The Tennessee Insuror March/April 17

THE TENNESSEE

INSUROR March/April 2017

Vol. 28 No. 2

www.insurors.org

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Why Your Online Brand Matters

Agency M&A: From the Seller Side

Remote Workers: Are They a Key to Agency Performance?

Agents on the Hill Insurance Agents Play a Key Role in Our State Legislation

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2Insurance plans protected U.S. Patent No. 7,908,157.

The Tennessee Insuror

contents

THE TENNESSEE

INSUROR Vol. XXVIII, Number 2 March/April 2017

features

Phone (615) 385-1898 Toll Free: 1-800-264-1898 Email: info@insurors.org Editor: Charles T. Bidek, CPCU Publisher: Daniel D. Smith Jr., CAE

4 Agents on the Hill INSURORS OFFICERS

President ................................................. John McInturff III, ARM Immediate Past President .. Christie Reeves, CIC, CPCU, CPIW IIABA National Director ......................................... Lou Moran III VP, Region I and President Elect ..................... Chris Allison, CIC Vice President, Region II ................................................... Joe Hunt Vice Preisdent, Region III .......................................... Bob McIntire Treasurer .............................................. Battle Bagley III, CIC, CPA Secretary ................................................................. Steve Copeland Director, Region I ....................................................... Portis Tanner Director, Region I ............................................ Stephen Masterson Director, Region I .................................................... Tommy Allmon Director, Region II ....................................................... Chip Fridrich Director, Region II ................................. Matt Swallows, CIC, CRM Director, Region II .................................. Christy Jones, CISR, CAPI Director, Region III ............................................................ Tim Witt Director, Region III .................... Kym Clevenger, CPCU, CACW Director, Region III .................................................. Eric Campbell Young Agents Chairperson ............................. Tim Treadwell V

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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.

Insurance Agents Play a Key Role in State Legislation

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Why Your Online Brand Matters

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Agency M&A: From the Seller Side

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Remote Workers: Are They a Key to Agency Performance?

It's Already Affecting Your Agency Whether You Know it or Not Getting the Most Value From the Sale of Your Agency

Daniel Learns About Ins.: Joining the Yacht Club

departments 21

From Your President

Check Out All of Our "Stuff"

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From Your National Director

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From Your CEO

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Education Calendar

31

Government and Legal Affairs

Up in the Air

And the WInner is...

The "Independent Contractor" Issue

39 Program Spotlight

Titan Web Marketing Solutions INSURORS OF TENNESSEE 2500 21st Avenue South, Suite 200 Nashville, TN 37212-0539 www.insurors.org

51 Meetings 53

Member Tips

Mythbusting: Tips for PUPs

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Insurors Young Agents (from L-R) Bert McKeand, Reed Loeffel, Tim Treadwell V and Chase Miller join Insurors CEO Chuck Bidek to serve lunch at the Tennessee Legislative Plaza

Agents on the Hill

Insurance Agents Play a Key Role in Our State Legislation

Having insurance agents in the Tennessee General Assembly is critical to the success of our Government Affairs efforts.

They understand the concerns of our members because they face many of the same issues in their careers. When we want to discuss issues affecting our industry, these are some of the first legislators we contact. There are currently ten members of the Tennessee House of Representatives, and three members of the State Senate, that are also licensed insurance agents.

Among those, six are also Insurors members, including new first-term Representatives Michael Curcio and Ron Gant:

Tennessee House of Representatives Members Rep. Michael Curcio Republican - Dickson District 69 - Hickman and part of Maury and Dickson Counties Committees: Vice Chair of the Criminal Justice Committee; Member of Criminal Justice Subcommittee and Insurance & Banking Committee Rep. Curcio is in his first year in office, and works as a Benefits Consultant with Insurors member Benefits, Inc. in Dickson. He is a board member of Leadership Middle Tennessee, the Middle Tennessee Council of Boy Scouts of America and the Clement Railroad Hotel Museum.

He also serves on the City of Dickson Downtown Committee as well as on the City of Dickson Board of Zoning Appeals.

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Rep. Jimmy Eldridge Republican - Jackson District 73 - Part of Madison County Committees: Chair of the Consumer & Human Resources Committee; Member of Local Government Committee; Calendar and Rules Committee; General Sub-committee of Consumer & Human Resources Rep. Eldridge is beginning his fifteenth year in office and is a former partner of The Allison Insurance Group in Jackson, which is a member of Insurors. He has previously served as the Assistant Minority Floor Leader for the 103rd General Assembly, the Republican Caucus Vice Chair for the 104th through 105th General Assemblies, and on the Madison County Commission from 2002 to the present.

Rep. Ron Gant Republican - Rossville District 94 - Fayette, McNairy and part of Hardeman County Committees: Member of Insurance & Banking Committee; Health Committee; Calendar & Rules Committee and Insurance & Banking Subcommittee Rep. Gant is in his first year in office, and is the principal agent of Insurors member Collierville Insurance. He is the former chair of the School Board of Rossville Christian and the Fayette County Republican Party. He also The Tennessee Insuror

formerly served as the Fayette County Commissioner and on the board of the Oakland Chamber of Commerce.

Chambers of Commerce and chairs the Tennessee Legislative Prayer Caucus.

Rep. Roger Kane Republican - Knoxville District 89 - Part of Knox County Committees: Chair of the Education Instruction & Programs Subcommittee; Member of Education Instruction & Programs Committee; and Education Administration & Planning Committee Rep. Kane is beginning his fifth year in office, and operates a Farmers Insurance office in the Knoxville area. He is also an educator with Kaplan Financial on Agent Licensing and has been active in the Knoxville Chamber of Commerce.

Rep. Dennis Powers Republican - Jacksboro District 36 - Campbell and Union Counties Committees: Member of Insurance & Banking Committee; Business & Utilities Committee and Insurance & Banking Subcommittee Rep. Powers is beginning his seventh year in office. He formerly owned an Allstate Insurance agency in Jacksboro for several years and now operates a Nationwide agency in La Follette. He also serves as the Majority Caucus Vice Chairman.

Rep. Kelly Keisling Republican - Byrdstown District 38 - Clay, Jackson, Pickett, Scott & Part of Anderson Counties Committees: Chair of Insurance & Banking subcommittee; Member of Transportation Committee and Insurance & Banking Committee Rep. Keisling is beginning his seventh year in office. He is the president of Keisling Insurance Agency in Byrdstown, a member of Insurors, which he founded in 1985. He previously served as a Pickett County Executive from 1994-1998.

Rep. Charles Sargent Republican - Franklin District 61 - Part of Williamson County Committees: Chairman of the Finance, Ways & Means Committee; Member of Insurance & Banking Committee; Calendar and Rules Committee; Finance, Ways and Means Subcommittee and Joint Fiscal Review Committee Rep. Sargent is beginning his twenty first year in office. He is a State Farm insurance agent in Nashville. He formerly served on the Williamson County Commission from 1990-1996 and the Planning Commission from 1989-1997.

Rep. Bo Mitchell Democrat - Nashville District 50 - Part of Davidson County Committees: Member of Agriculture & Natural Resources Committee; Government Operations Committee; Transportation Committee; Agriculture and Natural Resources Subcommittee; Joint Government Operations Committee and Joint Government Operations Commerce, Labor, Transportation and Agriculture Subcommittee Rep. Mitchell is beginning his fifth year in office. He works as a Director of Sales and Employee Benefits in Nashville. He is a former member of the Nashville Metro Council Representing District 35.

Rep. Ron Travis Republican - Dayton District 31 — Bledsoe, Roane, Sequatchie and Rhea Counties Committees: Chair of Insurance & Banking Committee; Member of Calendar & Rules Committee; Transportation Committee; Insurance & Banking Subcommittee and Joint Fiscal Review Committee Rep. Travis is beginning his fifth year in office and is a Nationwide Insurance Agent who has earned his LUTCF designation.

He also serves on the Executive Board of the Southeast Tennessee Rural Planning Organization and the board of the National Association of Christian Athletes.

Rep. Mark Pody Republican - Lebanon District 46 - Cannon, Trousdale and Part of Wilson Counties Committees: Vice-Chair of Consumer and Human Resources Committee; Member of Insurance & Banking Committee and Consumer & Human Resources Subcommittee Rep. Pody is beginning his seventh year in office. He currently owns and operates a Nationwide insurance agency in Murfreesboro and is active in several The Tennessee Insuror

Tennessee Senate Members Sen. Jack Johnson Republican - Franklin District 23 - Williamson County Committees: Chair of the Commerce & Labor Committee; Member of the State & Local Government Committee and the Capitol Commission Sen. Johnson is beginning his eleventh year in office. He is a Senior Vice President and financial advisor for Pinnacle Financial Partners in 5

Franklin and is a licensed life insurance agent. He serves on the State Capitol Commission and is a former Chairman of the Senate Commerce, Labor and Agricultural Committee.

He is active in the Brentwood-Cool Springs, Spring Hill and Williamson-Franklin Chambers of Commerce as well as the NFIB, NRA and Aircraft Owners and Pilots Association. He was named 2014 Legislator of the Year by the National Association of Mutual Insurance Companies.

Sen. Bill Ketron Republican - Murfreesboro District 13 - Part of Rutherford County Committees: Member of Finance, Ways & Means Committee; State & Local Government Committee; Commerce and Labor Committee and Joint Fiscal Review Committee Sen. Ketron is beginning his fifteenth year in office and is the Republican Caucus Chair. He owns Universal International Insurance in Murfreesboro, a member of Insurors. He is a former recipient of our Association’s Insuror of the Year award, receiving the honor in 2007. He is also a former Commissioner for Rutherford County and was the co-founder and first president of the MTSU Blue Raider Athletic Association.

Sen. Jim Tracy Republican - Shelbyville District 14 - Bedford, Lincoln, Marshall, Moore and parts of Rutherford Counties Committees: Member of Senate Transportation & Safety Committee; Commerce and Labor Committee; Education Committee; Joint Committee, Council for Pensions and Insurance and Tennessee Advisory Commission on Intergovernmental Relations Sen. Tracy is beginning his thirteenth year in office and is the Speaker Pro Tempore. He is a former Nationwide agent and operated Jim Tracy Insurance in Shelbyville and Murfreesboro for over 25 years. He also works as a college basketball official for the NCAA and is a member of the Governor’s Council on Physical Fitness. He is active in the Rutherford and Bedford County Chambers of Commerce.

Why it is So Important Having insurance agents in the General Assembly, especially some of our own members, has a very positive impact for our Association. These legislators have a first-hand understanding of industry issues, and representation like that is crucial. With issues like ACA and Individual Health Insurance fees, Workers' Compensation Opt-Out legislation, Professional Privilege taxes and Autonomous Vehicles continuing to surface, our relationships with the General Assembly members are more critical than ever.

Just take a look at some of the legislation we followed this year, and you will find these legislators frequently involved.

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Why Your Online Brand Matters It's Already Affecting Your Agency Whether You Know it or Not

• • •

"Why do I need a website for my agency?"

"I don't want the type of business you get online anyway."

"My clients know me, they don't need to find me online."

The above are actual quotes from Insurors members about the importance of having a good "web presence" for their agency. What's a web presence? It's your online brand – your website, your social media, your carrier listings and your customer reviews all wrapped up into one consistent strategy.

Why does it matter? There are so many reasons, but let me try to highlight a few of the most important ones.

Why Do You Need a Website?

Let's address the first comment I mentioned, "Why do I need a website for my agency?" You have probably heard all the statistics, but let's look at one of the most crucial ones. Around 81% of consumers begin their search for insurance online.

Now let's dissect that a little further. That number doesn't mean that all these people buy their insurance online. But it does mean that they are researching options online. If your web presence does not include a strategy, much less a website, you are missing out on a segment of business.

"All insurance agents must have a website. A functional, effective, and results-oriented website is the core of any digital marketing plan," says Cash Miller, President of Insurors endorsed partner Titan Web Marketing Solutions. "Gone are the days of consumers relying solely on the suggestions of friends and family. As consumers in the digital age, we thoroughly research before making a purchase."

When people search for insurance online, they typically enter a location and/or a specific type of insurance. So, let's try an exercise. Do a Google search for "insurance" along with your town or your agency's niche. Where are you on the list? What pulls up for your agency? Are you happy with what you see?

Are your competitors all listed ahead of you? If you're not happy with what you see, maybe it's time to work on your web presence strategy.

Don't Want the Type of Business You Get Online?

A recent Deloitte study shows that 51% of business owners are willing to address their commercial insurance needs online. Are business owners part of your target market? Because this survey showed that not only are these business owners looking for insurance online, they are even willing to complete the transaction online. Is that business you're willing to 8

give up? Because not having a strategy for your online brand can lead to you losing new business, and renewal business won't be far behind.

But that won't happen right away, so why worry? Well, as you may remember, the direct sales channel only accounted for about 14% of the U.S. auto insurance market in 1995. In 2012, that number doubled to over 28%. I can promise you that online insurance sales will not take as long to affect your business.

All Your Clients Know You Already. That's Great, Right?

Even if you aren't a heavy user of the internet, you probably have some interaction with it. Do you have a Facebook account? Ever use the apps on your phone? Do you utilize something like mobile or online banking? Chances are you interact with businesses you use yourself already. Ever have a bad experience with one of those businesses online? How did it change the perception of the business or the people you know there?

Your online brand is part of your agency brand and your personal brand. Like to talk about politics or post pictures of your pet online? Chances are you have clients that do know you, and this may impact their thoughts about you and your business. Have an old employee listing on your website? What are those former employees saying about you in the community?

These are just some of the ways your online brand could affect you, especially with the clients that know you.

And what about the other types of advertising or branding your agency does? Do you have signs, billboards, brochures or other items that include your website?

"On top of having a professional image online, a website is also the epicenter of marketing campaigns," says Titan Web Marketing Solutions Vice President Adam Faragalli. "Whether you have a traditional campaign or decide to launch a social media advertising campaign or a pay-per-click campaign on Google, all of your efforts will drive potential customers back to one specific place – your website. With this in mind, it is in your best interest to have a top-notch website from the start."

So How Do You Build an Online Brand Strategy?

We've established that this matters, so how do you begin to prepare (or repair) your agency's online brand? We have concontinued on page 48 The Tennessee Insuror

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Agency M&A: From the Seller Side Getting the Most Value from the Sale of Your Agency Last year I penned an article on the topic of agency purchases and related finance. That article was a buy-side piece focusing on purchase economics, risk assessment and structuring related debt. While my perspective on the topic is from the view of a bank lender, over the years I have made mental notes regarding the outcomes of various agency buyouts.

Some of the more compelling anecdotes might be of interest to agents contemplating a sale.

Show Me the Money Like Cuba Gooding’s character in the movie Jerry Maguire, when agents decide to sell they typically seek to maximize on the opportunity. But deals are structured in different ways, and it may not be as simple as an all-cash deal. Most agency buyouts include some portion of consideration to come in the form of performance payments. This is an attempt by buyers to align sellers’ interests with their own.

I have seen a fairly wide range of consideration based on renewals, but most often it is in the 15% to 30% range. Another factor in considering a sale is the form of currency. Cash is great if you can get it, but sometimes an offer comes in the form of the purchaser’s stock. This is also a purchaser’s attempt to align a seller’s interest with their own. In this case sellers need to consider the relative liquidity of the stock – is it publicly traded? Is share trading volume sufficient to convert to cash if needed? If it is relatively illiquid, its value should be discounted by the seller for the risk they are taking by accepting an illiquid stock.

Putting Yourself in the Buyer's Position What is your agency worth? Within any industry, not just amongst insurance agencies, there is a tendency for business owners to identify the highest price comparable, and assume that is the price for their own business. You can’t blame someone for trying, after all. But sellers should make sure they understand that all agencies are not alike; nor are the circumstances between individual buyers and sellers.

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In the buy-side article I wrote last year I stressed the word “reasonableness,” and I would stress it again for sellers, from the perspective that they will have difficulty consummating a deal if it does not meet that description. In the past I have suggested to sellers of businesses that they try to put themselves in the shoes of the buyer. Could YOU rationalize that same deal? For a seller a realistic value is very important if there is any portion of a deal that is paid for based on renewals over an extended period of time. If a buyer pays too much, they certainly run the risk of not being able to afford the sellerfinanced debt service.

Maintaining Your Legacy Buy/Sell transactions and succession plans are not all about the cash. Most agency owners have succeeded, in part, because of a capable team of employees and a loyal and supportive customer base. They are rightfully considered “stakeholders” in any change of control transaction. An agency owner must understand that to the extent they accept a significant premium for their agency, that the buyer is going to have to figure out how to pay for it from the future cash flows.

It is not uncommon, after the honeymoon period ends, to see successor agencies make personnel changes for the sake of cost-savings. These changes often affect the level of service provided to customers. So if you care about your legacy in your community, understand who you are selling to and how do they intend to perpetuate your business. It just might affect which path you choose.

About the Author Jim Rieniets serves as President and CEO of INSBANK, which requires him to manage the day to day activities of the bank. He also serves as a director of INSBANK and on the Loan and Investment Committees, as well as being the Chief Manager of the bank’s subsidiary, Finworth Mortgage, LLC. Jim has an extensive banking career and leadership background and formerly served on the Credit Committee of the Tennessee Bankers Association. u

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Remote Workers: Are They a Key to Agency Performance? written by Sharon Emek, Ph. D., WAHVE

The eternal struggle most agencies face is balancing profitability and productivity. In a soft insurance market, that struggle is elevated as agency owners and managers look for ways to improve profit margins while making sure current staffing levels can handle additional business.

The future, at least in the short term, could bring more of the same for agencies. According to Deloitte’s 2017 Insurance Industry Outlook, an uncertain economic picture, along with regulatory reform, changing trade policy, and a proposed new tax structure, will impact insurer growth. Lower-interest rates are putting pressure on investment income, says the Outlook, and both homeowners and auto lines of business could be impacted by the economy.

All of this change at the top level of the industry puts additional pressure on agencies already struggling to grow and expand while keeping administrative costs in check. Yet too often, agencies overlook an area of business improvement that can add significant improvements without breaking the bank – hiring remote workers.

The Challenge of Virtual It stands to reason in today’s virtual world that workers need not be sitting in a cubicle in order to contribute. Yet it’s an alternative to the traditional employment model that many agencies have yet to embrace. Those that have are reporting 12

agency improvements such as eliminating a backlog of work, improving accuracy, meeting short-term hiring needs, responding faster to changing market conditions, and being better positioned to compete in a tight market.

Yet finding the right caliber of worker has been challenging.

The pool of talented candidates available locally, depending on the agency location, can pose an even tougher challenge.

Then there’s the cost: most agencies simply don’t have the budget for professionals with the right amount of experience they’re requiring.

Likewise, many off-the-shelf type of staffing options do not offer the type of specialized skills that insurance agencies need. Traditional staffing options fall far short of sourcing qualified, experienced workers who understand agency operations, much less how to accurately resolve claims or handle underwriting issues.

The Remote Specialist That’s where specialized remote workers can become an agency’s secret weapon. Many retiring or retired insurance professionals are looking to supplement their retirement income, redefine their careers, head in new directions with their skills, or gain more freedom in their work-life balance.

For them, working into retirement means gaining a freedom continued on page 46 The Tennessee Insuror

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“We have been using WAHVE for four years and are extremely happy with the results. Our wahves are technologysavvy and their work ethic is top-notch.

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Daniel Learns About Insurance: Joining the Yacht Club Make Sure Your Clients Are Prepared Before Making Waves

Insurors Director of Communications Daniel Smith is far from an insurance expert, but he is trying to learn! In this series he will look into insurance industry and coverage questions he has about popular trends in day-to-day life.

I am not a "boat person." I do not own a nautical-themed pashmina afghan. However, I do appreciate a fine watercraft like those produced by Chris-Craft, Amels, Christensen, Heesen and others. These manufacturers produce some of the highest quality luxury boats in the world. These boats need special coverage, and agents need experience to understand potential gaps in coverage.

Per the Insurance Information Institute, most companies provide limited coverage for property damage to small boats under a homeowners or renters insurance policy. This would include small vessels such as canoes and small sail boats or small power boats with less than 25 mile per hour horsepower. Coverage is usually about $1,000, or 10 percent of the home's insured value, and generally includes the boat, motor and trailer combined. Liability coverage is typically not included–but it can be added as an endorsement to a homeowners policy.1 Larger and faster boats such as yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy. The size, type and value of the craft and the

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written by Daniel Smith, CAE

water in which you use it factor into how much you will pay for insurance coverage.

Coverage on these policies would include physical loss for the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an Actual Cash Value (ACV) policy or on an Agreed Amount Value basis. As you know, ACV policies pay for replacement costs less depreciation at the time of the loss. Agreed Amount Value basis policies mean that your insured and the insurer have agreed on the value of the vessel and in the event of a total loss they will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.1 Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.

Many of these larger boats may also have fishing gear, advanced electronics and other expensive items that are not permanently attached to the boat. Check with your insured to make sure these items are covered as needed. In fact, thoroughly check with your insured to see what they plan to do for typical use of the boat, and if other items (drones, jet skis, etc.) may be part of their typical activity. Some boat owners are even getting involved in peer-to-peer boat rental, or let-

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©2016 Chubb. Coverages underwritten by one or more subsidiary companies. Not all coverages available in all jurisdictions. Chubb®, its logo, Not just coverage. Craftsmanship.SM and all its translations, and Chubb. Insured.SM are protected trademarks of Chubb.

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ting guests stay on the boats in an Airbnb type scenario. This usage would generally be excluded on a personal boating policy, and needs to be discussed with your insured. Things are definitely changing quickly in the boating world.

"I find it to be a very exciting time for the recreational marine industry," Jeremy Backman, VP of Sales for the recreational marine division of Chubb told Rough Notes in March. "There are new vessels and new watercraft, and innovation is impacting the industry."2 Work with your insured to make sure all their boating needs are covered appropriately. Also let them know that some boat owners may be eligible for policy discounts for the following: • • • • • •

Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode Coast Guard approved fire extinguishers Ship-to-shore radios Two years of claims-free experience Multi-policies with the same insurer, such as a car, home or umbrella policy Safety education courses, such as those offered by the Coast Guard Auxiliary, U.S. Power Squadrons or the American Red Cross

boat owners, as they add additional protection for boats, as well as the insured's home and car. Some boaters may want liability limits over the standard increase limit of $300,000.

As you consider all these possibilities for your boat-owning insureds, Backman and other industry experts urge you to also consider their boating experience level. More and more new boaters are being drawn in to the market, and they may not know as much about their equipment or their coverage needs. Take the time to educate them on the importance of both property and liability coverages for their new watercraft hobby.

Keep these tips in mind, and hopefully you'll keep your insureds covered and afloat. Happy boating, and don't lose those flippy floppies.

1-Per "Boat Insurance” via Insurance Information Institute at http://www.iii. org/article/boat-insurance 2-Per “Focus on Recreational Boating” via Rough Notes at http://browndigital.bpc.com/publication/?i=387586&p=46

About the Author Daniel Smith serves as the Director of Communications for Insurors of Tennessee. He has a Bachelors degree in Marketing with a minor in Graphic Design from the University of Tennessee at Chattanooga.

He may be contacted at dsmith@insurors.org. u

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Future Leaders Spotlight

presented by

Chadwick Willoughby, CIC, CWCC, CLCS • Farris Evans Ins. - Memphis Chadwick Willoughby grew up in Southaven, Mississippi, which has been a booming suburb of Memphis for the last 25 years. Upon graduating from the University of Memphis, he relocated to Nashville and stayed there for almost 10 years before moving back to Memphis. While in Nashville, he was involved in the Junior Chamber and was also accepted to participate in the Young Leaders Council. He enjoys golfing, college football and any opportunity to spend time on any lake or river.

Chadwick Willoughby of Farris Evans Ins. Agency

The Insuror: Can you tell us a little about your current job title and responsibilities?

Chadwick: Since the beginning of this year, I am serving as President of Farris Evans Insurance Agency but will also still maintain my clients and responsibilities (as most all executives do in this business) as a Producer. As President I will oversee a lot of the day-to-day operations – though we have an excellent office manager of 30+ years who is a tremendous help in that area – and more importantly the strategic growth of the agency moving forward in terms of hiring/ training new producers, maintaining current and finding new insurance carrier relationships, and possibly making strategic acquisitions.

The Insuror: As a person that joined the agency from “outside” the family, how has your role in a familyowned agency developed over time?

Chadwick: That is an interesting question. When I first met with Stan Evans (CEO & Majority Owner of Farris Evans) I let him know that I wanted a shot at more than just producing business, specifically after I had proven myself and earned it.

Now, I can’t speak for what was running through Stan’s mind when I mentioned this but he obliged me at the time and said he was possibly open to that if and when the time presented itself. From then on it has been an interesting relationship with Stan and his family because we became very close pretty quickly and the relationship took on a role of what I would call half best friend and half mentor. Stan and I have joked recently that the biggest disagreement we’ve had over the years is almost literally where to have lunch or a business dinner.

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The Insuror: What can you tell us about your educational background?

Chadwick: I spent some time at both Northwest Community College and Ole Miss before finally transferring to the University of Memphis where I graduated with a B.B.A. in Management. Then I swore I was “over” school and just wanted to work and make money. Little did I know that within the first few years of my commercial insurance career I would take an additional 300 hours of classes to earn four different insurance industry designations including CIC, CWCC, TRS and CLCS.

The Insuror: How and why did you get your career in the insurance industry started?

Chadwick: I always wanted to be an attorney and literally had no back-up plan up until my senior year as an undergraduate at the University of Memphis (UofM). About halfway through my senior year reality started sinking in that not only had I not taken the LSAT but more importantly I really just didn’t have three tough years of schooling left in me. Then right after graduating from UofM there was a chance meeting arranged by the father of a girlfriend I had that led to me relocating to Nashville and starting my insurance career. My first industry job was as a commercial lines producer for Synaxis Polk & Sullivan.

The Insuror: Do you have any influences/role models in the industry?

Chadwick: There have been several, but I would say there are two that influenced me the most and helped get me to this position in my career. First, there was John Tomlinson who took me under his wing at Synaxis Polk & Sullivan and literally taught me commercial insurance as well as how to sell it and be a consultant to our clients. We ended up working as a team and making a move together to another agency before eventually going our separate ways after a number of years together. John is literally one of the best salesmen I’ve ever met and we had a ton of fun and a great run together for a number of years. He’s now Head of Entertainment with Lockton Companies out in Los Angeles, and he's killing it as he’s always done.

Then there is the aforementioned Stan Evans. I originally reached out to Stan years ago about the opportunity of me joining Farris Evans. I still joke about it today, but I mean it when I say that it was the most important phone call I’ve ever made. Stan has taught me more about running an agency, The Tennessee Insuror

Small business customers need superior service and comprehensive coverage... we bring you that

dealing with people at all levels, producing business and cementing relationships than he would ever take credit for.

I was fortunate enough to not only learn a ton from both of these men but more importantly to create extremely tight bonds that I have no doubt will last forever.

Advantage

The Insuror: Is there any advice you could offer Young Agents or others in the industry to achieve success?

Chadwick: I’ve always said that a truckload of passion, a fire in your belly that just cannot be put out, and a desire to outwork those around you will take you a long ways in this business.

However, if you want to go the extra mile or two then I’d say find a niche and become an expert in a particular industry or two. The commercial insurance industry is undoubtedly one of the best kept employment secrets, and it can provide one heck of a flexible, fun, challenging and lucrative career for Young Agents.

The Insuror: As an independent agent, you have many partners in this industry, including carriers, MGAs and many more. How do you determine which ones are the right relationships?

Chadwick: For our agency it’s a little bit easier given that we only do one thing – property and casualty risk management and insurance programs for the trucking industry. With that being said, we try and partner with people and companies with which we can have mutually beneficial relationships. We want to help each other to produce the type of successes that we’re all hoping to achieve. At the end of the day, it’s definitely a relationship business and you end up getting a sense of who you mesh well with and are able to find continued success with on a year-to-year basis.

The Insuror: Thank you for giving us your time, Chadwick, we appreciate it and wish you continued success in your career.

Chadwick: Thank you for the opportunity. u

Young Agents ‘17

Upcoming Events and Information

Why BSIG Advantage Our Advantage product offers a simplified solution for writing your small business customers that includes: • Over 400+ eligible classes & 8 market segments • Bindable coverage online makes placing business easier than ever • Expedited processing for eligible classes • Authority to apply up to 25% credit on qualified accounts • Comprehensive Coverage – we have the right product to fit the needs of your clients • 24/7 online claim reporting and emergency response • Exclusive access to our online risk safety portal with information tailored to the customer’s business • Exclusive access to our online data breach preparation and crisis management portal

Our Claims Commitment We are committed to providing superior claim service-and getting our customers back-in-business when a claim does occur, earning us a 97% customer satisfaction score through July of 2016.

Want to Know More?

Please contact: Jennifer Hubbard or Andy Wilder Territory Manager Territory Manager 865-322-3332 615-406-6328

Your Back-in-Business Insurance Company™

berkleysig.com Berkley Southeast Insurance Group is a member company of W. R. Berkley Corporation, whose insurance company subsidiaries are rated A+ (Superior) by A.M.Best.

Our Young Agents Committee strives to offer young insurance The Tennessee Insuror

Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. ©2016 Berkley Southeast Insurance Group. All rights reserved.

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professionals with opportunities to network and develop in the industry. We accomplish this by hosting networking and educational events throughout the year in various Tennessee markets.

The following is the current schedule of events for 2017, please contact Insurors or your Region representative for more information on these meetings or to RSVP for a specific event: March 30 - Nashville Young Agents Reception Bastion • 5-7 pm CST • Nashville April 18 - Jackson Young Agents Learn & Leisure Flatiron Bistro • 3-6 pm CST • Jackson April 20 - Memphis Young Agents Reception Wiseacre Brewery • 5-7 pm CST • Memphis April 27 - Chattanooga Young Agents Reception OddStory Brewing Company • 5-7 pm EST • Chattanooga October 15 - Insurors Convention Young Agents After Party B.B. Kings Beale Street • 8-10 pm CST • Memphis

Young Agents Committee Tim Treadwell V - Chair Account Executive Boyle Insurance Agency Memphis timt@boyle.com Brent Chance - Immediate Past Chair Principal Agent/Owner Ivy Insurance Brentwood bchance@ivy-insurance.com Cy Young - Region I President Young-Hughes Insurance Alamo cy@younghughesinsurance.com Alan Sisk, AU, AINS - Region II Producer Geny Insurance Nashville alan@genyinsurance.com David Allen, CIC, CRM - Region III Principal Agent RSS Insurance Chattanooga dallen@rssins.com For more information, or questions on the Young Agents program, please email dsmith@insurors.org or call him at 615.515.2601. u 20

INTRODUCING

Exceptional Agents Berkley Southeast Insurance Group recognizes the need to mentor the growth of new talent and to perpetuate the Independent Agency System, as well as provide young agents with a competitive advantage. Tennessee’s Young Agents are the future of our business. That’s why we are working together for success.

Congratulations Exceptional Agents 2016 Aaron Jensen Adam Reeves Andrew Powers Blake Dickens Brandon Patterson Chad Richardson Chad Snider Charlie Taylor Clement Ledbetter Cooper Permenter David Allen David Clark David Evans Jamie Williams Jared Smith Jason Teague John Brock John Fritts Josh Witt KC Covington Kevin Lockmiller Kevin Ownby Matt Spellings Michael Greer Michael Novarese Mike Thomas Neil Scott Paul Steele Preston Martin Ramsey Brock Robert Harris Stacy Woodard Stuart Oakes Taylor Ragan Taylor Walker Tim Treadwell Trey Powell Will Webb

Shafer Insurance Agency, Knoxville Union City Insurance Agency, Union City Burke, Powers, and Harty Insurance, Bristol Harris, Madden and Powell, Memphis Ownby Insurance Services, Sevierville Swallows-Newman Insurance, Cookeville Westan Insurance Group, Martin Burke, Powers, and Harty Insurance, Bristol Battle Page Insurance, Franklin Harris, Madden and Powell, Memphis RSS Insurance, Chattanooga RSS Insurance, Chattanooga The Insurance, Group, Inc., Knoxville Hardin County Bank Ins. Agcy., Savannah TIS Insurance Services, Knoxville Watauga Insurance, Johnson City Heritage Brock Insurance, Chattanooga TIS Insurance Services, Knoxville The Insurance Group, Inc., Knoxville Carroll Insurance Agency McKenzie V.R. Williams & Company, Winchester Ownby Insurance Services, Sevierville Consolidated Insurance Agency, Paris V.R. Williams & Company, Winchester McDaniel-Whitley, Inc Insurance, Inc., Nashville Insurity Group, Chattanooga Martin & Zerfoss Insurance, Nashville Union City Insurance Agency, Union City Brock Insurance, Chattanooga Tigrett & Pennington, Nashville Shafer Insurance Agency, Knoxville TIS Insurance Services, Knoxville Martin & Zerfoss Insurance, Nashville Thompson & Smith Insuance, Jackson Boyle Insurance, Memphis RSS Insurance, Chattanooga Battle Page Insurance, Franklin

berkleysig.com local people helping agents professionally serve clients

The Tennessee Insuror

From Your President Check Out All of Our "Stuff"

I lovingly refer to all the products and programs our Association offers as the "stuff." But that stuff is a lot more important than it sounds.

That stuff can help you build a successful agency, or help you grow even more successful. In fact, there is literally an Insurors product and/or service that can help you: • • • • • •

Market for and find business Find employees to write business Train employees to write business Place business Finance business Protect your business

How does your Association accomplish all that for your agency? Take a look at the below products and services that help you get things done.

Market for Business How will you let people know about your agency? With the Trusted Choice brand you are entitled to marketing reimbursement money, a listing on trustedchoice.com for lead generation, as well as an opportunity to have your website and social media reviewed at no charge. Need to upgrade your marketing? Insurors has endorsed Titan Web Marketing Solutions to help you do just that. Visit www.insurors.org/IOT/ Products_and_Services/Marketing/IOT/Products_and_Services/Marketing_Home_Page. aspx for info on all our marketing programs.

Find Employees to Write Business Need new staffing for your agency? The Insurors Job Board is a great service for members that allows you to post job openings and is viewed frequently. Visit www.insurors.org/IOT/ Jobs/Job_Board/IOT/Jobs/Job_Board.aspx to post your job.

Need a more part time or short term solution?

Insurors has endorsed the Work at Home Vintage Experts (WAHVE) to provide you with cost-effective, experienced insurance industry "pretriees" to meet your staffing needs when you can't find the talent. Contact Bill Hunt at bill. hunt@wahve.com or 347.292.3757 for more info.

The Tennessee Insuror

Train Employees to Write Business From prelicensing, to online education, to designation programs like CISR and CIC, Insurors has the opportunities for your staff to be educated and further their industry knowledge.

Visit www.insurors.org/IOT/Events/IOT/Events/ IOT_About_Education.aspx for education information and schedules.

Place Business Where will place all this new business Insurors is helping you write? Your membership gives you access to RLI PUPs and Home Business Insurance, Selective Flood Insurance, Swiss Re Lawyer's Liability, E&S via Big "I" Markets and much more. Visit www.insurors.org/IOT/Products_and_Services/Markets/IOT/Products_ and_Services/IOT_Markets_Home_Page.aspx for an overview of your market access as an Insurors member.

Finance Business Insurors has endorsed Imperial PFS (IPFS) to provide members with a first class premium financing experience. IPFS offers agency partners and borrowers with flexible terms & down payments with no volume commitments, financing for most policies as low at $250, efficient and knowledgeable service and a chance to earn revenue for your agency. Contact Dave Baker at dave.baker@ipfs.com or 859.630.7369 for more information.

“T h a t s t u f f can help you build a successful a g e n c y. . .”

Protect Your Business Now that you have all this business, how do you protect your agency? Insurors offers the premier professional liability coverage for agents in Tennessee. Contact Stephen Holmes at sholmes@insurors.org or 615.515.2609 for more information on Swiss Re/Westport, Allianz, Beazley Cyber Liability and our other market options.

Do yourself a favor and check this "stuff" out. I think you'll be glad you did. u

John McInturff III, ARM 21

Meeting my customers where they work.

Crafting each policy to meet different needs.

Partnering with Builders Mutual insurance.

That’s how I get the job done right.

BuildersMutual.com

22

The Tennessee Insuror

From Your IIABA National Director Up in the Air

Things are changing on our Federal level. Where will all the chips land? We're still not sure, but it's definitely going to be different. In his first 90 days, President Trump has "shaken things up," and much of it is still settling. Let's take a look at some of the key issues that are still in flux.

DOL Overtime Rule On November 22nd, the U.S. District Court issued a preliminary injunction delaying the DOL overtime rule and its enactment until further notice. Although the ruling has been appealed, President Trump could order the DOL to drop their appeal, as he has expressed some disdain for the rule.

The President's nominee for Labor Secretary, Alexander Acosta, has expressed support for increasing the salary threshold at which overtime currently must be paid to employees, but criticized the doubling in the rate put in place by the Obama administration.

During his confirmation hearing, Acosta stated that President Obama's attempt to double the rate, “does create what I’ll call a stress on the system.” He also declined to commit to defending the rule in court.

McCarran-Ferguson Repeal On March 22nd, the House passed H.R. 372, the “Competitive Health Insurance Reform Act of 2017” by Rep. Paul Gosar (R-Arizona), by a bipartisan vote of 416-7. The legislation would repeal the limited McCarran-Ferguson antitrust exemption for health insurers; however, it would let the exemption remain in place for other lines of insurance, such as property-casualty and life insurance.

The McCarran-Ferguson Act was signed into law in 1945 in order to affirm the primacy of state insurance regulation. Pursuant to McCarranFerguson, state regulated insurance companies hold a limited exemption from federal antitrust laws. The Big “I” strongly supports state insurance regulation and the limited antitrust ex-

emption for the P&C and life insurance markets via the McCarran-Ferguson Act. In particular, the association believes the exemption is vital to the competitiveness of state P&C insurance markets.

The Big "I" will be working hard for us on this issue.

ACA Repeal and Replace This is the "elephant in the room" issue on all of our minds, but as I write this we still have no idea of the outcome. H.R. 1628, the “American Health Care Act” (AHCA), was pulled from consideration without a vote on March 24th. The resolution would have left the exchanges in place but repealed major provisions of the ACA, including its subsidy structure, the individual and employer mandate penalties, and various taxes. The legislation also would have made changes to the way Medicaid is delivered, and also delayed the "Cadillac" tax until 2026.

When the bill was pulled from the floor, President Trump said that he was, "Moving on to other issues." But then abruptly, on March 28th, House Republicans and the White House restarted talks on repeal legislation. So, where does it stand? Hopefully, by the time you read this, some progress will have been made. I know that our Government Affairs team at the Big "I" will be monitoring it closely.

“In times of change, it is best to have your friends by your side.”

Other Issues on the Way Other issues, including Crop Insurance and the National Flood Insurance Program, will be on the table in the coming months. It is clear that whatever the issue, we should all be prepared for some type of change to occur.

In times of change, it is best to have your friends by your side. We have great friends at Insurors and the Big "I" watching our backs on The Hill, so let's make sure we support them.

Visit http://www.independentagent.com/GovernmentAffairs/InsurPac/default.aspx to see how you can help. u

Lou Moran III The Tennessee Insuror

23

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MidSouth Mutual provides strength, reliability and value to agents and their clients through quality products, forward-leaning loss control and superior claims services.

Examples of clients we serve include: HVAC Contractors Carpenters Building Suppliers Framers Dozing Services Dry Wallers Road Contractors Landscapers

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Contact Tom Perez at tom.perez@bwood.com or 615-379-8245 www.midsouthmutual.com

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We’re the quote you could come up against, so why not join us? Go to www.guard.com/apply

Visit www.guard.com for product availability in specific states.

24

The Tennessee Insuror

From Your CEO And the Winner is...

If you’re a frequent reader of my rants and raves about supporting our State Political Action Committee, InsurPACTN, here’s some data regarding how PACs in Tennessee continue to grow and in most cases are the main contribution to political candidates at our State level.

We have reviewed the 2015-16 election cycle that ended last November to demonstrate how much PAC activity goes on around each Statelevel election in Tennessee.

In the Tennessee General Assembly we work around, with and sometimes against over 300 other special interest groups. The essence of good government relations has 3 components. They can be balanced in different amounts depending on the group, and include: effective grassroots, respected lobbyists and a sufficiently funded PAC. Greater strength in one category can offset deficiencies in another. Insurors "magic sauce" is based heavily on grassroots – our total number

Insurance PAC Totals in Tennessee

of member employees is over 5,000 licensed agents. Not to mention, you are known in your communities as leaders who are considered influential by your elected officials.

On the PAC side, we raise about $40k per year ($80k per cycle). That’s $64 per person per year.

Good in our class, but not as much a leaders in other classes. Lastly, our lobbyists, 3 individuals with over 60 combined years of Capitol Hill experience. This demonstrates continuity and trust from the members of the General Assembly. We pride ourselves on being “on the Hill” at least 3 days a week representing you. Just being there in good or bad times continues to make us a real player.

So how do we stack up in our PAC class for the last election? Looking at the big picture, 436 PACs contributed around $9.7M to Tennessee campaigns in the last election cycle. Of that Healthcare contributed almost $2 million.

“J u s t b e i n g there in good or bad times continues to make us a real player.”

Chuck Bidek, CPCU The Tennessee Insuror

25

PAC Contibution Totals in Tennessee by Industry Contributor Name

Total Amount

Healthcare PACs

$1,927,557.88

$2,500,000.00

Union PACs

$741,227.10

$2,000,000.00

Utility/Tele PACs

$697,550.00

Banking/Finance

$667,598.00

Total PAC Contributions

$1,500,000.00

PACs

$1,000,000.00

Retailer/Wholesale

$509,281.82

PACs

$500,000.00 $0.00

Lawyers PACs

$498,272.88

Construction PACs

$474,101.00

Business/Company

$373,534.64

PACs Real Estate PACs

$319,700.00

Hospitality/F&B

$293,850.00

PACs

As you can see from these totals, PACs play a very significant role in our elections. In fact, the grand total is over $7.2 million, and this does not include money given to candidates from internal leadership and/or political parties themselves. Whether we like it or not, PAC contributions continue to be a vital part of our Government Affairs efforts. Please consider donating at www.insurors.org/IOT/GiveNow/IOT/Fundraising/IOT_Donate_Now.aspx u

Insurance PACs

$293,176.61

Other

$238,975.00

Auto PACs

$174,100.00

Environmental PACs

$82,850.00

®

There can be no doubt that all our knowledge begins with experience. – Immanuel Kant

www.summitholdings.com

Policies are underwritten by Bridgefield Casualty Insurance Company and Bridgefield Employers Insurance Company, authorized insurers in AL, AR, FL, GA, IN, KY, LA, MS, NC, SC, TN and TX; BusinessFirst Insurance Company, authorized in FL, GA, KY, NC, SC and TN. ©2016 Summit Consulting LLC | 2310 Commerce Point Drive, Lakeland, FL 33801

26

The Tennessee Insuror

Education Calendar

2017 Continuing Education Chattanooga 4/4 CISR Agency Ops 10/5 CISR Commercial Casualty II

Memphis

Johnson City

3/1 CISR Commercial Casualty I

4/5 CISR Agency Ops 10/5 CISR Commercial Casualty II

3/15-17 CIC Commercial Multiline 6/14 CISR Personal Residential 11/8 CISR Personal Lines

The Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialities that satisfy individuals at many different experience levels.

If you are looking to further your career, seeking a professional designation, or need to satisfy continuing education requirements, check out the variety of courses available.

Nashville

2/28 CISR Commercial Casualty I 5/3-5 CIC Commercial Property 6/13 CISR Personal Residential 7/20-21 CIC Ruble 9/13-15 CIC Commercial Casualty 10/1-3 CIC Company Operations

Knoxville 4/6 CISR Agency Ops 8/16-18 Agency Management

Registration is fast and easy at www.insurors.org. More information about each class can also be found online.

10/3 CISR Personal Auto

10/8 CISR Personal Lines

Paving The Way

CISR

Fee: $186

CE: 7

4/4 Agency Operations 4/5 Agency Operations 4/6 Agency Operations 6/13 Personal Residential 6/14 Personal Residential 10/3 Personal Auto Exposures 10/4 Personal Auto Exposures 10/5 Personal Auto Exposures 11/7 Personal Lines - Miscellaneous 11/8 Personal Lines - Miscellaneous

CIC

Chattanooga Johnson City Knoxville Nashville Memphis Knoxville Johnson City Chattanooga Nashville Memphis

Fee: $430

9/26-29 Practice of Risk Management*

Nashville

Specialty Seminars 4/4-6 Affleunt/High Net Worth Clients 4/10-11 Legal Concepts in Insurance

Fee: Varies

Nashville Nashville

Online Courses (www.iiaba.net/vu) Available from IIABA Virtual University. Member pricing shown.

Fee: $424 (Ruble $430)

CE: 24 (Ruble 16)

5/3-5 Commercial Property Institute 7/20-21 Ruble Graduate Seminar 8/16-18 Agency Management Institute 9/13-15 Commercial Casualty Institute 11/1-3 Company Operations

Nashville Nashville Knoxville Nashville Nashville

The National Alliance for Insurance Education & Research is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba. org. Advanced Curriculum Rating = 20 CPE Credits. For more information regarding administrative policies such as complaint and refund, please contact our offices at 800-633-2165.

ABEN Webcasts (insurors.aben.tv) 4/4 4/4 4/6 4/6 4/14 4/18 4/19

CRM

Hot Topics in Personal Lines NFIP Basic Flood Insurance Course Those Kids and Their Cars Insuring Condominiums Professional Ethics in Insurance E&O - Consideration of Agency Ops E&O - Understanding Agent Duties

CE: 2 $48 CE: 3 $72 CE: 2 $48 CE: 2 $48 CE: 3 $60 CE: 3 $48 CE: 3 $48

Ethics for Insurance Professionals How to Calc. Business Income in 5 Min. National Flood Insurance Program New Employee Training Course

CE: 3 CE: 3 CE: 6 CE: 9

$75 $50 $80 $100

*check VU site for current information on CE and pricing

Available from The National Alliance

(www.scic.com)

Legal & Ethical Requirments of Insurance CE: 4 Insuring Flood Exposures - NFIP Review CE: 4 Available from The Institutes

$75 $75

(insurors.ceu.com)

Insurance Principles and Policies CE: 7 Long Term Care CE: 24 Workers’ Compensation CE: 10 Employee Benefits for Small Companies CE: 4 Healthcare Reform and Affordable Care CE: 5 e-Coverage CE: 15 Fundamentals of Personal Auto Insurance CE: 3 Management Process for Ins. Professionals CE: 21 Intro to Flexible Spending Accounts CE: 4 Terrorism and Its Impact on Insurance CE: 4 Toxic Mold and Homeowners Insurance CE: 15

$49 $99 $59 $39 $49 $79 $29 $89 $39 $39 $79

Register Online at www.insurors.org

Indicates course is presented by The National Alliance. Register for these courses at www.thenationalalliance.com The Tennessee Insuror

27

INSURORS MEMBERS: THE PRODUCT VAULT IS OPEN

28

The Tennessee Insuror

MEMBER RESOURCES

BANKING

ERRORS & OMISSIONS COVERAGE

ESIGNATURE Big “I ”

MARKETS

EXCESS & SURPLUS LINES

FLOOD INSURANCE

PERSONAL UMBRELLA POLICIES

PREMIUM FINANCE

STAFFING

WEBSITE DESIGN and ONLINE MARKETING

...AND MUCH MORE

GET MORE INFO AT INSURORS.ORG

You have goals.

Nationwide® has independent solutions to help you meet them.

Whether you’re looking to build, grow or sell your agency, Nationwide offers you choice when it comes to independent solutions and partnership opportunities.

Let’s start a conversation about your independent opportunities with Nationwide.

Dan Schilling Phone: (423)827-2060 d.schilling@nationwide.com

Not all Nationwide affiliated companies are mutual companies and not all Nationwide members are insured by a mutual company. Nationwide, Nationwide is On Your Side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide NPO-0627AO (08/15)

30

The Tennessee Insuror

Government and Legal Affairs The "Independent Contractor" Issue

approach as to one or more of the factors of determination.

Employers often grapple with whether an individual is employed as an employee or an independent contractor. While an employer may benefit from classifying an individual as an independent contractor in the short run in terms of lower payroll taxes and insurance premiums, the costs of misclassification can be devastating to a small business.

This was the approach taken by the Tennessee Court of Appeals recently when analyzing whether individuals performing the main function of a business could be properly classified as independent contractors in Tennessee. At issue was a decision by the Tennessee Department of Workforce Development holding a pet groomer liable for unpaid unemployment taxes from 2006 through 2011.

Written by Joshua J. Sudbury, J.D.

Choosing between employee and independent contractor requires a fact-specific analysis, and the legal standards applied to determine “employee” status vary depending on the jurisdiction (federal vs. state) and the statute or agency involved. Courts and agencies apply a whole hosts of tests with various factors. For example, courts apply the “economic realities” test under the Fair Labor Standards Act (“FLSA”). The IRS considers 3 categories of control: behavioral, financial, and type of relationship. In Tennessee, the Department of Workforce Development (“DWD”) applies the “ABC” test derived from state statute to determine whether an individual is an employee or independent contractor for unemployment tax purposes.

Typically, in all tests, no one factor is controlling. However, the level of control an employer exerts over the duties of the individual tends to impact significantly the determination of the individual’s status. In general, the greater the control exerted by the employer over the type, method and manner of the work performed, the more likely the individual is an employee than an independent contractor, and vice versa. However, where the test is announced by statute rather than by caselaw, the court or agency applying the test may take a stricter

The Tennessee Insuror

The case involved a business in Knoxville, Tennessee, which, according to its owner’s testimony, was “in the business of grooming dogs.” In addition to canine cleaning, the company trained students to become pet groomers and sold certain pet products like shampoo. The company allowed pet groomers to determine their prices on a case-by-case basis, and paid the groomers a 50 percent commission on what they brought in at the end of each week. The company also provided the groomers with necessary grooming supplies, and the groomers sometimes participated in selling the company’s retail items.

All grooming services took place at the company’s location in Knoxville, although groomers could work for other companies or themselves at other locations if they wished. Customers called the company to set up appointments rather than calling individual pet groomers, although customers could request to work with a particular groomer. On these facts, the Department of Workforce Development held the pet groomers were covered employees rather than independent contractors.

31

The Department’s ruling focused on the company’s failure to establish each of the three elements of the “ABC” test, which governs whether an individual is an employee or independent contractor for unemployment tax purposes [See Tenn, Code Ann. §50-7-207(e)(1)]. The test provides that an individual shall be deemed an employee, unless the employer can establish: (A) the individual has been and will continue to be free from control and direction in connection with the performance of the service, both under any contract for the performance of service and in fact; (B) the service performed by the individual is performed either outside the usual course of the business for which the service is performed or is performed outside of all the places of business of the enterprise for which the service is performed; and (C) the individual is customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed.

The Department held that because the company could not satisfy the “B” prong of the test, the individuals were employees. The Court of Appeals agreed, relying on testimony from the company’s owner that the company was, at least in large part, a pet grooming business. Therefore, the individual groomers, in performing services which were a part of the usual course of the company’s business, and doing so at the

company’s location, could not be considered independent contractors. As a result, the Court of Appeals affirmed the Department’s determination the individuals were independent contractors, making the company liable for unpaid unemployment taxes from 2006 through 2011.

Employers’ Bottom Line: This case highlights the strict approach taken by Tennessee agencies and courts in determining whether an individual qualifies as an independent contractor under state law. It also serves as a reminder of the many tests utilized by various state and federal agencies to determine employee/independent contractor status. Failure to comply with each of these tests may result in liability for unpaid taxes or wages, along with potential administrative or statutory penalties. Insurors should encourage their business clients to proceed with caution when making these determinations and to seek the assistance of experienced employment counsel to clarify any uncertainties.

About the Author Josh Subury is an attorney in the Nashville office of FordHarrison, LLP, a nationwide employment law firm, focusing on assisting employers with their employment relations issues. If you have any questions regarding this article or issues relating to the classification of workers as independent contractors, please contact Josh at jsudbury@fordharrison.com or 615.943.5262. u

C AN ’ T H ANDLE THE HARD STUFF? L ET J IMCOR G IVE Y OU A H AND ! o

Nightclubs/Restaurants/Bars

o

Environmental

o

Monoline Liquor (Incl. AL)

o

Professional Liability

o

Vacant Property

o

Real Estate Schedules

o

Coastal Property

o

o

Apartments/Motels

o

Exporters/Importers/ Wholesalers

o

Tenant Dwellings (including large schedules) Manufactures/Distributors

o

Cyber Liability

*Admitted and Non-admitted

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Markets.

*Binding Authority and Brokerage Placements *Quick Turnaround and Personalized Service

Jimcor Agencies, Your MGA/Wholesaler of Choice!

Joe Geracie, CPCU, Regional Manager— 678-952-3023 ext. 1418 Jason Marshall, Underwriter— 678-952-3023 ext. 8001 Andrew Lanham, Underwriter— 678-952-3023 ext. 8002 32

Jimcor.com The Tennessee Insuror

™

The Tennessee Insuror

33

Brighton – the South & Western mascot

Trust matters.

Construction

is a complex business— insuring it shouldn’t be.

When their business is your business, choose a carrier that’s been recognized as one of “America’s 50 Most Trustworthy Financial Companies” by Forbes as well as a “Five Star Carrier”

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That’s UFG.

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To learn more about UFG, visit ufgSolutions.com

The Tennessee Insuror

Association Update

Hitson Insurance Merges with Crum & Blazer

The new agency logo for Hitson, Crum & Blazer Insurance

Two of Blount County’s oldest independent insurance agencies combined forces last month to launch Hitson, Crum and Blazer Insurance Inc., in Maryville. President and owner Matthew Bryan said the merger was finalized January 1st.

As the oldest agency in the county, Bryan explained that the Crum and Blazer Insurance Agency can be traced as far back as 1921, while the Hitson name was established in the early 1980s. Bryan, a resident of Farragut who began working in Blount County as a commercial banker for First Tennessee in 2005, joined Hitson Insurance in 2014, after serving a fouryear period at Merrill Lynch.

Reliance Partners Adds Copeland Reliance Partners expands its leadership team with the addition of veteran insurance professional, Stephen Copeland as Senior Director of Customer Service. With more than 20 years of industry experience, Copeland’s expertise and leadership skills will strengthen the agency’s capacity to expand and continue serving its national client base with excellence.

Copeland’s professional background includes independent agency management as the commercial lines manager of Southern Financial Insurance Group in Tallahassee, FL and in the direct writing market space where he worked for Sentry Insurance Company. He also has experience at Rogers, Gunter, Vaughn insurance as producer, personal lines manager, and marketing director and also as an independent agent specializing in farm insurance.

Boys & Girls Club of TN Valley Adds Program Honoring Oakes Former Insurors President and TIS Insurance Services Construction Division President, R.L. “Bunny” Oakes III, is being recognized by the Boys & Girls Clubs of the Tennessee Valley. Oakes, a 30-year member of the Corporate Board and long-time supporter of the Club, will be honored through the naming of their new staff recThe Tennessee Insuror

ognition program entitled, “The Power of 212°: The R.L. “Bunny” Oakes, III Recognition Program.” The Power of 212° title is based on the best-selling book 212°: The Extra Degree by Sam Parker.

The inaugural program is designed to recognize local Club staff members in their pursuit for professional and program excellence. Each category within the program promotes how extra effort in the field of youth development has the power to redefine the opportunity equation and make a positive difference in the lives of the young people served by the Boys & Girls Clubs of the Tennessee Valley. The clubs help youth and teens in grades K-12.

Farris Evans Elevates Willoughby to President Memphis-based Farris Evans Insurance Agency has restructured the ownership of the privately held firm to ensure future decades of success. Effective January 20th, Vice President Chadwick Willoughby, CIC, TRS, CWCC, CLCS became a major equity holder of the company and was promoted to President. The agency, which specializes in trucking and transportation insurance, has been driven for the past 33 years by President Stan Evans leading a core group of devoted employees. Evans new role will be as CEO.

Flegal Named Second Runner-up for Small Business of the Year The Walker County Georgia Chamber of Commerce honored the top three recipients of the 2016 Small Business of the Year Award at the County Civic Center during the 2017 Annual Membership Dinner on Thursday, January 26th. The award for second runner-up went to Flegal Insurance. The independent agents at Flegal have provided personal and business insurance in Chattanooga and North Georgia since 1917.

Arthur J. Gallagher Named as "Most Ethical" The year 2017 is the eleventh that Ethisphere has honored those companies who recognize their role in society to influence and drive positive change, consider the impact of their actions on their employees, investors, customers and other key stakeholders and use their values and culture as an underpinning to the decisions they make every day.

Arthur J. Gallagher has received this recognition for six consecutive years and is the only insurance broker to have been so recognized, underscoring their commitment to leading ethical business standards and practices.

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“Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.�

The Allison Insurance Group - Jackson Bagley & Bagley Insurance - Fayetteville Boyle Insurance Agency, Inc. - Memphis Burke, Powers & Harty - Bristol Carnal-Roberts Agency, Inc. - Lexington Cate-Russell Insurance, Inc. - Maryville Frank E. Neal & Company, Inc. - Nashville Goss Insurance - Hixson Inter-Agency Insurance Services - Knoxville

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Martin & Zerfoss, Inc. - Nashville McInturff, Milligan & Brooks - Greeneville Miller | Loughry | Beach Insurance Services - Murfreesboro Ownby Insurance Service, Inc. - Sevierville Smith-Berclair Insurance, Inc. - Memphis S.N. Anthony, Inc. - Ripley Tigrett & Pennington Inc. - Dyersburg V.R. Williams & Company - Winchester Watauga Insurance, Inc. - Johnson City

Get more information now at www.securerisk.com

The Tennessee Insuror

Association Update (cont.)

Insurors Members Honored at NetVu Awards Tennessee was the host for this year's Network of Vertafore Users (NetVU) annual conference, which included the group's annual Awards Gala. During the ceremony, held at the Omni in downtown Nashville on March 22nd, several Insurors members were among the honorees. First, David Fish of BFS Insurance in Clarksville was awarded an NCOM MVP award for his work engaging with and supporting fellow Vertafore users. In addition, The Crichton Group of Nashville was awarded for Automation Excellence in The Crichton Group accepts award the Large Agency category.

Berkley Names '16 Top Agency & Young Agent Berkley Southeast Insurance Group recently announced its 2016 award winners for Agency and Young Agent of the year. Tigrett & Pennington in Dyersburg and David Allen of RSS Insurance in Chattanooga were the proud winners recognized for these achievements.

Paul Carson and D.R. Pennington accept their award from Andy Wilder

First, Berkley Southeast recognized Tigrett & Pennington as the Tennessee Agency of the Year winner for 2016. VP Paul Carson and CEO Donald Ray Pennington accepted the award on the agency’s behalf from Berkley Southeast Regional Territory Manager Andy Wilder. The award recognizes the top Tennessee Independent Agency in the areas of profitability and growth.

Berkley Southeast also awarded their 2016 Young Agent of the Year Championship Belt to RSS Insurance principal David Allen. The award recognizes the top Tennessee Young Agent in profit and production.

David Allen receives Young Agent of the Year award from Jennifer Hubbard

Allen will be the proud new owner of this year’s Young Agent belt and receive his registration for the Insurors of Tennessee 2017 Convention in Memphis paid for by Berkley Southeast, a proud supporter of the Insurors of Tennessee and its members. u

What YOU do is what WE protect.

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Insurance contracts are underwritten and issued by one or more of the following: BITCO General Insurance Corporation and BITCO National Insurance Company, rated A+ (Superior) by A.M. Best, A2 Stable by Moody’s, and A+ Strong by Standard and Poor’s.

Construction Materials Suppliers On Shore Oil & Gas Extraction Forest Products Manufacturers and Wholesalers & Distributors All programs may not be available in all states.

INSURANCE FOR THE REAL WORLD

www.BITCO.com

The Tennessee Insuror

BITCO INSURANCE COMPANIES

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The Tennessee Insuror

Program Spotlight

Titan Web Marketing Solutions Independent insurance agents across the world have long relied on customer referrals and generic word-of-mouth marketing strategies to generate business. In fact, it was reported that in 2013, 82% of small business owners stated that their main source of driving business was through referrals. While referrals are a tried and true lead generation source, newer generations of customers require far more information before making a purchase decision.

With information-driven generations entering the marketplace, agents and agencies alike must adopt innovative marketing solutions to not only attract but retain clients. Past marketing tactics including direct mail can be beneficial, but in our world of screens and instant results, having a solid and branded digital presence is of the utmost importance.

You Must Have a Website Every insurance agency must have a website – it's that simple. From small necessities such as clothing to large, lifechanging purchases such as insurance, customers investigate every possibility, brand and competitor. With this in mind, understand that when searching for rates and insurance professionals online, a branded website is the first place potential consumers go for information.

When comparing rates and researching agents online, your website is the first or second impression a potential consumer has of your business. In the world of insurance, impressions matter. A website has the ability to make or break your reputation as an insurance professional.

In fact, not having a website at all says far more about your agency.

You Must Have a Quality Website However, it is not enough to just have a website. Your site must capture and retain the attention of the user through The Tennessee Insuror

an intriguing design, relevant and vital information, and seamless functionality.

When a website can accomplish all three criteria, it has the ability to bring in additional leads for your agency on top of your stream of referrals.

In addition, your website must be mobile responsive. With the extravagant amount of devices on the market today, potential customers will view your website from tablets, their smartphones and laptops. Your website needs to display properly amongst all devices to keep a cohesive brand image and keep the user’s interest.

Fail to do this and you will have tarnished the reputation you worked so hard to build up. Imagine how frustrating it is for a user to searching for an insurance agent or possibly you specifically and they come across a website that doesn’t work on their device. They’ll immediately exit your website and move on to your competitor. A website that works across all devices is in the best interest of your user and your company.

Let Us Help You Succeed Online A professional website design has the capability to provide greater confidence to referrals and attract new customers who find you organically during their online research. Having a greater number of lead generating pipelines will help achieve greater overall success for your agency.

From building a professional image online to providing visitors with ample information the user experience of a website is a crucial element of any insurance agent’s toolbox. As the endorsed provider of web marketing services for Insurors of Tennessee, we are ready to help you acheive these goals for your agency's website. Contact us today or visit www.titanwms.com/ insurors for more information. u

Tennessee Contacts Cash Miller President 877.935.3796 cmiller@titanwms.com Adam Faragalli Vice President 877.935.3796 adam@titanwms.com About Titan Web Marketing Solutions Murfreesboro, Tennessee-based Titan Web Marketing Solutions (Titan WMS). provides digital marketing solutions that work for your business, including website design, social media marketing, search engine optimization (SEO), video production and more.

Insurors has announced a new endorsed digital marketing partnership with Titan WMS. Insurors members are eligible for a 5% discount on Titan WMS services, and may also be eligible for a $500 reimbursement on those services from Trusted Choice through the Agency Website Review Program.* Starting from scratch, the team at Titan WMS will create a growth strategy with your agency and needs in mind. Titan WMS has a staff of professionals who specialize and excel in their area of expertise.

So whatever challenge you present, you can relax knowing a whole team is working to create the best solution focused on your success.

For more information, please visit www. titanwms.com or call 615.890.3600. *some conditions apply 39

Independence can’t happen alone.

Independence means freedom, but it also means responsibility. It is about staying true to the commitments you’ve made - to your clients, your colleagues, your community, and your family.

Keystone connects you to a community of like-minded independent agencies. We strengthen our partner agencies to safeguard livelihoods, bolster businesses, and fortify communities.

Partner with the best and distance yourself from the competition.

Art E. Gernt Insurance Bradshaw & Company Insurance Burchfiel-Overbay & Associates CS&A Insurance First Insurance Heritage Insurance Group Hollis & Burns Holman & Holman Agency Jamieson & Fisher Lester, Greene, & McCord/E.B. Thoma and Son McIntire & Associates Insurance Porch-Stribling-Webb Raborn Insurance Agency Robins Insurance Agency RSS Insurance Spann Insurance Strate Insurance Group Swallows Insurance Agency Thompson & Smith Insurance Westan Insurance Group William Blount & Associates Wyatt Insurance Services

Keystone.

Independence works better together.

Contact Michele Bicknell for more information: 570.473.2148 mbicknell@keystoneinsgrp.com keystoneinsgrp.com

©2016 Keystone Insurers Group ®. All rights reserved. This does not constitute an offer to sell a 40franchise in any state in which the Keystone Insurers Group franchise is not registered.

The Tennessee Insuror

Company Briefs Safeco Names Asher as New President Liberty Mutual Insurance has named Tyler Asher president of Safeco Insurance. Asher most recently was Safeco’s vice president, Distribution Insights, where he led strategy, planning and innovation, in addition to managing operational and advanced analytics.

During his nearly 18-year career with Safeco, Asher has served in a variety of roles spanning finance, accounting, management reporting and analysis. As part of the company’s innovation efforts, Asher’s team recently delivered Safeco’s “Insurance Advisor” skill for Amazon Alexa, becoming the first insurance carrier to enable consumers to navigate the insurance process simply by using their voice.

Asher succeeds Matthew D. Nickerson, who was recently appointed executive vice president and COO of Liberty Mutual Insurance’s Global Consumer Markets East Region.

Asher is active in the Seattle community, supporting several

health and human service organizations. He also works with the Accounting Careers Awareness Program, a non-profit dedicated to encouraging inner-city youth to look at careers in business, finance and accounting.

Vanderslice Retires; CNA Making Changes After more than 20 years of service with CNA, Bill Vanderslice has retired from his postion as Vice President of the Nashville and New Orleans Branch Offices. Bill has been a longtime supporter of Insurors and independent agents in Tennessee. In the interim, Ron Huber will serve in the position for both offices.

CNA has also announced that Douglas Worman has been named Chief Underwriting Officer and Andy Lea has been named Vice President of Commercial Underwriting for E&O, Cyber and Media. Worman was brought in for the new position as CUO and Executive VP, and will report to Dino E. Robusto, CNA chairman and chief executive officer. In this role, Worman will work jointly with the presidents of Commercial, Specialty and International, all of whom will continue to report to Robusto, to strengthen underwriting strategy and execution.

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The Tennessee Insuror

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The Tennessee Insuror

In Lea's role, he will manage the strategic direction of CNA’s Commercial E&O suite and Enterprise Cyber products.

FCCI Adds Williams in Tennessee FCCI has introduced Bobby Williams as its new Senior Marketing Underwriter in Tennessee, as part of the company's Gulf Coast Region. Bobby has 10 years of marketing and underwriting experience in the state of Tennessee. He is a graduate of Middle Tennessee State University and has earned his CIC and CRIS designations.

"FCCI is excited about growth opportunities in Tennessee, and Bobby’s relationships and experience will help FCCI and our agency partners as we work together to build our presence throughout the state," says Tiffany Hawkins, FCCI State Director. Contact him by email at by email at bwilliams@fccigroup.com.

The Hanover Restructures Agency Business The Hanover Insurance Group, Inc. recently introduced its goforward business strategy, "Hanover 2021," at the company's Investor Day conference. The strategy is about "reinforcing its commitment to its partners, defining its five-year growth and financial targets, and announcing organizational changes to drive the successful execution of its plans and superior returns for its shareholders."

As part of this strategy, the company's small commercial, middle market and personal lines businesses will be combined into one division, leveraging and building on the respective strengths of each. This division, Hanover Agency Markets, will provide the organization's distribution partners with products and services that enable them to meet a wide range of their customers' evolving needs. John C. Roche will serve as president of Hanover Agency Markets.

Ryan Specialty Group Acquires Transport MGA Ryan Specialty Group Underwriting Managers, the specialty underwriting unit of Ryan Specialty Group, LLC, has announced an agreement to acquire Interstate Insurance Management, Inc. Johnstown, Pennsylvania-based Interstate is a transportation managing general agent led by president and CEO Jack Buchan. The company has 50 employees. The deal would include 100% of Interstate's assets and operations.

ACUITY Showcases 2016 Key Financials Acuity recently released its 2016 financial results, which detail the insurer’s continued profitability, strength, stability, efficiency and expanded policyholder base.

Highlighting Acuity’s 2016 performance is a 92.9 combined The Tennessee Insuror

ratio, nearly eight points better than the insurer’s competitors in the property/casualty industry, marking the sixth consecutive year Acuity has earned a combined ratio of less than 100.

Acuity also recorded 12.4 percent surplus growth, compared to just 0.8 percent for the industry, and exceeded competitors in sales growth. For 17 years, Acuity has outperformed industry averages across key areas of measurement.

Acuity showed other areas of continued strength in 2016 as well. Assets under management increased to nearly $4 billion, and policyholders’ surplus increased to over $1.7 billion, an all-time record. Additionally, Acuity maintained a leverage ratio under 1:1 for the eighth consecutive year, finishing 2016 with 0.82:1, the strongest on record.

Wholesale Associations May Merge Into WSIA A proposed merger is in the works between specialty and surplus lines insurance trade associations National Association of Professional Surplus Lines Officers (NAPSLO) and the American Association of Managing General Agents (AAMGA).

The two groups would be combined to form the Wholesale and Specialty Insurance Association (WSIA). The membership of both groups must still vote on the merger before it can be made official.

Merger talks have been underway since October of 2016, and, if approved, the newly formed WSIA would move forward with the expressed goal of representing the entirety of the wholesale, specialty and surplus lines industry.

Main Street America Names Bastian The Main Street America Group, a superregional property/casualty insurance company, has announced the appointment of Anne Bastian to National Account Executive, a newly established role within the company’s field operations division. In this capacity, Bastian, who has served as a Main Street America field marketing representative since 2008, will be the primary marketing contact for the carrier’s largest multi-region accounts and also spearhead national account business development and agent sales incentive programs.

Bastian is based at the company’s corporate headquarters in Jacksonville, Florida, and reports to Jeff Kusch, Main Street America’s executive vice president, insurance operations. She has nearly 25 years of property/casualty industry experience.

Prior to joining Main Street America in 2006 as a senior commercial lines underwriter, she was a licensed independent insurance agent in Wappingers Falls, New York.

SIU Expands Active Shooter Ins. Program Southern Insurance Underwriters, Inc. recently introduced 43

an innovative insurance product designed to protect educational institutions against the unfortunate effects of an active shooter incident on campus. The product is now available to most businesses and facilities accessible to the public; such as Healthcare facilities, Educational institutions, Religious houses of worship, Entertainment venues and events, Retail (including but not limited to banks, restaurants, cinemas, shopping malls and stores within malls), Governmental and municipal facilities and parks, Industrial and commercial locations.

Visit www.activeshooterins.com for more information.

J.M. Wilson Adds Bolinger as Underwriter J.M. Wilson has announced the addition of Adam Bolinger to their North Charleston, South Carolina office. As a Transportation Underwriter, Adam is responsible for quoting new and renewal transportation risks, and serving independent insurance agents in Georgia, North Carolina, South Carolina and Tennessee.

Adam is currently attending Indiana University and pursuing a Bachelor's degree in Business Administration. Prior to joining J.M. Wilson, he worked at Baldwin & Lyons as an Underwriting Rater and Underwriting Analyst. Adam is also a Li-

2016 National Outstanding CSR of the Year Winner Kelly D. McGowan, CISR Elite

censed Property & Casualty Producer in the state of Indiana.

Meadowbrook Parent Fosun Sees CEO Resign China-based Fosun International recently announced that co-founder and CEO Liang Xinjun was stepping down due to health reasons. In addition, Senior Vice President Ding Guoqi has also resigned due to "family commitments." Fellow cofounder and billionaire Wang Qunbin has been named as the company's new CEO. Wang, a genetic engineer by training, owns 11 percent of Fosun International Holdings, as well as other business interests including Cirque de Soliel and leisure group Club Med. The surprise changes have raised concerns with investors, and the company's bonds have initially traded slightly lower since the changes on fears the departure of two key executives could hurt its acquisition strategy, analysts have said.

The changes also come on the heals of the resignation of former Meadowbrook CEO Bob Cubbin and Senior VP and General Counsel Mike Costello in 2016.

Fosun’s insurance business includes investments in Yong’an P&C Insurance, Pramerica Fosun Life Insurance, Peak Reinsurance, Fidelidade Group and Meadowbrook Insurance Group.

In December of last year, Fosun agreed to sell one of its insurance interests, Ironshore, Inc. to Liberty Mutual in a deal estimated to be in the $3 billion range. u

NOMINATE: Nominations are now being accepted for the 2017 Outstanding Customer Service Representative of the Year® award. Nominate yourself or a deserving colleague.

ENTER: Write a 1,000-word essay on the 2017 customer service topic specified on the Nomination Form.

Entries are due no later than May 1, 2017.

WIN: The national winner receives a 2,000 cash award; national finalists win $ 500; nominate the national winner, and receive $1,000! $

For more information about the award and to download forms, visit: TheNationalAlliance/CSR_Award

Get the recognition you deserve.

Get the glory for your agency.

Show your customers you care enough to be the very best.

CONTACT ELLIE SMALL AT ESMALL@INSURORS.ORG Insert contact FOR information this area.

OR CALL 615.515.2607 MOREinINFORMATION © 2017. The National Alliance for Insurance Education & Research.

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3053-0117

The Tennessee Insuror

FROM THE DELTA TO THE SMOKIES WE’RE PROUD TO SUPPORT THE INDUSTRY’S BEST.

Construction • Education • Financial Institutions • Healthcare • Manufacturing Professional Services • Real Estate • Retail • Technology • Wholesale Distribution

CNA is proud to support Tennessee’s independent agents and brokers with customized coverages, local industry knowledge and the strength and stability of an “A” rating by A.M. Best. When you’re looking for a carrier with a broad industry appetite, who understands your commitment to business success … we can show you more.® Learn more about our coverages and services today.

Contact our local Nashville Branch at 615-886-3300, or visit www.cna.com.

CNA is a service mark registered by CNA Financial Corporation with the United States Patent and Trademark Office. CNA Financial Corporation subsidiaries use the “CNA” service mark in connection with insurance underwriting and claims activities. Copyright © 2016 CNA. All rights reserved.

The Tennessee Insuror

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Remote Workers... continued from page 12 from the commute, the stress, and the long work hours.

For agencies, this talent could be the best approach to addressing growth and workload needs. By drawing from a pool of retiring or retired workers who are committed to working remotely, agencies can locate the best fit at a significantly lower cost than traditional hiring arrangements.

Most retiring and retired workers, or pretirees, come with decades of knowledge and skill that may not be available locally. Also, the remote arrangement allows agencies to tap into this talent pool without straining the budget.

There are plenty of benefits to hiring a skilled older worker under a work-from-home arrangement. A pretiring remote worker can: Free up staff time. Imagine a situation in which your inhouse staff had the time needed to serve customers and grow the business. It can happen with a remote worker. Those administrative tasks your staff spends way too much valuable time on can be handled by a skilled insurance professional.

Reduce staffing costs. Adding to your employee pool usually comes with additional expenses – benefits, dedicated office space, training and the like. Remote workers remove nearly all of those costs, and require minimal training, usually just a few days to a week learning your management systems, if they don’t already know it.

Be a consultant. If you’ve hired a truly experienced remote worker, you have at your disposal a consultant who has worked in the industry and can advise on complex issues.

And because many of these industry vets have decades of knowledge and experience, they can even help train your current staff on better ways to handle certain situations.

Improve processes. Some of the insurance professionals we’ve placed in remote work arrangements have proven to be invaluable in helping agencies find better ways to handle the business processes. The benefit to you is better productivity and happier customers, all of which translates into a better bottom line.

In an atmosphere of stiff competition and increasing demands on the agency to differentiate, a pretiring insurance professional can offer the most bang for the payroll buck.

Whether one’s needs are minimal – a few days a week for a few months – or longer term, agencies can increase staff productivity by adding remote workers to the mix. The level of talent available from a national pool of committed, skilled workers could be the differentiator that helps your agency meet its growth and profitability goals.

Work at Home Vintage Experts So, where do you find these talented individuals? You already have an Associaiton partner to help you do just that. Work 46

At Home Vintage Experts (WAHVE) is an innovative contract staffing talent solution that matches retiring, experienced, trained and knowledgeable insurance professionals with insurance firms nationwide based on specific job needs.

WAHVE delivers “pretiring” talent to fill most any insurance position and at a cost savings.

Their screening and placing process provides a complete and effective solution to talent qualifying, matching, and HR administration. WAHVE matches the right vintage talent wherever they may live to the needs of clients wherever they are located.

With WAHVE, you can: •

Fill staffing needs when you can’t find the talent, whether part-time or full-time.

•

Save on hiring, training, managing, overhead and turnover costs.

•

Free up highly-paid staff for more time with clients and prospects.

•

Generate operational efficiencies and drive growth.

How will your agency benefit?

•

Wahves are highly trained insurance professionals with 25+ years of experience.

•

You'll be matched to the best “pretiring” talent to fit your staffing needs.

•

You interview them and choose the right person for the job.

•

Your wahves are ready to go with minimal training.

•

They are highly productive, have a great work ethic and are tech savvy.

•

They are there for you for the long-term and on a dedicated basis.

Visit http://www.insurors.org/IOT/Products_and_Services/ Endorsed_Programs/WAHVE/IOT/Products_and_Services/ WAHVE_Page.aspx or www.wahve.com for more information.

About the Author Sharon Emek, Ph.D., CIC, is president & CEO of Work At Home Vintage Experts, an innovative contract staffing talent solution. WAHVE matches retiring insurance professionals leaving the regular workforce to insurance firms to meet their full- or part-time staffing needs. Insurance firms benefit by improving productivity and lowering costs.

WAHVE’s unique qualifying process and technology platform match the right “pretirees” wherever they may live to the needs of insurance firms wherever they are located. Contact Sharon at sharon.emek@wahve.com. u The Tennessee Insuror

The Tennessee Insuror

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...Online Brand Matters continued from page 8 tracted with Titan Web Marketing Solutions (see page 39), to give you a source for website creation, online marketing, social media strategy, video marketing and search engine optimization (SEO) support.

Worried about costs? Don't forget your agency is eligible for a free online marketing review and may be eligible for up to $1,250 in marketing reimbursement from Trusted Choice.

Visit http://www.insurors.org/IOT/Products_and_Services/ Trusted_Choice_Online_Marketing_Review.aspx for more information.

Still not convinced about adding an online brand to your traditional efforts? Check out these tips from Mark Babbitt, coauthor of bestseller A World Gone Social: How Companies Must Adapt to Survive:

How Your Traditional Agency Can Thrive in the Social Age The past few years mark a tremendous shift in communication among service-based businesses. In this new social age, how can your "traditional" and established business keep up?

How do you maintain “the way we’ve always done it” while implementing “the way things work now” to compete and grow?

Here are five characteristics of traditional companies, agencies and local leaders that have found a way to thrive in the social age: They know social is a mindset. Far too many old-school organizations—and their leaders—believe being “social” is about posting on Twitter, Facebook and Pinterest. They don’t realize social engagement isn’t any one of these tools, and it cannot be defined by a platform or technology.

Social is about listening—sharing knowledge and engaging.

It’s about meeting your customers where they are and being relevant in the communities you serve. Social is how you present yourself, virtually and in person. Social is talking with your stakeholders—customers, fellow community members and employees—not at them. And always remember: Those customers and employees talk about your brand on social and digital media, whether you’re listening or not.

They create an OPEN culture. From “A World Gone Social,” OPEN stands for Ordinary People | Extraordinary Network.

The acronym is about reconsidering how you solve problems and face challenges. It means customers, employees, vendors and even competitors can offer input that leads to innovative solutions and better service. Simply put, OPEN means getting the right people in the right room at the right time.

By breaking down the hierarchal communication barriers and gathering community members, local service providers and 48

even underwriters at the same table, real-world insights develop faster. Everyone becomes a solution-focused contributor. Every stakeholder has a voice.

They maintain consistent public relations efforts. It’s important to have a reputation as a charismatic leader. Even if you’re not in the news as often as Arianna Huffington, Richard Branson or Elon Musk, you should be consistently present as the face of your business online.

However, as many agencies have learned, attempts to force an unsocial person to be likeable on social media can prove disastrous.

The goal here is simple: Present a passionate member of your team as your agency’s brand ambassador. The ambassador makes in-person and online appearances that benefit the community and the agency alike. They may lead a Facebook group that supports community efforts, or create a blog or podcast about local issues. Just as important, they consistently contribute to local business associations.

The key is that this person avoids talking about themselves or the agency all the time. Instead of becoming known as selfpromoting spammers, your brand ambassador should promote the work of fellow community champions on Twitter, Facebook, Instagram and in person. With every appearance, the social face of your agency builds credibility and brand awareness.

They demonstrate social responsibility. In the social age, local business leaders are expected to care more—to be sincere, approachable and even vulnerable. Have something to celebrate? Talk about what it means to the community and the people you serve—but don’t mention how it impacts your business.

They thrive on testimonials. Because the social age has spawned self-promoters and spammers, many of us have become immune to people talking about themselves. Rather than place trust in advertising, consumers now flock to online sources for objective perspectives on the ways businesses serve their customers and community.

To grow your business without spamming, you must get so good at what you do that existing customers start doing the talking for you. Through endorsements and recommendations online, including social media Yelp, TripAdvisor and other sites, let others become the voice of our agency. Soon, you will no longer need to invest in huge advertising campaigns featuring enormous headshots. Instead, you will grow through genuine affection for your brand and positive word of mouth, both online and off.

By leveraging the positive aspects of the social age, many agencies find a renewed passion for their communities. Their employees and brand ambassadors have a newfound purpose: competing in the local marketplace in all the right ways. u The Tennessee Insuror

Innovative, Not Conventional Niche Workers’ Compensation and Commercial Line Coverages for Main Street America Get started with an agency appointment application at amtrustappointments.com/T2.

A.M. BEST RATING OF “A” (EXCELLENT), FSC “XIV”

The Tennessee Insuror

49

Safe. Strong. Stable.

Insuring businesses for 175 years.

The Mutual Fire Insurance Company in Harford County was founded in 1842 to protect the citizens and businesses in the small rural town of Bel Air outside Baltimore, Maryland. As a mutual company, we’ve always put our policyholders first, working with our independent agents to grow responsibly and cautiously. Now a large regional carrier serving seven states and Washington, DC, we are celebrating 175 years of always being Committed to Mutual Success.

HarfordMutual.com | 800.638.3669 50

The Tennessee Insuror

Meetings

Spring Golf Tournaments and Events Nashville Local Board Golf Tourney May 1st The Insurors of Nashville Golf Tournament will take place on May 1st at Old Natchez Country Club in Franklin. All players will be treated to an arrival gift, lunch, 18 holes of championship golf, on-course beverages and snacks and an after-play social.

Even if you don’t play golf, come out for the after-play social with complimentary beer, wine, hors d’oeuvres and door prizes.

Visit http://www.insurorsofnashville.com/site/event/annualgolf-tournament/ for more information on the event or to register online.

Big "I" Legislative Conference May 3-5 Protect Your Industry – join the Big "I" May 3-5, 2017 at the Renaissance in downtown Washington, D.C. for the premier insurance industry legislative event. Attend this one-of-akind legislative event for the independent agency system and educate members of Congress on issues important to you and your clients.

Registration includes an in-depth issues briefing, legislative breakfast with high-profile Congressional speakers, a general session and networking opportunities. See more information or register online now by visiting http://www. independentagent.com/Events/LegislativeConference/ home.aspx

Insurors of Memphis Golf & Picnic May 16th The Insurors of Memphis Annual Golf Tournament and Picnic will be held May 16th at Windyke Country Club. The event will feature a lunch, golf tournaments in the morning and afternoon, and a dinner with prizes after the conclusion of play. Please contact Alex Mathis at amathis@mtmins.com for registration and more information.

Northwest Tennessee Insurors Golf June 6th The annual Insurors of Northwest Tennessee Golf Tournament and dinner will be held on June 6th at the Dyersburg Country Club at the Farms. The event features a lunch, golf scramble, reception and the famous pork chop dinner and prize giveaway. Contact Matt Russell at mrussell@westaninsurance. com for registration and more information. u The Tennessee Insuror

Could your agency weather a data security breach?

A full 80 percent of businesses that experience one don’t.1 The right insurance can keep your agency from becoming part of this startling statistic.

Data breaches are common among smaller businesses, and responding to a breach is both costly and complex.

You are obligated to protect the data you collect, and package policies are often not enough.

Make sure your agency has the right coverage in place to protect you and your insureds.

Contact your Insurors E&O Specialist, Stephen Holmes, CIC, CISR, for information on Data Breach coverage.

1. Privacy Rights Clearinghouse: Chronology of Data Breaches

Stephen Holmes, CIC, CISR sholmes@insurors.org 615.515.2609

51

YOU KNOW OUR

SERVICE-CENTERED WAY OF DOING BUSINESS

We form trusting relationships built on loyalty and integrity. What sets us apart is far more than what we do — it’s how we do it.

Join Us MEGAN WETLI MEGAN.WETLI@MOTORISTSGROUP.COM | 614-225-8389 CHRISTOPHER SNYDER CHRISTOPHER.SNYDER@MOTORISTSGROUP.COM | 513-490-5816

®

Your customers deserve the best PROTECTION. RLI Personal Umbrella Policies are DIFFERENT.

Member Tips

Mythbusting: Tips for PUPs

written by April Shrewsbury, Big "I" Advantage

Here's a common myth we're about to bust: • •

MYTH: A personal umbrella is something I only need to offer to wealthy customers.

TRUTH: Because anyone can be sued, everyone needs a personal umbrella.

Both agents and insureds are guilty of thinking that a personal umbrella is only for the wealthy, but that couldn't be farther from the truth. Here are several ways to help your customers understand that they need an umbrella even if their last name isn't Gates or Rockefeller.

TIP #1: Explain in layman's terms what an umbrella is...an affordable way to protect themselves if someone sues them for more than what's covered by their basic policy. Make it simple and don't use insurance jargon that leaves your customer glassy-eyed.

TIP #2: Provide real life examples (such as these) of claims that have impacted "the average Joe". Most people would purchase an umbrella if they truly understood its value in a personal, relatable way.

TIP #3: Clarify that a single judgment can exceed their savings, the value of their home and other assets...putting their FUTURE earnings at risk. Renters are especially vulnerable to judgments that garnish wages and future earnings.

TIP #4: Advise that an umbrella covers defense costs. Besides the threat of a costly judgment, your customer will also have to pay to defend themselves, even if the suit is frivolous. A defense attorney may charge anywhere from $100 to $800 per hour...but a personal umbrella pays defense costs in addition to the insured's limit of coverage.

They stand alone. RLI, A+ rated by A.M. Best, has over 30 years of experience providing affordable personal umbrella coverage - so your customers can protect their hard earned assets.

CONTACT Stephen Holmes sholmes@insurors.org 615.515.2609

TIP #5: Show that an umbrella is an affordable way to obtain a lot of coverage. Depending on the insured's location, a Personal Umbrella averages just $250 in premium – that's just $20 per month for $1 million in personal liability protection.

Armed with these simple tips, you'll find it easier to write more personal umbrellas, thereby protecting the customers who trust you, increasing client retention, and guarding yourself against "failure to offer" E&O claims. Keep in mind that you have access to the IIABA-endorsed RLI Personal Umbrella, which offers limits of up to $5M ($1M in NM) and excess UM/UIM nationwide. Visit insurors.org/IOT/Products_and_Services/ Markets/RLI/IOT/Products_and_Services/RLI_Products.aspx or email sholmes@insurors.org for more information. u

Directory of Advertisers Advertiser

Phone

Website

Page

ACUITY (920) 458 - 9131 www.acuity.com 47 Amerisafe (800) 897 - 9719 www.amerisafe.com 22 AmTrust North America (877) 528 - 7878 www.amtrustnorthamerica.com 49 Applied Underwriters (877) 234 - 4450 www.auw.com/us 2 Arlington/Roe (800) 878 - 9891 www.arlingtonroe.com 9 Bailey Special Risks, Inc. (800) 768 - 7475 www.bsrins.com 16 Beazley Cyber Liability (615) 515 - 2609 www.insurors.org 51 Berkley Southeast Insurance Group (615) 932 - 5508 www.berkleysig.com 19, 20 Berkshire Hathaway Guard Insurance Cos. (800) 673 - 2465 x4567 www.guard.com/apply 24 Big "I" Professional Liability (615) 515 - 2609 www.insurors.org 55 BITCO Insurance Companies (800) 342 - 5786 www.bitco.com 37 Brentwood Services Administrators (800) 524 - 0604 www.bwood.com 24 Builders Mutual (800) 809 - 4859 www.buildersmutual.com 22 Burns & Wilcox (800) 341 - 4844 www.burnsandwilcox.com 7 CNA Insurance (800) 251 - 5852 www.cna.com 45 Consumers Insurance/Motorists (615) 896 - 6133 www.ciusa.com 50 Donegal Insurance (800) 277 - 7442 x3418 www.donegalgroup.com 7 EMC Insurance (800) 239 -2005 www.emcins.com 17 FCCI Insurance Group (800) 226 - 3224 www.fcci-group.com 6 Harford Mutual (800) 638 - 3669 www.harfordmutual.com 52 INSBANK (866) 866 - 4268 www.insbanktn.com 11 Insuror Services, LLC (800) 264 -1898 www.insurors.org 28-29 Jimcor Agencies (678) 952 - 3023 x1418 www.jimcor.com 32 J.M. Wilson (800) 595 - 0063 www.jmwilson.com 42 Keystone Insurers Group (800) 416 - 5498 www.keystoneinsgrp.com 40 Martin & Zerfoss/Chubb (615) 297 - 8500 www.martinzerfoss.com 15 National Security Group (800) 239 - 2358 x267 www.nationalsecuritygroup.com 41 Nationwide Insurance (423) 927 -2060 www.nationwide.com 30 Penn National Insurance (800) 395 - 0518 www.pennnationalinsurance.com 56 Preferred Property Programs (888) 549 - 2465 www.umbrellaprogram.com 42 RLI PUP (615) 515 - 2609 www.insurors.org 53 Securerisk (770) 723 - 8096 www.securerisk.com 36 South & Western (800) 492 - 5351 www.southandwestern.com 33 Summit Holdings (800) 971 - 2667 www.summitholdings.com 26 Titan Web Marketing Solutions (615) 890 - 3600 www.titanwms.com 38 UFG Insurance (800) 343 - 9125 www.ufgsolutions.com 34 WAHVE (646) 807 - 4372 www.wahve.com 13

register now at iiaba.net

“Sustainability, service, and partnership are at the core of our long-standing promise to independent agents.”

The Big “I” Professional Liability program was created by and for independent insurance agents. As Swiss Re Corporate Solutions’ steward of this 28-year program, I’m proud to say that we’ve built the leading national program working hand-in-hand with independent agents every step of the way.

At the foundation of this program’s substantial success is our relationship with IIABA and each Big “I” state association.

We work together in harmony with the shared goal of providing Big “I” members with nothing less than the best possible product. Program sustainability serves our mutual long- term goal of enhancing the security and success of independent agents.

Sabrena Sally, CPCU Head US Agents Swiss Re Corporate Solutions

Our dedicated underwriters and claims staff also take great pride in the program and in their record of superior customer service. We strive to provide an unparalleled experience and working with the talented state administrator staff listed at right we hope to continue to make Swiss Re Corporate Solutions synonymous with the highest service acumen.

Another unique program feature is that we work in partnership with a committee of working independent agents to ensure that we’re not only offering agents an insurance product, we’re offering agents a seat at the table. Agent input has directly affected the architecture of our policy forms and I believe that that input is also an important part of their strength.

It’s my goal to see the program continue to provide broad coverage, excellent claims service, and meaningful risk management tools to independent agencies countrywide. We look forward to serving you and your agency for years to come.

To receive a proposal, contact your state E&O program manager. Visit www.iiaba.net/EOContact.

2500 21st Avenue South Suite 200 Nashville, TN 37212

PRSRT STD U.S. Postage PAID Nashville, TN Permit No. 380

We look for the best independent agents and build relationships that last the duration. We are committed to the independent agency system as the only means to deliver our products. Because of that, we work hand-in-hand to help our agencies grow profitably.

Our agents set us apart.

Business • Surety • Auto • Home

www.PennNationalInsurance.com