AAMGA Proud History: Bright Future Volume II by Insurance Journal

Proud History Bright Future Volume II (1991-2011)

A Note from the President

The definition of “sequel” is the continuation of something that was previously done. When we think of sequel, we usually think of a movie that was successful and then was followed up years later with a sequel that, more often than not, isn’t as good as the first movie. This book is a sequel of our first book “Proud History - Bright Future,” which told the story of the development of the American Association of Managing General Agents (AAMGA). The first book starts in 1926 and ends in 1991, covering the first 65 years of the Association. This book covers the next 20 years of successful growth, from 1991 to 2011, bringing us to our 85th anniversary. A lot has changed in the last 20 years. We continue to tackle the tough areas of Education, Governmental Affairs, Automation and Membership Benefits. The Association’s members remain committed to working together to keep the Association ahead of what seems like weekly issues. This book contains the input of our dedicated members and the stories they have to tell. It will be educational and fun, and will bring back many memories. I promise you that this sequel will be just as good, or better than, the first book. You will have a great time reading it.

Wayne G. Forest, Sr. President Forest Insurance Facilities, Inc.

Wayne G. Forest Sr., President, Forest Insurance Facilities, Inc., CMGA, Metairie, LA President, AAMGA

Foreword I have been given the honor of writing a Foreword for this wonderful collection of memories over the last 20 years of the American Association of Managing General Agents (AAMGA). This book serves as a continuation, so to speak, of a book that my father was very instrumental in helping get published in 1992 of the first 65 years of the AAMGA.

because I still, to this day, keep everything associated with the AAMGA, from materials received at the Annual Meeting to any magazine article mentioning the Association, as well as anything else I can get my hands on.

The Board of Directors of the AAMGA charged the Operations Committee with getting this book completed, a task accepted by Chair Gary Peterson and Board Liaison Gary Peterson and Matt Letson. The Committee chose the right person to make sure it was going to be completed and on time, Tom Stamm. Tom then contacted some old friends to help bring it all together. They spent hours researching and writing the various chapters. The book wouldn’t have been completed without the efforts of: Peter Barrett, Chris Behymer, Euclid Black, Kerry Dillard, Wes Duesenberg, Jr., Colleen Earle and Kerry Dillard Kerry’s wedding 1984 Giles-Harris, Jim Roe and Tom Rogan.

My father, Earle Dillard, was very involved in the first book because he was still a very active Past President in the AAMGA. But more importantly, it was because he was a “pack rat” who kept everything concerned with the Association, a fact that earned him the title of Chairman of the Archives Committee. He kept all his name badges—what more needs to be said! I became his “assistant” when I started attending the meetings, charged with remembering to keep a copy of everything I received at any AAMGA meeting. I also had the distinction of being the young buck that would lift the boxes when the Archive display was sent to the Annual Meeting. What I realized, shortly after his passing in December 1995, was that he was grooming me to take over the Archives. I realized I was being taught the passion he had for the Association and to always cherish the memories of it. It was important that I never let the hard work of the many people before and after him be lost. I must have learned well

The gratitude of the “authors,” a term used very loosely, also goes to Dena Kaplan from the Insurance Journal who has worked to keep us on schedule and pointing us in the right direction on our writings. We also thank Amy Seals for editing the work of the inexperienced authors. Thanks ladies!! We hope you enjoy reminiscing about the last 20 years of the AAMGA and that you have learned how much the Association does for its membership.

AAMGA ABOUT THE AAMGA Welcome to the Association of Managing General Agents (AAMGA). The wholesale insurance communityâ&#x20AC;&#x2122;s international trade association was founded in 1926 on the principles of integrity and professionalism. The AAMGA today represents over 500 corporate members and is respected as the leader in and the voice of the wholesale and excess and surplus lines segment of insurance. Its unique logo reflects the tradition and leadership of managing general agents, insurance companies, business service partners, state stamping and surplus line offices all working in concert to effect innovative insurance products and solutions for the marketplace. Membership in the AAMGA is highly selective and, therefore, its admitted ranks are those who demonstrate the highest standards of excellence, experience, integrity, and wholesale insurance company representation. We invite you to visit our website at www.aamga.org.

T able of C ontents

1. Council of Presidents 2. Awards of Distinction 3. AAMGA & Lloyds on London 4. Education 5. Regulation 6. UFO 7. Technology 8. Guide to the AAMGA 9. Committee Structure

C hapter

â&#x20AC;&#x153;Hail to the Chiefâ&#x20AC;?

By Tom Rogan President TBR Insurance Consultants Inc.

By Colleen Giles-Harris Director of Centralized Office Services Scobie Group

AAMGA is unique in that their President is elected by vote of the active membership each year. Those candidates for this office will have served on the AAMGA Board of Directors after having been elected by their peers as Regional Directors; then, advancing to the positions of Eastern and Western Vice Presidents, and in the third year advancing to Senior Vice President for their respective region. The Senior Vice Presidents, then, stand for election as President Elect, to be determined by a majority vote of the active members. The term “stand” as opposed to “run for” is used advisedly by their hard work over the preceding three years, will be recognized by the voting members.

those who were available for interviews. We have also included brief comments from those living Presidents who served prior to 1992 and are mentioned in the previous publication. They are included in the section “Where Are They Now?” One important note requires mention: During the interviews, Council of Presidents members repeatedly, and without exception, thanked the people who “made it happen” for them. The list included their fellow members, colleagues, and friends, but most importantly, their spouses. AAMGA salutes these very special spouses, who were with “their” President every step of the way—through the long travel, endless meetings, and speaking events—and were always supportive. This group includes those spouses who participated in putting this update together, but also includes all “Co-Presidents” who ever served. Thank you all.

Although the AAMGA ByLaws limit the President’s term to one year, it is more accurate to say that the person who holds this office is President for life. As the job of President and Chair of the AAMGA Board of Directors ends, the lifelong membership in the Council of Presidents begins. This Council of Presidents, made up of all past presidents, meets annually and remains active in Association activities.

The information that follows includes quotes from videotaped interviews of Past Presidents and information taken from AAMGA archives. For further detail on these interviews, please go to the URL provided at the end of each biography.

“Proud History – Bright Future” was published in 1992. In an effort to catalog events since this book’s first publication, we attempted to contact all the members of the Council of Presidents. Catalogued in this chapter are the thoughts and reflections of

Now, let’s walk through the moments and memories of the three decades since “Proud History – Bright Future” was first published. Along the way, we will learn where our “former” AAMGA Presidents are now and what they have to tell us.

1980s When people think of the 1980s, images that come to mind might include spandex mini-skirts and pants, tracksuits, and parachute pants. Side pony tails and big, frizzy hair full of mousse also come to mind. However, insurance professionals remember one of two events: The Exxon Valdez or Hurricane Hugo. Although the Exxon Valdez oil spill and Hurricane Hugo both occurred in 1989, the effect those two disasters had on the insurance industry, and the world as a whole, helped define the decade. To this day, the 500,000 barrels of crude oil spilled by the Exxon Valdez is considered one of the most devastating environmental disasters ever caused by man. Unfortunately, nature can be even more devastating than man. Hurricane Hugo, a Category 5 storm, hit the United States and caused incredible property damage to the southeastern coastal area. The 1980s are often also remembered for man-made and natural disasters beyond the two mentioned above. These included the eruption of Mount St. Helens, the explosion of the space shuttle Challenger, and the murder of John Lennon; but the 1980s also introduced the world to Pac-Man, Nintendo and movies from writer-director John Hughes. The world would be a sad, sad place without Ferris Bueller and the Brat Pack. (Contributed by Colleen Giles-Harris, Chair UFO 2010â&#x20AC;&#x201C;2011)

The 1980s Presidents: Where Are They Now? 10

David F. Anderson (Deceased) AAMGA President 1980–1981

Ray R. Johnston AAMGA President 1982–1983

Owner/Chairman, Anderson & Murison, Inc., Los Angeles, California

Owner and President, the Gulf Agency, Montgomery, Alabama.

Dave became a California licensed property/ casualty agent in 1950 and a broker in 1953. He earned his surplus lines license in 1967. He is one of only two individuals to serve twice as the Chairman of the Surplus Lines Association of California. He served on AAMGA’s Executive Committee from 1976 to 1982.

Now retired from the insurance business, Ray was contacted at his Alabama home, where he remains active as a consultant and in the family cattle business. Ray vividly recalls his election as AAMGA President in a very close race against other well-qualified candidates. Being one of the youngest men elected to this office, Ray quickly realized the multiple duties of the office. The insurance market was in a very soft cycle, and with the Association committed to their annual meeting in Hawaii, “Mr. President” had to employ his sales talents by personally calling AAMGA members to encourage their attendance “Mr. President” at the annual convention. The efforts had to employ his helped increase atsales talents by tendance to over 500 people and enabled personally calling the Association to AAMGA members achieve their budget to encourage their in some difficult economic times. Ray attendance at was instrumental in the annual establishing financial convention. audit standards for the Association.

He continued to serve on the Board of Directors until 2010, when he received the CIWA Wholesale Industry Award. “For every major initiative to promote or defend the Wholesale Industry and Surplus Lines in this part of the country for the past 30 years, you’ll find Dave Anderson,” said Jerry Sullivan, Chairman of Gerald J. Sullivan & Associates.

Dave also played a major role in the founding of the California Insurance Wholesalers Association and was its first President from 1991 to 1993.

During the period of his executive service to the AAMGA, the Association and its members could certainly say the same of Dave.

Ray’s outdoor interests in hunting and fishing continue. He is enjoying retirement with his wife Helen and their family.

Unfortunately, Dave Anderson passed away in February 2012.

Marie Welch (Deceased) AAMGA President 1983–1984

Louis T. Mastos AAMGA President 1984–1985

Founder and President, Oklahoma General Agency, Oklahoma City, Oklahoma

President, Louis T. Mastos & Associates, Reno, Nevada

Marie was a pioneer in many ways, including being a Managing General Agency owner in the 1960s and 70s, in what was then a largely male-dominated segment of the insurance world. She specialized in personal lines and grew the agency nicely. She was an early advocate of the need for computerization in her office. This insight led her to serving on several AAMGA Education committees. Through this forum she was able to open the eyes of her fellow agents to the emerging age of electronics.

As AAMGA President, Lou felt that the rapidly growing Association needed more structured financial control. He secured board approval to create the office of Secretary-Treasurer. Lou appointed Joel P. Ory as the first to hold this position. (Mr. Ory served the Association in a highly efficient manner from 1985 until his retirement in 1997.) Lou was also a strong advocate of encouraging younger Association members to get involved in AAMGA activities.

He secured board Lou sold his business several years approval to create ago, but remains ac- the office of tive, going into the Secretaryoffice a few hours most days. He also Treasurer. continues to make agency calls and attend industry meetings.

In 1983, Marie was elected as the first woman to serve as AAMGA President. Her back- 1n 1983, Marie ground as an insurwas elected as the ance leader and par- first woman to ticipant in state and serve as AAMGA local politics served her well during her President. term. At this time, the Association was managed by a Washington, DC firm, which enabled her to offer insight into the increased government and regulatory discussions that were starting around the country. Many years later, prior to her retirement Marie sold her agency to a young fellow “Okie” by the name of Baron Garcia, who in 2001 would also be elected AAMGA President. Baron often mentioned his gratitude for Marie’s mentorship and especially for introducing him to the AAMGA.

Avrohm I. Wisenberg (Deceased) AAMGA President 1985–1986

Robert P. Welch (Deceased) AAMGA President 1986–1987

Founder, Chairman and CEO, Delta General Agency Corporation, Houston, Texas

Founder and President, Welch & Associates, Corte Madera, California

Avrohm Wisenberg formed Delta General Agency Corporation in 1959 as a means of providing Texas retail agents access to certain specialized facilities. Avrohm led Delta General as its chairman and CEO until his death in

Robert (Bob) Welch was the second “Welch” to serve as President of AAMGA, although he was not related to Marie E. Welch who served in 1983–84. Welch & Associates was a generalist managing agency with special expertise in commercial auto lines.

As President of the AAMGA, Avrohm led the Association effort to attract international and domestic insurance carriers to the AAMGA Annual Convention to build and support surplus lines capacity during the rapid hardening in the marketplace. At that time, general agents’ E&O insurance availability was seriously lacking and without, could force general agents out of business. Avrohm may be best remembered for his gift at public speaking, teaching insurance through numerous organizations, and his extraordinary sense of humor.

The Association grew during Bob’s tenure, including adding new members, new benefits and two zone or regional meetings per year. These meetings were in addition to the large Annual Meeting held in May of each year. Bob and his Executive Committee, which included Wes Duesenberg and Peter Scobie, operated as a search The Association committee to locate and interview grew during Bob’s association manage- tenure, including ment candidates with adding new mema greater national presence. This led bers, new benefits to engaging Martin and two zone or Fromn & Associates of Kansas City, which regional meetings represented the Asper year. sociation from 1987 until 2000.

August 1991.

Tom Rogan offered this memory of Avrohm. “When I completed my Presidential acceptance speech to the AAMGA annual convention, Avrohm approached the podium. Avrohm offered his compliments on my presentation. He said “I was impressed with your comments, but you should be pleased to know that my wife Evelyn, who is here with me tonight, said to me ‘he is going to make a good AAMGA President.’” This was high praise indeed from not only a man that I held in high regard as a Past President, but also from his charming first lady. I tried very hard to meet those lofty expectations during my time in office and will be forever grateful for their confidence.”

Several years following his service to AAMGA, Bob became ill and turned his business over to his son James, who closed the office soon thereafter due to other interests and extreme competition in the northern California area.

Delta continues its family ownership under the leadership and guidance of Avrohm’s son-in-law, Bill Fink, President and CEO. Bill has also proudly served as an officer on the AAMGA board.

Wes Duesenberg, Jr. CIW—AAMGA President 1987–1988

Peter Scobie CIW—AAMGA President 1988–1989

President, Southern Insurance Underwriters, CMGA, Alpharetta, Georgia

Chairman and CEO, Scobie Group, CMGA, Eau Claire, Wisconsin

As President of Southern Insurance Underwriters, Wes saw the MGA world morph from one with mostly local competition, to one with more regional and national competitors. This first-hand view came from his father, Wes Sr., who established the business in 1964. Wes Jr. was the second member of the Duesenberg family to serve as AAMGA President. The late, Wesley C. Duesenberg, Sr., was President from 1979–1980. The family legacy continues as Wes Jr.’s son, W.C. “Tripp” Duesenberg III, recently completed his term as Chairman of the UFO.

Peter’s grandfather (R W Scobie) established the General Agency in 1932. Peter’s father Bob, joined the Agency in 1937, and was active in the business for 67 years until his death in 2004. Peter attended his first AAMGA meeting in 1971, where he made a presentation on microfilming. AAMGA President Marie Welch asked Peter and Randi to chair the AAMGA Annual meeting in 1973, and this began an active career in many AAMGA committees over Peter and the years. Peter worked President-Elect closely with Wes Duesenberg, Jr. in establishing the Louis Williams AAMGA University and, was were called upon active as Chancellor and fundraising for the AAMGA to testify before Congressional University Foundation for many years. committees

As AAMGA President, Wes Jr. served as a key figure in establishing the highly successful AAMGA University and led the fundraising efforts for the Foundation. He served as Chancellor through the University’s formative years. Wes also served the Association for 10 years as Secretary/Treasurer with distinction and maintained the financial integrity of the association many years after his term as President ended.

investigating As President, Peter made MGAs. education and the promotion of the AAMGA University one of his primary goals. During his Presidency, Peter and President-Elect Louis Williams were called upon to testify before Congressional committees investigating MGAs (none of which were AAMGA Members) and worked closely with the Dingle Committee in the Senate on these issues.

In 2008, the AAMGA presented Wes with the Donahue Lifetime Achievement Award. The presentation was made by thenpresident Tom Albrecht. Along with Chuck Deering and Tom Stamm, Wes was also a recipient of the AAMGA 75th Diamond Anniversary Award.

In 1997, the AAMGA presented Peter with the Earl S. Dillard Award for Distinguished Committee Service. Peter remains active in AAMGA with the Past Presidents Committee and the University Foundation.

Wes remains an active part of the University’s Foundation and was recently re-elected as Vice-Chancellor. He established a Chair in his father’s name at Georgia State University and worked with others to establish the AAMGA Distinguished Chair of Risk and Insurance at Georgia State.

Louis Williams (Deceased) AAMGA President 1989–1990 Founder and President, Louis A. Williams & Associates, Marshall, Texas Louis (Lou) Williams was a proud resident of Marshall, Texas, where he founded his business in the 1970s. The firm continues to operate in Marshall under the name of Louis A. Williams & Associates. Family members Brad, Billie, and Christopher Burke now serve as the principal officers. Lou is remembered as a true Texan, with a warm and engaging personality. He was known as a raconteur, with many of his stories having western roots. During Lou’s term of office, the AAMGA was invited by the Dingell congressional committee to offer testimony concerning the con- His testimony was duct of some nonconsidered very AAMGA members. helpful by this (For further details, see the biography of committee and AAMGA President led to further the Fred Steves, 1992– credibility of the 1993, in this chapAAMGA and its ter.) His testimony was considered very members. helpful by this committee and led to further the credibility of the AAMGA and its members. As Past President, Lou strongly supported the proposal to form the Under Forties Organization (UFO) in 1991.

1990s The 1990s started off with a bang, literally, as the United States launched Operation Desert Storm. Unfortunately, things did not improve too quickly. Many insurance professionals view the 1990s as one of the longest and most difficult soft markets in insurance industry history. Insurance carriers seemed to merge or be acquired weekly. The decade was stained by hurricanes (remember 1992’s Hurricane Andrew), earthquakes (including the Northridge Earthquake in 1994), and the crazy OJ Simpson trial (enough said). Luckily, things in the 1990s weren’t all bad. This was an incredibly revolutionary decade for digital technology. Cell phones were introduced, and the Internet began its rise. Cell phones of the early 1990s were quite large and didn’t have many, if any, fancy features. And only a small percentage of the population, in even the wealthiest nations, actually had one. The Internet only served a few million people in 1990, but by 2001, more than 50 percent of some Western countries had Internet access. At the AAMGA, 1991 saw the creation of the Under Forty Organization (UFO). The UFO was created to give young insurance professionals an opportunity to learn and grow together while networking and exchanging ideas. Since its creation, the UFO has evolved a great deal, but every year the organization works towards its founding goal and focus: Keeping leadership, education, and communication as key components for the growth of the industry’s next generation. (Contributed by Colleen Giles-Harris, President UFO 2010–2011)

The 1990s Presidents: Where Are They Now? 16

Gregory A. Allgeier President—AAMGA President 1990–1991

Thomas B. Rogan CIW—AAMGA President 1991–1992

President, Bolton & Company, Louisville, Kentucky

President, MacNeill Group, Fort Lauderdale, Florida; retired in 2001

Greg Allgeier remains active as President of Bolton & Co, a firm established in 1965 that continues as a family-owned independent wholesaler. Greg’s hard working habits have obviously not changed as he was reached at his desk at 7:45 a.m. for his interview. Bolton & Co. serves the retail agents in its home state, as well as in several adjoining states. It also has Program business clients that are national in scope. Other principal officers of When he was Bolton & Co. are outgoing President, Sharon Allgeier, he convinced the and recently appointed Vice Presi- then Governor of dents, Christopher Kentucky to Allgeier and Jeremy Allgeier, both honor the Board of whom attended members with the the AAMGA’s title of “Kentucky UFO 2011 meetColonel.” ing in Nashville.

Tom’s term as President was exceptionally eventful. He presided over the first AAMGA visit to Hong Kong, Bangkok, and Chaing Mai in 1991 as part of its International Seminar led by Seminar Chairman, Bob Katz. Although he has been in the insurance business since the 1960s, Tom remembers 1992 as the most memorable. That year, the worst hurricane in U.S. history—Category 5 Hurricane Andrew—struck his home and office areas in South Florida, causing $25 billion in statewide damages. Fellow AAMGA members from around the country were quick to offer assistance. It was a life-altering experience working to balance the disaster and his duties to AAMGA as its Past President. Tom is very proud of authorizing the Under Forty Organization (UFO) during his term in office. Now, in its twentieth year, the UFO is a vital part of the AAMGA, providing a conduit for the young leaders of the wholesale insurance world to interact with each other as they become industry principles.

Greg is warmly remembered by his former AAMGA Board members. When he was outgoing President, he convinced the then Governor of Kentucky to honor the Board members with the title of “Kentucky Colonel.” Framed certificates were given to each.

Tom sold his interest in the MacNeill Group, Inc., and now serves the insurance industry as consultant. He has worked with the AAMGA on transitioning association management companies and organizing RFPs on two occasions. Since 2005, he has been the Permanent Secretary of the Scottsdale Agents’ Advisory Board and in 2011 was appointed Permanent Secretary of the newly formed Brokers Advisory Board. In 2001, President Len LoVullo, on behalf of the AAMGA, presented Tom Rogan with the Donahue Lifetime Achievement Award.

Fred Steves CIW—AAMGA President 1992–1993

Ed Calabrese AAMGA President 1993–1994

President, Myron F. Steves & Company, CMGA, Houston, Texas

President, Hull & Company, Inc., Ft. Lauderdale, Florida

Myron F. Steves & Company was formed by Fred’s father in 1955. Fred succeeded his Dad as President of the firm in 1996, when, he jokes, he also became the “Chief Complaint Coordinator.”

Ed is now retired. The following was taken from an interview with Ed in 2002: “Ever since I’ve been in this business, people have been burying the agent and the MGA/ wholesaler and all the folks that make up that delivery system, but it hasn’t happened. In fact, I think we are getting a second wind. We are getting better at it. We’re getting more involved in the market place; we have developed a reputation and credibility that Ever since I’ve we work hard to achieve. It took a been in this busilong time, but I ness, people have don’t think there been burying the is an end to this. agent and the The AAMGA put out a book MGA/wholesaler a while back and all the folks “Proud Historythat make up that Bright Future,” and I think that is delivery system, a true description but it hasn’t of the Association. I don’t know who happened. thought it up, but it was a great idea, great model, and it works.”

Fred’s term as AAMGA President saw an increase in U.S. Congressional interest in the wholesale insurance business. He received Board approval to retain a national law firm for the purposes of clarifying that AAMGA and its members were not the problem and identifying those who were responsible for the “failed promises” in the insurance business during that period. The Congressional investigation, led by Representative John Dingell (D–Michigan), examinted many parts of the insurance business, including insurance company insolvencies. The committee authorized a paper titled “Failed Promises,” which attributed three company insolvencies to their managing agents. The Committee’s broad brush reference to “MGAs” or insurance managers prompted AAMGA leadership to voluntarily appear before this Committee and explain the difference between these unlicensed operatives and the many reputable managing general agents and brokers throughout the United States. Fred greatly improved the communication channels within AAMGA while informing the insurance world of the effective influence of the Association. He served a 3-year term as University Chancellor and is presently on the University Foundation Board. His legal advice has been invaluable to the University and AAMGA as a whole. At the conclusion of Fred’s term as President, he began the practice of awarding the immediate Past President with a dark green blazer, as a symbol of excellence to be worn at future AAMGA events.

Ed shares time with friends & family in Florida and New York.

Victor D. Giordano CIW—AAMGA President 1994–1995

Preston Gough CIW—AAMGA President 1995–1996

President, Pennock Insurance Inc., Wayne, Pennsylvania

President, Southern Cross Underwriters, CMGA, Jackson, Mississippi

Vic joined the AAMGA in 1970 and attended his first meeting in the Bahamas. Vic was very successful in achieving his AAMGA goal of raising the visibility of the Association both in the United States and abroad. As President, he and his wife, Isabel, traveled tirelessly on behalf of the Association. Respected by domestic as well as international Vic was able to insurance markets, further enhance Vic was able to further enhance the creditability of the credibility of the AAMGA the AAMGA durduring his ing his Administration. Administration.

Preston has fond memories of receiving supportive mentoring from several AAMGA members and Past Presidents. While President of AAMGA, Preston had to balance AAMGA business travel and his young family. Multitasking is a definite part of Preston’s DNA. A board member since 1991, he has found great value in the relationships formed throughout the AAMGA membership. He strongly supports the UFO and their wealth of enthusiasm as they grow to become future leaders.

Vic now lives in Philadelphia. He is now retired.

He strongly supports the UFO and their wealth of enthusiasm as they grow to become future leaders.

Preston also served as Chancellor of the University. Preston felt honored to present the Donahue Lifetime Achievement Award posthumously to the family of Past President Earle S. Dillard in 1996.

Charles Deering CIW—AAMGA President 1996–1997

James Ryan AAMGA President 1997–1998

Owner, Deering & Associates, Durham, North Carolina

President & CEO, Market Finders Insurance Corporation, CMGA, Louisville, Kentucky

The following was taken from a 2002 Interview:

Jim Ryan established Market Finders in 1972 and grew it from a small state brokerage agency into a nationally recognized and respected surplus lines wholesaler. Still headquartered in Louisville, it has three underwriting branches, serving agents in seven states throughout the Midwest.

“The relationship between the MGA and the company is a very personal one. Although we have a contract and a territory, it’s the comfort level that we develop with company officials, their underwriting staff, and claims personnel that will really be the key ingredients to success in this relationship. We are an Association (AAMGA) of entrepreneurs and even adversity will breed opportunity. We should be The relationship skilled enough to recognize the op- between the MGA portunity and do and the company something about is a very personal it.”

In addition to having served as AAMGA President, Jim has been very active in other wholesale and retail associations,nationally as well as on a state level. Jim recalls one of the highlights as AAMGA President was the opportunity to present the Vincent Donahue Lifetime Achievement Award to Derek Hughes, former President of the Western World Insurance Group.

one.

Along with Wes Dusenberg and Tom Stamm, Chuck was a recipient of the AAMGA 75th Diamond Anniversary Award. Chuck is now retired and resides in North Carolina with his wife, Eleanor.

Still very active in the wholesale insurance world, Jim was contacted recently at his Louisville office. He said; “As we prepare to begin our 41st year in business, I am beginning to scale back my day-to-day involvement in the corporation. I am in the process of making arrangements to sell the stock of the corporation to the employees through an ESOP and the majority shares to two of our long-term executives (one has been with us for 33 years and the other for 20 years). This will take place shortly after the 2012 AAMGA Convention in San Antonio. I will continue as Chairman of the Board. This should give Marlene and I more time to spend at our home in Cape Cod and for me to enjoy my horses and golf.”

Paul Davis AAMGA President 1998–1999

Jim Roe AAMGA President 1999–2000

President, Texas Specialty Underwriters, Rockwall, Texas

Owner and President, Arlington Roe and Co., Indianapolis, Indiana

Paul is a risk taker in business, and when he was selected as AAMGA President, he knew he had to increase the “bench strength” at his company as he would frequently be traveling on AAMGA business. His son, Brent, and others in the organization stepped up and provided Paul and Texas Specialty Underwriters with the hard work that allowed Paul to preside with distinction as AAMGA President.

As a teenager, Jim worked part-time in the insurance firm his father established in 1964; he joined the firm full-time in 1980. He was attracted to AAMGA because it was, and is recognized as a quality professional insurance association. So he wanted to be a part of it. Before his election as President in 1999, and after his term, Jim worked on several While in office, committees, includhe saw the ing many years on tremendous the Government Affairs Committee. interest at the turn While in office, he of the century saw the tremendous about the issues interest at the turn of the century about surrounding the issues surround“Y2K.” ing “Y2K.” Would all computers shut down due to the date change? Although it turned out to be a “non-event,” AAMGA was prepared.

Paul is a strong Paul is a strong advocate of the advocate of the committee dynamic of AAMGA committee dynamand was instruic of AAMGA and mental in naming was instrumental new members to many committees in naming new and getting more members to many active involvement committees and from the memgetting more active bership. Paul’s articles about involvement from the value of the wholesale distribu- the membership. tion system were frequently published in insurance periodicals.

Jim proved to be another example of officers of AAMGA who stay active after their terms. Jim has served on committees and has stayed current on the insurance business through participation in the education programs offered by the AAMGA University.

2000s Not only was January 1, 2000, the first day of a new decade, but it was also the first day of the 21st century and the first day of the Third Millennium. The 2000s, known to us as the “aughts” or to the British as the “noughties,” were exciting and challenging, but at the same time frightening. Everyone was asking, “Who Let the Dogs Out?” Many argue, with good reason, that the tragedy of the terrorist attacks on September 11, 2001, was the most significant event of the 2000s. But the decade also brought several devastating natural disasters. “Hurricane” was the word in 2005. This was undoubtedly one of, if not the worst, years for hurricane damage. Hurricanes Katrina, Rita, and Wilma all hit during 2005. Unfortunately, the following year wasn’t much better in regard to natural disasters. The Indian Ocean earthquake and tsunamis killed over 300,000. The 2000s also saw some major historical events: Saddam Hussein was tried and executed in 2006. The first African-American President of the United States, Barack Obama, was elected in 2008. US swimmer Michael Phelps won a record eight gold medals at the Olympics; and Tiger Woods broke a record in his sport by being the first golfer to hold all four major championships. The property destruction resulting from the 9/11 attacks, along with the hurricanes and tsunamis that pounded coastal areas world-wide, shifted the insurance industry into a very hard market in the early 2000s. Sadly, things did take a turn for the worse in the insurance industry, and the world economy, as the decade came to a close. In 2008, President George W. Bush found it necessary to authorize $700 billion in funds to prevent the collapse of Wall Street, and in 2009, unemployment exceeded double digits. There may have been many melancholy moments during the 2000s, but that decade also brought American Idol’s William Hung into our living rooms and introduced us all to the term “wardrobe malfunction.” Good times! (Contributed by Colleen Giles-Harris, President, UFO 2010–2011)

The 2000s Presidents: Where Are They Now? 22

Leonard T. LoVullo, CIW AAMGA President 2000–2001

Baron D. Garcia (Deceased) AAMGA President 2001–2002

President & CEO, LoVullo & Associates, CMGA, Buffalo, New York

President, Oklahoma General Agency, Oklahoma City, Oklahoma.

LoVullo & Associates was started by Len’s father in 1949. Attending AAMGA meetings as a family continues to be a LoVullo legacy. Len’s children have attended annual meetings since they were babies and now as young adults, have created their own circle of friends within the Association.

The following was taken from an interview taped in 2002: “Some of the prognosticators say that ‘e-commerce’ is going to do away with our distribution system. I do not personally feel like this is a threat. I think it is a complement to what we do and the way we service our customers and work with our companies. The market is tending to change currently in our area, and I know that in other states there Some of the progare changes going on in pricing and product nosticators say that availability. By us stay- ‘e-commerce’ is ing current, we will going to do away continue to prosper as a major trade associa- with our distribution system. tion for our distribution system. We need to continue to know how to better organize our operations and grow our relationships with our companies and customers.”

Len’s AAMGA Presidency saw a “perfect storm” that required his skills as a leader. AAMGA’s incumbent management firm of 15 years abruptly went out of business. Faced with continuing the business of the Association, Len and his Board approved the interim appointment of an active educator, lawyer, and long-time AAMGA participant, Bernie Heinze, as Executive Director. At the same time, an extensive request for proposal (RFP) process was being conducted to find a new management firm. From the more than 20 firms submitting proposals, Accolade Management Inc. was selected. The possibility that Association activities would be disrupted during this time was not an option and averted by Len’s decisive action. Mr. Heinze and Accolade are now entering their 11th year as AAMGA’s managers.

Baron was an energetic leader of AAMGA who also worked tirelessly on the transition of the Association in management companies and all other activities during his Administration. Unfortunately, Baron passed away at an early age in 2006.

Len is optimistic about the leadership coming out of the UFO and has himself appointed many UFO members to his committees. He feels the future depends on the forward thinking of AAMGA members who are budgeting purposely to advance the technology capabilities in their offices.

Robert S. (Rob) Giles, CIW AAMGA President 2002–2003

Ronnie C. Moore, CIW AAMGA President 2003–2004

President & COO, Midwest General Agency, CMGA, Eau Claire, Wisconsin

Owner & President, Southern General Agency, Inc., Bowling Green, Kentucky

Midwest General Agency was established in 1932 by Rob’s family members and now has several offices throughout the upper Midwest.

During his Presidency, Ronnie led the restructuring of the management contract with Accolade Management Company, as he felt their high performance level warranted this positive action. He supported efforts to co-host many educational programs with the National Association of Professional Surplus Lines Offices (NAPSLO), with the first of these occurring in 2003.

Not a “gambler” by nature, Rob took a risk when setting up programs for the 2002 Annual Convention. Our country was still in shock from the terrorist attacks on the World Trade Center and Pentagon, and the related crash of Our country was United Flight 93, on September 11, still in shock from 2001. To counter the terrorist attacks the somber mood, on the World Trade Rob brought in a well-known author Center and Pentaand humorist, Dave gon, and the related Barry, as the opening speaker. His hi- crash of United larious talk gave the Flight 93, on Sepentire audience a tember 11, 2001. chance to laugh for, possibly, the first time since 9/11. All in attendance agreed that light-hearted start to the meeting was needed.

His continued interest in the Governmental Affairs Committee was also imporAnd he is proud tant as there was a of the fact that two concentrated effort members of his to gain uniformity in the Stamping Of- board who had fices throughout the come out of the country. He extended the International UFO were both Executive Commit- later elected as tee meetings to inPresidents of the clude member firms in Bermuda. And he AAMGA. is proud of the fact that two members of his Board who had come out of the UFO were both later elected as Presidents of the AAMGA.

Rob focused his Presidency on just a few areas. One was holding AAMGA Executive Committee meetings in the home offices of Associate members throughout the United States and Great Britain. A strong supporter of the UFO, he committed to enhancing its growth. On completion of his term as President, he assumed the roles of Vice Chancellor and then completed a 3-year term as Chancellor of the AAMGA University. Rob led a successful international Seminar to Europe, including an emotional journey to the shores of Normandy Beach.

An additional highlight was the opportunity to present the Donahue Lifetime Achievement Award to R. Max Williamson, former President of Scottsdale Insurance Company. Ronnie cited Mr. Williamson’s strong impact on the E&S business, his personal work ethic, and rock-solid integrity, among the many reasons he deserved this special recognition.

Joseph P. Hutelmyer, CIW AAMGA President 2004–2005

Francis Johnson AAMGA President 2005–2006

President & COO, Am Wins Transportation Underwriters, Inc., CMGA, Burlington, North Carolina

President, Johnson & Johnson, CMGA, Charleston, South Carolina Fran grew up in the insurance business under the mentorship of highly respected family members. He was also a “child” of the AAMGA, attending his first Annual Meeting as a teenager. After college, he returned to the family business. Years later, following the retirement of their father, Robert, he and his brothers assumed ownership and continue to grow their company. Fran was an important part of the growth of the UFO and served as Chair. After several active years on AAMGA Committees, Fran was elected to the Board and in 2005 became the first former UFO Chair to be elected AAMGA He was also a President.

A member since 1981, Joe joined AAMGA because he was very impressed with the Association, its outstanding professionalism, and its emphasis on enhancing business and personal relationships. He made these his focal points of his presidency after his election in 2004. Joe may be the only AAMGA President to be married while attending an Annual Convention.

Joe may be the

His administration only AAMGA encountered the President to be investigation being carried out by New married while York Attorney Genattending an Aneral Elliott Spitzer into the proprietary nual Convention. of “contingent” commissions being paid to producers. Joe, with the assistance of the Board and Association headquarters, was helpful in keeping the membership informed on these investigations, as well as responding to their concerns.

“child” of the

Fran had other AAMGA, “firsts” that he happily reveals. At attending his first a UFO meeting Annual Meeting in Jackson Hole, as a teenager. Wyoming, Stetson Cowboy hats were presented to all attendees. Fran commemorated that event by adding his cowboy hat to his business attire for his Opening Address as the first UFO Chairman to be elected AAMGA President in 2005. Until Fran was in office, the sitting President would introduce all Past Presidents at the Opening Breakfast. Fran claims that because he “muffed” a few of the names when it was his turn to make the introductions, this practice was replaced by a video with the names and pictures of each Past President. Many attendees considered this a very positive change to a ritual that needed improvement, and Fran was able to accomplish it.

In 2005, Joe was privileged to present the Donahue Lifetime Achievement Award to John Clements of Bell & Clements, London, England. Joe is another Past President who continues to give back to the Association after his term of office. Joe is now entering his third year as Chancellor of the AAMGA University.

Scott Anderson, CIW AAMGA President 2006–2007

Tom Albrecht AAMGA President 2007–2008

Executive Vice President, Concorde General Agency, Inc., Fargo, North Dakota

Partner, Associated Insurance Administrators and TAG Underwriters, Montgomery, Alabama

Concorde General Agency was established in 1981 by Scott’s father-in-law. Scott joined the agency in 1985.

Tom is the former owner of Barclay Agency, LLC. Like most Presidents, Tom was concerned with keeping AAMGA traditions alive. He worked closely with the committees because he feels that’s where “the rubber meets the road in our Association.” He made positive changes in the Executive Committee by including the President Elect in key decisions and more specifically defining the duties of that office. The He made positive executive committee worked closely changes in the Exwith the Executive ecutive Committee Director and Acby including the colade Management to further outline President Elect in Accolade’s duties and key decisions and responsibilities and amend their contract, more specifically accordingly. defining the duties

Scott is another of the AAMGA Presidents who worked his way through various committees, ultimately being elected Chair of the Under Forty Organization in 1996. After serving on the Board of Directors, he was elected as AAMGA President in 2006. He credits his UFO experience as key in giving him the confidence to pursue other offices within the Association. As President, he undertook the Vision 2017 Project. It was a bit of gamble, but this project forced the Association to attempt to create a 10-year vision and to also aid members in charting their future success. This Project was designed to be refined annually. Scott believes, as he did when he was President, that the Association remains a place for exchanging ideas, building relationships, and increasing the professionalism of all members through the AAMGA University. He takes pride in the fact that his Executive Committee traveled to many insurance company home offices and met with their management to report on AAMGA activities and to seek their suggestions on what else the Association could do for them.

of that office.

Tom also worked closely with the Independent Insurance Agents and Brokers of American (the Big “I”) to gain the retail agents’ perspective into the AAMGA Vision 2017 Project. Tom feels the AAMGA is strong and has been able to weather the insurance cycles, as well as economic changes, by having a strong Board of Directors supported by an efficient professional association management company.

On a personal note, Scott and his wife, Mamie, were deeply touched by the compassion and empathy of their AAMGA friends and family when they lost their son in a tragic accident in 1996. Scott said, “We have tried to give our efforts back to the AAMGA to thank everyone for their kindness.”

Euclid Black AAMGA President 2008–2009

Curtis Anderson AAMGA President 2009–2010

CEO, Black/White Associates, Louisville, Kentucky

President, National Binding Programs, RPS, Scottsdale, Arizona

Euclid recognized the value of AAMGA membership over 30 years ago. He was impressed by the knowledge and caliber of members he met along, as well as their interest in the wholesale business. Each member’s willingness to help one another convinced him to be a part of this Association. He feels the business has become dramatically more complex and has extended across state lines. He has seen the wholesale business make investments in and use of exten- As President, he sive technology witnessed the enhancements from accounting dramatic global through processfinancial melting.

The former owner of Skanco International, Curtis has been in the wholesale insurance business since 1977. Curtis carried his personal work ethic into all his activities as a Board member and especially when elected by the membership to serve as their President. Some of the projects undertaken by Curtis while in office included updating the Association By-Laws and revising the membership requirements. He and the Board added the immediate Past UFO Chair to a seat on the Board, as well as a second Associate Member, including voting rights for each. This has been a positive in gaining insights from other parts of the membership. He also led a thorough RFP process that brought in multiple prospective association management firms. Those submitting proposals included the incumbent Accolade Management. The diligent review of the proposals by Curtis and the Board, including interviewing the finalists, led them to reappoint Executive Director Bernie Heinze and Accolade Management.

down of 2008 and 2009.

As President, he witnessed the dramatic global financial melt-down of 2008 and 2009. The Association, like most businesses, had to adjust to threats of lower meeting attendance and possible loss of members. The Board banded together to make the needed adjustments and managed through these difficult times.

Curtis’ serious business-like attitude was delightfully tested during the 2010 closing gala. When his family was being introduced on stage, his youngest grandson decided he liked the guitar left on stage by the band scheduled to play later. So he took it. Curtis interrupted his introductions and returned the guitar and his grandson to a safe harbor, much to the amusement of the audience and the gratitude of the guitarist.

A strong advocate of AAMGA’s committee structure, Euclid is encouraged by the leadership qualities coming out of the UFO. He feels it provides a perpetuation to and growing strength of the Association. He looks upon his fellow members as true friends who share a passion for the wholesale insurance business they are in.

Mark Rothert, CIW AAMGA President 2010–2011

Wayne Forest AAMGA President 2011–2012

President, Ron Rothert Insurance Services, Inc., CMGA, Portland, Oregon

President, Forest Insurance Facilities, Inc., Metairie, Louisiana

At the time of this writing, Mark had just completed his term as President and is the Immediate Past President. He will serve on the Board through May 2012. In reflecting upon his year in office, Mark felt that one of the risks in assuming the presidency is to be certain your own business is well cared for during the time required to attend to Association business. Planning and organization is needed.

Wayne is the current President of AAMGA and will join the distinguished list of Past Presidents in May 2012. Like most of us who never wanted a career in insurance, he accepted his first job out of college with Fireman’s Fund Insurance Company in New Orleans. He figured that this would be a temporary job until he found the “real” career that he wanted. Here we are 40 years later and He figured that you can guess in what career Wayne this would be a ended up. temporary job

While President, Mark was very proud that after many years of planning and fundraising, the AAMGA Distinguished Chair of Risk and Insurance at Georgia State University was realized. He was pleased to award certificates to the first graduating class of UFO members from the Georgia State University Leadership track. He worked actively with the Governmental Affairs Committee in monitoring the NRRA legislation.

until he found the During his acceptance speech as the “real” career that incoming President he wanted. of AAMGA, Wayne mentioned several goals that he wanted AAMGA to accomplish. His main goals were (1) to get this second AAMGA history book published; (2) to add 20 new members; (3) to create and foster the continuation of an AAMGA Strategic and Tactical committee; and (4) to work more closely with all of the other insurance industry associations. Through the hard work of the Board of Directors and all of the very active committees, these goals were accomplished.

Mark presented the Donahue Lifetime Achievement Award to Anthony “Tony” Markel, Vice Chairman of the Markel Group, at the Annual Meeting in Orlando, Florida, in 2011. As a President completes his term in office, he receives a green blazer symbolizing excellence that he will proudly wear at future AAMGA functions. Mark Rothert received his and became the newest member of the Council of Presidents.

Wayne’s greatest love and strength comes from his wife, two sons (both of whom have worked for the company for over 15 years), two daughters-in-law and five grandchildren. Wayne says that his family “is [his] purpose for everything he does.”

2011 Council of Presidents “Green Jackets” Orlando, Florida

Wes Duesenberg, Fred Steves, Peter Scobie, Preston Gough, Rob Giles, Tom Rogan, Joe Hutelmyer, Paul Davies, Len LoVullo, Lou Mastos, Scott Anderson, Francis Johnson, Tom Albrecht

Doug Bauckham, Gary Batten Corrie Bauckham

Keith Harris, Bob Quirk, Jill Harris, Roland Miller

Randy Dyer, Debbie Horgan, Violet Evans

Bill Davis, Terry Steves

Rollie Wiegers, Joel Ory, Carlo Frua

Bob Libby, Mike Adams, Ruby Libby, Patty Adams

John Griffen, Tom Rohs, John Owens, Wes Dusenberg, Sr.

Peter Scobie, Joel Ory, Louis Williams, Wes Duesenberg, Randy Dyer, President Bob Welch, Ed Knish, Avrohm Wisenberg, Fred Bjornson, Bob Quirk

Marie Welch passes Presidentâ&#x20AC;&#x2122;s gavel to Lou Mastos

Clay Calhoun, Connie and Lawrence Calhoun

Anne, Robert Jr., Fannie Mae, Robert Sr., Lucy and Thomas Wright

Sally Snow, Charles McDearmon

Yvonne and Art Triemer

A.P. Cunningham, Dana and Martha Roehrig, Mary Cunningham

Bauckham family, Kezia, Doug, Luke and Marilyn

Haynes Brinkly, Mitch Gwinn, Jim Bradly

Jeanne and Fred Bjornson

Phillip Oxford, Caroll and Lew Corson

John and Betty Curry, Carolyn and Lawrence Pratt

Jan and Jim Miller

Wendy and Mark Abbott, Susan and John Wood

Dick Meyer, Bill Davis

Nila and John Griffin

Bob Welch, Avrohm Wisenberg, Lou Mastos

Russell and Eve Grace

Louis Vale and Ray Johnson

Wes Lueken, John Corrie, Marilyn and Doug Bauckham

Fred Steves, Rollie Wiegers, Bill Davis

Bill Vickrey, Sam McBirney, Joel Ory, Pete Biggs

Joe Olson and Bernie Concannon

Hazel and Ed Elliott, Carl Wilson, William Marbury, Bill and Gail Little, Becky Napper

Bob Maes, Robert Grace

Ray Johnson, Barbara and Don Litchfield

Ron and Nancy Gabor

Becki and Clay Tucker

Paggy and Mike Ashner

Kathleen and Louis Williams

C hapter

Awards of Distinction By Tom Rogan President TBR Insurance Consultants Inc. Vincent E. Donahue was a true friend and loyal supporter of the AAMGA and strong advocate of its wholesale distribution system. He was President of the Jefferson Insurance Company and remained active with the AAMGA as an Associate member until his death in 1978. He gave many AAMGA members their start in the hard-to-place property business by contracting with and structuring unique authority lines to suit their areas of operations and underwriting needs. He was known for his quick wit and interesting speeches at AAMGA annual meetings. But most importantly, he had a solid reputation for being a man of his word. He was instrumental in encouraging competitors, both foreign and domestic, to join the AAMGA. His remarkable foresight and confidence in the wholesale insurance business has proved wellplaced many years after his death. The early leaders of the AAMGA decided to honor the memory of Vince Donahue by creating the Vincent Donahue Lifetime Achievement Award (the “Donahue”) in his name. Each year, the AAMGA President names a special ad-hoc committee to review those “persons in the wholesale insurance business who have exhibited Vince Donahue’s legacies of leadership, high moral character, and commitment to the wholesale distribution system. This award is considered on an annual basis, but awarded only on those rare occasions when those nominated are judged to have contributed to our business in a “highly exceptional manner.” In the years since this award was established, there have been just nine recipients. Their achievements are described on the following pages.

Rollie L. Wiegers – 1992 Rollie Wiegers and five other key people founded the Scottsdale Insurance Company in 1982. Scottsdale Insurance was and is dedicated to the excess & surplus wholesale marketplace. Rollie never forgot those who helped to grow the Scottsdale in such a dramatic way—the wholesale MGA, many who are members of the AAMGA. His support of the AAMGA University and all Association activities is typical of his unwavering commitment to those with whom he conducted business. Rollie was the first “Donahue” recipient. Rollie knew Vince Donahue very well when Vince was President of the Jefferson Insurance Company and Rollie was the President of Great Southwest Insurance Company. Due to a shortage of reinsurance being available, their companies agreed to write net participating policies. In 1992, the award was presented by AAMGA President Tom Rogan, who said “the ad-hoc committee was very wise in their nomination of such a knowledgeable leader in the E&S business and man of unquestioned integrity who is a perfect example of the criteria that make up AAMGA’s highest honor.” Since retiring from the Scottsdale Insurance Company, Rollie joined with family members to form the Colonial General Insurance Agency with offices in Arizona and Utah. He is presently Chairman of this business.

Joel P. Ory – 1994 Joel P. Ory—“Mister” Ory to many—had a long relationship with the AAMGA of over 40 years. While President of Agency Management, an MGA based in Baton Rouge, iana, he was elected to the Board of Directors and served as Vice President. He also had a distinguished career as President of the Audubon Insurance Company. In 1984, Joel was named by President Lou Matos to the newly created position of AAMGA Secretary-Treasurer. He was retained in this important position by every President from 1984 until he decided to retire in 1997. Joel raised the accounting standards of the Association to a professional level and became known as a vigilant protector of the Association funds, with a very watchful eye on frugal expenditures. In 1994, AAMGA President Ed Calabrese presented the “Donahue” to Joel, citing these revisions as among many that earned “Mr.” Ory this high honor. Joel also served as Secretary of the Scottsdale Insurance Company’s Agents Advisory Board from 1996 until 2005. Note from the author: On August 26, 2011, Joel Ory passed away peacefully at his Baton Rouge, Louisiana, home with his wife, Kathleen, and family members by his side. Joel would have celebrated his 90th birthday on October 4, 2011. At his funeral, Joel and his many acts of love and charity in the community were recognized. As a WWII Veteran and former officer in the US Army, he was afforded a military escort and rifle salute at the touching graveside service. As the sounds of Taps being played by one of the soldiers faded away, it was agreed that the good memories of Joel P. Ory never would.

Earle S. Dillard – 1996 Earle Dillard was President of Bloss & Dillard, CMGA, Huntington, West Virginia, until his death in 1995. After a very proactive term on the Board of Directors, he was elected AAMGA President for 1973–1974. He was committed to growing the Association, but insisted that membership standards be maintained. He had a great knowledge of our business and predicted the regulatory intervention in our business that is present some 30 years later. He established criteria for archiving AAMGA records and memorabilia that have become a “treasure” to the Association. Earle’s personal reputation and highly respected business reputation directed a positive impression towards the AAMGA, drawing in new domestic insurers, as well as foreign insurers, as new members. In 1996, President Preston Gough presented the “Donahue” posthumously to the Dillard family. It was proudly accepted by his son, Kerry, (now President of Bloss & Dillard), who accepted on behalf of his mother, Naomi, and the Dillard family. He later said they were overwhelmed by this great honor. Today, the Donahue award remains proudly displayed in their office lobby.

Derek Hughes – 1998 Derek Hughes accepted an underwriting position in 1968 with Western World Insurance Company. A newcomer to the then fledging excess & surplus lines business, Derek overcame internal and external skeptics to eventually lead the company as President in a conservative, fiscally responsible way. As a result of Derek’s leadership, Western World became one of the most respected companies in our business. When Derek chose to retire in 1992, he turned over a company well-positioned to succeed. Derek knew Vince Donahue, and even though Derek was with a competing company, Vince was very willing to make suggestions about which AAMGA members Derek should consider when expanding Western World. Derek was also very active with the National Association of Professional Surplus Lines Offices (NAPSLO), which honored him by creating the Derek Hughes Educational Foundation in 1990. In 1993, President Jim Ryan said it was the highlight of his AAMGA presidency to be able to present the “Donahue” to such a highly respected man and good friend to him and so many others within the Association.

Thomas B. Rogan, CIW – 2001 Tom Rogan, author of this chapter, retired as Chairman and CEO of the MacNeill Group, CMGA, Fort Lauderdale, Florida. In 2001, he formed an insurance consulting firm, TBR Consultants, Inc., headquartered in Ft. Lauderdale. He splits time between homes in Ft. Lauderdale and the mountains of North Carolina with wife, Barbara. In 2005, he was appointed Permanent Secretary of the Scottsdale Agents Advisory Board. Tom served as AAMGA President for 1991–1992 and today remains active in Association activities. Tom was delightfully surprised to learn of his selection as the “Donahue” recipient at the 2001 annual gala event. When President Len LoVullo presented the award to Tom, he drew the connection between Vince Donahue and Tom Rogan “as leaders, voices of reason, visionaries, and men of great moral character with the ability to see that in others.” Tom holds the “Donahue” award at the top of his “bucket list” of career events and said “to be selected by your peers and become only the fifth person in AAMGA history [at that point in time] is the highest honor one could receive. To be listed as a “Donahue” recipient with the legends of our business is a memorable experience.”

R. Max Williamson – 2004 Max Williamson retired as Chairman and President of the Scottsdale Insurance Company in 2005. He spent most of his business career as an executive in the insurance business. Max received the “Donahue” from AAMGA President Ronnie Moore in 2004. Ronnie commended the Committee that selected Max as being very wise, because Max has always been a man of rock solid character and those with whom he did business always knew exactly where they stood. His work ethic was very impressive; he was dedicated to the insurance industry and especially to the wholesale agency distribution system. Max recently commented on his award: “In 2004, I was fortunate, honored and, of course, surprised to be the proud recipient of the Vince Donahue award from AAMGA, presented by Ronnie Moore, the President of AAMGA that year. I should have known something was up when Gary Tiepelman suggested that the Scottsdale delegates at the convention gala all wear a tux, which I dutifully did. It was a great evening, and I still proudly display the award in my ‘home office’ since I am now retired. I consider the few recipients of the award a very select group of professionals that I am proud to be in the same ’fraternity’ with. “I met Vince when I was a relative newcomer to the Excess and Surplus Lines side of the business. He was very helpful and instrumental in helping my employer at the time to select quality MGAs from around the country. He was, at all times, a gentlemen and a professional. I used to refer to him as the “Dean” of the E & S business. He set a high standard of excellence, a real pioneer in the E & S industry.” Max now resides in Ohio with his wife, Elizabeth, where they enjoy golf, travel, and spending time with their family.

John Clements – 2005 John Clements retired as Chairman and co-founder of Bells Clements, Ltd., London, UK, after a very successful career spanning five decades. Many of these years were spent developing unique insurance products that were exclusively marketed in the United States through wholesalers and AAMGA members. As an AAMGA Associate member, John was a truly committed advocate of Association activities and frequently volunteered his time and experience in many education activities as instructor and participant. He also was a knowledgeable member of several industry panel discussions. He was a willing co-host with many of his London colleagues for AAMGA International events scheduled in the UK. As others before him, he was “knocked out” when President Joe Hutelmyer announced his selection as the “Donahue” recipient in 2005. He knew Vincent Donahue and considered him a “formative influence.” Vince welcomed him into the AAMGA and guided him expertly on the selection of MGAs throughout the United States. John and his wife, Chris, are now enjoying retired life, often with extensive travel (sometimes on motorcycles). John also hones his woodworking talents in his home workshop.

Wesley C. Duesenberg, Jr., CIW – 2008 Wes Duesenberg is President and CEO of Southern Insurance Underwriters, CMGA, in Alpharetta, Georgia. Wes received the “Donahue” in recognition of his multiple contributions to the AAMGA, including many committee assignments, service on the Board of Directors, service as President (1987–1988), and long term as Secretary-Treasurer from 1997 through 2008. Wes, who was always a strong advocate of raising the level of education for AAMGA members, had the vision of a “university without walls,” and with great assistance from his steering committee, realized a dream when the AAMGA University became a reality in 1987. Thousands of AAMGA students have since benefited from the extensive education programs, enabling them to secure knowledge, as well as other insurance certifications. Wes continues to raise financial support. In addition, he has worked tirelessly to establish the Georgia State University Distinguished Chair in Risk Management and Insurance. He is currently Vice Chancellor of the AAMGA University. AAMGA President Tom Albrecht felt the Association used great judgment in awarding Wes this honor.

Anthony (Tony) Markel – 2011 Tony Markel is Vice Chairman of Markel and has been with the group since 1964. He has been part of the senior leadership team in operations since the corporation went public. Tony is highly respected in the business world and has seen his companies consistently evaluated as tops in their field by reputable rating firms. Tony has seen a tremendous growth in the many companies of the Markel Group, but has never lost his appreciation of the value of the wholesale distribution system and, in particular, the AAMGA. He has been a familiar presence at AAMGA events for over 30 years and has an amazing capacity for remembering the names of the people with whom he does business, as well as the members of their families. The Markel Group companies are well respected and represented by many of the AAMGA members throughout the country. When he announced Tony’s name during the Donahue Award presentation, President Mark Rothert commented that Tony’s business success has “never changed his down home sensibilities and caring about others.” Tony commented, “I have been blessed during my career to receive several awards, but none of them mean more to me than the Donahue Lifetime Achievement Award. This award, which has only been given to eight others in the illustrious history of the AAMGA, is made even more special by the fact that I not only knew and worked briefly with the Award’s namesake, Vince Donahue, but I’ve worked closely with all eight of the past honorees. To be included in this respected group is a thrill for me and, although probably unworthy, I accept this award as affirmation of a “job well done.” Our business, the specialty insurance business, has been built over time by special people dedicated to service and relationships and I am truly humbled to be numbered among them.”

Mary Carriero, Sue Katz, Joice Keating, Elizabeth Williamson

Sue Katz, Rob Giles, Laurie Giles

1997 Foreign Seminar, Vienna, Austria

Bob Schneider, Bob Katz, Ed Calabrese

Avrohm Wisenberg

Ralp Reese presents Laurie Giles with “Where’s Mary Award”

Marcus and Betty Payne, Joan and Orville Jones

Tom Rohs and Bill Alligood

Natalie Zonies, Barbara Strickland, Elizabeth Williamson, Mary Calabrese

Joan and Dick Smith, Fran and Charles Tea

Neal Strickland, Peter Carriero, Bob Zonies

Marie and Dick Bouhan

Bill and Sharon Alligood, Helen and Ray Johnston

Orville Jones, Gene Horner, Marcus Payne

Mike Snead, Ed Calabrese

Don King, Bill Fink, David Wheal

Fielder and Sue Calhoun, Andy Frazier, Mary and A.P. Cunningham

Preston and Barbara Gough, Tom Stamm, Ruby and Bob Libby

Carolyn and Jack Reed

Eleanor Lester-Westphalen

Graham Bignell, Christine Bignell, Joel Ory, Peter Barrett

Janet and Glasgow Hicks

Avrohm Wisenberg, Bob Welch, Louis Williams

Louis and Kathleen Williams

Brian McMahon, Louis Vale, John Clements

Joyce Keating, Sally Schneider, Carol Stamm, Sue Katz

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AAMGA & Lloydâ&#x20AC;&#x2122;s

A Trading Relationship That Continues to Evolve

By Peter J. Barrett Chairman Bell & Clements Limited

The founding and development of the American Association of Managing General Agents (AAMGA) 1926-1991 was chronicled in “Proud History - Bright Future” which was distributed to members at the annual meeting in 1992. From its founding, an important trading relationship developed between AAMGA and Lloyd’s. While much of the background and history that existed at the time was covered in “Proud History Bright Future,” there are some key concepts and stages of development that are worth a further review. First, the nature of the business in which AAMGA members engaged from the founding of the Association up until 1991 changed significantly. Originally, AAMGA members represented admitted carriers for mostly personal lines products. In this capacity, they acted much like a branch office for these admitted carriers writing specified coverages in designated territories. Over time, the product mix altered, with the inclusion of commercial as well as personal lines business. In the post1945 world, the pace of economic development in the United States fueled a significant increase in demand for a variety of insurance coverages. The market environment in which AAMGA members traded also altered with this increased insurance demand. There emerged a new market segment known as non-admitted or excess & surplus (E&S) lines carriers who wrote some of these “specialty” coverages.

HMS Victory: Lord Nelson’s flagship

AAMGA and Lloyd’s: A Sound Fit So how and why does Lloyd’s fit into this changing business? The answer lies in the founding and development of Lloyd’s, from its 1688 origin in Edward Lloyd’s coffeehouse in London to the worldwide market for insurance and reinsurance that it is today. As most insurance professionals know, the concept of insurance was based upon the needs of those engaged with maritime commerce. At that time, no insurance protection existed. So those involved in shipping were subject to catastrophic loss if the ship they owned, with their crew and cargo, were lost on a voyage. Such catastrophic loss had the clear potential

Waiter ringing the Lutine Bell in the Underwriting Room at Lloyd’s 45

The Adam Room in the Lloyd’s building

The Underwriting Room in the Lloyd’s building

Exterior View of the Lloyd’s building

Both parties benefit from their shared desire to find solutions to satisfy the needs of the insurance marketplace and by contributing their specific expertise to do so.

to bring financial ruin to the shipowners and other investors, without any adequate protection available. With Edward Lloyd’s coffeehouse providing the venue for those with common interests in maritime trade to gather and discuss issues of concern, the concept of sharing of risk was formulated. The theory was that in the event of a significant loss, the financial burden would be shared amongst the many and would thus be manageable, as opposed to concentrated on the few with the burden of dire financial consequences. While this was initially accomplished via a less formal agreement, it was the basis for what became marine insurance. It set the foundation for the development of the global insurance industry we all know today.

Common Goals, Different Methods In reviewing the business conducted between MGAs in the United States and Lloyd’s underwriters, it is worth bearing in mind the statement that England and the United States are two countries separated by a common language. It has much relevance in how the insurance business is also conducted. The United States is unique in that it has a two-tier market for insurance business: admitted and non-admitted status. It is also unique that within these parameters there is a 50-state regulatory framework to navigate. In addition, there are federal guidelines to comply with, and presently we are witnessing some very important structural changes to this way of regulating insurance. This all exists before any business is written and any claim occurs. The judicial issues in the United States also provide a very diverse approach to dealing with claims.

The original innovative skills demonstrated by those in Edward Lloyd’s coffeehouse to identify and customize a solution to their needs continued over the 300 years plus history of Lloyd’s and have much in common with AAMGA members who have also demonstrated their ability to react to changing conditions with innovate solutions to meet the demands of their constituents.

In the context of how the insurance business is conducted and regulated in the United Kingdom, it is safe to say that those uninitiated in writing US business face a sharp learning curve, as the US-type regulations do not exist in the United Kingdom. In the simplest context, for much of its existence Lloyd’s was self-regulating and was able to set its own

Lloyd’s Today Lloyd’s underwriters are, by nature, innovative when confronted with the unusual or exotic type of risk exposure. Examples range from custom solutions for well-known celebrities and sports stars to less well-known, but also highly complex, types of risk. In addition to these coverages, there is also a strong core of everyday casualty and property exposures that require insurance coverage. Therefore, MGAs and Lloyd’s fit well together based on the specific skill sets that each party has. By providing underwriting authorities to MGAs, Lloyd’s underwriters provide the MGAs the ability to write business within the contract terms and conditions. At the same time, Lloyd’s underwriters utilize their available capital base and risk capacity to obtain business via the MGA, which has the access and local knowledge, as well as specific risk awareness, to select appropriate risks to write.

Signature of Her Majesty Queen Elizabeth II in the Lloyd’s guest book

guidelines as respects market conduct. This has since changed, and today Lloyd’s is regulated by the UK Financial Services Authority (FSA) under the Financial Services and Markets Act 2000.

further strengthen the bonds that exist. Some examples would include holding AAMGA Executive Meetings in London with a variety of industry contacts to discuss prevalent issues, as well as those working in the Lloyd’s market participating in AAMGA sponsored events.

Lloyd’s Brokers Bridge the Gap To overcome some of the uncertainties that existed between MGAs wanting to gain access to Lloyd’s and the desire of Lloyd’s underwriters to participate in the business produced by these US MGAs, Lloyd’s brokers played a vital role. They were, and are today, the bridge that exists between the two principal parties in the conduct of this business. Over the years, Lloyd’s brokers formed relationships with specific MGAs based around the United States. They would return to London to discuss potential business opportunities with Lloyd’s underwriters. Based upon the discussions they had while in the United States, it was incumbent upon them that they possessed a thorough knowledge of the business, in addition to the financial position and ownership of a specific MGA. They must also understand any regulatory factors relating to any business opportunity. This would all be discussed with Lloyd’s underwriters to see if there was an interest in pursuing a given potential business opportunity.

The Last 20 Years—What Has Changed and What Has Not The first major change of the last 20 years is the fact that the US property/casualty industry has more than doubled in size from the total direct premiums written of $235 billion in 1991. Within that the total, surplus lines direct premium written has grown by a factor of four based on estimates for year-end 2011 (note this is a significant reduction from the peak achieved in 2006). The Lloyd’s market has equally grown during this time frame. The premium growth has been driven by many factors converging to increase demand for insurance coverage. It is important to explore some of the factors that occurred in the last 20 years to better understand the present state of play, while maintaining an eye on what the future may hold. At the same time, some factors may be unique to US business and some to UK business, but most converge with a common interest.

By working closely together, the MGA, Lloyd’s broker, and Lloyd’s underwriter would collectively bring to bear much general and specific knowledge in order to determine the most suitable course of action for a given business offering.

In the 1990s, the Lloyd’s market was confronted by some very difficult issues. There was a significant uptick in worldwide catastrophe losses, and at the same time, there was a dramatic increase in US liability losses that were presented, many of which were based on policies written in the 1950s and 1960s. The catastrophe losses were mounting when, in August 1992, Hurricane Andrew hit Florida and Louisiana, becoming the largest insured loss at that time. Additionally, the prior year US liability losses emanated mostly from insureds that were involved with asbestos and pollution exposures. This put a tremendous strain on the financial resources of Lloyd’s and those who invested in the Lloyd’s market, known as Lloyd’s underwriting members, or “names.” The market was then capitalized by these individual investors, or names, who underwrote business by participating in specific

At the same time, AAMGA provided an ideal platform for MGAs, Lloyd’s brokers, and underwriters to meet and exchange ideas and learn more about all aspects related to potential US business that could be transacted together. By working closely together and building trust through long-standing relationships, any differences in methodology could be better understood and informed decisions could be made. AAMGA members and those working in the Lloyd’s market have always communicated well with each other and have been willing to travel extensively to

Top view of the Lutine Bell housing

ture, reconstruction and renewal provided a basis on which Lloyd’s could move forward, while a special vehicle called Equitas was formed to contain the pre-1993 liabilities. In 2007, Equitas and its liabilities were acquired by Berkshire Hathaway, thus ending this chapter at Lloyd’s. During this difficult and turbulent time, AAMGA members remained resolute in their support of Lloyd’s. By maintaining their business with Lloyd’s, the MGAs greatly assisted the Lloyd’s market in overcoming this troublesome period and making a fresh start in doing business.

Lloyd’s syndicates and sharing in the profits or losses of any given syndicate. An important point to note is that the names who invested at Lloyd’s were subject to unlimited liability, i.e., to the extent of their ultimate personal net worth in order to respond to losses on the syndicates in which they participated. This resulted in some very significant losses and called into question Lloyd’s financial standing. Restructuring Lloyd’s In reaction to this situation, Lloyd’s was restructured. As of 1994, instead of exclusively individual members or names writing business on an unlimited liability basis, Lloyd’s now offers corporations and businesses the opportunity to invest on a limited liability basis. Today, Lloyd’s capital is largely provided by limited liability investments. This was followed in 1996 with an agreement known as Reconstruction and Renewal, which resulted in all liabilities for pre-1993 business being segregated from the ongoing business at Lloyd’s. While extremely complex in its struc-

From post reconstruction and renewal, Lloyd’s continued to transition in a way to make it an insurance market that kept current with the needs of the time. There were changes in all aspects of Lloyd’s business, including its capital base, methods of operating, regulatory framework, and technology. These changes all assisted in Lloyd’s achieving substantial progress to reestablish its standing in the global insurance market. As a direct consequence of the changes taking

the claims, there was, of course, also the issue of providing coverage going forward. Lloyd’s also worked with many interested parties to seek a way of continuing to provide coverage for various risks assumed by businesses that required insurance in order to be able to continue operating.

place at Lloyd’s, the number of trading syndicates fell from over 400 to 82 as of December 31, 2010. While the number of syndicates declined, the overall market capacity actually increased. This positions Lloyd’s today with the ability, where prudent, to write more business as compared to 20 years ago. Since 1993, Lloyd’s has achieved excellent ratings from A.M. Best, Standard & Poors, and Fitch.

As a direct result of the 9/11 losses, Lloyd’s made an effort to put into place contract certainty from the time a risk is bound. The prior market practice had been to bind coverage without having agreed to a full contract wording. This also applied to delegated binding authorities by requiring a comprehensive binding authority agreement being in place prior to binding of business under these facilities.

The Impact of 9/11 While this progress was continuing, the events of 9/11 profoundly affected the business in many varying ways. The shock it caused the world, along with so many uncertainties, was a challenge to endure and overcome. For the global insurance and reinsurance industry, dealing with this most complex claim scenario was unprecedented. Still, in time, with the professional dedication and effort of many, claims were dealt with. Lloyd’s fully met its claims obligations and was recognized by the US Treasury Secretary for doing so. Apart from settling

While technology will be covered separately in this book, it is important to recognize here the advances made in this area in recent years. The quality and the timely receipt of risk data that is available today has made the management of our business much more

New York City, Post 9/11/2001

efficient. With the frequency and severity of catastrophe losses in recent years, the quality of the data that is available thanks to technology has proved invaluable to all. Both members of AAMGA and the Lloyd’s market have made significant investments in technology, which have been of great benefit when doing business together. The AAMGA technology conferences have received wide support with participants from the United States and the United Kingdom. Today, the ability to analyze and model potential catastrophe losses prior to an occurrence is a direct benefit of the advances that have been made in technology. This ability to model has become a vital and useful tool for many and has been actively supported by AAMGA members and Lloyd’s for the business conducted together.

Lloyd’s syndicates by US insurance interests. There are also Lloyd’s groups who are established and trading in the United States. The ability to harness technology to drive efficiencies and professionalism will continue to play a major role in the future of our industry. However, the ability to communicate, share ideas, and work together to meet a variety of challenges will continue to be vital as they were in Edward Lloyd’s coffeehouse in 1688 and at Signal Mountain, Tennessee, in 1926, where the groundwork for what would become AAMGA was forged. The author gratefully acknowledges the information and assistance he gained during discussions with Gordon Breslin, G J Breslin Syndicate 1318; Gary Clark, Miller Insurance Services Limited; David Melaniphy, Jubilee Syndicate 5820; and David Wheel, RFIB Group Limited.

The Under Forty Organization Another important development in the last 20 years has been the launch of AAMGA’s Under Forty Organization, or UFO. This group has provided an ideal forum for those young professionals in our sector of the business to communicate with and learn from each other all facets of our unique business. It has both grown in size and stature and has been strongly supported by those in the United States and the United Kingdom. The Lloyd’s market had previously established the Lloyd’s Under 30s Group to provide younger practitioners the platform to experience many important aspects of our industry. What Does the Future Hold? The last 20 years have provided many opportunities and challenges. It is clear that this trend will continue in the future. There will be an increased demand for the insurance products we provide, as well as a need to innovate with new product solutions for emerging exposures. While it is likely that there will be an increase in mergers and acquisitions resulting in some very large trading entities, it is also probable that there will be a place for smaller entities who can provide a value-added contribution to this business. There exists today both an investment position as well as ownership of

Reference to Sir Eustace Ralph Pulbrook – a former Chairman of Lloyd’s

Barbara Moor, Iris Brayton, Jack Reed, Carolyn Reed

Susan and Bill Alligood

Evelyn and Avrohm Wisenberg

Chris Eliot, Kathleen & Louis Williams, Albert Bridge

Elton and Leslie George

Mike Sobieski, Gene McGee

Dick Morris, Marion Louise, winner of VCR, and Irv Saltzman

Courtney and Fred Steves

Preston Gough, Mike Adam, Paul Davis, Bob Libby, Sue Davis

Diana and Frank Berry

Ron and Harriet Balcar, Jeff Jenkins, Carolyn and Jack Reed

Ed Parker, Haynes Brinkley

Juanita Presley, Mike Ashner

Marcus and Betty Payne

Elton and Leslie George, Charlie Caldwell

Violet Evans, Sue and Paul Davis

Mary and A.P Cunningham

Bob Libby, Andrew Frazier

Herb Kaufman, David Price, Jerry Horton

Sue and Sandy Wilson, Paul and Sue Davis

Charles and Gloria Ellman

Jean Pondrom, Tony Curtis

Philip Oxford, Bob Libby, Mike Adams

Mike Thompson, Roger Milbert, Charles McCarron, Ken Boyd

Steve and Judy Sprowls

Winnie and Alan Rubin

C hapter

From a Course to a Curriculum: The Development of Education at AAMGA

By Chris Behymer, CPCU, ASLI Director of Business Development, Binding Markel Wholesale

In the early 1980s, educational courses provided by AAMGA were inconsistent and infrequently offered. As a result, a great deal of information about the organization and how its members operate was not being disseminated to members of the younger generation. As AAMGA President from 1987 to 1988, Wesley C. Duesenberg, Jr., CIW (Southern Insurance Underwriters, CMGA), had a vision of the future of wholesale insurance education. He believed that AAMGA should be on the leading edge of developing technical and leadership expertise within its membership. While other programs (CIC, IIA, and CPCU) were good at explaining general insurance concepts and coverages, the surplus lines component was notably missing.

insurance industry. 4. Provide a means to help future leaders of the Association understand the rich tradition and proud history of AAMGA. These objectives are as valid today as they were 25 years ago, and they still serve as a guidepost for the decisions that are made regarding AAMGA University matters. The First Day of School: Early Years If the AAMGA University was to meet its ambitious goals, it was clear there needed to be a structure in place to manage its activities. The first order of business was to establish a 501(c)(3), titled the AAMGA University Foundation, to raise $2,000,000. The Board worked closely with AAMGA members and companies to enlist Rollie Wiegers their financial support to raise the needed capital. Thanks to the many contributors, and especially Rollie Wiegers at Scottsdale Insurance Company for the initial contribution, the University was able to pledge to operate using only the interest income from the AAMGA University Foundation principle.

Virtual Reality: The Beginnings of AAMGA University In 1987, Wes enlisted the assistance of fellow Board members, Tommy Ruke, CIW (Insurance Business Consultants), Peter Scobie, CIW (The Scobie Group), John Heyden (American Modern Insurance Group), and others to begin the process of establishing a more formal educational program for the Association. It was dubbed a “university without walls.” Thus, the seeds of what grew into AAMGA University were sown to provide a vehicle for delivering quality insurance and management courses for the members of the Association. Wes Dusenberg

University Administration The structural organization of the University was similar to academic universities. It appointed Wes as the first Chancellor, Peter Scobie as Vice Chancellor, and Joel Ory as Secretary-Treasurer. Oversight was provided by the Board of Trustees comprised of the AAMGA Past President and members of the Executive Committee, which included the Chancellor, Vice Chancellor, and the Secretary/Treasurer.

Four basic goals were established when AAMGA University was formed: 1. Increase the business knowledge and management skills of managing general agency and insurance company personnel. 2. Strengthen the insurance industry’s ability to deal with an ever-changing business climate by providing continuing business and management education specifically designed to meet the needs of member MGAs. 3. Support professionalism in the managing general agency system and throughout the

Chancellor The Chancellor serves an important role in directing the activities of the University, promoting the importance of education to all members and constructing a formalized

AAMGA University Chancellors 1995 – 1998

Peter Scobie, CIW

The Scobie Group, CMGA

1998 – 2000

Fred Steves, CIW

Myron F. Steves & Co., CMGA

2000 – 2003

Preston Gough, CIW

Southern Cross Underwriters, CMGA

2003 – 2006

Leonard LoVullo, CIW

LoVullo Associates, CMGA

2006 – 2009

Rob Giles, CIW

The Scobie Group, CMGA

2009 – 2012

Joe Hutelmyer, CIW

AmWINS Transportation Underwriters, CMGA

approach to how programs are created, developed, and delivered. Wes served in this capacity from 1987 to 1995, and upon his departure, the reins of the position were subsequently turned over to former AAMGA Presidents who shared Wes’s passion for education. Director of Education To help with the day-to-day activities, Wes and the University contracted with Tommy Ruke, owner of Insurance Business Consultants, Inc. (IBCI), as the Director of Education for the University. Tommy was a well-known instructor and was respected throughout the industry as being one of the leading experts on all forms of transportation insurance. With his unique perspective on the needs of specialty insurance MGAs, Tommy got started developing components of the University in 1992, many of which still exist today.

lines industry. Offerings included Trucking, Garage, General Liability, Property, Personal Lines, Professional Liability, and courses that dealt with sales and management topics. Initially, these courses focused on coverage forms and the nuances of writing insurance in the surplus lines market. These sessions were often referred to as stand-alone classes and were scheduled at locations around the coun-

Coverages try so students’ travel time and related costs could be minimized. The format included a Sunday morning start time with completion by mid-afternoon on Monday. This not only limited the time students were away from the office, but also took advantage of reduced airfares based on a Saturday night stay, a common airline promotion in the 1990s.

The University Administrative Council To assist in the management and oversight of the University, the University Administrative Council (UAC) was formed. This group, comprised of the University Chancellor, Vice Chancellor, and chairpersons from the Curriculum Development, Accreditation, Scholarship/Internship, and Marketing Committees, teamed up with Tommy to determine the educational needs of members.

In conjunction with developing a University

Courses and Instructors One of the initial tasks was to create a catalog of courses that were specific to the surplus

catalog, it was also important to have a cadre of qualified instructors to deliver the courses. Tommy was able to use his connections with other nationally known insurance educators to persuade them to teach for the University. In addition, AAMGA members graciously volunteered their brokers, underwriters, and training professionals to add to the ranks of the faculty. It made sense to use the talented personnel from within AAMGA as these associates worked in the “trenches” on a daily basis and could offer both theory and practical application to the information being taught.

versity established three professional designations: • Certified Insurance Wholesaler (CIW)—Designed for agency principals and managers, this designation required completion of 120 hours of approved courses plus submission of a research project on a topic related to the wholesale industry. • Certified Wholesale Insurance Specialist (CWIS)—This designation was similar to the CIW in terms of the number of hours and project requirements but nonmanagement agency personnel and company underwriters could elect to earn these initials.

The Role of Continuing Education To improve the marketability of University courses, the UAC and the Curriculum Committee determined that offering continuing education (CE) credit would be an added benefit for members. In 1992, over half the states had CE requirements for licensed agents (and that number has since grown to include all states and Washington, DC). While the statutes varied, most stipulated completion of a certain number of qualified CE hours each year or every 2 years in order to maintain a license to sell insurance. Becoming a CE provider in multiple states is not an easy task as the regulations and requirements are different in each jurisdiction. However, by 1993, with the help of IBCI, most AAMGA classes offered CE credit on a nationwide basis. It was one of only a handful of organizations in 1993 to be able to make this claim and is still the only one with a curriculum comprised mostly of surplus linesrelated classes.

Note: the CWIS and CIW designations were combined in 2008, and individuals with the CWIS were granted the CIW designation. • Certified Managing General Agency (CMGA)—The CMGA is unique in the crowded world of insurance designations as it requires all members of an agency’s staff to complete an average of 8 hours of approved course work. In a sense, it is recognition of an agency owner’s commitment to ongoing education for the entire organization.

Another benefit to offering courses approved for continuing education credit is the enhanced reputation of the University that comes with third-party oversight. Having a regulatory body approve course content lends a certain amount of credibility to the material covered, as well as increased attendance at University outings.

Members with the CIW designation are required to renew their designation every 2 years by completing 32 hours of approved education courses, and CMGA designation holders must requalify every year. As of June 2011, there are 55 AAMGA members with the CIW designation, and 34 agencies have earned the CMGA designation.

Professional Designations To support and encourage participation in a wide range of educational pursuits, the Uni-

what happened.

Good Students: Scholarships and Internships Recognizing that success in the future depends on the preparation of the next generation of leaders, the University developed scholarship and internship programs in 1997. These opportunities are targeted to AAMGA member agency owners’ children pursuing college degrees with an insurance or business major. They can apply for scholarships that award up to $2,500 a year in financial assistance. In addition, a comprehensive internship program was introduced in 1998, which now provides a wide-range of learning opportunities. Interns are assigned to a member company and a general agency outside of their “home” territory. There is also an option to spend time in London to learn about the importance this market plays in the surplus lines industry.

Nurturing Success Success in the surplus lines industry is based to a large degree on building and enhancing relationships between general agents and insurance company underwriters. Having the ability to meet with and get to know the company decision makers is critical for general agents and vice versa. With that in mind, University leaders began looking for a venue where these two groups could come together and learn more about the business, as well as socialize before and after classes to develop the trust that is so important to writing business. Hot Prospects … Literally In August 1994, University Weekend was moved to Scottsdale, Arizona. Now, going to Arizona in the middle of the summer is not something that most sane people would do. But the advantages were too great to ignore.

Cramming for Credit: University Weekend The stand-alone courses proved popular with all AAMGA members. These sessions focused on one topic at a time, such as Property or Trucking Insurance, and allowed students to earn 12 hours of CE credit. However, the UAC wanted to make additional educational opportunities available to members, so the concept of a University Weekend program was born in 1991. Unlike the stand-alone classes, University Weekend sessions provided a smorgasbord of topics, and participants could select from a variety of CE-approved and non-CE courses to attend during the 3-day program. Another advantage was that with a little planning, agents could earn up to 20 hours of CE credit in just one weekend, thereby meeting the annual or biennial requirements in most states. In 1991, this idea was tested in Kansas City in conjunction with Committee Day, and in 1992 a similar session was held in Minneapolis. Attendance was somewhat limited, but it was clear there was merit in delivering multiple topics over a period of several days. The goal was to eventually make University Weekend the flagship educational program of the Association. History shows this is exactly

Teamwork They included the following. 1. Hotel rates are deeply discounted during the off-season so accommodations were available at an affordable cost. 2. Phoenix is served by an international airport and participants from around the county (and internationally) were able to get to Arizona fairly easily.

the budgetary and time constraints, this East Coast location also allows members from that part of the country to attend a quality education program without the need to fly all the way to Arizona. Some might argue that the two programs “compete” for students, but the results have proved just the opposite. Individuals who would not have traveled to Arizona are now making the decision to attend University Weekend East because it is held in a convenient location. University Management In 1996, the University Administrative Council began discussing the idea of hiring a full-time Director of Education to assist in the management of the University. After a good deal of discussion and with approval from the AAMGA Board, Chris Behymer was hired in October of 1998 to fill this role. Chris (the author of this chapter) was based in Scottsdale, while the administration of University courses (mailings, registrations, and accounting) stayed at the Association’s management firm in Kansas City. All matters related to continuing education (CE) filings and reporting was retained by IBCI in Fort Myers, Florida. While the separation of duties across the country might appear to be unwieldy, the advent of technology made the process seamless for AAMGA members.

3. However, the most compelling reason was due to the critical mass of surplus lines insurance companies located in the Phoenix area. Not only did these companies provide instructors and participants for the classes, it gave both groups the chance to meet to discuss the industry in general and explore new business opportunities. It was a winning combination for general agents, company personnel, and the Association. Attendance gradually increased over time from 60 people in 1994 to 262 participants in 2011. In 1994, basic topics such as Property, General Liability and Garage Underwriting and even a session on using computers to rate and quote submissions were offered. The curriculum in 2011 featured some of the same elementary sessions, but also included classes on Cyber Liability, Environmental Underwriting, a panel discussion featuring company and agency leaders, management development training, and a series of classes on human resource related issues.

The role of the Director of Education was clearly defined and included the following duties: • Determine member educational needs through individual interviews and surveys. • Balance the development of CE and non-CE courses with an emphasis on leadership fundamentals for the next generation of managers. • Expand the use of onsite programs where AAMGA University courses are offered at a member’s office for their staff and their retailers. • Develop the concept of Regional Educational Programs with a focus on more basic insurance activities such as liability and property rating. • Use technology and the Association’s website to more effectively communicate with

If You Build It, They Will Come: The Expansion of University Weekend With the success of the Arizona program, the UAC exported the concept to Minneapolis in 1999 and Philadelphia in 2000, while keeping the Arizona program firmly entrenched as the flagship program for the University. For the past several years, University Weekends have also been held in Richmond, Virginia, which is emerging as a formidable surplus lines hub with a multitude of carriers willing and able to support the University. Always mindful of

members. • Assist with the coordination of internship and scholarship activities. • Coordination of educational programs at Association events (Zone, Mid-Year and Annual meetings). • Explore the opportunity to partner with other associations to develop technical and leadership-based education programs.

varied background in economics and insurance to the position. The purpose of the Chair is to focus on issues and opportunities in the wholesale insurance industry and expand the formalized educational process beyond the scope of AAMGA University. The addition of Georgia State University will prove to be a powerful partner for AAMGA members in the future.

The current Director of Education, Jeff Henry, M.Ed., was hired in October 2007 and has implemented a whole host of innovative ideas including online learning opportunities, a leadership track for members of the Under Forty Organization (UFO), and curriculum for members of senior management. In addition, he is developing introductory schools for those new to the surplus lines industry.

The Future of AAMGA University When asked to comment about the future of AAMGA University, current Director of Education Jeff Henry said, “The AAMGA University’s vision has always been to provide members with a learning experience which strengthens their skills and abilities and moves their careers and organizations forward. To make this a reality, new waves of thinking and educating will always be required. Much has changed since AAMGA University’s inception in 1991. However, the basic tenets of the University remain the same.

Have a Seat: The Distinguished Chair of Insurance at Georgia State University In 2005, another ambitious task was undertaken as Wes persuaded the Board of Directors to establish a formal Chair of Insurance at a major university. After 2 years of discussion and another 3 years of critical fundraising led by Ed Levy of Risk Placement Services in Scottsdale, and with a significant contribution by Scottsdale Insurance Company, the AAMGA Distinguished Chair in Risk Management and Insurance at Georgia State University was officially granted in March 2011.

“As the educational arm of AAMGA,” Jeff continued, “the University is charged with providing relevant training programs to assist members in growing their businesses. While classroom instruction still plays a vital role in the University, much progress has been made in pushing learning opportunities to the desktop and beyond. Company and agency personnel work in much different environments today than 20 years ago. The needs of our learners shape our ever-evolving University.”

Dr. George Zanjani was selected as the inaugural holder of the Chair and brings a

In class: Greg Rubel, Greg Corneille, Chris Behymer, Tom Stamm, John Latham

Amy and Greg Gold

Ray Williams and Joe Timmons

Dicksie and Francis Johnson

2004 Board: Wes Duesenberg, Len LoVullo, Scott Anderson, Francis Johnson, Bill Fink, President Joe Hutelmyer, Tom Albrecht, Euclid Black, Ronnie More, Ed Levy

Sandy and Donna Jackson

Wes and Jo Duesenberg

Barbara and Tom Rogan

2005 Victoria, Canada, Whale Watching Group

Ed and Jami Levy

Bob and Zuezann Hanna

Amy Gold and Barbara Rogan

Ronnie Moore riding Bull

Joe and Lynn Hutelmyer

Mason Blodgett, Sandy and Donna Jackson

Marge and Frank Powell

Debbie and Bobby Owens

Cindy LoVullo

Jo and R.C. putting the squeeze on Wes

The Anderson Cooking Team; Shelly, Dorothea, Scott, Jan Rothert, Jason, Rosemary, Samantha, Samantha, Linda Forest

Gary and Chris Peterson

Cooking Judge Bernie and his Jury

Suzanna and RC Chaffin

Max Williamson, Preston Gough, Len LoVullo, Barbara Gough, Elizabeth Williamson

Curtis and Rosemary Anderson

Ron Grove, Donna Schacher, Carol Stamm

Ken and Bob Distel

Brian Clark and Mike Miller

Euclid Black makes a point

2006 Foreign Seminar, Dursten on the Danube

Barbara and Preston Gough

2006 Foreign Seminar, Vienna, Austria Bike Ride

Jeff Henry

Mike Miller

Corinne Jones with friend, Paul

Marilyn Bauckham

2006 Foreign Seminar, Budapest at night

C hapter

The AAMGAâ&#x20AC;&#x2122;s Influence on Regulation and Legislation

By Jim Roe, CPCU President Arlington/Roe & Co. The author gratefully acknowledges the assistance of Rick Pitts, Vice President and General Counsel of Arlington/Roe & Co., in the writing of this chapter.

The Governmental Affairs committee of the AAMGA is a hugely important part of the Association and its drive to serve its members. The Governmental Affairs Committee’s interests are as wide-ranging in subject matter as the businesses and individuals the Association’s members insure. The Committee is charged with the responsibility to keep current on all federal, state, and industry regulatory and legislative matters—in and of itself a daunting task. The Committee is also responsible for providing news and educational materials on legislative and regulatory matters to the membership. In its most visible role, the Committee and its members interact with the Executive Director and Board of Directors to ensure that the Association’s membership is represented at all significant federal and industry meetings and conferences. AAMGA has been a preeminent voice for the wholesale insurance industry for more than a decade, as well as a recognized advocate for surplus lines in general and the surplus lines consumer in particular. As the Association’s website noted in 2011, “The AAMGA’s influence in Congress and with state regulators has enabled members of the Association to advance needed insurance reforms and to then lobby their own elected representatives and regulators on matters of importance to the wholesale insurance industry.”

and industry successes. But the story actually begins even before that. An Anachronism for a New Beginning The story of the AAMGA’s legislative and regulatory efforts from 1991 to 2011 really begins in the height of the Great Depression. In 1933, Congress passed the Glass-Steagall Act. Among other provisions, the GlassSteagall Act erected barriers between the banking, securities, and insurance industries.

This preeminent position is evidenced by not only the wide-ranging roles mentioned above, but also the Association having become a trusted source of information and testimony before Congress, the National Association of Insurance Commissioners, and the National Council of Insurance Legislators.

The provisions of the Glass-Steagall Act were actually rather simple. The Act prohibited commercial banks, as well as their holding companies and affiliates, from engaging in investment banking activities. The Act also prohibited investment banks from engaging in activities normally associated with commercial banking. These included accepting deposits and making business loans.

This wasn’t always the case. Over the past 20 years, the Government Affairs Committee has strengthened its leadership role and influence by sheer dint of hard work, effort, and the leadership of its volunteers and dedicated staff. The story of the Committee’s last 20 years is a story of both legislative successes

The reason that these restrictions were put in place was an economic theory: The mix of

investment and commercial banking activities had led to both the Stock Market Crash of 1929 and a number of bank failures between 1929 and 1933. Subsequent research cast doubt on this theory; nevertheless, it held sway for many years.

insurance activity if done through a non-bank subsidiary. The Act also eliminated any meaningful restrictions upon national banks, previously understood to be based upon population in the area being served, from engaging in insurance activities.

Over the course of the years, there were many attempts to modify or eliminate some of the provisions of Glass-Steagall. The 1970s, 1980s, and early 1990s all saw incursions from both sides on the other. From a business point of view, it was likely Citicorp’s acquisition of the Travelers Group in 1998 that represented the high water mark for mixing between commercial and investment banking. Of course, with the Travelers Group being involved, there were insurance implications.

The GLBA also created a complex web of new regulations with regard to the sharing of consumer information. This, too, had a significant impact on the insurance industry. The regulations began from the premise that all of the privacy requirements were applicable to “financial institutions,” which included insurance carriers. It also gave the Federal Trade Commission authority to create significant privacy rules for both consumers and customers.

For an excellent discussion of the history of Glass-Steagall and the Gramm-Leach-Bliley Act, see the article by Prof. Lawrence J. White of New York University, entitled “The Gramm-Leach-Bliley Act of 1999: A Bridge Too Far? Or Not Far Enough?”

Shortly after the law’s passage, many consumers were flooded by documents entitled, “Privacy Notice” or “Notice of Privacy Practices,” whereby companies would identify what types of nonpublic personal information the company gathered, disseminated, or otherwise shared among its various affiliates. The basic contours of the financial privacy requirements of the Gramm-Leach-Bliley Act can be found on the Federal Trade Commission’s Bureau of Consumer Protection Business Center website (http://business.ftc.gov/), and in the document, “In Brief: The Financial Privacy Requirements of the Gramm-Leach-Bliley Act,” at http://business.ftc.gov/documents/ bus53-brief-financial-privacy-requirementsgramm-leach-bliley-act.

Tearing Down the Glass-Steagall Walls: The Gramm-Leach-Bliley Act In 1999, Congress passed a new law, known as the Financial Services Modernization Act of 1999. It was more commonly known by the name of its three primary authors, Senator Phil Gramm of Texas, Rep. Jim Leach of Iowa, and Rep. Tom Bliley of Virginia. The GrammLeach-Bliley Act (hereafter, GLBA) removed many of the walls created by Glass-Steagall.

AAMGA’s Legislative Matters Representative From 1991 through the end of the decade, AAMGA was ably represented in legislative matters by Bill Marcoux of the firm then known as LeBoeuf Lamb. Bill’s presence was felt at many meetings of the National Association of Insurance Commissioners (NAIC). At that time, the AAMGA committee responsible for monitoring legislative matters was known as the “Legislative and Regulatory Monitoring Committee” (aptly enough). Former AAMGA President Victor Giordano of Pennock Insurance became the key liaison to AAMGA and a bedrock member representative of the

According to Prof. White, the GLBA reversed the Glass-Steagall Act by repealing its key prohibitions. The GLBA permitted traditional, commercial banks to use their holding companies as financial services holding companies. The banks could then use other subsidiaries of the holding company as vehicles for engaging in investment banking activities. The new act also permitted national banks to engage in a similar structure. The significance of this for the insurance industry was that GLBA expressly permitted bank holding companies to engage in an

general agency community’s interests.

subtle, but meaningful. The Model MGA Act was an example of this, as the Association was successful in adding drafting notes to the Model Act. These drafting notes clarified that even if one goes by the name of a “managing general agent,” one does not necessarily fit the statutory definition. Providing this clarity to the Act’s definition was a valuable contribution, as well as being indicative of the technical expertise AAMGA brought to the issue. Without that clarification, members could find themselves ensnared in regulations at the state level when the NAIC’s intent was quite the opposite.

Bill and Victor kept the AAMGA board and its members abreast of ongoing legislative and regulatory issues. The Association invited updates from both gentlemen at the annual and mid-year meetings, sponsored Governmental Affairs Breakfasts for reports on issues, and continued the State Reporting Representatives list of members in each state. Even with these activities, AAMGA was still relatively unknown in legislative and regulatory circles. For most of the 1990s, AAMGA had been more reactionary in nature. That would change with the NAIC’s Model Managing General Agents Act.

It was also during this time of the late 1990s and early 2000s when AAMGA became much more proactive in legislative and regulatory issues. The Governmental Affairs Committee was reenergized and the Board of Directors was very supportive of the committee’s involvement and activity. In 2001, the AAMGA Board hired Bernie Heinze and Accolade Management as the executive management company of AAMGA. Bernie, with his legal and government background, immediately became the face of AAMGA at industry meetings and helped lead AAMGA to become a dominant player in the specialty property -casualty insurance industry.

State Regulation of MGAs Throughout the late 1990s, the Association was substantially involved in monitoring the progress of the Model Managing General Agents Act through the NAIC. By mid-2002, NAIC had finished its work with the Act and sent it on to the various states for implementation. The Association objected to the NAIC version of the Act as it finally passed, largely on the basis that the NAIC’s model did not correctly identify and exempt most of the members of the Association that were subject to the regulation. It was important to clarify the difference between the NAIC’s definition of a “managing general agent” and the role of the members of the AAMGA. The Model Act defined a “managing general agent” as being, “one who manages all or part of the insurance business of any insurer” and “adjusts or pays claims in excess of $10,000 per claim or negotiates reinsurance on behalf of the insurer.” Most of the members of AAMGA don’t align with this definition. (For an example of the Model MGA Act as eventually passed by most states, see http://www.in.gov/legislative/ic/ code/title27/ar1/ch33.html, from the author’s home state of Indiana.)

Broker Disclosure Requirements—Defensive Success In 2004 and 2005, the Association was faced with a difficult situation. The issue was that of disclosure of compensation for people in the insurance industry. Originally spurred by then New York attorney general Eliot Spitzer, states began attacking the compensation models used by many insurers (both admitted and surplus lines) to compensate those on the production side of the industry. The original allegations involved claims of a conflict of interest because of compensation such as contingent commission agreements, or profit sharing contracts. The theory, as alleged, was that producers were selecting carriers on the basis of their own financial self-interest, and not necessarily the interest of the insured.

Contributions of AAMGA’s Governmental Affairs Committee In many instances, the work of the Governmental Affairs Committee of AAMGA is

Various states’ attorneys general instituted

litigation in their states, and several admitted carriers voluntarily eliminated (for a time) or restricted contingent compensation. Case law subsequently cast substantial doubt on the necessity of taking such a drastic action. See, for example, People ex rel. Cuomo v. Wells Fargo Insurance Services, Inc., at http://www.eapdlaw. com/files/upload/case-Cuomo_v_Wells_Fargo.pdf.

ment. Recognizing that Association members are wholesale intermediaries and have neither direct nor indirect contact with the buyer, the Association proposed an addition to the NAIC Model Act. The additional language clarified that the compensation disclosure requirements would not be applicable to anyone functioning as an intermediary between the producer and the carrier. The AAMGA’s website has an excellent document on this at http://www.aamga.org/files/AAMGA_Position_on_Broker_Disclosure.pdf.

At the time, however, no one could predict with any certainty how far the regulatory community would go in attempting to control compensation agreements or at least their disclosure. The NAIC began consideration of an amendment to The Producer Licensing Model Act. Specifically, the amendment would require disclosure of all forms of compensation from the insurer.

The Governmental Affairs Committee and Executive Director Bernie Heinze showed a deft touch in diffusing what could have been an extraordinarily difficult public relations and regulatory environment in which to operate. TRIA No discussion of the period from 1991 to 2011 in the insurance industry would be complete without a discussion of the Terrorism Risk Insurance Act (TRIA), which originally passed Congress on November 26, 2002. The Act was extended through 2007 and then was subsequently extended through 2014. Whether it will become a permanent part of the legal landscape remains yet to be seen. It was initially enacted to be a shortterm measure. Originally, Congress passed TRIA as a “backstop” for the insurance industry to allow time to develop terrorismrelated products and policies. The “backstop” was in the form of a government-backed or government-sponsored reinsurance program to make insurance for terrorism less risky and more affordable for companies to offer.

AAMGA’s Government Affairs Committee Campaign The Government Affairs Committee handled the situation with aplomb. Working with the Association’s other committees, the Government Affairs Committee waged an all-out campaign on both a public relations and a lobbying basis. The focus was to assist the consuming public in understanding what AAMGA membership did—the valuable role it performs in procuring insurance—and how it relates to insurance producers. It also had to reassure the consuming public and the regulators that AAMGA members were exemplary in their business activities. AAMGA President Joe Hutelmyer of AmWins Transportation issued a broad statement in support of the Association’s membership, noting that it included a mandatory annual certification of compliance with the Association’s strict code of ethics. Hutelmyer outlined the future path of the Association: “We need to continue facilitating this non-delegable responsibility so as to foster the confidence and expectations of our customers and investors in the insurance marketplace.”

Now, the Terrorism Risk Insurance Act of 2002 stands on its own. It is administered through the Department of the Treasury. The Treasury Department has put in place extensive supporting regulations of this law, which include a claims procedures rule and a litigation management rule. These rules govern how claims and litigation are processed in the event of an “act of terrorism.” For the most part, an “act of terrorism” is defined as an act that is certified as such by the Secretary of State and exceeds $100 million in property

Significantly, on the legislative front, the Association was instrumental in influencing the NAIC with respect to the proposed amend-

and casualty losses. The figure was originally set at a much lower threshold of $5 million. Much more information about TRIA can be found at www.treasury.gov/resource-center/ fin-mkts/pages/program.aspx.

Accordingly, the Association resisted attempts to repeal the McCarran-Ferguson Act, the law preserving the anti-trust exemption for the insurance industry. These attempts to repeal McCarran-Ferguson hit their high point of intensity in 2007, as did the Association support for it. Led by the efforts of Association Executive Director Bernie Heinze, the Association and its Governmental Affairs Committee joined with a chorus of other industry associations in defeating the attempt to repeal the industry’s anti-trust exemption.

The AAMGA was very supportive of TRIA’s federal backstop provisions on behalf of insurance buyers. However, the Governmental Affairs committee was and is vigilant in watching how the legislation applies to its members to ensure the most efficient process of providing coverage.

Support for the Non-Admitted and Reinsurance Reform Act Yet perhaps the peak legislative achievement of the Association’s “defense” of state-based regulation was in its instrumental support for passage of the Nonadmitted and Reinsurance Reform Act (NRRA) in 2010. The Association had long held to the view that insureds and the marketplace overall are best served by having an “easily understood and uniform procedure for remitting surplus lines premium taxes on multi-state risks,” and had long called for states to implement such a system.

Striving toward Simplicity, Fairness, and Acceptable State-Federal Relations As the AAMGA reanimated its Governmental Affairs Committee in the 2000s, several key principles became guideposts for determining whether to support or oppose legislative initiatives and how to deploy resources related to them. These core concepts guided the heavily involved Committee through many complexities, especially those coming from Congress. The first of these principles was maintaining the integrity of the surplus lines market by resisting regulation of surplus lines rates and forms. The Association understood that the surplus lines market provided a valuable service to insureds that are unable to find their insurance needs met in the standard marketplace. Those insureds are best served by a surplus lines market that has flexibility, capacity, and creative underwriting available to it. The Association resisted any incursion into that flexibility and innovation.

The Association’s position, one of fundamental fairness, transparency, and ease of application, was borne out of the importance of the surplus lines industry itself. As Bernie Heinze communicated to the NAIC in 2010, “over $30 billion in premiums are transacted within the excess and surplus lines insurance industry each year. We can ill afford to diminish the importance of this objective with anything less than a comprehensive solution that will adequately serve all constituencies of the marketplace.”

In a similar vein, the Association was committed to a regulatory environment that fostered an appreciation for the valuable contributions of the surplus lines market. This meant favoring state regulation over comprehensive federal regulation, within generally recognized limits. The Association supported reasonable degrees of uniformity and reciprocity between states, especially in areas such as licensing of producers, but remained committed to a state-based regulatory system.

NRRA was adopted as part of the comprehensive response to the financial crisis of 2008 and 2009, and was a part of the law known as the Dodd-Frank Act. The basic provisions of the law were powerful in their simplicity. First, the NRRA required that the surplus lines premium tax be paid to one state and one state only: the insured’s “home state” or “principal place of business.” Second, states other than this “home state” were prohibited from imposing taxes upon or regulating the

insurance transaction. The law was, in essence, a “hands-off” from at least a taxing and licensing point of view.

The AAMGA’s Current Legislation and Regulation Influence At this writing, the NRRA and its implementation is continuing to undergo scrutiny as there are many unanswered questions regarding taxation issues.

The statute also created a framework in which states could develop uniform requirements, procedures, and related forms for insurers to be eligible for export to another state. Again recognizing state authority in this area, the federal statute did not create the standards on its own. Instead, the statute created only a default in the event that states did not develop those standards. A surplus lines carrier would be eligible for export on a national basis if it maintained at least $15 million in capital and surplus, or met the higher requirements of the home jurisdiction, and was admitted in one state.

The vital work of the AAMGA’s Governmental Affairs Committee has been reenergized and expanded in the last 20 years. But it does not just involve the landmark federal issues noted above. The Committee’s work also includes multiple issues on the state level as it tracks developments on insurance policy forms and coverage, licensure issues, and a myriad of other concerns. The breadth and depth of the AAMGA and the Committee’s work can be seen in the extraordinary collection of talent on the Committee, past and present. Presently chaired by Josh Korver of The Insurance Center, An Alaskan Corp., and vice-chaired by Bill Malone of Continental/Marmorstein & Malone, the Committee has experienced industry leaders from MGAs throughout the United States, Lloyd’s representatives, company participants, and lawyers specializing in surplus lines law. This leadership has included but is certainly not limited to past AAMGA Presidents James A. Roe, CPCU, Arlington/Roe & Co; Victor Giordano, CIW, Pennock Insurance; Ronnie C. Moore, CIW, Southern General Agency; Tom Albrecht, TAG Underwriters; and past committee Chair Kurt Bingaman, CPCU, Russell Bond Company.

Perhaps even more importantly, the adoption of the NRRA represented the fulfillment of the AAMGA position on the interplay between state and federal regulation. The passage of this law on a federal level created an environment in which the states could determine how to share premium taxes on risks with locations in multiple jurisdictions. The states could do so, however, while retaining their own authority over transactions within their jurisdiction. Support for Slimpact Similarly, the Association supported the adoption of the Surplus Lines Insurance MultiState Compliance Compact, commonly known as “Slimpact,” as a form of agreement for states to adopt after the passage of NRRA. Slimpact was expressly designed to implement the provisions of the Nonadmitted and Reinsurance Reform Act. It created a commission for the states that entered into the agreement. The commission was given the authority to adopt rules for how to allocate tax proceeds which had previously been collected on a piecemeal basis by various states. The agreement also created a clearinghouse for transaction data and tax payment. More on the provisions of Slimpact can be found at www.ncsl.org/documents/standcomm/sccomfc/slimpact.pdf.

2003 Board; Bernie Heinze, Wes Duesenberg, Scott Anderson, Baron Garcia, Francis Johnson, President Rob Giles, Preston Gough,Ronnie Moore, Bobby Owens, Roger Lott, Joe Hutelmyer

President Joeâ&#x20AC;&#x2122;s Family: Elizabeth, Kevin, Catherine, Joe and Lynn Hutelmyer

Randi Scobie, Teresa Rogan and Carol Stamm

Baron Garcia and daughter Jennifer

Ed Calabrese and Lou Mastos

Donna and Bob Schacher, Barbara and Tom Rogan

Betty Moore, Marge Powell, Jami Levy

Cindy LoVullo, Randy Scobie, Jo Duesenberg, Barbara Rogan and Sheila Waller

Ladies Tea Party - Carrie Hayden, Barbara Gough, OJ Mavon

Teri and Euclid Black

UFO Spouses, Nancy Smith, Jennifer Clark, Annie Miller, Stephanie Scobie-Niebergall

Bob Distel and Greg Murrey

Zonya and Matt Letson

President Mark and First Lady Jan Rothert

President Wayne Forest and wife Linda

Sue and Paul Davis

Preston Gough

Mamie and Scott Anderson

Mostly white coats! Frank Mastowski, Wes Duesenberg, Rob Giles, Tom Albrecht, Curtis Anderson, Scott Anderson, Euclid Black, Francis Johnson, Ed Levy, Mark Rothert

Wes Duesenberg and RC Chaffin

Liz McKee and Director Gary Peterson

Anne Marie and Jim Mastowski

Tom Albrecht and Bob Karr

Claudia Carnevale, Scott and Mamie Anderson, Helen Bjornson

Corinne Jones

Randi and Peter Scobie

Kelly and Mark Maucare

Len LoVullo, Matt Letson, David Parker, Russ Rado

Mac Wesson and wife Jean-Marie

Matt Letson and Tripp Duesenberg

R.C. Chaffin

Pam and Tom Mulligan

Rosemary and Curtis Anderson

C hapter

Revolutionaries or Renegades? A Brief History of the Under Forty Organization (UFO)

By Kerry Dillard President Bloss & Dillard, Inc.

The UFO chapter is dedicated to Robbie Johnson who lost his battle with cancer in 2009. Blair and Robbie Johnson

The need for a sub-group of the AAMGA that would be of interest to the younger members had been discussed for years. In 1991, it was finally created. A group of enthusiastic men and women held their first organizational meeting at the Annual AAMGA Meeting at The Phoenician in Scottsdale, Arizona. The original concept was to provide camaraderie, a forum for sharing ideas and a support group for those members if a special need arose.

4. Campaign for more recognition and members participation. 5. Elect a UFO Executive Committee to serve on the AAMGA Legislative Committee. 6. Involve UFO with Lloyd’s Under 30’s Group. 7. Include AAMGA University Classes at UFO Annual Meeting. The initial leadership group became a perfect example of the UFO vision: These young people are now deeply involved in our business as MGA owners, officers of insurance companies, and underwriting and brokerage leaders around the world. In addition, as hoped, many UFO members became, and continue to become, active in committee and Board of Directors positions of the Association. Two of them, Francis Johnson of Johnson & Johnson, and Scott Anderson of Concorde General Agency, have served as presidents of the AAMGA. Further, the impact made by the UFO with the AAMGA University continues to strengthen each year.

Tom Rogan, the 62nd President of the AAMGA, took the idea to the Board of Directors and received unanimous support and authority to form the sub-group that was later branded “The Under Forty Organization,” or “UFO” for short. Tom worked with Sandy Jackson of Agents Insurance Markets (Virginia), Jim Welch of Welch & Company (California), Kerry Dillard of Bloss & Dillard (West Virginia), and John Love of W.E. Love and Associates (North Carolina) to help take it from an idea to a reality. Vision and Leadership Under the leadership of its first chair Sandy Jackson, the UFO quickly scheduled a meeting in Kansas City in November 1991. The group conducted a seminar about “Agency Perpetuation” and held a business meeting to discuss the objectives of the UFO. The following decisions were made at this first business meeting.

Meetings and Educational Offerings With its relatively small size, the UFO has the luxury of holding a meeting in most any location and has taken full advantage of that. It has also been credited with helping create many educational classes that continue to be taught on a regular basis. The following chart provides a chronological listing of past chairs, their companies, meeting sites and educational offerings.

• The group will elect a Chair and three Vice-Chairpersons (one from each zone). The Chairperson will remain on the Executive Committee as “Immediate Past Chairperson” for 1 year after his or her term. • Associate Members will be invited to be involved on the same basis as they are in the AAMGA. • 1. 2. 3.

The following goals were set: Establish bylaws if seen to be necessary. Involve Associate Members. Build funding and develop a budget through dues and fundraising.

Year Chairperson Company Meeting Location Educational Offering

1999 – 00 David Parker Hanover Excess & Surplus, Inc. New Orleans, LA Successful Leadership

1991 – 92 Sandy Jackson Agents Ins. Markets Kansas City, MO Agency Perpetuation

2000 – 01 Francis Johnson Johnson & Johnson, Inc. Jackson Hole, WY Organizational Communication

1992 – 93 John Love W.E. Love & Assoc. Charleston, SC State vs. Federal Regulation

2001 – 02 Kent Libby Southern Ins. Services Vancouver, BC Cancelled due to 9/11

1993 – 94 Kerry Dillard Bloss & Dillard, Inc. Scottsdale, AZ Disaster Recovery

2002 – 03 Greg Gold MacNeill Group, Inc. Wrightsville Beach, NC Future Leadership Forum

1994 – 95 Paul LoVullo LoVullo Associates, Inc. Chicago, IL Duty to Defend & Fraud

2003 – 04 Jim Kranzberg SKANCO Napa, CA Underwriting Quality

1995 – 96 Scott Anderson Concorde Gen. Agency Palm Beach, FL World Insurance Market

2004 – 05 Harry Johnson Johnson & Johnson, Inc. Stowe, VT Ins. Management Exercise

1996 – 97 Phil Mavon G.A. Mavon & Co. Seattle, WA Market Cycles

2005 – 06 Seth Johnson Atlantic Specialty Lines Lake Tahoe, NV Program Development

1997 – 98 Robbie Johnson Johnson & Johnson, Inc. Portland, ME Reinsurance

2006 – 08* Bryan Clark The Gorst Co., Inc. Boston, MA Employment Relationships

1998 – 99 Matt Smith The Southern General Agency of Tennessee Carmel, CA Contact with Clients

2008 – 09 Matt Letson Hanover Excess & Surplus, Inc. Whistler, BC Employment Practices

association meetings throughout the year. The second Chair of the UFO, John Love, perhaps could have benefitted from this Leadership Track, if his memories of serving as UFO chair are any indication: “Effective education with a killer hangover is a delicate balance of art.” Pub-nership with the Under 30s Group of Lloyd’s The Under Forty Organization started leaving the cozy confines of the United States in 2003 and headed to London for its first International Seminar. Since then they have returned twice. The trips to London helped accomplish one of the original goals of the group: to establish a partnership with the Under 30’s Group of Lloyd’s. The latest group that went to London continued what is now a tradition of socializing with the Under 30’s Group at a local pub. The apple does not fall far from the tree, as they say! Meetings have also been held in Bermuda and Munich.

2006 Teambuilding Activity

2009 – 10 Tripp Duesenberg Southern Ins. Underwriters, Inc. Williamsburg, VA UFO Leadership Track 2010 – 11 Colleen Giles-Harris** Scobie Group Austin, TX UFO Leadership Track **Title of UFO “Chair” was changed to “President.”

The People and the Laughs: Past Chairs Share Their Memories Past UFO chairs were asked a few questions about their time in the UFO, and the AAMGA in general, including their memories, challenges they faced and how the organizations contributed to their development. In the following sampling of their answers, common themes clearly emerge.

2011 – 12 TC Anderson Risk Placement Services, Inc. Park City, UT To Be Determined

Sandy Jackson (Agents Insurance Markets) recalled how the group of guys came together to try to get something new started. “We were all SOBs back then, and the UFO gave us

*Officer Term edited per By-Law approval at 2007 UFO Annual Meeting. Training the Future Leaders In 2009, the UFO/AAMGA partnered with Georgia State University to develop a fourpart series entitled, “Leading the Future.” The program includes four key courses supplemented with webinars. These courses were designed to be part of the UFO Annual Meeting in the Fall, but each class is self-contained so that students can take the courses in any order. These classes continue to be offered at the UFO Annual Meeting, as well as at other

2006 Teambuilding Activity

somewhere to share ideas and discuss the stoic ways of our fathers.” Sandy learned from his short time in the UFO that the AAMGA is committed to the youth in the organization. At the first UFO meeting, Sandy, who goes to bed quite early, also picked up his nickname: Grandpa.

experience leadership while still in his 20s, which was highly beneficial. He learned to lead a meeting, balance the interests of all in attendance, and learn from everyone at the meeting. New ideas were always being shared and offered. Francis Johnson (Johnson & Johnson) remarked that the UFO connected him to all his peers, and the connections allowed him to get incredible feedback on products, ideas, systems, etc., all from a new leadership perspective. Fran feels the UFO is an integral part of the AAMGA and should be for a long time to come. “We always say there are no younger people coming into our industry,” he commented, “and this is an opportunity to bring them in!”

Paul LoVullo (LoVullo Associates) vividly remembers John Love “captivating” the group, with his Frank Sinatra-like voice while “cruise ship singing” in Chicago back in 1994, but also cherishes the memory of meeting all the great UFO and AAMGA members that his father always talked about. Paul said that most of his friends and mentors in the industry were derived from his involvement with the AAMGA and UFO. Scott Anderson (Concorde General Agency) credits his time in the UFO and as Chair as profoundly impacting who he is today. While serving as Vice Chair, Chair, and immediate Past Chair, he gained the confidence to speak up and be heard in the organization—a prime benefit of belonging. The relationships fostered then continue to bring value and opportunities to him and Mamie, his wife, as well as their business. Scott fondly recalled Mamie and Blair Johnson serving “duck farts,” an innovative and perhaps poorly labeled drink, and then being served an $800 bar bill that he and Robbie Johnson split. That was a significant event in his time in the UFO.

Greg Gold’s (McNeill Group) fondest memory of the UFO is the welcome that he and his wife Amy received from the UFO Chair and the membership in attendance at their first meeting in Portland, Maine. Greg’s greatest challenge was the sudden cancellation and rescheduling of the September 2001 Annual Meeting, just days after the attacks on New York City and the Pentagon, and the crash of the United Airlines flight 93 in Pennsylvania. With the support of the AAMGA Board and staff, not only were they able to recreate the meeting in Vancouver in 2002, but they continued the UFO’s growth and energy in 2003. Jim Kranzberg (SKANKO) remembered the challenge of putting on a meeting after the AAMGA lost the administrator that coordinated past UFO meetings. However, in the end it all came together with a fantastic event in Napa, California, with a record attendance. Jim is thankful for the contacts and friendships made during his 13 years involved in the UFO—it truly gave him a sense of belonging to a much larger profession. Jim’s legacy may be a tradition he unintentionally started but which lasted a few years. He presented the outgoing, 40-year-old chair, Greg Gold, with a tie embellished with images of Viagra tablets. It was intended to be a joke just for Greg, but it was passed to senior UFO members for several years.

Phil Mavon (G.A. Mavon & Co.) said his greatest benefit has been the lifelong friendships he made. He also commented that it was remarkable to see how different wholesale businesses could be around the country. With introspection inspired by the questions posed, Phil shared a parting comment for his fellow UFO members: “We are getting old.” Matt Smith’s (The Southern General Agency of Tennessee) memories are of the quality people and how much he and his wife, Nancy, looked forward to spending time with them each year. He noted, however, that his liver needed about 2 weeks of recuperation afterwards. As chair, Matt said he was able to

The UFO and the Make-A-Wish Foundation In the late 2000s, the UFO Board started to hold fundraising philanthropic events at AAMGA meetings in order to raise money for several different national charities. In 2010, the UFO Board, led by President Colleen Giles-Harris, decided to pick one national charity as the official charity of the UFO in order to focus fundraising efforts. After many wonderful suggestions and a lot of debate, the UFO Board selected the Make-A-Wish Foundation as their official charity. The MakeA-Wish Foundation helps bring hope, strength and joy to children with life-threatening medical conditions by granting them wishes, such as meeting a favorite athlete or going on a family vacation to Disney World.

Seth Johnson’s (Atlantic Specialty Lines) reflection on his involvement with the UFO came down to networking, leadership, and education. The UFO embraced him and continues to embrace new faces. Seth sees the UFO as an investment for MGAs and their future. By increasing industry knowledge and contacts, he feels that the experience is invaluable. Matt Letson (Hanover Excess & Surplus) said his biggest challenge was getting the UFO quarterly newsletter (UFO Visions) off the ground, as well as planning and executing the successful International Seminar in Munich, Germany. Matt feels that the most important benefit he gained from the UFO was the friendships, the networking and the educational opportunities.

The UFO Board launched its philanthropic efforts for the Make-A-Wish Foundation at the UFO Annual Meeting in Austin, Texas, in September 2010. The launch included a presentation by a representative from the Make-A-Wish Foundation of Central & South Texas, which is the charity’s local chapter that supports the Austin area. The UFO Board then introduced the Make-A-Wish Foundation as their official charity to the AAMGA at the AAMGA Annual Meeting in Orlando, Florida, in May 2011. Between those two events, the UFO was able to raise over $9,000 for the Make-A-Wish Foundation their first year. It takes just $5,000 to grant one child’s wish, so it was a wonderful accomplishment for the UFO to raise enough money to help grant two full wishes.

Colleen Giles-Harris (Scobie Group) is most proud of the selection of the Make-A-Wish Foundation as the official charity of the UFO. She said her term as President (the title changed when Colleen assumed the position) gave her confidence as a business professional and leader. Colleen feels that the young professionals in the organizations need to get involved. She would like others to gain the benefits she has gained—a great deal of knowledge about insurance and leadership, and lifelong friends and business colleagues. The reflections of this chapter’s author (Kerry Dillard of Bloss & Dillard) echo what many of the other past chairpersons have said. “Many of my best friends have come from my participation in the UFO and AAMGA. I have used those relationships to help me and my business grow by tapping into the vast knowledge that exists within the UFO fraternity. For example, the interesting presentation Tom Rogan gave about Hurricane Andrew during the Disaster Recovery educational session was eclipsed only by the fun some of the group had at the Rusty Spur in Old Town Scottsdale: Having a jam session playing washboards, spoons and moonshine jugs in a makeshift band.”

Mission Accomplished The Under Forty Organization began in 1991 with the hopes of becoming accepted by the members of the AAMGA. We wanted to become better educated and develop into successful business leaders, while having some fun along the way. Twenty years later, I think it’s safe to say that it was all accomplished beyond the original group’s imagination!

Mark Maucere, Tony Glotzbach, Kelly Maucere, Martin Rofley, Oliver Pidgeon

Colleen Giles- Harris, Shawn Chaffin, Tripp Duesenberg, Jennifer Larsen, Matt Letson

Golfers Brian Waller, Curtis Anderson, Tom Perch, Troy Metts Boca Raton, FL

Team Tripp Duesenberg

Amy and Ken Distel

Betty and Ronnie Moore

Ty and Baron Garcia

Jonathan Neibergall, Becky Lantinga, Ken Distel, Adam Rothert, Tate Tooley

2008 UFO Teambuilding, Whistler, Canada

Team Colleen Giles-Harris, Jennifer Larson-Jenson, Emily Rothert, Bryan Clark

Jeanne Rondeau

Jake Kouns

Mary and Ray Spies

UFO goes to Boston Fenway Park

2008 Teambuilding; Tim Chaix, Mark Usselman, Clint Nokes, Ken Distel, Tate Tooley, Adam Rothert

Coryn and Martin Thalmann

Kevin Tromer, Chuck Conway, Scott Anderson, talking Golf

2008 UFO Teambuilding, Whistler, Canada

Clint Nokes, Allison Grant, Tim Chaix Team

Blair and Robbie Johnson

2008 Teambuilding - The Blind Leading the Blind!

2008 Whistler Teambuilding Contest Winners

More Teambuilding in Whistler

Ron Grove, Suzanne Chaffin, Barbara Rogan, Victoria Tiepelman, Timberlee Grove, Phyllis Latham, and Jean Pondrom

Donna and Bob Schacher

Randi and Peter Scobie with Colleen Giles-Harris

2009 Board, R.C. Chaffin, Curtis Anderson, Mark Rothert, Rob Giles, Corinne Jones, Bobby Owens, President Euclid Black, Tony Glozback, Tom Albrecht, Bob Shacher

Chad and Colleen Harris

Samantha and Samantha Anderson

C hapter

“So Einstein, What’s Next?”

Technology and the AAMGA

By Chris Behymer, CPCU, ASLI Director of Business Development, Binding Markel Wholesale

By Euclid Black Chairman Black/White & Associates

While the insurance industry has experienced a great deal of change over the past 20 years, even the most casual observer would consider it positively pedestrian when compared to what has happened in the world of technology. We have gone from kilobytes, megabytes, legacy systems, green screens, and batch processing to gigabytes, terabytes, servers located in a “Cloud,” full-blown color graphics and hand-held, real-time computing in but a blink of an eye. Rooms full of mainframe computers have been replaced with a device the size of a remote for the garage door opener!

Before the Beginning The early 1980s saw the arrival of personal computers, and it was apparent that members needed a forum in which to gather information about what was possible and to share experiences about hardware, software, and specialized vendors. Very little of the available literature was on point about surplus lines automation, so the leadership of AAMGA decided to facilitate discussions among members, which ultimately led to the creation of a committee on the topic of computers and agency automation.

Information, and intelligent use of that information, has driven the need for more and more technology to help insurers and members of the distribution channel make better business decisions. Making the systems work involves much more than plugging the computer into an outlet—and that’s where the AAMGA Automation Committee enters the picture. It’s hard to know exactly where to start, but after many discussions with current and previous members of the committee, as well as a number of AAMGA Past Presidents, the way to piece the puzzle together is to start before 1991.

Fred Steves, CIW of Myron F. Steves & Company, CMGA, recalled that in the mid-1980s, the first automation meeting consisted of a gathering of members with the publishers of an early agency automation publication titled The Agency Automation Reporter (TAAR). This publication did a good job of providing unbiased evaluations of the then evolving retail agency systems. While these systems were crude by today’s standards, they were a vast improvement on what had been available in the past.

With the success of the first meeting, a more formal committee was formed to continue discussions on this emerging topic. Over the next few years, additional sessions were held under the sponsorship of the AAMGA. Dallas was selected as the host for most of the early meetings due to the city’s convenient location and the fact that it was home of the Infomart. The Infomart served as an automation showcase featuring a number of leading computer hardware and software providers. These organizations had centrally located offices and each office contained a series of demonstration rooms designed to showcase their wares. It was extremely easy to explore multiple systems just by walking from room to room. At this point in the development of office automation, it was very helpful to see what was available and to be able to talk to specialists. The alternative was going to a local computer store and taking your chances!

in helping them determine where to dedicate their resources based on the needs of their clients. Carriers benefited as well because they were able to see where their customers were going in the future and plan their system changes accordingly. Black Box As early as 1992, the Committee reported to the AAMGA Board that its members had determined that it was important to establish “Data Standards” to facilitate exchanging data between agents and carriers. The committee also offered to take a leadership role in setting these standards. This effort was quickly named “Black Box” and served as the major project for the committee for most of the 1990s. Once the project was initiated, the committee needed to expand its membership to include additional participants from member insurance companies. Not only did this add a great deal of technical expertise to the committee, it also provided some assurances that the companies would be more agreeable to accepting the final product when it was finalized since they were actively involved in the selection of the necessary standards.

The Committee Evolves By the late 1980s, attendance at the AAMGA annual Automation Conference had grown to 50 members. Participants included a small group of early system vendors and a steadily growing presence of company Information Technology (IT) managers and professionals. The highlight of the conferences was the various roundtable discussions about what individual members, carriers, and vendors were doing or planning to do. This process generated a great deal of information sharing about what was working for individual firms and, more importantly, what wasn’t working. Another popular component of the meeting was called The Closing Town Hall. At the conclusion of the session, the program was evaluated and critiqued, and attendees volunteered to work on projects and were given the task of reporting on their results at the next meeting. This had many benefits, including dividing the tasks among participants. It served also as an encouragement for additional members to get involved. For those trying to take advantage of the fruits of technology, this sharing of knowledge was critical. It also assisted the vendors

The first element of the project was coming to an agreement on which of the standards to use. Ultimately it was agreed that the “AL3” standard published by ACORD would be the one adopted. Even though AL3 was designed for mainframes and had limited flexibility, it would work for the proof of concept project. Committee members were selected to take part on both the company and agency side of the proof of concept. Leading participants were Equity General Agency of Lexington, Kentucky, Scottsdale Insurance Company, and Northland Insurance Company. While the progress made during this time frame was impressive, unfortunately the speed of change was so great it was determined that the black box outcomes were of limited use. While it might have been easy to simply throw in the towel, the committee moved on to embrace the next step in the evolution of technology.

Changes Accelerate: 1995 to 1999 As technology evolved, it became clear that one of the challenges for the Surplus Lines industry was the variation in systems used not only by Managing General Agents, but by carriers as well. As there was no one “typical” system in use, issues related to data transfer, policy issuance, billing, and assorted backroom functions were left to organizations to sort out on their own. Standard lines companies were able to use automation much more effectively due to the fact that they were dealing with more routine situations. It was very difficult to convince MGA X to change its internal systems to match those used by MGA Y!

tiple locations could not be sustained with cabinets and shelves full of files. As a result, most organizations transitioned to a paperless environment and began scanning, and backscanning, new and old submissions and files, and then distributing them electronically to underwriting, claims, accounting, and processing with the click of a button. Taking paper away from the more seasoned underwriters and producers was a challenge. But after a period of adjustment, people adapted and it became clear that the new method made the process of distributing information and managing workloads much easier. In March 1999, AAMGA and NAPSLO (National Association of Professional Surplus Lines Offices) conducted a joint Automation Conference in San Diego. Over 250 Surplus Lines professionals from throughout the industry attended a series of meetings, workshops, and demonstrations to view the latest innovations demonstrating how computers could be used to improve the process of marketing and selling insurance. Of special interest was a session that summarized the results of the NAPSLO-sponsored KPMG study regarding the use of technology by the E&S distribution system. This served as somewhat of a “wake up call” as it was clear that our business was falling behind other financial services organizations, and that our segment of the industry had to ramp up its efforts (and spending) to remain competitive in the marketplace.

In spite of these differences, good progress was made, and some notable events happened during this 5-year period. • Microsoft released a series of new (at the time) and more stable Windows operating system which led to a modicum of standardization within the industry. • The cost of personal computers began to drop to the point where it was feasible to put a PC on most, if not all, desks within an agency or a company. • During the 1990s, Internet activity increased at the astronomical rate of 100 percent per year. By the end of the decade, 45 percent of the information worldwide flowed through the Internet. • Early Internet connections were accomplished through dial-up modems, and these now antiquated devices worked well for simple emails and Word documents. However, the need for speed increased, and nearly all dial-up systems were eventually replaced by much faster and more sophisticated T-1 lines and cable company broadband applications. This allowed information and people to be located any place without the physical location limitations of the past. • During this time, agents and carriers determined that paper files were, in effect, choking the insurance process. These sometime bulky bundles of policies, correspondence, and reports could only be one place at a time. The new reality of multiple offices in mul-

In addition, the much publicized Year 2000 situation, otherwise known as Y2K, elevated computer science to front-page news. Old mainframe computers were programmed to recognize only the last two numbers in the date field, so it was feared that our economy, and the world in general, would basically shut down. Some of you might remember that on December 31, 1999, all airline flights were suspended (save one with the United States Secretary of Transportation on board) due to the fear that planes would fall out of the air at the stroke of midnight. Y2K proved to be a non-event other than the cost, estimated

as high as $140 billion in the United States, to prepare for the changing of the calendar. More importantly, it sent a signal to all businesses, insurance included, that effective use of automation was the key to future success.

The AAMGA continued to advance the cause of intelligent use of data and information with its annual Automation Conferences. Sessions in Las Vegas, Nashville, and Atlanta drew increasing crowds and became one of the Association’s signature events. Over time, the composition of the attendees changed as well. Initially, participants tended to be from carriers’ and agencies’ IT departments, with a few principals thrown in for good measure. As the scope and variety of information available increased, so did the number of business unit managers, underwriters, and marketing personnel. Everyone was interested in viewing the latest systems that were available, and all of us were looking for that “magic bullet” to streamline processes, cut expenses, and generate additional revenue.

A Decade of Innovation: 2000 to 2010 In late 1999, a little known Canadian company introduced a two-way pager that caught the attention of attendees at a Munich, Germany innovation conference. Several years later, this company, called Research in Motion (RIM), introduced the BlackBerry, a hand-held device capable of surfing the web, making phone calls, and, more importantly, providing access to emails from just about anywhere in the world. This little piece of hardware made it possible for producers to contact their underwriters, and vice versa, anytime of the day or night. The first salvo of the new millennium signaled an even greater reliance on technology. Little did we know then what the landscape would look like only 10 years later.

On a related note, the AAMGA saw an increase in the number of IT professionals enrolled at its Basic Schools, University Weekend programs in Scottsdale, and stand-alone classes held throughout the country. This was a sign that the IT segment of our business was interested in learning more about why they were being asked to program the computer to do certain things, and why it was important. While seemingly a minor shift in the profile of participants, it was encouraging to see systems people sitting with producers and underwriters with the goal of trying to resolve common problems.

Technology Becomes the Answer While technology was important, there were some fundamental changes occurring in the insurance business that required the attention of senior leaders for both companies and agencies. There were signs that the 12-year soft market might be coming to a close as surplus dipped, written premium continued an even deeper slide, and accident year loss ratios increased. Punctuated by the terrorist attacks of September 11, 2001, the insurance ship began to right itself as standard carriers began to shed lines of unprofitable business. For the E&S community, this was a classic case of good news/bad news. The good news was that submissions, premiums, and revenues all increased. The bad news was that the volume of business was so great that it created a host of service problems throughout the distribution system, many of which were tied to the older, slower legacy systems that were still in place. If nothing else, this market shift provided further proof that a company’s or an agency’s success was closely intertwined with embracing new technologies.

As the decade progressed, a number of other changes occurred as carriers and agencies rushed to join the technical revolution. Company underwriting manuals, long a staple of the industry, were replaced with online guides to speed up the process of providing

Technology Streamlines AAMGAâ&#x20AC;&#x2122;s Day-to-Day Business While the AAMGA Automation Committee served as the focal point for technologyrelated issues, it was clear that other functional areas of AAMGA were incorporating enhanced IT capabilities in their operations as well. The AAMGA University adopted online registration for its courses and now offers a host of online insurance, state continuing education (CE), and business skills programs for its members. Newsletters began to be distributed electronically and much of the important information about our business is communicated in an instant via email blasts and posting on the website (www.aamga. org). The Governmental Affairs, Marketing, Membership, Human Resources, and Operations Committees recognized the value that automation could provide in terms of getting their messages delivered quickly and at a relatively low cost. The AAMGA committee with the most upside in terms of embracing automation is the Under Forty Organization (UFO). This group of future leaders has grown up, as someone joked, â&#x20AC;&#x153;with a mouse in their hand,â&#x20AC;? and is in the best position by far to drive the use of technology in new and innovative ways.

current information to customers. Shortly thereafter, companies ramped up their online rating engines to allow MGAs to rate, quote, and bind many of the classes of business that did not require intensive underwriting involvement. Not only did this save time and money, it also freed up company underwriting resources to focus their efforts on more complicated submissions. To help manage insurance company initiatives, many companies formed automation councils to gather valuable feedback on how their efforts were received in the marketplace. This intelligence, along with the ongoing input from the AAMGA Automation Committee, allowed insurance providers to select projects that would create the highest return on their investments.

Throughout the 2000s, MGA members used technology to expand their reach to other areas of their home states and even other parts of the country. With digitized files and heavy reliance on online underwriting and pricing manuals, it was no longer necessary for the entire staff to be in one central office. A major driver of this process was the need to hire talented individuals regardless of where they were located. It is not uncommon to have an agency underwriter or broker working out of his or her home and conducting business in multiple states without the need to drive long distances to an office. With advances in phone switches and high-speed internet access, most people never knew that the person they were talking to was half a continent away. While the initial home office set up might cost a few dollars, the lower overhead and increased level of employee satisfaction (due in part to reduced commute times) more than pays for itself in a very short period of time.

Text Messaging and Social Networking In 2005, a phenomenon of epic proportions was brewing in the technology arena. Text messaging, which actually originated back in the 1990s, became the communications mode of choice for many cell phone users. By the end of 2009, 286 million US subscribers sent an average of 152.7 billion text messages a month! Furthermore, it is estimated that 72 percent of adult cell phone users use texting as a means of communication. Tied in with the explosion of text messaging is the growth of social media. While no standard definition of social media exists, it is generally described as a form of sharing usergenerated content in an interactive format via computers, cell phones, or other electronic communications devices. As a result, new words were added to our vernacular over the past 10 years, including Facebook, Twitter,

YouTube, Linkedin, and many others. Twitter processes 40 million tweets a day, Facebook has over 750 million users worldwide, and in the time it takes you to read this page, over 100 hours of video will have been uploaded to YouTube, according to research conducted at the end of 2009. One can only imagine how these figures have increased over the past several years.

our business. The use of regular “snail mail” has dropped to a point where receiving an actual letter is somewhat surprising. Telex and fax machines, room-sized mainframe computers, 21-inch “box” monitors displaying text in amber on a black background—with no other colors or graphics, and mobile phones approximating the size of a loaf of bread have all been relegated to museum status.

AAMGA Joins the Social Network While the insurance industry has been slow to adjust to new trends in the past, it is clear that we must proactively incorporate these avenues into our communications strategies. The numbers are staggering, and access to instant information is more critical today than ever before. If our customers are relying on these tools to help them make their insurance-buying decisions, then it is incumbent on us to have a presence on these sites. The Automation Committee has played a pivotal role in moving the Association forward. You will note on the AAMGA website homepage, that both the Twitter and Facebook logos are prominently displayed. A random survey of AAMGA member websites reveals that many organizations have adopted a similar posture. While establishing a social media policy is not an easy task, it is one that our members feel is necessary to take advantage of the increased reliance on these modes of communication.

While these are the tools of our trade, technology does not exist in a vacuum or without human intervention. When a retailer selects which wholesaler to use for a particular risk, it is not always done based on the “numbers,” but on the connection he or she has with that MGA. Patricia Fripp, a noted author and speaker summed it up quite well: “Technology does not run an enterprise, relationships do.” The march towards the ultimate goal of smaller, faster, and cheaper will do nothing but accelerate in the years ahead. Regardless of which direction we go, the AAMGA Computers can’t Automation Committee will be on the leading make every underedge of providing guidwriting decision, and ance and direction to its members. By using claims are settled by webinars, seminars, people, not machines. workshops, and the Annual Automation and Technology Conference, members will continue to have access to the latest information available. The Committee’s objective is to help identify trends in automation and solutions to improve the long-term effectiveness and efficiency of the wholesale insurance industry.

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So Einstein, What’s Next? Predicting the development of technology over the next 20 years is akin to picking the winning lottery numbers four weeks in a row. It is next to impossible to see that far into the future with any degree of accuracy. Prior to his death in 1957, Hungarian-born mathematician John von Neumann offered the following quote: “It would appear that we have reached the limits of what it is possible to achieve with computer technology, although one should be careful with such statements, as they tend to sound pretty silly in 5 years” No truer words were ever spoken! iPads, iPhones, tablets, 3G, 4G, VoIP, Droids, smart phones … the list goes on of ubiquitous items that are used every day to conduct

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2010 UFO University Class

Andy Roe, Clint Nokes, Chip Pecchio

Rose Larsen, Adam Rothert, Patrick Roe

UFO visits Munch Re in Munich, Germany, 2009

Kathleen and Louis Williams

UFO Teambuilding, Maui, Hawaii, 2006, Team Duesenberg

2010 AAMGA University session, Desert Springs, California

Lance Jensen, Amy and Greg Gold, Jennifer Larsen-Jenson

Frank Johnston, Jason Murrey, Tripp Dusenber, TC Anderson

Ken Distel, Nick Abraham, Andrea Nash

Beth and Seth Johnson

Erol Kantar, Paul Lincoln

2010 Annual Convention, Desert Springs, California

Patrick Kelly, Alina Fitzgerald, Jeff Henry

Executive Director Bernie Heinze

Terri and Dave McDermid

Matt Letson, Shawn Chaffin, Tripp Duesenberg, Jennifer Larsen -Jenson, Colleen Giles- Harris

Shawn Chaffin

Ty Garcia, Len LoVullo

Scott Anderson, Bob Hanna, Tripp Duesenberg, David Miller, Michael Gabor, Matt Crane

Curtis Anderson, Coryn Thalmann

Tom Rogan and Chuck Deering

Valerie Knight

Mike Berry

UFO President Colleen Giles-Harris

Shawn Chaffin, Luke Bauckham, Tony Glotzbach

C hapter

Guide to the AAMGA From the Inside Out

By Tom Stamm President, Binding Agreements Markel Wholesale

provides leadership, management, business acumen, industry training, networking, and other services for the continued professional development of AAMGA’s young men and women.

Welcome to the Association of Managing General Agents (AAMGA). The wholesale insurance community’s international trade association was founded in 1926 on the principles of integrity and professionalism. The AAMGA today represents over 500 corporate members and is respected as the leader in and the voice of the wholesale and excess and surplus lines segment of insurance. Its unique logo reflects the tradition and leadership of managing general agents, insurance companies, business service partners, and state stamping and surplus line offices all working in concert to effect innovative insurance products and solutions for the marketplace. Membership in the AAMGA is highly selective and, therefore, its ranks are those who demonstrate the highest standards of excellence, experience, integrity, and wholesale insurance company representation.

Code of Ethics The principals, officers and employees of AAMGA members have certain obligations to one another, to the insurance industry, and to the communities in which business is conducted. Our goals and obligations fall into six broad categories. 1. Financial 2. Intra-Organizational 3. Relationships with Our Sub-Producers 4. Relationships with Insurance Companies 5. Legal Responsibilities 6. Community Obligations

About Membership Membership in the Association is highly selective. Those admitted to the ranks of the Association must first have demonstrated high standards of excellence, experience, integrity, and company representation. Membership criteria and the AAMGA’s vetting process of all prospective members have been identified as two of the main reasons why so many domestic and international markets view the AAMGA as representing the “gold standard” of the wholesale insurance industry.

1. Financial As AAMGA members, we must meet all financial obligations (i.e. debts owed, premiums due companies, returns due to sub-producers and insureds, and other matters) on a timely basis. 2. Intra-Organizational As AAMGA members, we must compete fairly and honorably in the marketplace, making no false statements or misrepresentations about other AAMGA members or competitors.

Membership in the AAMGA is broken down into five main categories: MGA Members: Managing General Agents Associate Members: Domestic and international risk-bearing entities Business Service Members: Commercial enterprises who serve the wholesale insurance market and MGA State Stamping & Surplus Lines Offices: Oversees excess and surplus lines transactions Honorary Members: Individual persons of distinction

3. Relationships with Our Sub-Producers As AAMGA members, we must serve our subproducers to the utmost of our ability, and in so doing must: • Research and remain current on the financial stability of companies with which we place business; • Encourage continuing education and training for ourselves and our staffs; and • Make no misrepresentation of what coverage is being provided. 4. Relationships with Insurance Companies We Represent: As AAMGA members, we will faithfully execute the underwriting guidelines of the companies we represent.

In addition, the membership is complemented by the Under Forty Organization (UFO). The organization is open to any AAMGA member employee under 40 years of age. The UFO

Ethics Committee The Committee will be comprised of the President, Immediate Past President, Incoming President and the Executive Director of the AAMGA, with the Immediate Past President serving as Chair of the Committee.

As AAMGA members, we must act in the utmost good faith and gather all data necessary to make a proper underwriting decision before putting an insurance company at risk. As AAMGA members, we are obligated to remain current on the laws and regulations affecting insurance companies, in those states in which we have authority, advising companies to the best of our ability on statutes and practices which affect them.

Complaints pertaining to purported ethics violations must be sent, in writing, to the Committee Chair, who will notify the member(s) in question as to the nature of charges which have been received. The Chair will also forward a copy of the complaint to the other members of the Committee, which will then initiate an investigation and obtain evidence in respect of the charges made. All aspects of the investigation shall remain confidential.

5. Legal Responsibilities As AAMGA members, we are required to observe all insurance and other applicable state and federal laws and regulations. 6. Community Obligations As AAMGA members, we will take an active part in the recognized civic, charitable and philanthropic movements which contribute to the public good of our communities. It is a privilege, not a right, to belong to the AAMGA. Our AAMGA membership is a “badge of honor.”

The Committee will meet and confer either telephonically, electronically or in person as deemed necessary, to review the charges and status of the investigation. Prior to the Annual Meeting, the Committee will hold a meeting with the member(s) against whom the charge(s) have been asserted, in order to allow a due process rebuttal by the member(s). The member(s) who have brought the charge(s) must also be present at the meeting.

We pledge to conduct ourselves in a manner befitting the privilege of membership in the American Association of Managing General Agents.

The Ethics Committee will review the evidence gathered, hear the respective positions of the parties and, after deliberation, provide a recommendation of action to the Board of Directors which will act thereon promptly.

Enforcement of the Code of Ethics If an AAMGA member is convicted of violating state or federal laws, he or she, or the respective violating corporate entity, can be expelled from the organization. All such matters will be referred to the AAMGA’s Ethics Committee for full investigation and further action as warranted.

Penalties may range from full expulsion from the AAMGA to a 1 to 2 year suspension or censure. AAMGA’S Core Values PEOPLE. We recognize the people comprising the wholesale distribution network are the greatest assets to its continuity and success. We will continue to offer and provide access to vital educational courses and resources, to allow our members to distinguish themselves by achieving specialized professional designations.

A pattern of violation of state and/or federal insurance laws will lead to investigation of the member in question by the Ethics Committee of the AAMGA. Evidence of unfair trade practice or maligning other AAMGA members will be brought to the attention of the Ethics Committee for further investigation and action as warranted.

INTEGRITY. We are committed to founding every activity we undertake with unqualified respect, integrity and accountability.

ers were invited to submit bids. As the RFP process was beginning, Martin Fromn sent a letter to President LoVullo stating that they would not be bidding and would be closing their business in 45 days. This unexpected notice was received just months before AAMGA was to celebrate its 75th anniversary. President LoVullo took action by reaching out to a good friend and well-known Philadelphia lawyer and educator Bernie G. Heinze, to step in as interim Executive Director and to keep the Association on track for all planned activities, especially the upcoming AAMGA 75th Anniversary celebration.

INNOVATION. We embrace change and advancements in technology and other disciplines, which will enable the creative competencies of our members to be realized and sustained. We will constantly evaluate new business concepts in order to enhance the financial stability of our members. ACHIEVEMENT. We believe it appropriate and necessary to recognize those persons within and outside of our industry, who through advocating the same vision, goals and objectives advanced by the AAMGA, foster the advancement of the insurance profession.

Although Bernie had little association management exposure, he had great business skills, along with a legal and insurance background. In addition, he knew the membership very well from teaching many courses on behalf of AAMGA. Perhaps most importantly, he had a passion for the AAMGA and understood the need to react promptly to head-off a crisis and any interruption of Association activities.

A Few of the AAMGA’s Many Goals 1. To improve the knowledge and expertise of our members and others within the insurance profession. 2. To be a leader in improving our capabilities and efficiencies, and those of our members, through the full utilization of technology. 3. To provide meeting and networking opportunities for our members and industry experts. 4. To keep our members advised of regulatory, governmental and legal changes affecting the marketplace and their operations. To influence the outcome of proposed regulations and legislation as an authoritative representative of the wholesale insurance market. 5. To arrange for and conduct extraordinary meetings in world-class facilities to allow members additional opportunities to conduct business, network and fully enjoy the benefits of membership in the AAMGA.

While serving as Interim Executive Director, Bernie assembled a staff and managed the Association through this critical time. Meanwhile, the RFP process continued under the watchful eye of President LuVullo, PresidentElect Baron Garcia, and an ad-hoc committee of Past Presidents. While many of the firms submitting bids were outstanding, none had an understanding of the wholesale insurance business. AAMGA Past President Tom Rogan and Bernie Heinze met and requested an opportunity to submit a bid from their newly formed Accolade Management Services, Inc. After many interviews and lengthy deliberations, the AAMGA Board awarded a 3-year contract to Accolade.

Association Management By Tom Rogan

There were many challenges when transitioning the management duties from the prior company without the benefit of their records or personnel, but Bernie Heinze and the staff accomplished a great deal very quickly. The potential business “crisis” was avoided and the transition continued under 2001–2002 President Baron Garcia, who also dealt with

President Len LoVullo (2000-2001) and his Board decided to send out a Request For Proposals (RFP) as the incumbent professional association management firm had completed their 15th year of service. That firm, Martin Fromn & Associates, and oth-

a soft insurance market. All became insignificant in comparison to the terrorist attacks on our country on September 11, 2001describes. Baron, along with the new Board of Directors and the new Executive Director, focused as a team, unifying the membership and presenting a united front. In 2005, Bernie Heinze assumed full control of Accolade following Tom Rogan’s retirement.

es the goals and objectives of the Board and Committees; plans and conducts educational classes for the AAMGA University; and maintains the daily activities of the Association. These responsibilities keep nine professionals engaged full-time. In addition to the daily operational activities of receiving and responding to faxes, mail, and other communications and answering questions to callers about the Association and the industry, the staff also maintains the AAMGA Headquarters office.

The Board has since remained vigilant of their professional managers and in 2009, put out another RFP. Once again, after consideration of several serious management groups, Accolade Management Services, Inc. and Executive Director Bernie Heinze were selected as the best group to manage the affairs of the AAMGA. In 2012, they will enter their 12th year of professional representation with the goal to improve each year as they have since being retained in 2001.

The professionals at Accolade conduct all executive, corporate governance, administrative, financial, and legal affairs of the AAMGA. In addition, applications for membership are received, vetted and presented to the Board for consideration. Accolade provides new members with orientation materials. Accolade also works to enhance the AAMGA’s brand and reputation. Accolade’s staff plans and executes the Annual, Automation and Under Forty Organization (UFO) meetings and programs, as well as the activities of the UFO itself, and the various standing, ad hoc and subcommittees of the Association and Education Foundation. Accolade manages the AAMGA’s database and inforBernd G. Heinze, mation; secures and negotiates Executive Director all contracts; reviews and selects venues, entertainers, and speakers for events; arranges logistics and vendors for the trade shows; responds to requests for interviews and writes articles for the industry trade press; and gives speeches and presentations to domestic and international audiences. Financial responsibilities include collecting dues; managing investments; preparing financial reports, paying expenses, and collecting revenue; reconciling budgets; filing annual tax and corporate reports; protecting trademarks and intellectual property; and facilitating audits.

Accolade Management Services: The Engine behind AAMGA Headquarters By Bernd G. Heinze Accolade Management Services is retained to manage the business affairs and to work together in achieving various other objectives and goals of the AAMGA. Accolade is solely owned by AAMGA Executive Director Bernd G. Heinze, Esq., which, as mentioned earlier, was originally built with Past President Thomas B. Rogan to respond to the needs and opportunities of the membership. Their combined knowledge of the members and history of the Association, and their insight into the wholesale insurance marketplace, enabled them to put a team together that understands the opportunities and challenges, and, most importantly, dedicates their efforts to implementing the directives of the Board. In addition to providing a dedicated Executive Director and staff, Accolade provides financial management, membership liaison, and record keeping. They are charged with event planning of all activities with a major emphasis on the annual convention, which draws over 1,000 attendees each year. They also provide these services to the AAMGA University and Foundation. Accolade advanc-

Communication with the membership and industry are also important aspects of the Association’s management. Using newsletters,

presence on the Executive Board of Directors. The alliance of the Associate Member Group with all other member groups plays a major role in the AAMGA’s successes, as well as its reputation as the gold standard of the wholesale insurance industry.

WIN (Wholesale Insurance News) magazine, emails, letters, social media outlets, and the AAMGA website, Accolade keeps members advised of the AAMGA’s activities and progress. They also design educational and professional development classes, forums and webinars, and prepare the continuing education (CE) credit filings for each of the classes in each of the 50 states. Accolade maintains AAMGA’s records and archives, and fosters relationships with financial, insurance, and company markets, rating agencies, legislators, regulators and other professional trade associations.

Access Insurance Company Atlanta, GA Ace European Group London, UK Admiral Insurance Company Cherry Hill, NJ

There is a great deal of activity generated each day by the committees, members, board of directors, Association, and Education Foundation. The professional and interdisciplinary staff at Accolade who maintain the headquarters office and the day-to-day activities mirror the AAMGA’s commitment to advancing the interests of all members and the brand of the Association and its Education Foundation.

Advent Underwriting Limited London, UK Aegis Security Insurance Co. Harrisburg, PA AIX, Inc. Windsor, CT

AAMGA Associate Member Group The AAMGA Associate Member Group has undergone considerable change during the past four decades, just as the insurance industry itself has evolved. Numbering 194 members in 1969 (per AAMGA’s “Proud History Bright Future,” published in 1991), the group numbers 150 as of August 2011. Breaking it down further, of the 194 members in 1969, only 10 of the same exact names remain on today’s membership list.

Allianz Global Corporate & Specialty New York, NY

This transformation is due mainly to opportunistic mergers, acquisitions and name changes, consolidating and strengthening the group, AAMGA, and the Wholesale Surplus Lines segment of insurance itself. This concise and elite group of companies provides AAMGA members with advanced underwriting expertise and expanded availability of market risks. It provides the Association and its partner University with proactive individuals who contribute their time and expertise through committee participation, presentations at various functions, and as of 2008,

American Southern Insurance Company Atlanta, GA

Alterra Specialty Richmond, VA American Modern Insurance Group Amelia, OH American Reliable Insurance Co. Scottsdale, AZ

American Vehicle Insurance Company Ft Lauderdale, FL Amlin Underwriting London, UK Aon Benfield Chicago, IL Apollo Syndicate 1969 London, UK

100

Argenta Syndicate Management Ltd. London, UK

Brit Syndicate Ltd. London, UK

Argo Managing Agency Limited London, UK

Burlington Insurance Group Burlington, NC

Ark Syndicate Management Limited London, UK

Canal Insurance Company Greenville, SC

Arthur J. Gallagher (UK) Ltd. London, UK

Canopius Managing Agents Limited London, UK

Aspen Specialty Insurance Co. Atlanta, GA

Capitol Insurance Companies Madison, WI

Assurance America Corporation Atlanta, GA

Carolina Casualty Insurance Co. Jacksonville, FL

Atrium Underwriters Ltd. London, UK

Cathedral Underwriting Ltd. London, UK

Axis Insurance Alpharetta, GA

Catlin Underwriting Agencies Ltd. London, UK

Bankers Insurance Group, Inc. St. Peterburg, FL

Century Insurance Group Westerville, OH

Beaufort Underwriting Agency London, UK

Chaucer PLC. Lloydâ&#x20AC;&#x2122;s Syndicate 1084 London, UK

Beazley Furlonge Ltd. London, UK

Chesterfield Insurance Brokers Limited London, UK

Bell & Clements Ltd. London, UK

Chubb Specialty Insurance Warren, NJ

Benfield Ltd. London, UK

CNA Select Risk Chicago, IL

Berkley Underwriting Partners Naperville, IL

Colony Specialty Richmond, VA

Besso Ltd. London, UK

Combined Independent Agencies, Inc. Dallas, TX

BMS Intermediaries, Inc. Dallas, TX

Corrie Bauckham Batts Ltd. London, UK

Bowood Insurance Brokers Ltd. London, UK

Croton Stokes Wilson Ltd. London, UK

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Crouse and Associates Insurance Brokers, Inc. San Francisco, CA

Hartford Steam Boiler Inspection & Ins. Co. Houston, TX

Decus Insurance Brokers Limited London, UK

Heath XS, LLC Basking Ridge, NJ

Endeavour Insurance Services Limited London, UK

Hiscox Inc. Armonk, NY

Endurance US Insurance Los Angeles, CA

Hiscox Syndicates Ltd. London, UK

Everest National Insurance Company Liberty Corner, NJ

Home State Insurance Group Dallas, TX

EWI RE, Inc. Dallas, TX

Hudson Insurance Group New York, NY

Firemanâ&#x20AC;&#x2122;s Fund Specialty Insurance Washington D.C.

IAT Specialty Scottsdale, AZ

Founders Insurance Company Des Plaines, IL

ICAT Holdings, LLC Boulder, CO

General Star Management Co. Stamford, CT

Imperium Insurance Company New York, NY

Gibbs Hartley Cooper London, UK

Inter-Reco Inc. Woodbury, NY

Gill and Roeser, Inc. New York, NY

James River Insurance Company Richmond, VA

Glencairn London, UK

Jubilee Managing Agency Ltd. London, UK

Golden Bear Insurance Company Stockton, CA

Kirkway International Ltd. Hamilton, BM

Guilford Specialty Group, Inc. Hartford, CT

Knight Management Insurance Services, LLC Los Angeles, CA

Guy Carpenter & Co., Inc. Hartford, CT

Lancer Management Company Long Beach, NY

Hardy Underwriting Agency London, UK

Liberty International Underwriters New York, NY

Harman Kemp North America Ltd. London, UK

Liberty Mutual Commercial Affinity Boston, MA

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Liberty Syndicates London, UK

National Lloyds Insurance Company Waco, TX

Lloydâ&#x20AC;&#x2122;s New York, NY

Nationwide Health Plans Special Risks Dublin, OH

Lonmar Global Risks Limited London, UK

Nautilus Insurance Group Scottsdale, AZ

Markel Corporation - Mid South Plano, TX

Newman Martin and Buchan LLP London, UK

Markel Corporation - Midwest Deerfield, IL

Northland Insurance Companies St. Paul, MN

Markel Corporation - Northeast Red Bank, NJ

NYMAGIC, Inc. & The MMO Group of Companies New York, NY

Markel Corporation - Southeast Glen Allen, VA Markel Corporation - West Woodland Hills, CA Markel American Insurance Company Waukesha, WI Markel International London, UK Maxum Indemnity Company Alpharetta, GA Meadowbrook Insurance Group Southfield, MI Midlands Management Corp. Oklahoma City, OK Miller Insurance Services Ltd. London, UK Montpelier US Insurance Company Scottsdale, AZ Munich Reinsurance America, Inc Princeton, NJ National Indemnity Company Omaha, NE

Occidental Fire & Casualty of NC/Wilshire Ins. Co. Raleigh, NC Omega Underwriting Holdings London, UK Oxford Insurance Brokers Ltd. London, UK Partner Reinsurance Company of the U.S. Greenwich, CT Penn-America Group Bala Cynwyd, PA Preferred Reinsurance Intermediaries, Inc. Columbia, SC Price Forbes Ltd. London, UK Prime Insurance Company Chicago, IL QBE European Operations London, UK QBE Insurance Corporation New York, NY

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RenRe Insurance Plano, TX

Travelers Boiler Re Hartford, CT

RFIB Group Ltd. London, UK

Travelers Syndicate 5000 London, UK

RLI Insurance Company Irving, TX

Trident Insurance Services, LLC San Antonio, TX

Ropner Insurance Services Ltd London, UK

Tysers & Co Ltd. London, UK

RSUI Group, Inc. Atlanta, GA

U.S. Liability Insurance Group Wayne, PA

S.I.U., LLC Glendale, CA

U.S. Re Corporation Pearl River, NY

Scottsdale Insurance Company Scottsdale, AZ

United National Group Bala Cynwyd, PA

Starr Indemnity & Liability Co. New York, NY

Vela Insurance Services Chicago, IL

State National Insurance Company, Inc. Bedford, TX

Western Heritage Insurance Scottsdale, AZ

Strickland Insurance Group Goldsboro, NC

Western World Insurance Group Franklin Lakes, NJ

Target Insurance Services Avon, CT

White Mountains Reinsurance Company of America, New York, NY

THB Group Ltd. London, UK

Willis Re Inc. Atlanta, GA

The Hartford - Financial Services Group, Inc. Hartford, CT

Windsor Insurance Brokers Ltd. London, UK

Topa Insurance Company Los Angeles, CA

WNC Insurance Services, Inc. Dba WNC First Insurance Services, South Pasadena, CA

Tower Group Companies New York, NY

XL Excess & Surplus Lines Scottsdale, AZ

Towers Perrin (Re) Insurance London London, UK

Zurich North America Omaha, NE

Towers Perrin Reinsurance Philadelphia, PA

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Annual Conventions: Too Many Meetings? Not Enough? Or Just Right? By Tom Stamm In 2002, the geographic structure of the AAMGA included three zones: East, Midwest, and West, each with elected Vice Presidents and Directors. Each zone conducted an annual gathering of active zone and associate members to participate in round-table discussions. The two memberships met both jointly and individually—usually talking about each other! It was at this time that the AAMGA Executive Council decided three zone meetings, combined with the AAMGA Annual Convention, Committee Day, and University Weekend, was just too many. Consequently, the geographic structure went from three to two zones, as it remains today. Further, the two zone meetings were replaced by one Fall meeting. Then in 2010, the Fall meeting was also dropped, due mainly to a depressed economy and the extreme competitiveness of the insurance industry, which substantially reduced the number of attendees. However, such conditions did not affect attendance to the same degree at the University Weekend, held annually in Scottsdale, Arizona. Therefore it was decided to conduct such an event on the East Coast as well. Richmond, Virginia, was chosen as the location of the University East Weekend, in hopes that it, like the Scottsdale location, would attract many participants from the Associate Members located there—which it did! Today, the Annual Convention, Committee Day, University Weekends, and the industry’s most elite Automation & Technology Conference continues to endure.

AAMGA Annual Meetings

1926 Signal Mountain, Tennessee 1927 Hot Springs, Arkansas 1928 Asheville, North Carolina 1929 Denver, Colorado 1930 Richmond, Virginia 1931 Dallas, Texas 1932 Hartford, Connecticut 1933 Atlanta, Georgia 1934 New Orleans, Louisiana 1935 Kansas City, Missouri 1936 Little Rock, Arkansas 1937 Denver, Colorado 1938 Asheville, North Carolina 1939 San Francisco, California 1940 Dallas, Texas 1941 Hollywood Beach, Florida 1942 None (because of war) 1943 None (because of war) 1944 Chicago, Illinois 1945 None (because of war) 1946 Atlanta, Georgia 1947 Dallas, Texas 1948 San Francisco, California 1949 New York, New York 1950 Edgewater Park, Mississippi 1951 Glenwood Springs, Colorado 1952 White Sulphur Springs, West Virginia 1953 Genoa City, Wisconsin 1954 Fort Monroe, Virginia 1955 San Francisco, California 1956 Houston, Texas 1957 Miami Beach, Florida 1958 Colorado Springs, Colorado 1959 New York, New York 1960 Sea Island, Georgia 1961 Phoenix, Arizona 1962 White Sulphur Springs, West Virginia 1963 New Orleans, Louisiana 1964 Minneapolis, Minnesota 1965 Biloxi, Mississippi 1966 Seattle, Washington 1967 Colorado Springs, Colorado 1968 Lexington, Kentucky 1969 Osage Beach, Missouri 1970 West End, Grand Bahama Island 1971 Scottsdale, Arizona 1972 White Sulphur Springs, West Virginia 1973 Hamilton, Bermuda 1974 Sun Valley, Idaho 1975 Biloxi, Mississippi 1976 Acapulco, Mexico 1977 Colorado Springs, Colorado 1978 White Sulphur Springs, West Virginia 1979 Honolulu, Hawaii 1980 Boca Raton, Florida

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“People are anxious to get going, to revitalize themselves, get the ball rolling again … Let’s do this!” And they did!

1981 Reno, Nevada 1982 White Sulphur Springs, West Virginia 1983 Lahaina, Maui, Hawaii 1984 Palm Beach, Florida 1985 San Francisco, California 1986 Orlando, Florida 1987 Palm Springs, California 1988 White Sulphur Springs, West Virginia 1989 Maui, Hawaii 1990 Orlando, Florida 1991 Scottsdale, Arizona 1992 White Sulphur Springs, West Virginia 1993 Desert Springs, California 1994 Orlando, Florida 1995 Colorado Springs, Colorado 1996 Orlando, Florida 1997 Waikoloa, Hawaii 1998 Puerto Rico 1999 Colorado Springs, Colorado 2000 Orlando, Florida 2001 Desert Springs, California 2002 Las Vegas, Nevada 2003 Boca Raton, Florida 2004 Phoenix, Arizona 2005 Orlando, Florida 2006 Maui, Hawaii 2007 Paradise Island, Bahamas 2008 Phoenix, Arizona 2009 Boca Raton, Florida 2010 Desert Springs, California 2011 Orlando, Florida 2012 San Antonio, Texas

What’s the Story behind WIN Magazine? By Bernd G. Heinze The development of the AAMGA’s quarterly Wholesale Insurance News, or WIN magazine, arose from an idea in 2010 to provide members with immediately usable information not available from conventional industry sources. AAMGA Executive Director Bernie Heinze presented the proposal to the Board of Directors, which approved the project. Articles are solicited from and written by wholesale insurance industry experts, researchers and university professors, insurance commissioners, and others, with the admonition that the content allow the wholesale insurance professional the opportunity to better understand and take advantage of the events shaping the marketplace and to remain ahead of coming events. Production is handled at AAMGA Headquarters in King of Prussia, Pennsylvania, and issues are published in print and digital formats. The effort is completely supported by advertising revenue which, after printing and distribution expenses are paid, is also split with the Association as non-dues revenue.

Future

2013 New Orleans, Louisiana 2014 Kona, Hawaii 2015 National Harbor, Maryland

WIN was launched at the AAMGA’s 85th Annual Meeting in Orlando, Florida, on May 23, 2011. Conference attendees received a free print copy of the magazine. The digital version was also emailed to every Association member to coincide with the Annual Meeting’s Opening Breakfast. A QR code version was also made available for those wishing to have WIN “on the road.” The magazine is mailed to every AAMGA member principal and to each of the state insurance commissioners and is emailed to Association member employees. It is also distributed through the AAMGA’s Twitter feed and Facebook page and by other trade associations involved in the wholesale space.

Not Enough Meetings? Maybe! Just Right? For Now! The AAMGA Annual Convention remains the Association’s foremost event. Open to all levels of membership, including spouses and family members, it provides endless opportunities, like world-renowned speakers, enhanced education, face-to-face networking, vendor availability, and first-class resort activities and accommodations. To start the Annual Convention at the RitzCarlton’s Grand Lakes in Orlando, Florida, 2011 President Mark Rothert (Ron Rothert Insurance Services) told the gathering:

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WIN has continued to advance the AAMGA as the portal of valuable and immediately implementable information to members of the Association. Staying true to its mission to being published byâ&#x20AC;&#x201D;but not to be aboutâ&#x20AC;&#x201D;the AAMGA, the magazine publishes articles by members of every segment of the industry. It has also enhanced the AAMGAâ&#x20AC;&#x2122;s brand and exposure to the wholesale insurance market and beyond. Originally, WIN was intended to be a publication for Association members, as well as state and federal legislators and regulators. However, interest in its timely content and shared expertise expanded distribution to over 240,000 insurance professionals in 40 countries. Future plans include integrating the magazine articles with social media and offering webinars with authors.

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Roz Fink, Jamie Levy, Jo Duesenberg, Teri Black, Gwen Albrecht, Jan Rothert, Bernie, Lynn Hutelmyer, Dicksie Johnson, Mimi Anderson, Ellen Mastowski, Rosemary Anderson

Jimmy Proffitt and Tom Mullligan

Richard Thomas and George Schaffer

Terry Newell, Bill and Roz Fink

John Hayden on Ethics

Tom Kuzma

Caitlin Skelton and Martha Heinze

Dublin Ireland, Golfers Len LoVullo, Dave McDermid, Tom Stamm, George Mang and Peter Carriero

Joe and Sharon Timmons, Tom Stamm, Nancy and Andy Frazier

Ronnie Moore, Robert Giles, Joe Hytelmyer

Cindy and Len LoVullo

Lynn and Joe Hytelmyer

Tom Albrecht

Jim Mastowski and C.J. Ketterer

President Curtis Anderson Grandkids

Stuart Shenton

Preston Gough and Scott Anderson

Dan Mahar, Harry and Francis Johnson

Danielle Wade

Karen and Madelyn Thomas

Emily Lomax and Julie Savage

Brother and sister team Matt and Amy Leicht

Matt Letson

Gwen and Tom Albrecht

Managing General Angels

Bernie Lecture

A serious Tony Pierce at 2011 Automation & Technology Conference

John Griffen

Denise Romero, Jow Majsak, Lisa Barnes

Roger Ware

Joe and Harriet Macchia

Frank Neugebauer

First Lady Laurie Giles

David Wheal and Bob Quirk get a lesson from Karen Quirk

Char Ganeku, Wendy Markham, Sheri Ishikawa

109 President Mark Rothert

Phil Rellinger

Allison and Kevin Tromer

C hapter

The Committee Structure: A Way to Serve and be Served

By Tom Stamm President, Binding Agreements Markel Wholesale

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The AAMGA is made up of an elite group of insurance specialists dedicated to the betterment of the wholesale segment of the insurance industry. One of the greatest assets to accomplish this goal is its committees. AAMGA committees provide the Association and its members with the ability to focus on strategic objectives in all areas of concern. The committees are considered the “incubators” of the AAMGA and the wholesale industry’s future leaders.

Automation & Technology The Automation & Technology Committee provides expertise and guidance to the Association, enabling membership to stay in tune to the ever evolving world of automation and technology. The committee is also responsible for the content, functionality, and maintenance of the AAMGA’s website (www.aamga. org). It also organizes the wholesale insurance market’s only Automation & Technology Conference every March.

In 1987, there were only a few standing committees. Then President Wesley C. Duesenberg, Jr. (Southern Insurance Underwriters), decided to add a Computer Committee to confront the many questions regarding computer use in the wholesale insurance industry. During Wes’s tenure, the AAMGA also decided to have all committees meet collectively, consequently conducting the first “Committee Day” in July 1988, in Kansas City, Missouri.

Education The Education Committee works with the AAMGA University Chancellor and staff to ensure that quality and relevant courses are made available to the Association. The committee provides input on topics, content, instructors, and education locations, all with the goal of providing the membership with ideal technical and developmental solutions to meet their educational needs.

Each year since then the committees gather in June during the AAMGA Committee Days. This weekend retreat provides an opportunity for the Board members and liaisons to meet with all committees for strategic planning and budgeting for the coming fiscal year.

Governmental Affairs The Governmental Affairs Committee ensures that AAMGA members are kept informed about governmental and regulatory issues, developments, and other matters impacting their operations. Committee members regularly meet with state and federal elected and appointed officials across the country. The AAMGA’s influence on Congress and state regulators has enabled members of the Association to advance needed insurance reforms favorable to the wholesale insurance industry. It has also resulted in the AAMGA being afforded the opportunity to testify and provide specific industry data and information before committees of the US Senate and House of Representatives. The Governmental Affairs Committee also liaises regularly with the Financial Services Authority in the United Kingdom, in order to discuss and advise how regulatory initiatives will impact their business in the United States.

In 2000, then President Len LoVullo (LoVullo Associates, Inc.) elevated the effectiveness of 15 different committees by making it mandatory that all committee members attend Committee Day. He also increased the size and effectiveness of the UFO Committee to 13 highly motivated young professionals. To further enhance the effectiveness and the collaboration between the generations, in 2002 acting President Rob Giles (Scobie Group) appointed a UFO delegate to actively participate on each AAMGA committee. Today, there are eight AAMGA committees. Then, and now, the success of the AAMGA has been, and always will be, dependent on the energetic collaboration of its cohesive committees. The current AAMGA standing committees are described below.

HR Committee The Human Resources Committee works to provide AAMGA members with information needed to effectively manage their human capital investment. The Committee works

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who have declared insurance or risk management as their major.

closely with AAMGA headquarters staff to ensure timely updates are made to the Employee Handbook, which is downloadable from the AAMGA website. The AAMGA University is currently a recognized provider of SHRM (Society of Human Resource Management) credit which can be applied to required continuing education credit needed to maintain both the PHR (Professional in Human Resources) and SPHR (Senior) designations. Marketing The Marketing Committee provides important initiatives that advance the brand value of the Association. It works closely with the AAMGA University, marketing the University’s benefits to the membership as well as to their customers. The committee oversees the advertising and marketing plan for the Association publications, including the quarterly magazine “WIN,” email blasts, annual meeting newspapers, press releases, conferences, and white papers. It also organizes the AAMGA’s coveted Achievement Awards, given to deserving members of THE insurance INDUSTRY. The committee also provides benefits to numerous college students around the country

Membership The Membership Committee works with the headquarters staff and prospective new members to ensure applicants meet various membership requirements. The committee also sponsors a “New Members” reception at each Annual Meeting, and assists new members in becoming acclimated with all the benefits and privileges to which they are entitled. Operations The Operations Committee works with the AAMGA staff to coordinate venues, speakers, receptions, programs, and the Insurance Master Calendar. They work on special projects as requested by the Board of Directors, other committees, and headquarters. It also maintains and updates the “standard operating procedures” (SOPs) of the Association. This book is the end result of one of those projects.

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Future AAMGA Leaders Matt Letson, Shawn Chaffin, Tripp Duesenberg, Jennifer Larsen-Jenson, Coleen Giles-Harris

Heinze Family, Sara, Martha, Kelsey, Bernie

Rosemary and Curtis Anderson

Kurt Bingeman

Jennifer and Ty give tribute to father and husband Baron Garcia

Mark Rothert

Carol and Tom Stamm

Marty Blair and Martha Heinze

Euclid Black and Tom Snyder

Eva and Lou Mastos

Mary Calabrese

Ellen and Frank Mastowski

Courtney and Fred Steves

Sue Davis and Barbara Gough

Pam Mulligan and Donna Perch

Donna Schacher

Whoâ&#x20AC;&#x2122;s the Leader?

Annual convention is for all ages Says Caren Distel with grandson Garvin

Ken Coon

Don Proffer

Suzanna Chaffin, Suzanna, Rosemary Anderson, Jan Rothert, Ellen Mastowski enjoying spouse luncheon in Orlando

Angela and Josh Korver

Tony Glotzback, Bernie Heinze, Dave Neilson

Wes and Jo Duesenberg with son Tripp

Linda and Wayne Forest

Bryan and Caitlin LoVullo

Bobby Owens

Ed Levy

Frank Mastowski, Robert Sanders, Jerry Alongi

Len, Jacquelyn, Brittany, Cindy and Paul LoVullo

Studious Greg Rubel

Paul Davis, Bob Distel, Bobby Owens, Caren Distel

Board Members Tom Mulligan, Gary Tiepelman, RC Chaffin, Mark Rothert, Wayne Forest, Bernie Heinze meeting with Associate members

Eunice Hucker, Sue Bishop

Agnes and Roger Ware

Kerry and Susan Dillard, Barbara and Preston Gough

The 2011 Annual Convention in Orlando kick off with marching band

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Bob Schacher, Tony Washington, Joe Sinnon, Cindi Brown

Mary Beth and Tony Glotzback

Frank Mastowski

E nding letter

Tom’s Thoughts There is no power more powerful than the power of a powerful team!

feelings of euphoria as I, when viewing these classic photos.

When the AAMGA Operations Committee approached me to put together a 20-year history book as a follow up to the AAMGA’s “Proud History-Bright Future,” published in 1991, I was very humbled, yet anxiously excited about a few things that came to mind … to be a part of AAMGA history, to serve my mentor of 40 years and to have the opportunity to take a wild ride down memory lane … and that it was !

During the past year, I have endured a lot of time organizing, researching, writing, proof reading and deadline follow up, all while learning about the world of editing and publishing. However, the most rewarding experiences came when I was able to work side by side with a wonderful volunteer group of member/writers, who definitely provided an interesting diversion from my day job.

My trip down memory lane was much more extensive than expected; in order to adequately represent you and your participation in various AAMGA events, I took on the process of gathering, reviewing and identifying people in more than a thousand different photos. I hope you experience those same

Who are they? With much gratitude, I acknowledge those listed below, who deserve a world of thanks for their time, enthusiasm, dedication, memory banks and passion in order to put this book in your hands. I hope you enjoy the next generation (volume II) of AAMGA’s “Proud HistoryBright Future.” Your friend,

Tom Stamm

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A cknowledgments Authors Thomas D. Stamm, President Binding Agreements, Markel Wholesale, Scottsdale, AZ Thomas B. Rogan, Director, President, Sec/Tres, TBR Consultants, Inc. Sunrise, FL Past President, AAMGA Chris Behymer, Director Program Development, Markel Wholesale, Scottsdale, AZ Peter Barrett, Chairman, Bell & Clements Ltd, London, UK James A. Roe, President, Arlington/Roe & Co., Indianapolis, IN Kerry P. Dillard, President, Bloss & Dillard, Inc., CMGA, Huntington, WV Euclid G. Black, CEO, Black/White & Associates Insurance Brokers of Louisville, Louisville, KY Colleen Giles Harris, Director of Centralized Office Services Scobie Group Others Gary Peterson, President, Chris-Leef General Agency, CMGA, Shawnee Mission, KS Vice President, AAMGA Matthew Letson, Vice President, Hanover Excess & Surplus Inc., CMGA, Wilmington, NC Director, AAMGA, Past President, AAMGA UFO Gary L. Gibson, President, Coastal Brokers Insurance Services, Pleasanton, CA Co-Chair, Operations Committee, AAMGA David S. McDermid, Vice President Underwriting, Scottsdale Insurance Company, Scottsdale, AZ Co-Chair, Operations Committee, AAMGA Wesley C. Duesenberg Jr, President, CEO, Southern Insurance Underwriters, Inc., CMGA, Atlanta, GA Past president, AAMGA continued

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Bernd G. Heinze, Esq., CEO, The Heinze Group, LLC, King of Prussia, PA Executive Director, AAMGA Wayne G. Forest, Sr., President, Forest Insurance Facilities, Inc., CMGA, Metairie, LA President, AAMGA Mark A. Rothert, President, Ron Rothert Insurance Services, Inc., CMGA, Portland, OR Immediate Past President, AAMGA R.C. Chaffin, President, CEO, SeaCoast Underwriters, Inc., CMGA, Coral Gables, FL President Elect, AAMGA Jennifer Larsen Jensen, Vice President, Erickson-Larsen, Inc., Maple Grove, MN Past President, AAMGA UFO Donald Proffer, President, Proffer Productions, Kansas City, MO Carol Stamm, Scottsdale, AZ Mark Wells, Chairman, Wells Publishing, Inc. Dena Kaplan, Associate Publisher, Insurance Journal Guy Boccia, Vice President, Wells Publishing, Inc. Amy Seals, Editor, freelance editor Groups The members of the AAMGA Operations Committee The staff of Proffer Productions, Kansas City, MO The staff of the Surplus Line Reporter, Terrytown, LA

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God Bless America

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American Association of Managing General Agents 610 Freedom Business Center, Suite 110 King of Prussia PA 19406 610-992-0022 www.aamga.org