The Alberta Broker - Aug/Sep 2012

Developing High Performing Brokers

My Mentor Secrets Seasoned Is your E&O Limit Adequate?

Employees Know & Me Page 42 August - September 2012

Cdn Publication Mail Registration 40018149

Scott Treasure

Message from the President

Yikes! It’s article time already! You see, I’m no

writer (something that is likely to become more

evident as you progress through this “piece”), so the

idea of creating something that anyone else might be interested in reading has been something of a stressor in my life ever since agreeing to become the IBAA president a few years ago. I’ve been wracking my brain, trying to come up with something to write that would be interesting and yet measured enough not to get me in too much hot water. I was told that being somewhat controversial might be a good idea, but I think the controversial stuff might just have to wait until I’m a little more comfortable with this whole writing thing.

That, and I’d really rather get through this year without having to go through any kind of impeachment process. So, that said, on to my article.

The 2012 IBAA convention, although somewhat bittersweet, was a really great experience for me personally; from all of the feedback I’ve heard, the majority of the attendees agree

that, overall, it was a rousing success. Thankfully, I was able to get through my two speeches (including the tough part in my president’s speech where I briefly paid tribute to my late father, Randy Treasure) and I have to say that the response from those in attendance was incredibly positive and very supportive, so, thank you!

In my convention message and in my interview for my profile in the June/July issue of The Alberta Broker, I announced that I have chosen the theme of “promoting the broker” as my mantra for my year as president. While it’s not amazingly original, you will likely hear it from me ad nauseam, both in the pages of this magazine and literally from my big yap, should you come within ear-shot of me in the next 12 months.

When I say “promoting the broker,” I don’t just mean we tell our friends and family how great we are. More importantly, I feel it’s time we remind our key stakeholders about just who we are and why we are important (and for some new consumers, that we even exist in the first place). As insurance brokers, we represent the best method of buying insurance that has ever been imagined. (It’s not biased if it’s true, right?)

We are THE advice channel. We represent true choice in the insurance market place. We represent the clients’ interests (and no one else’s) when it comes to claims and in choosing where we place business in the first place. And we must be bold enough to point out that these same things simply cannot be said about our competing channels.

So it will be my job (or at least part of it) over the next year to promote our businesses and our business model to as many

IN THIS ISSUE

August - September 2012 The Alberta Broker is the official publication of the

continued on page 4

3010 Calgary Trail, Edmonton, AB T6J 6V4 T: 780.424.3320 •1.800.318.0197 F: 780.424.7418 • www.ibaa.ca

President Dean Bailey Chief Executive Officer George Hodgson Published six times annually by:

9249-48 Street Edmonton, Alberta T6B 2R9 T: 780.448.0936 • F: 780.465.6201 E: albertabroker@linkpr.ca Publisher and Editor Annette Hubick Printing McCallum Printing Group Design and Layout Ron Leckelt Advertising Michele Schuldhaus 780.448.2890 michele@linkpr.ca The Alberta Broker welcomes articles about the insurance industry and its people. Letters to the Editor are welcome.The opinions and viewpoints expressed in The Alberta Broker may not necessarily be those of the association and its members.

Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers Association of Alberta’s magazine - The Alberta Broker (date).”

Please send a copy to the publisher.

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8 12

Message from the President Message from the Editor Coach’s Corner IBC Insight

30

From the Superintendent

31 32 34

Did You Know?

Chinook Country Report Commercial Break

36

Coming Attractions

40

IBAA Professional Development Calendar Webinars

Weather Warning

15 16

Northern Exposure The Advocate

Standing Out in the Crowd

18

Know E&O

20

Secrets Seasoned Employees Know Legal-Ease

28

Is Your Limit Adequate?

41

Government Priorities and Initiatives

Identifying the Risks to Your Clients’ Supply Chains IBAA Fall Seminars

Getting Started in Commercial Lines

42

PYIB Perspective My Mentor and Me

Is a Dwelling “Vacant” if There’s Beer in the Fridge but No Pictures on the Walls?

The Alberta Broker August - September 2012

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continued from page 3 politicians who will listen at both at the federal and provincial levels, to the regulators in both the Alberta Insurance Council and the Superintendent’s office and to consumers whose thoughts and opinions will shape our business for years to come. I want to thank you all for this opportunity to do this, as I am truly honoured to represent you as the president of this association. I take my role very seriously … so I really hope I don’t screw it up.

On that note, I thought I would wrap this up with a brief update on one of the major IBAC initiatives: our annual Parliament Hill Day in Ottawa. Hill Day is the one day a year when all of the insurance broker associations from across the country converge on our nation’s capital to meet with MPs of all political stripes to sing the virtues of the brokerdriven insurance model. Having participated in this year’s edition of Hill Day held on June 5th, I can tell you that our message is definitely being heard in Ottawa (as evidenced by the again unchanged Bank Act this year). Specifically, that message is that credit-granting institutions ought not sell insurance at the point of granting credit due to the obvious and unfair pressure (intentional or otherwise) felt by prospective credit consumers relative to the sales process.

Fortunately, we have a simple and straightforward message and the manner in which we deliver it (via actual brokerage employees and principals at the grassroots level) is seen as being very effective. We are regularly acknowledged (by members of every party) as one of the most effective business groups that visit Ottawa. This year we had 90 MP meetings in total throughout the day spread across roughly 20 broker “teams.” In addition to our individual meetings, our group heard directly from former finance minister Ralph

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The Alberta Broker August - September 2012

L to R: John Rigby, Rigby Insurance; George Hodgson, IBAA CEO; Mardene Watson, IBAA Chair; Hon. Jim Flaherty, Minister of Finance; Steve Evanson, PYIB president; Scott Treasure, IBAA president; Dean Bailey, IBAA past president.

Goodale, the current finance minister, Jim Flaherty, and the leader of the Opposition, Thomas Mulcair (whose father was a broker himself ).

Our competing channels and the financial institutions simply cannot match the combined force of our message — it relates directly to each and every home constituency of all

politicians. So even if you don’t want to bring up a specific insurance “issue,” the next time you see an elected official from your area, go up and introduce yourself as a broker and talk about our visits in Ottawa. You, and the industry, will be better off for it.

Annette Hubick

Message from the Editor Our cover story by Karen Rutherford explores the process, challenges and payoffs of career coaching. In my lifetime, I’ve been fortunate enough to encounter people who shared the wisdom of their experience, relevant to both my personal and business lives.

These “coaches” came from different sources, and the duration of our relationships varied — from a client I saw regularly for years to an interesting soul I sat beside on an airplane. Perhaps it is the nature of being self-employed for twenty years or it’s just my own nature, but none of these coaching arrangements were formal, with a specific goal in mind and structure in place as described in Karen’s article (page 8). After reading it, I can certainly see the benefits to all parties of such an approach, including to the business.

PYIB’s Caleb Maksymchuk evidently agrees. In “My Mentor & Me,” Caleb writes about how and why he has grown to love being an insurance broker because of his relationship with his own coach (page 42).

Speaking of the wisdom of experience, in “Secrets Seasoned Employees Know,” author Quint Studer reveals 12 “truths” he gleaned from his years working with top senior employees and their bosses. If you’re looking to avoid learning these things the hard way, turn to page 20.

IBAA president Scott Treasure debuts his column in this issue (page 3). Scott talks about his focus on promoting the broker channel, which dovetails nicely with IBAA CEO

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George Hodgson’s “The Advocate” article on the many programs the association has devised to do just that (page 16).

Just as you often advise your auto policy clients about the need to increase their liability limits, Swiss Re’s Stephen Ritter advises brokers to examine their own E&O exposure.

In “Is Your E&O Limit Adequate?”

Stephen offers examples of hefty claims filed against brokers that may help you answer the question for yourself (page 18). And, in keeping with the questions about the intricacies of insurance, our “Legal-Ease” column ponders the ageold question: “Is a Dwelling ‘Vacant’ if There’s Beer in the Fridge but No Pictures on the Walls?” (page 28).

“Time flies” as they say, and that is never truer than when one is speaking about summer. In case you need a reminder, the back-to-school supplies are already on display at retailers (and the vein on my husband’s head begins to pulse when that Staples “It’s the most wonderful time of the year ...” ad campaign starts up again — he’s a high school teacher), and you’ll find a recap and calendar of IBAA’s fall seminar and webinar line-up starting on page 36.

Whether you’re camping, beaching, golfing, traveling, taking in a festival or just hanging in the backyard, I hope you get a chance to enjoy your summer and I thank you for carving a few moments out of it to spend time with The Alberta Broker.

The Alberta Broker August - September 2012

Simon Gibson DAS Canada Ilona Scott, Regional Sales Manager, Western Canada, DAS Legal Protection Insurance Company Limited (DAS Canada) is pleased to announce the appointment of Simon Gibson as Broker Consultant, Alberta.

Simon joined DAS in June 2012.

Prior to this he was employed by DAS UK, where he managed employment claims and was responsible for legal cost analysis.

Simon has his LL.B from the Sheffield Hallam University in the UK, and his work experience includes various legal and business fields in the UK and the USA. Simon, his wife Afsana and daughter Saffron have relocated to the Calgary area and are excited about this opportunity.

DAS Canada is part of the DAS Group, a global leader in the ten billion dollar legal expense insurance market, providing legal expense insurance to millions of customers in 18 countries. DAS Group is based in Germany, and is a subsidiary of ERGO, Munich Re’s primary insurer in Europe and Asia.

For more information about DAS, please visit us at www.das.ca.

A

ll over Canada, organizations large and small are facing the reality of experienced staff retiring and new staff taking over without the skills necessary to maintain the level of service expected.

This includes all aspects of business, including the insurance industry. In this article, we will explore the way a broker can develop inexperienced staff more quickly using the coaching (a.k.a. mentoring) process.

By Karen Rutherford

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The Alberta Broker August - September 2012

Let’s be clear, coaching does not cover what can be trained.

For example, a protégé can be taught the basic elements of insurance and sales in a course. No need for a coach, just a need for straightforward training.

Coaching steps in and helps a protégé move from textbook understanding to practical application in the real world.

For example, a protégé may have passed the CAIB program, but be uncertain as to what would be the best strategy to use in approaching a new client. Another example might be a protégé who has a difficult problem to resolve with a client but doesn’t know the best approach to use to avoid full-on conflict.

A new protégé may have tons of ambition, but may be falling short on sales and doesn’t know why. Or a protégé may have to negotiate something with an underwriter and can’t figure out how to get the underwriter on side. Using finesse in a difficult claims situation is another area where coaching is the best protocol and traditional training can only scratch the surface.

In interviews conducted with mentors and protégés both parties felt it was hard to do. Mentors often feel like it would just be easier to either do the job themselves, or simply rush the process by telling the protégé what to do. Protégés often feel like it would be easier if the coach would simply give them straightforward instructions or, better yet, just tell the correct answer to the dilemma.

Alas, the coaching process is not an easy way out for either party, but it is the best way to ensure you develop selfreliant brokers as soon as possible.

When you are setting up a coaching plan in your office, be sure to separate what can be taught, like CAIB or CIP, from what must be coached. Also remember that in any office a young protégé will need to be managed, which is a separate role. Managers have the task of making sure company policies

are followed, work ethic is acceptable, office rules are adhered to and may need to discipline the protégé from time-to-time. This role is usually filled by someone other than the coach. Coaches have to be 100% in the protégés corner. If on Monday you have to wear the hat of manager and discipline an employee for being late for work, then it is very difficult to become that same employee’s coach on Tuesday morning when your role is to be a trusted advisor. A coach must step up voluntarily. It is really hard to be coached by someone who resents the duty. Coach and protégé must both be looking for a mutually beneficial and long-term relationship. The content of the coaching relationship is completely directed by the needs of the protégé.

The goal must be to foster professional growth and to assist in acquiring competencies. The relationship must be a one-to-one ratio, informal but structured.

Coaches must know what can and should be learned from a book. You don’t want to waste a coaches’ time teaching something that can be learned independently or in a classroom.

Coaches must be able to see what is missing and then fill that void only when it isn’t available in a manual, course or office procedure.

Remember that in any office, a young protégé will need to be managed, which is a separate role.

Coaches must understand that their role is NOT to tell people what to do.

They must understand that while it might be quicker to provide a solution, it is far more important to allow a protégé to work towards his own solution by providing thoughtful questions, encouraging strategic thinking, posing possible outcomes and then working with the protégé to select the best way forward. The temptation to “save” a protégé will be overwhelming to all coaches at one point in time, but a good coach knows that doesn’t really develop any skills at all, only dependencies on others.

Coaches also know that to build a productive relationship with a protégé, there is no room for criticizing the protégé for mistakes; they leave that to a manager when necessary.

The Four Phases of Coaching The first step for a brokerage is to establish who will be the manager, who will be the coach and who will be the protégé. Once the parties have agreed, you can expect, as in all new relationships, the honeymoon phase. This can take several days, or even weeks, to move through. Both protégé and coach spend time understanding goals, hopes and dreams.

Phase two is when the parties get to know each other on a personal and professional level. This stage requires excellent communication skills. When it comes to understanding human communication there are more layers than an onion. It is so complex that many have tried to reduce it to personality types or psychometrics, like you are a type A personality, etc. At your office, you won’t have time to study all the elements that will make you a great communicator in depth, but it will be vitally important to understand that you are guaranteed to be different in style and preference from anyone else in your office. So if you are going to coach someone, or if you are to be coached, make sure you have multiple approaches to ensure clear communication, be ready with clear verbal questions and answers, have something visual to make your points like a great presentation piece or a website.

Give the other person time to digest what you are saying; allow time for reflection rather than demanding instant responses. Know that some folks need third-party evidence to support what you are saying, others will need some personal reference as to how any action

continued on page 10

The Alberta Broker August - September 2012

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continued from page 9 might affect them and others will be happy enough just to have some concrete steps to follow. Some will absolutely need to experiment for themselves, sometimes with good outcomes and sometimes with horrendous results.

A good coach knows that it is okay for people to learn in their own style and will get out of the way.

As coach and protégé become comfortable with each other’s communication styles, they can enter phase three. This is where they can focus on the purpose of the relationship. Goals can be clarified and expectations of both parties can be stated.

The first three phases allow for the fourth phase, which is to drill down and work on topics and difficulties. If the first three phases are rushed, the working part of phase four likely won’t achieve the goals of both parties. I have met several industry coaches. They jumped to phase four and believed that if they simply told the protégé how they did it, or worse, they think if the protégé watches them in action, the coaching could take place by osmosis.

Of course, nothing could be further from an effective approach.

Coaches must resist, at all costs, telling or showing the right way. Having a new producer attend a meeting with an experienced producer and an existing client does virtually nothing to develop skills. More often than not, it shows him sloppy technique and leads him to believe that what he should be trying to do is create new friends rather than find new clients. If the coach is actually still producing new business, there might be some value in having a new producer watch that process, but darn few experienced producers are still beating the bushes for new clients.

Coaches are better when they check their habits at the door and simply use their experience to bring thought provoking questions, pose scenarios and help come up with strategy. If your coaching plan currently includes a field

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trip to a client’s office where you will kibitz and then pick up the cheque and leave, you may want to reconsider what you are really modeling to a new producer.

Having a new producer attend a meeting with an experienced producer and an existing client does virtually nothing to develop skills.

The final phase is when you disengage from the roles of coach and protégé.

This separation must happen to create a fully functioning new producer. It may take a couple of years, but there must be sunset clause on the relationship. When the goals are met, the deal is done. If the goals aren’t met, the deal must still be done. Productive coaching ends either with success or with the need for a new coach, but it ends in a finite period of time.

The Alberta Broker August - September 2012

The Playbook For a coach and protégé to come together, you must have a few tools at hand. Both parties must have defined responsibilities, in writing. For example, you must define when, where and how many meetings a week must take place.

At the meetings you must identify the duties of the protégé. Protégés must come with questions and problems and they MUST come with proposed solutions for the coach to work with.

There must be a written log of progress which includes, topics dealt with, actions taken and results. You will want to create a set of ground rules around the expectations so that both parties know up front the consequences of failing to put in the work required on both sides.

Who’s a Good Coach?

When you are looking around your office for the best coach, you will be looking for one with good com-

munication skills, patience, good listening skills and a sense of humor, who is generous with her time and talent, willing to share expertise and current on business practices today; who has the ability to challenge without belittling and to be consistently a cheerleader for her protégé.

What’s in It for Me? Some might ask why any skilled producer would spend her time developing another. Good coaches will tell you there is great satisfaction in impacting the success of others. Good coaches enjoy contributing to the success of the brokerage by building it for the future.

Most coaches will admit that with each success they learn something as well as share something.

Protégés will benefit from enrolling in this process as it will help them achieve their goals faster, allow for fewer hard lessons and create a model they can use their entire careers as they move forward. It also relieves a lot of stress knowing they can seek help without looking vulnerable or weak to their manager.

Coaches will be more motivated if you plan a bonus package for them. It can be money, additional time off, better title or company perks. It can vary from coach to coach in your office, but it does require their compliance with the time and structure you all agree on.

Occasionally, protégés I have interviewed have said they regretted signing on because the process is hard work and requires their constant attention. I usually check in after a year to find that they are making a lot more money than their peer group. So delayed gratification is almost assured, and you have to hope that promise will keep your protégés engaged through the process.

The entire business world is trying to find a way forward with so many baby boomers retiring. Coaching is one way to develop internal talent in your brokerage more quickly than relying on experience alone. Good luck with your protégés!

The Alberta Broker August - September 2012

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IBC Insight Gregor Robinson

Weather Warning

Get Ready for Bad Weather Says IBC Study

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The Alberta Broker August - September 2012

Call it a history of violence.

May 2011 Wildfires roar through Slave Lake, Alberta.

The town and one-third of its homes and businesses burn down at 1000 O C leaving little but charred concrete and twisted steel.

It’s a trail of human misery with insurance claims exceeding $740 million.

August 2010 A hail storm pounds Calgary with hailstones almost two inches in diameter. Crops are damaged and cars dented. A national record for insured hailstone damage is smashed as claims reach in excess of $500 million.

Two years, two milestone events. But here’s the long-term trend: between 1983 and 2011 six of the eleven most costly insured loss weather events in Canada were in Alberta (when compared in 2011 dollars).

That’s a key finding in a study commissioned by IBC and released in June. IBC funded the study, Telling the Weather Story, by Dr. Gordon McBean of the University of Western Ontario, to examine the future of weather trends in Canada and to help put communities, industry and governments in a better position to begin to adapt to a likely future of more frequent extreme weather events. The study, which is rooted in historical data and sound science, makes regional projections about the severe weather effects that we are most likely to see in coming decades. While any forecast involves a degree of uncertainty, Dr. McBean’s approach brings the best available science to describing the changes likely to occur across Canada over the next 40 years.

Between 1983 and 2011, six of the eleven most costly insured loss weather events in Canada were in Alberta. summer stream flows, falling lake levels, retreating glaciers, decreasing soil-water content and a greater number of dry

years. In particular, Calgary could be subject to water scarcity issues, as water levels in the Bow and Elbow rivers are expected to decline under the expected changing climate conditions.

On the other hand, winter precipitation will increase in southern, central and northern Alberta, with the southern and northern areas experiencing the greatest increases of 10-15% by 2050. Spring precipitation may

continued on page 14

CHANGING WEATHER PROJECTIONS FOR ALBERTA in 2050 Temperature Trends By 2050, average annual temperatures are expected to increase by 2–4°C across Alberta. The winter season will see the greatest average temperature increase over the next 40 years, at 3–4°C, while the province can expect average summer temperature increases of 2–3°C. Average spring temperatures may increase in the north and south by 2–4°C and in central regions by 3–4°C. Autumn temperatures may increase by 2–3°C in southern and central regions, and 1–2°C in northern regions.

Precipitation Trends Annual and seasonal precipitation averages will shift across Alberta by 2050, with expected precipitation decreases in summer and increases in other seasons.

Reductions in summer precipitation will be the greatest in southern Alberta, at 5–10% by 2050. These changing precipitation patterns could result in lower The Alberta Broker August - September 2012

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continued from page 13 increase by 5-15% in southern areas and 10-15% in central and northern areas.

The ratio of precipitation that falls as snow will decrease across Alberta by 2050. This trend will be notable in southern Alberta, where average annual ratios will drop by 15%. Reduced snowfall could result in changes to river flood regimes in spring and may exacerbate water scarcity issues. Annual, maximum and minimum daily stream flow is expected to decline across the province, which also carries implications for water scarcity.

Severe Precipitation The changing nature of extreme precipitation events will likely result in continued flood risk throughout Alberta. In particular, frequent heavy rainfall events causing flash flooding in small catchment areas are likely to become more frequent across Alberta by 2050.

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One-in-20-year events could increase in severity by 10-15% by 2050 in southern and northern Alberta. A 15% increase in the severity of extreme precipitation events would result in historical one-in-20-year events occurring once every 10 years. Historical one-in20-year events in central Alberta could increase in severity by 5-10% in the next 40 years, while an 8-15% increase in intense winter storms by 2050 is expected for the province.

Hail Hail events are associated with warmer temperatures and may increase, although historically drought periods have seen less frequent hail in some parts of Alberta.

Wildfires Lightning flash density, which has implications for wildfire, could increase by 20% in southern and northern Alberta by 2050. Average temperature changes that result in earlier onset of spring- and summer-like conditions

The Alberta Broker August - September 2012

will also lengthen the wildfire season and increase wildfire risk. As a result of these factors, in central regions the area burned by wildfires could increase by 15% by 2050.

ADAPTATION Severe weather as a cause of significant economic and insurance costs is not just a phenomenon of the future — it is a current reality. What we are learning through studies such as Dr. McBean’s is that we are likely to see more of this with the passage of time.

To prepare for a future when onein-20 year events become one-in-10 to 12-year events, we need to start doing things now to reduce the losses from severe weather.

GREGOR ROBINSON VP, Policy and Chief Economist Insurance Bureau of Canada grobinson@ibc.ca

Who? What? Where? Chris Lewis

Northern How’s that golf game going? I can assure you mine is just as bad as, if not worse than, it was last year! With the gorgeous weather we have had so far this year (touch wood), I found it quite tough to find some time to write this article. However, here we go with the latest news and notes.

What Happened?

The Canadian Association of Insurance Women held its convention at Mayfield Convention Centre. I was able to attend the fun night event on the Wednesday evening. There were about one hundred people who attended the event, of which most were primarily women. When asked to serve slushies at the event, I could not pass it up, of course. The event seemed to be a huge success with people attending from all over the country. Congratulations to Tracy Fata (Portage) and her team who were able to make this event happen.

Congratulations are in order for Dale Smith of Granite Claims Solutions out of Calgary for his hole-in-one at the Blue Goose tournament in Lacombe on June 7th. The hole was sponsored by Titan Construction and insured through Intact Insurance. I was shocked to see that Kevin Webster (Intact) did not have a big cheque or suitcase of money sitting in his car for these types of situations. Congrats Dale and welcome to the club!

I want to thank everyone who volunteers time to organize these insurance

industry tournaments. It’s never an easy job organizing these events, but we, as an industry, should be really proud of the amount of money raised and donated to charity.

Who Went Where?

Lots and lots and lots of changes over the past few months …

• McLean & Shaw opened up in Grande Prairie where Pierce Krol will be running the office. Pierce came over from HUB Insurance in Grande Prairie.

• Otilja Majewski also left HUB Insurance to join McLean & Shaw in Grande Prairie.

• Peace Hills is happy to announce that it picked up two great people in Trinity Player and Laura Rinaldi (formerly Intact); both joined Peace Hills as commercial property underwriters.

• Scott Marit joined First Foundation Insurance with Kathy Manchak. Scott is looking after personal lines in the office.

• Halie Buac joined Intact Insurance as a commercial underwriter. Halie was formerly with Peace Hills Insurance.

• Another Lewis has entered the insurance industry. Michael Lewis joined Intact Insurance and is working in commercial underwriting. Let me be sure to clarify, though, that I am the much smarter and better looking brother.

• Lori Bartlett left the IBAA office in Edmonton to work for Intact

Insurance in Calgary. We all wish Lori the best in her big move down to Calgary. However, please don’t start cheering for the Flames.

• Neil Cory joined SGI Canada down in Calgary. Neil was the business development advisor and my counterpart down in Calgary for Peace Hills Insurance. Best wishes to Neil on his new endeavours.

• Ross Hallett is starting with VB Insurance in Edmonton.

• Raylene Cooper left Meridian Insurance in Lloydminster to try her hand in the oil and gas industry. After eight years with Meridian, this was a big move for Raylene and we wish her all the best.

• Aviva Canada hired a couple of people to join its commercial team: Mona Manji rejoined Aviva Insurance after her time with Travelers Canada, along with Alistair McBride. Both will be commercial property underwriters.

• Prairie Villa Insurance in Grande Prairie added a few new people to its team: Dionne Brown (formerly with Co-Op), Courtney Hayes (formerly with JB Ins.), Lorelei Songer (formerly with Valley First Insurance Services) and Margaret Mazurek (formerly with WFG Grande Prairie).

CHRIS LEWIS Business Dev. Advisor, Peace Hills Insurance clewis@Phgic .com

The Alberta Broker August - September 2012

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The Advocate

George Hodgson

Standing Out in the Crowd IBAA Initiatives Promote Broker Members

B

y the time you read this column, I will have been CEO of the Insurance Brokers Association of Alberta for one year. It has truly been an incredible and fulfilling year for me with a very steep learning curve.

First, I would like to take this opportunity to thank our director of professional development Lori Bartlett for her years of service to IBAA and for guiding me through my first year. She has left IBAA to pursue opportunities on the company side and although we will miss her greatly, we all wish her every success in her future endeavors.

Second, I would like welcome our new director of professional development, Karen Bushie, who began with us on July 16. Karen brings a wealth of knowledge and experience in the field of professional development with AMA Insurance. We can expect a continued strong focus on professional development from our new director.

One of IBAAs’ primary purposes continues to be government relations.

With the provincial election out of the way and a new provincial majority government elected, our focus must again turn to introducing ourselves to the new MLAs, particularly the new Official Opposition Wild Rose Party.

The challenge is to establish the same good working relationship with the new MLAs, of all political persuasions, that we enjoy with their returning colleagues.

Insurance Goal of the Game IBAA continues to strive to strengthen our government relations effort. In order to do this, we have undertaken two new initiatives to showcase member brokers in their communities.

IBAA has teamed up with Victims’

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Services and the Alberta Junior Hockey League (AJHL) to initiate a program called the Insurance Goal of the Game.

The Insurance Goal of the Game concept was instigated by IBAM as a promotional program to showcase the Broker Identity Program and has been used for the last two years at the Memorial Cup. At the same time, IBAA was looking for a province-wide charity to get involved with and chose Victims Services. Victims Services operates in over 120 communities throughout Alberta offering support and assistance to victims of crime, disasters and accidents.

The Insurance Goal of the Game programs sees local brokers in or near each of the AJHL communities team up with the local team to sponsor home games. If the home team wins the game by an insurance goal, the sponsoring broker will make a donation to the local Victims Services and IBAA will match it. The AJHL has 16 teams throughout Alberta from Grande Prairie and Fort McMurray in the north to Canmore and Brooks in the south. Approximately three or four times per season, presentations will be made to the Victims Services Units of the sponsoring brokers’ choice.

Stay tuned for more on this in the next few months, including pictures of presentations to Victims Services Units, as this program will be rolled out in time for the start of the AJHL season.

In the end, the overall goal of this program is to involve brokers at the local level in this province-wide initiative.

Additionally, the four western insurance brokers associations are in the process of purchasing a promotional program from the Western Hockey League that will also showcase the Insurance Goal of the Game at that level.

The Alberta Broker August - September 2012

By the time you read this, negotiations should be complete in time for a roll out at the beginning of the hockey season.

Parliament Hill Days At the beginning of June, a number of people from IBAA attended IBAC’s Hill Days in Ottawa. Our government relations department has been very successful in getting the message out to federal politicians regarding the Bank Act on behalf of P&C Insurance consumers. MPs and senators of all political parties now know very well what our message is. Moreover, federal politicians also see the brokerage industry in a positive light.

However, this is no reason for brokers and the brokers’ associations to become complacent. The Bank Act comes up for review again in 2017 and we can all be sure that lobbyists who are opposed to our position will be out in full force.

The broker associations must be ever vigilant on behalf of consumers.

My Insurance Shopper IBAA will be purchasing the ability for member brokers to buy the services of My Insurance Shopper (MIS), an online quoting system developed by the Insurance Brokers Association of Ontario. MIS allows consumers to get an online quote as well as find a broker in their area. This is a cost-effective means by which member brokers gain access to the online P & C insurance shopper market.

Mobile Phone App Over the next few weeks, IBAA will be introducing a

mobile phone app that member brokers can purchase to provide to their clients.

This app will be particularly useful to broker clients when reporting an auto accident. Again, more details will forthcoming over the next few months.

All in all, this will be another busy, exciting year at IBAA with a number of new initiatives and programs to be rolled out in the fall.

Personal Note: Many thanks to insurance brokers and people from all sectors of the insurance industry in Alberta and throughout Canada who sent cards, offered prayers and condolences and all forms of support on the occasion of the recent loss of my son to cancer. My family and I greatly appreciate all of your support during this difficult time.

GEORGE HODGSON CEO, IB AA ghodgson@ibaa.ca

The Alberta Broker August - September 2012

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Know E&O Stephen Ritter HOW HIGH should your E&O liability limit be? This is a question that is being asked with increased frequency. Unfortunately there is no easy answer.

Many regulators mandate insurance brokers carry E&O insurance in order to comply with the insurance license requirements.

Depending on the province, the E&O mandate also stipulates a minimum limit of liability protection be purchased. The limits range between $500,000 and $1,000,000 per claim, with an aggregate limit going up to as high as $5,000,000.

Compare this to the third-party liability insurance requirements of a registered owner of an automobile.

Regulations require the vehicle owner to purchase, as a minimum, a stipulated limit of insurance. P&C brokers do a good job recommending higher automobile limits to their clients. It is relatively easy for those of us in the industry to point to examples of serious automobile accidents where the resultant damages exceed the minimum liability limit required. Generally speaking, we have not seen a lot of broker E&O claims stemming from inadequate automobile third-party liability limits.

Similar to automobile insurance limits, the following broker E&O claim examples illustrate the need to purchase adequate E&O limits: Exceeding Binding Authority An insurance broker sold a commercial vehicle liability policy to an insured.

A truck driven by one of the insured’s employees ran a stop sign and broadsided another car. The driver of the

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Application Error — Misrepresentation The insurer denied a homeowner’s claim following a total fire loss based on alleged misrepresentations on the application regarding prior loss history and existence of a central station monitored security system. The policyholder contended the broker was aware of the prior claims history and the temporarily inoperative security system.

The case was settled with a payment of $1.05 million.

Inadequate Limit other car suffered severe permanent injuries.

The automobile insurer for our broker’s client rescinded the policy based on misrepresentation by the broker’s client. The policy holder listed only himself as the driver and did not disclose that he sometimes had an employee drive the vehicle. The employee involved in the accident had a very poor driving record and had this driver been disclosed, the automobile insurer would not have accepted the risk.

The automobile insurer also took the position that our insured broker exceeded its binding authority with respect to this commercial risk. At time of binding, the broker had binding authority for light commercial vehicles.

For heavy commercial vehicles, the broker had to get prior approval. While our insured stated they obtained prior approval, unfortunately there was no supporting documentation.

This case settled for a significant seven-figure award against the broker.

The Alberta Broker August - September 2012

The plaintiff purchased a large building and requested coverage with a limit equal to the purchase price. The broker advised the plaintiff that the requested limit was insufficient given the size of the building. The plaintiff eventually purchased limits much higher than that initially requested. The insurer subsequently obtained an inspection that put the replacement cost of the building at nearly double the limit purchased. The broker received the report but did not forward it to the policyholder. Three months later the building was destroyed by fire. The policy holder is seeking significant seven figure damages from the broker for the difference between the insured value and the building replacement cost.

A number of factors should be taken into consideration when determining an appropriate limit for your E&O insurance including: • The composition of your portfolio (personal lines / commercial lines) • The policy limits you currently provide • The complexity of the accounts you

have in your portfolio. Do you have risks that are prone to large limit losses (i.e. trucking, professional liability, surety, aviation, hazardous products and pollution liability)?

• The size of your brokerage (“deep pocket” syndrome) At Swiss Re, our statistics clearly show that the severity of broker E&O claims continues to increase. They also show that one in eight brokers can expect to be confronted with a new E&O claim in 2012. One last statistic; 45% of brokerages in our portfolio have purchased liability limits of $2 million or less!

The above claim examples and statistics point to a need for brokers to take a hard look at their current E&O liability limit and increase it as appropriate. Remember, what you may consider to be an adequate limit for an E&O loss can prove to be inadequate should a major loss event occur.

• Property • CGL (Incl. Truckers) • Cargo • COC • Umbrella/Excess • Fine Arts • Product Recall • Cross Border

• Auto Physical Damage (Incl. Logging) • Special Events • CEF • Aviation • High Value Homes • E&O • D&O

WHOLESALE BROKER FOR BROKERS Tel: 780.442.2240 • Toll Free: 1.866.328.1314 E: nmccreedy@auroraunderwriting.com

auroraunderwriting.com

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice.

Insurance products are underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solutions.

STEPHEN RITTER Senior Vice President Swiss Re Corporate Solutions Stephen_Ritter@swissre.com The Alberta Broker August - September 2012

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SECRETS Seasoned Employees Know Being a great employee isn’t just about doing the work. It’s about doing the work and navigating the minefield of leader, co-worker and customer needs.

Ironically, for most people this all comes together about the time you retire.

I will help you master a lifetime of workplace wisdom — right now.

By Quint Studer

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The Alberta Broker August - September 2012

In work, as in life, we learn from trial and error: I was having Problem A so I implemented Solution A and it didn’t work. Then I tried Solution B and it did! Next time I’ll know to use Solution B first thing. And so it goes, over and over again, throughout your career.

Forty years or so go by and, finally, you’ve got it all figured out. You retire with the proverbial gold watch and a head full of valuable knowledge.

Wouldn’t it have been nice to have that information at the beginning of your career instead?

I’ve worked with thousands of employees at every level. My work with CEOs, in particular, made it clear that high-level leaders value certain skills in the people who work for them—and those skills may not be what you’d expect.

The issues most people struggle with have little to do with our ability to do the work. It’s all the things that happen around the work. It’s how good we are at keeping projects moving. It’s whether we make life easier for our coworkers or more difficult. It’s how well we can read and respond to customers’ unspoken needs.

When we’re more effective at work, everything changes. Leaders value us and set us up for success. Coworkers like us and want to help us. Customers like us and keep doing business with us.

All of these conditions work together to make us happy on the job — and when we’re happy on the job, we’re happy at home.

Here are twelve secrets seasoned employees know — secrets that anyone of any experience level can use to their advantage:

let her know — just be sure you’re not procrastinating.

The issues most people struggle with have little to do with our ability to do the work.

Sometimes people let a few missing details hold an entire project hostage.

I find it’s always better to complete chunks of work and fill in the missing details later. This is good for your workflow but it also reassures the boss that you’re doing the best you can to keep the project moving. It relieves a lot of anxiety for her.

“Park ranger leadership” is exhausting and ineffective. When you bring the boss a problem, always bring a solution. Leaders are like the rest of us: overloaded and overwhelmed. Yet, despite the boss’s already massive to-do

list, employees habitually add their problems to his pile. I call this theboss-will-figure-it-all-out mentality or “park ranger leadership” — it’s the least effective way to get things done.

Think about it this way: If every time you got lost in the woods, a park ranger showed up to lead you out, you’d never learn to find the way out yourself. That’s what many leaders do, and it creates a situation where employees stop trying to solve problems. They think: Someone up there has always figured it out before, so they will this time, too. But that’s hard on the leaders and it’s limiting for the company.

When you bring a problem to the boss, also bring a solution. The boss will appreciate your initiative and creativity. Also, you’re closer to the problem than he is so you can probably come up with a better solution. If all employees did this, the whole company would be stronger, more innovative, and more resilient.

continued on page 22

In the boss’s mind, the ball is always in your court. Once the boss gives you an assignment, she may mentally mark it off her to-do list. She may even forget about it. It’s up to you to do what you need to do to move it forward quickly.

Never let yourself be the hold-up.

Check in with the boss regularly on the project so that she doesn’t have to bring it up. If you hit a roadblock and can’t proceed until you get more information, The Alberta Broker August - September 2012

21

continued from page 21 There is one thing the boss cares about more than anything else. Figure it out and act on it. When you know what matters most to the boss, then you can laser-focus on meeting her needs in this area. Let’s say you’ve noticed negativity drives her crazy. She just can’t stand griping and complaining. It puts her in a bad mood and makes her want to hide out in her office. Once you realize this, you can make an effort to frame your communications with her in a positive way.

This is not sucking up and it’s not a self-serving exercise. It’s just being aware of your own behaviour and tweaking it to create a productive working relationship with the boss. It’s good for her, it’s good for you, it’s good for everybody.

Knowing the why makes all the difference. If you’re not sure what it is, ask. Let’s say your company implements a major change in the way you

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capture and process customer feedback.

No one likes the new system. It’s harder and more time consuming than the old way, and you’ve noticed your coworkers seem resentful. The problem is that no one told them why the system changed.

When companies implement change, there’s almost always a reason why. But leaders may not always explain that reason and people almost always assume the worst. Instead of getting behind what seems like an arbitrary new rule, they resist it.

If this happens at your company, ask about the why. You can tell others what you find out. Not every company understands the value of transparency, but sometimes one employee taking the initiative to ask why can change that.

There’s no substitute for being liked.

Do you greet people with a smile each morning? Do you bring breakfast for everyone once in a while? Do you say happy birthday? Do you offer to take their trash when you’re taking yours out? Do you congratulate coworkers when they have a big win? There are a

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million little ways to contribute to what I call the “emotional bank account” at work. These deposits have a big, big impact—and they reduce the pain of the inevitable withdrawals.

Go out of your way to make people happy when you can and they’ll forgive you when you make a mistake. These things are not that hard to do; it’s just that we don’t always think to do them.

When you start looking for ways to be a positive force in your coworkers’ lives, you’ll be amazed by how many there are — and what a difference they make.

Last-minute requests can derail your day. Retrain chronic offenders. Being a great employee means executing well, meeting deadlines and, in general, protecting your own “brand.” Yet, it also means stepping in and helping others when they need your expertise. It’s not always easy to walk the tightrope between these two realities — especially when coworkers are constantly asking you for “five minutes of your time”

continued on page 24

continued from page 22 (which really means 30 minutes or even longer).

When you’re good at what you do, everyone wants a piece of you. That’s good, but it can also lead others to take advantage of you, even if they don’t mean to. If you don’t stop last-minute requesters, your own work will eventually suffer.

Hold up the mirror and recognize your role in the problem. What we permit, we promote. Usually, people find they need to be more open with coworkers about how long a task takes and how much notice is needed to get it done. When you educate others, you not only relieve your own burden; you help them do their work better.

It’s best to resolve co-worker issues one-on-one. ( Just like in kindergarten, no one respects a tattletale!) This is a tough one for many employees, because we tend to avoid confrontation. Yet taking a conflict to the boss, who then must discuss it with her boss, who may then have to get an HR rep involved, is time consuming and unproductive.

I’m not saying there aren’t times when it’s best to go through official channels and involve HR. Certainly, there are. Yet many times an issue with a co-worker can be solved with a faceto-face adult conversation. Confronting others may not always be easy, but it’s a necessary part of clear and productive communication. It builds healthy work relationships and shows a true sense of ownership.

they show weakness or admit that they failed. The opposite is true. It actually makes people like us. It shows we’re human, just like them.

Blaming, finger-pointing, and badmouthing are deeply destructive to your company’s image. It’s harder than ever to win customers and keep them happy. These days, everyone needs to be engaged in building the organization’s brand. That means it’s critical to “manage up” your company, its products, and your coworkers with every customer interaction — and when you’re off the clock as well.

You may think you’re building rapport with an irritated customer if you say, “Yeah, such-and-such department is really disorganized, but don’t worry, I’ll take care of your problem.” Instead, you’re actually hurting the company.

Even if the customer likes you personally, he may never do business with your company again.

Negative comments, even subtle ones, make people uncomfortable. On the

“I’m sorry” are two of the most powerful words in the English language.

We all make mistakes. It’s what we do afterward — after we’ve dropped the ball or missed a deadline or got caught in the act of gossiping about a co-worker — that truly determines our character as employees and coworkers.

And it’s what ultimately determines whether the people we work with want to help us out…or want to help us out the door.

Apologizing shows one’s vulnerability and vulnerability is a powerful trait. People fear they’ll be rejected if

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The Alberta Broker August - September 2012

other hand, they’re drawn to positivity. They like positive people and they like hearing positive things about what they’re spending their money on.

Great employees instinctively realize this. They are ambassadors of positivity.

Anxiety keeps customers from buying. Do everything you can to alleviate it and you’ll see amazing results. When people are purchasing a product or service — especially if they’re spending a good bit of money — they worry that they’re making a mistake. They want reassurance. Great employees realize this and provide it at every turn.

That reassurance may mean “narrating” the process the customer will go through a communication framework I call AIDET® (the acronym stands for Acknowledge, Introduce, Duration, Explanation, and Thank You). It may mean practicing good handovers.

It may just mean saying something like, “I have one customer who bought

continued on page 26

continued from page 24 this jacket and called me back just to rave about it. She said it was the most versatile jacket she’s ever had. She wears it with everything!”

Anything you can say or do to help customers feel good about their decisions will have a big impact. Put yourself in the customer’s shoes and think, What would I want to hear in this situation? Then, say it.

“A little bit extra” goes a long way with customers. Often, it’s the little things that keep us coming back to our favourite stores, restaurants, physicians, or other businesses. It’s the server who knows exactly how you take your coffee or the plant nursery owner who calls you to let you know a shipment of your favourite flowering shrubs just arrived.

The best employees know that doing a little bit extra for customers gets powerful results. They take it upon themselves to go the extra mile, without being

26

asked to do so or without worrying that it’s not in their job description.

Complaints are gifts. Handle them right and customer loyalty will skyrocket. Great employees don’t get defensive when customers complain. They know they’re hearing valuable feedback that can help the organization improve its service. They listen, they sincerely apologize, and they take action to make things right. Most customers are quite forgiving in the face of such a response — and they’re usually so impressed that they not only return to the company, but also recommend it to others.

It’s a mark of maturity and professionalism to be able to respond selflessly to customer complaints. It’s a rare skill.

And, in a time when customers have so many options that they don’t have to give you a second chance, it’s a truly valuable one.

I’ve worked with all kinds of employees at all levels of leadership over the years, and I’ve realized most people

The Alberta Broker August - September 2012

sincerely want to do a great job. People do realize they need to show value quickly; they are aware that they need to get better faster. It’s just that they don’t know how.

If companies say to people, “Here’s how you can do the best job possible and be a lot happier in the workplace,” they’ll see amazing progress. I think people already have the will. Once they have the skill also, they’ll be unstoppable.

About the Author Quint Studer is the founder of Studer Group®. A recipient of the 2010 Malcolm Baldrige National Quality Award, Studer Group implements evidence-based leadership systems that help clients attain and sustain outstanding results.

The Great Employee Handbook is Studer’s sixth book. Others include Wall Street Journal bestseller Results That Last and BusinessWeek bestseller Hardwiring Excellence. To learn more, please visit www.studergroup.com.

Legal-Ease

Shelley L. Miller and Terry J. Williams

Tor Quinn (“Quinn”) was 33-years-old and living in Edmonton when his mother, then living in Victoria, was diagnosed with cancer. He decided to buy a house in Vancouver to be closer to her. His friend, Peebles, agreed to invest in the property with him. On July 1, 2006 they purchased a house on 94A Avenue in Surrey. Quinn and Peebles attended a meeting at B&W Insurance where they completed an application for a homeowner’s policy from Wawanesa Mutual Insurance Company.

Quinn rented out his home in Edmonton and moved his few personal possessions to Surrey where he worked locally as an installer of fire protection systems. Two of the three bedrooms in the house in Surrey were never furnished. No pictures were hung on the walls and there was no telephone landline but he did have cable television connected. Quinn lived in the house with his few possessions from the summer of 2006 through to late 2007.

In 2007, Quinn found a girlfriend and spent increasing amounts of time at her house. The girlfriend felt uncomfortable staying at Quinn’s house on 94A Avenue because Peebles periodically dropped by unexpectedly to inspect his investment. She resented this intrusion on her privacy and the resulting friction affected relations between Peebles and Quinn. Personal discomfort, coupled with rising real estate prices, led Peebles and Quinn to discuss selling the house. In late November 2007, Quinn sold most of his furniture to a friend and moved his bed to a storage room at his girlfriend’s house. In December 2007, Quinn and a friend installed a new gas furnace in the house on 94A Avenue to make it more marketable.

Quinn did not plan to move back into the house on 94A Avenue if it sold quickly but he was considering moving back in if the house did not sell by the summer of 2008, so he could use the swimming pool. Quinn left enough personal possessions in

Wawanesa Policy excluded coverage for, “Loss or damage occurring after your dwelling has, to your knowledge been vacant for more than 30 consecutive days; The term “vacant” was defined in the policy as: “Vacant” refers to the circumstance where, regardless of the presence of furnishings: all occupants have moved out with no intention of returning and no new occupant has taken up residence; or in the case of a newly constructed house, no occupant has yet taken up residence.”

The court stated that the phrase, “moved out with no intention of returning” in the vacancy exclusion must be read as a whole and connotes permanence. It does not apply to an occupier who moves out of premises temporarily with the intent to return to live there.

A mere temporary vacancy or absence of the occupant, which is reasonable in view of the contemplated uses of the property and all of the circumstances, and which is evidenced by some act fairly showing not only an intent to return but also an intent not to abandon the premises for the purposes of their use, will not of itself operate as a breach of a condition as to vacancy or non-occupation. Premises are not to be considered vacant within the meaning of the definition if the occupant moves out temporarily, for example, to stay with parents or friends. However, occupancy is not re-established by a return for transitory purposes. Premises would be vacant if the occupant moved out with no intent to return except, for example, to clean up the premises or to obtain the return of a damage deposit.

With respect to the issue of a material change to the risk, Ricky Grass, one of Wawanesa’s underwriting managers, testified that if Wawanesa had been advised of the state of affairs existing in early February 2008, it would have continued the policy only to the next renewal date with changes to coverage: reducing risks insured from all risks to fire and extended perils, and

Is a Dwelling “Vacant” if There’s Beer in the Fridge but No Pictures on the Walls?

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the home so that he could sleep there when he wished to do so. This occurred from time-to-time, when his volatile relationship with his girlfriend erupted into overt hostility. In February 2008, Quinn began work at a diamond mine in the Northwest Territories. His work schedule thereafter had him in the north for three weeks followed by one week off. On March 29, 2008, following a fight with his girlfriend, Quinn went to the 94A Avenue house and stayed there overnight. At that time there was little food in the house except what he referred to as “survival food”: Mr. Noodle and beer.

When Quinn returned from the Northwest Territories to the lower mainland on April 23, 2008, he was picked up by his girlfriend and returned to her house. He had missed her and could not return to the 94A Avenue house with her because Peebles did not want her dogs in the house while it was up for sale. On April 26, 2008, the house on 94A Avenue exploded and was destroyed by fire. After the fire, Quinn stayed with his girlfriend in the lower mainland when he was not working in the Northwest Territories.

Following the death of his mother, he was offered a job in Fort McMurray and ultimately returned to his house in Edmonton.

Wawanesa denied coverage on the grounds that the loss occurred after the dwelling had been vacant for more than 30 consecutive days and the insureds had failed to advise it of a change in the dwelling’s occupation and use, which was material to the risk insured. The

The Alberta Broker August - September 2012

reducing limits of coverage from guaranteed replacement cost to simple replacement cost to limits. There would also have been additional exclusions and the premium charged would have been approximately 36% higher. The court accepted that vacancy or nonoccupancy can amount to a material change in the risk insured. The court also held that there may be a breach of the obligation to inform the insurer of a material change in the risk as a result of a dwelling becoming “unoccupied” even if it is not “vacant” within the definition of “vacant” in the policy.

With respect to the vacancy exclusion, the court observed that Quinn left some possessions, including his car, some clothes and some furnishings in the house. The house was maintained, not left to deteriorate or be used by vagrants. The few possessions left there permitted Quinn to sleep in the house when he wished to do so. The premises had utilities hooked up and some food was left there, including beer in the fridge. Quinn had in fact slept there less than 30 days before the

explosion and was free to return anytime he wished. Quinn had no other home, he owned no furnishings at his girlfriend’s house (other than his bed in storage) and his personal possessions were in a hockey bag. Quinn intended to return to sleep occasionally if and when he fought with his girlfriend and to reside there if the house did not sell. The court found that the insurer had not established that Quinn had permanently removed himself from and abandoned the 94A Avenue house as a place of residence more than 30 days before the loss. Therefore, the vacancy exclusion did not apply.

However, with respect to the issue of a material change in the risk, the court observed that the 94A Avenue house had been insured as a principal

residence. When the policy was first obtained, and again at the time of renewal, Quinn was living in the house.

Although he had few personal possessions, he slept in the house most of the time, received all of his mail there, and had no other ordinary place of residence. Although the gradual reduction in his occupation of the premises had not come to the point in 2008 where Quinn could be said to have moved out with no intention of returning, the nature of the occupancy had changed dramatically. The court held that the insureds’ failure to advise the insurer of the material change in the risk arising out of the tenuous occupancy of the premises justified the insurer in denying coverage.

SHELLEY L. MILLER, Q.C. and TERRY J. WILLIAMS are lawyers with Fraser Milner Casgrain LLP and practice in the professional liability insurance area. terry.williams@fmc-law.com shelley.miller@fmc-law.com

The Alberta Broker August - September 2012

29

From the Superintendent

Mark Prefontaine

Government Priorities and Initiatives

It is my pleasure to continue working with the Insurance Brokers Association of Alberta (IBAA). I especially appreciate the opportunity to provide you with an update from the regulator’s perspective each year at the brokers’ annual convention.

I would like to take this opportunity to congratulate Scott Treasure on becoming the IBAA president for 2012/2013. My office looks forward to working with Scott and we wish him success in this important role. On that note, I would also like to extend my sincere appreciation to Dean Bailey as outgoing president.

I would also like to commend the IBAA on the substantial and exceptional education efforts its staff has undertaken to educate brokers across the province on changes to the Insurance Act. Much dedication and many hours were invested in this endeavor.

For brokers who were not in attendance at this year’s convention, I would like to reiterate a few key government priorities and initiatives for the coming year that that were highlighted at the convention and are relevant to the work of all Alberta brokers.

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General Agent Licensing Since January 2012, representatives from IBAA have participated in meetings with Alberta Treasury Board and Finance (Finance), the Alberta Insurance Council (AIC) and the Canadian Association of Direct Relationship Insurers (CADRI) to discuss changes to the existing general agent licensing scheme.

The AIC has proposed changes to general agent licensing in Alberta that will more closely align Alberta with other Canadian provinces. The changes

The Alberta Broker August - September 2012

would provide benefits to general insurance agents and those interested in careers as agents, such as the option to hold a probationary license and the elimination of the mandatory advancement from Level 1 to Level 2.

IBAA has been a key player in the discussions and has made a number of valuable contributions. Your representatives have passionately represented the best interests of Alberta’s brokers, and they have offered valuable insight on issues such as supervision requirements.

AIC Code of Conduct Another issue that I understand has elicited some concern among brokers in Alberta is the General Insurance

Council Code of Conduct published by the Alberta Insurance Council in May 2011.

I would like to clarify that, apart from those provisions that are a reiteration of legislation or regulation, the Code of Conduct is not enforceable and is not incorporated into any regulations made under the Insurance Act. At this time, it is not a priority for Finance to have the Code of Conduct incorporated into regulation. If, in the future, it is contemplated that the Code of Conduct should become part of a regulation, IBAA and brokers would be consulted.

That all said, I strongly believe that as a profession, insurance brokers should be held to the highest standards. As such, I encourage all IBAA members to continue meeting and surpassing the Code of Conduct.

Review of the Automobile Insurance Reforms In fall 2011, Premier Redford agreed to review the Minor Injury Regulation.

As the Alberta Court of Appeal noted in the recent constitutional challenge to the Minor Injury Regulation, it is important not to consider any one component of the automobile insurance system in isolation as the system is carefully balanced. As such, Finance has been tasked to review all regulations under the 2004 auto insurance reforms with a view to make improvements in the system where appropriate, and to facilitate better education of the system among stakeholders and Albertans.

Finance expects to bring forward any recommendations to the government later this year.

I also welcome IBAA’s suggestions and ideas around engaging and educating everyone who participates in the auto insurance system.

Rising Cost of Property Insurance Over the past seven years or so, Alberta has been a hub for catastrophic disasters. The Insurance Bureau of Canada has reported that six out of ten of Canada’s largest natural disasters have taken place in Alberta, one of which being the devastating Slave Lake fires from one year ago.

The frequency and cost of property losses in Alberta is a challenge for property writers and a challenge for brokers dealing with clients affected by both the losses and the impact of the losses on consumers. This is an issue that my office is monitoring, and is considering how we can help industry and consumers understand the impact of such events.

In closing I want to reiterate my appreciation regarding the working relationship enjoyed by Finance and IBAA. I thank you for your participation in several important projects with my office and I look forward to your continued input regarding insurance issues.

If you have questions about these topics, please contact the Office of the Superintendent of Insurance by phone at (780) 422-1592 or by email at insurance@gov.ab.ca.

MARK PREFONTAINE Superintendent of Insurance, Alberta Finance insurance@gov.ab.ca

Did You Know...

David Beckham’s legs are insured for $35 million each? I would guess that many people

volunteer to inspect those before the policy is renewed!

The fall course schedule is available on the IBAA website www.ibaa.ca? You should

check out what is up and coming in your area today and register!

Every personal lines automobile insurance policy has some loss of use coverage built in? There is a waiting period

and the coverage is not as broad as you would get with an actual loss of use endorsement; but it is still there.

Alberta receives 2,330 hours of sunshine annually, the highest in Canada? It is

no wonder we have so many outdoor festivals and attractions.

Lloydminster is the only city in Canada to be found within two provinces? That

means two different types of auto insurance are sold in the city; both government and private.

Sources: Alberta Finance, AIRB, IBAA, Travel Alberta and Statistics Canada

The Alberta Broker August - September 2012

31

Who? What? Where? Darrell Verbonac

Broker News In news from Western Financial Group (WFG), Jeff Burke was appointed as the new president and CEO based out of its High River head office. Jeff was a senior vice president of Allstate Canada and was also with Allstate in the United States before that. Marvin Pawlivski, who was the WFG southern vice president, moved to Toronto to take a risk management position. On a sad note, Bill Rogers, who had worked in the Okotoks office and later as a vice president in High

32

River, passed away in late April. One of the real genuine people in the business, Bill lost a battle with cancer at the age of 65.

Best wishes to Les Mader who retired from HUB International in late May after 42 years in the insurance industry.

Les worked both as an underwriter and a broker during his career. HUB had a nice retirement party for him, which I was fortunate to attend. Les is an avid tennis player who plans to spend more time playing and teaching, as well as holidaying in Maui where he has a

The Alberta Broker August - September 2012

place. Les’s wife Dona was also in the industry and retired a few years ago.

Best wishes also to a couple people who are moving on from Calgary. Mary Commo retired from Topley Sanders Jepson and is moving back home to Nova Scotia, and Joanne Mathison is also heading back home, to Hamilton, Ontario, but will continue to work with Brokerlink.

Congratulations to Larry Costen on recently celebrating the 25th Anniversary of Costen & Associates. A real nice party was held at the Kensington

Legion, located next to the brokerage’s office with both insurance colleagues and customers present.

Brokerage Staff Changes • Colin Toole, who was with Northbridge Insurance in Vancouver, moved back to Calgary to join his mom and dad, Betti-Rae and Larry, at Toole Peet & Co. Colin worked in unde writing with Northbridge and made the move to learn the broker side of the business.

• At Sharp Insurance, new staff includes Kasumi Strobl, William Mason and Dallison Lower.

• New to BKI Risk Management is Angela Colabella, who was previously with Renfrew Insurance.

• Dennis Donison left Anthony Clark International and is now with A-WIN Insurance.

• Lindsay Scott is new at Rogers Insurance.

• Over at Western General Insurance, Tyler Mills joined the team, having

previously been with A.M. Luken Insurance & Financial.

• At Young & Haggis Insurance, Shauna Banner came on board from Costen & Associate.

• Jennifer Noble joined Costen’s office from State Farm.

• Jodi Hawkins is new at Aon. • After a hiatus away from the industry, Maureen Halpern returned to the insurance business with HUB International.

Company News • Sovereign General has added to its staff as Daniel Jackson, Will Nosen and Terri Truman from RSA, along with Cathy Chontosh.

• New at RSA is Pam Roach.

• Intact Insurance has two new executive appointments: Todd Klapak is the new vice president underwriting of commercial lines, and Darren Godfey is the new vice president underwriting of personal lines.

Claims News • Marja Welton, who was the Alberta regional vice president of Kernaghan Adjusters, left to join Rocky Cross North. She is replaced in that role by Russ Fitzgerald of Kernaghan’s Edmonton office, who remains based in the capital.

• In other news from Kernaghan, longtime adjuster Diana Tremblay joined its Calgary office.

• Crawford & Company appointed Randy Lim as a national account executive within its Calgary office.

DARRELL VERBONAC, FCIP, CRM Regional Business Development Manager Intact Insurance Company darrell.verbonac@intact.net

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Commercial Break Karen MacWilliam

Chain Reaction Identifying the Risks to Your Clients’ Supply Chains Many of us recoiled in horror at the devastation that resulted from the earthquake in Japan in early 2011. As with many disasters, our memories are fleeting and we forget the full toll of such events.

I was reminded in a direct way when I took my 12-year-old Toyota Corolla in for service at a dealership in Halifax, Nova Scotia, in November, 2011.

“I think I may be approaching the time for a new clutch,” I told the service manager.

“August would be a good time,” he said.

“I’m thinking of selling it way before then,” I said.

“No parts — 9 month lead time,” was his reply. “The earthquake in Japan has messed us up.”

Look around you at the beauty of Alberta — a mostly flat, landlocked province. Would you expect that an earthquake in Japan would impact the supply chain for your clients? Think again.

Contingent business interruption coverage is often overlooked and the

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risks are not properly identified. In fact, as I investigated the issue further with the Toyota dealership, I found that their broker had sold it profits coverage, extra expense coverage, and contingent business interruption coverage. Perfect. Not quite. The broker offered the standard “all risk” perils in Nova Scotia, which don’t include earthquake. Hmmm.

To trigger the coverage, the supplier, customer, or “magnet property” in question should be named on the policy, and the perils insured against have to be of the type sustained at the contingent facility. The broker did a good job, but failed to identify supply chain risks.

Earthquakes are common in Japan where Toyota parts originate. They’re not common in most parts of Canada, including Nova Scotia and Alberta.

Is it possible to get coverage for contingent business interruption risks that are excluded at the policyholder’s locations? Yes. But you need to discuss it with the underwriter.

The world, as Tom Friedman put it, is “hot, flat, and crowded.” This means that just-in-time inventory is real.

The Alberta Broker August - September 2012

He points out that 25% of American income tax returns are handled by H & R block — in Bangalore, India. What if a monsoon wipes out their offices? Can a business in Chicago, which sustains a related business interruption loss, insure against this?

Here are some suggestions for addressing contingent business interruption risks: 1. Understand your clients’ supply chains, customers, locations and make sure you examine not only the direct risks but also the indirect ones.

2. The perils insured against should be those directly facing your client and their customers and suppliers.

3. Business interruption risks include reductions in revenues AND increases in expenses. Even if your client is not profitable, they still may have an exposure to contingent extra expenses.

4. Review the risks associated with exclusive supplier relationships. My golfing partner ordered a Keith’s beer on the course. “We only serve Molson products,” was the response.

He grumbled, but managed to choke down another brand. It sent me into analysis mode, wondering if the golf course’s “exclusivity agreement” meant that the beer would dry up entirely if there was a production problem at Molson.

That represents a potential business interruption loss as golfers and beer always go well together.

customers’ supplies emanate and where their customers operate.

10. Get out the business interruption worksheet and look at contingent business interruption wordings.

Okay, do it with a nice strong coffee in your hand. Limits should contemplate the worst case scenario, not just a small problem. You don’t want the customer to run out of limit before they run out of claim.

And number 11? Support local merchants if you can. Less chance of a monsoon, typhoon or shipping problem. They need our business.

KAREN MacWILLIAM is an insurance and risk management consultant karen_macwilliam@telus.net

5. Assist your client with formal contingency planning. Their facility may be protected from loss to the extent possible, but if they can’t get inputs to production or their customers are out of business, there’s a big problem.

6. Understand lead times and the critical path. I worked on a construction project where some of the items had lead times of 18 to 24 months. It may mitigate a loss substantially if your client can buy their way to the front of the line.

Indemnity periods in business interruption policies need to be adequate.

7. Get comfy with marine cargo coverage if you haven’t before.

Many parts we use in North America come from Asia, meaning that to get to Alberta, ocean voyages are required. If the ship goes down, it is possible to get contingent business interruption coverage.

8. Encourage your clients to keep spare parts and adequate inventory on hand. I envision that one day, we won’t have retail stores, just distribution centres to which goods are shipped and redirected only after they’re ordered. No parts?

No production until they arrive.

9. Watch the news and the weather channel. You need to think about the stuff that happens where your The Alberta Broker August - September 2012

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Professional Development

Gain the knowledge you want, the skills (and credits) you need with the IBAA professional development fall lineup of seminars.

See page 40 for date, location and price.

Register and read further information at www.ibaa.ca.

Best Practices for Assessing Commercial Risk

Business Interruption 3 CE credits General, Adjusters, Life, Accident & Sickness Speaker: Brian Spiers

6 CE credits General, Adjusters Speaker: Jo Anne Mitchell • Gain the skills to assess and perform front-line underwriting of commercial lines risks. Identify exposures so that appropriate coverage proposals can be offered and loss control recommendations can be provided.

• See website for highlights.

• Develop methods of risk assessment and their benefits and drawbacks.

• Assess property, liability, and business interruption exposures.

• Examine the dos and don’ts when submitting commercial risks to the underwriter for quotations.

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The Alberta Broker August - September 2012

CSR Level 1 6 CE credits General, Adjusters Speaker: Karen Rutherford Improve your customer service effectiveness and efficiency.

Discussion will include the following topics: • Time management: five critical activities to save time, keep current, and gain satisfaction,

• Automation and agency management: make the system reduce your workload, • Customer service: develop a plan that leads easily to cross-selling and up-selling,

• Annual planning: teams, customer service and education.

E&O Commercial Lines 3 CE credits General, Adjusters Speakers: Karen Rutherford & TBD • The complication of commercial accounts affects the potential for oversight.

• Analyze common errors that lead to commercial E&O cases.

• Minimize your exposure to E&O claims by examining legal and professional responsibilities, as well as best business practices.

E&O Personal Lines 3 CE credits General, Adjusters Speakers: Karen Rutherford & TBD • Personal lines applications and renewals are simple, right? That perspective may be a trap. Learn from personal lines E&O cases.

• Minimize your exposure to E&O claims by examining legal and professional responsibilities, as well as best business practices.

Fraud

3 CE credits General, Adjusters Speaker: Brian Speirs

• The Insurance Bureau of Canada estimates that at least 15% of all insurance premiums go to pay fraudulent claims that cost private insurers about $5.4 billion annually.

• This seminar will highlight the areas in which insurance fraud is likely to occur and provide some real-life examples where fraud was suspected and provide vital information for loss adjusters, underwriters and brokers, all of whom can play a part in addressing the problem.

continued on page 38 The Alberta Broker August - September 2012

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continued from page 37

Politics 101 1 CE credits General, Adjusters Speaker: Rikki McBride • This complimentary one-hour session will focus on why meetings with politicians are important, how to book a meeting, and how to be the most effective in that meeting. • Group work will help participants develop effective meeting strategies. Join us to hear some thoughts from some politically active brokers and learn more about how your voice can be heard by the decision makers in our province and our country.

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The Alberta Broker August - September 2012

Miscellaneous Commercial Lines Coverages 6 CE credits General, Adjusters Speaker: Jo Anne Mitchell • Become a trusted advisor in commercial lines insurance: increase your closing ratio for new business and renewal retention and receive high-quality referrals.

• Whether you are an account manager or sales and service staff, establish yourself as the kind of person any buyer would want as a partner.

• Learn how to use consultative selling techniques, and practice them through role-playing, group exercises, and business case studies.

cally targeted to insurance brokers in both Commercial and Personal Lines.” - Sophie Hainer

• Attention CPIB students: This course fulfills the Sales Management elective common to all CPIB streams.

Sponsor:

• “The Professional Selling Course teaches a selling technique used by many sales professionals around the world but in a format specifi-

• Gain knowledge of several key commercial coverages including Business Interruption Insurance, Computer Equipment, Equipment Breakdown and Surety Bonds.

• Apply the theory learned to casestudy situations.

• Learn to prepare and use a flow chart of business processes to assess needs and explain insurance coverages to clients.

Sponsor:

Professional Selling for Insurance Brokers (PSIB) 24 CE credits General, Life, Accident & Sickness Speaker: Glenn White • IBAC’s Professional Selling course is based on validated sales competencies developed by the Canadian Professional Sales Association in conjunction with Human Resources and Skills Development Canada.

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IBAA Professional Development Fall 2012 Seminar Calendar Date and Time Location

Best Practices for Assessing Commercial Risk October 3, 8:45 a.m. to 4:15 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) Cost: Member $180.00 Associate Member $270.00 Non-Member $360.00

Business Interruption October 4, 1:00 p.m. to 4:15 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) October 11, 1:00 to 4:15 p.m.

Calgary - Blackfoot Inn, 5940 Blackfoot Trail SE Cost: Member $90.00 Associate Member $135.00 Non-Member $180.00

CSR Level 1 September 4, 8:45 a.m. to 4:15 p.m.

Calgary - Blackfoot Inn, 5940 Blackfoot Trail SE November 8, 8:45 a.m. to 4:15 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) Cost: Member $180.00 Associate Member $270.00 Non-Member $360.00

E&O Commercial Lines September 18, 1:00 to 4:15 p.m.

Grande Prairie - FirstOnSite Restoration, 15001 - 89 Street September 19, 1:00 to 4:15 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) October 9, 1:00 to 4:15 p.m.

Lethbridge - Lethbridge Lodge, 320 Scenic Drive October 10, 1:00 to 4:15 p.m.

Calgary - Blackfoot Inn, 5940 Blackfoot Trail SE Cost: Member $90.00 Associate Member $135.00 Non-Member $180.00

E&O Personal Lines September 18, 8:30 to 11:45 a.m.

Grande Prairie - FirstOnSite Restoration, 15001 - 89 Street September 19, 8:30 to 11:45 a.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) October 9, 8:30 to 11:45 a.m.

Lethbridge - Lethbridge Lodge, 320 Scenic Drive October 10, 8:30 to 11:45 a.m.

Calgary - Blackfoot Inn, 5940 Blackfoot Trail SE Cost: Member $90.00 Associate Member $135.00 Non-Member $180.00

Fraud October 4, 8:30 to 11:45 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) October 11, 8:30 to 11:45 p.m.

Calgary - Blackfoot Inn, 5940 Blackfoot Trail SE Cost: Member $90.00 Associate Member $135.00 Non-Member $180.00

Miscellaneous Commercial Lines Coverages September 25, 9:00 a.m. to 4:30 p.m.

Lethbridge - Lethbridge Lodge, 320 Scenic Drive September 26, 9:00 a.m. to 4:30 p.m.

Calgary - Blackfoot Inn, 5940 Blackfoot Trail SE September 27, 9:00 a.m. to 4:30 p.m.

Red Deer - Red Deer Lodge, 4311–49 Avenue October 2, 9:00 a.m. to 4:30 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) Cost: Member $180.00 Associate Member $270.00 Non-Member $360.00

Politics 101 September 24, 12:00 to 1:00 p.m.

September 24, 6:00 to 7:00 p.m.

September 25, 12:00 to 1:00 p.m.

September 25, 6:00 to 7:00 p.m.

September 26, 6:00 to 7:00 p.m.

September 27, 6:00 to 7:00 p.m.

October 1, 6:00 to 7:00 p.m.

October 4, 6:00 to 7:00 p.m.

October 10, 6:00 to 7:00 p.m.

Cost: FREE TO MEMBERS ONLY!

Red Deer Calgary East Central Medicine Hat Lethbridge North East Grande Prairie Yellowhead Edmonton

Professional Selling for Insurance Brokers (PSIB - Certification Course) October 23-25, 8:30 a.m. to 4:30 p.m.

Edmonton - IBAA Learning Centre, 3010 Calgary Trail NW (southbound) Cost: Member $775.00 Associate Member $1,162.00 Non-Member $1,550.00

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The Alberta Broker August - September 2012

Getting Started in Commercial Lines — Webinar Series 2 CE credits per module (8 credits for all 4 modules) General, Adjusters Speaker: Jo Anne Mitchell

Make the transition to commercial lines as quickly and smoothly as possible. Together, these four modules examine the basic foundation of commercial property and liability coverages, from the CSIO Commercial Application form to commercial risk assessment. With the help of case studies, apply the theory learned right away. Build confidence in explaining commercial coverages to clients.

Take advantage of the discount and the solid grounding available by registering for all four modules.

You can also register for individual modules.

Insuring Home Based Businesses 2 CE credits General, Adjusters, Life, Accident & Sickness Speaker: Jo Anne Mitchell

Home-based businesses are a growing trend. The insurance needs of home-based businesses vary widely. Some require only minor amendments to the personal lines residential policy; others require full-scale commercial lines policies.

Examine the exposures to property and liability losses for the insured and for the insurance company, the basic coverage for business property and third-party liability provided by the residential package policy, the use of a survey to assess the risks, and the methods of insuring homebased businesses.

Personal Umbrella Liability 2 CE credits General, Adjusters, Life, Accident & Sickness Speaker: Jo Anne Mitchell

The frequency and size of thirdparty liability awards has increased dramatically in Canada over the past ten years. Many brokerage clients own recreational properties and motorized recreational vehicles, travel outside of Canada, and serve as volunteers, officers, or directors with non-profit organizations.

Learn how a Personal Umbrella Liability policy (vs. an Excess Liability policy) can enhance your client’s third-party liability protection in a comprehensive and cost-effective manner.

Getting Started in Commercial Lines – Webinar Series Module Date and Time 1. Commercial Risk Assessment Including CSIO Commercial Application November 20, 2:00 to 4:15 p.m.

2. Commercial Building Construction, Property Protection Systems November 22, 2:00 to 4:15 p.m.

3. Commercial Property Insurance November 27, 2:00 to 4:15 p.m.

4. Commercial General Liability November 29, 2:00 to 4:15 p.m.

Cost: Full Series Discount (all 4 webinars) Member $299.00 Associate Member $448.50 Non-Member $598.00 Per webinar cost: Member $85.00 Associate Member $127.50 Non-Member $170.00

Insuring Home-based Businesses Date and Time October 23, 2:00 to 4:15 p.m.

Cost: Member $75.00

Associate Member $112.50

Non-Member $150.00

Cost: Member $75.00

Associate Member $112.50

Non-Member $150.00

Personal Umbrella Liability Date and Time August 28, 2:00 to 4:15 p.m.

The Alberta Broker August - September 2012

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PYIB Perspective Caleb Maksymchuk, BA., B.Ed.

My Mentor and Me Four short years ago I had the great pleasure to join the firm of Ravenhill Agencies Ltd. After a career in education, I decided to make a switch. Joining Ravenhill Agencies and the insurance industry has been the second-best choice I have ever made; the first being asking my wife Jen to marry me. I love being a broker and all that comes with the career. I thrive for the client interactions, ironing out claims situations and thinking outside the box on new risks.

I do not think it would have been this way had it not been for the mentorship relationship that I have with Jim Harris.

He is my boss, mentor, father in-law and a huge part of my life.

Many know Jim Harris is in the room due to his recognizable laugh, but it is not all fun and games for Jim. When it comes down to the business of insurance, there are few more highly spoken of than Jim. When I started in the business, he said, “There is only one way to learn the business and that is to jump into the fire with both feet.” That’s what I did. I completed my level one and two licensing back-to-back and completed CAIB one, two and three as well. I began by learning the basics in personal lines and dabbling in commercial lines and am now well versed in both lines. We work together, maintaining mutual respect and trust for each other. I am never worried or scared to come to him with a question or more importantly a mistake.

Similarly, he will ask me to look at various interesting risks and tell me when I screwed up. Do not expect everything you do to be great and wonderful and anticipate hearing “Great job!” every time you do something. Be malleable and willing to accept feedback.

Jim constantly allows me to spread my wings and get deeper into the insurance world. So when I came to him and told him that I had been nominated for a position with PYIB, he said one of his famous terms “Absolutely!” in the fashion that only he can deliver. He is the first person to stand up and say what great things the PYIB is doing, what an

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asset it is to the industry and how more young brokers should be allowed to get involved in the association. Through the PYIB I got to know many other young brokers and key individuals in the industry. These relationships have provided other facets of mentoring knowledge and career paths. Everyone has come to this industry by their own conduit; what you make of your time in the industry is up to you.

If you do not have a mentor now, find one. Their knowledge and connection to the industry is invaluable. Ask if it would be all right to be mentored by that individual; do not expect or feel entitled to be mentored. Mentoring does not mean being spoon fed. You are in the driver’s seat of your career; the mentor is not meant to be the cruise control but the map to get you to your destination.

Mentors are usually senior people in the industry and have lots on their plate.

Being a mentor may not be their first concern. At first, I think I was in Jim’s office every two hours bothering him with mundane items. With a little less worrying about messing up and a little research or extra thought into it, I persevered and found my own answer. Don’t

The Alberta Broker August - September 2012

Jim Harris and Caleb Maksymchuk

expect too much from your mentor or you will be disappointed. Maybe seeking advice from a second or third avenue of knowledge will help your experience and gain insight from different fields of expertise.

Jim can’t be in every office, but I am sure glad to be part of his growing business. Jim not only makes the job fun and a place I want to come to work each day but also he encourages forward thinking, embraces technology and brings an energy that is second to none. I look forward to continuing my career in the industry under the eye of Jim Harris and to hopefully be able to provide the same qualities to another young broker like me one day.

CALEB MAKSYMCHUK B A, B.Ed. PYIB Director cmaksymchuk@ravenhillagencies.com