May 2015 WI Independent Agent Magazine

wisconsin

INDEPENDENT AGENT MAY 2015

PACKERS TAILGATE TOUR HELPS GRANT WISHES

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12

2015 SALES & LEADERSHIP CONFERENCE BROCHURE INSIDE!

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

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

Like light manufacturing.

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

wisconsin

INDEPENDENT AGENT MAY 2015 Eric Schwartz, Editor

Open Door Policy LGPIF Update and Worker’s Compensation Reform . . . . . . . . . . . . . . . . . .5 Government Affairs Lawmakers Introduce Small Business Fairness Act . . . . . . . . . . . . . . . . . .9 Packers Tailgate Tour Helps Wishes Come True . . . . . . . . . . . . . . . . . . 12 Technology Online Medicare Information Gets More Personal . . . . . . . . . . . . . . . . . . . 15 Professional Development Business Acumen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Public Service Diversified Awards SPARK Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Marketing Minute Why Your Insurance Agency Should Embrace Community-Based Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Virtual University Why Service Staff Shouldn’t Sell Insurance . . . . . . . . . . . . . . . . . . . . . . . 22 Opinion Worker’s Comp Proposal Represents Common Sense Reform . . . . . . . .23 Errors & Omissions An Unlikely E&O Foe? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Commentary From Counsel High Court Provides Guidance Regarding “Pollution Condition” . . . . . . .32 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2014-2015 Executive Committee President.................................................... John Wickhem P.O. Box 1500, Janesville, 53547-15 President-elect ................................................ Steve Leitch P.O. Box 85, River Falls, WI 54022 Secretary-Treasurer ....................................... Matt Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 Chairman of the Board ................................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443 State National Director ................................ Linda Steiner 555 Main Street #320, Racine, WI 53403 2014-2015 Board of Directors Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Mark Behrens 555 Main Street #320, Racine, WI 53403 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Mike Farrell 1300 S. Green Bay Rd., Racine, WI 53406 Chris Hanson 5601 Grande Market Drive, Appleton, WI 54913 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902 WISCONSIN INDEPENDENT AGENT

Jeff Rasmussen 525 Junction Road, Madison, WI 53717 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701

On The Cover…

The Packers Tailgate Tour rolled into Sheboygan last month and as you might expect, a huge crowd turned out to see current and former players tell stories and sign autographs. The Packers are certainly a draw and that’s great news. All the proceeds from the event benefitted MakeA-Wish Wisconsin and the charity’s wish granting efforts. This is the 3rd year that the IIAW has sponsored a wish child and once again the experience was fantastic.

Amelia is an 11-year-old whose wish is to go horseback riding in Alaska. With the great help of Make-A-Wish Wisconsin, Amelia and her family are going to Alaska this summer!

For the story and photos from the event, please turn to page 12.

> ADVERTISERS & INFORMATION AAA ................................................................ 34 ACUITY Insurance ........................................... 35 AmTrust North America ................................... 21 Applied Underwriters ........................Back Cover

2014-2015 Committee Chairs

Arlington/Roe ................................................. 17

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

Badger Mutual ................................................. 16

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

Burns & Wilcox ................................................ 14

Emerging Leaders ...................................... Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504 Employee Benefits............................................. Tim Bever 555 Main St. #320, Racine, WI 53403 Finance & Compensation ............................ Matt Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

DWD Fact Sheets .............................................. 6 Erickson-Larsen, Inc........................................ 19 Guard Insurance ............................................. 30 IIAW Continuing Education ............................. 25 JM Wilson ....................................................... 27 Pekin Insurance.............................................. 23

Industry Relations ....................................... Kevin Murray 525 Junction Road, Madison, WI 53717

Robertson Ryan.............................................. 24

Marketing & Membership Development ........... Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

SECURA Insurance ...........................................18

Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical ................................................... Mark Truyman P.O. Box 6 , Seymour, WI 54165

The IMT Group ................................................ 27 West Bend ........................................................ 2 Western National .............................................. 4 MAY 2015 | 3

4 | NOVEMBER 2014

WISCONSIN INDEPENDENT AGENT

OPEN DOOR POLICY

LGPIF UPDATE & WORKER’S COMPENSATION REFORM This month I have updates about two issues that are important to the IIAW: the dissolution of the Local Government Property Insurance Fund (LGPIF) and Governor Walker’s proposal to reform Wisconsin’s worker’s comp program.

Worker’s Comp Reform

Dissolution of the LGPIF

Wisconsin has one of the finest Worker’s Compensation systems in the nation and this known fact has directly benefited workers and employers for more than a century. But this should not preclude our elected officials and state government from looking at operational efficiencies so that we can have an even better system for our citizens.

For several months, I have observed with keen interest numerous public statements and dire predictions from various individuals and groups about Governor Walker’s proposed budget provision that transfers the regulatory and administrative functions of the Department of Workforce Development’s Worker’s Compensation (WC) Division to the Office of the Commissioner of Insurance (OCI) and Department of Administration’s Division of Hearings and Appeals (DHA).

One recently published column even went so far as to accuse the Walker administration’s plan of taking an “exceptional government program...tear it apart and start over...” A few other groups are falsely trying to portray the transfer proposal into an issue about a medical fee schedule.

Enough is enough with all the hyperbole and lack of facts being recklessly thrown around for the sake of self-interest and self-preservation. It is time for someone to finally stand up, cut through the noise, and call the Walker administration’s plan for what it really is – a simple, straightforward transfer of a governmental division to become more efficient and streamline services. It’s nothing more, nothing less and for those that are trying to make it out to be more than that, they are being disingenuous.

The Governor’s plan keeps intact the main values and primary mission of the Worker’s Compensation Act. His transfer plan maintains the same professional WC Division staff and does not fundamentally alter any of the Worker’s Compensation laws and regulations that have been in place since 1911. Also, Worker’s Compensation is an insurance program and it makes a great deal of sense for it to be under the purview of the state Insurance Department which already regulates certain aspects of worker’s compensation.

I find it hard to believe that our Governor, or any politician in Wisconsin for that matter, would want to commit themselves to the equivalent of political suicide and be credited with “tearing apart” or “dismantling” our Worker’s Compensation system.

Nowhere in the proposed budget language does it suggest that Wisconsin alter its core mission of providing a comprehensive WC system for workers and employers. I challenge the critics to specifically point out where in the budget language that the system is negatively being altered. When I read the plan, and as I participate in conversations with stakeholders about it, I believe the intent is quite the opposite. Governor Walker has proposed changes that are intended to take a well-functioning system and make it even better. More importantly, the Walker administration fully acknowledges the history and strength of our Worker’s Compensation system and their strong desire to maintain it.

I represent a statewide trade association representing thousands of independent insurance agents and brokers across the state, many of whom specialize in Worker’s Compensation insurance. My members counsel employers and work with insurance carriers every day to ensure that workers are protected when they get injured on the job and that they are able to return to work and continue to lead productive lives. My members have a direct, vested interest in making sure

As many of our members are aware, it has been a top priority of the IIAW Government Affairs team to advocate for the closure of the LGPIF. In summary, the governor proposed closing the LGPIF in his budget and the Legislature’s Joint Finance Committee recently voted to move ahead with this proposal. The measure is far from being passed but OCI has decided to take action. OCI’s Insurance Program Manager sent a letter to insureds in the LGPIF that details rate increases, gives timeframes and contact information.

The letter read in part, “AMI Risk Consultants conducted an in-depth analysis of the Fund’s current rate structure, and recommended that the Fund increase its overall rate by 45%, assuming the Fund would continue operations, or 85% should the Fund be dissolved. These rate increases are to the Fund in its entirety, individual policyholder rate changes will vary.

Considering the vote taken by the Joint Finance Committee, management has decided to proceed under the assumption the Fund will be dissolved. This rate increase will be effective July 1st, 2015… The Fund will be suspending its short term cancellation clause (SECTION VIII-CONDITIONS, B - Termination of Policy) for those insureds that renew from July 1st, 2015 to September 30th, 2015.”

IIAW members are strongly encouraged to engage their local units of government and work on taking advantage of the opportunity to write this new business.

WISCONSIN INDEPENDENT AGENT

that the integrity and strength of Wisconsin’s Worker’s Compensation system is preserved for many, many years to come. And we are confident that our elected leaders share this same goal.

So let’s stop with the false narrative, scare tactics, and call the budget proposal for what it truly is – a simple governmental transfer.

Nothing more, nothing less.

(Ed. note: For more information, please see the Reforming Government: Worker’s Compensation fact sheets on pages 6-8. For another perspective, see page 22 for the article written

by Secretary Reggie Newson of the Department of Workforce Development and Ted Nickel, Wisconsin’s Insurance Commissioner.)

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

Contact him at matt@ iiaw.com.

MAY 2015 | 5

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GOVERNMENT AFFAIRS

LAWMAKERS INTRODUCE SMALL BUSINESS FAIRNESS ACT State Representative Bob Kulp (R-Stratford) and State Senator Tom Tiffany (R-Hazelhurst) are to be commended for recently introducing the Small Business Fairness Act, which proposes to gradually eliminate Wisconsin’s personal property tax. I don’t need to tell you that the tax unfairly burdens small businesses, like independent agents, for the equipment and goods they need to operate to make a living.

The personal property tax amounts to double taxation on businesses that already have to pay sales taxes on equipment purchases. The tax is outdated, inefficient, and needlessly inhibits growth and economic expansion that Wisconsin so heavily relies on from its small business sector.

Back in 2014, I reported to you in my Wisconsin Independent Agent article that the state legislature was considering elimination or reforms to the current personal property tax system. The legislature set forth a nine-member steering committee to specifically gather information about and develop recommendations for possible reforms or repeal of the tax.

Since that time, the committee held three very informative public meetings with invited guest speakers and stakeholders and subsequently approved seven varying recommendations in the form of a summary committee report to all members of the legislature for consideration during the 2015-16 session.

personal property tax.

7. Develop alternative, less burdensome ways to collect delinquent personal property tax.

The Small Business Fairness Act proposes to end personal property tax compliance for all new equipment purchased in the year 2016 or later, but existing property would continue to be taxed until 2020. The legislature is

The following is a list of those recommendations for your interest: 1. Repeal the personal property tax.

2. Create an exemption from the personal property tax for a specified amount of personal property.

3. Create an exemption from the personal property tax for new personal property, which results in a gradual phase-out of the personal property tax.

4. Provide local governments with the option to: (1) create (or increase) an exemption from the personal property tax for a specified amount of personal property; or (2) create an exemption from the personal property for new personal property.

5. Extend the state reimbursement of the personal property tax for computers to other, or all, types of personal property.

6. Provide a tax credit to a payer of the WISCONSIN INDEPENDENT AGENT

waiting for a financial analysis on the proposal’s fiscal impact; the non-partisan Legislative Fiscal Bureau (LFB) is currently conducting this analysis.

Wisconsin’s personal property tax has become unfairly specialized towards some property and not others to the point where, in some instances, its application is nonsensical. For instance, equipment owned by youth baseball associations is exempt from the tax, but not equipment of youth soccer associations. There are currently a total of 57 exemptions to the personal property tax including items like charter sport fishing boats, cheese, and logging equipment. The Swiss cheese-like tax administration and all the exemptions put an extraordinary burden on small businesses.

Repealing the personal property tax does not directly impact state finances or the state’s General Fund account. Information presented during the steering committee process shows that the personal property tax

levy costs businesses approximately $270 million annually. These are funds directly collected and utilized by local governments and therefore this explains why Wisconsin municipalities have expressed such strong opposition to elimination of the tax.

The proposed legislation does not currently contain any mechanism that would provide aid to municipalities to make them whole for the loss in tax revenue that would occur. For all intensive purposes, this issue will need to be addressed in some way in order for the elimination plan to be able to move forward this session and become law. However, both supporters and opponents of the personal property tax agree that collection of the tax is a compliance and enforcement headache for everyone involved.

If there is way to gradually phase out the tax and hold local governments harmless on the lost revenue, there’s a good chance the legislature might pass a bill to end the personal property tax once and for all. A full and immediate repeal of the personal property tax may not be realistic in light of tight municipal budgets, but there appear to be strong headwinds in the legislature this session toward enacting some reforms to begin > Misha Lee is Owner/ the process of repealing Founder of Lee the personal property Government Relations, tax. That should come as LLC and lobbyist for IIAW. Follow Lee welcome news for IIAW Government Relations members. on Twitter @mishavlee.

MAY 2015 | 9

About Make-A-Wish®

The Four Wish Types

In 1980, 7-year-old leukemia patient Chris Greicius realized his dream of becoming a police officer when a group of caring volunteers swore him in as an honorary Arizona highway patrolman.

Wishes typically fall into four main categories:

Chris’ inspirational wish eventually led to the creation of Make-A-Wish®, the world’s largest wish-granting organization. There are currently 61 Make-A-Wish chapters in the United States and its territories, and 37 affiliates on five continents.

Make-A-Wish Wisconsin opened its doors in 1984, granting its first wish to Catina, who wished to meet Michael Jackson. Last year alone, we granted a record-breaking 356 wishes. Since its inception, more than 5,000 Wisconsin families can attest to the transformative power of a wish!

The Impact of a Wish Having a wish granted helps children feel stronger, more energetic and more willing and able to participate in their treatment. For many, it marks a turning point in the fight against their illnesses. The act of wish granting can strengthen both families and communities, creating a ripple effect of social value among everyone it touches.

According to a recent national study: 97% of wish kids saw improvements in their mental and emotional health 88.5% of doctors believe the wish positively influenced physical health 82% of wish parents saw an increased energy level in their children

I wish to go...

Whether it’s a sunny beach, a magical theme park or a visit with a favorite relative, travel wishes offer a family a stressfree experience no vacation can match.

I wish to be...

Stepping into the shoes of a police officer, astronaut, zookeeper or ballerina can fulfill a lifelong dream and instill a much-needed sense of hope for the future.

I wish to have...

Acquiring that special something—a computer, a bedroom makeover or even art lessons—can give a child a sense of control during a difficult time.

I wish to meet...

Coming face-to-face with a hero or celebrity can be one of the most powerful experiences a wish child can have.

Who Qualifies for a Wish?

A child qualifies to receive a wish if he or she: • Is between the ages of 2½ and 18 at time of referral, • Has not previously received another wish from any other wish-granting organization and • Is diagnosed with a progressive, degenerative or malignant medical condition that has placed his or her life in jeopardy, as determined by the treating physician.

This year alone, more than 500 children across Wisconsin will be diagnosed with a life-threatening medical condition that qualifies them for a wish. With help from a thriving community of donors, medical professionals and volunteers, we are ever closer to reaching the ultimate goal of granting the wish of every medically-qualified Wisconsin child.

Share the power of a wish® www.wisconsin.wish.org

Make-A-Wish® Wisconsin grants the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy.

Fiscal Integrity

Get Involved!

Make-A-Wish Wisconsin is a non-profit 501(c)(3) organization funded by donations from individuals, corporations, small businesses, foundations and community organizations. Companies and individuals also donate a variety of in-kind services and products that enable us to make wishes come true.

Helping grant a wish doesn’t just change the life of a child; it can have a profound impact on you, as well. Here are several ways you can start making a difference today.

As responsible stewards of the funds we raise, we strive to keep our administrative and fundraising costs to a minimum so a vast majority of every dollar goes directly towards wish granting. More than 80 cents of every dollar raised goes directly to granting wishes.

Refer a Child If you know a child who may qualify for a wish, please have his or her family call 800.236.WISH (9474) or begin the referral process online at wisconsin.wish.org/refer.

Become a Volunteer Become one of the more than 550 trained volunteers across Wisconsin who make a difference by helping us fulfill our mission. Learn how at wisconsin.wish.org/volunteer.

Make a Donation Whether it’s through a planned/estate gift, a workplace giving program or in honor or memory of a loved one, your gift will have a direct impact on a child in need. To learn more, please visit wisconsin.wish.org/ways-to-help/giving.

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Kids For Wish Kids® / Wishmakers On Campus® Your school, university, group or club can help grant wishes by creating and running your own fundraisers to benefit Make-A-Wish. Learn more at wisconsin.wish.org/k4wk.

4.4%

14.5% Fund Allocation 81.1% Wish Granting 14.5% Fundraising 4.4% Administration Our chapter was named a 2009 Torch Award winner for Business Ethics and Integrity by the Better Business Bureau of Wisconsin, and meets or exceeds every established BBB guideline. We have also received 4 stars from nonprofit watchdog Charity Navigator, the highest rating available.

Make-A-Wish Wisconsin works to ensure that every donated dollar is spent wisely, and efforts are made to maximize efficiency. We continue to find ways to do more with each dollar we receive and work to increase in-kind donations without compromising the quality of wishes we grant.

Wishes in Flight® Air Miles Donation Program More than 75% of our wishes involve air travel. Help make them come true by donating your unused airline miles from United, Delta or U.S. Airways. Once given, miles never expire. Donate today at wisconsin.wish.org/miles.

Wishful Thinking Newsletter / Wish-A-Week Stay up-to-date with the latest wish stories, news and volunteer opportunities by subscribing to our quarterly print newsletter or weekly e-newsletter. You can sign up for both online at wisconsin.wish.org/signup.

Connect on Social Media Facebook: facebook.com/wisconsinwish YouTube: youtube.com/makeawishwisconsin Flickr: flickr.com/makeawishwisconsin For more ways you can become more involved in our mission, please visit wisconsin.wish.org/ways-to-help.

Make-A-Wish® Wisconsin – Chapter Office 13195 W. Hampton Avenue, Butler, WI 53007 800.236.WISH (9474) info@wisconsin.wish.org

PACKERS TAILGATE TOUR HELPS WISHES COME TRUE

Wish Child Amelia Going on Alaskan Adventure Amelia, our wish kid, loves to ride horses and travel. Thanks to Make-A-Wish Wisconsin, Amelia and her family will get to do both. They are headed to Alaska to ride horses in Seward.

An event featuring the “The Gravedigger” doesn’t sound like a place you’d want to be but the perception is definitely not the reality in this case.

On April 18, Lombardi-era legends Jerry Kramer and Dave Robinson joined current players Micah Hyde, Andrew Quarless, Casey Hayward and team President Mark Murphy, and more recent heroes Bill Schroeder, Antonio Freeman and Gilbert “The Gravedigger” Brown for the final stop of the 10th Anniversary Packers Tailgate Tour.

Hosted at the beautiful Blue Harbor Resort in Sheboygan, all proceeds

unforgettable adventure!

The journey begins with a surprise limousine ride from home. The family will then fly to Anchorage and travel to Seward for an amazing visit to the Alaska SeaLife Center and to take in the glaciers on a fantastic Kenai Fjord tour.

Amelia’s wish will come true when she spends a day horseback riding in the majestic surroundings of Seward.

“Amelia and her family will return home with photos and powerful memories, giving them hope, strength and joy for years to come,” said Wendy Cozzens, Director of Development at Make-A-Wish Wisconsin.

from the event benefited Make-A-Wish Wisconsin. Tbe Independent Insurance Agents of Wisconsin were proud to sponsor the event that drew hundreds of fans.

“This is our third year sponsoring and partnering with Make-A-Wish,” said Matt Banaszynski, IIAW Executive VP. “It’s so rewarding and aweinspiring to be part of something that is so much bigger than us. The dedicated staff members at Make-A-Wish work miracles for the wish children.

The IIAW’s wish child this year is Amelia, an 11-year-old from Monroe, Wisconsin. Amelia’s cystic fibrosis has not stopped her from riding her bike with friends, riding horses, playing SIMS 3 Pets, and going on trips.

And going places is what her wish is all about.

This summer, Amelia and her family are headed to Alaska for an

“A wish experience brings families back together, giving children new energy and resolve and restoring normalcy to their lives. We thank the IIAW and all of our sponsors and volunteers for their heartfelt commitment to the Make-A-Wish mission.”

To donate to sponsor a specific child’s wish, please contact Wendy Cozzens at 262.781.4445. Please visit the Make-A-Wish Wisconsin website at wisconsin.wish.org.

Be sure to mark this event on your calendars: Walk for Wishes is September 20 in Fitchburg, Wisconsin. It’s a one- or two-mile walk, 5K run, wheelchair race, kids’ dash and family fun day to benefit wish kids in the greater Madison region. More details will follow in the coming weeks.

See more photos on Facebook at facebook.com/IIAofWI.

Sheboygan’s own Bill Schroeder and Katie Goswitz, the IIAW’s Executive Assistant and Education Coordinator.

The capacity crowd at the Packers Tailgate Tour.

Blue Harbor Resort on Lake Michigan hosted the Packers Tailgate Tour. Sheboygan was the final stop of the tour. The tour bus also made stops in Menomonie, (April 14), Prairie du Chien (April 15), Baraboo (April 16), and Elkhorn (April 17).

12 | MAY 2015

WISCONSIN INDEPENDENT AGENT

The staff of Make-A-Wish Wisconsin and the Independent Insurance Agents of Wisconsin.

In this photo, guess who hasn’t played professional football. From left: “The Gravedigger” Gilbert Brown, Samantha Jefferson, IIAW; and Jerry Kramer.

Antonio Freeman signs an autograph for a young fan.

Packer legends Dave Robinson and Jerry Kramer make their entrance into the Grand Ballroom.

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MAY 2015 | 13

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TECHNOLOGY

ONLINE MEDICARE INFORMATION GETS MORE PERSONAL My Medicare Matters - MyMedicareMatters.org – is a good resource. Share this information with your clients.

In 2011, the first baby boomers started turning 65 — what used to be a normal retirement age. And for the next 18 years, it’s estimated that 8,000 people per day will turn 65. Many of these new, retirement-age people are your clients.

“The redesigned MyMedicareMatters.org website is optimized to help consumers access the information most useful and important for them,” said Jay Greenberg, ScD, Chief Executive Officer of NCOA Services, LLC. “Most Medicare websites provide large

“Most Medicare websites provide large chunks of hard-to-understand information and leave the consumer on their own to figure out their options. MyMedicareMatters.org is…a personal experience from the homepage to enrollment.”

Even if you are not going to retire when you turn 65, there are important decisions to make regarding your continued health coverage that have to be made when you turn 65. If you neglect to enroll during the enrollment window, you could lose important benefits. Helping someone to better understand Medicare is a great way for every independent insurance agent to engage with his clients.

And thanks to MyMedicareMatters.org, the National Council on Aging’s Medicare education website, it has become easier to provide more personalized tools, information, and enrollment advice to anyone in search of Medicare information.

MyMedicareMatters.org has always offered this age group a trusted and friendly guide to help them evaluate their individual needs, compare their options, enroll in a plan, and sustain the best coverage. The unbiased information and assistance of MyMedicareMatters.org remains the same, but now the site has been updated to make it much easier to use.

WISCONSIN INDEPENDENT AGENT

chunks of hard-to-understand information and leave the consumer on their own to figure out their options. MyMedicareMatters. org is now a personal experience from the homepage to enrollment.”

The updated site includes these important consumer tools:

Visual Learning Rather than long blocks of information that are hard to digest, important topics are presented in a more visual form. Technical subjects are now easy to follow infographics.

Research has found that people are more comfortable when information is presented in a visual way and are more likely to share the information electronically with others.

Pick-Your-Situation Navigation Rather than guessing where to start accessing information, the homepage now offers easy routes to getting started. Consumers simply have to pick their stage in the Medicare journey and the site will point them in the direction of the most relevant information.

People Like Me This new tool is a story-based guide to Medicare. Characters from different life situations guide users along the decision journey by sharing their stories and discussing the steps they took choosing Medicare coverages.

What Matters Today Blog While the basics of Medicare remain the same, consumers need a place to turn to find out about the small changes. The new What Matters Today blog will provide information, reminders about upcoming Medicare changes, and will address the misinformation about Medicare that often accompanies discussed changes.

Enhanced MedicareQuickCheck (MQC) Utilizing visual learning techniques, the enhanced MQC can now dynamically guide users to a personalized report of their Medicare options, whether they are new to Medicare, eligible for a special enrollment period, or reviewing optimal coverage options during the annual enrollment period.

Resource Library A new collection of resources including videos, easy to understand infographics, a glossary of Medicare terms, and FAQ partly based on questions MyMedicareMatters has received from consumers.

MyMedicareMatters.org is available at no cost to the consumer — who only pays for the insurance they choose. Try the new, personalized My Medicare Matters experience with your clients.

Source: National Council on Aging

MAY 2015 | 15

PROFESSIONAL DEVELOPMENT

BUSINESS ACUMEN Business acumen is a key to success for high level assistants.

We are in an ever-evolving world where technology changes daily.

Business continues to follow new trends based on the marketplace. We need to understand the business environment in which we live in order to keep in line with best practices.

So what exactly is Business Acumen and how can it help the executive assistant reach his or her goal as an indispensable gatekeeper?

Business Acumen is defined as “the knowledge and understanding of financial, accounting, marketing and operational functions of an organization” according to SHRM’s Business Literacy Glossary. This basically is interpreted as the ability to have acute knowledge and judgment in all of the areas mentioned and the ability to carry it out successfully in the dayto-day business operations of a company.

We often look at these criteria as a leader’s role; however, if you take a hard look, the high level assistant can bring a good deal of skill, knowledge and expertise to the team. The key is to be able to hone and develop these skills to create a seamless workflow and gain the trust of the CEO. So, how does the executive assistant accomplish this? > As the go-to person, and asked to do insurmountable research online to obtain competitor information, the executive assistant broadens her knowledge base of companies and gains expertise in research. By providing valuable statistics and information, the CEO will begin to view what she does as a key asset for him and the company he leads.

> She needs to be well versed in the company’s operations. A good place to start is with the company’s vision and mission statement, company policies, the competition and its customers’ needs. This will lend itself to forming good judgment and making the right choice through analytical and strategic thinking. > Continued reading, following current trends and research will improve the assistant’s knowledge of the marketplace and how it impacts the company she works for. She will be at an advantage when it comes to sharing her knowledge and views by delivering clear, concise and accurate information. Sharing a different viewpoint can only add value to the decision-making. > Almost all high level assistants become involved in the company’s budgets, strategic planning meetings, and the operational side to some degree. She may be doing some of the legwork with number crunching, tracking for strategic planning purposes and reviewing critical documents passed onto her for editing and accuracy. Given most information at this level is highly confidential, she is expected to hold what she knows in the highest regard in order to protect the interests of the CEO, leadership, its employees and the company. > Problem solving is critical. There isn’t a CEO that needs the full-time position of solving problems and putting out fires when it can be handled by a high level professional that understands the power of diplomacy, empathy and making decisions based on all the facts. A high level assistant will evaluate and weigh all of the issues, look for solutions and bring it to her boss only when it goes beyond her authority. The key is to have some options to present that could lead to resolution of the issue. Having the assistant attend meetings can also be of value. She is able to document the meeting but also observe the dynamics and read the situation while leadership is doing their job in presenting and discussing the issues at hand. > You may ask why it is so important to stay abreast of the day-to-day operations, which in the past fell only into leadership’s role. Ultimately, the true gatekeeper not only gains critical insight, she is able to think quickly and act accordingly as the backup to the CEO and upper management. She is the face, eyes and ears, and voice of the company.

We have entered the new millennia where the high level assistant is expected to work more efficiently to free up the CEO’s time to do the job he was hired to do. This can only be achieved by forming a partnership between the CEO and his assistant.

Communication, Confidentiality and Competency are all key elements in the skills outlined in this article. Blending these qualities and partnering to create one voice will be the ultimate in having ‘ease of doing business’. To achieve this level is to be the ultimate gatekeeper and truly indispensable!

16 | MAY 2015

> Kathy Paulson is the founder of The Assistants’ Coach. She is leading a session at the 2015 IIAW Annual Convention.

Contact Kathy at kapaulson48@ gmail.com, and 608.220.6918.

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PUBLIC SERVICE

DIVERSIFIED AWARDS SIX $5000 SPARK GRANTS For the second consecutive year, Diversified Insurance Solutions is awarding six $5,000 SPARK DIVERSIFIED’S GIVEBACK grants to area nonprofits that take a creative and innovative approach to a local problem.

The company’s giveback program is interested in supporting specific initiatives, events or actions that address a community need and can be accomplished with a $5,000 grant or in conjunction with other funds.

Diversified Insurance Solution’s founder and Chairman, Jim McCormack says, “As a company, we’re extremely community minded so we wanted to celebrate our anniversary in a way that has an impact beyond our doors. We hope our program will spark change and positive results in the community. We’d also like it to have a ripple effect so other small and medium-sized businesses are encouraged to get involved in the community and give back in any way they can. We’re demonstrating that it doesn’t have to be a $1 million donation to make a difference.”

WISCONSIN INDEPENDENT AGENT

From left to right: Jim McCormack, Chairman of Diversified; David Stark Senior Vice President and SPARK Coordinator of Diversified; Paula Roberts, Director of Community Health at Children’s Hospital of Wisconsin Foundation; Brenna Holly, Director of Foundation Philanthropy at Children’s Hospital of Wisconsin Foundation; Brooke Mortag, Project Ujima Program Manager at the Children’s Hospital of Wisconsin Foundation; Christian Lie, CEO of Diversified.

MAY 2015 | 19

MARKETING MINUTE

WHY YOUR INSURANCE AGENCY SHOULD EMBRACE COMMUNITY-BASED MARKETING My agency, Alan Galvez Insurance, has fully embraced community-based marketing. So what is it you ask?

My Definition of Community-based Marketing Community-based marketing is the process of actively including your community in your marketing efforts. Examples can include cobranded campaigns with another business in your community or participation in another community member’s project or cause.

It’s important to note that everyone’s definition of “community” is slightly different. My community relates to geography and the area that surrounds my physical office location. So, community for me is within 10 miles of my office, which is pretty much the entire county.

Why Your Insurance Agency Should Embrace Community-Based Marketing We heavily tout that we are a communitybased agency and actively support many causes and organizations within our community. We live it. It seemed obvious that we should align our business activities with other organizations within our community. Here are some additional reasons why it should be high on your list of marketing activities: Magnification of your marketing efforts.

Think about that for a minute - the organization you align with has its own customer base, one you probably couldn’t have reached on your own. By partnering, you gain access to a whole new market.

Increased social proof. If an organization partners with you, that’s a heavy recommendation of your business…and vice versa. Whenever you recommend someone, you’re sticking your neck out. If they go

the business per se, but a value-added article from an expert in that particular business.

The benefits are countless - I get some help blogging, the business gets positive PR (much like the Quotes for Charity program), and our

south, so does your reputation. So, when two businesses align together, they’re endorsing each other and putting their reputations on the line. We all put great stock in reviews from others when making purchasing decisions.

Do you think community-based marketing activities carries the same weight?

“community” gets a valued-added resource from our agency, as well as the guest business.

I share the posts on Facebook as well. The comments and shares of the articles have been extraordinary, so I know people are visiting our website to read them. Chances are good they’ll stick around and read about our services and products too.

Positive PR. By demonstrating you want to contribute to a cause or organization, you also demonstrate you care. You’re more than just some faceless corporation. You’re real people helping real people in your community. What community doesn’t love this? It’s feel-good, heartwarming community service at its best.

Examples of Community-Based Marketing from My Own Agency Here are a few “in-the-trenches” examples of community-based marketing: “Quotes for Charity” campaign. The idea is simple. We chose a charity and for every auto quote completed, we donated $10 to the charity. The success of this project depends on both organizations. I educated each organization about what we were doing, distributed flyers, and asked for their help in promoting the event since they were going to directly benefit. I also created weekly Facebook reminder posts and tagged the organization so they could share with their audience. At the end of the promotion, I got a picture of me presenting the check to the head of the organization and shared that on Facebook. Nothing but good things can come from a campaign like this. We increased our quotes, sold more policies and created an enormous amount of goodwill.

Guest blog posts from local businesses. Each Saturday on our blog is a guest article from a local business. It’s not an advertisement for

20 | MAY 2015

Christmas Toy Drive. Every year, we sponsor two families through Lutheran Community Services. They provide Christmas baskets to families in need. Some of those families don’t have “sponsors,” so Lutheran provides the baskets from their own funds. I decided that we should hold a toy drive to collect toys for the baskets Lutheran puts together. I created and sent an email to our customers asking for contributions. I also ran some radio ads and several Facebook posts. The response was overwhelming. We ended up with six huge boxes of toys. When we delivered the toys to Lutheran, the looks on their faces were priceless. In fact, it moved me so much, I wrote a blog post about it. You bet I’m going to do this again.

Let me leave you with two additional reasons in case I haven’t convinced you yet: > It differentiates you from the 800 other insurance agencies in your town. > It adds an extra layer of value as you battle against the direct writers, 800 numbers and multiple other threats to the independent agency system (which I call hogwash by the way - especially if you > Carrie Reynolds is adopt a mentality like I’ve a full-time insurance agent and agency codescribed above).

owner at Alan Galvez Insurance. She wrote this I promised two, but here’s for growprogram.com, a website dedicated to a bonus third: it’s the building a community of right thing to do. agents and agencies.

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MAY 2015 | 21

VIRTUAL UNIVERSITY

THE HELPER PERSONALITY:

WHY SERVICE STAFF SHOULDN’T SELL INSURANCE One of the most common situations we encounter in agencies across the country is the struggle to hire, train and manage successful producers. Study after study confirms that only 1 out of every 7 people have the personality traits to become a successful salesperson, and we highly encourage and promote personality profile testing as a part of the hiring process.

What is surprising is our observation that, even in agencies that are highly selective in hiring their producers, the service staff is often called upon to handle incoming sales calls. And we find a high concentration of these practices specifically in Personal Lines departments.

One of the key differences between Producers and Service Staff is the nature of their personalities. While the Producer has that sales personality, assertive but not pushy, friendly but focused, reading the signals that the prospect gives to qualify or disqualify them as a potential customer, the Service staff is a helper personality, with intrinsic drivers to serve the customer’s needs and keep them happy, but not necessarily comfortable with the potential pressure or rejection of the sales function. When you find the hybrid personality of a CSR and a Producer, you likely have identified an Account Executive, someone who is comfortable and knowledgeable with the agency’s products and also comfortable enough to maintain the agency’s existing relationships, but likely not a true producer in that they would not excel at creating new relationships for the agency and they would find the rejection often associated with sales demoralizing.

With an understanding of some of the personality types within the agency, why would an agency want the person with a minimal expectation > For over four decades, of success to handle Al Diamond has been deeply involved in incoming sales calls? all facets of insurance When a customer calls agency and company the agency asking for operations including merger, acquisition additional coverage and divestiture, there is no selling perpetuation and involved. The customer strategic planning, organizational has a need, and the development, licensed and qualified and much more.

AEs and CSRs who can Contact him at al@ agencyconsulting.com. handle those needs

22 | MAY 2015

do so, even if it involves providing additional or new coverage. But that is significantly different from the responsibility of a producer to establish a relationship between the agency and a prospect, build the trust relationship and convert the prospect into a client for the agency. The Producer’s responsibility continues after the first coverage is sold as he or she analyzes all other forms of asset protection needs to identify and provide all other forms of coverage needed. This follow-up practice is the basis of our Asset Protection Model of Relationship Sales.

Without question, the responsibilities for establishing the relationship, closing the sale and performing the analysis of coverage needs exceeds the responsibilities of the CSR and also of many Account Execs. Like Service personnel, many producers have a helper personality, but they are differentiated by the competitive traits that many customer service people don’t have or need. Producer personalities have a drive to “close.” This means that they get special satisfaction from ‘the sale’ that service staff do not. Instead, the Service Staff in an agency are focused on the management of the client relationship with the agency, doing whatever the client needs in a proficient and efficient manner. And if they determine the relationship may be at risk, they alert the producer to address the issue and reinforce the relationship.

Further differentiating Service personnel from Production staff, CSRs often view prospects calling them as an interference with their normal routine, whereas Producers view prospects as an opportunity and will likely drop everything to try to form that initial relationship. CSRs view prospects as someone simply looking for a quote. Producers view prospects as someone with a need that we can fulfill if we can win them over and get them to trust us. As a result of these differences, closing rates are much higher for producers than for most service staff.

to cross-sell and up-sell existing customers, both in the same departments and cross departments – something that we all would like but for which the service staff rarely manages to find sufficient time to accomplish. Whether Personal Lines or Commercial Lines, it will always be more productive for an agency to have dedicated producers handling new customers and prospects than it would for service staff to try to sell the coverage. Producer staff is paid based on successful production while service staff is typically salaried or hourly and work the time required by the job. You will rarely see a producer stop a sales call or fail to call a prospect back just because the clock reads 5:00 PM. However, it is not unusual for sales related messages and follow-ups to become tomorrow’s work for service staff.

We recommend that every agency consider dedicated personal lines new business producers. That is an inside job that doesn’t require them to leave the agency often. But the role goes far beyond quoting on the phone.

Their job is to make friends with anyone calling the agency and convince the prospect that they can stop their search for the right policy at your agency by finding things in common with the agency and the producer.

The personal lines producer also searches for internal opportunities to write second, third and fourth policies as needed for the client.

In addition, they should also be introduced to every commercial client to write the personal lines policies for the business owners, and then for all of their employees. This provides a great opportunity for a commercial lines producer to introduce the personal lines producer to clients already in house.

And, of course, aim your Commercial Lines producers toward growing your book of business. When a producer stops growing the book by adding customers, they become an Account Executive. The AE is valuable in their own right, but no longer able to set and keep growth goals.

Having dedicated producers also permit them WISCONSIN INDEPENDENT AGENT

OPINION

WORKER’S COMPENSATION PROPOSAL REPRESENTS COMMON SENSE REFORM

Worker’s compensation reform has been on Governor Walker’s agenda for some time and it follows his consistent message to streamline and strengthen state government.

Secretary Reggie Newson of the Dept. of Workforce Development and Ted Nickel, Wisconsin’s Insurance Commissioner, recently wrote an op-ed piece about this issue. Their letter is below.

Governor Walker has proposed a biennial state budget that builds on policies that have helped turn our economy around, and it advances reforms to make government more efficient, effective and accountable to taxpayers.

To this end, we would like to take this opportunity to reaffirm the advantages behind the proposed transfer of functions currently performed by DWD’s Worker’s Compensation (WC) Division to the Office of the Commissioner of Insurance (OCI) and the Department of Administration’s Division of Hearings and Appeals (DHA).

Much has been said publicly about this budget provision, and some have questioned the logic behind this transfer.

The Division of Hearings and Appeals (DHA) already conducts hearings for more than a dozen state agencies, including hearings for our DWD’s Division of Vocational Rehabilitation and for OCI. Consolidating adjudicatory

functions of the Worker’s Compensation program in Hearings and Appeals will allow for cross-training to ensure coverage of cases, promote consistency and independence, and maximize the talents and experience of each administrative law judge. All proper communications between the Worker’s Compensation staff and the Administrative Law Judges will, of course, continue. Consolidation also will allow for the pursuit of efficiencies in case management, record production and storage, and IT investment.

Moving specific parts of WC to OCI makes policy and economic sense as well. In Wisconsin, Worker’s Compensation is an insurance program regulated by OCI, DWD, and the Wisconsin Compensation Rating Bureau. OCI also already manages three insurance funds - Local Government Property Insurance Fund (LGPIF), State Life Insurance Fund (SLIF), and the Injured Patient and Families Compensation Fund (IPFCF) along with processing thousands of customer complaints each year. Keeping insurance programs under the umbrella of one agency is a common-sense step to streamline and clarify government services. It provides employees, employers, and insurers a one-stop shop.

The governor’s budget proposal does more than streamline

service delivery and ensure injured workers can continue to move quickly through the Worker’s Compensation system. His proposal also helps DWD sharpen its focus on developing Wisconsin’s talent with nimble, demand-driven strategies that provide employers with the skilled workers they need to compete in the global economy.

Wisconsin has had a Worker’s Compensation program since 1911 and the program has experienced many changes over the past century. The governor’s budget proposal works to continue the strong tradition of a well-run Worker’s Compensation program, while at the same time recognizing that even strong government programs can be improved.

> Reggie Newson (left) is the Secretary of the Department of Workforce Development. Ted Nickel is Wisconsin’s Commissioner of Insurance.

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MAY 2015 | 23

ERRORS & OMISSIONS

AN UNLIKELY E&O FOE?

A decade ago, E&O claims involving carriers suing agents were rare. But E&O claims data from the Big ‘I’ Professional Liability Program’s endorsed carrier, Swiss Re Corporate Solutions, records a clear upward trend in the number of E&O claims carriers make against agents and brokers.

Recently, carriers seem to be much more aware of the deep pocket and backstop of the agents E&O policy. They find value in preserving customer relationships by paying their customer’s underlying claim and performing some “post-loss underwriting” by taking a stance against the agent.

What does this mean for you?

From an agency E&O risk management perspective, it’s more important than ever to understand carrier-related E&O exposures. These claims often stem from: Providing the carrier with inaccurate or incomplete information. An agent remarkets an account to a new carrier and uses the prior application to enter information in the new carrier’s underwriting system.

Since a few additional questions were not provided on the old application, the agent calls the insured and requests the additional information, including a question about prior losses. The insured said there were none, but when a new loss occurs, the carrier takes the position that a material misrepresentation occurred, arguing that had it known about the prior losses, it would not have insured the customer. The carrier pays the loss and files

suit against the agency to recoup its claim payment.

Exceeding binding authority. A carrier grants an agency binding authority for policies up to $250,000. When the agent binds

From an agency E&O risk management perspective, it’s more important than ever to understand carrier-related E&O exposures. a policy containing limits in excess of $250,000 and a large loss occurs, the carrier is likely to deny on the basis that the agent exceeded his or her authority — or will cross-claim against the agent, seeking indemnity.

Failing to adequately explain policy provisions. An agent obtains a policy for a customer’s newly acquired property that contains a 60-day vacancy clause. The new owner then fails to occupy the new property

for more than 60 days, and a water leak causes substantial damage to the building.

Both the customer and the carrier that denies coverage based on the vacancy clause argue that the agency failed to properly explain policy provisions.

Failing to comply with underwriting guidelines. An agent has binding authority with a carrier that insures boats, subject to the carrier’s underwriting guidelines, which restrict coverage to pleasure crafts under a specified horsepower and length. After a serious loss occurs, the carrier denies coverage because it determines that the boat in question slightly exceeds both limitations. If forced to pay the loss, the carrier will file suit against the agency for failing to comply with its guidelines.

Make sure your agency’s staff is aware of the potential E&O exposures with carriers and get your E&O carrier involved early if there is a possibility that a carrier will make a claim against the agency.

> David Hulcher is assistant vice president of agency professional liability risk management for Big I Advantage®.

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Plan your future with Robertson Ryan & Associates͘ LJ ũŽŝŶŝŶŐ ŽƵƌ ƚĞĂŵ ŝƚ ĂůůŽǁƐ LJŽƵ ƚŽ͗ ͻ ͻ ͻ ͻ ͻ

Keep your book Remain a trusted advisor to your clients to give them peace of mind ŽŶƟŶƵĞ ǁŽƌŬŝŶŐ ƵŶƟů LJŽƵ ĚĞĐŝĚĞ ƚŽ ƌĞƟƌĞ Find the right buyer for your book within Robertson Ryan to maximize your return Ğ ŝŶ ƚŚĞ ϯϬй ƚŚĂƚ ŚĂǀĞ Ă ƉůĂŶ

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WISCONSIN INDEPENDENT AGENT

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SECURA CELEBRATES 115 YEARS his name.

The claims paid in that first year totaled a mere $78 compared to $235 million in 2014, and the company now offers protection and peace of mind to more than 100,000 policyholders. Its first employees were hired in 1914: two office clerks who earned $5 per week, plus board. Now, there are more than 650 employees.

SECURA remains a mutual company that is owned entirely by its policyholders instead of stockholders and outside investors.

It also has remained dedicated to the independent agency model, relying on the strong relationships formed with agents and policyholders.

Dedication to the community is what the company was founded on and continues to be an integral part of its genuine culture.

Whether supporting youth development, education, environmental efforts, the arts, or providing food, clothing, shelter, and safety, it is committed to making the world a better place.

Current President and CEO Dave Gross serves as only the fifth leader in its 115year history, attesting to its strength and

dependability. “It’s still about helping our neighbors and being there for them when they need us,” says Gross. “That hasn’t changed. Caring for our policyholders and agents is not just a part of our history, but the fabric of all we do and who we Julius Bubolz founded SECURA Insurance in 1900. are today.”

As the company looks to the future, it is investing in product advancement and technology to reflect the ever-changing needs of customers. As a company in the service industry, it continues to invest in people – their greatest asset. It also continues to build financial security and stability even during challenging economic times. Recently, SECURA was recognized among Ward’s Top 50 property and casualty insurance companies nationwide and is consistently rated A (Excellent) with A.M. Best. Its financial strength supports the reason it exists: to meet financial obligations and pay claims.

To learn more about SECURA Insurance, please visit secura.net.

© 2015 SECURA Insurance

March 2015 marks the 115th anniversary of SECURA Insurance.

Julius Bubolz founded the company in the town of Cicero after a devastating windstorm struck a nearby community, killing more than 100 people and injuring 500 others. Property damage approached $800,000. In modern dollars, that would equate to nearly $23 million.

With 135 charter members, The Farmers Home Mutual Hail, Tornado and Cyclone Insurance Company of Seymour, Wisconsin was formed. Known today as SECURA Insurance, the home office now is located in nearby Appleton, Wisconsin.

What started in Julius Bubolz’s farmhouse has grown to become a super-regional property and casualty insurance company with coverages for businesses, homes and autos, farms, agribusinesses, and nonprofits in 12 states. His son, Gordon, would follow in his father’s footsteps to lead the company from 1939-1981. Gordon Bubolz also is recognized locally for his environmental efforts and a 775-acre nature preserve bearing

Covering all the bases since 1900 Business • Home • Auto • Farm-Ag • Nonprofit 26 | MAY 2015

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MAY 2015 | 27

WS E N E H T N I S R E B M ME Two Integrity Insurance Associates Receive Top Carrier Honors

SECURA Honors Retiring Senior Vice President - Claims Scott Huiras, Promotes Larry Wright

Scott Huiras

SECURA Insurance Senior Vice President– Claims, Scott Huiras, is retiring August 2015 after 38 years of service. The company is promoting Larry Wright to Vice President– Claims, effective April 27, 2015, to take over leadership of its claims division upon Huiras’ retirement. Huiras joined SECURA in 1976 as a graduate of Boston University School of Law and served in several roles. He most recently led Claims for 13 years and was a major contributor throughout his career to the company’s success and growth as a super-regional mutual insurance carrier.

“Scott’s greatest contribution to SECURA is how he took what some considered average claims service and elevated it to exceptional service,” said Dave Gross President and CEO. “He created a culture of caring, and focused on hiring knowledgeable people with a heart of compassion for those they serve.”

Larry Wright Huiras’ other roles at SECURA were as a Claims Attorney, Project Manager in IT, and Vice President–IT. Wright joined SECURA in 1997 as an analyst/programmer in the company’s IT division. Since that time, he welcomed numerous challenges and took on new roles, showcased by his transition from Director–IT to a Claims Representative, a Supervisor in Workers’ Compensation, a Litigation Coordinator in our Casualty Claims Department, and finally his most recent role where he returned to IT leadership to oversee software development projects.

“We conducted an extensive internal search to find the one person who brought the best combination of leadership, vision, and expertise – and Larry stood out,” said Gross. “His skills are only surpassed by his dedication to carry on the caring culture that Scott Huiras established among our team.”

In the coming months, Huiras and Wright will work closely to create a seamless transition.

To learn more about SECURA Insurance, please visit secura.net.

28 | MAY 2015

Minnesota-based Atlas Insurance Brokers honored two Integrity Insurance associates for their hard work and dedication in 2014.

Dawn Green

Personal Lines Underwriter Dawn Green was awarded the Personal Lines Underwriter of the Year Award and Territory Sales Manager Dorothy Metzger was the recipient of the Carrier Representative of the Year award. Green and Metzger received their awards at ceremony held at the Radisson Blu in Minneapolis.

Atlas Insurance Brokers President Vance Prigge stated, “Recipients of these awards are voted on by our agents, recognizing the service and partnership Atlas agents rely on in order to take care of our customers. We appreciate everything Dorothy Metzger Dorothy and Dawn do for our agents and congratulate this ‘Integrity Dream Team’ on this award.”

“Atlas Insurance Brokers has been an Integrity partner since 2006 and has grown to be one of our largest agencies in Minnesota,” said Integrity’s Field Sales Director Cathy Beaudin. “They have consistently grown with Integrity and were our #1 new business writer in Minnesota in 2014. Atlas Insurance is comprised of over 100 agents in more than 80 locations in Minnesota. To earn this type of recognition from an agency of this size is truly an honor.”

“The entire awards ceremony was special. The agents work with a lot of underwriters’ everyday and for them to pick me made me feel extremely special and honored!” stated Green. Metzger echoed those sentiments by sharing, “It was an honor to receive this recognition, and to be included in Atlas’s award banquet.

The Atlas Group is one of the finest agencies I have had the pleasure of working with throughout my insurance career.”

“This prestigious recognition confirms our commitment to optimize agency relations and sales support, a major component to realize our vision for the future,” stated Beaudin.

To learn more about Integrity Insurance, please visit integrityinsurance.com.

WISCONSIN INDEPENDENT AGENT

WS E N E H T N I S R E B MEM J.M Wilson Announces Promotions, Designations ACUITY Wins Workplace Video Contest For the second year in a row, ACUITY is the national winner of the “We Love Our Workplace” video contest (greatplacetowwork.com/2015-video-contest-enter) from Great Place to Work®. As the 2015 Grand Prize Winner, ACUITY earned $5,000 for the Homeless Veterans Initiative.

The music video features the song, “I Am ACUITY - Where I Belong,” and includes performances by more than 25 ACUITY staff members. Created in partnership with DuFour Advertising and LAUNCH Photography, Film, & Video and filmed at ACUITY’s corporate headquarters in Sheboygan, Wisconsin, the video highlights ACUITY’s unique workplace and cultural benefits that also earned the company recognition as the third-ranked employer on the 2015 FORTUNE “100 Best Companies to Work For®” list.

J.M. Wilson is pleased to announce the addition of Cheryl Shaw as Claims Specialist. Cheryl is responsible for reviewing and processing all incoming claims, which includes contacting the insurance company, working with adjusters and filing all necessary paperwork. Cheryl will act as a liaison between our carriers and agents to handle losses quickly from beginning to end.

With 29 years in the insurance industry, Cheryl has gained valuable experience. Prior to joining J.M. Wilson, she worked as a Casualty Auditor, Bodily Injury Adjuster, PIP Adjuster, Non-Injury Manager, PIP Manager, and a Field Property Claims Specialist.

Tammy Dodd

“It’s extremely gratifying to be chosen as the best video for the second consecutive year,” said Ben Salzmann, ACUITY President and CEO. “ACUITY is fortunate to have many talented staff members and outstanding professional design partners who were able to work on this project.”

“The idea to do a music video came from employees,” said Kallyn Vandenack, ACUITY Communications Specialist.

“With the help of many employees, a professional choreographer and songwriter, and an expert production team, we were able to create a fantastic representation of the ACUITY culture and earn $5,000 for a worthy cause.”

In the 2015 contest, entrants submitted a one-minute video that demonstrates why employees love their workplace. The winner was chosen based on the results of online voting and judging performed by Great Place to Work®. ACUITY was the top-ranked video in the public voting portion.

Cheryl Shaw

Jennifer Councell

Dawn Van Niman

The company also announced that Jayne Hongisto, Wisconsin Branch Manager, successfully earned the prestigious designation of Certified Insurance Counselor (CIC). To achieve this designation, Jayne attended five courses covering all phases of the insurance business and passed five Jayne Hongisto comprehensive examinations.

Additionally, The National Alliance requires annual attendance in the program to maintain the designation.

J.M. Wilson also reported that Tammy Dodd, IT Project Manager, has received an ACE Certification (Acord Certified Expert). Dodd is one of 202 individuals in the ACE Community and one of the first representatives from a Managing General Agency to receive this designation.

The company is also proud to announce the promotion of Dawn Van In addition to the one-minute winning entry, ACUITY created an extended version of the video. The full 2015 video and ACUITY’s top-rated 2014 entry, “ZOMBACUITY,” are both available at www.acuity.com/careers.

Niman who will be serving multiple roles as Accounting & Finance Associate, Agency Coordinator Assistant, and Human Resource Assistant.

Dawn will be responsible for accounts receivables, agency profiles and updates and employee benefits and payroll.

To learn more about ACUITY, please visit acuity.com.

CONTINUED ON PAGE 31

WISCONSIN INDEPENDENT AGENT

MAY 2015 | 29

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S W E N E H T N I S R E B MEM CONTINUED FROM PAGE 29

Dawn began with J.M. Wilson in 2007 as a Transportation Technician. Outside of J.M. Wilson, she also works as the Office Manager for her husband’s business, Van Niman Tree Service, LLC. The company also promoted Jennifer Councell to Fleet Transportation Underwriter. Specializing in 11-15 power unit accounts, Jennifer is responsible for quoting new and renewal business for independent insurance agents in 21 states.

Jennifer has been with J.M. Wilson since 2007, where she began as a Transportation Technician, before being promoted as Fleet Underwriting Assistant. Previously, Jennifer worked at Manpower for 12 years, seven of which she was the Branch Manager for two locations.

To learn more about J.M. Wilson, please visit jmwilson.com.

Philadelphia Partners with Arbor Day Foundation to Plant 80,000 Trees, Donates $25,000 for Nepal Earthquake Relief Philadelphia Insurance Companies is partnering with the Arbor Day Foundation to plant 80,000 trees and offset 2,200 metric tons of carbon in 2015. The PHLY 80k Trees initiative launching on Earth Day 2015 will support planting through two of the Foundation’s signature programs: Replanting Our Nation’s Forests and Community Tree Recovery.

To achieve the goal of planting 80,000 trees, PHLY is engaging its employees, independent agents and brokers, and policyholders in a paperless initiative. For each new agent enrollment in direct deposit of commissions, PHLY will plant ten (10) trees on behalf of the agent. For each new policyholder enrollment in electronic billing, PHLY will plant fifteen (15) trees on behalf of the customer.

Healthy trees provide habitat for wildlife, clean water for communities, and decrease the risk of flooding by increasing soil stability and reducing storm water runoff in urban areas. Record wildfires, storms, and other natural disasters have destroyed millions of trees in forests in recent years. Over one million acres are in desperate need of replanting according to the U.S. Forest Service.

“Weather- and climate-related events involving property damage WISCONSIN INDEPENDENT AGENT

and business disruption have drastically impacted the insurance industry,” said Bob O’Leary President and Chief Executive Officer of PHLY. “By partnering with Arbor Day Foundation to support the planting of 80,000 trees, we are not only taking steps to ensure that generations to come will benefit from our forests, but providing security to our policyholders.”

The company also donated $25,000 to the American Red Cross International Relief Fund to support the Nepal Earthquake relief efforts.

“Our thoughts and prayers are with the people of Nepal affected by this disaster and we commend the volunteers who are on the ground assisting the victims,” shared Bob O’Leary, president and CEO of Philadelphia Insurance Companies.

PHLY, its leadership, and employees have donated more than $500,000 in support of Red Cross relief efforts following several disasters at home and abroad. The Company supported Red Cross relief efforts in 2013 following Typhoon Haiyan in the Philippines and Midwest tornadoes in the U.S., in 2012 for Hurricane Sandy, in 2011 for the Japan Tsunami and Earthquake, and in 2010 following the Haitian Earthquake. Philadelphia Insurance Companies has donated more than $18 million to charitable causes and organizations since 1980.

To learn more about Philadelphia Insurance, please visit PHLY.com.

Grinnell Mutual 2015 Roads to Success Scholarship Recipients Announced Grinnell Mutual Reinsurance Company, in partnership with its independent agency force, is pleased to announce the recipients of the 2015 Road to Success scholarships. These $1,000 scholarships are awarded to high school seniors throughout Illinois, Indiana, Iowa, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota, and Wisconsin.

This year Grinnell Mutual and its agents will award $60,000 in scholarships to policyholders who demonstrated good grades in the classroom and were traffic accident and violation free throughout their high school careers. Since the program’s inception 10 years ago, Grinnell Mutual and its agents have provided college-bound students more than $510,000 in scholarships through the Road to Success program.

Wisconsin recipients include: Shania Skrzypcak, Marathon, and Shaeden Carlin, Boscobel.

To learn more about Grinnell, please visit grinnellmutual.com.

MAY 2015 | 31

COMMENTARY FROM COUNSEL

STATE HIGH COURT PROVIDES GUIDANCE REGARDING “POLLUTION CONDITION” On March 18, 2015, the Wisconsin Supreme Court held an insurer liable for defense costs and indemnity fees incurred by an excavation contractor company in four separate lawsuits over injuries and property damage that occurred after a natural gas line was damaged during excavation, triggering an explosion and fire.

In ACUITY v. Chartis, the Court determined that the claims in the cases originated from the release of natural gas, a covered “pollution condition.” Unlike the slew of recent pollution exclusion cases, this case involved defining a pollutant where doing so would establish coverage, rather than void it. (As a side note — I was plaintiff’s counsel for a subrogated insurance company in one of the underlying cases arising from the explosion, which

of the terms “irritant” or “contaminant.”

The parties did not dispute that the insured’s excavation project qualified as a covered operation.

asserted against the construction company were “not caused by Pollution Conditions” and, therefore, did not trigger coverage under the CPL policy. Wisconsin’s Supreme Court reversed the court of appeals, agreeing with the circuit ACUITY defended and indemnified the insured court’s original determination that the natural in connection with the four lawsuits but Chartis gas leak was indeed a pollution condition and, refused to do so — contending that its policy therefore, that the CPL policy’s coverage was did not provide coverage for the explosion invoked. The Supreme Court was critical of and fire. Chartis and ACUITY filed opposing the court of appeals “scant explanation of its

destroyed the 100-plus year old First Baptist Church in Oconomowoc — it was a very interesting scenario, and a bit of a miracle that the personal injuries sustained weren’t worse and more numerous, and that nobody was killed).

motions for summary judgment on the issue of coverage under Chartis’s CPL policy after ACUITY turned to Chartis with a contribution request, contending that Chartis’s CPL policy also provides coverage for the damages arising out of the explosion. Chartis argued that the

decision” and its determination that it was not the natural gas itself that caused the damage, but the exposition and subsequent fire.

In determining that the natural gas was indeed a pollution condition, the Court looked to the interpretation of the words “irritant” and “contaminant” in prior cases involving pollution exclusion clauses. In February 2015, this column discussed recent rulings from Wisconsin’s Supreme Court and court of appeals regarding what constitutes a “pollutant” in the pollution exclusion context. In its decision in ACUITY, the Court cited to its 2012 decision in Hirschhorn v. Auto-Owners Insurance Co. (which you may remember as the “bat guano” case escape of natural gas from the damaged pipe discussed in that February article). In Hirschhorn, did not constitute a pollution condition and insured homeowners sought coverage under that, even if the natural gas was a pollution their homeowners’ policy for damage to condition, it did not cause the property damage their vacation home that resulted from “the and bodily injury but, instead, the explosion accumulation of bat guano between the home’s and fire “caused” the damage. siding and walls” but the insurer denied coverage, taking the position that the bat guano The circuit court agreed with ACUITY and constitutes a “pollutant” as defined by the found that Chartis had breached its duties policy’s pollutant exemption clause. of defense and indemnification in refusing to recognize coverage and ordered it to share In Hirschhorn, the Wisconsin Supreme Court costs with the CGL carrier on a 50/50 basis. defined “irritant” and contaminant” by The circuit court reasoned that natural gas is a reference to its previous decision where it “pollution condition” as defined by the policy had concluded that, under the plain language and that this condition caused the bodily of the policy, the terms “irritant” and injury and property damage alleged in the four “contaminant,” when viewed in isolation,

This case is an important reminder to fully understand and investigate the needs of insureds and potential insureds so that they make informed choices about the policies they purchase…

Two insurers had issued liability policies to the construction company. ACUITY issued a Comprehensive General Liability (CGL) policy to the excavating contractor whose crew damaged the gas line, leading to the explosion, and Chartis issued a Contractors’ Pollution Liability (CPL) policy to that company.

Chartis’s CPL policy stated that coverage was available for claims for bodily injury, property damage, or environmental damage caused by “Pollution Conditions” resulting from “Covered Operations.” “Pollution Conditions” was defined by the policy as the “release or escape of any solid, liquid, gaseous or thermal irritant or contaminant…into or upon land, or any structure on land, [or] the atmosphere . . . provided such conditions are not naturally present in the environment in the concentration or amounts discovered.” The policy did not, however, provide a definition

32 | MAY 2015

lawsuits.

The court of appeals reversed, holding that the claims of bodily injury and property damage

are virtually boundless and that the reach of the pollution exclusion clauses must be “circumscribed by reasonableness.” The Court noted that the ordinary (dictionary) WISCONSIN INDEPENDENT AGENT

COMMENTARY FROM COUNSEL

The Supreme Court’s decision in this case reflects the expectations of a reasonable insured in purchasing a CPL policy. definition of “contaminant” is “one that contaminates” or “make[s] impure or unclean by contact or mixture.” The Hirshhorn court ultimately concluded that bat guano “[fell] unambiguously within the term ‘pollutant’ as defined by the…insurance policy” because: (1) “bat guano and its attendant odor indeed ‘make impure or unclean’ the surrounding ground and air space” and can cause “inflammation, soreness or irritability”, making it an “irritant” or “contaminant”; and (2) “waste” unambiguously includes bat guano because a reasonable person in the position of the insured would understand bat guano to be waste.

The Supreme Court also noted that the natural gas released at the site of the explosion and fire indisputably occurred in concentrations above those “naturally found in the environment” and, therefore, the escape of natural gas from the damaged pipe was indeed a pollution condition under the Chartis CPL policy. The Court further analyzed the expectations of a reasonable insured and noted that a reasonable person in the position of the insured construction company in this case would believe that natural gas inadvertently released into the air is a contaminant that creates a pollution condition covered under the Contractors’ Pollution Liability policy.

In ACUITY, the Court used the dictionary definition of “contaminant” applied by the court in Hirschhorn to determine that natural gas released into the air from a damaged pipe constitutes a contaminant because the gas renders the surrounding ground and air space “impure or unclean because natural gas is extremely flammable and explosive.”

The ACUITY Court also concluded that the pollution condition caused the property damage and bodily injury alleged in the four lawsuits. In reaching this conclusion, the Court stated that its reasoning was simple. The Court stated that, because there is no dispute that the actions of the insured’s employees led to a natural gas leak that ultimately resulted in an explosion and fire that caused injury

WISCONSIN INDEPENDENT AGENT

and property damage and that this “sequence of events is sufficient to establish that the escape of natural gas (a pollution condition) caused the alleged bodily injury and property damage.”

Ultimately, the ACUITY decision reflects the Wisconsin Supreme Court looking to common sense principles and the expectations of a reasonable insured in purchasing a Contractors’ Pollution Liability policy.

This case is an important reminder to fully understand and investigate the needs of insureds and potential insureds so that they make informed choices about the policies they purchase because the reasonable expectations of those consumers > Josh Johanningmeier is the IIAW’s General will weigh heavily in Counsel. Call the Legal subsequent coverage Services Hotline at (877) determinations.

236-1669.

MAY 2015 | 33

FOOD FOR THOUGHT

BIG ZUCKERBERG IS WATCHING… IN EUROPE

In Europe, playing a harmless game of Farmville can be risky. It’s claimed that Facebook tracks the Internet usage of people who don’t have a Facebook account. The Guardian reports that a study by the Vrije Universiteit Brussel and the University of Leuven’s Centre of Interdisciplinary Law and ICT claims that the social network tracks every visitor to pages on its site even if they have opted-out of tracking, have logged out of Facebook, or do not even have an account. Tracking begins whenever someone visits a page or account on Facebook’s servers or uses ‘plug-ins’ such as those that allow websites to be ‘liked’ on the social network. The study was carried out in the EU and claims that Facebook’s tracking is illegal as it does not allow users to give consent.

Source: Insurance Business

WEDDINGS ARE BIG BUSINESS

We’re coming up on wedding season and it’s time to open your hearts and your wallets.

According to a survey For the same money, you can have a wedding of 13,000 brides and grooms by TheKnot. or a 4-year education. com, the average wedding rings up to $29,858 - and that figure does NOT include the honeymoon. An engagement ring will set you back $5,002 on average while the outlay for the never-worn-again wedding dress is $1,281. By the way, the average cost of tuition for a state resident at a public college: $9,139 annually.

Sources: TheKnot.com, collegedata.com & phillymag.com

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