*+',& 7FIHCBFJ9&-./0&123425&6&44"78"9528:;& !BK@9&'*=++&6&(=++&?!& "#$%!&'()*+)(!,$!-.'!/0*.+12'3!4.+-!/5'#6! 72'1-!8.$9:(!;1$<! 1#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&*A)&*+',& 7FIHCBFJ9&-./0&123425&6&44"78"9528:;& !BK@9&<=(+&6&''=(+&-!& O+-+!@#)5+*6!C1>9#+1*'! )#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&*A)&*+',& 7FIHCBFJ9&-./0&123425&6&44"78"9528:;& !BK@9&>=++&6&''=++&-!& /KL!B)>M!&+1+2'%'1-!N!&''-)12!,.'!! ?.+::'12'!LH!?.+12'! L#&%#&?@ABCD#-EE?FG@A# 6HC@9#-B#43&')&*+',# 7FIHCBFJ9#-./0&123425&6&44"78"9528:;& !BK@9&<=++&-!&6&*=++&?!# !

Mike Walston (2nd from right), IIAW Smaller Agencies Committee Chair, meets with Sen. Frank Lasee (R-DePere) in the senator’s office.

! !

The Day on the Hill gave IIAW members the opportunity to meet with legislators from their districts to discuss legislation. Here,

"#$%!&'()*+)(!,$!-.'!/0*.+12'3!4.+-!/5'#6!! 72'1-!8.$9:(!;1$<! 1#&%#&?@ABCD#-EE?FG@A# 6HC@9#!"#$%&'>)&*+',& 7FIHCBFJ9&-./0&123425&6&44"78"9528:;& !BK@9&<=(+&6&''=(+&-!&

OCI Commissioner Ted Nickel addressing the crowd.

42&"8'.5#&".!'.4'.5#%64&-!'".#

Dave Dunker, IIAW President, Gov. Scott Walker, and Mike Ansay, IIAW Govt. Affairs Committee.

Trusted Choice

Wes Bissett, IIABA Government Affairs Senior Counsel, opened the Day on the Hill with a national perspective about the Association’s legislative initiatives.

28 | MARCH 2014

115

IIAW A

NNUAL

ONVENTION

MAY 7 & 8, 2014! M A D !I S O N M A R R I O T T W E S T

Approximately 175 Day on the Hill attendees listened to Gov. Walker and the event’s other speakers.

,"$#8"$%#'.,"$8-!'".#-.6#!"#$%5'3!%$## ,"$#!:%3%#&7-33%3<#27%-3%#5"#!"#''-=>&"8#

AT IIAW.COM

WISCONSIN INDEPENDENT AGENT

!"#$%&%'(%#)*+#",,#-./#)*01#'.#2%$3".#&".!'.4'.5#%64&-!'".#&7-33#%.!%$#2$"8"#&"6%9#!:-.;3#!

FOOD FOR THOUGHT STAR POWER Recently, astronomers found what appears to be one of the oldest known stars in the universe. The ancient star formed not long after the Big Bang 13.8 billion years ago, according to Australian National University scientists. The star (called SMSS J031300.362670839.3) is located 6,000 light-years from Earth and formed from the remains of a primordial star that was 60 times more massive than the sun. “This is the first time that we’ve been able to unambiguously say that we’ve found the chemical fingerprint of a first star,” lead scientist Stefan Keller, of the ANU Research School of Astronomy and Astrophysics, said in a statement. “This is one of the first steps in understanding what those first stars were like. What this star has enabled us to do is record the fingerprint of those first stars.” Source: livescience.com

IRONY, PARTY OF ONE He helped take a bite out of crime but now crime has taken a big bite out of him. McGruff the Crime Dog actor, John Morales, who dressed as the famous bloodhound known for taking a “bite out of crime,” has been sentenced to 16 years in prison. The sentencing on Feb. 3 followed a guilty plea, three years after police seized 1,000 marijuana plants, 27 weapons — including a grenade launcher, and 9,000 rounds of ammunition — from Mr. Morales’ home, CBS reported. McGruff the Crime Dog is a cartoon bloodhound that spreads crime awareness. Global advertising company Saatchi & Saatchi and the Ad Council created the detective pooch in the early 1980s for the National Crime Prevention Council.

PLACED

Source: The Washington Times

!""!#$%&'$() *&!+*,!"#$%&&&'(%)*+,"-.%"/%% 0$1*2*$1*$+%0$(3-4$5*%&6*$+(%% 4$1%7$8"9%:-*;*$1"3(%<*$*/#+(= !"###"$%&'(")*%+',*!"./01+*2*23+"4/002))2/'"1%/,%&0

IT’S A THIN GRAY LINE.

!"56*)*&'(2',"4/'*2',+'47"1%/,%&0 !"8''/3&*23+"4/9/1"&(3+%*2)2',"%+)/6%4+)

WHERE DO YOU

./0)1213)4/01)50167)0168/38)7/)699)/:0);/<10=:>)) ?0639)7/)@/:0)A38:063B1)B600A10)>A31C:;D)B/376B7E

STAND?

>*#1#%)#*$",%4+%?@ABACABC?DE% "-%FG$#*$",H&&&I#(5"$(#$=5";%+"149J

NEXT IN A NEW SERIES OF C E C R E D I T C O U R S E S E X C L U S I V E LY FOR ACUITY AGENTS!

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

For All That Matters

30 | MARCH 2014

WISCONSIN INDEPENDENT AGENT

W W W . A C U I T Y U . C O M

ACUITY

Trusted Choice

PRSRT STD US POSTAGE

Independent Insurance Agents of Wisconsin

PAID

MADISON WI PERMIT NO. 2506

725 JOHN NOLEN DRIVE MADISON, WI 53713 ADDRESS SERVICE REQUESTED

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide. For information call (877) 234-4450 or visit auw.com/us.