The Tennessee Insuror Sept/Oct09 by Insurors of Tennessee

THE TENNESSEE

INSUROR September/October 2009

Vol. 20 No. 5

www.insurors.org

14 37 48

Your 2009 Conferees

E&O And Social Media

Check Marks the Spot!

Welcome to Memphis And the Insurors 116th Annual Convention

The Tennessee Insuror

contents

THE TENNESSEE

INSUROR Vol. XX, Number 5 September/October 2009

features

nsurors

of TENNESSEE

memphis

Phone (615) 385-1898 Toll Free: 1-800-264-1898 Email: info@insurors.org

116th ANNUAL CONVENTION OCT. 24-27, 2009

Editor: Charles T. Bidek, CPCU Publisher: Daniel D. Smith, Jr.

4 Welcome to Memphis INSURORS OFFICERS

President .......................................................... Walt Bradshaw, J.D. Immediate Past President ... Scott Ferguson, CPCU, CIC, ARM State National Director .................................. Davis Porch, III, CIC Vice President, Region II and Pres. Elect ........... Tee Zerfoss, III Vice President, Region I ............................................. Roger Smith Vice President, Region III.................................... Ed Gibbons, AAI Treasurer .................................................................... Eddie Miller, III Secretary ................................................... John McInturff, III, ARM Director, Region I......................................... Allen Green, CIC, CFP Director, Region I ................................................ Chris Allison, CIC Director, Region I .......................................................... Bobby Sain Director, Region II .......................... Kevin Hale, CIC, CPIA, CWCA Director, Region II ....................................................... Jimmy Alsup Director, Region II ................................... Johnny Thompson, CIC Director, Region III ....................................................... Andy Shafer Director, Region III ...................................................... Bob McIntire Director, Region III ........... Steve Bryant, CIC, CPCU, LUTCF, AAI Young Agents Chairperson ....................................... Chip Hoover

ADVERTISING

Display advertising rates, deadlines and specifications may be obtained by writing to Insurors of Tennessee, 2500 21st Avenue South, Suite 200, Nashville, TN 37212, calling 615-515-2601, e-mailing dsmith@insurors.org or online at www.insurors.org The Tennessee Insuror is provided to all Insurors of Tennessee members and associate members as a member service.

INSURORS OF TENNESSEE 2500 21st Avenue South, Suite 200 P.O. Box 120539 Nashville, TN 37212-0539 www.insurors.org

And the Insurors 116th Annual Convention

Our 2009 Convention Speakers

Our 2009 Convention Sponsors

Deciding on A Mortgage Company

Your 2009 Conferees

E&O And Social Media

Check Marks the Spot!

Continuing Education Students Have Earned Top Industry Designations Keep Agency E&O Concerns in Mind When Using Social Media Utilizing Coverage Checklists and Questionnaires to Document

departments 21

From Your President

From Your CEO

Exhibitor Listing

Education Calendar

Government Affairs

Company Briefs

Member Tips

Welcome to the 116th Annual Convention Thoughts on the Healthcare Debate

A Look at Red Flags Rules

Get the Most From Your Time in the Exhibit Hall

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Welcome Welcome to to Memphis Memphis

SCH EDU LE

And Andthe theInsurors Insurors116th 116thAnnual AnnualConvention Convention

Thank you for joining us for our 116th Annual Convention, and welcome to Memphis! Here is a look our convention schedule:

Saturday, October 24th Opening March of the Ducks Young Agent Welcome Dinner

DUCK MARCH

5:00 pm 6:30 pm - 9:30 pm

The Peabody Lobby Charlie Vergo’s Rendezvous Ribs

RENDEZVOUS

WORLD-FAMOUS

Join the Young Agents and dine on some of the finest ribs in the world at Charlie Vergo’s Rendezvous Ribs.

Join us in The Peabody Lobby for the world renowned March of the Ducks from The Peabody’s marble fountain.

Sunday, October 25th Registration Desk Open Workers’ Compensation Seminar (2 ce hrs) Exhibit Hall Open Exhibit Hall Walk-around lunch Exhibit Hall Door Prizes Duck March Opening Reception (cocktail attire for tonight please) Welcome & Dinner Opening Celebration & Awards The Blues Other Brothers Concert

Mezzanine Level The Peabody Grand Ballroom D+E The Tennessee Exhibit Hall The Tennessee Exhibit Hall The Tennessee Exhibit Hall The Peabody Lobby The Peabody Grand Ballroom Foyer West The Peabody Grand Ballroom The Peabody Grand Ballroom The Peabody Grand Ballroom

10:00 am - 5:00 pm 10:30 am - 11:30 am 11:00 am - 4:30 pm 11:30 am - 1:30 pm 4:00 pm - 4:30 pm 5:00 pm 6:00 pm - 7:00 pm 7:00 pm - 8:00 pm 8:00 pm - 9:00 pm 9:00 pm - 11:00 pm

THE BLUES OTHER BROTHERS Enjoy the sounds of the 14-piece Blues Other Brothers band at our Opening Celebration in The Peabody’s luxurious Grand Ballroom. presented by: of Tennessee

The Tennessee Insuror

Monday, October 26th Past Presidents Breakfast Hernando De Soto Room Registration Desk Open Mezzanine Level Internet Utilization for Agency Marketing (2 ce hrs) Grand Ballroom Salon D Avoiding the Price Driven Sale (2 ce hrs) Grand Ballroom Salon E General Session w/ Sen. Shuler & Sen. Tanner Grand Ballroom Salon A, B+C Golf Tournament (pre-paid players only) Chickasaw Country Club Cooking School (pre-paid participants only) Viking Cooking Classroom Duck March The Peabody Lobby Company Night Receptions BlueCross BlueShield of Tennessee Hernando De Soto Room Servpro & Lyons Cleaners Forest Room The Hartford Venetian Room Insurors Reception and InsurPACTN Fundraiser The Peabody Rooftop &Skyway Lounge

7:00 am - 8:00 am 7:30 am - 11:00 am 8:00 am - 9:45 am 8:00 am - 9:45 am 10:00 am - 11:30 am 12:30 am - 6:00 pm 1:30 pm - 4:30 pm 5:00 pm 7:00 pm - 9:00 pm 7:00 pm - 9:00 pm 7:00 pm - 9:00 pm 9:00 pm - midnight

COOKING SCHOOL GOLF TOURNAMENT “Chefs” taking part in our cooking school will need to make their own transportation arrangements to get to the class, located at:

1215 Ridgeway Road, Suite 101 901.763.3747

Golfers joining us for this year’s tournament at Chickasaw Country Club will need to make their own transportation arrangements to get to the course, located at:

3395 Galloway Ave. Memphis, TN 901.323.6216

presented by:

INSURPACTN 1ST ANNUAL FUNDRAISER Diamonds are a PACs best friend, and InsurPACTN fundraiser, taking rors Reception on the rooftop Lounge. For each $100 doyou will receive a glass of ets and a bracelet that holds diamond stud earrings! earrings, but only one set studs, worth over $2600! Association PAC, we even more!

you can find out why at our first annual place on Monday night at the Insuof The Peabody and the Skyway nation you make to the PAC, champagne, two drink tickthe key to winning a pair of You will also receive a set of will be the real diamond When you support our all win. Now, you can win presented by:

Tuesday, October 27th Building a Sales Driven Culture Seminar (2 ce hrs) Venetian Room Association Day Brunch & Annual Business Meeting Continental Ballroom

The Tennessee Insuror

8:00 am - 10:00 am 10:00 am - noon

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ASHLEY ARNOLD Ashley Arnold serves as the General Counsel for Insurors, and part of her job includes lobbying for Association interests. One such interest is the new Workers’ Compensation law PC1041, which goes into effect on December 31, 2009. Ashley spent countless hours studying the law and now she will present that knowledge to you in her seminar, “Workers’ Compensation,” taking place on Sunday morning, October 25th from 10:30 to 11:30 in The Peabody Grand Ballroom D+E.

J. DAVID DANIEL J. David Daniel is the President of Daniel & Eustis Insurance in Baton Rouge, Louisiana. In September of this year, he was inaugurated as the Chairman (formerly known as President) of the Big “I” National Association. Prior to his election on the national Board, David served on the Board of Directors of the Independent Insurance Agents & Brokers of Louisiana (IIABL) for eight years and became president in 1997. He will address the attendees at the Tuesday morning, October 27th Association Day, taking place at 10 am in the Continental Ballroom.

MIKE KEITH Mike Keith has been the “Voice of the Titans” since 1998, and has worked for the team since 1996. A native of Franklin, Keith began his career while a student at the University of Tennessee, working on the Vols Radio Network. Keith’s most famous call is that of the Music City Miracle, near the end of his first season as play-by-play announcer. He is a 4 time winner of the Tennessee Sportscaster of the Year award. Mike will be on hand at the Sunday night October, 25th Opening Celebration, taking place at 7 pm in The Peabody Grand Ballroom.

MIKE MANSPERGER Mike Mansperger is the owner of CCRM Associates, a small-business technology consulting firm in Marietta, GA. Mike has worked in the insurance industry and/or with insurance clients for over 20 years, including 3 years as Vice President and General Manager of Doris Insurance Systems. Mike’s session, “Internet Utilization for Agency Marketing,” will take place on Monday morning, October 26th, at 8 am in the Grand Ballroom Salon D. 6

SPE AK

REP. HEATH SHULER

ERS

Rep. Heath Shuler was elected to North Carolina’s 11th Congressional District in November 2006, but many Tennesseans knew the name long before that. Shuler was a star Quarterback for the University of Tennessee Volunteers from 1990-1993, passing for 4,089 yards and 36 touchdowns during his Volunteer career. In 1994 he was drafted by the NFL’s Washington Redskins, and went on to play several years in the league. After returning to North Carolina and becoming a resident of Haywood County, Shuler defeated an eightterm incumbent Republican to win his Congressional seat. He is now a loyal member of the fiscally responsible Democratic Party Blue Dog Coalition, a fiscally conservative group which has been and will be essential in the Healthcare reform legislation process. Rep. Shuler will address attendees at the Monday morning General Session, taking place at 10 am in the The Peabody Grand Ballroom.

REP. JOHN TANNER Rep. John Tanner Congressman Tanner has represented Tennessee’s 8th District in West and Middle Tennessee (including all of Benton, Carroll, Crockett, Dickson, Dyer, Gibson, Haywood, Henry, Houston, Humphreys, Lake, Lauderdale, Madison, Obion, Stewart, Tipton and Weakley counties, as well as portions of Montgomery and Shelby counties) since 1989. He is a personal friend of Rep. Shuler and a fellow member of the Democratic Party’s Blue Dog Coalition, which he co-founded. Tanner is also, like Shuler, a former Volunteer athlete, having attended the University of Tennessee on a basketball scholarship. As an independent insurance agency owner himself, Congressman Tanner uniquely understands the role of the agent in the consumer insurance process, and recently received an award of recognition for his work on our industry’s behalf from the Big “I”. Rep. Tanner will also address attendees at the Monday morning General Session, taking place at 10 am in the The Peabody Grand Ballroom.

JEFF WODICKA, CIC Jeff Wodicka is a 30-year veteran of the insurance industry and serves as Chairman and CEO of Casswood Insurance Agency in New York City. He is also the National Program Director for the National Alliance Producer School. Jeff’s sessions are “Avoiding the Price Driven Sale,” taking place on on Monday morning, October 26th, at 8 am in the Grand Ballroom Salon E and “Building a Sales Driven Culture,” taking place on Tuesday morning, October 27th at 8 am in the Venetian Room. The Tennessee Insuror

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Deciding on a Mortgage Company

By David Coldiron, VIce President of Lending for Finworth Mortgage, an InsBank Company

Is There Really A Difference Between Mortgage Companies? Absolutely. Gone are the days where mortgage lenders ask for a copy of your driver’s license and almost nothing else (Whose idea was that anyway?). It did not take a rocket scientist to close a mortgage loan in 2006. In 2009, the mortgage rules are changing by the week, and you need to rely on knowledgeable and experienced mortgage professionals to assist you with such a major undertaking. Some products that were available two months ago are not available today. Working with competent loan originators can be the difference between closing on time and missing out on a home or a low interest rate.

What is the difference between a Correspondent Lender and a Mortgage Broker? A correspondent lender has multiple outlets to shop mortgage rates for their borrower, just like a mortgage broker. However, a correspondent lender closes and funds the mortgage in their name, whereas brokers close their loans in the lender’s name. Correspondent lenders closing a mortgage loan in their own name allows them the ability to adhere to the same mortgage regulations as brokers, but in a much more efficient manner and often at a lower cost. The federal government has implemented many changes that can make it more difficult for mortgage brokers to operate. One example of this is the Home Valuation Code of Conduct (HVCC) which requires mortgage companies to use a third party to order an appraisal so there is no direct contact between the mortgage company and the appraiser. The intent of the new rule was to lessen the opportunity for collusion between the lender and appraiser via artificially raising appraised values of properties. As a result of the rule, brokers are required to call a third party in what may be a far away place and ask them to call a ran10

domly generated appraiser of the mega-lender’s (not the broker’s) choosing. The third party gets a portion of the appraiser’s fee for picking up the phone. Appraisers could have less incentive to do a great job in the above-mentioned instance since they may make less money (third party caller takes a cut) and will not be rewarded for working quickly and providing a superior product. Often times, appraisers are sent in from 45 minutes or an hour away to do an appraisal in a market in which they have little familiarity. Correspondent lenders can make arrangements to use local appraisers whom they know do great work. The appraisers must be rotated and can be contacted by a third party who does not charge a fee. This should result in a much more efficient, less stressful and less costly experience for the borrower.

How Should Mortgage Rates Factor In? Rate has always been, is now, and always will be an extremely important factor in deciding who to employ as your mortgage lender. Having multiple outlets in order to compare pricing is critical to keeping lenders honest. Television, internet and print ads constantly remind us of the importance to compare various loan options.

Make Sure You Are Comparing the Total Costs One of the most common mistakes that consumers make when shopping for the best deal is calling multiple outlets and asking what their rates are on a given day. There is much more involved in ensuring that you get the best overall deal than by simply asking for the current rate. Although at face value a rate of 5.00% sounds better than 5.25%, it very well may be a worse deal. In many cases, the advertisement you read or the lender you call may quote rates that have some outrageous amount of costs associated with them. When choosing a mortgage company, ask for references. Ask the company if they are a correspondent lender or a broker. Narrow your selection down to two or three competitors The Tennessee Insuror

The Tennessee Insuror

based on your perception of their ability to get your mortgage closed efficiently. The final step will be to ask for a good faith estimate on the same day from the mortgage companies that you trust. Shop around. Find a competitive deal. Always work with a trustworthy company with a proven record and you should have a great mortgage experience.

David Coldiron is Vice President of Lending for Finworth Mortgage, an InsBank company. A Western Kentucky graduate who, after five years in the mortgage business, moved from Bowling Green to accept a position with Finworth. He has over seven years of lending experience. About Finworth

Finworth Mortgage is a correspondent mortgage lender located in Nashville that was recently acquired by InsBank. To inutte David Coldiron quire about refinancing or purchasing a home, contact David Mortgage Lender, Finworth Mortgage at 615.345.9904. You can also visit Finworth Mortgage online at www.finworth.com, which contains such valuable tools as Mortgage, a Nashville-based monthly payment, additional payment, loan refinance and inutation. InsBank and Finworth HMdemonstrates IIA IofTN.qxd:Layout 1 1/10/08 3:15 PM Page 1 w wisely” that a terest only mortgage calculators. u ome to expect from InsBank.

her mortgage-related needs, Mortgage at 615-386-7102.

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Your 2009 Conferees

Continuing Education Students Have Earned Top Industry Designations Your 2009 CIC Conferees Ms. Lucy Catherine Adams, CIC, CISR Widener Insurance Agency, Inc. - Johnson City Ms. Karen C. Anderson, CIC TIS Insurance Services, Inc. - Knoxville Karen has been in the industry for 19 years, and now serves as the Marketing Director for TIS, where she has worked for the past 2 years. She has her MBA as well as her BSN and her RN. Ms. Niki S. Antonini, CIC State Auto Insurance Company - Goodlettsville Niki graduated from Capital University in Columbus, Ohio, with a Bachelor of Arts degree 13 years ago, and has worked for State Auto ever since. She now serves as a Senior Commercial Specialist for the company. Ms. Joyce S. Clark, CIC, CISR The Crichton Group - Nashville Joyce is a 40 year veteran of the insurance industry, and began her career with a part time position during her senior year of high school. She currently serves as a Customer Service Agent for The Crichton Group, where she has been employed for 20 years. Ms. Erin J. Corken, CIC, CISR Collier Insurance - Memphis Ms. Sherry G. Crawford, CIC, CPCU, CPIW, AIS BB&T - KDC Insurance Services - Kingsport Sherry has been in insurance for 28 years, ever since she started out right after high school with Continental. She attended Jr. College in Florida and then worked with Aetna for 5 years. She has been with BB&T for over 18 years. Ms. Michelle Bryson-Hale, CIC Allied Insurance - Nashville Michelle has 21 years in the insurance industry, beginning with a job as a Personal Lines Underwriter at Allstate after graduating with a Finance and Insurance degree from MTSU. She went on to work for InServe and VanMeter Insurance Agency before joining Allied in September 2005 as a Sales Manager. Mr. Kevin Gad, CIC, CPCU, AU State Auto - Goodlettsville Kevin has spent 19 years in insurance since graduating from MTSU with a Bachelor in Business Administration-Marketing. He spent seven years working in claims for various carriers, and in 1997, started with State Auto in commercial lines and has held various positions in his 12 years with the company. 14

Mr. Jason Robert Hilkin, CIC Liberty Mutual - Nashville Jason has been in the insurance business since 2004, when he graduated with a Bachelor of Business Administration from the University of Georgia and was hired by Liberty Mutual. He now serves as one of Libertyâ&#x20AC;&#x2122;s Territory Managers. Ms. Chrystina Howard, CIC, CRM, ARM Willis of Tennessee - Nashville Ms. Linda Ann Inman First Horizon Insurance Group - Nashville Mr. Jack W. Jeter, CIC BB&T- KDC Insurance Services - Kingsport Ms. Denise M. Manning, CIC, CISR, ABCP Helena Chemical Company - Memphis Denise has been in insurance for 4 years, working as a Risk Management Coordinator for Helena Chemical Company. In addition to her current designations, she is also working on achieving her ARM. Mr. Bryan Douglas Moultrie, CIC Liberty Mutual - Memphis Mr. Joseph Samuel Neill, CIC Sam Neill Insurance Agency - Morristown Sam has been in insurance since 1991, owning and operating his own agency. He received his Bachelor of Science in Business Administration with a concentration in Risk Management and Insurance from Appalachian State. Ms. Emily Berglund Ramsey, CIC J. Smith Lanier - Chattanooga Ms. Rhonda S. Rowan, CIC USI of Tennessee - Memphis Rhonda has been in insurance for almost 30 years, starting out with Cotton Belt Insurance after attending the University of Memphis. She went on to work for Firemanâ&#x20AC;&#x2122;s Fund, Amerisure, Crump, National Insurance Agency and Menard, Gates & Mathis before joining USI of Tennessee as a Senior Account Manager. Mr. Ronald Scott Samuels, CIC BFS Insurance Group - Clarksville Scott has over 18 years of insurance industry experience, beginning with his time at Wyatt Group Insurance during which The Tennessee Insuror

he graduated from the State Auto Pacesetter program. In April of 2009 he became an Owner and Partner of BFS Insurance Group. He has a Bachelor degree in Business Management from Austin Peay State University. Ms. Kathy E. Simmons, CIC, AAI, CPIW TIS Insurance Services, Inc. - Knoxville Kathy started her insurance career in 1979 as a Commercial Lines Rater with Aetna. After spending time working in an agency as a Account Manager she joined TIS in 2004. Now 30 years into her career she holds the position of Claims Representative. Ms. Kelly Lynn Smotherman, CIC Wade & Egbert Ins. Partners - Nashville Kelly has been in the industry for over 15 years after starting in her high school’s coop program in Murfreesboro. Her first job was as a CSR for Gentry Insurance Agency. After high school she went on to work for a Nationwide agent throughout her college career at MTSU. Upon graduating with a Bachelor of Business Administration she worked for Valley General Agency, The Mobley Agency and The Newport Agency before joining Wade & Egbert as a Commercial Lines Account Manager.

Ms. Christina Jo Snyder, CIC, CPIW BB&T Insurance Services, Inc. - Nashville Christina has been in the insurance industry for 28 years, starting out at a small agency in Kansas after attending Kansas Newman College in Wichita. She went on to work for several insurance agencies in Kansas, Indiana and North Carolina before moving to Tennessee. In Tennessee she has worked for Sedgwick James, TIS and her present employer, BB&T Insurance Services. Mr. Laurence Sullivan, CIC, CPCU Penn National Insurance - Nashville

Your 2009 CISR Conferees Ms. Heather E. Benefield, CISR Insurance Incorporated - Cleveland Heather has been in the industry for 5 years, now working as a Claims Manager for Insurance Incorporated. She has an Associates degree in Applied Science and a Certificate in Office Systems Management. Ms. Jerri E. Bishop, CISR Mowery Insurance, Inc, - Knoxville Jerri has over 15 years of insurance experience, all with Mowery Insurance. She attended Walters State Community College in Morristown and is now a Commercial Account Repre-

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sentative with the agency. Ms. Angela M. Black, CISR Athens Insurance - Athens Ms. Shannon Gregory Boshers, CISR Willis of Tennessee, Inc. - Nashville Ms. Karen Elaine Brock, CISR Union Standard Insurance Co. - Nashville Karen began her insurance career 33 years ago at USF&G in the Assigned Risk department. She stayed at USF&G for almost 23 years, moving to Unitrin Insurance after her office closed. After 7 years with Unitrin that office closed as well. She joined a small brokerage firm before landing with Union Standard where she is presently employed. Ms. Leigh Gilpin Cumbow, CISR BB&T-KDC Insurance Services - Kingsport Ms. Christie N. Davis, CISR Westan Insurance Group - Union City Ms. Barbara Dilliard, CISR Willis of Tennessee - Nashville Barb is a 15 year veteran of the insurance industry, having started her career in personal lines and transitioning to commercial lines after a couple years. She relocated from Ontario, Canada to Nashville in 2005 and now works as a Client Manager for Willis of Tennessee. Ms. Paula C. Gallo, CISR Regions Insurance - Memphis Ms. Lee Ann Gattis, CISR V. R. Williams & Co - Winchester Lee Ann has been in insurance for 7 years, having begun her career in the industry in June of 2002. She earned a Bachelor of Business Administration degree from MTSU in 1978. She now works in he Commercial Lines department for V. R. Williams. Ms. Sonja M. Graham, CISR, ACS, AIS, INS Liberty Mutual Insurance Co. - Knoxville Sonja has spent 23 years in the insurance industry, and they have all been with Liberty Mutual. She began her career as a 16 year old file clerk and now serves as a Customer Service Representative for the company. Ms. Terri M. Harrison, CISR Westan Insurance Group - Union City

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Ms. Shari Leigh Herron, CISR First State Insurance - Jackson Shari has almost 10 years of experience in the insurance industry, having spent 6 years working in Personal Lines and currently having worked over 3 years in Commercial Lines as a CSR with First State Insurance. Ms. Gail Hindman, CISR First Volunteer Insurance Agency, Inc. - Chattanooga Ms. Cynthia Evans Lewis, CISR USI of Tennessee, Inc. - Memphis Cynthia graduated from the University of Memphis in 1992 with a Risk Management and Insurance degree but did not get into the industry until 2005 when she joined USI. She began as a receptionist and is currently an Account Manager. Ms. Heather A. Long, CISR The Assurance Center, Inc. - Knoxville Heather has been in the insurance business for over 4 years. She earned her Associate degree in Computer Accounting from Pellissippi State and is currently working on attaining her CPCU designation. Ms. Julie Lauren Martin, CISR The Allison Insurance Group - Jackson

Julie has 3 years of experience in the insurance industry, starting out as an Account Representative and working her way up to Commercial Account Manager last year. She has a Bachelor of Science degree in Business Administration from Union University. Ms. Cynthia H. Matlock, CISR TIS Insurance Services, Inc. - Knoxville Cindy has been in insurance for 5 years, beginning with TIS in 2004 after switching career fields from social work. She received her Bachelor of Arts degree from the University of Tennessee at Knoxville in 2004 and currently holds the Account Manager position in her agency’s Health Care Services Division. She also handles bonding for that department. Ms. Holly Higginbotham McGlocklin, CISR BB&T Huffaker & Trimble - Chattanooga Mr. David M. Miles, CISR Westan Insurance Group - Paris Ms. Sheri L. Moore, CISR Newton Jones Agency, Inc. - Knoxville Ms. Hollie Ann Morgan, CISR CAC Financial Partners LLC - Ripley Hollie has over 10 years of experience in the insurance and financial industry. Hollie has been a licensed insurance pro-

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ducer for 3 years and works with the firm’s clients on all aspects of their property and casualty needs. Ms. Theresa Kay Neff, CISR, CPIA Insurance Planning & Service Company Chattanooga Theresa has been in insruance for over 13 years, starting out at IPSCO in 1996 aftermoving and changing professions several times due to her husband’s military service. She now handles E&O coverages. Ms. Freida K. Peterson, CISR BB&T-KDC Insurance Services - Kingsport Frieda is a 26 year veteran of the insurance industry, having started her career in the early 80s as a Debit Agent. She holds an Associate degree in Accounting. Ms. Darcy Susanne Ragland, CISR BB&T Cooper, Love, Jackson, Thornton & Harwell - Nashville Darcy began her insurance career 5 years ago as an Account Manager for BB&T Thorton & Harwell which later merged with BB&T - Cooper, Love & Jackson in 2005 to form the current agency. Mr. Jeffrey M. Roberts, CISR, CWCA Lipscomb & Pitts Insurance - Memphis Jeff received his Bachelor degree in Business Administration form the University of Central Arkansas and then started at Lipscomb & Pitts 3 years ago. He now works as a Claims Coordinator and ProComp Administrator for the agency. Ms. Nichelle Marie Shanks, CISR BB&T-KDC Insurance - Kingsport Ms. Shelia Rae Shell, CISR Stevens Insurance Associates, LLC - Chattanooga Ms. Gina K. Sims, CISR Philadelphia Insurance Companies - Nashville Gina is a 19 year veteran of the industry, having started her career with a small claims adjusting company in 1990 and then working for State Farm agents before joining Philadelphia in 2003. She now serves as an Account Executive II for Philadelphia. Mr. Anthony Craig Soppet, CISR TIS Insurance Services, Inc. - Knoxville Mr. Matthew M. Spellings, CISR Westan Insurance Group - McKenzie Ms. Heather Pittman Warren, CISR Boyle Insurance Agency - Memphis Heather has 7 years of experience in insurance after begin20

ning as a Bond Underwriter in 2002. After moving from Jackson to Memphis in 2008 she began her current job as a Personal Lines CSR. Ms. Angela Nicole Whaley, CISR Heritage Insurance Group, Inc. - Johnson City Ms. Jennifer Wickersham, CISR TrueNorth Companies, LLC - Chattanooga

Your 2009 CRM Conferees Mr. Billy F. Finley, CRM Life Care Legal & Risk Services, LLC - Chattanooga Billy has 3 years of risk management experience and 17 years of accounting since getting his Bachelor of Science degree from Christian Brothers University. He know serves as the Director of Risk Services for his employer. Ms. Wendy B. Ivey, CRM Life Care Legal & Risk Services, LLC - Chattanooga Ms. Susan Steinruck Ott, CRM, CPCU, AAI Crichton Brandon Jackson & Ward - Nashville Mr. Chuck Sparks, CIC, CRM, CPIA BB&T - Legge Insurance - Nashville Chuck has over 13 years in insurance since he began working for L.W. Legge Agency, which his family founded in 1946. He has held several positions in his time there, including CSR, Commercial Lines Senior Manager, Claims Manager, Customer Service Manage and currently Agency Manager, which he achieved in January of 2009. He is a graduate of Trevecca Nazerene University and is very active in the community, including serving on the Board of Directors of the Susan G. Komen Foundation of Upper Cumberland. Conferee list is current as of September 30, 2009.

Conferment Luncheon to Be Held These individuals’ achievements will be honored at the 2009 Conferment ceremony luncheon, taking place on Tuesday, November 17th at the Willis Conference Center in Nashville, during the CIC - Ruble Seminar. Conferee invitations should be received soon. The keynote speaker for the ceremony will be Richard G. Clarke, CIC, CPCU, RPLU, CITRMS, a veteran of the insurance industry and a publisher of numerous articles on a variety of executive liability and Errors & Omissions subjects. In addition, he frequently serves as an expert witness, as well as consultant to buyers of commercial insurance, and to insurance companies concerning product development. His book, entitled Decoding Executive Liability Insurance (fourth edition) was released in 2008. Congratulations to all of our 2009 conferees! u The Tennessee Insuror

From Your President

Welcome to the 116th Annual Convention

On behalf of the Insurors staff, committee members and Board of Directors, my wife Jane and I would like to welcome you to historic Memphis, Tennessee! I spent several years of my life in this city, and let me assure you, there is plenty to see and do. One such must-see item is the very hotel that is hosting our convention this year, The Peabody. One of the finest hotels in the south, The Peabody has a storied history and a past guest list filled with cultural icons. Just last month the Dalai Lama stayed in the hotel! One of the most popular traditions at the hotel is the march of the ducks, and I suggest you view it at least once while you are here. In addition to all the great things to see and do in the city, this year’s convention has plenty to keep you occupied as well. Our Saturday night the Young Agent-sponsored welcome dinner will kick things off right, with some world famous Memphis ribs. Let me tell you, the ribs at the Rendezvous restaurant are some of the best I have ever had. Sunday is the official opening of the convention, and there is definitely a full schedule. I highly recommend that you attend the morning Workers’ Compensation seminar that Ashley Arnold is putting on for us. If you didn’t already participate in one of these seminars this year, this is the perfect way to prepare yourself for the law change coming at the end of 2009. Following the seminar, make your way over to the exhibit hall. This is where all the action is, as companies will be vying for agents attention and you may very well find a new carrier or coverage for which you have been looking. After Chuck gives out all those exhibitor door prizes that afternoon, get ready for a big evening as our opening dinner and concert from the Blues Other Brothers promises to be a fun-filled night. Try not to party too hard on Sunday night, because Monday starts early with some great seminars. Our general session that morning should be very informational as well, especially with Rep. Heath Shuler and Rep. John Tanner as two of our speakers. I am very interested to hear

what they have to say on the legislation pertaining to our industry, including healthcare reform. I know that as Blue Dog Democrats, they will be important role players in any healthcare related legislation. If that doesn’t get your day started off right, I bet a round of golf at Chickasaw Country Club will liven things up! I am personally not a golfer, so Jane and I will instead be taking part in the Viking Cooking School. After those activities, everybody should be ready to wind down a little with the Monday night receptions. Three of our gracious sponsors, BlueCross BlueShield of Tennessee, The Hartford and Servpro are hosting receptions in The Peabody for agents to attend. Insurors will be hosting a reception for all attendees at 9 pm on the Peabody roof, and it will be in conjunction with our 1st Annual InsurPACTN Fundraiser, which I will talk about more later in this article. Tuesday is our day to wrap up all the convention and Association business, but first we get a little more information as our morning seminar will get us started at 8 am. After that, join us for brunch and our annual Association Day Business Meeting. We are lucky enough to have the new Big “I” National Chairman, J. David Daniel with us to induct our 2010 Board, including my successor, Tee Zerfoss.

“I a m v e r y interested to hear what (our speakers) have to say on the legislation pertaining to our industry,”

Once we adjourn the annual meeting, it is time to return home once again, hopefully with more knowledge and contacts to continue to grow and improve our agencies and our industry. It’s also never too soon to start thinking about next year, as the Insurors of Tennessee 117th Annual Convention will take place back in Nashville for 2010.

InsurPACTN Fundraiser One of the most intriguing events for me at this year’s convention is the first ever InsurPACTN Fundraiser, taking place on the roof of The Peabody and in the Skyway Lounge. I am interested to see how much support we can garner for our

Walt Bradshaw, J.D. 21

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The Tennessee Insuror

important government affairs program, as well as seeing who will win the diamond stud earrings worth over $2600! Jane and I got our tickets right away to be a part of this new event. Each person that donates $100 to our Association PAC can take part and have a chance to win. Donors will receive a champagne glass with a pair of earrings. All but one pair of the earrings will contain cubic zirconias, with the lucky winner getting a pair with 1 carat total weight in real diamonds with an official appraisal value over $2600! That should make for an exciting evening, and hopefully help raise a substantial amount for our PAC. Next year will be another important one in state government, as we have some important elections, including the Gubernatorial race. There is also plenty of insurance related legislation that will require our Association influence, and having a strong PAC is one way to make sure the voice of the independent insurance agent is heard on the Hill. I hope you will join Jane and me at this important and exciting fundraising event. If you need more information, or you would like to sign up, please contact Daniel Smith at the Insurors office by calling 615.515.2601 or e-mailing him at dsmith@insurors.org. So, one more time in case I don’t get a chance to tell you in person, welcome to Memphis! u TAAG ad_12_07

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From Your CEO

Thoughts on the Healthcare Debate?

The current debate going on in Washington requires some choices that must be made in the upcoming months. These tough decisions will undoubtedly be controversial and many people’s lives will be affected. One major decision is whether healthcare is a right to be afforded to all individuals in the United States. The concept seems easy enough until one starts looking at the individual components of such a lofty goal. Let’s look at some issues surrounding this “simple” question. First, if healthcare is a right, is it extended to every individual in the U.S., or does it apply to just citizens? Does it include legal and or illegal aliens? Next, should all individuals covered by the healthcare proposal receive equal healthcare? Again, the ideas sounds simple, but let’s try a couple of examples. In an admittedly extreme hypothetical, does a death row inmate have a right to a liver or heart transplant? And here is a question that has received a lot of air time on television in the discourse regarding the so-called “death panels.” The question is, when is a procedure logical for one person but illogical for another, and who makes that decision? Much is said about you and your doctor making the call. But, what if you and your doctor can’t agree? Can the individual overrule the doctor and demand a treatment or test? Literally, can you go into an emergency room and demand an MRI when you have a headache? In the same vein, can an individual who can afford a different level of care, such as deluxe accommodations in a hospital that would rival a New York luxury hotel, be breaking the law by going to such a facility? Would that be breaking the spirit of equal healthcare for everybody? Debates are about words. You may have noticed a subtle but important shift in terminology from the need for Universal Healthcare Reform to the

need for Health insurance reform. Healthcare Reform embodies many important facets. Healthcare is about many stakeholders including insurance companies, but it also includes doctors, hospitals, drug manufacturers, nursing homes, home health nurses, ambulance drivers and even trial lawyers. The proposals to date have seemed to be moving towards “making insurance affordable.” Most are predicated on the idea of requiring all individuals to purchase insurance if you want to live in the United States. Would it be illegal to not purchase insurance? Some have said it is like state mandates that require auto insurance to drive on the public highway. But requiring health insurance would be like requiring physical damage on the car, not liability insurance which protects other people. It is the public safety argument that creates an insurance requirement. Can the same case be made for individual health insurance? A constitutional challenge will likely be made against the mandated purchase being made from a private company. This is basically making a law requiring one citizen to buy a product from another citizen, albeit a corporate one.

“M o s t a r e predicated on the idea of requiring all individuals to purchase insurance if you want to live in the United States. Would it be illegal to not purchase i n s u r a n ce? ”

Also, can you really “keep your current insurance” if you are happy with it? If you subscribe to unlimited equal health insurance for all, you would need to require that all policies be identical, irregardless of who delivers it. Workers’ Compensation insurance essentially works this way. However, to accomplish this, the individual gives up certain legal rights as the no fault system removes the ability to sue for one’s injuries. Keeping your current insurance may mean you can have the same company, but the coverages, etc., might be changed by the government requirements. Since most non-Medicare coverage is provided, or at least made available,

Chuck Bidek, CPCU 25

through employers, the assumption is that they will continue offering coverage. Most proposals require employers to make available coverage, but they can opt out by paying an additional tax (8%). That may seem like a high number, but if healthcare insurance costs already are in excess of 8%, it would make economic business sense to pay the tax and let the government worry about it. Additionally, if all coverages are the same, any advantage the employer might have by providing health insurance may have been taken away. Some argue that private insurers serve no purpose and only add to the cost of healthcare. No question, people get peeved when authorization is required to get a particular drug or procedure. But realistically, would anybody want insurers to pay all bills presented without regard to their legitimacy, thus driving the cost of insurance up for the entire group? The national experience with Medicare and Medicaid fraud may show that insurers assist in holding the costs down, thus mitigating their percentage of the premium that is used to “handle the paperwork.” A concept that most likely will be included in virtually any plan is the idea of prohibiting the exclusion of pre-existing conditions. This is almost a given, but it might be smart to consider the underpinnings of the practice. It is unfair not just to the insurance company, but the policy holders who have paid their premiums, just like it would seem unfair to allow an individual to purchase insurance on a burning house. If preexisting conditions are eliminated, someone could go without insurance and contract a medically consuming disease such as cancer or AIDs and purchase insurance when they find out the diagnosis. If you adhere to the concept of affordable health insurance you must agree not to penalize these individuals, but rather to spread the costs to all participants in the group. Many young people do not currently purchase health insurance because they believe they are immortal, and they also they are subsidizing the older and often less healthy. Removal of all pre-existing situations would only compound that problem. Your health is a function of three variables: genetics, personal lifestyle and the environment in which you live. We can generally agree that there is currently nothing we can do as individuals about two of the three factors. The concept of changing or altering an individual’s genetic makeup is only beginning to be explored and certainly has a myriad of ethical and moral issues attached. The environmental factor can be changed, but significant changes can be handled only on a macro level. For example, air pollution can definitely affect your health. So can safe highways. Lifestyle is exactly the opposite. It is mostly up to each individual‘s preferences. Limited by the other two factors, one can decide to drink, smoke, eat a poor diet and for that matter, whether 26

to wear a seat belt. These decisions can and will affect your health. Since we can have a direct effect on at least one third of the healthcare we will consume, is it logical that all people should pay the same rates based solely on a given rating territory (environment). Of course, another question is, and just what should that territory be? Should it be a zip code, a city, a state or a nation? Much has been said about a “public option” that would provide a government owned and operated insurance company. It is said it would keep insurance companies honest. The program would presumably be staffed by government employees who would be exempt from any state education or licensing requirements. Another option that is gaining popularity is healthcare cooperatives. Now, if you wanted to start a fire insurance cooperative in your subdivision, you would be subject to capitalization and regulatory requirements to “keep it honest.” Would these healthcare cooperatives even be able to find adequate capitalization that the public would trust to garner enough participants? Or would they need exemption to conduct business without the benefit of the laws that were enacted for insurance companies to “keep them honest?” Another tough issue is, whether the public option and cooperatives would be subject to taxation by the states. If not, this would effect state budgets, as in many states insurance tax collections are in the top five revenue sources to run state governments. In addition, would the public option and the cooperatives be subject to the usual and customary costs paid by insurers, or could they mandate what they would pay hospitals and doctors? Early indications are, that they compare to the percentage of Medicare payments (i.e. 125%). It is no secret that private insurance pays not only the direct costs of service but indirectly pays for the losses sustained by underpayments of Medicare and indigent care. If private insurance disappears where will these indirect costs be covered? The slippery slope analogy applies, as the number of private insurers started to decrease these indirect costs per insurer would continue to grow. This would make the price difference between private insurers and government insurers larger and overtime eliminate private carriers altogether. A sidebar to this is the effect on Medicare, the nation’s largest government insurer. If the new program is enacted and the enrollees place additional demands on healthcare services, it is anticipated that we may have a healthcare provider shortage both in terms of professionals and hospital beds. If this would becomes a reality the question then becomes, would seniors bear the brunt of the influx? Simply stated, would unlimited equal healthcare for all lead to a detrimental effect on the largest current government health program, Medicare? If you haven’t heard the phrase, the devil is in the details, please re-read the above. u The Tennessee Insuror

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The Tennessee Insuror1 Tenn_WC Claims.indd

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The Tennessee Insuror

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3/16/09 4:12 PM

Government and Legal Affairs A Look at Red Flags Rules

Why is this important now?

by Rick Pitts, General Counsel, IIA of Indiana The Federal Trade Commission’s enactment of regulations regarding Red Flags has been a study in hype and controversy. The implementation of the regulations has been at least twice delayed. The materials below are taken directly from the Federal Trade Commission’s various websites addressing the new regulations. What are red flags? The Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration (NCUA) have issued regulations (known as the red flags rules) requiring financial institutions and creditors to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. The programs must… provide for the identification, detection, and response to patterns, practices, or specific activities – known as “red flags” – that could indicate instances of identity theft.

The Federal Trade Commission [has delayed] enforcement of the new “Red Flags Rule” until November 1, 2009, to give creditors and financial institutions more time to develop and implement written identity theft prevention programs… FTC Chairman Jon Leibowitz stated that, “Given the ongoing debate about whether Congress wrote this provision too broadly, delaying enforcement of the Red Flags Rule will allow industries and associations to share guidance with their members, provide low-risk entities an opportunity to use the template in developing their programs, and give Congress time to consider the issue further.” To whom does the law and regulations apply? The Red Flags Rules apply to “financial institutions” and “creditors” with “covered accounts.” Under the Rules, a financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any

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other entity that holds a “transaction account” belonging to a consumer. Most of these institutions are regulated by the Federal bank regulatory agencies and the NCUA. Financial institutions under the FTC’s jurisdiction include state-chartered credit unions and certain other entities that hold consumer transaction accounts. A transaction account is a deposit or other account from which the owner makes payments or transfers. Transaction accounts include checking accounts, negotiable order of withdrawal accounts, savings deposits subject to automatic transfers, and share draft accounts. A creditor is any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit. Accepting credit cards as a form of payment does not in and of itself make an entity a creditor. Creditors include finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they, too, are to be considered creditors. Most creditors, except for those regulated by the Federal bank regulatory agencies and the NCUA, come under the jurisdiction of the FTC. A covered account is an account that is used mostly for personal, family, or household purposes, and that involves multiple payments and/or transactions. Covered accounts include credit card accounts, mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, checking accounts and also savings accounts. A covered account is also an account for which there is a foreseeable risk of identity theft – for example, small business or sole proprietorship accounts. What does someone have to do to comply with the Red Flags Rules? The FTC’s guide recommends four questions to determine the risk threat: 1. Do you know your clients personally? Perhaps you’re a doctor or a lawyer on Main Street and are familiar with everyone who walks into your office. It’s unlikely that an identity thief can defraud you by impersonating someone you already know. That would place your business at low risk for identity theft. 2. Do you usually provide your services at your customers’ homes? To avoid getting caught, identity thieves tend to move around a lot. They generally don’t want people to know where they live. If you regularly provide services at your customers’ homes, your business may be at low risk for identity theft. 32

3. Has your business ever experienced an incident of identity theft? You’ve been in business for some time now, and no one has complained that someone stole his identity and used it to get products or services at your business. That might suggest your business is at low risk for identity theft. 4. Are you in a business where identity theft is uncommon? If there are no reports in the news and no talk among people in your line of work about identity theft, your industry may not now be the target of identity thieves, and your organization may be at low risk for identity theft. My business is a low risk business. How do I comply? The FTC requires the same four steps to comply, but uses some common sense suggestions: Step 1: Identifying relevant red flags. “…For instance, if you check photo IDs, a classic red flag of identity theft is an inconsistency between the person’s appearance and the information on the photo ID. If you know all of your customers personally, it’s probably not necessary to ask for a photo ID, and this red flag would not be appropriate…” Step 2: Detecting red flags. “…To detect a false ID, you might consider training your staff to look carefully at the ID to see if the person’s appearance is consistent. What if somebody notifies you that an account has been opened or used fraudulently? To make sure those notices don’t fall through the cracks, you may decide to require employees to log that kind of notice in a central place or to tell a staff member responsible for responding to red flags.” Step 3: Responding to red flags. “For example, say you’ve identified the risk of false IDs as a warning sign of identity theft, and you’ve noted that you will train your staff to look for inconsistencies in identification. Your employee has checked the photo ID and detected an inconsistency. What’s the next step? Perhaps it’s asking for another form of identification – or maybe not providing any products or services until the inconsistency has been resolved…” Step 4. Administering the program. “Get the approval of your Board of Directors, a committee of your Board, or a senior manager…designate a senior employee to administer your Program…describe how you’ll train your staff…describe how you’ll supervise your service providers…describe how you’ll update your Program...” u The Tennessee Insuror

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The Tennessee Insuror

Association Update

Arch Trimble, Jr. Honored by Local Media

The Chattanooga Times Free Press recently ran an article highlighting the retirement of Arch Trimble, Jr., after 54 years in the insurance industry. Mr. Trimble made his retirement official on September 1st, saying that, “At 81 is the time to do it.” A former state and local Insuror of the Year award winner, the retired Marine Colonel started in the industry with Hardware Mutual Insurance before founding the Arch E. Trimble Agency with his father in 1960. The Trimble Agency later merged with Huffaker and was then purchased by BB&T in 2005.

Pelt Named E&O Contact for Insurors Paul J. Pelt, Jr., who joined Insurors in January of this year after graduating from the Terry College of Business at the University of Georgia, has been named as the main E&O contact for your Association staff. Paul, whose job responsibilities also include assisting agencies with loss control products like the Swiss Re Agency Shield Program and the Virtual Risk Consultant, also serves as staff support for the RLI programs. He is currently involved the CIC designation program as well.

First Horizon Insurance Agency Acquires Sandlin Insurance Insurors member agency First Horizon Insurance Group has acquired Sandlin Insurance Agency, located in Germantown. Accounts will continue to be serviced through the agency on behalf of First Horizon by principal agent Truman Sandlin, Ph.D., CIC.

J. David Daniel Inaugurated J. David Daniel was inaugurated as the chairman of the Big “I” at the recent Big “I” Leadership Conference in New Orleans. David is President of Daniel & Eustis Insurance in Baton Rouge. Prior to his election to the Executive Committee by IIABA’s national Board of Directors in 2004, David served on the Board of Directors of the Independent Insurance Agents & Brokers of Louisiana (IIABL) for eight years and became president in 1997. David will be joining Insurors at the 116th Annual Convention in Memphis and will address the attendees on Monday morning, October 26th during the general session. Register now or get more information at www.insurors.org. u

Paul replaced Mary Williams, who is no longer with the Association. To contact him for assistance call 615.515.2602 or e-mail ppelt@insurors.org.

J. Smith Lanier & Co. Ranked #21 in 100 Largest Brokers List Business Insurance, a national risk management insurance magazine, reported on July 20, 2009 that Insurors member J. Smith Lanier & Co. is ranked #21 among the 100 largest brokerage firms in the United States. The rankings were the 2008 brokerage revenues generated by United States-based clients. In 2007, J. Smith Lanier & Co. was ranked #24. J. Smith Lanier & Co. was also ranked as the 7th largest privately owned insurance broker in the United States, which represents brokerage firms that are neither bank-owned nor publicly traded. “Our ranking as the #21 brokerage firm in the country and #7 in the private sector is an outstanding achievement,” said J. Smith Lanier & Co. Chairman and CEO, D. Gaines Lanier. “For over 140 years, J. Smith Lanier & Co. continues its strong commitment to personal service in relationships with both employees and clients.” The Tennessee Insuror

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E&O and Social Media Keep Agency E&O Concerns in Mind When Using Social Media Not a day goes by without my e-mail containing an invitation to join a social networking site. Whether used for business contacts, maintaining contact with friends and family, or to reconnect with acquaintances from years past, the use of social networking sites is rapidly increasing. According to one internet research firm, 2008 saw the use of social networking sites overtake e-mail by Internet users across the world. Much discussion has taken place on how to best harness the power of social networking for the benefit of your insurance agency. ACT and other organizations have written extensively on the power of social media to enhance agency online marketing and to generate “virtual” referrals. The focus of this article, however, is to examine the risks that agencies need to take into account when they take advantage of these opportunities to broaden their reach. I will examine the more common errors and omissions risks that can be associated with the use of social networking, along with steps you can take to mitigate those risks. If you are not familiar with social networking sites, here is a brief discussion of the most common functionalities. This is by no means all-inclusive, as the technology changes daily. Most sites

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By Sabrena Sally, CPCU

offer the ability to create a homepage following a template provided by the site. Depending on the site being accessed, the profile template may be limited to key information you wish to be known about your agency along with an uploaded photo, or it can be as robust as a site containing multiple photos, videos, and links to other sections of the site (as well as to other sites) containing additional content you have created and posted. Users of the site typically invite other users to join their community, and the invitee is free to accept or decline. Most sites also offer blogs, chat rooms, forums, and search capabilities to help locate other users based on your chosen search filters. Rules of the Site Posted privacy statements and user agreements are standard on social networking sites, and most also include a list of “do’s and don’ts” to follow when using the site. Although containing lengthy legal terminology, it is in your best interest to fully read a site’s user agreements and privacy statements before agreeing to the terms of usage. User agreements tend to be very broad in favor of the site owner, commonly giving the rights to the site to use all content posted by users, and retaining the right to remove, discard or withhold user posted information at any time. User agreements usually state that

OPEN DOOR CAN TAKE YOU TO THE

FUTURE. OR RIGHT BACK

WHERE YOU STARTED FROM.

Seizing an opportunity obviously takes foresight. But it also requires the experience, the expertise and, above all, the instinct to know where to get on and where to get off. This is why The Hanover limits product availability to help our winning agents carve our unique positions in the marketplace. And why we continually invest heavily in products and services — hook coverages and in CSR training, for example — to drive agent revenue and customer retention. It’s action like this that has enabled The Hanover to remain stable and profitable even during times of economic crisis. In fact, since January 2008, The Hanover is the only significant financial services company to be upgraded by A.M. Best, Moody’s and Standard & Poor’s. To learn more, contact one of our Tennessee leaders: Personal Lines

Kendra Schenkel, Regional Vice President (615) 517-1681 U kschenkel@hanover.com

Commercial Lines

Jerome Guiney, Regional Vice President (770) 353-6211 U jguiney@hanover.com

or visit us at http://yourbestpartner.hanover.com

Today, our financial strength is allowing us to aggressively pursue innovative investments for winning independent agents. This includes: UÊÊÊ/ Ì> Ê ÕÃi `Ê,iÜ>À`Ã UÊÊÊ À Ûi- >ÀÌÊ `Û> Ì>}i UÊÊÊ, >`Ã `iÊ ÃÃ ÃÌ> Vi]Ê/À>Ûi Ê, } ÌÊÊ > `Ê,i>ÃÃÕÀ> ViÊ* ÕÃÊ ` ÀÃi i ÌÃ UÊÊÊ Ê `i Ì ÌÞÊ Ìi}À ÌÞÊ*À }À> UÊÊÊ Ê > Vi`Ê- > ÊÊ

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Policies are underwritten by The Hanover Insurance Company and its property and casualty insurance company affiliates.

THE HANOVER. AN AGENT FOR OPPORTUNITY. AN OPPORTUNITY FOR AGENTS. 38

The Hanover Insurance Group with Eagle icon is a registered trademark of The Hanover Insurance Group, Inc. LC 09-96

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the site assumes no responsibility to monitor disputes between users, and contain hold harmless/indemnification agreements in favor of the site for damages suffered by the site as a result of content posted by a user or as a result of any actions of the user while using or misusing the site. Now, let’s assume you have read the user agreements, privacy statements, and “do’s and don’ts” of a site you have chosen to use. You are ready to sign up. But wait! Don’t hit that submit button too quickly. Instead, take some time to consider what type of errors and omissions exposures your agency may face by using the site. Overview of E&O Exposures The exposures can range from advertising, contractual liability, defamation, offering erroneous recommendations, and may even extend to antitrust issues. These are not new exposures to your agency, but the nature of social networking sites does impact errors and omissions exposures in several ways. Information entered on social networking sites is able to achieve instantaneous worldwide distribution in a matter of seconds. An electronic record is also created which can survive indefinitely. In addition, discussions taking place on these sites tend to be more casual and take place more quickly then even email communication, making it easier for a statement to be taken out of context. Let’s drill down to the most common errors and omissions exposures faced by agencies using social media. Contractual Liability The user agreement on the site most likely contains a requirement that you hold harmless and indemnify the site. The agreement at one popular site is quite broad, stating: “....you shall indemnify and hold us harmless from any damages, losses and costs related to third party claims, charges or investigations, caused by your failure to comply with this agreement, including without limitation your submission of content that violates third party rights or applicable laws, caused by any content you submit to us, or caused by any activity in which you engage through the site.” That provision in itself is amazingly broad, but it becomes even more so when you look at the definition of the site agreement. The site agreement in this particular case states that you must comply with all applicable laws, the “Do’s and Don’ts” posted on the site, the notice and take-down procedures of the site, the site privacy policy, and any other notices of the site. Loss Control Tip: • Read the user agreement, privacy statement, and “do’s and don’ts” thoroughly. Consult with your legal counsel if needed to be sure you have a full understanding of the liabilities to which your agency is agreeing.

Advertising Liability You most likely will create some type of agency home page, so let’s look next at advertising exposures. The insurance regulations in several states specifically mention Internet advertising. For example, this excerpt from NY L Circular Letter No. 5 (2001) is both specific to Internet advertising and broad in scope: “Advertisements that appear on the Internet are subject to all applicable existing statutory and regulatory guidelines and restrictions applicable to advertisements in any other medium.” It is clear that the same level of care should be given to agency advertising on social networking sites as is given to the agency’s traditional advertising. Where the line can easily be blurred, however, is when an individual agency owner or employee uses the agency name, logo, or other advertising identifier as part of their personal social networking site. Does that then constitute advertising for which the agency can be held liable? That question has yet to be settled. The agency’s exposures from advertising on these sites can be mitigated by following the same legal vetting process as is used for traditional advertising. An agency procedure should also be established that addresses to what extent employees have permission to link to the agency’s sites, or use the agency name, logo, or other advertising material on their personal sites (more on this procedure later). Loss Control Tips: • Be sure your agency advertising on the site complies with all statutory and regulatory guidelines • Establish an agency procedure addressing employee linking to agency sites or use of agency name, logo, or other advertising on their personal social networking sites. Defamation Most social networking sites feature blogs, chats or forum discussions. Participating in these discussions can present exposure to defamation, or in this case libel since the discussion is in written form. Your agency has always faced exposure to defamation from verbal discussions and written communications. On social networking sites, however, discussions taking place on blogs and in chat rooms or forums tend to be less formal, may include more opinion than fact, and tend to move quite rapidly between many parties. In fact, the popular site Twitter limits text comments to no more than 140 characters. The end result is that it is much easier to make a statement that is taken out of context. Unlike verbal discussions, comments made on the interactive features of social networking sites or in blogs that accompany online articles are captured electronically and can be stored indefinitely, further exacerbating the issue of less formality. Keeping in mind that commercial speech – speech which proposes an economic transaction – is entitled only to limited First Amendment constitutional protection, there is a real question as continued on page 50

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Company Briefs

Columbia Insurance Group Recognized As A 2009 “Super Regional” Demotech, Inc., has announced that Columbia Mutual Insurance Company has qualified as a “Super Regional” this year. Demotech is a Columbus, Ohio based financial analysis and actuarial services firm. They have reviewed over 2,700 Property and Casualty companies in 2008 and only 149 of those companies met the objective criteria to be a “Super Regional”. A list of those companies was published in the Insurance Journal on May 4, 2009. To be considered as a “Super Regional,” certain criteria that a company must meet (based on 2008 annual statement data) includes: • • •

At least $100,000,000 of policyholder surplus Direct premium written of at least $25 million Net written premium of at least $50 million

Bob Wagner, Chairman and CEO of Coulmbia, stated, “We are very pleased with this recognition and are quite proud to be included in another elite group of companies. We want to thank our dedicated agents and employees who have made this possible.”

Builders Mutual Names Lockard VP and CFO Builders Mutual Insurance Company is pleased to announce that Thomas B. Lockard has been named Vice President and CFO. Lockard is the successor to John K. Boggs who was recently promoted to President and CEO of Builders Mutual. “Although a newcomer to BMIC, Tom brings considerable insurance accounting knowledge and experience and he has added value to our company,” stated John K. Boggs, President and CEO of Builders Mutual. Lockard, who has over 20 years experience in accounting and the insurance industry, joined Builders Mutual in 2008 as the Controller, responsible for the financial reporting of the company as well as all statutory filings with the Insurance Departments.

United Fire Group Again Named to Ward’s 50 For the 17th consecutive year, Ward Group has recognized United Fire Group® as one of 50 top-performing propertycasualty insurance companies in the industry. Only two other companies have been on the list longer than us — and that’s only by one year. In addition, their subsidiary company, United Life Insurance Company, has been named to the Ward’s 50 life-health insurance companies for the fourth consecutive year. United Fire is one of only seven organizations that have affiliated companies named to both the property-casualty and life-health Ward’s 50® groups of companies this year. Ward Group has conducted a yearly analysis of the financial performance of over 3,100 property-casualty insurance companies and over 800 life-health insurance companies domiciled in the U.S. since 1991, identifying the top performers in each segment. This group is the Ward’s 50 for the year. Each company has passed all safety and consistency tests and achieved superior performance over the five years (2004-2008) analyzed. According to the press release issued by Ward Group, the

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Prior to joining Builders Mutual, Lockard was employed by Atlantic Casualty Insurance Company and served as the Financial Manager, Controller and Chief Financial Officer during his tenure. Lockard began his career as an Account Coordinator with Occidental Fire and Casualty Company and has held several other accounting positions during the course of his employment. The Tennessee Insuror

Ward’s 50 property-casualty insurance companies produced a 14.4 percent return on average equity from 2004 to 2008 compared with 9.9 percent for the property-casualty industry overall. The Ward’s 50 life-health insurance companies produced a 13.5 percent return on average equity from 2004 to 2008 compared with 6.4 percent for the life-health industry overall.

U.S. Insurance Services Introduces New Warranty Product U.S. Insurance Services recently announced a joint venture with National Auto Care (NAC). NAC is a leading provider of extended warranties for automobiles, trucks and powersport products (motorcycle, atv, jet-ski and snowmobile). This venture allows agents to offer extended warranties to their customers and prospects. Formed in 1984, NAC has remained an industry leader because of superior service, prompt claims handling and competitive rates. With over 2 million agreements sold to date, NAC continues to set the standard in the extended warranty industry. Backed with an A+ rating, NAC provides a solid reputation that consumers and agents demand. With today’s economic realities, consumers are keeping their vehicles longer than ever. As a result, drivers are now much more interested in purchasing an extended warranty realizing the major out of pocket expenses they could incur should they experience a mechanical breakdown. Interested agents have a brand new way to serve their customers and a great new way to generate substantial commissions. Warranties are available in all states with the exception of California and Virginia, and agents earn $300 for each auto or truck warranty sold and $85 for powersport warranties. For more information on how your agency can begin selling warranties, please visit U.S. Insurance Services at www.usinsurance.com and click on the agents tab. A warranty guide is available for viewing providing full details and explanation. You may also contact Blair Fox toll free at 800-874-1738 x228 or by e-mail at bfox@us-insurance.com.

Employers Launches Agent Marketing Toolbox and Redesigned Website EMPLOYERS® has launched its Agent Marketing Toolbox Web site for its appointed independent agents to simplify agentcarrier workflows and streamline marketing processes. EMPLOYERS developed the Agent Marketing Toolbox to enable easy access to customizable marketing materials, making it easy for agents to communicate workers’ compensation coverage options and value-added services to small businesses. Appointed agents now have the ability to “pull” EMPLOYERS marketing materials and create their own marketing campaigns 24/7 based on their individual needs. The introduction of the Agent Marketing Toolbox is an extension of EMPLOYERS’ focus on providing independent agents 42

with tools to effectively and efficiently reach and service larger volumes of small business accounts. The new Agent Marketing Toolbox greatly complements EMPLOYERS’ highly-automated underwriting systems, and knowledgeable, responsive underwriters, loss control experts and claims specialists, all of which are focused on streamlining processes for valued agent partners. Appointed agents can visit: www.cendixportal.com/employers and follow the instructions to create an account. EMPLOYERS also recently launched its redesigned corporate website at www.employers.com. The new site introduces an interactive environment where agents and small businesses can participate in relevant discussions and access useful information such as white papers, e-mail newsletters, resource libraries, and events calendars.

Harford Mutual Introduces New Director Harford Mutual of Bel Air, MD, recently announced that Jeffrey S. Rink has joined the Harford Mutual team as Director of Marketing and Business Development. Jeff has over twenty years of insurance experience working in various underwriting, marketing, sales, and management roles. Jeff’s extensive commercial lines experience will help Harford Mutual enhance its brand and increase market share while maintaining current profit levels. Jeff is a graduate of McDaniel College in Westminster, MD and a long time resident of Harford County, MD.

London American Names Arnold President Houston-based London American Risk Specialists Inc. has reported that Robert L. (Rob) Arnold, has joined the firm as president and partner. Arnold will be responsible for all MGA operations and the strategic direction of the company. Arnold is a 30-year veteran of the industry and has previously held executive positions with W.R. Berkley, Elton George & Co., and recently served as president of Myron Steves. He has been very active in industry affairs during his career and has served on the board of the Texas Surplus Lines Association, as president of the Texas Chapter of CICs, and as a board member of the Houston Independent Insurance Agents Association. Arnold has extensive personal and commercial lines experience within the specialty segment of the insurance business. His career has included retail, wholesale, Lloyd’s of London, binding authority, brokerage, transportation and insurance company experience.

Progressive Names Barone as Agency Business National Distribution Leader Karen Barone has been named Progressive’s National DistribuThe Tennessee Insuror

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tion Leader for its Agency Business. Progressive is the largest writer of auto insurance through independent agents in the country based on premiums written. Barone will lead Progressive’s efforts to help its more than 30,000 independent agencies profitably grow their businesses. Barone’s new responsibilities include maintaining and advancing Progressive’s leadership role in agent technology which aims to make it easier for agents to sell and service policies. She will also lead Progressive’s sales organization which helps agents develop marketing plans to win new customers and retain existing ones in an increasingly competitive marketplace.

FCCI Receives Workplace Recognition Sarasota, FL-based FCCI Insurance Group was recently recognized for its workplace development in two diverse age group categories. First, the company was recognized by Florida Trend magazine for its ability to integrate Generation Y workers under 30 with its current staff. In addition, FCCI was recognized by the AARP as being a 2009 “Best Employer for Workers Over 50.” FCCI offers flexible work schedules, fitness classes and considerable training opportunities to make sure all of its employees feel at home.

ACUITY Expands Its Transportation Market ACUITY has expanded opportunities in the transportation mar-

ket for Independent Agents by introducing two new programs for trucking risks. For agents, the biggest change is ACUITY’s willingness to write Workers’ Compensation on long-haul truckers, defined as accounts that exceed a 200-mile radius, as long as they generally operate within the insurer’s 18-state operating territory. The second change is the introduction of a new Truckers Enhancement Endorsement, designed to provide a number of specialized coverages targeted to the unique needs of this class. Long-haul truckers present different underwriting challenges and opportunities than local and intermediate haulers, but ACUITY brings disciplined underwriting, effective loss control, and proactive account management capabilities to the table. ACUITY’s new Truckers’ Enhancement Endorsement features over two dozen new coverages for truckers at a competitive price. Rates are based per unit, with discounted rates available for fleets of more than 20 units. The premium is divided among liability, comprehensive, and collision, so that insureds pay only for the coverages that apply to each individual unit.

Montgomery Wins Award From IIANC YAC Montgomery Insurance, a Liberty Mutual Agency Markets regional company, has won the Independent Insurance Agents of North Carolina (IIANC) Young Agents Company of the Year

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Hybrid cars? Hover cars? Who knows what lies on the road ahead? At Travelers, we’re working to identify changes in the world and to make sure your customers’ policies stay in-synch. Do your forward-thinking customers want to drive a hybrid car? We help you reward them with a discount. Is your small business client concerned about identity theft? We’ll suggest the latest solutions. Contact Travelers today. After all, the world is evolving. We think insurance should, too. ©2008 The Travelers Companies, Inc. All rights reserved. The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183 A discount of up to 10 percent applies only to certain coverages. The discount may not be available in all states and is subject to individual eligibility.

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award for the second consecutive year. Presented during the recent Young Agents Conference in Myrtle Beach, South Carolina, the award recognizes the company that rates highest among IIANC member young agents in the following categories: market availability; product delivery; claims settlement; marketing; product development; agency contracts; and overall agency-company relations.

Kentucky National Enters Tennessee Market Kentucky National Insurance Company (KNIC), a Lexingtonbased property and casualty insurance company, will begin offering insurance to customers in Tennessee beginning 6/1/09. “We’re excited to offer Kentucky National insurance policies to our friends in Tennessee”, said President Enoch Roberts. “Our company specializes in quality property and casualty insurance products at competitive prices,” continued Roberts. KNIC will provide auto, homeowners, boat, renters, manufac-

tured home, dwelling fire, and excess liability insurance. The insurance will be sold exclusively through Tennessee Independent Insurance Agents. KNIC is owned by First Kentucky Insurance LLC, a Lexingtonbased company owned by Terry E. Forcht of Corbin, Kentucky.

Philadelphia Adds Two Niche Products Philadelphia Insurance has recently rolled out two new products, Pest Control and Security Services “The Guardian.” Providing one of the broadest coverage forms in the market, these products offer comprehensive coverage for both niches. Pest control eligible classes include operators specializing in residential, commercial, and industrial buildings who have a minimum of four years in the industry and a workforce of less than 50 employees. Security Service eligible classes include armed and unarmed security services, alarm monitoring and installation services, security consultants, armored car services and personal security for executives. u

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Check Marks the Spot! Utilizing Questionnaires and Coverage Checklists to Document Looking at the scope of an insurance agent’s job, I am constantly amazed at the knowledge and understanding of insurance that it takes to offer top-notch service to a very diverse group of customers. One day it is meeting to discuss the medical malpractice needs of a doctor, the next making sure a father is comfortable with the limits of his personal umbrella policy. Let’s face it, identifying the risk exposures of customers can be difficult when dealing with such diverse operations, activities, assets, and buying tendencies of customers. A couple of tools that agents can benefit from using are industry specific exposure questionnaires and coverage checklists.

aware of that.

Document, Document Using questionnaires and coverage checklists provides thorough documentation for customer files. Too often in E&O claims it is the customer’s word against the agent’s. This makes it difficult or almost impossible for E&O carriers to make a solid defense on the agent’s behalf. Agencies also experience staff turnover which may limit the ability to defend E&O claims if there is not a well documented file. Coverage checklists have areas beside each coverage description allowing for the agent to check one of the following: no exposure exists, recommended and accepted, or recommended and rejected. They also provide an area for the customer to initial next to any coverages that are rejected and for signatures at the bottom of the checklist.

Analyze Customer Exposure

Not only can questionnaires simplify and focus the exposure analysis but they are useful tools in controlling potential E&O claims involving failure to recommend coverage and other risk assessment errors. Using the questionnaire gives agents a track to run on. When they sit with a customer during the risk assessment and learning process, the questionnaire is their guide. Questionnaires “remember” all the questions an agent needs to ask to get all the information regarding the risk. It does not matter if it is a personal or commercial lines customer. As you identify exposures for potential customers, find out if their current coverage protects against these exposures and if it does not, explain why this coverage is important. This will help the customer understand existing exposures and allow for clarification of coverage needs. The customer will be impressed with your level of professionalism and comfortable with your insurance knowledge. If you identify a unique exposure which may be difficult to insure, it is important that you make the customer 48

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It may also be a good idea to outline on the coverage checklist any responsibilities that the customer needs to perform before coverage can be bound. Keeping this completed and signed checklist and the exposure questionnaire in the customer’s file can prove to be an invaluable defense tool should an E&O claim be made.

Grow the Pie A final benefit of using exposure questionnaires and coverage checklists is the ability to grow your agency’s book of business. Using these tools increases your agency’s ability to identify additional exposures and sell additional coverage. During the exposure analysis process with the customer you may uncover and explain exposures that they had never contemplated but want to insure. In turn, you are growing your book of business.

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With so many types of insurance coverage and so many different policy nuances, coupled with the diverse group of customers that insurance agents serve, exposure questionnaires and coverage checklists are invaluable to agents. Reducing your agency’s E&O exposures for failure to recommend or identify coverage needed, better documentation in the customers file, and an opportunity to facilitate agency growth are all benefits of using exposure questionnaires and coverage checklists. If check doesn’t mark the spot for all of your agency’s employees, it should.

Use the VRC One new way to keep those E&O exposures down is to utilize the Big "I" Virtual Risk Consultant (VRC). This tool, available exclusively to Big "I" members, is a great resource for agency growth and risk control. Take a look at the features listed in the table to the right or contact Paul Pelt at the Insurors office by calling 615.515.2602 or e-mailing him at ppelt@ insurors.org. u

Introducing the Big “I” Virtual Risk Consultant (AVAILABLE EXCLUSIVELY TO BIG “I” MEMBERS)

Are you looking for affordable industry specific-risk assessment tools and checklists to increase agency growth and reduce your E&O exposure? The Big “I” Virtual Risk Consultant (VRC) is a web-based resource just introduced and available exclusively to Big “I” members that will:

P P

Improve the knowledge and professionalism of agency staff, creating opportunities for growth. Provide agency staff with tools that will allow them to better understand the coverage needs of customers and assist them in meeting those needs, all while offering valuable file documentation should an E&O claim arise. Provide promotional content to more effectively market the agency’s services and demonstrate knowledge. Avoid E&O claims relating to failure to identify customer exposure and failure to offer proper coverage.

Products similar to the VRC can cost thousands of dollars. Big “I” members can subscribe to the VRC today at the incredibly low cost listed below: Agency Size (per state):

Annual Subscription Price:

4-Year Prepaid Subscription Price:

Up to 15 users per agency

$250

$750

> 15 users per agency

$500

$1,500

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To learn more, visit www.guard.com/apply OR call 1-800-673-2465, ext. 4567. The Tennessee Insuror

A- “Excellent” A.M. Best Rating

continued from page 39 to the level of First Amendment protection business representatives will receive when they write or respond to a blog. The answer is not yet clear. As this area continues to develop, you would be well served to consult with legal counsel experienced in First Amendment law for guidance on creating the agency’s policy regarding the content you will permit on blogs on your agency’s behalf. Loss Control Tip: • Consult with qualified legal counsel for guidance on the agency’s policy on blogging. Privacy Issues Closely tied to defamation is public disclosure of private facts, which occurs when someone reveals information that is not of public concern, and the disclosure of the information would be offensive to a reasonable person. The interactive spaces on social networking sites are not secure spaces for discussing personally identifiable information. Agency Procedures for Social Web Use Agency procedures for social networking should require employees to keep their discussions professional and they should distinguish between statements of fact versus those of opinion. Comments that can be construed as leading or participating in attacks on either individuals or businesses should be avoided. Employees should limit their focus to a generalized discussion of an insurance topic. When a discussion becomes specific as to an identifiable risk or individual, it is no longer appropriate for an interactive space, and should be moved offline. Once moved offline, a discussion specific to an identifiable risk or individual should then move into the agency’s established workflow process. This provides the standard servicing and documentation that would occur had this discussion taken place in person, via phone or within email. Loss Control Tip: • Establish written agency procedures addressing employee use of social networking sites, including: • Who within the agency has permission to participate on behalf of the agency • Define acceptable behavior (professional, fact versus opinion, no leading or participating in attacks on individuals or businesses) • Employee sites should make clear they reflect their own views and not those of the agency • Identify when a discussion should be moved offline and into agency workflow • State the consequences of non-compliance. Incorrect Advice Agencies face exposure every day when rendering or failing to render professional services. Operating in the virtual world of the 50

social web is no exception. Whether it is the advertising of agency services provided as part of the agency home page or comments made in a chat area discussion, the standard of care in providing professional services is no less than what exists in more traditional venues. The standard disclaimers used on your agency’s voice mail, email, and website also should be used on social networking sites. The same agency procedures your staff follows regarding risk analysis, recommendations, and documentation also apply to all content and discussions on social networking sites. As mentioned above, the interactive features of social networks do provide unique challenges. The written procedures your agency establishes to address social networking will not only guide agency staff behavior while using these sites, but will also help protect your agency against allegations of errors and omissions. Loss Control Tips: • Use standard disclaimers such as those used in voice mail, email, and on website • Be clear in the agency’s procedures that established processes and workflows apply to all discussions and service focused on an identifiable risk or individual or business generated through the social network site. Armed with an awareness of the main errors and omissions exposures that can arise from use of social networking sites, you are almost ready to take advantage of the opportunities presented while still protecting your agency against unexpected exposures. But before getting started, give careful thought to what your goals are in using these tools. Do you plan to use sites such as Facebook or LinkedIn more as another venue in which to advertise your agency? Or, are you considering jumping in with both feet and actively participating in or running an interactive discussion to generate new “fans” who can become prospects? Once you have decided on your goals, consult with qualified legal counsel. By following the advice of qualified counsel that is specific to your planned use of these sites, and applying the loss control tips I just discussed, you will be ready to enjoy all the benefits of social networking with the peace of mind of knowing you have taken steps to mitigate the risks. This article is intended only for educational or illustrative purposes and should not be construed to communicate legal or professional advice. You should consult legal or other professionals with respect to any specific questions you may have. Further, the statements and/or opinions contained are those only of the author and do not constitute and should not be construed to constitute any statement, opinion or position of Swiss Re. About the Author Sabrena Sally, CPCU is Senior Vice President of Westport Insurance Corporation, a Swiss Re company, who manages the Big “I” Agency Professional Liability Program. Sabrena can be reached at sabrena_sally@swissre.com. Sabrena produced this article for the Agents Council for Technology (ACT). This article reflects the views of the author and should not be construed as an official ACT statement. u The Tennessee Insuror

S E C U R I T Y

he National Security Group has always been committed to helping others feel secure in times of need, and we’ve been doing just that for over sixty years. Our relationship with our policyholders is only equaled by our relationship with our agents, providing them with a partnership profit sharing program and an awardwinning web site that enables 24/7 realtime policy info, fast online quotes, and endorsement and policy dec page printing to name a few. Talk with us today and discover why thousands of policyholders depend on us to insure their world. Call 1-800-239-2358 or visit us on the web at www.nationalsecuritygroup.com. ;n\ccè^ =ì\ C`d`k\[ ?fd\fne\ij DfY`c\ ?fd\fne\ij MXZXek ;n\ccè^ G\ijfeXc 8lkfdfY`c\ GXike\ij_`g GifÔ k J_Xiè^

The Tennessee Insuror

NOW E! L AVAILAaBnt Vac g Dwellin

Working With You Working For You “Thanks for the business”

“I have been representing National Lloyds Insurance Company for the past 18 years. The company is “A” rated and has an outstanding tract record for reasonable rates, top notch underwriters and an excellent support staff. Let me not forget a fast and reliable claims department. Their internet program is easy to quote, bind and issuance of coverage within minutes. Tracking of your commissions, cancellations, payments are at your finger tips. The company has an excellent profit sharing program geared only to production and loss ratio.

“National Lloyds is the most stable company in our agency. That stability, combined with ease of use and the best compensation plan of any carrier in our agency, makes them our company of choice!”

I have never regretted representing this outstanding insurance company.” Tom Stogner, President Stogner & Associates Insurance Agency Dallas, Texas

Rick Guest Guest Insurance Agency Plano, Texas

Service Relationship Dependability

“We’ve used National Lloyds for years. They’re great, down to earth people, and are extremely easy to work with.” Richard Keltner Keltner Insurance, Inc. Memphis, Tennessee

“Within a span of 5 weeks, major storm damage occurred in both cities where our branch offices are located... We were so pleased with the process of reporting claims on the National Lloyds website. With a few keystrokes the claim was filed. We almost immediately received a confirmation that the claim had been assigned. Quick, Easy, and Efficient!” Sharon Pollan, ACSR, CISR Citizens Insurance Services Abilene, Texas

Serving the Independent Agent since 1948

800.749.6419

WWW.NATLLOYDS.COM

Member Tips

Get the Most From Your Time in the Exhibit Hall

by Daniel Smith, Director of Communications

It’s Big. It’s Powerful. AND IT’S JUST ARRIVED. At Truckers Insurance Associates, exceptional customer service is more than a goal. It’s a promise we’ve delivered on every day for the last 65 years. Truckers now

The Insurors trade show is the largest exhibit hall for independent agents in Tennessee, and one of the largest in the South. This year over 50 companies will be showcasing products and services with agents in mind. So how can you be sure to get the most out of your trade show experience? Take a look at some of these helpful tips to maximize your exhibit hall day: Prioritize Before you even enter the Exhibit Hall on Sunday, the guide inserted in this issue of the magazine is your key to prioritizing your time. Figure out a strategy of what booths you want to be sure to attend, and then work your way around the room with those as your main stops. Don’t Get Stuck

and Non-Fleet Trucking, Public Auto and

Even if you find one exhibitor who really peaks your interest, try not to spend all your time at their booth. You may miss out on another opportunity that is even better.

Business Auto in your area — along with

Network

offers the full Northland program of Fleet

options from companies such as AESIC, Carolina Casualty, Zurich/Empire, Maxum Casualty, The Hartford and Dakota Truck Underwriters. So, check out what Truckers can do for you today. Get complete details on coverage territories and our ever-expanding offerings when you visit truckers-insurance.com/partner or call an Account Manager at 800-652-9515. WE DELIVER MORE

Don’t just talk to someone at a booth and then move on to the next stop, trade business cards or other info and consider setting up follow up appointments for the exhibitors that you are most interested in. There are also networking opportunities on Sunday and Monday night where you may be able to reconnect with these potential business partners. Try Something New Once you have visited your main priority booths, consider stopping by a few that you don’t recognize, you never know what you might find to help your agency. Visit What’s Left With a full five and a half hours of showtime, they isn’t any reason that you can’t make it to all the booths if you want to have the full experience. Your ticket insert (the perforated card inside the exhibitor guide) can help you keep track of which booths you have already visited.

www.truckers-insurance.com/partner 800.652.9515

So, keeping all this in mind, you should be ready to plan a successful day in the Exhibit Hall, and be ready to see your agency grow as a result! u

Page

www.acuity.com www.alliedinsurance.com www.amerisafe.com www.amerisure.com www.arlingtonroe.com www.auto-owners.com www.bsrins.com www.bituminousinsurance.com www.bcbst.com www.buildersmutual.com www.centraliains.com www.ciusa.com www.crumpins.com www.emcinsurance.com www.fcci-group.com www.financialpsi.com www.firstcomp.com www.generalcasualty.com www.grangeinsurance.com www.guard.com www.hanover.com www.hapeo.com www.harfordmutual.com www.haulersinsurance.com www.iaatn.com www.ihstn.com www.insbanktn.com www.jjins.com www.lemicins.com www.londonamericantx.com www.minicoinsurance.com www.montgomery-ins.com www.natlloyds.com www.nationalsecuritygroup.com www.nai1983.com www.pennnationalinsurance.com www.preferredcomp.com www.umbrellaprogram.com www.progressiveagent.com www.scui.com www.summitholdings.com www.gotapco.com www.taagtn.com www.tnund.com www.travelers.com www.truckers-insurance.com/partner

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08/25/2008

(800) 242 - 7666 (352) 384 - 4186 (866) 719 - 0267 (800) 257 - 1900 (800) 878 - 9891 (517) 323 - 1200 (800) 768 - 7475 (800) 342 - 5786 (865) 588 – 4612 (800) 809 - 4859 (800) 467 - 2600 (615) 896 - 6133 (800) 262 - 7867 (800) 239 - 2005 (800) 226 - 3224 (800) 456 - 5191 (888) 500 - 3344 (800) 334 – 0241 (800) 422 – 0550 (800) 673 - 2465 (615) 517 - 1681 (800) 845 - 5695 (800) 638 - 3669 (800) 346 - 6071 (931) 526 - 9093 (866) 661 - 6500 (866) 866 - 2265 (931) 704 - 0810 (225) 201 - 0107 (713) 977 - 7726 (800) 447 - 8383 (800) 613 - 4170 (800) 749 - 6419 (800) 239 - 2358 x 267 (800) 824 - 1740 (800) 395 - 0518 (888) 922 - 2258 (888) 549 - 2465 (877) 776 - 2436 (800) 824 - 4403 (800) 971 - 2667 (800) 334 - 5579 (888) 320 - 0294 (615) 791 - 1400 (615) 660 - 6015 (800) 652 - 9515

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Date Produced:

ACUITY Allied Insurance Amerisafe Amerisure Insurance Arlington/Roe & Co. Auto-Owners Insurance Bailey Special Risks, Inc. Bituminous Insurance BlueCross BlueShield of Tennessee Builders Mutual Centralia + South & Western Consumers Insurance Crump EMC Insurance FCCI Insurance Group Financial PSI FirstComp Insurance General Casualty Companies Grange Insurance Companies Guard Insurance Group Hanover Insurance Company Harbor America East Harford Mutual Insurance Company Haulers Insurance Company, Inc. Independent Agents Alliance of Tennessee Individual HealthCare Specialists InsBank/Finworth Mortgage Johnson & Johnson Lemic Insurance Company London American Risk Specialists MiniCo Insurance Montgomery Insurance/Safeco Insurance National Lloyds Insurance Company National Security Group North Alabama Insurance Penn National Insurance Preferred Comp of Tennessee Preferred Property Programs Progressive Southern Cross Underwriters Summit Holdings Tapco Underwriters Tennessee Agents Alliance Group Tennessee Underwriters, Inc. Travelers Insurance Truckers Insurance

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Big Listeners Listening is big at our company. We listened to our agents and developed simple, real-time automation for quoting personal auto and home. We listened to our commercial lines agents and developed BOP, Inland Marine and Commercial Auto products that offer comprehensive coverage at a great price. And, our agents tell us that when it comes to considering an unusual account, weâ&#x20AC;&#x2122;ll listen and evaluate all the merits of a risk before making a decision.

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