The Tennessee Insuror - May/June 2016

THE TENNESSEE

INSUROR May/June 2016

Vol. 27 No. 3

www.insurors.org

8 10 48

The New DOL Overtime Rule Stats, Facts & Tips for Growth

Some Perspective on E&O Claims

OCTOBER 29 NOVEMBER 1

123rd ANNUAL CONVENTION

NASHVILLE

Already There

Lonestar Frontman Richie McDonald Will Headline the Insurors of Tennessee 123rd Annual Convention

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The Tennessee Insuror

contents

THE TENNESSEE

INSUROR Vol. XXVII, Number 3 May/June 2016

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.

4 Already There INSURORS OFFICERS

President ............................. Christie Reeves, CIC, CPCU, CPIW Immediate Past President ......................... Cindi Gresham, CIC IIABA National Director ......................................... Lou Moran III Vice President, Region I ..................................... Chris Allison, CIC Vice President, Region II ................................................... Joe Hunt VP, Region III and President Elect ................ John McInturff III Treasurer .............................................. Battle Bagley III, CIC, CPA Secretary ...................................................................... Rush Powers Director, Region I ....................................................... Portis Tanner Director, Region I ............................................ Stephen Masterson Director, Region I .......................................................... Tim Roberts Director, Region II ....................................................... Chip Fridrich Director, Region II .................................. Matt Swallows, CIC, CRM Director, Region II ................................................. Steve Copeland Director, Region III ..................................................... Kevin Ownby Director, Region III .................... Kym Clevenger, CPCU, CACW Director, Region III .................................................... Eric Campbell Young Agents Chairperson .................................. Brent Chance

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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.

Lonestar Frontman Richie McDonald will Headline Insurors Convention

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The New DOL Overtime Rule

10

Stats, Facts & Tips for Growth

12

Are You Ready for Voting Season?

14

Daniel Learns About Ins.: Stick to Your Guns

48

Some Perspective on E&O Claims

departments 21

From Your President

Reflections From the Capital

23

From Your IIABA National Director

25

From Your CEO

29

Education Calendar

31

Government and Legal Affairs

37

Programs Spotlight

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

Don’t Misfire on Insuring Firearm Collections

No “Typical” Day for An Independent Agent So, When is the Next Election?

New Agency Employee Resources

39 Company Spotlight

ACUITY 51 Meetings 53

Member Tips

Disability: A Gamble Worth Taking?

3

Already There

Lonestar Frontman Richie McDonald Will Headline the Insurors 123rd Annual Convention

Richie McDonald was born on February 6, 1962 in Lubbock, Texas. A lifelong lover of country music, he began performing in Nashville at Opryland USA. It was there that he met fellow Texans Michael Britt, Randy “Keech” Rainwater, Dean Sams and John Rich. The group founded the band Texassee in 1992, before changing their name to Lonestar. Lonestar signed to BNA Records in 1995, and with McDonald as lead vocalist, they released seven studio albums, a Christmas album and a greatest hits package.

Lonestar charted more than 20 singles on Billboard’s “Hot Country Songs,” including 9 that reached Number 1; “No News,” “Come Cryin’ to Me,” “Amazed,” “Smile,” “What About Now,” “Tell Her,” “I’m Already There,” “My Front Porch Looking In,” and “Mr. Mom.” “Amazed” also charted at Number 1 on the Billboard Hot 100, becoming the first country song to do so since “Islands in the Stream” acheived the feat in 1983.

McDonald left the band in 2007, pursuing a solo career that saw him chart twice as a guest vocalist on other recording artists’ songs, in addition to releasing two independent albums and four solo singles. He rejoined the Lonestar as the lead vocalist in 2011, helping the group write, record and release two new studio albums – Life as We Know It in 2013 and the newly released Never Enders, which debuted in the Top 50 in the Billboard U.S. Country album chart and features the title track as their current single.

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A Well-Known Talent in the Country Music Industry Richie McDonald has long been one of music’s most accomplished and wide-ranging talents. Recognized as one of country’s best singers and a polished and engaging entertainer, McDonald is the face and voice of Lonestar, ranked among the genre’s preeminent groups. As one of the industry’s most successful songwriters, he has penned some of the era’s most memorable songs and earned a mantle full of awards and nominations.

McDonald is considered one of the preeminent singers, performers and songwriters of the Country music genre

The list of accomplishments McDonald brings is among The Tennessee Insuror

music’s most noteworthy. His is the voice behind songs like “Amazed,” “Smile” and “No News” and the pen behind songs like “My Front Porch Looking In” and “Let Them Be Little.” He has earned six gold and platinum albums, several CMA and ACM awards as well as BMI awards for songwriting. In writing and singing “I’m Already There,” he was responsible for a song embraced so warmly by the military and their families it became an unofficial anthem for U.S. troops serving the Middle East.

The current Lonestar lineup features McDonald on lead vocals, along with Michael Britt, Keech Rainwater and Dean Sams.

“That has to be the most rewarding part about writing songs,” he says, “when you can actually see the effect it has had on other people’s lives.” In addition to his group and solo work, Richie has had a big role and writing and recording with other respected country artists. He sang background vocals on Mindy McCready’s 1997 single “Maybe He’ll Notice Her Now,” which reached No. 18 on the Billboard country charts.

He has also co-written singles for other country music artists, including “She’s Always Right” by Clay Walker, “Jimmy’s Got a Girlfriend” by The Wilkinsons, “Let Them Be Little” by Billy Dean (which Lonestar itself also recorded), “Coalmine” by Sara Evans, and “Once a Woman Gets a Hold of Your Heart”

by Heartland.

The Second Act of a Career After more than twenty years of success in Country music, Richie is finally finding some balance between being an artist and building a life and career. “I feel like I have reached a crossroads in my personal and professional life,” he says. “I want to have a better balance and spend more time with my family and yet keep being an artist, hopefully making music that can really make a difference in people’s lives.”

Richie also released a Christian record (“Something I always wanted to do and another side of me the fans get to hear”).

McDonald is embracing as strongly as ever the wide-ranging nature of his musical talents.

“Songwriting, recording and live performance are all connected for me,” he says. “My passion is writing, but when I write a song and get to record it myself, it means that much more to me because then I get to perform it. I think they’re The Tennessee Insuror

all intertwined and I don’t think I could do one without the other. Still, I feel like it all starts with the song, and the rest will take care of itself.”

McDonald released Christian album “I Turn to You” in 2008.

It peaked at number 6 on the Billboard Top Christian Albums chart.

McDonald released Slowdown, his second solo album, in 2010. This album included “How Do I Just Stop”, which peaked at number 51.

“Nobody said it was going to be easy,” he says with a characteristic smile. I think the great thing is I do have relationships I’ve built over the years. It’s nice to go into a radio station and see familiar faces and not feel like a total stranger.”

He is renewing those relationships as an artist extending his impact on the musical genre he loves, and a family man deepening his ties at home. He currently lives near Murfreesboro with his wife, Lorie and their three children. As he carves out the proper balance between home and road, he is looking forward to the joys and thrills of that connection with his audience.

Being on stage is a thrill that never gets old for any performer, and for Richie McDonald, it is one he can see both through his windshield and in his rear-view mirror. “I’m grateful every day,” he says, “for the chance to continue to do something I love so much.”

Insurors 123rd Annual Convention Performance Richie McDonald will perform live for attendees at the Insurors of Tennessee 123rd Annual Convention, taking place October 29th - November 1st in Nashville. His concert will be on Sunday evening, October 30th at the Ford Theatre inside the Country Music Hall of Fame and Museum. He will perform many of his hits from Lonestar as well as some of his solo material.

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In addition to our special guest entertainment, the convention will feature the largest tradeshow for independent agents in Tennessee; special guest speakers including Vaughn Graham of the Big “I” Executive Committee; networking and social functions; golf at Richland Country Club; a special Government Affairs session and a unique wine collection insurance course at City Winery Nashville.

The Ford Theatre inside the beautiful Country Music Hall of Fame

The beautiful Omni hotel in the heart of downtown Nashville will be the host venue for this year’s convention

For more information, or to register now, please visit www.insurors.org/IOT/Convention/IOT/Convention/IOT_ Convention_Home.aspx. u

Picturesque Richland County Club will host our golf outing

OCTOBER 29 NOVEMBER 1

123rd ANNUAL CONVENTION

NASHVILLE JOIN US AT THE OMNI IN NASHVILLE FOR: EXHIBITS • NETWORKING • ENTERTAINMENT EDUCATION • AND MORE...

ONLINE REGISTRATION IS NOW OPEN VISIT INSURORS.ORG TO REGISTER NOW

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The Tennessee Insuror

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Staying true to our chosen course of supporting the independent agency system… another way Donegal is “There When It Matters Most.”

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The Tennessee Insuror

7

The New DOL Overtime Rule Questions, Answers and Concerns - Oh My!

The following article initially appeared in the March issue of IA magazine.

Last week, the Department of Labor (DOL) finalized a rule that will have a significant impact on many Big “I” agencies and their business clients.

The DOL rule updates a regulation that exempts certain employees from overtime and minimum wage requirements— commonly referred to as the “white-collar” exemptions. The new rule will require employers to pay overtime to many employees who were not previously entitled to it. In order to comply with the new rule, which is set to take effect on Dec. 1, 2016, employers should review and adjust employee salaries and overtime eligibility status.

In response to numerous questions about the rule, the Big “I” has prepared a Q&A document that summarizes the rule changes and provides information specific to insurance agencies regarding how the changes interact with current federal law under the Fair Labor Standards Act. The DOL has also issued various guidance documents related to the rule.

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by Jennifer Webb, Big “I” Gov. Affairs Counsel In short, under the rule: •

• •

•

For any employee who is classified as exempt—does not require overtime pay—under the administrative, executive, professional or computer “white-collar” exemptions and who makes less than $47,476, employers must either re-classify them as non-exempt—requires overtime pay—or raise their salary over the threshold. The $47,476 threshold is a 100% increase from the current $23,660.

Nondiscretionary bonuses and incentive payments, including commissions, can satisfy up to 10% of the $47,476 salary threshold.

Any employee who is properly classified under the “highly compensated employee” exemption must earn at least $134,004 in total compensation. The $134,004 threshold is a 34% increase from the current $100,000.

Starting in 2020, both the $47,476 and $134,004 thresholds will be automatically updated every three years. The thresholds are expected to reach $51,168 and $147,524, respectively.

In addition to providing assistance to Big “I” members on the The Tennessee Insuror

substance of the new rule, the association continues to advocate before the Obama Administration regarding the negative impacts of the rule as implementation moves forward.

The DOL has made a number of adjustments since its first proposal, though the Big “I” remains concerned about the impact the rule’s provisions will have on member agencies.

When the DOL first proposed the update to this rule in the federal register in July 2015, the Big “I” submitted written comments to the DOL and met with the Administration to convey its concerns. Big “I” and member advocacy helped lower the salary threshold from $50,440 to $47,476; extend the time between salary threshold updates from one year to three years; extend the time for employers to comply with the threshold updates from 60 days to 150 days; change the measure the DOL uses to set the salary threshold to a statistic that better reflects lower cost-of-living regions; and, for the first time, permit the inclusion of commissions to satisfy up to 10% of the salary threshold test. Big “I” advocacy also helped stop potentially burdensome changes to the “duties test.”

At the legislative level, the Big “I” and its member agents have had numerous meetings with members of Congress and provided congressional testimony in relation to this rule. The Big “I” is also actively participating with the Partnership to Protect Workplace Opportunity, a coalition comprised of a diverse group of businesses and trade associations on congressional advocacy efforts.

Advocacy efforts will continue, including the association’s support of S. 2707 and H.R. 4773, the “Protecting Workplace Advancement and Opportunity Act,” by Sens. Tim Scott (RSouth Carolina) and Lamar Alexander (R-Tennessee), and Reps. Tim Walberg (R-Michigan) and John Kline (R-Minnesota). The legislation would halt the current rule and forbid the DOL from re-proposing it unless it meets certain conditions, including protections for small businesses. Congress is also considering options to halt the rule under the Congressional Review Act, which allows the U.S. Senate and House of Representatives to vote on a joint resolution of disapproval to stop a federal regulation.

The Big “I” will continue to actively support legislative efforts ahead of the December 1st effective date. However, any successful legislation is likely to face a Presidential veto. The Big “I” Q&A document on the rule may be downloaded at http:// www.iamagazine.com/docs/default-source/Legislative-Activity/dol-overtime-q-and-a.pdf.

About the Author Jennifer Webb is the Big “I” Government Affairs Counsel. Webb joined the association’s bipartisan lobbying team in 2015 and primarily serves as a liaison to Democrat congressional offices. She also assists in formulating federal policy positions. She may be contacted at Jennifer.webb@iiaba.net. u

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Stats, Facts & Tips for Growth

written by Jennifer Becker, Big “I” Director of Ed. Programs

A wealth of potentially profitable ideas awaits readers of the 2015 Best Practices Study Update. The latest release includes data from the actual reported results of the 213 Best Practices participating agencies (including seven agencies from Tennessee). Stay on top of the latest financial and benchmarking information with the 2015 Update and see how the economy, market and insurance environment are affecting some of the best agencies in the country.

You can search and sort these results in numerous ways, beginning with the data specifically applicable to your agency revenue size, with six categories ranging from “under $1.25 million” to “over $25 million.”

Once you’re there, dig deeper to compare according to: • • • • •

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Revenue: by source, niche, account concentration or size, and acquisition information Expenses: compensation, selling, operating, administrative and change over the past year Profitability: ratios for profit/loss, as well as financial stability Producer information: number (commercial, personal, life-health), commissions, compensation, time management and source of hire Technology: staffing, expense and vendor or type of system Carriers: number represented, commission and revenues, and use of service centers

You can also uncover other topics of interest to your future planning, such as agency corporate structure, employees by number and responsibility, population density of home location, best sources for recruiting employees and average number of locations. There is a surplus of information available for your use.

Order the study in electronic format ($59.95) or as a hardcopy ($99.95) by visiting http://www.independentagent. com/Resources/AgencyManagement/BestPractices/Pages/ Products/2015-Best-Practices-Update.aspx.

Learn more about Best Practices online at http://www.independentagent.com/resources/agencymanagement/bestpractices/Pages/default.aspx, and be sure to check out the free webinar series Best Practices for Agency Operations, which will continue on June 15th with a 15-minute session on mergers & acquisitions. Register for the webinar now at http://www.independentagent.com/Resources/AgencyManagement/BestPractices/Pages/Webinars/default.aspx About the Author Jennifer Becker is the Director of Educational Programs for the Big “I” National Association. She helps coordinate the Big “I” Best Practices Study and its associated materials. She may be contacted at jennifer.becker@iiaba.net. u

The Tennessee Insuror

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Are You Ready for Voting Season?

State Mobile App Can Help Clear the Confusion on Voting

As the polls draw closer to opening for early primary voting on Friday, July 15th, many Tennesseans have questions about where to vote, how to vote, and who is running their district. The solution? The State’s new GoVoteTN application for mobile devices. Secretary of State Tre Hargett introduced the app as an easier way to access information about polling places, candidates, districts and elected officials.

written by Dakota Weatherford

Tech University and her experience ranges from the Wilson County Mayor’s Office, Chamber of Commerce and the Convention and Visitors Bureau. She may be contacted at dweatherford@insurors.org. u

The GoVoteTN app is broken down into four categories: • • • •

Search by voter Search by address Election results and/or Full site

Since Tennessee is divided into several districts for one voter, knowing who will be on the ballot could be confusing. This allows individuals to locate and access their information quickly and accurately.

Helpful Features for Voters The app is provided by the Tennessee County Election Commission and is available for Apple and Android devices as well as online. You can easily access the download by going to your phone’s app store or marketplace. The app is updated by each County’s Election Commission for the fastest and most accurate information.

Once downloaded, it has many featured highlights including Early Voting and Election Day polling locations and hours of operation. Since there are several locations to vote, this creates a simplified way for voters to schedule a time during their day to get out and vote. It also offers navigation to your polling site. You will also have the ability to mark sample ballots for your district, eliminating confusion when at the ballot box.

In addition, the app provides online election results for each voting district.

With all of these features provided, voting is made easier and hopefully more efficient. Download your GoVoteTN app today and be prepared for when you arrive at the polls to vote.

Think the next election isn’t until November? Be sure to read our CEO’s article on page 25 for more info.

About the Author Dakota Weatherford is the Marketing & Research Associate for Insurors. She earned a public relations degree from Tennessee 12

The Tennessee Insuror

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The Tennessee Insuror

13

Daniel Learns About Insurance: Stick to Your Guns?

Don’t Misfire on Insuring Firearm Collections

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.

Let’s admit it, most of our State loves guns. Earlier this year, the State Legislature even passed a resolution naming the Barrett .50 caliber rifle as the official “State Rifle.” The rifle is manufactured by Barrett Firearms in Christiana, Tennessee, and is powerful enough to bring down a small aircraft. How much does an official state rifle set you back? Around $6,000 in this case.

Think $6,000 is a lot for a firearm? Recently we were in Memphis and took a look around their gigantic Bass Pro Shop and the Beretta Gun Lounge within it. On display was a hand-assembled, hand-tooled Beretta shotgun at an asking price of $84,000. While that may be a bit extreme, guns – and gun collections – can quickly add up in value. So, how do you make sure that these collections are fully covered?

Is a Homeowner’s Policy Enough?

For small collections, a Homeowner’s policy may be all that is required to insure them. Most HO or Renter’s policies will cov-

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written by Daniel Smith

er guns up to a sub-limit (often between $2,000 and $3,000).

This will cover guns from theft, fire and some catastrophic events.1 For slightly larger collections, scheduling out personal property coverage may be an option – although some carriers may exclude or limit collections coverage from their policies.

Many gun owners are members of the National Rifle Association (NRA). The NRA provides an insurance policy for members that covers, “firearms, airguns, bows and arrows against theft, accidental loss and damage” up to $2,500. They have additional coverage available for $17.40 per $1,000 in coverage.1 However, larger collections are often best insured with blanket protection. A blanket policy will allow collectors to cover their guns without providing serial numbers, and in some cases, without providing details of the guns being covered. Scheduling higher value firearms is also an option, but in those cases serial numbers, detailed descriptions and possibly a certified appraisal will be required.

When working on a policy for gun collections, some of the coverage concerns to be aware of include accidental breakage, burglary and theft. Additional coverages for travel and transit, exhibition and storage may be of interest to the insured. Inflation or appreciation may also be an optional cov-

cc A U.S. soldier aims his Barrett .5o caliber rifle dur-

ing field training. Image credit U.S. Army via Flickr The Tennessee Insuror Creative Commons

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erage for firearm collections.

Historic Firearms and Valuation Historic firearms must also be taken into consideration. Some of these classic weapons can hold values into the hundreds of thousands. In these cases, it is likely that a competent appraisal will be needed to accurately determine the value of coverage. One place to begin is the Blue Book of Gun Values. This trusted resource is known by gun collectors as the clearing house for gun information. You can look up values on their website, request information or ask for a formal valuation.

An antique flintlock pistol

Don’t make the mistake of letting your client believe that since their firerms are “antique” that they will not be excluded as standard firearms under homeowner’s policies. That was exactly what happened to a homeowner in California who had 19 antique firearms stolen from his home.3 He owned the guns merely as investments, and had never fired them. Since the guns met the definition of “antique firearms,” as defined by the U.S. Gun Control Act of 1968, 18 U.S.C. § 921 et seq., the owner believed they should not be subject to the policy limits for theft of firearms. A California appeallate court disagreed with his position, siding with the insurer who only reimbursed him for his $5,000 policy limit.

Several insurers and MGAs have experienced staff in handling firearms and collectibles insurance. Make sure you consult with such experts to get your insured the most “bang for the buck” on gun collection insurance.

1-Per “Guns and Insurance – A Firearm Owner’s Guide” via https://news. leavitt.com/personal/guns-and-insurance-a-firearm-owners-guide/ 2-Per “Affordable NRA Endorsed Gun Collector Insurance” via https://mynrainsurance.com/insurance-products/firearms-gun-collector 3-Per “Watch Out For Those Policy Limits on Valuable Collections” via http:// www.propertyinsurancecoveragelaw.com/2014/10/articles/insurance/ watch-out-for-those-policy-limits-on-valuable-collections/

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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.

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The Tennessee Insuror

17

Future Leaders Spotlight

presented by

Brandon Clarke, CIC • John Bailey Company - Knoxville Brandon Clarke is a Knoxville native who graduated from Farragut High School. After college he worked on the MGA side of the business before returning home to Knoxville to work in the family agency. He lives there now with his wife Lauren and their three daughters, Emerson, Taylor and Bankston. He is active in his community, passionate about helping the younger generation and enjoys playing golf in his spare time.

Brandon Clarke of John Bailey Company

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

Brandon: I serve as the President of John Bailey Company. I manage the agency, put processes in place to service clients and make life easier for our team, work with our agency partners, and establish relationships with clients. It is very important to me to be in the trenches with my team. Often, I will process certificates and Acord forms, market accounts, take out the trash, go to the P.O. Box and work weekends.

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

Brandon: I graduated from Farragut High School and went on to earn my diploma from Ole Miss, receiving a Bachelor’s degree in General Business in 2001. I completed my CIC designation in 2009.

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

Brandon: As a second generation independent agent owner, the family business was obviously always an option for me. During an insurance class at Ole Miss, Greg Thompson (former president of Thomco later sold to Markel, currently the Senior Managing Executive for Programs at Markel), came and spoke to our class about insurance. I was intrigued by how he explained the expertise of examining a business and breaking down risk. That was really the moment that sealed the deal for me. I knew then that I wanted to be an insurance entrepreneur. So if you ever have a chance to speak to a group of college or high school kids, please do it! You may 18

be surprised by the impact you can make on someone’s life.

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

Brandon: My dad, John Clarke, is my role model. I have watched him grow the business and I don’t know anyone who has worked harder. Surely there were tough times growing up, but my sister and I never knew. Now he has left his legacy and his life’s work with me and my family.

Building the business with him over the last 10 years has been the best time of my life to date. Every day with him I learn something new about business and life. Tom Gillingham and Glenn Sudol (from my previous MGA underwriting/ marketing position in Denver at Gillingham & Associates) taught me everything about reading policy forms, processes and building relationships. Another mentor was Coach Don Meyer. He taught me about goal setting and mental approach when I attended his Lipscomb Basketball camps.

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

Brandon: My advice to young agents is to be teachable and have a willingness to learn, soak everything up and then create action with your knowledge. The world only cares about what you have to offer. Being good with people is not a skill, working hard isn’t a skill, your Master’s degree doesn’t offer anything to the world. Insurance is a skill - you must learn and practice it over and over again.

I like the “10,000 hours to achieve mastery” rule from Malcolm Gladwell’s Outliers – it takes 10,000 hours to really understand insurance; most people quit before they even get there.

Where you put your time in will define what you know and what skills you develop. Insurance is hard work – there is no 4 hour work week. If you’re looking for that you’re in the wrong industry.

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?

Brandon: Much of what is available today is driven by historical data and call centers, which is great for efficiency, but isn’t a long term recipe for success. Relationships are sustainable. Great companies hire great people. It has always The Tennessee Insuror

been that way and we invest our resources with the ones that we identify as having those traits.

The Insuror: You have worked hard to become an expert on Cyber Insurance. Why do you feel that is such an important subject?

Brandon: Data is the new liability, and disruption in the business markets has changed the way businesses operate. If you aren’t selling cyber liability you are a dinosaur.

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

Brandon: Thank you. I truly believe that the future of our industry depends upon the relationships we establish with other high quality insurance professionals. As generational change and technology upsets our current marketplace, we realize the importance of a strong peer and support group like the Insurors of Tennessee.

The future will be about educating the consumer on who the independent insurance agencies are, and what we do.

Advertising is dead, movement is alive! u

Young Agents ‘16

Upcoming Events and Information

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Want to Know More?

The Young Agents Committee has held four events already in 2016, with well over 100 total Young Agents attending these events. The committee has now finalized the dates and locations for the final three remaining local receptions for this year. Those event details are below, and more information will be shared with you soon.

If you are interested in providing suggestions and/or participating in events, please e-mail Daniel Smith at dsmith@ insurors.org or call him at 615.515.2601. You can also visit our website at www.insurors.org/IOT/About/Young_Agents/ IOT/News/IOT_Young_Agents.aspx for updates and articles tailored for young professionals.

The following is the current schedule of events for Young Agents in 2016. Please mark your calendars and join us for these great opportunities to network and grow in the insurance industry.

Please contact: Katie Ward OR Underwriter 678-533-3428

Andy Wilder Territory Manager 615-406-6328

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.

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.

berkleysig.com

June 7 - Tri-Cities Young Agents Reception 50Fifty Sports Tavern • 5-7 pm EST • Johnson City The Tennessee Insuror

19

June 9 - Knoxville Young Agents Reception Balter Beer Works • 5-7 pm EST • Knoxville October 30 - Convention Young Agents After Party Location TBD • 8-11 pm CST • Nashville

Young Agents Committee Brent Chance - Chair Principal Agent/Owner Ivy Insurance Brentwood bchance@ivy-insurance.com Stuart Oakes, CRIS - Immediate Past Chair Producer/Construction Division TIS Insurance Services Knoxville sfoakes@tisins.com Tim Treadwell V - Region I Account Executive Boyle Insurance Agency Memphis timt@boyle.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 We define Young Agents as anyone under 40 years of age or who has been a licensed agent for less than 5 years. Young agents are producers, CSRs or agency personnel who are hoping to grow in their careers by developing business, making new connections and participating in the future of our industry.

Our committee goals are to foster this growth through events, education and research. Are you part of Insurors Young Agents? If not, we hope you consider contacting us or attending an upcoming event in your area.

For more information, or questions on the Young Agents program, please e-mail 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 Reflections from The Capital

I have been in the insurance business for more than 40 years and have been a member of Insurors for more than 25 of those years. But in the past year I have learned more about the “big picture” of national politics and how it affects our business than I have ever known.

we got to our meetings with legislators, we were all giving the same well thought out message. Of course we were free to bring up any other topics of importance to us.

I have been aware of what happens at the state level and my involvement with Insurors over the years has kept me informed. These are issues right here at home that affect what we do every day so I have been very interested in what happens. But I must confess that I have not always paid the same amount of attention to issues at the national level.

I am happy to report that our team was able to meet with all the legislators on our list and I thought we had some meaningful conversations. I left there feeling good about the visits and the impact these talks had on the legislators. I also realized that some of our team members had really good relationships with their legislators and that helped a lot. I need to work harder on that both at the State and National level.

My excuse has always been that I am just not a very political person. I do vote and I do study where the candidates stand on a lot of issues.

And I have kept up with some insurance issues such as the Affordable Care Act. But I have not spent the time to really focus on most insurance issues at the national level the way I should. These issues also affect what we do and how we do it.

It has been less than a month since our visit and we have already seen some positive action on bills that we discussed during our meetings.

The U.S. House approved a resolution to block the Department of Labor fiduciary regulation from taking effect – no vote yet in the Senate.

The House also passed favorable legislation on Flood insurance – we are still waiting for the Senate to act.

National Legislative Conference

Get Involved

Several of us went to Washington, D.C. in April for the Big “I” Legislative Conference. It was my second time to attend, the first year was full of firsts for me and I just took it all in. This year I understood “how things work” a little better and was more of a participant than before. I must say I was very impressed with the organization and dedication of our national political team. It is obvious they have clout on The Hill and people listen when they speak. Of course, part of that is because of our Federal political action committee Insurpac National. We raised more than a million dollars last year and as you all know – money talks. But this national team is well-versed on the issues and they know how to get things done.

What can we as agents do to help? One of the most powerful ways to act is to develop a relationship with your elected officials. I hope you know your legislators, at both the State and national level – if not, please make an effort to get to know them. I can tell you I saw firsthand that it can really make a difference. I urge you to go to Washington at least once to participate in this national process; you will be glad you did.

Before our journey to the hill to meet with our legislators, we had a briefing on the most important key issues facing our industry along with talking points on each subject. By the time

The Tennessee Insuror

“O n e o f the most powerful ways to act is to develop a relationship with your e l e c t e d of f icials.”

Of course, donating to our Association PACs is also a key part of our involvement. Having strong PACs allows us to support candidates who understand our industry and will listen to our input.

Our State Association is blessed to have many contacts in Washington. We also have capable informed advocates from the Big “I” on the job in D.C. That should make us all feel good that the future of our industry is in their hands. u

Christie Reeves, CIC, CPCU, CPIW 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 No “Typical” Day for an Independent Agent Why is being a Trusted Choice Independent Insurance Agent one of the best jobs ever?

and file the claim with the carrier to ensure quick attention.

Just think about your typical day as an insurance agent, customer service representative, account manager or any other position within our agencies. “Typical?” you ask. I know that there is no “typical” day in the lives of independent agents – and that is what is so great about our industry!

It Sets Us Apart

You may begin your week working with a newly married couple, making sure that their new home and possessions are adequately covered.

Is it time for their separate auto policies to be combined and take advantage of that multipolicy discount? How about life insurance, can we help them with that too? Soon a call comes from an older insured that just has some questions about her current home statement and needed someone to explain it to her in layman’s terms, because she didn’t understand when she talked to the carrier. Our response to her – that’s what we are here for!

The next day, over in the commercial department, a phone call comes in early from a small business owner that thinks he only needs basic liability coverages. After a conversation with an account manager, he realizes that he needs work comp coverages and an auto policy for his vehicles too. Soon after that, a call from a larger insured starts the wheels rolling as he has just purchased a new multi-million dollar business!

He is going to need it all – package, umbrella, commercial auto, D&O, work comp, group health, several bonds and probably some flood coverage. At the end of the day, the call from an insured that needs to file a work comp claim. It thankfully turns out to be nothing too serious.

The CSR is ready to take all of the information

These type of scenarios are what make a Trusted Choice agent unique. We can help our insureds understand coverages and options available and make sure they are properly covered.

We can guide insureds through claim processes to assist with prompt and fair resolutions. We can offer our experience and multiple company relationships to find the most accurate coverage for each individual, family or business. And above all, we conduct our business in an ethical manner.

A National Network The IIABA (or Big “I”) represents more than a quarter million agents and their employees in all 50 states and Washington D.C. This network helps the Big “I” to understand what is important to independent agents locally, and then provide the tools, knowledge and protection to serve their clients effectively. They also serve a vital role as an advocate on the issues that matter most to our success. Whether it is through State-level legislation and insurance department regulation or it is on Capitol Hill in D.C., Insurors and the Big “I” have our back.

“Our response to her – that’s what we are here for!”

I continue to be humbled to serve as the National Director, representing the state of Tennessee. I have been in the independent agency industry for some 30 years now, and every day I learn something new. Just as none of our insureds are “typical,” I am vitalized that there is never a “typical” day for a Trusted Choice Independent Insurance Agent! u

Lou Moran III The Tennessee Insuror

23

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The Tennessee Insuror

From Your CEO

So, When is the Next Election?

You would have to be in a coma to not have heard about the 2016 election. When asked about the election date, most people would say it was “in November,” or more specifically, Tuesday, November 8th. Personally, I would say it is exactly one week after the Insurors Convention.

In any case, all of those answers are wrong.

The next election in the Volunteer State is the August 2nd primaries, with early voting starting July 15th. Think of it like preseason football for the Titans, and kickoff is closer than you realize.

However, the primary in politics is much more than a preseason game. Winners and losers for state races are determined in what could be likened to wild card elimination games with the "loser goes home" rule in effect. Surprisingly, usually less than 50% of eligible voters turn out.

Therefore, the vote you make in the primary counts more than the one you make in the general election due to the lower turnout. Another way to say it, since two less voters are present, your one vote actually counts for three votes.

Due to the low turnout for elections, the State Representative races are usually very close in votes. For example, a representative might expect 10,000 votes from the 30,000 possible voters. If one candidate gets 6,000 votes and the other get 4,000 votes, you certainly could say the winner, trounced the loser by 2,000 votes.

But what would it have taken to change the outcome. If 1,001 votes were moved to candidate 2, they would have ended up with 5,501 votes leaving candidate 1, with 4,999 and a new winner is declared. A percentage swing of only 10 points – plus one vote – changes the outcome.

That’s why candidates promote the “get out and vote” model and hope to sufficiently to fund a name recognition campaign. The old saying in politics that, “He who has the most yard signs wins the election,” is still relevant today.

Who will be running in the “elimination” games?

In the State Senate, only 4 out the 32 sitting senators will face primary challengers. This is what Mike Keith refers to as interdivisional games. Two or more from the same party fight it out to meet the other party in the general election. The relaThe Tennessee Insuror

tively low number is due to the fact that only half the Senate is up for re-election in any given year.

Six of those Senators have no competitor in the primary. Simply stated, no one of the same party wants or thinks they can win in the first round.

Since all of the House runs every two years the numbers dramatically change. There are 18 Representatives with no primary challenger – so about 1 in 5 get a “pass” on the first round – while 20 get competition from members of their own party. The winners move on to the general round in November where 67 seats (Senate & House) will actually be fought out between the parties, or about 1/3 of the ballot will be statistically gone before the election. Of the 2/3 left, at least half of those will have heavy odds on likely winners. So if you wait for the General Election, you have likely given up 2/3 of your choices before the “big” day in November.

Who you personally get to vote on depends on where you live and your choice of party affiliation. In Tennessee, we don’t have to declare that until we go to vote. But you will need to declare a political party at the polls. I once heard of an Insurors member who took his tax return to the polls to prove he made sufficient money to vote in the party primary of his choosing. That is not the case, neither is a poll tax, reading test or anything like that to bar you from voting. You do need to show a government issued ID just like the one you show to get on the airplane or purchase adult beverages in the grocery store.

It doesn’t matter which party you have chosen in the past. Either way it is important you get the coveted, “I Voted,” sticker. Returning in November you can qualify you for another sticker!

Please vote and encourage friends and family.

That aforementioned 10% could be changed by a couple of families or one subdivision.

If you are not registered to vote or need to make a change to your ID card, you have until July 5th to be eligible for the August election. You can easily attain the forms from your County Election Commission website or in-person. The form is brief and will only take about five minutes to complete. Once turned in, you will receive the official ID and be eligible to vote in August! u

“T h e n e x t election in the Volunteer State is the August 2nd primaries, with early voting starting J u l y 1 5 t h .”

Chuck Bidek, CPCU 25

Workers Compensation for Commercial Builders We are dedicated to providing independent agents and their commercial construction clients with a superior product and exceptional service. The advantages of participating in CompTrustAGC...Tennessee are significant.

• $8.5 Million returned to members since 1994 • Competitive Premiums • Discounts for Favorable Loss Experience • Strong Safety Program Specifically for the Construction Industry • Responsive Claims Service • Proactive Claims Management Strategies • Interest Free Premium Payments • Member Education: Seminars, On-Site Seminars, Web Resources • Reimbursement for Safety Training Expenses Stacy Sutcliffe, CPCU at 615.263.1300 or 800.524.0604 or stacy.sutcliffe@bwood.com www.comptrustagctn.com

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26

The Tennessee Insuror

Education Calendar

2016 CONTINUING EDUCATION SCHEDULE

Nashville 3/2-4

CIC

Agency Management

4/13

CISR

Personal Auto

5/4-6 CIC

Commercial Property

7/28-29 CIC

Ruble Graduate Seminar*

8/9

CISR

Commercial Casualty II

8/16-19 CRM

Analysis of Risk

9/14-16 CIC

Life & Health

11/9-11 CIC

Commercial Casualty

12/1

CISR

MEMPHIS 4/6-8 4/14 6/15 8/10

onal Lines CIC Pers erty mercial Prop CISR Com Health II CISR Life & cial Casualty CISR Commer

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.

Elements of Risk

CIT Y JOHNSON LINES -PERSONAL IAL 3/8 CISR -COMMERC 7/21 CISR Y II CASUALT

2016

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

Chattanooga

4-12 CISR Personal Auto 10-5 CISR Personal Residential KNOXVILLE

MARCH 9th CISR PERSONAL LINES JULY 20th CISR COMMERCIAL CASUALT YI OCTOBER 4th CISR PERSONAL RESIDEN TIAL register ONLiNe NOW at wwW.iNsurors.org or *wwW.scic.cOm CALL Laura thrOwER at 615.515. 2607 fOR MORE INfO OR E-MaIL LthrOwER@INSurORS.ORg

CISR

6/15 Life & Health

7/13 Commercial Casualty I 7/14 Commercial Casualty I 8/9 Commercial Casualty II 8/10 Commercial Casualty II 10/4 Personal Residential 10/5 Commercial Casualty I 12/1 Elements of Risk

CIC

Fee: $186

CE: 7

Fee: $424 (Ruble $430)

6/8-10 Life & Health Institute 7/28-29 Ruble Graduate Seminar 9/14-16 Life & Health Institute 11/9-11 Commercial Casualty Institute

Memphis Knoxville Johnson City Nashville Memphis Knoxville Chattanooga Nashville

CE: 24 (Ruble 16)

Knoxville Nashville 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.

CRM

Fee: $430

8/16-19 Analysis of Risk*

Risk Seminars

6/14 6/14 6/15 6/16 6/16 6/16 6/17 6/21 6/23 6/23

E&O - Role of Agency Defenses CE: 3 $48 Data Privacy Insurance CE: 3 $48 Business Income-Beyond the Basics CE: 3 $72 E&O - Understanding Agent Duties CE: 3 $48 Double Trouble-COI & Business Auto CE: 2 $48 Characteristics of Ultimate Acc. Mng. CE: 2 $48 E&O - Claim 360 View CE: 3 $48 Hot Topics in Personal Lines CE: 2 $48 D&O Liability Insurance CE: 2 $48 Home Based Business Exposures CE: 2 $48

Fee: $430

10/13-14 Advanced Risk Management*

Memphis

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

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

ABEN Webcasts (insurors.aben.tv)

Nashville

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 Understanding the Industry of Insurance CE: 5

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

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

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The Tennessee Insuror

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The Tennessee Insuror

keller.chapman@meadowbrook.com | 615.514.5562 | insurors.org/products-programs/preferred-comp/

Government and Legal Affairs Where There’s No Will There’s A Hard Way Written by Ashley N. Gold, JD, Insurors General Counsel

Robin Williams life and legacy touched many people. Best known as a comedian, beginning as a stand-up comic and then moving to television and film, Williams’ talent was widely celebrated. Williams was also philanthropic in nature, and used his celebrity and fortune to support the USO, the homeless, literacy rights for women and veterans to name a few. Williams had several children and was married three times.

Prince Rogers Nelson, better known to the world as Prince or just , also touched many people. Children of the 80s remember fondly “Purple Rain” and the many songs that Prince wrote and recorded that changed the musical landscape forever. He was also philanthropic, but intensely private so much of his activism will never become public. Personally, he was married twice and did not leave any living children.

million tax free to anyone. In addition, you can give gifts to qualified charities by will. But beyond that, there is estate tax. The current federal estate tax rate is 40%. For every million dollars, the IRS will get $400,000. As a result of legislation that was passed in 2012, Tennessee's inheritance tax was repealed in 2016. However, federal estate taxes are why many people set up trusts and tax-reduction plans during their lifetime to try to reduce the tax burden to benefit their heirs.

As mentioned, Robin Williams completed an excellent estate plan. His estate plan included a residence placed in trust for his wife to use during her lifetime including a fund to pay insurance, taxes and other costs related to the upkeep of the property.

Additionally, Williams’ trust divided assets equally among his children, and once all gifts from Williams’ to his children during life and at death were totaled, they were to receive equal amounts. This allowed him to “even up” everything at the end. The trust also allowed each child to redirect how the trust assets passed to their heirs. This allows the children the flexibility to modify the trust in order to meet their children’s needs.

There are many reasons why you should take the time to review your current will and trusts. First, if you are a business owner, the disposition of your business can be addressed through good estate planning. Do you want your spouse or children to be responsible for paying taxes on your share of the business upon

Why am I telling you all of this? I am using examples of very well-known individuals who have recently passed away and the vast differences between what can happen with Estate Planning and no Estate Planning. Robin Williams had an excellent will, Prince had none. While most of us may not have $300 million dollar estates that are ever expanding, the benefits of thoughtful Estate Planning are enormous.

Examining the Two Situations Prince died without a will.1 Among other things, that makes it even more likely that the estate will face lawsuits by claimants who hope to collect a piece of Prince’s vast estate. A simple will–or as in Prince’s case, no will at all–means probate. The probate process is public and expensive. And it can invite disputes. Already, it’s clear that Prince’s large estate will face major taxes.

The current federal estate tax law says that a person can (by will or intestacy) give $5.45 The Tennessee Insuror

31

your death? Do they want to run the business? Is your partner the better person to buy out your share and how should it be valued? All of these are decisions that can be made now.

What about children? Are your children grown? Do they still need support? Or would your estate be better left in trust to support grandchildren?

To achieve the best outcomes before meeting with your state attorney, take stock of your assets, debts, real estate and insurance policies and retirement accounts. Are there any specific bequests you want to give to individuals or are there any charities that have meaning? Keep those in mind as you plan.

Ultimately, take the time to properly plan your estate and what will happen to your assets. If not, you leave the decisions to the Court and the government, and who wants that?

1 - Per New York Times “Prince Died Without a Will, According to Court Documents...” via http://www.nytimes.com/2016/04/27/arts/music/prince-diedwithout-a-will-according-to-court-documents.html?_r=1

About the Author Ashley N. Gold has served as General Counsel of Insurors of Tennessee since 2007, and previously consulted for the Association on legal and government affairs matters. She received her undergrad degree from the University of Kentucky and her Juris Doctor from Samford University. She may be contacted at aarnold@ insurors.org or by calling her at 615.515.2606. u

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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

The Tennessee Insuror

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Association Update

Insurors Adds Small to Staff

Insurors of Tennessee has announced the addition of Ellie Small to the Association staff, where she will serve as Membership Specialist.

Small will manage the continuing education program, coordinate course registration and provide administrative support to the Insurors office.

Small is a native of Evansville, Indiana and a graduate of Purdue University. She joins our team from Uber, where she was a partner support representative based at the Nashville location and managed partner accounts. Small also worked for Purdue University’s Office of the Registrar and was a student office assistant for the Military Extension Internship Program.

Allen Wins Keystone Thoroughbred Award

David Allen receives the award from Keystone’s Michelle Bicknell

Keystone Insurers Group recently announced the recipients of the annual Keystone Thoroughbred Award, which recognizes the top insurance producer in each state in which Keystone has partner agencies. The 2015 winner for Tennessee was David Allen, CIC, CRM, a principal agent of RSS Insurance in Chattanooga and the Region III member of the Insurors Young Agents Committee.

Crichton Group Promotes Madison and Wiedman Nashville-based insurance agency The Crichton Group has promoted partner Austin Madison to senior vice president and Blake Wiedman to partner and vice president.

Madison, who joined the agency in 2007 and will continue to oversee the employee benefits department, previously served as vice president and helped clients understand the impact of healthcare reform, according to a release. In addition to his experience in employee benefits insurance, Madison has expertise in captive insurance, life and disability insurance, wellness and population health management. He earned his bachelor’s degree in corporate communications from the University of Kentucky.

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Wiedman, who joined the agency in 2011, will help lead the agency’s risk management services with a focus on cybersecurity. Previously, he served as a commercial insurance advisor for the agency. Wiedman’s expertise is in private equity, technology, healthcare and law firms. He obtained his bachelor’s degree in business administration in finance from Ole Miss.

Reliance Partners Promotes Chastain Reliance Partners in Chattanooga has announced the promotion of Jordan Chastain to the position of senior director of sales for the transportation division of the company. The company is one of the fastest-growing insurance providers to the trucking and logistics market in the nation.

Jordan is a native of Gainesville, Georgia and a graduate of the University of Mississippi’s Risk Management and Insurance program. “Jordan’s work ethic has been instrumental in his success and the continued growth of our trucking division,” said Reliance VP Jason Coleman. “We are excited to see him take on additional responsibilities on our sales team.”

McIntire Inducted Into Bradley County “Old Timers” Hall of Fame Former Insurors Board member Bob McIntire of McIntire & Associates in Cleveland has been inducted into the Bradley County “Old Timers” Hall of Fame.

McIntire was honored for his contributions to golf in the community. He played golf in high school before going on to play at Cleveland State Community College and then becoming first golfer to attend Lee College on an athletic scholarship. He went on to finish in the money in several tournaments, including the Chattanooga Coke Open and the Ping Open at Oak Ridge Country Club.

Former Insurors Ed. Director Wilson Retiring Bill Wilson, Director of the Big “I” Virtual University and former Education Director of Insurors of Tennessee, has announced that he will retire in December of this year.

Wilson has been in insurance for 47 years, beginning his career the Insurance Service Office (ISO). He plans to continue working in some capacity, and is developing a website at www.insurancecommentary.com. u 35

“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 Goss Insurance - Hixson Inter-Agency Insurance Services - Knoxville Martin & Zerfoss, Inc. - Nashville

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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

Programs Spotlight

New Agency Employee Resources You’ve finally found a new employee for your agency, and you’re anxious to get them started. The only problem is, they’re new to the industry and they haven’t even been licensed yet. Where do you start? Luckily, you’re an Insurors member, and that provides you access to some great resources for new employees.

National Alliance Introductory Courses Earlier this year, the National Alliance for Insurance Education & Research introduced a series of courses for new hires. These courses are only $30 each and offer curriculum, quizzes and exercises at a self-learning pace. Topics include Intro to P&C Insurance, Intro to Commercial Property, Intro to Commercial Casualty, Intro to Personal Auto, Intro to Personal Residential, Benefits classes, Miscellaneous Coverage classes and several more.

For more information, or to register, please visit http://www. scic.com/news/introductory_courses_new_offerings_for_ new_hires.

Kaplan Financial Pre-licensing and Licensing Once your new hire is ready for licensing, Kaplan Financial offers live, online and self-study options to prepare for the State licensing exam(s). In addition, Insurors members can visit www.kaplanfinancial.com/firm-insce and use code INSTN for 20% of the standard retail pricing.

Laws to Know/Unlicensed Personnel In addition to information and licensing, you can also get your employees started right away on some tasks in the agency.

Insurors offers members a list of duties that unlicensed personnel may legally perform in an agency. View the list now at http://www.insurors.org/IOT/Resource_Center/Agency_Management/Unlicensed_Personnel.aspx We also have a list of “Laws Every Insurance Agent Should Know,” which is updated annually and available to members for download at http://www.insurors.org/pdf/TennesseeAgentLaws1-16.pdf. u

NATIONAL ALLIANCE INTRODUCTORY INSURANCE COURSES VISIT WWW.THENATIONALALLIANCE.COM FOR MORE INFORMATION The Tennessee Insuror

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ACUITY The TennesseeCEInsuror VIDEO

Company Spotlight

ACUITY

ACUITY understands that commitment is an essential quality agents need from an insurer—commitment to remain a viable resource for new and existing business; commitment to relationships with you and the independent agency system; and commitment to protecting and enhancing the well-being of the families and businesses we insure.

U. Offered free to independent agents, ACUITY U has provided agents with over 100,000 continuing education (CE) credits through both in-office and online courses. ACUITY’s online courses include The Tale of Two Claims, Ethics: Divergent Dilemmas, and CCI: Construction Contracts Investigated, with new courses being regularly introduced.

“Independent agents know they can rely on ACUITY as the ‘go to’ company for the type of business we like to write,” said Ben Salzmann, President and CEO. “We provide agents the products, technology, and services that help them write business with us.”

Committed to Independent Agents

An Array of Products and Services ACUITY’s product portfolio is expansive: a wide array of monoline, package, and portfolio policies, as well as many important and unique coverage enhancement endorsements designed for Tennessee accounts. In personal lines, ACUITY provides true tiered rating programs in both auto and homeowners. In commercial lines, ACUITY offers monoline and commercial package policies and business owners (BOP) forms, as well as endorsements designed for target classes of business, such as contractors, truckers, mercantile and manufacturing accounts.

In delivering technology solutions agents can use, no company can claim a stronger commitment than ACUITY, which has earned more awards from ACORD than any other P&C carrier in the nation. ACUITY’s ease-of-business solutions for agents include real-time, online policy quotation and application and automatic issuance and delivery of policies to agents within seconds in both personal and commercial lines.

ACUITY’s value-added services for agents include a wide array of educational offerings through ACUITY The Tennessee Insuror

A strong commitment to independent agents has driven ACUITY’s growth in the state. The mutual insurer finished 2015 with $38.5 million in written premium in Tennessee. Importantly, this has been profitable growth, with the company running a combined ratio of just 93.0.

Additionally, ACUITY knows the bottom line is vitally important to agents.

“We pay a lot more in contingent commissions as a percentage of written premium than our peers,” said Wally Waldhart, Vice President - Sales and Communications.

With strong growth and profitability, ACUITY offers independent agents remarkable financial stability. A fiercely independent company firmly committed to remaining mutual, ACUITY is also remarkably well-run: the company is rated A+ by both A.M. Best and Standard & Poor’s and has been named to the Ward’s 50 Top Performers for 16 consecutive years.

ACUITY also offers independent agents stability in staffing. Ranked the number 2 large company to work for in America, ACUITY maintains a remarkable longterm voluntary turnover of less than 2 percent.

As a result of its comprehensive and well-rounded strategy, ACUITY, which generates over $1.3 billion in revenue and manages over $3.5 billion in assets,

provides consistency and security in an industry marked by wide market swings and financial uncertainty.

“We are a healthy, strong, and truly regional mutual carrier,” Salzmann said.

“We are thankful to Tennessee agents for the trust they have placed in us, and we are confident in our future thanks to our strong agency partnerships.” u

Tennessee Contacts Greg Davis, CIC, CPCU, AMIM Territory Director greg.davis@acuity.com 615.337.4343 About ACUITY ACUITY provides property and casualty insurance products for consumers and businesses in the United States.

At ACUITY, protecting what matters most to you and your family is the number one goal.

ACUITY is the only commercial regional insurer to be rated A+ by both A.M. Best and Standard & Poor’s, making them an icon of strength.

ACUITY retains over $1.5 billion policyholder surplus, enabling them to protect the financial well-being of its policyholders.

In business since 1925, ACUITY is the 61st largest insurer in the nation and manages over $3.5 billion in assets.

For 2016, Fortune named ACUITY the #2 large company to work for in America.

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Company Briefs Big “I” Company Best Practices Awards

tices, including talking points and the value of participating in the study.

The Best Practices Awards of Excellence recognize insurance companies for their exceptional efforts in promoting and marketing Best Practices tools, seminars and philosophies throughout the year.

Preferred Mutual Insurance Companies, which is working to help agents through activity in two phases: training and education, and incorporation of planning to marketing representatives and agents.

During this Big “I” Legislative Conference, Bob Rusbuldt, Big “I” president & CEO, presented Best Practices Awards of Excellence to the following honorees:

Travelers, which supports agents and the Best Practices program and regularly features and promotes the program’s tools in its agency publications.

Applied Systems, which launched a formal campaign to encourage participation in the Best Practices program and supports clients to consistently evaluate their company’s performance as well as growth and perpetuation strategies.

Westfield Insurance, which presented Best Practices sessions, guest speakers from Reagan Consulting, webinars and education field staff.

Central Insurance Company, an active supporter of Best Practices that has nominated more than 15% of its agencies for the Best Practices study with a personal letter encouraging them to participate.

National Alliance Updates CRM Principles

EMC Insurance Companies, which produced articles, seminars and webinars based on the foundations of Best Prac-

The Certified Risk Managers (CRM) Program is one of the forward-looking designation programs of The National Alliance for Insurance Education & Research. The program is comprised of five courses which describe and demonstrate the entire risk management process. New participants are

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encouraged to begin their studies with the CRM Principles of Risk Management course.

The newly revised CRM Principles of Risk Management course has been enhanced to provide: • • • • •

A comprehensive understanding of the impact of an effective risk management program Broadened discussion of risk identification methods including explanations and examples of their application Expanded dialogue about Enterprise Risk Management and how it differs from Traditional Risk Management approaches Additional skill-building exercises that will allow students to assess their understanding of risk identification of concepts A more in-depth approach to recognizing and preparing to manage emerging risks

Additional information is available at www.TheNationalAlliance.com or call 1.800.633.2165.

Progressive CEO Renwick to Retire The Progressive Corp. announced that Glenn Renwick, president and chief executive officer, will retire after more than 15 years as CEO and almost 30 years with the company, effective July 1, 2016. Tricia Griffith, currently Personal Lines chief operating officer, will succeed Renwick as CEO and president and will join the board of directors. Renwick will continue as executive chairman of the board.

ogy leader.

Renwick joined Progressive in 1986. He was named CEO of insurance operations in 2000 and has served as the CEO of the parent company since 2001. He has served in a variety of operating roles during his tenure at Progressive, including product manager, the head of the company’s marketing organization and business technol-

Renwick’s successor, Griffith, joined Progressive as a claims representative in 1988 and has served as Personal Lines chief operating officer, responsible for the company’s personal lines, claims and customer relationship management groups, since April 2015. She held several managerial positions in the claims division before being named chief human resources officer in 2002. In 2008, she returned to claims as the group president, overseeing all claims functions. Before her current position, she served as president of Customer Operations, overseeing claims and the customer management group, which comprises the company’s contact center group (sales and delivery), as well as the customer experience, systems experience and workforce management groups.

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Accident Fund Names Hassenzahl Southeast Region Manager Accident Fund Insurance Company of America has announced the appointment of Dan Hassenzahl to regional director, Southern region. In this role, Dan is responsible for underwriting and marketing in Tennessee, Mississippi, Arkansas and Georgia. Hassenzahl joined the company in 2005 as a claims examiner and in 2007 moved to Internal Audit. He became a business development consultant in 2009.

“Dan has done a tremendous job for us in Business Development over the past seven years,” said Mike Seling, vice president, Business Development & Regional Operations.

“His energy, experience and expertise in agency relationship management will be a strong asset to Accident Fund in the Southern region.”

Hassenzahl earned a Bachelor of Arts degree in Business Administration from Davenport University. He holds the Certified Authority on Workers’ Compensation (CAWC) designation and is currently pursuing Chartered Property and Casualty Underwriter (CPCU) and Certified Insurance Counselor (CIC) designations.

CNA Appoints Hallstrom to Lead Cyber Chicago-based insurer CNA has named David Hallstrom to assistant vice president and industry leader, Cyber Insurance.

In this role, Hallstrom is responsible for CNA cyber product management.

Hallstrom has more than two decades of experience in technology, cyber and information risk insurance. He is frequent speaker and blog author on cyber risk. Prior to joining CNA in 2008, he held management positions at Risk Placement Services, Zurich North America, Near North National Group and Aon.

Hanover Wins Automation Award from NetVU In recognition of its investments in innovative technologies, streamlined workflows and its deep commitment to independent agents, The Hanover Insurance Group, Inc. has earned the NetVU Automation Excellence Award for the second consecutive year. The award was presented to The Hanover at NetVU16, one of the largest insurance trade technology shows in the country.

The Automation Excellence Award is presented annually by the users group to an insurance carrier that implements leading technology solutions that help simplify processes for independent agents nationwide, empowering agencies to grow.

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Patriot National Launches Consulting Group Patriot National, Inc., a leading provider of technology and outsourcing solutions, has announced the official launch of Patriot Risk Consultants (“PRC”), a subsidiary of Patriot National that offers loss and safety consulting services across a broad spectrum of industries nationwide.

PRC is dedicated to creating a safe work environment, the protection of physical assets and the resilience of business, and uses a combination of best practices and established standards to deliver best-in-class advice. PRC’s consulting services span health and safety services, including preventing workplace injuries and complying with Occupational Health and Safety (OSHA) regulations, premise operations and product liability services, federal and state mandated services, and fleet transportation and warehouse safety services.

ACUITY Among “Best Companies to Work For” ACUITY has moved up to number two in the entire nation on the 2016 FORTUNE “100 Best Companies to Work For®” list.

This is the second consecutive year ACUITY was named to the large-company list and a spot in the top three.

“We are tremendously honored and proud to move up to number two in the FORTUNE ‘100 Best Companies to Work For®’ list, and the credit for this accomplishment goes to our people,” said Ben Salzmann, ACUITY President and CEO. “Our knowledgeable, experienced, and enthusiastic people make the difference in delivering on the promise we make as an insurer. Their enthusiasm is the most important component of creating a great workplace and maintaining the culture for which we are known.”

The FORTUNE “100 Best Companies to Work For®” list recognizes businesses that have exceptional workplace cultures.

PURE Awarded as “Best Insurance Provider” Privilege Underwriters Reciprocal Exchange (PURE), the policyholder-owned property and casualty insurer for high net worth individuals and families, was awarded “Best Insurance Product Provider” at the third annual Family Wealth Report Awards 2016.

“PURE is honored to be named Best Insurance Product Provider and recognized alongside so many exceptional organizations that serve high net worth families,” said Mark Galante, senior vice president and chief marketing officer of PURE Insurance. “It’s recognition like this that further inspires our team to deliver an exceptional member experience every day.”

The Family Wealth Report Awards were designed to recognize companies, teams and individuals who have demonstrated innovation and excellence during 2015. Winners are 44

selected by a panel of judges comprised of highly respected leaders from the wealth management community, including heads of family offices, wealth advisory firms, banks, law firms and others.

WAHVE Adds Rick Morgan to Lead Marketing Rick Morgan, a technology and marketing leader in the independent agency channel, has joined Work At Home Vintage Experts (WAHVE) as senior vice president of marketing.

WAHVE, formed in 2010, is an innovative talent solution that engages vintage insurance professionals “phasing” into retirement who work remotely on a contract basis for insurance firms.

Morgan, who served on WAHVE’s advisory board from its inception until 2014, also helped guide WAHVE in his most recent role of senior vice president of Aartrijk, a marketing firm specializing in the insurance industry.

“Rick’s keen understanding of the industry and his insights into marketing and the digital world are strong assets for WAHVE,” said Sharon Emek, Ph.D., CIC, CEO and founder of WAHVE. “Rick will help guide the next phase of WAHVE’s online presence.”

Hodson Joins Brent Re as Senior VP Brentwood Reinsurance Intermediaries Inc. (BRII), a provider of insurance and reinsurance brokerage services, has appointed William (Bill) J. Hodson, of Burlington, N.C., as senior vice president.

According to Brentwood Reinsurance President Keith Fawcett, Hodson will broaden the reinsurance products and capabilities offered through BrentRe. His focus will be placing and servicing specialty lines reinsurance for traditional carriers, program-oriented business produced through managing general agents, and alternative risk reinsurance placements for captives and risk retention groups.

American Strategic Insurance Promotes Tharpe American Strategic Insurance (ASI) in St. Petersburg, Fla., has promoted Michael Tharpe to account executive for ASI’s National Accounts team. Tharpe has worked with ASI for five years, previously serving as account manager.

In his new role, Tharpe is responsible for profitability, strategic direction, training, commission and contingency, expense decisions and field visits. u 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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Some Perspective on E&O Claims Tennessee Claims Data Shows Trends

by Stephen Holmes, Insurors E&O Specialist

The Swiss Re Claims Department recently released to Insurors some interesting Tennessee claims data from 2010 through 2015. We thought we would share some of this information with you, as there are several noticeable differences between our state and the national averages during this 6-year time period.

Seminar, please get in touch with me, as participation in this also entitles your agency to a 10% credit for three policy terms.

It is a win-win for all.

Perhaps the most eye-opening statistical example pertains to the person in the agency alleged to have committed the error, when looking at claim severity. In Tennessee, owners/partners are the employee most likely to be accused of committing an error. This happens roughly four-and-a-half times more often than it does on the national average. If you add in claims made against producers you get more than two-thirds of all loss dollars paid on Tennessee Agents E&O claims. Meanwhile, Tennessee Licensed CSR claims cost only one fourth of what the national average is for Licensed CSR claims.

It is crucial to maintain a proper and positive E&O culture in your agency, from owners to clerical personnel. Agencies that have open discussions with agency personnel regarding E&O create an atmosphere where agency staff are comfortable making managers aware of a potential claim, which in turn helps with the claims process.

Swiss Re Corporate Solutions data also reveals that agencies that attend an E&O Risk Management seminar have fewer overall claims, and the more agency employees who attend the seminar, the better the claims statistics become. So if your agency has not participated in the E&O Risk Management

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So what type of business is driving loss payments in Tennessee? The answer, commercial lines – occurrence based policy form. The money spent on commercial claims in Tennessee is greater than four to one when compared with non-commercial claims and slightly above the national average. These numbers highlight where much of your agency’s exposure is coming from, and emphasizes the necessity of using a thorough checklist for all of your commercial lines clients.

If your agency is not using a commercial checklist or if you don’t think you have a comprehensive list at your disposal, please get in touch with me about the Virtual Risk Consultant, which provides detailed commercial lines checklists on more than 600 lines of businesses, and is available to all Insurors members at reduced rates.

With so much of the total loss dollars in Tennessee stemming from commercial lines business, it makes sense to see what type of agency is driving the loss ratio. Is it the agency that writes a lot of commercial lines business, or the agency that dabbles in it? In Tennessee the commercial lines losses are driven by the agencies that predominately write commercial lines business. More than four out of every five dollars spent on a commercial lines claim comes from agencies that write more commercial lines coverage than non-commercial lines coverage. Furthermore,

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Tennessee’s average is 17% higher than the national average.

Another substantial deviation Tennessee has from the national norm comes from the transaction type. Nationally, alleged errors occur more frequently with new customers or new coverages for existing customers. In Tennessee, most claims stem from renewal business and at a rate double that of the national average. On the flip side, the total loss amounts on new business for both new and existing clients in Tennessee is half the national average. This shows the necessity to properly assess all risks at renewal, but in particular your commercial lines clients.

documentation of a recommendation on coverages or limits, and you are subsequently sued for failure to provide such a recommendation, then your agency can earn a 50% reduction on your deductible, up to $12,500. This is called the Deductible Reduction, and is one of the best and most liberal features regarding deductibles in the marketplace.

WHY WALK

WHEN YOU CAN SOAR?

Finally, far and away the process step that is producing higher loss amounts in Tennessee is a recommendation error, such as type or limits of coverage. This process step accounts for more than one third of all loss payments and is nearly threeand-a-half more than the second highest process step, risk assessment/exposure error. It is also two-and-a-half times higher than the national average.

As you can see, an alleged recommendation error is serious business, and emphasizing documentation of all coverage and limit recommendations is paramount to a strong defense if a claim were to arise. While we know this is more than enough evidence for you to implement and maintain a strong documentation procedure, there is also a major benefit exclusive to Swiss Re/Westport policyholders that gives another incentive.

On the Westport E&O policy, if your agency maintains proper

While these statistics aren’t necessarily a reflection of what will happen in the future, they do shed some insight on the trends our state has been seeing through the last six years and how we differ from the national average. Hopefully, these facts can serve as a reminder of how crucial it is for all agency personnel – from CSRs to owners – to use checklists and best practices procedures on all your commercial lines renewals. Don’t forget that Swiss Re policyholders can also visit www.iiaba.net/ eohappens for more information on claims data, case studies, articles on protecting your agency and much more.

If you need more information, or have questions about this article, please contact me at 615.515.2609 or by e-mail at sholmes@insurors.org.

About the Author Stephen Holmes, CIC, CISR, is the E&O Specialist for Insurors of Tennessee. Stephen has been in the insurance industry for 8 years and began his career as an underwriter for Preferred Comp. He is a graduate of the University of Tennessee at Knoxville. u

WHY WALK

WHEN YOU CAN SOAR?

Swiss Re Corporate Solu ons policyholders: Don’t miss out on the invaluable risk management resources available exclusively to you. Log in to www.iiaba.net/EOHappens to access claims sta s cs, preven on tools, insigh ul ar cles and more.

THE BIG “I” PROFESSIONAL LIABILITY PROGRAM Prevent.

Our exclusive risk management resources help your agency avoid making common preventable mistakes.

Protect.

Our superior coverage through Swiss Re Corporate Solu ons and our experienced claims teams are in your corner in the event of a claim.

Prosper.

When you know you have the best agency E&O Protec on, you can focus on growing your most important asset–your business.

The Big “I” and Swiss Re Corporate Solu ons are commi ed to providing IIABA members with leading edge agency E&O products and services. IIABA and its federa on of 51 state associa ons endorse the comprehensive professional liability program offered by Swiss Re Corporate Solu ons.

Visit www.iiaba.net/EOContact to connect with your state associa on today.

Insurance products underwri en by Westport Insurance Corpora on, Overland Park, Kansas.

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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)

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The Tennessee Insuror

Meetings

Spring Calendar Filling Up With Great Events Insurors of Northwest Tennessee Golf June 14 The Insurors of Northwest Tennessee will host their annual golf outing on Tuesday, June 14th at Dyersburg Country Club at the Farms. The event will feature an informal lunch, a reception and the famed pork chop dinner after the tournament. For more information, contact Matt Russell at mrussell@westan.net or download the flyer at http://www. insurors.org/pdf/InsurorsNWTNFlyer16.pdf

YOUR FIT FOR WORKERS’ COMP AND MORE!

Insurors of Nashville Golf Tourney August 8th

the Insurors of Tennessee (IOT) to provide member

The Insurors of Nashville annual golf tournament was rained out, and has been rescheduled for Monday, August 8th at Old Natchez Country Club. The event will feature a lunch, golf outing and social, with proceeds benefiting Tom Joy Elementary School. For more information, please visit www. insurorsofnashville.com.

Chattanooga Local Golf Outing August 29th The Chattanooga local board will hold their annual golf tournament on Monday, August 29th at Chattanooga Golf & Country Club. For more information, please contact Mike Langley at mikel@brockins.com.

Knoxville Local Luncheon August 30th Insurors will host a local luncheon in Knoxville on Tuesday, August 30th at Buddy’s BBQ on Kingston Pike. The luncheon will feature a recap of the 2016 bills passed into law that effect our industry, as well as an update on the Association goals and events. Find more information or RSVP now at www. insurors.org.

Insurors 123rd Annual Convention 10/29-11/1 The Insurors of Tennessee 123rd Annual Convention will feature exhibits, education, guest speakers, entertainment and events geared to enhancing the experience and success of Tennessee’s Independent Insurance Agent & Broker community. The event will take place at the Omni Hotel in downtown Nashville on October 29th-November 1st. We will be announcing more details in the coming weeks.

For more info, please visit www.insurors.org/IOT/Convention/ IOT/Convention/IOT_Convention_Home.aspx. u The Tennessee Insuror

Preferred Comp of Tennessee is endorsed by agencies competitive workers’ compensation options.

Meadowbrook Insurance Group, Inc. Low to Moderate Hazard Workers’ Compensation

• • • • • • • • • •

Artisan Contractors Auto Repair & Service Goods & Services Hospitality Light Contracting Light Manufacturing Office/Clerical Physicians Restaurants Wholesale/Retail

For more information or to get started, please contact: Keller Chapman (615) 406-8033 keller.chapman@meadowbrook.com Josh Allen-Bottoni (978) 933-4161 joshua.allen-bottoni@meadowbrook.com

www.preferredcomp.com

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Member Tips

Disability: A Gamble Worth Taking? by Christine Munoz, Big “I” Dir. Your most important asset is not your car, house, boat or other possessions. It is your ability to earn an income. An accident or illness that causes a disability could end your ability to earn.

While most people think it won’t happen to them, statistics show that this isn’t true. According to the Commissioners Disability Table it is far more likely that your clients will suffer a disability than be in an auto accident or have a house fire.

In fact, the chances of suffering a long term disability of 90 days or more before an individual reaches the age of 65 are unbelievably high: a 25-year old has a 52% chance of becoming disabled; a 35-year old has a 48% chance; and a 50-year old has a 34% chance. The odds are not in your favor.

People often incorrectly believe they will be covered by Social Security, work comp or their own savings. This simply isn’t true most of the time. Social Security Disability is often difficult to obtain since the restrictions state the client must be completely disabled with no hope of recovery for at least one year. Work comp only covers if you are injured on the job. And personal savings goes fast when trying to keep up with the mortgage, care and other obligations. Although these programs can help supplement your income you cannot realistically expect to recoup your entire income using these sources.

A quality disability policy will provide coverage in the event of disability. Take the time to educate your clients about the facts and the options available to them.

Big “I” Employee Benefits offers a variety of Disability Solutions through our partnership with Crump Life Insurance Services.

Visit us at www.iiaba.net: Products/Crump Life Insurance Services to learn more.

About the Author Christine Muñoz is the Big “I” Director of Employee Benefits. She may be contacted at christine.munoz@iiaba.net for more info. u

Directory of Advertisers Advertiser

Phone

Website

Page

ACUITY (920) 458 - 9131 www.acuity.com 38 Allstar Financial Group (877) 950 - 3222 www.allstarfg.com 22 Amerisafe (800) 897 - 9719 www.amerisafe.com 17 AmTrust North America (877) 528 - 7878 www.amtrustnorthamerica.com 49 Applied Underwriters (877) 234 - 4450 www.auw.com/us 2 Arlington/Roe & Co. (800) 878 - 9891 www.arlingtonroe.com 13 Auto-Owners Insurance (615) 373 - 5200 www.auto-owners.com 55 Bailey Special Risks, Inc. (800) 768 - 7475 www.bsrins.com 9 Beazley Data Breach Coverage (615) 515 - 2609 www.insurors.org 32 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 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 15 CNA Insurance (800) 251 - 5852 www.cna.com 45 CompTrust AGC Tennessee (800) 524 - 0604 www.comptrustagctn.com 26 Consumers Insurance (615) 896 - 6133 www.ciusa.com 52 Donegal Insurance Group (800) 277 - 7442 www.donegalgroup.com 7 EMC Insurance (800) 239 - 2005 www.emcins.com 34 FCCI Insurance Group (800) 226 - 3224 www.fcci-group.com 16 INSBANK (866) 866 - 4268 www.insbanktn.com 11 J.M. Wilson (800) 595 - 0063 www.jmwilson.com 42 Johnson & Johnson (931) 704 - 0810 www.jjins.com 28-29 Kaplam University (877) 761 - 9150 www.kaplanfinancial.com/firm-insce 47 Keystone Insurers Group (800) 416 - 5498 www.keystoneinsgrp.com 40 MetLife Auto & Home (615) 812 - 4811 www.metlife.com 26 The National Alliance for Insurance Ed. (800) 633 - 2165 www.thenationalalliance.com 37 National Security Group (800) 239 - 2358 x267 www.nationalsecuritygroup.com 41 Nationwide (614) 948 - 4107 www.nationwide.com 50 Penn National Insurance (800) 395 - 0518 www.pennnationalinsurance.com 56 Preferred Comp/Meadowbrook (800) 755 - 8090 www.meadowbrook.com 30, 51 Preferred Property Programs (888) 549 - 2465 www.umbrellaprogram.com 42 Securerisk (770) 723 - 8096 www.securerisk.com 38 South & Western (800) 492 - 5351 www.southandwestern.com 33 Summit Holdings (800) 971 - 2667 www.summitholdings.com 26

INSURORS 123rd ANNUAL CONVENTION OCTOBER 29 - NOVEMBER 1 | OMNI NASHVILLE

register now at insurors.org

Thank you, agents.

Auto-Owners has always been dedicated to the independent agency system and proudly standing behind the agents who represent us. We would like to thank you for your continued loyalty, which has helped us achieve tremendous growth and accomplishments over the years.

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