Workers' Comp Report with Directory; Restaurants & Bars; Recreation & Leisure by Insurance Journal

MAY 20, 2013 | Vol. 91, No. 10

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Closer Look: Restaurants & Bars Spotlight: Recreation & Leisure Rusbuldt on Agent Licensing

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Agriculture I Annuities I Construction I Environmental I Equine I Excess & Umbrella I Executive Liability Fidelity / Crime I Financial Institutions I Non-Profits I Ocean Marine I Transportation I Workers’ Compensation

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Inside This Issue

22 On The Cover

Special Report: Workers’ Comp Opioid Epidemic

May 20, 2013 • Vol. 91, No. 10

NATIONAL COVERAGE

Idea exchange

8 Positive Signs Ahead for Workers’ Comp Line, NCCI’s Chief Economist Says

20 Growing Your Property Casualty Agency: Shulman

10 Risk Retention Groups Continue to Display Financial Stability

38 Closing Quote: Rusbuldt on Licensing Reform

14 Medical Malpractice Payouts Not Driving Up Health Costs: Study 16 Closer Look: Pearsall on Restaurants & Taverns 18 Spotlight: Recreation & Leisure

Special Section: Regional Coverage

22 Special Report: Opioid Epidemic Plagues Workers’ Comp 28 2013 Workers’ Compensation Directory

DEPARTMENTS 6 12 12 15 26 4 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

Opening Note Declarations Figures Business Moves MyNewMarkets www.insurancejournal.com

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Opening Note Drowsy Driving

ou’ve been there. The midnight call from an important client that just experienced a devastating loss. Or the sick child who kept you up until wee hours of the morning. Or maybe it was just a late evening at your local insurance conference. Driving while drowsy — we’ve all been there. But drowsy driving is a risk that most cannot afford to take. You may make it safely to your desired destination, but for some, the consequences are disastrous. More than 11,000 deaths were attributed to drowsy driving from 2000 to 2010, according to federal statistics. And experts say it’s a problem that can’t easily be solved by new laws because proving sleepiness behind the wheel is difficult, if not impossible. Quantifying drowsy driving is not an exact science. When it comes to workers behind the wheel, laws banning commercial truck and motor coach operators from driving more than 11 hours a day and requiring 10 hours between shifts are flawed because they often rely on drivers reporting those hours themselves. In a drowsy driving case late Four percent of U.S. last year, a tour bus driver was acquitted of manslaughter and adults nodded off or fell negligent homicide in a 2011 asleep at least once while Bronx, N.Y., crash that killed 15 people. A jury rejected prosecudriving in the previous tors’ arguments that Ophadell month. Williams was so sleep-deprived from working another job that it affected his reflexes as much as if he was intoxicated. “If you are going to try and make fatigue — sleepiness — a criminal legal issue in a motor vehicle accident, you have a lot, lot more to prove,” said Patrick Bruno, who defended Williams, the Associated Press reported. New Jersey is the only state that has successfully passed legislation addressing drowsy driving. But “Maggie’s Law” doesn’t really solve the problem because prosecutors must show that a driver had been awake for 24 consecutive hours to prove possible recklessness. Experts claim there’s no easy way to legislate against sleepiness and that the real problem lies in the culture of most Americans. Mark Rosekind, a National Transportation Safety Board member who formerly directed a sleep research center at Stanford University, says it’s a pervasive problem that requires a culture change. The Centers for Disease Control and Prevention released a study this year that found 4 percent of U.S. adults nodded off or fell asleep at least once while driving in the previous month. “For some reason, people in our culture think it’s OK to lose sleep and get behind the wheel,” Rosekind said. “It’s just as bad as drinking and driving. As far as public awareness, drowsy driving is in the dark ages compared to that, but it’s just as dangerous.” Andrea Wells Editor-in-Chief

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EDITORIAL

Editor-in-Chief Andrea Wells | awells@insurancejournal.com V.P. Content Andrew Simpson | asimpson@insurancejournal.com East Editor Young Ha | yha@insurancejournal.com Southeast Editor Michael Adams | madams@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor Charles E. Boyle | cboyle@insurancejournal.com Senior Editor Susanne Sclafane | ssclafane@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com MyNewMarkets.com Associate Editor Amy O’Connor | aoconnor@mynewmarkets.com Columnists Curtis Pearsall, Alan Shulman Contributing Writers Rob Mulhern, Robert Rusbuldt

SALES

V.P. Sales & Marketing Julie Tinney (800) 897-9965 x148 jtinney@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 dkaplan@insurancejournal.com South Central Mindy Trammell (800) 897-9965 x149 mtrammell@insurancejournal.com Midwest Lauren Knapp (800) 897-9965 x161 lknapp@insurancejournal.com Southeast Howard Simkin (800) 897-9965 x162 hsimkin@insurancejournal.com East Dave Molchan (800) 897-9965 x145 dmolchan@insurancejournal.com New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale (800) 897-9965 x125 Ly Nguyen | lnguyen@insurancejournal.com

M ARKETING / NE W M EDIA

Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns | eburns@insurancejournal.com (619) 584-1100 x120 New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Matt Tolk | mtolk@insurancejournal.com

DESIGN / W E B

Vice President/Design Guy Boccia | gboccia@insurancejournal.com Vice President/Technology Joshua Carlson | jcarlson@insurancejournal.com Design and Marketing Executive Derence Walk | dwalk@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com

I J A C ADE M Y OF INSURAN C E

Director of Education Christopher J. Boggs | cboggs@ijacademy.com Online Training Coordinator Barbara Whiffen | bwhiffen@ijacademy.com

AD M INISTRATION

Chairman Mark Wells Chief Executive Officer Mitch Dunford Accounting Manager Megan Sinclair | msinclair@insurancejournal.com

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News & Markets Industry Results Show Positive Signs for Workers’ Comp Line, NCCI’s Chief Economist Says

or the workers’ compensation market, 2012 turned out to be a much better year than 2011, according to NCCI’s Chief Economist Harry Shuford. As the National Council on Compensation Insurance prepared for the release of its State of the Line report in May, Shuford shared a few thoughts with Insurance Journal’s Andrea Wells on what’s driving change — both good and bad — in workers’ compensation today as well as what might be in store for the future of workers’ comp. Workers’ comp premiums are up. What’s driving that growth and do you expect better times ahead? Harry Shuford: We are seeing encouraging signs in the numbers. There seem to be two key drivers. One is economic growth; there are more people to be insured, which puts upward pressure on premium. But we are also seeing modest tightening in underwriting standards. It shows up in two ways. We are seeing that the departures from actual premium rates from filed rates are a bit smaller than they had been in the past. So it’s not that the industry is charging NCCI filed rates but they are a little bit closer to what we have filed. Also our filed rates are up very slightly. … The underwriting performance of the industry, while still not good, is not as bad as it has been over the last two to three years. How will the Patient’s Protection and Affordable Care Act impact workers’ comp? Shuford:Right now anything that we talk about is speculation. It’s speculation for two reasons: first of all it’s not actu-

ally clear yet what this thing is going to look like once it’s largely implemented. … The most significant implications, at least in my mind, (will be the) change in the way providers are compensated, moving from the fee-for-service to something that is more focused on outcomes, pay-for-performance. … If successful that should do some things to reduce the rate of increase in cost and that will undoubtedly get adopted by workers’ comp. What role do you see physician dispensed drugs and the rising cost of opioids playing in the workers comp system? Shuford: These are my personal comments, but my sense is that in terms of physician dispensed drugs or repackaged drugs, the total cost is relatively small. But the fact that it allows certain providers to “game” the workers comp system really undermines the integrity of the system. While the direct costs are certainly of concern, I think that if left unchecked it could become a destabilizing element in the workers comp system and that’s an even greater concern. It needs to be addressed. … With respect to opioids, there’s a different kind of concern there. The direct cost of opioids is relatively small. ... The direct cost of opioids is about 2 percent of total workers’ comp benefits (medical and indemnity claim costs, combined). That’s a crude number but it’s relatively small. But that’s not the real concern. The real concern is what does it do to the patient and their family? It’s not the direct cost of the opioid; it’s the fact that when it leads to abuse it leads to an enormous range of complications which drives up the overall cost of the claim.

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What other areas does the NCCI believe might challenge the workers’ comp line? Shuford: The residual market in workers’ comp remains quite small but it is growing. And it seems like more of that growth is coming from areas that historically have been deemed lower risk. It’s coming from lower hazard groups. … The other source of concern over the longer term, the next three to four years, is what’s happening in financial markets. … We are concerned we are going to see downward pressure on investment income over the next two to three years in the insurance industry, particularly if the Federal Reserve has to continue this aggressive monetary policy because of the slow recovery. As you prepare to release the NCCI annual State of the Line report, are you anticipating better overall results for the workers’ comp line for 2012 compared to 2011? Shuford: Oh yes, this year does seem to be better than the year before. I was looking at last year’s State of the Line and I noticed that for the last three years the operating gain, which basically measures the overall profitability in workers’ compensation, has basically been zero for three years in a row. Basically investment income has been just sufficient enough to cover underwriting losses and there was nothing left over. This year our primarily numbers show there is some positive return due primarily from the improvement in underwriting results. The combined ratio and the loss ratio are down but the investment results are relatively unchanged, which means that you move from a zero to a modest positive number … and that’s all due to improvement in underwriting results. www.insurancejournal.com

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News & Markets Risk Retention Groups Show Strong Financial Stability: Demotech

isk retention groups (RRGs) continue to display strong and stable results, according to a recent analysis of year-end 2012 financial information. Demotech Inc., a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers, analyzed the reported financial results of RRGs and made the following observations in a new report titled, “Analysis of Risk Retention Groups — Year-End 2012.” Assets and policyholders surplus have continued to increase at a faster rate than liabilities. Since 2008, cash and invested assets have increased 40.5 percent and total admitted assets have increased 33.9 percent. Over a five-year period from 2008 through 2012, RRGs have collectively increased policyholders’ surplus 71.5 percent. This increase represents the addition of more than $1.4 billion to policyholders’ surplus. During this same time period, liabilities increased only 13.7 percent, slightly more than $500 million. The cash and invested assets to loss and loss adjustment expense (LAE) reserves ratio for year-end 2012 was 236.9 percent and indicates an improvement over 2011, as this ratio was 214 per-

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cent. These results indicate that RRGs remain conservative in terms of liquidity. Leverage, as measured by total liabilities to policyholders’ surplus, for year-end 2012 was 123.3 percent. This indicates an improvement for RRGs collectively as leverage was reported at 138.4 percent at year-end 2011. The loss and loss adjustment expense (LAE) reserves to policyholders’ surplus ratio for year-end 2012 was 79.7 percent and indicates an improvement over 2011, as this ratio was 93 percent, Demotech said. The higher the multiple of loss reserves to surplus, the more an insurer’s stability is dependent on having and maintaining reserve adequacy. RRG Premiums RRGs collectively reported $2.6 billion of direct premium written (DPW) at year-end 2012, an increase of nearly 5 percent over 2011. RRGs collectively reported $1.3 billion of net premium written (NPW) at year-end 2012, an increase of 3.7 percent over 2011. The DPW to policyholders’ surplus ratio for RRGs collectively for year-end 2012 was 74.3 percent and indicates an improvement over 2011, as this ratio was 78.1 percent. The NPW to policyholders’ surplus ratio for RRGs collectively for year-end 2012 was 36.6 percent and indicates an improvement over 2011, as this ratio was 38.9 percent.

RRGs reported an aggregate underwriting gain for 2012 of nearly $181 million, an increase of 19.7 percent over the prior year, and a net investment gain of nearly $221 million, an increase of 6.7 percent over the prior year. RRGs collectively reported net income of over $324 million, an increase of 8.6 percent over the prior year. The combined ratio, as measured by loss ratio plus expense ratio, for yearend 2012 was 84.5 percent and indicates an improvement over 2011, as the combined ratio was reported at 87.6 percent. This ratio measurers an insurer’s overall underwriting profitability. The one-year loss development to prior year’s policyholders’ surplus for 2012 was -7.2 percent and indicates an improvement over 2011, as this ratio was reported at -6 percent. The two-year loss development to second prior yearend policyholders’ surplus for 2012 was -12.2 percent and indicates a diminishment over 2011, as this ratio was reported at -14.1 percent. “In looking further, RRGs have collectively reported an underwriting gain at each year-end since 2004. Equally as important, RRGs have collectively reported a net income at each year-end since 1996. The year-end results of RRGs indicate that these specialty insurers continue to exhibit financial stability.” To read the report, visit: www. demotech.com.

www.insurancejournal.com 3/15/13 11:20 AM

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Declarations Dispute Resolution

Immigrant Licenses

No Actual Knowledge

“This program represents another option consumers have to resolve disputes with their insurance companies.” — N.J. Department of Banking and Insurance Commissioner Ken Kobylowski on the state’s Superstorm Sandy dispute-resolution program that began on May 1. New Jersey residents with still-unresolved non-flood insurance claims related to Sandy can have their cases mediated through the American Arbitration Association.

“It does encourage a way into the daylight for honest workers, for safer highways. And, in my view, it leverages some of the good guys to get better.” — Republican Rep. Vic Gilliam said he supports a bill to enable immigrants living in Oregon without legal permission to get four-year driver’s licenses starting January 1, because it addresses the reality that there are thousands of immigrants living and working in the state without legal permission.

“TDI does not have actual knowledge of the existence of or details regarding any liability insurance coverage.” — Texas Insurance Commissioner Eleanor Kitzman responds to questions about the amount of liability insurance carried by West Fertilizer Co. after its facility in West, Texas, exploded, killing 14 people and causing an estimated $100 million in property damage. The company’s liability policy reportedly has a limit of $1 million.

Drug Sales

Would a Headstand Work?

“I can get a prescription that costs 37 cents a pill, but then I can sell it on the street for about $8 a pill.” — Tennessee Sheriff’s Chief Inspector Wayne Goudy on prescription drug abuse in the state.

“If there’s any way we can get to an agreement, I would stand on my head to do that at this point for the people in Missouri, as well as the doctors.” — Missouri Sen. Dan Brown, R-Rolla, after negotiations that would reinstate Missouri’s cap on noneconomic damages in medical malpractice lawsuits stalled in the Senate. The state Supreme Court ruled last year that a previous law limiting such damages to $350,000 violated the constitutional right to a jury trial.

Figures

$25,000

$215

$20 Million

The amount that the original ledger page of Titanic’s insurance policy was sold for, at an auction in New York. The ledger page that belonged to Atlantic Mutual Insurance states that the Titanic was “on risk” with the company from March 30, 1912, to March 30, 1913. The ill-fated Titanic sank on April 15, 1912, on its maiden voyage from Southampton in England to New York, causing the loss of more than 1,500 lives.

The cost recently approved by the Detroit City Council for recovering a towed vehicle, up from the previous cost of $75, but lower than the rate in many major U.S. cities, according to Detroit officials. There’s also a $15 storage fee for each 24-hour period any vehicle remains impounded.

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The proposed cost of a supplemental concussion insurance policy for children who play certain sports in public schools under a bill passed by the Texas House. A public school pilot program would allow parents to purchase the insurance for boys who play football and girls who play soccer. Private companies would underwrite the policies administered by the University Interscholastic League and the Texas Education Agency.

The amount Florida workers’ compensation insurers could save under a new cap on payments for physician-dispensed drugs passed by lawmakers.

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News & Markets Medical Malpractice Payouts Not Driving Up Health Costs: Study

fforts to lower health care costs in the United States have focused at times on demands to reform the medical malpractice system, with some researchers asserting that large, headline-grabbing and “frivolous” payouts are among the heaviest drains on health care resources. But a review of malpractice claims by Johns Hopkins researchers suggests such assertions are wrong. In their review of malpractice payouts of more than $1 million, researchers said those payments added up to about $1.4 billion a year — far less than 1 percent of national medical expenditures. “The notion that frivolous claims are routinely resulting in $100 million payouts is not true,” said study leader Dr. Marty Makary, associate professor of surgery and health policy at Johns Hopkins University School of Medicine. “The real problem is that far too many tests and procedures are being performed in the name of defensive medicine, as physicians fear they could be sued if they don’t order them. That costs upward of $60 billion a year. It is not the payouts that are bankrupting the

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total claims paid during that period. system — it’s the fear of them.” The most common allegations Called catastrophic claims, payouts associated with a catastrophic payout of more than $1 million are more likely were diagnosis-related (34.2 percent), to occur when a patient who is killed obstetrics-related (21.8 percent) and or injured is under the age of 1; develops surgery-related (17.8 percent). Errors quadriplegia, brain damage or the need in diagnosis showed twice the odds of for lifelong care as a result of malpraca catastrophic payout compared with tice; or when the claim results from a equipment- or prodproblem related to anesthesia, researchers found It is not malpractice uct-related errors, were associated in a study published claims payouts that and with about an $83,000 online in the Journal for Healthcare Quality. are bankrupting the larger payment. The age of the Makary and his system — it’s the physician was unrecolleagues reviewed lated to the likelinationwide medical fear of them. hood of a claim, sugmalpractice claims using gesting inexperience is not necessarily the National Practitioner Data Bank, an a factor. But 37 percent of catastrophic electronic repository of all malpractice payouts involved a physician with a presettlements or judgments since 1986. vious claim in the database. The largest They looked at data from 2004 to 2010, payout in the study was $31 million. choosing a 2004 start date because that Makary said the data suggest that the is when data on the age and gender of focus of legal reform efforts should be patients, and severity of injury became on doctor protections aimed at reducing available for the first time. The infordefensive medicine rather than the cremation includes only payments made ation of malpractice caps. on behalf of individual providers, not He said his findings argue for more hospitals or other corporations, meaning research to determine what interventhe number of payouts may be underestions might prevent the type of errors timated by 20 percent, Makary said. that result in catastrophic payouts, with During that period, 77,621 claims were the goal of improving patient safety and paid, and catastrophic claims made up reducing costs at the same time. 7.9 percent (6,130 payouts). The seven Real cost reductions, he said, will year nationwide total of catastrophic come from reducing the overuse of diagpayouts was $9.8 billion, representing nostic tests and procedures. 36.2 percent of the $27 billion worth of

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Business Moves Confie Seguros, Capital Insurance Hispanic market-focused insurance agency network Confie Seguros acquired Capital Insurance Agency of Trenton, N.J. Capital Insurance has been in business since 1935 and specializes in personal insurance lines, as well as commercial insurance. Confie Seguros CEO Joe Waked said the latest acquisition would help strengthen the company’s focus on New Jersey and the surrounding region. Confie Seguros also recently added Jayla Insurance Agency as a fold-in acquisition for its Paterson, N.J. office. Confie Seguros said it has acquired four firms thus far in 2013 and that it expects to complete more transactions. Established in 2008, Confie Seguros is a California-based national insurance distribution company focused on the insurance needs of Hispanic consumers. Univest, John T. Fretz Insurance Univest Corp. of Pennsylvania and its insurance subsidiary, Univest Insurance Inc., acquired John T. Fretz Insurance Agency Inc. John T. Fretz Insurance Agency has been a family owned and operated property/casualty insurance agency since 1935, with offices in Souderton and Lansdale, Pa. Univest said the acquisition expands the company’s insurance business and market share in its primary service area of Montgomery County, Pa. John T. Fretz Insurance Agency employees will join Univest and will be located in Univest Insurance’s Lansdale office and in a new location expected to open in Souderton later this summer. The acquired firm will operate under the name Univest Insurance Inc.

ance for the south Florida real estate market. The agency is led by Alan Chesler and James Hartman and provides property/ casualty insurance to building owners, condominium associations, and homeowners associations throughout south Florida. Alan James employees and operations will continue to operate from their existing location in Sunrise, Fla. Headquartered in Lake Mary, Fla., AssuredPartners Inc. is a company of Chicago-based private equity firm GTCR. Keystone Insurers Group Property and casualty insurance franchisor, Keystone Insurers Group, will begin adding partner agencies in Illinois during the fourth quarter of 2013. Illinois will become the ninth state represented in the

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AssuredPartners, Alan James Insurance AssuredPartners of Florida has acquired the assets of Alan James Insurance, a Ft. Lauderdale, Fla.-based insurance broker specializing in insurwww.insurancejournal.com

Keystone group of independent agencies. Initially Keystone will add about 10 Illinois agencies as franchise partners. All will continue to operate as independently owned agencies, retaining their names but operating under the Keystone umbrella.

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NATIONAL COVERAGE

Closer Look: Restaurants & Bars E&O Insights: Restaurant and Tavern Risks By Curtis M. Pearsall

hances are just about every town in the United States has a restaurant, tavern or pizza parlor. Pursuing this type of risk, then, is common. Yet before taking that first step, do your homework to help you understand that these risks have some unique exposures that must be properly addressed. History has shown that failing to do this has been a significant reason why this class of business generates many errors and omissions (E&O) claims. One thing is certain: no two of these risks are alike. Each presents somewhat similar, yet often different, and unique, exposures. Whether looking at a five-star restaurant, a café or diner, coffeehouse, sports bar, martini bar, pizza parlor, sub shop or neighborhood tavern, understanding the exposures each presents helps to ensure the proper job has been done from an E&O standpoint. In many situations, the market/ carrier-to-be you use will depend largely upon the risk, its exposures and its experience. Based on the characteristics of each risk within this class, the excess and surplus lines market could be your only choice. If that’s the case, there are a host of additional issues to keep in mind.

Be Prepared As with most commercial risks, a great place to start to truly understand the “ins and outs” of a risk is by accessing the information within your exposure analysis checklists. These checklists provide solid information and insight, along with a questionnaire detailing the pertinent questions to ask by line of business, including: • Does the risk make deliveries? • If so, do the employees use their own vehicles? • Do they provide valet service? • What is the level of their security?

• What is the liquor liability exposure? Being prepared for the meeting with your prospect will help make it more productive and help you understand the exposures much clearer. Most agents will have carriers willing to entertain these more upscale/familyoriented risks. However, it is best to try to identify markets that include these types of risks among their specialties. Typically, based on a carrier’s experience and appetite, the product offering will be more comprehensive — including coverages such as guests’ property, fine arts, off-premises sign coverage, accounts receivable and a broad crime offering. In addition, because business interruption is an important issue for these risks, this exposure should be reviewed and underwritten.

by endorsement. Even if assault and battery coverage is provided, reviewing the extent of coverage with your client is suggested, so the client can see what protection is provided and any limitations. A common limitation in the assault and battery form will likely limit the coverage to only “on premises” or “only assault by employees,” etc. When it comes to this coverage — or any others, for that matter — document all discussions with your client.

Workers’ Comp Pizza parlors also have generated Assault & Battery more than their fair share of E&O For risks, such as a tavern exposure, claims. Two of the more common issues whose only option is the E&S market, with pizza parlors and sub shops deal coverage will usually be more basic, with workers’ compensation and the without the same degree of “bells and non-owner auto exposure. whistles.” A common E&O claim with The following E&O claim involves taverns involves the workers’ compensation assault and batexposure: A common E&O tery coverage or, The loss surrounds claim with taverns a question of whether a more precisely, the lack of it. who owed a pizza involves assault and client Physical fights shop told the agent have been known battery coverage or, whether he wanted workto occur with compensation coverage more precisely, the ers’ some risks within for himself. The agent this class. Without lack of it. initially said the client did this coverage, your not want to insure himself. client could be on the hook. The business owner was robbed, shot Typically, assault and battery coverand killed at the shop. The widow age is included in the general liability made a workers’ compensation claim, form, but may potentially be excluded which was denied, because coverage

16 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

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for the owner was not requested. It was later determined that the agent, not the client, signed the application. No details or documentation involving whether the shop owner was asked about workers’ compensation coverage were ever discovered. The claim was settled for $145,000. For most risks, the workers’ compensation issue needs to be discussed with the prospect. Based on the structure of the organization, it would be appropriate to ask if the owner wants coverage for himself or herself — and then be certain that the owner makes the decision. Document these discussions in the agency file and through written communication with the client to ensure there is no misunderstanding.

Don’t Assume There have also been many E&O claims involving pizza parlors where the business

lacked non-owned auto coverage. In some instances where an employee was involved in a bad accident and the employee’s limits were insufficient, the business faced a significant uninsured exposure and then sued the agent for this lack of non-owned auto coverage. As the agent, don’t assume you know the actual exposures — ask the key questions and document the answers. If the specific coverage you are trying to secure is unavailable, which is a possibility, promptly advise the client, and then document these discussions. As with any risk, check the policy when you receive it from the carrier to ensure it reflects the coverages that were requested. Then, when mailing the policy, include a cover letter advising your client to read the policy completely and to contact the agency right away with any questions, concerns or

necessary corrections. If delivering the policy personally, it is still best to include the letter and bring it to the client’s attention. If you need to insure the risk in the E&S market, don’t assume the coverage will be the same as the admitted market. A general liability policy in the E&S market may contain different endorsements or exclusions not typical in the admitted market. In this class of business, no two risks are alike. Enhancing your knowledge of this industry and your client’s exposures can significantly reduce the potential of your agency facing an E&O headache. Pearsall is president of Pearsall Associates Inc., a risk management consulting firm specializing helping agents protect themselves. He is also a special consultant to the Utica National Agents E&O program. Phone: 315-768- 1534. Email: curtis@pearsallassociates.com. Blog: www. agentseotips.com.

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May 20, 2013 INSURANCE JOURNAL-NATIONAL REGION | 17

SPOTLIGHT

Recreation & Leisure Golf and Country Clubs Weather the Storm

now in October, hurricanes in the Northeast and record-setting “derechos” in the Ohio Valley and MidAtlantic regions are a sampling of the unusual weather that is changing the way insurance carriers evaluate property risks for golf and country clubs. Golf and country clubs still whet the underwriting appetite of carriers, but expanding property-catastrophe (CAT) zones are affecting availability and terms of coverage. Agents By Rob Mulhern and brokers writing clubs should understand these changes, as well as the steps they can take to mitigate risks and provide accounts with the most favorable terms.

— widespread, long-lived, straightline windstorms associated with a fastmoving band of severe thunderstorms — including the highest recorded June or July wind gusts at several sites along its path. Five million people lost power from Chicago to the midAtlantic coast, and 22 were killed. The Midwest and Southeast faced the largest tornado outbreak ever recorded, including four tornados in Alabama in a two-week period. The following month, Joplin, Mo., was leveled. In Texas, windstorms and hail moved inland, bringing down trees, tearing up greens and causing some risk models and carriers to call the entire state a “CAT state.”

It’s Not Just About Sandy Four significant weather events have affected clubs in the Northeast and MidAtlantic regions in the past two years. A snowstorm in March 2011 brought down Risk Models Expand CAT Zones trees on courses across the region, fol As once-random weather events lowed by Hurricane Irene, which made have become the norm, risk models are landfall in North Carolina, Little Egg being revised to account for the extreme Inlet, N.J., and New York City. The 2011 weather patterns and are expanding “Halloween Nor’easter” piled snow on their definition of CAT zones. At golf trees with leaves, causing a high number and country clubs, downed trees and of downed trees and branches. branches have caused the bulk of the A year later, Superstorm Sandy caused damage, causing a significant increase in an estimated $25 billion in insured claims for trees and debris removal. losses. The storm has forced insurers Trees aren’t the whole story, though. to reconsider their catastrophe expoHail can accompany windstorms, with sures in the Northeast, according to the one Texas April 2013 “State of the Market” report Agents and brokers writing course reporting as many as published by NAPCO clubs accounts this year 4,000 divots on LLC, a property should evaluate coverage its 18 greens, as catastrophe specialit prepared for ist. The report notes from multiple markets. a PGA tournathat catastrophe ment. Sandy caused flooding on coastal models, risk assessments and pricing in courses in New Jersey, Long Island and these regions will become more in line Connecticut, damaging club buildings with practices in the Southeast region. throughout these areas. Some clubs have Meanwhile, the Ohio Valley and Midnot reopened. Atlantic in June weathered derechos 18 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

As we moved into 2013, some of the largest providers of club insurance, which were offering full tee to green coverage with limits of $1 million to $2 million, now are sub-limiting tree debris cleanup and removal with much lower limits. For clubs in locations being classified as CAT zones, the impact on property rates is more severe. While property rates are going up 10 percent to 15 percent in many areas, these increases have been tempered by the popularity of the golf and country club industry among carriers. Ample capacity has softened the impact on price compared with the overall hospitality industry, with rates up 5 percent to 10 percent on average, depending on the location and loss history. Properties in the most cat-prone areas are facing challenges securing property coverage. Coverage Considerations Given this rate environment, agents and brokers writing clubs accounts should evaluate coverage from multiple markets to make sure their accounts are getting the most for their money. Most importantly, don’t allow accounts to give up essential property coverages: • Full tee-to-green coverage with limits of $1 million to $2.5 million, including all playing surfaces with wind peril. • Property coverage for business interruption with unlimited extended indemnity.

• Agreed value for building and personal property. For coastal and other high-hazard property exposures, look for a property-catastrophe product with adequate property limits, access to inland marine coverage, and necessary flood, wind and earthquake coverage.

cannot fully predict weather. Too many ment and emergency response plans to miticlubs never reopen after storms, so don’t gate the impact. let your club accounts wait until their greens are filled with downed trees and Mulhern is senior vice president of Preferred Club, an insurpower is out to begin addressing this risk. ance program for golf and country clubs nationwide. Phone: Make sure they are equipped with the 800-523-2788. Email: rmulhern@preferredclub.com. Website: R2_I J_Half_Ins Journal 1/10/13 12:45 PM Page 1 coverage they need, as well as risk manage- www.preferredclub.com

Risk Management is Key You can’t prevent a severe windstorm or hail storm from hitting a club, but owners should have an effective risk management program to protect assets, be proactive in preventing claims and be prepared to reduce the impact. Remember, losses affect an account’s risk profile and premiums over a three- to five-year period. When it comes to tree damage, clubs can take to improve their outcomes: • Try to limit claims submission to what’s needed. For example, if a club loses 100 trees but 50 are in an unmaintained, wooded area away from the course, only file claims for ones that will be replaced. • Use professionals to handle regular tree pruning and removal of dead branches. This will help to make sure trees are not too tall or top-heavy. • Evaluate windstorm risk to buildings and, if necessary, add storm shutters or tempered glass to withstand flying objects. Emergency response planning is critical to a club’s ability to respond to a severe weather event. Clubs should do a vulnerability analysis to evaluate potential threats, and then prepare a business continuity plan that can be implemented during and in the immediate aftermath of a disaster. This plan should have a list of emergency contacts, crisis procedures and communications, alternate vendors and suppliers, and the steps to recovery. It also should have information on employees and necessary passwords and codes for technology — everything needed to reopen quickly and safely. Also consider a back-up generator. As many clubs and other businesses learned after Sandy, losing power can result in additional losses, such as food spoilage. The past two years have taught us that we www.insurancejournal.com

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Growing Your P/C Agency

How Independent Agents Can Use Print Ads in Today’s Digital World

he primary purpose of an independent agent is to sell insurance. Nowhere in agency contracts does it mention that marketing and sales must be performed exclusively via social media. That’s a good thing, because if you go this route, you’ll exclude tons of potential buyers. Not everyone is 18 to 29 years old. Older folks need insurance as well. Many are into Facebook et al., smartphones, and online research, but they don’t necessarily want to buy a policy this way — not yet anyhow. So don’t overlook them by overfocusing on social media. Find simple, creative ways to blend the new media with the old. Print ads, yes those dusty relics, are an easy place to start.

Attach individual ads to tweets on New Media – Old Ads Twitter, and post updates on LinkedIn that Gather together as many paper copies have direct connections to your ad shows. of your print ads as you can find, from the Also post selected ad images on your various places you’ve run them. Go back in agency’s free Instagram account (instagram. time as far as possible. Include local newscom). This popular site’s focus is photos. papers and magazines, trade publications, Use insurance-related hashtags along with etc. Then scan the ads to create digital files your images, so interested people can search of each. Clean up the scans for and find your posts. to build a collection of qual- Look for fresh ways to Examples … #carinsurity ad images. ance, #[your agency], Employ those images in a use and converge the #[your city]. new and the old. variety of digital locations. Organize them into slideRun Small Ads shows, such as, “our best auto insurance Tiny display ads are a viable, flexible, ads,” “our worst ads ever,” “our Yellow Pages medium for touting insurance. They offer ads from 1990-1999,” etc. Establish as many multiple placement opportunities for budgroupings as your scans warrant. Post the get-minded agents. Here are four of them. resulting slideshows (or individual images) • Print publications. 2” x 2” (or similaron your website, Facebook wall, and sized) ads are usually so inexpensive Pinterest pinboard.

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News & Markets

TRIA Debate Heats Up with Charge ‘Nervous Nelly’ P/C Insurers Enjoy $7B ‘Subsidy’ By Andrew G. Simpson

consumer advocacy group says the property/casualty insurance industry has been getting a sweet deal worth about $7 billion as a result of the federal government’s program to help pay terrorism insurance claims after private insurance is exhausted. An industry economist calls the charge “bizarre” and the $7 billion figure “bogus.” The original federal Terrorism Risk Insurance Act (TRIA) was enacted after the Sept. 11, 2001, attacks to allow the federal government and the insurance industry to share losses in the event of a major terrorist attack. The current version of TRIA, officially the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), expires at the end of 2014 and Congress has already begun debating whether to keep it or kill it. The insurance industry and construction, banking and real estate interests support renewal of TRIA but some in Congress, including fiscal conservatives, think the program is unnecessary and hinders development of private financing solutions. Even the Treasury Department has questioned the need to renew TRIA. The Consumer Federation of America (CFA) is also urging Congress not to renew it because it says TRIA amounts to a subsidy that is helping turn P/C insurers into “nervous nellies” that are afraid to underwrite difficult risks like terrorist attacks. CFA also opposed renewal back in 2004. The CFA says its $7 billion figure is the minimum premium private insurers would have paid from 2002 to 2012 for reinsurance like that which has been provided by the federal government for free. CFA’s Insurance Director J. Robert Hunter said he calculated the $7 billion figure by adding a few years to a Congressional Budget Office estimate of $3.1 billion as the typical cost of modeled terrorism losses for 2008 through 2012 and another $3.3 billion www.insurancejournal.com

expense projected through 2017. A leading economist for the property/ casualty industry calls the CFA’s $7 billion figure “bogus” and its position against TRIA “anti-consumer.” Dr. Robert Hartwig, president of the industry’s Insurance Information Institute (III), says the TRIA program has cost taxpayers almost nothing. Also it is strange hearing CFA argue against renewing TRIA because that would hurt consumers, according to Hartwig. “The insistence that TRIA not be authorized is fundamentally bizarre coming from the CFA, which says it is a consumer organization,” Hartwig says. In Hartwig’s view, opposing TRIA is an anti-consumer stance because without the federal insurance backstop private terrorism coverage will become less available and less affordable, which will hamper the ability of some businesses to operate. Also, failure to renew TRIA could hurt construction projects and commercial loan activity, both of which support jobs.

‘The insistence that TRIA not be authorized is fundamentally bizarre coming from the CFA, which says it is a consumer organization.’ “Anything that could adversely affect what remains a very fragile employment picture in the U.S. is also anti-consumer,” Hartwig says. The CBO in a 2006 report found that after TRIA’s enactment, there was some recovery in commercial construction but that the law had “little measurable effect nationally

on office construction, employment in the construction industry, or the volume of commercial construction loans made by large commercial banks.” Hartwig also says that if the act is not extended, some insurers will decide not to write it at all or they will write less and charge more for what they do write. But Hunter thinks it’s better to deal with the possibility of market restrictions and coverage being unavailable if and when it happens. “If there are instances where it has been difficult to obtain insurance coverage, the Federal Insurance Office should work with appropriate state insurance commissions to examine and efficiently mitigate these deficiencies,” he said in a statement. III’s Hartwig dismisses the CFA’s $7 billion figure, saying nobody knows where and when the next terrorist attack may occur and how much damage it will do. “It’s a bogus number because if it were not for the terrorism risk insurance act, insurers wouldn’t be involved with this to begin with. It’s hard to say insurers are getting a subsidy for a business that they are only in because there is a federal backstop. … It’s bizarre to argue that,” Hartwig said. The III economist thinks CFA is being presumptuous. “The CFA apparently knows more than the insurance industry, the federal government, the military, the CIA [Central Intelligence Agency], the NSA [National Security Agency] combined because apparently they know what the expected cost and frequency are of future terrorist attacks,” he told Insurance Journal. continued on page W11

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News & Markets Washington Man Gets $1,103 Speeding Ticket in Oregon

Washington state man has a hefty speeding ticket to pay after getting clocked at 130 mph on his new motorcycle in central Oregon. Sixty-one-year-old Gregory Zaser, of the wealthy Lake Washington enclave of Medina, east of Seattle, told the trooper who pulled him over earlier in May that he’d just purchased the Ducati bike and wanted to see what it could do. The ticket for going 130 mph in a 55 mph zone is $1,103 — that’s the automatic fine for going more than 100 mph in Oregon. Oregon State Police Lt. Steve Mitchell says Zaser could also have his license suspended. Copyright 2013 Associated Press. All rights reserved.

Space Mountain Reopens at Disneyland After Workplace Appeal Dropped

ne of Disneyland’s most popular rides finally reopened in May after the company declined to appeal a workplace safety case. The attraction was closed in April after state officials said safety rules were violated when a contractor fell and suffered broken bones while cleaning Space Mountain’s slanted roof. The contract company was fined nearly $61,000 for the safety violations. The California Division of Occupational Safety and Health proposed a nearly $235,000 penalty against Disney in connection with the contractor’s injury. Disney did not appeal by the deadline, but the company said it continues to meet with the state agency about the citations. Disney closed two other rides — the Matterhorn Bobsleds in Disneyland and Soarin’ Over California in Disney California Adventure — to evaluate the safety of employees who maintain them. Both attractions eventually reopened.

Montana Enacts Insurance Compact Legislation

ontana Gov. Steve Bullock has made Montana the 43rd state to join the Interstate Insurance Product Regulation Commission. Bullock’s state joined the IIPRC upon his signing of Senate Bill 28. The IIPRC is a state-based regulatory modernization initiative designed to enhance the efficiency and effectiveness of the way insurance products are filed, reviewed and approved while preserving regulatory authority at the state level. Copyright 2013 Associated Press. All rights reserved.

Jail for Washington Man Faking Work Injuries for Drugs

Washington man thought he found the perfect way to get prescription narcotics — go to a hospital claiming to be in pain due to a work related injury. But an investigation by Washington’s Department of Labor & Industries uncovered the scam, and the result was that Jose Ramon Amaya-Hernandez recently pleaded guilty to three counts of obtaining a controlled substance by fraud and was sentenced to 45 days in jail on each count to run concurrently. He must also pay fines as well as a yet to be determined amount of restitution to the hospitals he defrauded. The investigation found that Amaya-Hernandez filed 53 claims for injuries over a three-year period. The claims were filed at a dozen different Seattle area hospitals and were subsequently denied by L&I because there were no records showing that the man ever worked for any of the employers he listed on the claims. However, the hospitals provided him with narcotic pain medications for the treatment of his claimed injuries. Although Amaya-Hernandez was using several aliases, L&I investigators became suspicious and used a cross match through the state’s Department of Licensing to determine his actual identity and build their case.

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News & Markets California Surplus Lines: LLC Bill Thriving By Don Jergler

mong a horde of bills wending its way through California’s Legislature, there’s an innocuous looking bill with simple language to change a few words in existing law that could have a great deal of meaning to those in the surplus lines business. Assembly Bill 1236, by Curt Hagman, R- Chino Hills, which has the strong support of the Surplus Line Association of California, makes a technical change maintain insurance against liability for to existing law that its supporters say damages arising out of claims written is necessary to ensure adequate availby an insurer or insurers duly licensed ability of insurance to Limited Liability by this state. But the requirement that Companies that obtain a contractor’s the insurance be written by an admitlicense. ted insurer limits the benefit of this The bill is thriving so far, having law, according to the SLA. went through Assembly unopposed, and Property/casualty insurance typiis now in state Senate. cally must be placed in the admitted State law currently requires such market if the admitted market is willlicensees to obtain general liability ing to underwrite it, but if there is no insurance and to get the insurance admitted market consumers are allowed through an admitted insurance carrier. to obtain their insurance from the surThe bill would additionally permit plus line market in most cases, argued those policies to be written by an eliBenjamin J McKay, SLAC’s executive gible surplus lines insurer. director. “We do not Those who fit in dispute the ‘I have had several this category are “typirequirement of the wholesale brokers cally, new industries insurance but the tell me that they that don’t have a loss requirement that could not place a deal history, unique risks the insurance must be underwritten by because of this law.’ that can’t be easily underwritten en an admitted carrier mass, or on high capacity projects — is limiting in the marketplace and counthink huge construction projects,” he ter to the overarching insurance convensaid. “Often, large projects will have tion developed in California over many both admitted and non-admitted polidecades,” states a letter from SLAC supcies for various aspects of the project.” porting the legislation. SLAC believes the bill would bring In 2010, a section of the state’s the insuring of LLC contractors in Business and Professions Code was line with insurance currently available amended to allow an LLC to render to non-LLC contractors. It will also contractors services that are “professionprotect the public by making quality al services” by authorizing the issuance insurance products available to these of a contractor’ s license to the company. contractors and should help promote In accordance with the provisions the growth of this important sector of of the amended section, an LLC must

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our economy, according to the group. It’s hard to say how much business those in the surplus lines arena lost in the last few years, but McKay has heard from several members and contractors who have had difficulty because of the law. “I have had several wholesale brokers tell me that they could not place a deal because of this law,” he said. “Anecdotally, it seems the law has stalled business and increased cost of compliance, as contractors are forced to incorporate in a new form or not do business as a contractor.” But the heart of the matter is the surplus market is often misunderstood by lawmakers, McKay said. “Our members, colleagues, consultants, and I explain and clarify the surplus line market to legislators, regulators, and citizens, routinely,” he said. “It is very important that decision-makers at every level of government and in every branch understand our business. Only through a full understanding of our business can they promulgate the proper policies and regulate the business effectively.” McKay also expressed confidence the bill will make it out of Senate and head to the governor for his signature. “It is a very common sense bill, as reflected by its unanimous passage in the House,” McKay said. “I am cautiously optimistic that the legislation will pass.” www.insurancejournal.com

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News & Markets CEA’s First CIO Reflects C-Suite Trend By Don Jergler

echnology veteran Todd Coombes’ approach to his new job as the first chief information officer for the California Earthquake Authority is to keep an enterprising yet cautious eye on the risks and rewards that emerging technologies offer. Among the issues with which CEA’s first CIO says he will be concerned when he starts his job on June 3 are security, efficiency and the task of integrating new technology into the organization Acting in the role of opportunist Coombes also plans to be mindful of what he calls the “consumerization of IT,” or as he puts it another way, “the technology in hands of everyone now.” CEA is among a slew of organizations that are adding CIO positions to their executive ranks, and more firms are placing growing importance on that role, making it more of a transformative position, experts say. “We have seen an increasing share of companies who put the CIOs right up at the top as the core of people who run the company,” said John Challenger, CEO of Todd Coombes Challenger, Gray & Christmas Inc., an outplacement consulting organization. “I think it’s a recognition by companies that the strategy around what information is collected and how it’s used to change behavior — to report to customers, and report to shareholders — is core to a company’s strategy. CIOs used to just be the technologist who fixed the machine or operated it, but now businesses are W6 | INSURANCE JOURNAL-WEST REGION May 20, 2013

ness functions, such as policy issuance, so dependent on the technology and billings, and customer notices, to its the risks are so great to the company participating insurers. through the technology that many more “In that regard, the CEA recently companies have started to do this.” experienced numerous undue compli CEA’s governing board approved cations as it tried to implement new, adding a CIO position to the CEA lower rates, revised policy forms, a new executive team following a recomproduct, and related (and required) sysmendation by consulting firm tems enhancements,” the memo states. PricewaterhouseCoopers. “Those experiences well illustrated the A memo last year from the board of inefficiencies inherent — and inescapthe privately funded but publicly manable — in the current operating strucaged not-for-profit provider of residenture, as some participattial earthquake insuring insurers’ aged comance stated the CIO ‘We have seen an systems presented “role would extend to increasing share of puter (and to this day present) CEA’s relationships companies who put difficulties that are laborwith key vendors and with participating the CIOs right up at intensive and costly to insurers.” the top as the core remedy, inhibiting CEA’s to effect timely, “While achieving of people who run ability needed change.” much success in its the company.’ To oversee changes core business segthat are often fundamenments, CEA’s develtal to how a company operates requires opment of internal business processes not merely technological knowhow, — including information technology — but business smarts, according to Tom has often lagged behind because of staffSilver, senior vice president at Dice.com, ing limitations that have restricted the a career site for technology and engiorganization’s ability to build a diverse neering professionals. skill bank,” the memo states. “What we’re also seeing is that the The memo notes that CEA’s business role of a CIO is now broadening to model assigns its most complex and continued on page W12 demanding technology-dependent busiwww.insurancejournal.com

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News & Markets Bill Limits California Workers’ Comp for Pro Athletes cer. It also would apply to those who played in the minor league systems of professional Associated Press teams. The former players who spoke out against rofessional athletes who spent most of AB1309 described it as an attempt by team their careers with teams in other states owners to avoid liability for legitimate injuwould no longer be able to file workers’ ries. compensation claims in California under a “I agree that professional athletes deserve bill that has passed the state Assembly. workers’ compensation benefits just like Supporters of the bill from Assemblyman everyone else,” Perea said. “However, there Henry Perea, D-Fresno, say out-of-state is no reason for an out-of-state athlete to file players should not be allowed to file claims for benefits in California in California for non‘…there is no reason when benefits are available specific cumulative injufor an out-of-state to them in their principal ries. Such claims place state of employment.” a burden on the state’s athlete to file for workers’ compensation benefits in California California is one of nine states that allow workers’ system and could raise when benefits are compensation claims on insurance costs, Perea available to them in cumulative trauma injuries, said. Several former profestheir principal state for which out-of-state players are seeking compensasional athletes, most of employment.’ tion. Workers’ compensaof them from the NFL, tion awards are paid by employers. attended a news conference in Sacramento State law also has broad limits on fillast month to say why they opposed the ing workers’ compensation claims, based bill, which would apply to athletes in footon when a player knew of the injury and ball, baseball, basketball, hockey and socBy Laura Olson

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whether they were properly notified of their compensation rights when they retired. Under Perea’s bill, workers’ compensation claims would have to be filed within a year of an athlete’s final game or of a physician diagnosing the condition, whichever is later. Players retiring from out-of-state teams would still be allowed to file claims if they spent 80 percent of their career with a California team. The legislation passed the Assembly 57-1, with Assemblyman Roger Hernandez, D-West Covina, voting against. Hernandez said professional athletes who play in California, regardless of where their team is located, should be treated the same as anyone else working in the state and allowed equal access to the workers’ compensation system. “If these athletes were speeding down our roads, breaking our laws here, they would be subject to California law,” he said in an interview. A coalition of labor groups opposing the bill, including the California Labor Coalition and the Labor Federation, said it would set a dangerous precedent for limiting access to workers’ compensation benefits. “At its core, AB1309 only helps professional sports team owners circumvent their responsibility under the law to the health and safety of their employees,” the groups said in a statement after the vote. The bill now heads to the Senate. Copyright 2013 Associated Press. All rights reserved.

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People Steven Ratto

Bhavik Desai

Ascension Benefits & Insurance named Steven Ratto senior consultant in the company’s Walnut Creek, Calif. office. Ratto will be responsible for assisting clients to improve their benefits performance through strategic planning, financial analysis, customized plan design and administration. He will also be responsible for training and mentoring junior staff. Ratto’s has more than 38 years’ experience in the healthcare and benefits sector, including in the area of budget projections and alternative funding arrangements. He spent more than 20 years of his career in actuarial and underwriting for a major healthcare organization. Most recently, he served as a principal at a global benefits firm located in the Bay area. Ascension Benefits & Insurance Solutions is part of Ascension Insurance Inc., a national consulting and brokerage firm founded. Ascension is a privately held corporation. Markel International named Bhavik Desai as an underwriter in its professional and financial risks division. Bhavik will focus on developing the company’s Lloyd’s and London market PI business, across a range of professions and geographies with a particular interest in complex risks. He will report to senior underwriter Andy Palmer. Desai joins Markel after seven years at AIG, most recently as an underwriter and team leader within the professional indemnity division. RENO, Nev.-based EMPLOYERS named Bradley N. Hatfield vice president of underwriting for strategic partnerships and alliances. He will be based out of EMPLOYERS’ office in Glendale, Calif. He has more than 25 years of experience in the insurance industry. Hatfield’s experience in insurance management, workers’ compensation, strategic planning and implementation.

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Hatfield comes from National Specialty Underwriters Inc. of Bellevue, Wash., where he was responsible for the creation and growth of medical professional liability underwriting programs at NSU. EMPLOYERS is a holding company with subsidiaries that are specialty providers of workers’ comp insurance and services focused on select small businesses engaged in low-tomedium hazard industries. The company, through its subsidiaries, operates coast to coast. SullivanCurtisMonroe Insurance Services LLC named Andrew Anson director of marketing and communications to its Irvine, Calif. office. Anson has more than 20 years of experience in financial services marketing and business development. His prior work experience includes marketing positions with Wells Fargo and Union Bank. SCM offers commercial property/casualty, employee benefits and personal lines coverage. Edgewood Partners Insurance Center named Kris Beale an employee benefits division senior compliance consultant in its San Francisco, Calif. office. Beale will assist EPIC clients with federal, state, and local health care legislation and compliance. She will also lead external and internal training initiatives for clients and team members. Additionally, Beale will track legislative changes, monitor government enforcement of legislation and analyze the impact on clients. Beale has more than 14 years of experience in employee benefits. Beale’s experience includes 14 years with the Mercer Group Inc. as a senior associate and consultant for the regulatory resources group. Prior to Mercer Group Beale worked as a paralegal for several law firms. EPIC has California offices in Los Angeles, Irvine, Ontario, Fresno, Folsom, San Francisco, San Mateo, Petaluma and San Ramon.

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News & Markets TRIA, continued from page W1

According to Hartwig, terrorism risk today is “very much the face of warfare” and “war has never been insurable.” But the CFA’s Hunter, a former Texas insurance commissioner and federal insurance administrator, believes the $7 billion is real and it is one of the reasons the industry wants Congress to renew the program. “We understand the desire of the insurers to keep a free reinsurance program and thus further expand their profits, but at a time of record-breaking federal budget deficits, we question the wisdom of providing multibillion dollar subsides to an industry that can easily afford to insure many terrorist events even larger than 9/11,” Hunter said in a statement. Hunter says rather than taking on the terrorism risk themselves, private insurers have “become ‘nervous nellies’ on the issue, preferring extreme caution to their normal risk-taking role to the detriment of those needing permanent insurance protections

20th Anniversary

in place.” He said TRIA was never intended to be permanent. Hunter also says the P/C industry, which reported record surplus of close to $600 billion at the close of 2012, could handily absorb any losses now covered by the federal program should a major terrorist attack occur. TRIA only covers losses after the first $100 billion. “The industry can easily afford the losses of up to $100 billion that the current act would cover,” Hunter said, adding that since TRIA does not cover nuclear, biological or chemical terrorism, losses would not reach anywhere near the $600 billion and are even unlikely to reach $100 billion. According to Hartwig, the American Academy of Actuaries years ago estimated that “hundreds of billions of dollars in insured claim payouts could be generated by a single terrorist attack in one city, so there is a role for the federal government to play when it comes to sharing in the very substantial risks the nation faces.”

The number of companies purchasing property terrorism coverage from private insurers has remained fairly constant, in the low 60 percent range, since 2009 as insurers underwrite the risk backed by TRIPRA, according to a report by broker Marsh. The report found that premium rates also have remained steady for terrorism coverage. Companies with total insured value of less than $100 million paid a median of $49 per million of TIV in 2012, the same as in 2011, while the median rate paid by companies with more than $1 billion in TIV was $19 per $1 million TIV in 2012, down from $21 in 2011. “Clearly the demand for terrorism risk insurance remains strong and the existence of the federal program plays a major part in the availability and affordability of the coverage,” said Dan Glaser, president and CEO of Marsh & McLennan Companies said at a recent meeting in Washington of supporters of TRIA.

INSURANCE INDUSTRY CHARITABLE FOUNDATION

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Celebrating twenty years of grants, volunteer service and leadership Join us as we celebrate the philanthropic commitment of our industry and commemorate twenty years of grants, volunteer service, and leadership.

For additional information, please contact the Foundation at: 925.280.8009 | www.iicf.org | FEIN: 20-1240972

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someone who not only has technical capability, but someone who has business understanding and business acumen,” Silver said. According to Silver the number of companies hiring CIOs or creating such a position continues to be on the rise, and the importance of the role is being bared out by the salaries for which the position is being rewarded. The average salary of CIOs was $119,000, up 5 percent from a year ago, according to Dice.com’s annual salary survey for 2012-2013. “Salaries for CIOs have demonstrated the importance of the position within an organization,” Silver said. Overall tech salaries are up, according to Dice.com. Tech professionals in 2012 earned a greater than five percent increase in average annual wages to $85,619, up from $81,327 in 2011. The average annual salary for IT management — CEO, CIO, CTO, VP, Director — is $123,081, up 6 percent from 2011, according to the survey. The increase in wages comes at a time when the vast majority of tech professionals (64 percent) say they are confident they could find a favorable new position in 2013, the survey shows. John Seely Brown, co-chairman of Deloitte LLP’s Center for the Edge, told CIO Journal, a part of The Wall Street Journal publication, that CIOs can also help tune a company’s top executives into the most recent events in the world of technology. “They can help the C-Suite better understand how the company can use digital tools in incredibly powerful ways,” Brown said. He added, “CIOs can also start thinking about building more flexible IT infrastructures that allow the players in a company’s ecosystem — customers, suppliers, third parties — to come together, build connections on the fly, and preserve their own unique way of operating, rather than having to fit into a rigid infrastructure. Many companies are trying to figure out how to harness the power of their ecosystems to W12 | INSURANCE JOURNAL-WEST REGION May 20, 2013

municate and give information from a survive in this rapidly changing business smartphone when choosing carriers and environment. Understanding ‘ecosystemic services. thinking’ and rethinking corporate infra “It’s the expectation people have about structures can present a fantastic challenge what the new normal of technology is all and opportunity for CIOs.” about,” he said. Coombes, a business-technology execu Coombes said that “new normal” is tive with more than 25 years of leadership something the insurance business and CEA experience in insurance and other indusneeds to be out in front of. tries, comes to CEA from ITT Educational “In terms of the insurance business overServices Inc., where he was executive vice all I think that technology will be much president and CIO. Before ITT, he was part more integrated into the entire value chain,” of the leadership team at CNO Financial he said. “The CEA in particular is interested Group. in creating more accessibility to the prod It was for his work at CNO that in 2012 ucts, and operating with more efficiency, Computerworld named Coombes one of its and providing better support for the insur“Premier 100 IT Leaders.” ance organizations.” Coombes sees opportunity in the changes There’s another benefit to putting a CIO being undertaken at CEA, as well opporin the C-Suite, according to Challenger. tunities such as those being brought about In an environment of by cloud computing, and ‘Salaries for CIOs increased regulation, as well the ever-expanding capabilities of mobile devices, have demonstrated as growing concern and pubsuspicion over the ethics enabling an organization the importance of lic of corporate practices, movlike CEA to communicate the position within ing to add a CIO can help in more and more poweran organization.’ provide greater transparenful ways to its customers cy, something that can help and insurance agents. protect a company from itself, according to “It creates opportunities and it raises Challenger. expectations,” Coombes added. “Information shines a light on what’s He was referring to the rising expectahappening,” Challenger said, adding that tions from the consumer community, which by having a CIO as a top-tier executive it is being equipped with faster and more makes it difficult for information to be capable technology that is enabling them obfuscated. “Authorizing it at the C-Suite to complete just about any task, including level gives more power to that informabuying insurance, on their smartphones and tion, and more power not to hide it. We’re handheld devices. in an era of transparency. Information is Coombes believes more consumers will transformative. Transparency is what drives place a greater emphasis on a conveniences change.” like as being able to buy policies and comwww.insurancejournal.com

that you can afford to run them issue after issue in local publications. The longer you do it, the greater your discount. People see them repeatedly, and ultimately your message sinks in, especially when you focus on a single policy type and feature memorable imagery. Also, run your mini-ads in the

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local shopping news. Then contact your fellow business advertisers, using the commonality of your ad venue as a door opener. Remember to ask your carriers about co-op subsidies. And don’t forget to run the ads in your own agency newsletter. • Email signatures. Attach digital versions of your miniads to the email signatures of selected producers and CSRs. Feature separate ones for personal and commercial lines. • Fax covers. Of course, emails with attachments are better than faxes, but these antiquities of the 80s still have certain uses in today’s agency. Most faxes go to businesses, so place your commercial lines mini-ads on your agency’s cover page.

• Online. Post digital versions of new ads in the same locations as your old ones, including the various social networks and on your website and blog. Be Bold With the Old Don’t limit yourself to today’s digital marketing tool set. Reach the broadest base of buyers by employing both online and traditional promotions. Look for fresh ways to use and converge the new and the old. Your goal isn’t to be the coolest agent; it’s to grow your book with quality business. And with all of the industry noise pushing you in one direction, flexibly marketing your agency through multiple channels takes real courage. Shulman is the publisher of Agency Ideas, a sales and marketing newsletter. He is also the author of the many tools on the Agency Ideas Instant Download Store. Phone: 800-724-1435. Email: alan@agencyideas.com. Website: www.agencyideas.com.

May 20, 2013 INSURANCE JOURNAL-NATIONAL | 21 4/8/13REGION 10:28 AM

Opioid

SPECIAL REPORT

Workers’ Compensation

he national “epidemic” of opioid usage has garnered a great deal of public attention, but amid those concerns is a less publicized battle being waged by workers’ compensation stakeholders who are stepping up efforts to call more attention to the use of the potent pain relieving narcotics by injured workers. In the highly complex and diverse field of workers’ comp, entities including state governments, insurers and an array of workers’ comp stakeholders have

Plagues Workers’ Comp

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Web Resource Listen to a podcast with Dr. Leonard J. Paulozzi of the Centers for Disease Control and Prevention on InsuranceJournal.tv.

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By Denise Johnson and Don Jergler

area often treated with prescribed opioids been forced to face down the issue of opioid for the short- and long-term, despite mediusage by injured workers in varying degrees cal recommendations against long-term use through myriad methods. However, pinning in back cases, according to Paulozzi. down where the problem lies is a task as “There’s an awful lot of back injuries in tough as correcting the problem of opioid the workers’ comp population and subseabuse itself. quent surgery related to back problems, and Improved utilization of statewide databack pain is one of the most common indibases that track opioid prescriptions, fercations now of use of opioids in the United reting out and punishing overprescribing States,” he said. “It’s being used frequently doctors, dealing with the growing number for back pain, and it’s being used long-term of pain management clinics and stricter confor back pain.” trols in management provider networks are Trey Gillespie, senior workers’ compenamong the solutions a number of states have sation director for the Property Casualty adopted or are considering. Insurers Association of America, has been Meanwhile, the problem of opioid abuse following the issue for many years, particuis growing to the extent that it’s caught the larly at the state level where much of the attention of the Centers for Disease Control battle against overuse and overprescribing and Prevention. in workers’ comp cases is being fought. “It’s a big problem, and it’s a growing Most of the legislative and regulatory problem,” said Dr. Leonard J. Paulozzi, attempts to address the overutilization of a medical epidemiologist with CDC’s prescription drugs lies with state legislaNational Center for Injury Prevention & tures and state agencies, although the Food Control, which has been studying the and Drug Administration is considering impact of opioid overdoses and the problem the reclassification of Hydrocodone — an of overuse among America’s populous. opioid that finds its way into may workers’ There are close to 40,000 drug overdose comp prescriptions — from Schedule III to deaths each year in the United States, and Schedule II, according to the number continues to rise, according to CDC sta‘It’s a big problem, Gillespie. “All states have a tistics, which show more and it’s a growing problem with the overthan half of overdose deaths problem.’ utilization of prescription involve prescription drugs, drugs including narcotics,” and that opioid-related Gillespie said. “The Workers’ Compensation deaths exceed deaths involving heroin and Research Institute has looked at the data cocaine combined. from 21 states and found longer-term use “Drug overdoses, the deaths, are more of opioids was most prevalent in New York numerous than motor vehicle crash deaths and Louisiana. Other states with signifiin the United States,” Paulozzi said, adding cant long-term opioid usage were Texas, that as of 2010 that trend has been on the Pennsylvania, South Carolina, California and rise for 11 consecutive years. “We’ve called it North Carolina.” an epidemic, drug overdoses, and it’s a high Georgia just passed a “pill mill” bill that priority topic here at the CDC.” would license and regulate pain manage Paulozzi views the drug problem as ment clinics and require the owner of such potentially more prevalent among the an establishment to be a doctor. States like injured worker population. “The overdose Kentucky, Ohio, Tennessee, West Virginia, rate is highest among people of working Texas, Louisiana, Mississippi and Florida age, that is middle-age people,” he said. have passed similar legislation. Exacerbating the problem is that many Such actions are not without a potential work-related injuries occur to the back, an www.insurancejournal.com

downside. Pill mill legislation was introduced in Florida, but that sent people looking for prescriptions to nearby states and increased drug dispensing in neighboring territories, Gillespie said. Many states are still trying to catch up in terms of policing or at least curbing opioid abuse. In Missouri, lawmakers are trying to pass legislation to create a prescription drug monitoring program. Sen. David Sater, R-Cassville, and Rep. Kevin Engler, R-Farmington, have introduced legislation to establish such a program. Other states have been more aggressive in the battle, Gillespie said. Texas implemented a closed formulary on prescription drugs in the workers’ comp system. The Texas Workers Compensation Research and Evaluation Group in an early study of the state’s closed formulary suggests it may reduce the utilization of Schedule II narcotics. In the world of workers’ comp, studies and efforts to curb usage are also being driven by the bottom line, because the medical benefits portion of a workers’ comp claim may be open for a number of years, and may be open for the lifetime of the injured worker. “As the years progress, prescription medication becomes a bigger portion of the medical expense,” Gillespie said. This is especially true if the worker has become dependent or addicted to opioid medication to control pain, he said. “Consequently, payers are working hard to reduce the incidence of workers who become dependent or addicted to pain medication and look for better treatment alternatives to opioid pain medication to manage pain,” he added. Carriers and Providers While federal and state agencies work to abate prescription drug abuse nationally and on the local level, workers’ comp carriers and service-providers are examining the problem of opioids prescribed to injured continued on page 24

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SPECIAL REPORT

Workers’ Compensation

Pew said opioids are generally precontinued from page 23 scribed for three reasons in workers’ workers, which can lead to higher costs comp claims: Catastrophic injury with and legacy claims. chronic pain; an injury involving surgical A study of more than 12,000 worktreatment which necessitates immediate ers’ comp claims processed by Lansing, pain control; and general pain control. Mich.-based Accident Fund Holdings Although opioids are prescribed regufound that when prescriptions for cerlarly when a worker is injured on the tain opioid painkillers were prescribed job, the Food and Drug Administration in workers’ comp injuries, claims were on-label approved use of opioids is for almost four times as likely to have a cancer patients, AIDS patients and for total cost of $100,000 or more, compared surgery-related pain. According to Pew, with claims without any prescriptions. medical guidelines generally specify a Opioids make up to 3 percent of two-week time frame after surgery or costs in shorter claims and between 15 substantial injury for opioid use. percent and 20 percent of all medical “Using opioids as a crutch really is the costs on longer-term claims, according wrong thing. What you need to be focusto Dongchun Wang, an economist with ing on is coping with it and managing it WCRI, part of a team that analyzed like the vast majority of humanity does long-term opioid use in 21 states. with chronic pain Travelers estimates medical ‘As the years progress, or just the fact of old,” Pew costs make up 60 prescription medication getting said. percent of workers’ becomes a bigger portion An annual workcomp claim costs of the medical expense.’ ers’ comp report and are projected from pharmacy to increase to 67 benefit managing giant Express Scripts percent by 2019. Willis’ has expanded its noted: “The issue of opioid prescribing medical cost consulting service based on becomes even more important in workits similar estimation that by 2020, meders’ compensation settings as prolonged ical costs will account for 70 percent of opioid use has been shown to be assoworkers’ comp costs. ciated with poorer outcomes, longer Although often used synonymously, disability and higher medical costs for opioids are natural opiates derived from injured workers.” poppy plants, while narcotics are a The “2012 Workers’ Compensation synthetic version. There are many variaDrug Trend Report” also found that high tions of opioids — fentanyl, morphine, narcotic prescribers tend to treat fewer codeine, hydrocodone (Vicodin, Lortab), injured workers. The researchers’ theory methadone, oxycodone, (Percocet, is that “prescribers who don’t routinely OxyContin), hydromorphone (Dilaudid) treat work-related injuries are more and meperidine (Demerol) — with diflikely to prescribe larger amounts of narferent levels of potency. To compare one cotics than their peers.” to the other, morphine is the baseline. Pew said there is a tipping point in “Morphine has a one-to-one relationthe long-term use of opioids in worker ship — morphine is equivalent to injuries. “When somebody is off work, morphine. OxyContin is one-and-a-half the thing that complicates matters on times more potent than morphine. workers’ comp is you’ve got the secondMethadone, depending on the dosage, is ary standing entitlement mentality that 10 to 12 times more potent. Fentanyl can oftentimes comes with workers’ comp,” be anywhere from 10 to 12 times more Pew said. “You have to be self-motivated, potent than morphine,” according to really, to get back to work and do the Mark Pew, senior vice president of busiright thing.” ness development for PRIUM. 24 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

The higher the potency, the greater likelihood for problems, according to Pew, who said because of the numerous side effects associated with opioids, there is the risk of poly-pharmacy. “It means there are too many drugs — drugs that shouldn’t be used together, drugs that should be counterindicated,” he said. “So what started out as a oneor two-drug regimen, over time has become a three-drug, a five-drug, an eight-drug, a 15-drug regimen because all the side effects compound each other, and the side effects sometimes create the need for additional drugs to deal with the additional side effect.” When claimants are on multiple drugs with potentially high dosages, “their quality of life and function never gets any better. In fact, it actually gets worse over time,” he said. Worst States Despite limitations on dispensing opioids to injured workers, WCRI research found between 55 percent to 85 percent have received an opioid prescription in Louisiana and New York, which recorded the highest long-term opioid use. According to Pew, roughly one-third of the prescriptions written in Illinois were for drugs dispensed by the physicians. “Illinois said, ‘That’s not best practices because it bypasses the pharmacist oversight.’ They instituted a fee schedule. They capped the amount of money that doctors could make on physician dispensing, and all of a sudden physicians didn’t dispense as much as they used to,” Pew said. In California, home to one-in-eight Americans, just 3 percent of the state’s doctors prescribe 55 percent of the opioids, according to the California Workers’ Compensation Institute (CWCI). California has seen a large increase in opioid prescriptions in the past decade, according to CWCI, which has been tracking opioid use in workers’ comp for the past eight years. Between 2002 and 2011, CWCI tracked a 300 percent increase in opioids. In www.insurancejournal.com

2002, roughly 1 percent of all injured worker outpatients were prescribed opioids. By 2011, it was 5 percent, and payments for opioid prescriptions rose from 4 percent to 18 percent during that period, according to CWCI. “That’s a 321 percent increase in payments,” said CWCI President Alex Swedlow. The escalations were not driven by more workers being injured, nor were there more injuries that warranted doctors prescribing more painkillers. “They were just prescribing more,” Swedlow said. CWCI published a study in 2008 that looked at different levels of opioid prescriptions and workers’ comp claim outcomes. The study found the higher the dose, the higher the cost, more time out of work and more litigation. Average claim costs of workers receiving seven or more opioid prescriptions were three times more expensive than workers who received one or no prescription. Workers who received more opioids were 2.7 times more likely to be off work and had 4.7 times as many days off, according to the CWCI study. The study showed the likelihood of indemnity payments among claims with no filled opioid prescriptions to be 34 percent. When there was one opioid prescription, the likelihood of indemnity payments rose to 56 percent. When there were two or three prescriptions, the likelihood of indemnity payments was more than 86 percent. That likelihood rose to nearly 90 percent among claims that had four to seven opioid prescriptions, according to the report. Washington is in the process of introducing more stringent guidelines for workers’ comp medical providers that detail when opioids should and shouldn’t be prescribed, as well as consequences for failure to follow the best practices. Washington has been among the states with the highest rate of www.insurancejournal.com

prescription opioidrelated deaths, according to CDC, which reports on the U.S. and the rate of death from overdoses, noting how many resulted from opioids. The latest CDC report showed there anaare 14.7 drug overdose deaths per 100,000 lytics people in Washington. Of those, 6.1 per to predict poten100,000 were opioid-related overdoses. The tial high-cost, high-risk claims report showed the national average for drug assists payers and injured workers. The overdose deaths was 11.9 per 100,000, with company reported more claims closed in opioids accounting for 4.8 per 100,000. the acute phase and resulted in a 51 per New Mexico (27.0, and 5.7), West Virginia cent decrease in the likelihood that a claim (25.8, 5.9) and Kentucky (17.9, 6.0) were would mature into a two-year claim. In among the top states with drug overdose addition, the use of opioids decreased. and opioid-related deaths, the report said. Travelers recently introduced its Medical The CDC report was one of the factors Center of Excellence, a program that incorthat prompted the state to take action, porates medical bill review advancements said Jaymie Mai, pharmacy manager for and network, pharmacy and fraud manageWashington’s Department of Labor & ment. The company recommended that Industries. “employers, brokers and carriers proactive “We’re in the higher tier states,” she said. ly partner on timely intervention, proven Washington is taking action to limit opireturn-to-work strategies and skilled case oid prescription for injured workers to only management to avoid unnecessary delays when such drugs can help bring about a and expense in treat“clinical meaningment.” ful improvement The higher the dose, the higher the cost, which means Programs that address in function and opioid use and abuse pain,” Mai said. more time out of work and benefit not only injured The state also more litigation. workers, they benefit is setting triggers insurers by reducing costs and liability risk, for when opioids should be used. “We want PRIUM’s Pew said. to balance the use of opioids with all the “There has been case law in several states risk that comes,” Mai said. now where an injured worker overdosed on drugs that were prescribed by the Controlling Problem work[ers’] comp doctor and paid for by the Although 49 states have prescription drug work[ers’] comp payer. Even though they monitoring program laws and 44 states obviously had a problem with the use of have operational programs, the statewide that drug — they were abusing it or misuselectronic databases that collect designated ing it — ultimately, the insurance carrier data on prescription-controlled substances had to pay for death benefits because they and drugs of concern are not enough to somewhat enabled the processor to pay for control the opioid abuse epidemic. As a it,” he said. result, workers’ comp service-providers are attempting to address the opioid problem. More Resources Progressive Medical, a workers’ comp pharmacy benefit manager, released its “2013 See more on this topic on Workers’ Compensation Drug Trend Report” InsuranceJournal.com and in April that found it was beneficial to use ClaimsJournal.com May 20, 2013 INSURANCE JOURNAL-NATIONAL REGION | 25

NATIONAL COVERAGE

MyNewMarkets USL&H Market Detail: Texas Mutual Insurance Co. (www. texasmutual.com) provides a stable, competitive source of workers’ compensation insurance for Texas employers, acts as insurer of last resort, and helps to prevent on-the-job injuries and illnesses and minimize their consequences. Available limits: As needed Carrier: Texas Mutual States: Texas only Contact: Customer service at 800-859-5995

records or paperwork; loss of data; intangible property such as a logo, trademarked slogans or names, and company’s reputation in the face of slanderous advertising; damage done by a property to a third-party’s property or person; loss of inventory because of an accident or disaster; and protection to property and assets in case of a burglary or vandalism. Available limits: As needed Carrier: Unable to disclose States: All states except D.C. Contact: Customer service at 800-828-3452

Commercial Property Market Detail: Stuckey & Co. (www.stuckey.com) has policies and packages for commercial property insurance needs. Property insurance for businesses includes the following coverage: repairs and replacement in the event of physical damage done to a property; protection if the cost of demolishing and rebuilding is greater than the current property value; specialty coverage for business-specific concerns; glass coverage in case windows are broken in a storm or accident; sign coverage in case of damage done to, or by, a sign; commercial property insurance for damage done to computers, equipment, and

Workers’ Compensation Market Detail: Risk Innovations LLC (www.riskinnovations llc.com) works with 15 “A”-rated workers’ comp carriers and can cover hard-to-place risks; high-mod risks (unlimited) and This section brought to you by Insurance Journal’s sister website, www.mynewmarkets.com

Need a Market? Find it. FAST. multi-state risks. Programs are available for home health care, medical temp staffing, golf courses, restaurants and hotels. Available limits: As needed Carrier: Various, admitted available States: All states except Alaska, Mich., Neb., Ohio, R.I., Utah, Vt., Wis. and W.Va. Contact: Customer service at 800-913-6696

OUR NAME IS OUR GAME Count on us for all of your sports & fitness related insuranCe needs. With more than 60,000 prospects nationwide—potential clients in the fitness category are looking high and low for insurance that meets their unique needs. So call on the unmatched experience and expertise of SFIC—so you can start calling on prospects today. Visit sportsfitness.com/inagent or call us at 1.800.844.0536 EXT 2222 for more information.

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5/3/13 11:56 AM

Ocean Marine Cargo Market Detail: Aspen Specialty (www. aspenspecialty.com) has opportunities in agricultural, commodity, technological, food and industrial segments. Available limits: As needed Carrier: Aspen Insurance Holdings States: All states Contact: Jonathan Maloney at 770-424-5770 or email: jonathan@ram-insurance.com Manufacturer’s E&O Market Detail: Hill Program Managers LLC (www.hillprograms.com) offers manufacturers professional liability coverage for a range of product manufacturers. Available limits: Maximum $5 million Carrier: Unable to disclose, non-admitted States: All states Contact: Michelle Boyer at 818-933-2700 or email: mboyer@mmibi.com. www.insurancejournal.com

Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2013 Workers’ Comp Directory, a comprehensive listing of intermediaries and carriers offering workers’ compensation coverage throughout the country. The information listed in this directory serves as a resource guide for independent agents and brokers looking for workers’ compensation markets. Intermediaries and carriers writing workers’ compensation coverage and profiled in this directory submit updated information directly to Insurance 4 All Insurance Services Contact: Nader Kayvan Phone: 818-346-4555 ; Fax: 818-610-2219 Email: info@4allinsurance.net Website: www.4allinsurance.net ■ Markets Offered: Excess Workers’ Comp, Health Ins, HMO, Managed Care, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: AZ CA FL NV OR TX UT VA WA A.I.I. Insurance Brokerage of Mass., Inc. Contact: Erina Connors Phone: 508-476-1990 ; Fax: 508-476-1991 Email: info@agencyint.com Website: www.agencyint.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: CT MA NH ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Magna Carta, Tower Group Accident Insurance Services, Inc. Contact: Beckie Ervin Phone: 972-991-0413 ; Fax: 972-788-5108 Email: beckieervin@ais-insurance.net Website: www.ais-insurance.net ■ Markets Offered: Excess Workers’ Comp, 24 Hour Policy, Workers’ Comp, Occupational Accident ■ Phone Inquiries: Accepted ■ Minimum Premium: $150 ■ Brokered Business: Accepted ■ States Entered in: TX ■ Carriers Represented: American Hallmark

Journal. We make every attempt to ensure the accuracy of all information listed in this directory. You may also view Insurance Journal’s Workers’ Comp Directory online at: www.insurancejournal.com/directories. Also visit that link to submit a listing for future workers’ compensation directories, or e-mail Kristine Honey at: khoney@insurancejournal.com. We hope you find the 2013 Workers’ Comp Directory to be a useful tool when searching for markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.

ACE Risk Management Phone: 215-640-4642 Website: www.aceusa.com ■ Markets Offered: Workers’ Comp, Excess Workers’ Comp, Texas Excess Indemnity, GL, Automobile Liability & other financial products. ■ Phone Inquiries: Accepted ■ Minimum Premium: Loss Sensitive Accounts with $100,000 Deductible/Retention for Workers’ Comp ■ Brokered Business: Accepted ■ States Entered in: All States ■ Alliance With: With: ESIS, Inc. and other Third Party Administrators & Risk Management Providers Agency Intermediaries, Inc. Contact: Erina Connors Phone: 203-453-2859 ; Fax: 203-453-8859 Email: info@agencyint.com Website: www.agencyint.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: CT MA NH RI ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Magna Carta, Tower Group

Agency Resources Contact: Florencia Robledo Phone: 866-454-9676 ; Fax: 973-261-9202 Email: florencia.robledo@agencyresources.com Website: www.agencyresources.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted

28 | INSURANCE JOURNAL-NATIONAL REGION May 20 , 2013

Agostini Surplus Contact: Caesar Serrano Phone: 800-922-7283 ; Fax: 619-593-2008 Email: caesar@agostinisurplus.com Website: www.agostiniwholesale.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO NM NV OR TX ■ Admitted Status: Admitted All Risks, Ltd. Contact: Hollie Hobbie Degutis Phone: 800-366-5810 ; Fax: 410-828-8179 Email: hhobbie@allrisks.com Website: www.allrisks.com ■ Markets Offered: MEL & DBA, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Over 14 carriers represented Alternative Market Services, Inc. Phone: 855-924-1597 ; Fax:916-751-5911 Email: info@amsboss.com Website: www.alternativemarketservices.com ■ Markets Offered: Commercial Insurance, Health Insurance, PEO, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: All Carriers

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2013 Workers’ Compensation Directory Alternative Risk Transfer Contact: Rick Kirsch Phone: 321-281-0763 ; Fax: 866-481-9969 Email: rkirsch@altrisktrans.com Website: www.altrisktransfer.com ■ Markets Offered: Captives, Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: TBD ■ Limits: TBD ■ Brokered Business: Accepted ■ States Entered in: All States Amerisafe Contact: Customer Service Phone: 800- 897-9719 ; Fax: 800-450-1091 Email: aiic-mktg@amerisafe.com Website: www. amerisafe.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Most States AMIS/Alliance Marketing & Insurance Services Contact: Bill West Phone: 800- 843-8550 ; Fax: 800-573-8550 Email: bwest@amiscorp.com Website: www.amiscorp.com ■ Markets Offered: Ins. Adjusters, Security Guards & Alarm Co’s, Workers’ Comp for Private Investigators ■ Phone Inquiries: Accepted ■ Minimum Premium: $297 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Non-admitted ■ Carriers Represented: Travelers AmTrust North America Contact: Customer Service Phone: 877-528-7878 ; Fax: 800-487-9654 Email: marketing@amtrustgroup.com Website: www.amtrustnorthamerica.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Alliance With: Multiple regional alliances AmWINS Group, Inc. - 60 Offices Nationwide See Website for Locations, HQ - Charlotte, NC Contact: Marketing Department Phone: 704-973-3489 ; Fax: 704-943-9000 Email: marketing@amwins.com Website: www.amwins.com ■ Markets Offered: Excess Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Excess WC’ Carriers AmWINS Program Underwriters Contact: Matt McCue Phone: 717-214-7622 Email: matt.mccue@amwins.com Website: www.amwins.com/apu ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various AM Best A- Rated or Higher

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Apex Insurance Services Contact: Robert Hughes Phone: 210-340-8985 ; Fax: 210-340-8986 Email: hughes@apexinsurance.com Website: www.apexinsurance.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory and high excess ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Various National & Regional Carriers Appalachian Underwriters, Inc. Contact: Jonathan Hooven Phone: 888-376-9633 ; Fax: 888-871-7644 Email: marketing@appund.com Website: www.appund.com ■ Markets Offered: USL&H, Workers’ Comp, New Ventures/No Prior Eligible ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Carriers Represented: Multiple A.M. Best ‘A’ Rated Carriers. Exclusive Programs for Healthcare, Trucking and Construction Risks.

Applied Underwriters

Applied Underwriters, Inc. Insurance Journal Cover Tip

Live 7.875” x 7.5” Phone: 877-234-4450 ; Trim Fax: 877-234-4452 8.125” x 7.75” Email: sales@auw.comBleed 8.375”x 8” Website: www.auw.com ■ Markets Offered: Workers’ Comp, EPLI, E&O, D&O, Payroll ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted Applied Underwriters

AU Golf IJ Cover Tip

Contact: Sheila Gallagher

P: 707-395-0645

Email: sgallagher@auw.com

Atlas General Insurance Services Contact: Marketing Dept. Phone: 877-662-8527 ; Fax: 619-814-8914 Email: info@atlas.us.com Website: www.atlas.us.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers Berkshire Hathaway Homestate Companies Contact: Customer Service Phone: 888-495-8949 ; Fax: 415-675-5482 Email: marketingsf@bhhc.com Website: www.bhhc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted Bonding and Insurance Specialists Agency, Inc. Contact: Bill Ballay Phone: 800-346-1031 ; Fax: 708-598-6686 Email: wballay@bisa-inc.com Website: www.bisa-inc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Various

Boston Insurance Brokerage, Inc .

Contact: Bart Seifert - 617-556-7030 Email: bseifert@bostonbrokerage.com Contact: Julie Skusevich - 617-556-7059 Email: jskusevich@bostonbrokerage.com Website: www.bostonbrokerage.com ■ Markets Offered: Guaranteed Cost, Excess, Rating Plans ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Limits: Standard ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIM Mutual, Atlantic Charter, Amerisafe, AmTrust, Axiom, Chartis, Crum & Forster, Employers, Guard, Hartford, Munich RE (V3), RTW, Republic Indemnity, Sentry, Tangram (Prosight), and Travelers

Arrowhead General Insurance Agency, Inc.

Contact: Marketing Dept. Phone: 800-669-1889 ; Fax: 619-881-8695 Email: MarketingInfo@ArrowheadGrp.com Website: www.ArrowheadGrp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Carrier ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers Artex Risk Solutions, Inc. Contact: Phillip Giles Phone: 910-295-9800 Email: phil_giles@artexrisk.com Website: www.artexrisk.com ■ Markets Offered: Excess WC, Workers’ Comp, Guaranteed Cost & Alternative Risk (Group Captives) ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Several All “A” rated or higher

The workers comp division works with agencies across the country helping to place mono-line coverage. Boston Insurance Brokerage has relationships with markets to write retail, wholesale, service, manufacturing, construction, home healthcare & social service risks. Whether your agency has a small single state risk or multi-state complex account, we are able to offer the expertise & professionalism to place your coverage.

May 20, 2013 INSURANCE JOURNAL-NATIONAL REGION | 29

2013 Workers’ Compensation Directory Breckenridge Insurance Services Contact: Virgil Anderson Phone: 559-221-2050 Email: vanderson@breckis.com Website: www.breckis.com ■ Markets Offered: Workers’ Comp, MGU, Wholesale Brokerage ■ Phone Inquiries: Accepted ■ Minimum Premium: $7,500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Alaska National, AmTrust, Berkshire Hathaway, Chartis/AIG, Everest, First Comp, Republic Indemnity, Tower Brownyard Group Contact: Jennifer Brownyard Phone: 800-645-5820 ; Fax: 631-666-5723 Email: info@brownyard.com Website: www.brownyard.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted

Brownyard Programs, Ltd.

Contact: Pam Van Cott Phone: 631-581-9300 ; Fax: 631-581-9385 Email: pvancott@brownyardprograms.com Website: www.brownyardprograms.com ■ Markets Offered: Workers’ Comp for Security Guards, Investigators, Alarm Companies ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: QBE Group Companies Specialty Insurance - GL, Professional, Umbrella, Auto & WC Programs for the Private Security Industry including security guard, private investigation, background screening, alarm, and other electronic security companies. Builders & Tradesmen’s Ins. Services, Inc. Contact: Michelle Losee Phone: 916-772-9200 ; Fax: 916-772-9292 Email: mlosee@btisinc.com Website: www.btisinc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AR AZ CA CO IA ID KS LA MN MO MT NE NM NV OR SD TX UT ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, ICW, CNA, Travelers, Zenith C C Roy Insurance Brokers, Inc. Phone: 800-443-6566 ; Fax: 925-460-9484 Email: sheric@ccroybrokers.com Website: www.artisanwc.com ■ Markets Offered: Artisan Contractors, Auto Repair & Body Shops Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: CA ■ Carriers Represented: Preserver (Tower Group) and Guard Insurance Group (Berkshire Hathaway)

Care Providers Insurance Services, LLC Contact: Priscilla Archer Phone: 800-761-7072 Ext. 1313 ; Fax: 800-224-7145 Email: parcher@nsminc.com Website: www.ins-cps.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: None ■ Limits: EL $1M ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Texas - Open Safety Group accessed through Texas Mutual

Comp-Care Brokerage, Inc. Contact: Jeff Byrnes Phone: 732-453-8766 ; Fax: 732-680-4070 Email: jeff@comp-carebrokerage.com Website: www.comp-carebrokerage.com ■ Markets Offered: Managed Care, Pay As You Go, WC ■ Phone Inquiries: Accepted ■ Minimum Premium: $400 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: NJ ■ Admitted Status: Admitted ■ Carriers Represented: Hartford, Guard, Guarantee ARI, Travelers, Utica, CNA, Tower, ACE

Compass Insurance Group of Agencies

Chamber Insurance Agency Services Contact: John Ferreira Phone: 973-669-2309 ; Fax: 973-731-2288 Email: jpferreira@chamberagent.com Website: www.chamberagent.com ■ Markets Offered: Excess Workers’ Comp, USL&H, WC ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, CNA, Hartford, Travelers, MunichRe Charity First Insurance Services, Inc. Contact: Riley Binford Phone: 800-352-2761 ; Fax: 415-536-4033 Email: riley_binford@charityfirst.com Website: www.charityfirst.com ■ Markets Offered: Workers’ Comp, Nonprofits Only ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted in most states ■ Carriers Represented: Travelers Insurance Company CID Insurance Programs, Inc. Contact: Caesar Serrano Phone: 800-922-7283 ; Fax: 619-593-2008 Email: caesar@cidinsurance.com Website: www.cidinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO NM NV TX OR ■ Admitted Status: Admitted ■ Carriers Represented: over 25 Insurance companies

Commercial Sector Insurance Brokers

Contact: Carl Thompson Phone: 205-776-2625 ; Fax: 205-776-1619 Email: cthompson@comsectorins.com Website: www.comsectorins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Carriers Represented: Chartis, Amerisafe, Am Trust, Crum & Forester, Munich, Zurich Commercial Sector is a National Wholesaler. We specialize in assisting retail agents solve P & C problems, including Workers’ Comp.

30 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

Contact: Paul Laufer Phone: 818-507-1980 ; Fax: 818-545-3818 Email: plaufer@compasseands.com Website: www.compasseands.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: 20+ Markets

Construction Suppliers Association Self Insured Fund Contact: Blake Cone Phone: 678-674-1860 Email: blakecone@gocsa.com Website: www.csasif.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $2M/$2M/$2M ■ Brokered Business: Accepted ■ States Entered in: GA Continental Brokers, Inc. Contact: Collier Simpson Phone: 866-386-4136 ; Fax: 601-898-4793 Email: cs@continentalbrokers.biz Website: www.continentalbrokers.biz ■ Markets Offered: Health Insurance, Managed Care, HMO, Short Term Medical, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: CNA, Hartford, Assurant, BCBS (some states) United HealthCare, Colonial Continental Risk Insurance Services Contact: Jeana Ramos Phone: 866-699-2747 ; Fax: 209-365-6040 Email: jeana@continentalriskins.com Website: www.continentalriskins.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: AK AR AZ CA CO FL GA ID NC NV NY OR TX UT WA ■ Admitted Status: Admitted & Non-admitted Continental Underwriters, Inc. Contact: C. Preston Herrington, III Phone: 804-643-7800 ; Fax: 804-643-5800 Email: preston@contund.com Website: www.contund.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: 500/500/500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple

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2013 Workers’ Compensation Directory Costanza Insurance Agency, Inc. Contact: Brian Costanza Phone: 800-346-0942 ; Fax: 972-991-2139 Email: b.costanza@cia-tx.com Website: www.costanzainsurance.com ■ Markets Offered: Workers’ Comp, GL, Comm Auto, Crime, EPL, EBL, Umbrella ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Zurich Insurance Co. CoverXSpecialty Contact: John Bures Phone: 248-358-4010 ; Fax: 248-358-2459 Email: coverxuw@coverx.com Website: www.coverx.com ■ Markets Offered: Workers’ Comp for Security Guard & Alarm Contractors ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Non-admitted ■ Carriers Represented: Travelers Empire Pacific Sovereign, LLC Contact: Gary Hargis Phone: 877-535-0888 ; Fax: 503-924-2889 Email: gary.hargis@empirepac.com Website: www.sovereignbrokers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,000 ■ Limits: $1M/$1M/$1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted

Empire Underwriters, LLC

Contact: Workers Comp Underwriting Toll Free: 800-758-8113 Phone: 813-448-9300 ; Fax: 813-448-9310 Email: quotes@empireunderwriters.com Website: www.empireunderwriters.com ■ Markets Offered: Standalone Workers’ Comp, Staffing Workers Comp, Alternative Risk - PEO ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $4,000 ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Zurich, AIG, Guard, Benchmark and many others Empire Underwriters is a National Insurance Wholesaler, Excess and Surplus lines facility and Program Manager. Our organization is dedicated to the success of agents and brokers nationwide. Employer’s Comp Associates, Inc. Contact: Aaron Johnson Phone: 972-386-0150 ; Fax: 972-386-6350 Email: ajohnson@empcompinc.com Website: www.EmpCompInc.com ■ Markets Offered: Workers’ Comp, Workers’ Comp Alternative ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: TX ■ Carriers Represented: Berkshire Hathaway, Great American, American Hallmark, Texas Mutual and many others

Employers Assurance Company Contact: Customer Service Phone: 888-682-6671 ; Fax: 800-371-8204 Email: customerservice@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by State ■ Limits: Varies by State ■ Brokered Business: Accepted ■ States Entered in: Most States Employers Compensation Insurance Company (ECIC) Contact: Customer Service Phone: 888-682-6671 ; Fax: 818-549-4770 Email: customerservice@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by State ■ Limits: Varies by State ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO FL ID IL MT NV OR PA TX UT Employers Insurance Company of Nevada (EICN) Contact: Customer Service Phone: 888-682-6671 ; Fax: 702-671-7175 Email: customerservice@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: $500k, $1M, $2M ■ Brokered Business: Accepted ■ States Entered in: NV

Introducing our new Property Managers Program A workers’ comp program designed for building owners and professional managers With minimum premiums of $750, you can offer your team a better, more comprehensive Workers’ Compensation program. This program is available to property managers, condo and homeowner associations, and owner-operated buildings. • Experience Mods to 1.15 are acceptable. • Convenient, direct bill with multiple payment options. • Available in most states.

888.548.2465 A subsidiary of

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3/26/13 8:16 PM

May 20, 2013 INSURANCE JOURNAL-NATIONAL REGION | 31

2013 Workers’ Compensation Directory Employers Preferred Insurance Company Contact: Customer Service Phone: 888-682-6671 ; Fax: 800-371-8204 Email: customerservice@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by State ■ Limits: Varies by State ■ Brokered Business: Accepted ■ States Entered in: Most States Friedlander Group, Inc. Contact: Cosmo Preiato Phone: 914-694-6000 Ext. 203 ; Fax: 914-694-6004 Email: Cosmop@friedlandergroup.com Website: www.friedlandergroup.com ■ Markets Offered: Workers’ Comp - Multiple Classes ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,500 / $2,500 Restaurants ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Alliance With: New York State Insurance Fund Global Facilities, Inc. Contact: Craig Shapiro Phone: 516-599-3800 ; Fax: 516-599-3930 Email: globalfc@optonline.net ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $0 ■ Limits: 1,000,000 ■ Brokered Business: Accepted ■ States Entered in: AZ CT NJ NY PA ■ Admitted Status: Admitted ■ Carriers Represented: Traveler’s, Guard, Tower GUARD Insurance Group Phone: 570- 825-9900 ; Fax: 570- 823-5930 Email: csr@guard.com Website: www.guard.com ■ Markets Offered: Workers’ Comp & related P&C lines targeting small- to mid-sized accounts ■ Phone Inquiries: Accepted ■ Minimum Premium: No Standard Minimum ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: 31 States plus DC Hamond Safety Management, LLC Contact: Rick Yu Phone: 516-488-2800 Ext. 4219 ; Fax: 516-488-2167 Email: Ryu@hamondgroup.com Website: www.hamondgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Unlimited by state statute ■ Brokered Business: Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Carriers Represented: NYSIF Heydari Financial Group, Inc. Contact: Ali Heydari Phone: 713-953-0404 ; Fax: 713-975-1722 Email: ali@heydarifinancial.com Website: www.heydarifinancial.com ■ Markets Offered: Excess Workers’ Comp, Health Ins., HMO, Managed Care, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Open ■ Brokered Business: Accepted ■ States Entered in: AZ CA FL MD NY TX ■ Admitted Status: Admitted & Non-admitted

Houston International Insurance Group Contact: Cooper Wallach Phone: 713-935-7414 ; Fax: 713-467-8238 Email: cwallach@hiig.com Website: www.hiig.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $100 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: TX ■ Admitted Status: Admitted ■ Carriers Represented: Great Midwest Insurance Company Insential, Inc. Contact: Dennis Kasprowicz Phone: 888-571-6160 ; Fax: 708-731-4040 Email: dkasprowicz@insential.com Website: www.insential.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered: All States ■ Admitted Status: Admitted ■ Carriers Represented: Gateway Insurance Center Special Risks, Ltd. Contact: Ludmila Koval Phone: 888-773-7475 ; Fax: 413-781-0050 Email: lkoval@specilarisksltd.com Website: www.specialrisksltd.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $350 ■ Brokered Business: Not Accepted ■ States Entered: CT MA ME NH NY RI VT ■ Admitted Status: Admitted ■ Carriers Represented: The Hartford, Guard Insurance Group International Excess Companies Contact: : Kenneth Kukral Phone: 216-797-9700 Ext. 2079 ; Fax: 888-291-1382 Email: kennethkukral@intlxs.com Website: www.intlxs.com ■ Markets Offered: Excess Workers’ Comp, PEOs, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class, as low as $250 ■ Limits: Statutory + increased limits & excess limits ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic (monoline OH stop gap available) ■ Admitted Status: Admitted ■ Carriers Represented: Various International Facilities Ins. Services, Inc. Contact: Viviane Woodcock Phone: 213-833-0288 Ext. 306 Email: VW@ifisla.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AL AR CA CO FL IL MA NE NM NV NY OK PA SC TX UT WA ■ Admitted Status: Admitted ■ Carriers Represented: 12+ A Rated Carriers

32 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

IPA Risk Management, LLC Contact: Greg or Chase Phone: 201-797-1084 x 201 ; Fax: 201-797-1076 Email: c.heitmann@ipariskmanagement.com Website: www.ipariskmanagement.com ■ Markets Offered: Health Insurance, HMO, Managed Care, PEO, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA CT DE FL MD NC NJ NY PA SC TX ■ Admitted Status: Admitted & Non-admitted ■ Alliance With: Yes - health benefits are integrated with workers’ comp benefits Ironwood Brokers & Insurance Marketing Contact: Michelle Newsom Phone: 949-487-0057 ; Fax: 949-271-4800 Email: mnewsom@ironwoodbrokers.com Website: www.ironwoodbrokers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA TX ■ Admitted Status: Admitted ■ Carriers Represented: ICW, AIG, Everest, Zurich, Munich, Travelers, Republic Underwriters, Employers, Southeast Personnel Irving Weber Associates, Inc. Contact: Adam Weber Phone: 800-243-1811 ; Fax: 888-622-0414 Email: Info@iwains.com Website: www.iwains.com ■ Markets Offered: All Lines including Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various Irwin Siegel Agency, Inc. Contact: Cindy Leon Phone: 800-622-8272 ; Fax: 845-796-3661 Email: siegel@siegelagency.com Website: www.siegelagency.com ■ Markets Offered: WC for Social Service Risks ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ($3,500 - CA) ■ Brokered Business: Not Accepted ■ States Entered in: All States except OH ND WA WY ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AIG

Izzo Insurance Services, Inc. Contact: Mike Jones Phone: 800-800-1704 ; Fax: 708-452-1700 Email: MJones@IzzoInsurance.com Website: www.IzzoInsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: CNA, ICW Group, Hartford, Zurich, Star Insurance, Employers, QBE Insurance, Zenith, Williamsburg National Insurance

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2013 Workers’ Compensation Directory J.W. Terrill Inc. Contact: Duke Niedringhaus Phone: 314-594-2622 Email: dniedringhaus@jwterrill.com Website: www.jwterrill.com ■ Markets Offered: Excess Workers’ Comp For Self Insured Entities & Group Captives ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Brokered Business: Accepted ■ States Entered in: All States

LowRateWorkComp Contact: Paul Farhood Phone: 850-625-5190 ; Fax: 888-625-2628 Email: gotcomp@yahoo.com Website: www.LowRateWorkComp.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States except WA

Jimcor Agencies Contact: Jerry Zaloom Phone: 201-573-8200 Ext. 1201 ; Fax: 201-573-8820 Email: jzaloom@jimcor.com Website: www.jimcor.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Limits: Any Applicable per State ■ Brokered Business: Accepted ■ States Entered in: All Nonmonopolistic States ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, Travelers, CNA, Tower, Crum & Forster, Amtrust, Magna Carta

Maritime Program Group Contact: Damon Pesce Phone: 800-366-8086 ; Fax: 860-399-3695 Email: dpesce@maritimepg.com Website: www.maritimepg.com ■ Markets Offered: USL&H, Worker’s Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Chartis Longshoreman & PMA

Keller & Co, Inc. Contact: Rob Martin Phone: 716-874-1644 ; Fax: 716-874-4920 Email: rmartin@kellerandco.com Website: www.kellerandco.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: NJ NY PA ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various

KF&B, Inc.

Contact: Marni Sawicki Phone: 877-242-7700 Ext. 283 ; Fax: 818-242-6800 Email: msawicki@kfbins.com Website: www.kfbins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $7,500 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: The PMA Insurance Group LIG Marine Managers Contact: Karen Tischler Phone: 727-578-2800 ; Fax: 727-578-9977 Email: KLT@LIGMarine.com Website: www.LIGMarine.com ■ Markets Offered: USL&H (Longshore), Workers’ Comp, MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various Loveland & Smart Ins. Services, Inc. Contact : Joe Loveland Phone: 916-844-0349 ; Fax: 916-362-5595 Email: Joe@lovelandsmart.com Website: www.lovelandsmart.com ■ Markets Offered: Excess WC for Self Insured Entities & Excess GL & Auto Liab for Pubic Entities ■ Phone Inquiries: Accepted ■ Minimum Premium: $20,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: AR AZ CA CO GA ID IL LA MI MO MS NV NY OH OK OR PA UT WA ■ Admitted Status: Admitted ■ Carriers Represented: All Excess WC Carriers

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MarketScout Contact: Chris Kerr Phone: 972-934-4200 ; Fax: 972-934-4299 Email: contactus@marketscout.com Website: www.marketscout.com ■ Markets Offered: Health Ins., Managed Care, Trucking, USL&H, Work Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Over 20 National, Regional & Specialty Carriers Maverick Commercial Insurance Services Contact: Mario Gomez Phone: 818-223-0011 ; Fax: 818-223-0012 Email: mariogomez@maverickinsure.com Website: www.maverickinsure.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp, PEO ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1mil/$1mil/1mil ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: AIG, QBE, Zenith, AmTrust, Applied Underwriters, Companion, Dallas National, Everest, Starr Indemnity; Tower & Preserver Insurance, Zurich, Guarantee Insurance Co, Various PEO markets. Maxim Insurance Group Contact: Scott Carde Phone: 813-689-5105 ; Fax: 813-354-2336 Email: mail@maximinsurancegroup.com Website: www.maximinsurancegroup.com ■ Markets Offered: Managed Care, USL&H, Workers’ Comp, Repatriation & Foreign Coverage ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,500 ■ Limits: Statutory and up to $2M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers: Ameritrust, AmTrust, Associated Industries, Bridgefield Casualty, Bridgefield Employers, Business First, AIG, OptaComp, Retail First, Rochdale, Security National, Star, Technology, Wesco, Williamsburg

McClelland and Hine, Inc. Contact: Amicia Hine Phone: 210-293-6240 ; Fax: 210-293-6318 Email: amicia@mhi-tx.com Website: www.mhi-tx.com ■ Markets Offered: Occ. Acc., Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: TX ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Travelers, Hartford, Charits, Texas Builders, AmTrust, Zenith McLeckie Insurance Group Contact: Bill McLeckie Phone: 903-897-9090 ; Fax: 760-462-1696 Email: bill@mcleckie.com Website: www.mcleckie.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: AR CA FL LA NV OK TX WA ■ Admitted Status: Admitted ■ Carriers Represented: Travelers and various others.

Meadowbrook Insurance Group Contact: Phillip Gajewski Phone: 248-358-1100 ; Fax: 248-358-1614 Email: pgajewski@meadowbrook.com Website: www.meadowbrook.com ■ Markets Offered: Excess Workers’ Comp, Specialty/Niche Programs, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Program ■ Limits: Varies by Program ■ Brokered Business: Yes; Varies by Program ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Star. Williamsburg, Ameritrust, Savers P&C, Century Surety, ProCentury

MEMIC Group

Contact: Wendy Bowden Phone: 207-791-3370 ; Fax: 207-482-4173 Email: wbowden@memic.com Website: www.memic.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Varies ■ States Entered in: All Non-monopolistic States ■ Admitted Status: Admitted Specialists in workers’ compensation. Our unique approach provides policyholders with a safety consultant and other services that will help them to improve their safety record, leading to sustainable savings over the long run.

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2013 Workers’ Compensation Directory Midlands Oklahoma City, OK & Addison, TX Phone: 800-800-4007 ; Fax: 405-840-5432 Email: marketing@midman.com ■ Markets Offered: Excess Workers’ Comp, Primary Workers’ Comp, Texas Non-Subscriber, Property & Casualty Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AM Best “A” Rated Carriers Midwest Employers Casualty Company Contact: Renée Lunceford Phone: 636-449-7022 ; Fax: 636-449-7199 Email: rlunceford@mwecc.com Website: www.mwecc.com ■ Markets Offered: Excess Workers’ Comp, Large Deductible, Reinsurance, Self-Insured Bonds ■ Phone Inquiries: Accepted ■ Minimum Premium: $20,000 ■ Limits: Up to Statutory ■ Brokered Business: Accepted ■ States Entered in: All States Midwestern Insurance Alliance, LLC Contact: Robert Etzler Phone: 502-429-9990 ; Fax: 502-426-7067 Email: retzler@mwiainsurance.com Website: www.midwesterninsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA IN KY MO TN ■ Admitted Status: Admitted Mobile Food Vendors Insurance Contact: Chris Whorton Phone: 888-678-6384 ; Fax: 512-372-2284 Email: chris@mfvinsurance.com Website: www.mfvinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $500 ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Most National Advantage Insurance Services, Inc. Contact: Clifford Mapes Phone: 714-505-1015 ; Fax: 714-505-1025 Email: clifford@naisins.com Website: www.naisins.com ■ Markets Offered: Truckers Occup. Acc. ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,200 ■ Brokered Business: Accepted ■ States Entered in: AZ CA TX ■ Carriers Represented: U.S. Specialty Ins. Co. NBIS Contact: Peter Bellnier Phone: 770-257-1777 ; Fax: 770-257-1500 Email: contactus@nbis.com Website: www.NBIS.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: 100/500/100 500/500/500 1mm/1mm/1mm ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted all states ■ Carriers Represented: Tower Insurance Group

Networked Insurance Agents Contact: Joann Webb Phone: 530- 274-6934 ; Fax: 888-843-2535 Email: Joann.Webb@networkedins.com Website: www.networkedins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Sequoia, Hartford, Travelers, Preferred Employers, Guard, Tower, Meadowbrook, Everest, CNA, First Comp, Republic, Employers, Fireman’s Fund, Golden Eagle, ACE, Chartis, Chubb Norman-Spencer Agency, Inc. Contact: Corky Breeden Phone: 937-432-1631 ; Fax: 937-432-1635 Email: corkybreeden@norman-spencer.com Website: www.norman-spencer.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp, Dividend Work Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Zenith, Amerisafe, AmTrust Northern Star Insurance Agency, LLC Contact: Stevan Feemster Phone: 858-210-0785 ; Fax: 714-938-0014 Email: sfeemster@northernstarins.com Website: www.northernstarins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: Guard, Zurich, Companion, Ullico, Everest National Number One Insurance Agency, Inc. Contact: Barbara Lobdell Phone: 508-634-7362 ; Fax: 508-634-2931 Email: blobdell@massagent.com Website: www.massagent.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: 100 / 500 / 100 + ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust Group, Norfolk & Dedham Group, The Hartford Omega Insurance Solutions Contact: Keith Steverson Phone: 866-997-0711 ; Fax: 888-611-9598 Email: keith@omega4agents.com Website: www.Omega4agents.com ■ Markets Offered: USL&H, Workers’ Comp, GL, Commercial Auto, Small BOPs ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: 17 WC carriers/4 PEOs – Writing most classes depending on state.

34 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

Oryx Insurance Brokerage, Inc. Contact: Tim Cappellett Phone: 607-724-0173 ; Fax: 607-724-7266 Email: tcappellett@oryxinsurance.com Website: www.oryxinsurance.com ■ Markets Offered: Workers’ Compensation, GL, BA ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Brokered Business: Not Accepted ■ States Entered in: CT DE IL MD NJ NY PA VA VT ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, CV Starr & BerkleyNet

Pacific Excess Insurance Marketing

Contact: Barry Colburn Phone: 800-222-5582 ; Fax: 714-228-7899 Email: BColburn@pacificexcess.com Website: www.pacificexcess.com ■ Markets Offered: Workers’ Comp, All Property & Casualty Risks ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA AZ NV ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, The Zenith, Tower Select and many more. Pacific Excess Insurance Marketing is a Wholesaler/General Agent with access to many Standard, Surplus Lines and Workers’ Compensation Markets. Patriot National Insurance Group Contact: Nicole Brewer Phone: 954-670-2900 ; Fax: 954-252-3758 Email: marketing@Pnigroup.com Website: www.pnigroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted Phoenix Risk Management Insurance Services, Inc. Contact: Michele Mayer Phone: 877-579-1500 ; Fax: 877-579-1600 Email: mmayer@phoenixrmis.com Website: www.phoenixrmis.com ■ Markets Offered: Workers’ Comp, Professional Liability & General Liability ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: CompWest, Zurich, AIG, Companion, First Comp, AmTrust, Everest, Star, Travelers, Meadowbrooks, Midwest Employers and Safety National. PMC Insurance Group Contact: Caragh Frye Phone: 781-449-7744 ; Fax: 781-449-7889 Email: info@pmcinsurance.com Website: www.pmcinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Carriers Represented: Chartis, Amtrust, BerkleyNet, Hartford, Guard, Tower, Seabright, Munich Re

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2013 Workers’ Compensation Directory

Preferred Property Programs

Contact: Ken Hager Phone: 888-548-2465 ; Fax: 732-946-0547 Email: info@ppp-quotes.com Website: www.ppp-quotes.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: 100/500/100 ; 500/500/500 ; 1,000/1,000/1,000 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: A- X rating by AM Best Program Brokerage Corporation Contact: Cynthia O’Brien Phone: 212-338-2907 ; Fax: 917-934-4585 Email: cobrien@programbrokerage.com Website: www.programbrokerage.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, AmTrust, Ace, Travelers, Tower, Hartford, Guard, Zurich, PMA Red Rock Financial Group, Inc. Contact: Lawrence Levine Phone: 520-975-2505 ; Fax: 1-877-895-9011 Email: info@redrockfg.com Website: www.redrockfg.com ■ Markets Offered: Health Insurance, Payroll, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $10,000,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted Risk Alternatives & Management Contact: Shane Maloney Phone: 770-424-5770 ; Fax: 770-424-5774 Email: shane@ram-insurance.com Website: www.ram-insurance.com ■ Markets Offered: 24 Hour Policy, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: DNIC, Lion, AmTrust, Munich Reed, Zurich, Amerisafe, SE Leasing, Companion, Chartis Risk Transfer Holdings Contact: Starlene Chupp Phone: 866-481-9363 ; Fax: 866-481-9969 Email: schupp@risktransferinc.com Website: www.risktransfer.com ■ Markets Offered: EPLI, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $50,000 ■ Limits: $100K / $500K / $100K ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Alliance With: Multiples

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Risk Transfer Programs, LLC Contact: Dino Fabrizio Phone: 321-281-0702 ; Fax: 407-481-9969 Email: dfabrizio@risktransferprograms.com Website: www.risktransferprograms.com ■ Markets Offered: EPLI, PL/GL, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by program ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Tower Group Companies, Amtrust Group & Allied World Assurance Company

RoamNet Insurance Marketing Programs

Contact: Patty Lawson Phone: 877-272-0333 ; Fax: 909-987-2245 Email: pattyl@roamnetins.com Website: www.roamnetins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,500 ■ Limits: High limits with small premiums ■ Brokered Business: Accepted ■ States Entered: AZ CA CO GA ID IL NM NV OR TX UT ■ Admitted Status: Admitted ■ Carriers Represented: Republic Indemnity, Traveler’s, AIG, Hartford, Hanover & Zenith Roundstone Management Contact: Jennifer Boerio Phone: 440-617-0333 ; Fax: 866-848-9496 Email: info@roundstoneinsurance.com Website: www.roundstoneinsurance.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Brokered Business: Accepted ■ States Entered in: All States Russell Bond & Co., Inc. Contact: Derek Bucciferro Phone: 800-333-7226 ; Fax: 800-677-6779 Email: dbucciferro@russellbond.com Website: www.russellbond.com ■ Markets Offered: 24 Hour Policy, Excess EL Public Entities (NY Only), Excess Workers’ Comp, Health Ins, HMO, Managed Care, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M EL - Statutory WC ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Tower, ACE, Chartis, Crum + Forster, Safety National, Rochdale, Capitol, MidWest, Arch S.H. Smith & Company, Inc. Contact: Thomas Ferracci, CPCU, ARM Phone: 860-656-1204; Fax: 800-329-7648 Email: Thomas_Ferracci@shsmith.com Website: www.shsmith.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Negotiable ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: AIG/Chartis, Amerisafe, AmTrust, Guard, Tower, Zurich, Crum & Forster, Applied, BerkleyNet

Sabal Insurance Group Contact: Ian Norris Phone: 954-828-9948 ; Fax: 954-828-9949 Email: info@sabalinsurance.com Website: www.sabalinsurance.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Carriers Represented: Travelers Casualty & Surety, Bridgefield Employers, Bridgefield Casualty, Firstcomp, Guarantee, Zurich, Chartis, Amtrust, MCIM, FHM Insurance Company Safety National Casualty Corporation Contact: Karla Antrobus Phone: 888-995-5300 ; Fax: 314-995-3843 Email: karla.antrobus@safetynational.com Website: www.safetynational.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by state ■ Limits: Varies by state ■ Brokered Business: Accepted ■ States Entered in: All States & Canada ■ Admitted Status: Admitted SeaBright Insurance Company Contact: Dean Rappleye Phone: 206-269-8500 ; Fax: 206-269-8912 Email: dean.rappleye@sbic.com Website: www.sbic.com ■ Markets Offered: ADR, MEL, USL&H, Workers’ Comp, OCIP/CCIP ■ Phone Inquiries: Accepted ■ Minimum Premium: As low as $75,000 ■ Limits: $1M EL and MEL ■ Brokered Business: Not Accepted ■ States Entered in: 49 States and DC ■ Admitted Status: Admitted ■ Alliance With: IMPACT SFA-5Star Specialty Programs Contact: Dee Dee Bloom Phone: 702-740-8470 ; Fax: 702-740-8472 Email: dd.bloom@5starsp.com Website: www.5starsp.com/SFA/default.aspx ■ Markets Offered: Excess Workers’ Comp, Large Deductibles, Buy-Down/Layer Coverage, Self- Insurance Bonds, Cash Flow Only Policies ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Excess WC Carriers Sports & Fitness Insurance Corporation (SFIC) Contact: Kim Tucker Phone: 800-844-0536 ; Fax: 601-853-6141 Email: askus@sportsfitness.com Website: www.sportsfitness.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Safeco, Hartford State Compensation Insurance Fund of California Contact: Customer Service Phone: 888-STATEFUND (888-782-8338) Email: webmaster@scif.com Website: www.statefundca.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Depends on class ■ Brokered Business: Accepted ■ States Entered in: CA ■ Alliance With: State Fund Medical Provider Network

May 20, 2013 INSURANCE JOURNAL-NATIONAL REGION | 35

2013 Workers’ Compensation Directory StateFund First Contact: Riley Binford Phone: 415-536-8438 ; Fax: 415-536-6003 Email: riley_binford@statefundfirst.com Website: www.statefundfirst.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: California State Compensation Insurance Fund Sun Coast General Insurance Agency Contact: Jeff Yeskin Phone: 949-768-1132 ; Fax: 949-768-4045 Email: jyeskin@suncoastinsurance.com Website: www.SunCoastInsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,500 ■ Brokered Business: Not Accepted ■ States Entered in: CA SWBC Contact: Lisa Pinto Phone: 210-525-1241 ; Fax: 210-321-7530 Email: swbcinfo@swbc.com Website: www.swbc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States

Swett & Crawford

Contact: Ron Boudreaux - National WC Practice Leader Phone: 612-334-2393 Email: Ron_Boudreaux@Swett.com Offices: Please visit www.swett.com to access our WC facilities through any of our 39 offices countrywide. ■ Markets Offered: Workers Compensation Guaranteed Cost, Paid and Incurred loss retro, USL&H and Jones Act/M E L, Excess WC ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Specialties: Temp Staffing, Healthcare, Trucking, USL&H, General Classes; Construction, Manufacturing, Service, Retail/Wholesale ■ Carriers Represented: Chartis, Berkshire Hathaway, SeaBright, Amerisafe, Hartford, AmTrust, Berkley Net, Republic, Midwest Employers, Safety National, Liberty Mutual, CNA, Tower, C V Starr, Zurich, Companion, Hartford , Guarantee Exceptional access to more than 200 standard and specialty carriers, domestic and foreign. Many in-house binding authorities. Innovative, exclusive insurance programs for niche businesses and industries. Nearly 800 brokers, underwriters and support professionals. Tangram Insurance Services Contact: Rekha Skantharaja & John Shea Phone: 707-775-2662 & 707-775-2660 rekha@tangramins.com & jshea@tangramins.com Website: www.tangramins.com ■ Markets Offered: Workers’ Comp for Nonprofits ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Work Comp Limits ■ Brokered Business: Accepted ■ States Entered in: CA IA IL IN MN MO MS ■ Admitted Status: Admitted ■ Carriers Represented: Everest National

Target Managers Insurance Services, Inc. Contact: Michael Kiger Phone: 702-588-5300 ; Fax: 702-588-5310 Email: Info@TMI-Group.com Website: www.tmi-group.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AL AR AZ CA CO GA IL IN LA MD MS NE NJ NM NV OK OR TN TX UT WA WI ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, CNA, Employers, Explorer, ICW, Praetorian, QBE, UBIC, Zurich & many others. TEE & GEE Group Contact: Steve Goldberg Phone: 972-590-7000 ; Fax: 972-590-7002 Email: Receptionist@teeandgeegroup.com Website: www.teeandgeegroup.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp including PEO & Staffing Business ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory WC ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Amerisafe, Chartis, Employers, Great Midwest, Guard, Guarantee, LUA, SUNZ, Tower, ULLICO Tejas American General Agency Contact: Bart Koch Phone: 888-999-8242 ; Fax: 512-342-2803 Email: marketing@taga1.com Website: www.taga1.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Not Accepted ■ States Entered in: AR LA NM OK TX ■ Admitted Status: Admitted ■ Carriers Represented: Accident Fund, AmTrust, Chartis, Employers, Hanover, Praetorian Insurance Co, Service Lloyds, Texas Builders, Travelers Texas Mutual Insurance Company Contact: Customer Service Phone: 800-859-5995 ; Fax: 512-224-8585 Email: information@texasmutual.com Website: www.texasmutual.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Competitive premiums ■ Brokered Business: Accepted ■ States Entered in: TX Texas Oil & Gas Association Workers’ Comp Safety Group Contact: Jim Sierra Phone: 512-478-6631 ; Fax: 512-472-3859 Email: jsierra@txoga.org Website: www.txoga.org ■ Markets Offered: Oil & Gas Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $0 ■ Brokered Business: Accepted ■ States Entered in: TX ■ Admitted Status: Admitted ■ Carriers Represented: Texas Mutual Ins. Company

36 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

The American Equity Underwriters, Inc. Contact: Julie Bland Phone: 251-690-4252 ; Fax: 251-690-4299 Email: julie.bland@amequity.com Website: www.amequity.com ■ Markets Offered: USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Federal Acts - Statutory, EL - $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: N/A, U.S. Dept. of Labor Approved ■ Carriers Represented: U.S. Department approved carrier for USL&H and extensions The Hamilton Wharton Group, Inc. Contact: W. Taylor Phone: 212-344-6000 ; Fax: 212-344-0007 Email: wtaylor@hamiltonwharton.com Website: www.hamiltonwharton.com ■ Markets Offered: Workers Comp for Nursing Homes and Assisted Living Facilities ■ Phone Inquiries: Accepted ■ Minimum Premium: $30,000 ■ Brokered Business: Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Carriers Represented: NY State Insurance Fund – Safety Group 580 The Holdren Insurance Group, Inc. Contact: Chuck Holdren Phone: 310-356-5800 ; Fax: 310-356-5801 Email: chuck@theholdrengroup.com Website: www.theholdrengroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: One monoline WC carrier for our exclusive gun range program. The Mechanic Group, Inc. Contact: Marc Katz Phone: 845-735-0700 ; Fax: 845-735-8383 Email: mkatz@mechanicgroup.com Website: www.mechanicgroup.com ■ Markets Offered: Workers’ Comp and all other lines for Security Guards, Alarms and Investigators. ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: All ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: The Hartford, Chartis, Magna Carta Truckers Insurance Associates Contact: Paulette Wheeler Phone: 800-652-9515 ; Fax: 515-276-1418 Email: pwheeler@truckers-insurance.com Website: www.truckers-insurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $ 25 ■ Brokered Business: Not Accepted ■ States Entered in: AR AZ CO IA IL IN KS MI MN MO NE OK SD TN TX UT WI ■ Admitted Status: Admitted ■ Carriers Represented: Travelers/Northland, and Dakota Truck Underwriters

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2013 Workers’ Compensation Directory U.S. Risk Insurance Group, Inc. Contact: Julie Byington Phone: 800-232-5830 ; Fax: 214-265-4976 Email: julieb@usrisk.com Website: www.usrisk.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted Unisource Program Administrators Contact: Lana Potts-Buri Phone: 941-308-1918 ; Fax: 877-817-8099 Email: Lana.Potts-Buri@UnisourcePA.com Website: www.UnisourcePA.com ■ Markets Offered: Workers’ Comp and P&C Markets ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Amerisafe, CastlePoint, Chartis, Employers, FFVA, ICW, LION, Meadowbrook, Normandy Harbor, eQBE, Tower Group, V3 Insurance Partners USX/S Contact: Dave Stahl Phone: 800-574-8797 ; Fax: 440-888-7380 Email: brokers@usxs.net Website: www.USXS.net ■ Markets Offered: Excess Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Midwest Employers, Safety National

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Voce Insurance, Inc. Contact: Mitch Naku Phone: 424-204-5484 ; Fax: 424-204-5484 Email: mitchn@voceinsurance.com Website: www.voceins.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA FL ■ Admitted Status: Admitted & Non-admitted

World Wide Specialty Programs

Westrope Contact: Bill Strout Phone: 816-842-8222 ; Fax: 816-842-3081 Email: info@westrope.com Website: www.westrope.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp, Guaranteed Cost, Less Sensitive ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: 25+ Markets, Various Carriers, A rated Willis Programs Contact: Dan Curran Phone: 603-334-3027 ; Fax: 603-334-3090 Email: Daniel.curran@willis.com Website: www.workcompguard.com ■ Markets Offered: Workers’ Comp for Healthcare, Healthcare Staffing, Recycle & Scrap Yards, Resorts, Franchised Auto Dealerships, Light Manufacturing ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: QBE, AmTrust, ICW, AmeriSafe

Contact: Dorothy Taylor ; Robert Thompson Phone: 800-245-9653 or 631-390-0900 Fax: 631-390-0922 Email: dtaylor@wwspi.com ; rthompson@wwspi.com Website: www.wwspi.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $50,000 ■ Limits: State Mandated ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Zurich World Wide Specialty Programs has lead the market with the most comprehensive program for the staffing industry for over 50 years. Our partnership & understanding of how the staffing industry works allows us to be the premier source for all Staffing insurance lines including Staffing Workers’ Comp. Wrap Up Insurance Solutions Contact: Brian Billhartz Phone: 636-489-0185 ; Fax: 636-536-7473 Email: bbillhartz@trekadmin.com Website: www.trekadmin.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp, Wrap Ups ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted

May 20, 2013 INSURANCE JOURNAL-NATIONAL REGION | 37

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Closing Quote

The Time is Now for Agent Licensing Reform

E By Robert Rusbuldt

xcitement is building for critical legislation, the “National Association of Registered Agents & Brokers (NARAB II) Reform Act.” The Independent Agents & Brokers of America (Big “I”) strongly supports this bill that streamlines nonresident licensing of agents and brokers to better serve consumers. The bipartisan bill was introduced by Insurance Subcommittee Chairman Jon Tester, D-Mont., and Ranking Member Mike Johanns, R-Neb., in the U.S. Senate (S. 534) and Insurance Subcommittee Chairman Randy Neugebauer, R-Texas, and Rep. David Scott, D-Ga., in the House (H.R. 1155). The Big “I” is proud that the Senate and House Insurance Subcommittee Chairs are the lead sponsors of legislation that will benefit so many Main Street businesses. NARAB II would increase consumer access to insurance markets and allow agents and brokers operating on a multistate level to avoid duplicative licensing requirements, while maintaining consumer protections. The bill would provide nonresident (beyond one’s home state) insurance agent and broker licensing reform, while preserving the rights of states to supervise and discipline agents and brokers. The Big “I” has long been concerned that as insurance producers operate and obtain licenses in more jurisdictions, the lack of true reciprocity makes compliance challenging, costly and presents burdens that are detrimental to insurance consumers. The lack of reciprocity has cost both Big “I” members and their clients, and it is important that Congress act to address the problem.

38 | INSURANCE JOURNAL-NATIONAL REGION May 20, 2013

Multi-State Problem The average multistate Big “I” member operates in at least eight states, and it is not uncommon for agencies to be licensed in 35 to 50 jurisdictions. NARAB II would be established as a private, nonprofit entity managed by a board of state insurance regulators, and marketplace representatives. The reforms would only apply to marketplace entry. Day-to-day state insurance laws and regulations would not be affected. The legislation would permit producers who are licensed in good standing in their home state to operate in additional states if they satisfy NARAB membership criteria. Producers could remain licensed in the traditional manner, but those operating in multiple jurisdictions could apply for NARAB membership. For producers operating in multiple states, and those who want to expand their operations, NARAB would create one-stop producer licensing for additional licenses beyond the home state. Agencies also could use this new mechanism to streamline their business entity licensing. NARAB II would greatly benefit insurance consumers by: • Easing their access to qualified insurance advisors, • Providing higher and more consistent national consumer protection standards by establishing membership requirements, and • Coordinating with states to NARAB II would establish a central clearinghouse allow agents and for license issuance, and renewal brokers operating and collection of regulatory information on producer activion a multi-state ties.

level to avoid duplicative licensing requirements.

State-Friendly The Big “I” is a leading supporter of state regulation of insurance, and strongly opposes any form of federal regulation of the industry. For this reason that, it is critical to note that NARAB II is state-friendly and deferential to states’ rights. NARAB would not have any federal regulatory power, and states would continue to regulate market conduct, consumer protection and other critical functions. Through NARAB, individuals and agencies would pay the appropriate fees required by each state in which they are licensed, thereby not affecting state revenue. As evidence of how NARAB II is deferential to states’ rights, the legislation has the support and endorsement of the National Association of Insurance Commissioners (NAIC). The Big “I” and the NAIC are pleased to stand side-by-side in support of this common-sense legislation. With overwhelming bipartisan support in both the House and Senate, we are optimistic that NARAB II will soon become a reality. Rusbuldt is president and CEO of the Independent Insurance Agents & Brokers of America. www.insurancejournal.com

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