The Tennessee Insuror May/Jun 2020 by Insurors of Tennessee

THE TENNESSEE

INSUROR May/June 2020 Volume 31 | Number 3

What's on the Horizon? As the World Faces Forces of Change from a Global Pandemic, What is in Store for Insurance Agencies and Our Industry?

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5 Ways to Help Comm. Clients... 1st Quarter Results & A Look Ahead

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THE TENNESSEE

INSUROR Vol. XXXI, Number 3 May/June 2020

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Phone (615) 385-1898 Toll Free: 1-800-264-1898 Email: info@insurors.org Editor: Ashley Gold, J.D. Publisher: Daniel D. Smith Jr., CAE

4 What's on the Horizon? INSURORS OFFICERS

President .................................................................... Bob McIntire Immediate Past President .............................................. Joe Hunt IIABA National Director .............................. Cindi Gresham, CIC VP, Region I and President Elect ................... Norfleet Anthony Vice President, Region II ..................................... Chip Fridrich Jr. Vice President, Region III ........... Kym Clevenger, CPCU, CACW Treasurer/Secretary ......................................... John McInturff III Director, Region I .................................. S. Keith Phelps, CIC, CRM Director, Region I ......................................... Richard Whitley, CIC Director, Region I ........................................... Jamie Williams, CIC Director, Region II ............................................ John McCord, CIC Director, Region II ..................................................... Taylor Porch Director, Region II .................................................... Reno Benson Director, Region III ................................................. Mark Slater Jr. Director, Region III ...................................... Brandon Clarke, CIC Director, Region III ........ Cindy Widener Winn, CPA, CIC, CBIA Director, At-Large .......................................... Laura Ann Howell Director,. Young Agents ............................................... Cy Young

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What's on the Horizon? As the World Faces Forces of Change from a Global Pandemic, What is in Store for Insurance Agencies and Our Industry? Featuring Chris Boggs, Michael Burt, Frank Cox, Ryan Hanley, Carey Wallace and Bill Wilson

Let's pretend we did a survey in December of 2019 and asked insurance agencies the following question: "Will you implement any work-from-home policies at your agency in the next six months?" My guess is that 90% of Insurors members would have simply responded, "No," and maybe 5% would have said, "Maybe." if asked the question again in March, I would imagine you could flip the numbers around completely. Change has been forced upon the world. Whether we like it or not, things are going to be different moving forward – and the only question is going to be, "How different?" To get some idea of "how different," we talked to experts inside and outside the industry on sales, coverages, agency operations and more to get their thoughts on what we may see moving forward – pandemic-related or not.

Agency Operations Changes Bill Wilson, CPCU, ARM, AIM, AAM; Founder, InsuranceCommentary.com: The historian Hegel once said that, “History teaches man that man learns nothing from history.” We tend to have short memories. Unless potentially serious pandemics become a relatively common event, frankly, I don’t think you’ll see a lot of structural changes in how agencies operate. If current conditions pass, the masks will come off and handshakes and hugs will once again be in vogue. We are social animals and I think that desire will marginalize the perceived risks. Given time, things should normalize, but I hope that agencies will recognize the importance and value of a comprehensive disaster plan that incorporates loss prevention and reduction measures. 4

Carey Wallace, CEO, IntellAgents and a Keynote Speaker at Insurors Agency Growth Conference: Independent agencies are among the most profitable and predictable businesses causing them to be considered recession proof by almost all measurements. Independent agencies have remained strong over the past 15 years which included several epidemics including SARS, Bird Flu, H1N1, MERS and EBOLA as well as the recession in 2008. In fact, during this time period the number of independent agencies remained constant at 36,500 in spite of an increase in mergers and acquisitions. In 2019, the average agency experienced retention rates of over 90% which created both a stable and predictable cashflow stream. In addition, over 75% of agencies reported that they are growing year over year both in personal lines and commercial lines business. A crisis like COVID-19 shines a bright light on the strengths and weaknesses of all organizations. For those organizations that are healthy well-run businesses, they will continue to flourish as they are designed to measure key performance indicators and adjust as changes occurs. For a lifestyle business, the impact may be significant as that type of organization is not focused on monitoring the data needed to drive business decisions. The reality is that many agencies that were able to operate successfully as lifestyle businesses will struggle to weather this kind of storm. Now more than ever before, agency owners should be utilizing data to create a plan for their agencies.

Coverage and Underwriting Changes Chris Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, The Tennessee Insuror

CRIS, AINS; Executive Director Risk Management and Education, Big "I" Virtual University: Insurers will tighten coverage to remove any perceived allowances in exclusionary or limiting language. Currently, policy language can be interpreted differently by different carriers and even different by different courts. It’s not that the language is ambiguous, it’s just situation-based. Going forward, I feel that carriers are going to work to remove any questions of intent or any ability to come to a different conclusion than the one they intend. Or, in what may be an even worse outcome for consumers, the industry may simply choose to narrow the breadth of coverage – particularly on the property side. If courts or legislatures succeed in broadening the coverage granted under the business income policy, I think it’s possible carriers may consider going as far as limiting coverage to named perils only. This may not be the most likely outcome, but I consider it a definite possibility. Underwriters will pay closer attention to requests to remove exclusionary endorsements. Carriers will closely review their underwriting rules and guidelines. Required endorsements won’t be inadvertently left off any longer. And there may be more required endorsements as a result. Carriers using proprietary forms will review all policy wording to make sure there is NO potential for the coverage to be broadened by interpretation. Underwriters are going to clamp down, at least for a while. Wilson, InsuranceCommentary.com: I think we’re more likely to see changes in policy form language and underwriting – issues that agencies will have to deal with. Needless to say, we’re going to see stronger catastrophe-related policy exclusions. There is a need to revisit how tied to described locations property and business income coverage is. There is also a need for property insurance to cover property that is relocated to enable employees to continue working. Likewise, limiting primary business income coverage to losses that occur only on described premises is too limiting and losses that arise from damage off premises, to be covered, requires rewriting the civil authority coverage in these forms.

Sales and Prospecting Changes Frank Cox, CAWC; Vice President, MarshBerry and a Keynote Speaker at Insurors Agency Growth Conference: Selling in today’s environment is challenging enough without having to deal with a pandemic that limits a salesperson's ability to have any physical face-to-face meetings. Just a short time ago, setting up meetings virtually wasn’t the normal approach for success. With that said, these new challenges have exposed flaws or areas for improvements for many. In fact, a large number of sales professionals have gotten a little complacent with their approach for quite some time. They should have changed their methodologies long before this current pandemic. The Tennessee Insuror

If you have a strong desire to change your sales approach to evolve during this challenging time, we encourage you to focus on some simple basics to start. As once stated by Tony Robbins, “Change is inevitable, evolution is optional.” We believe it all starts with your prospecting MINDSET. Many ask us, should we be prospecting right now. The answer is clearly – YES. But you must adjust your approach. As you revamp your plan, start with asking yourself the following questions: 1. Is now the time to be actively prospecting, or is that an insensitive approach? 2. How are you positioning yourself as a Trusted Advisor and Strategic Resource for your clients and prospects? 3. How am I going to adapt my sales process today, and make it fit in a virtual selling environment? The answers to these questions will involve an improvement in both the Art and Science side of your sales acumen. From the Art side, strong sales skills will be required for you to separate yourselves from the transactional seller. As for the Science side, utilizing technology, setting new activity metrics that tie into your short-term game plan is the first start. "Coach" Michael Burt, Author/Creator of "Monster Producer," and a Keynote Speaker at Insurors 127th Annual Convention: The key for all business owners is to go to work on the system that works. We teach the system in this cycle: 1. Activation of "PREY" DRIVE – this is an INSTINCT to go get it daily. 2. How you explain your services. We teach a six step framework to explain your value in a very compelling way. 3. How you work a SELLING SYSTEM to generate leads and new customers. 4. How you FOLLOW UP to secure business. 5. How you EXTRACT REFERRALS from every transaction. 6. How you become a PERSON of INTEREST. All of this should be MULTIPLIED with EFFORT and EXPANSION during this COVID-19 CYCLE. When pressed most people will “contract and retreat,” meaning they will take the path of least resistance. What they should be doing, especially what big time people do is EXPAND. This is what we teach in my coaching program of “Monster Producer.” We teach expansion. We teach mindset. We teach how to work the system. This is what people should be doing in their businesses so they can weather any storm. Wallace, IntellAgents: Determine the areas of opportunity and over communicate with your customers. This is not the time to be quiet, so reach out and let your customers know you are there for them. In times of uncertainty there is great comfort in hearing from our advisors. Be proactive and reach out to your customers to ask them how they are and communicate how their current carrier is responding to this pandemic. It is estimated that 8 out of 10 insureds will shop their insurance during this time. Now more than ever, people want to 5

support their local community and local businesses. Remind them that you are there for them, are part of their community and that you care. Ryan Hanley, Industry Speaker & Founder, Rogue Risk: Gone are the days of the dogmatic ideals of how clients should be marketed to, communicated with, and served by an independent insurance agency. The "New Normal" doesn’t care how you got here, what methods your agency was built on – nor do your clients. Everyone is simply trying to survive. Our world has been grabbed the ankles and flipped upside down, like a TV bully shaking the contents our lives out onto the ground. The COVID crisis is unfair in so many ways, from trivial to morbid. But times like these are why independent insurance agents exist.

Agency Culture Changes Wallace, IntellAgents: Using data to assess the risk in your agency and plan for your future has never been more important. The agencies that have a plan will be able to adjust and make the necessary decisions to navigate these unprecedented times. We have the tools and resources available to provide you with the resources you need to build a strong plan for your agency. Our business consulting team can provide you with the support and tools you need to help you build your agency’s cashflow projection. In addition, we have com-

pensation information (Compensation & Benefits Study) that is relevant to your region and state that you can utilize in your planning as well as the financial and operational benchmarks (RISE Report) based on your size, region, fastest growing and state that you can use to ensure that you are continuing to run a profitable and financially sound agency. Hanley, Rogue Risk: Today, it is the job of independent insurance agents to prepare and defend their communities from all the unfairness of the "New Normal." But then, this has always been our role, to prepare and defend the sustainability and longevity of our communities. The difference today is we no longer get to do this on our terms. The bridge to modern insurance distribution has been lit on fire by COVID-19 leaving us only the option to hike up our pants, put faith in our own ability, and jump into the future. There is no right way to serve clients. Automation, referrals, service centers, paperless, download, agency management systems, social media – none of the specifics matter anymore. We have only one option, to do only and everything your clients need to overcome the unfairness of the New Normal.

What Will You Do About it? As you can see from these thought leaders, change isn't coming – it's here. How will your agency adapt? u

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5 Ways to Help Commercial Clients Navigate a Hardening Market The commercial insurance market has reached a crossroads at a time when many aspects of the industry are changing. This change is happening at a pace that has never been seen before. Digital innovations, changing consumer behaviors and consolidation in the independent brokerage channel are all influencing how insurance is sold and the expectations businesses place on their independent insurance agent. All of this is occurring alongside a hardening market for property-casualty insurance. This market is characterized by stricter underwriting standards, reduced capacity, restricted coverage and less competition among insurance carriers for new business. While the hardening market is largely driven by high-level macro trends—including increasing claims costs, catastrophic losses, reduced investment certainty, social inflation, rising reinsurance costs and more—the net result for most businesses is that they are paying more for their insurance. Alongside these rising costs, your clients are also facing dynamic short- and long-term trends in their respective industries, as well as the fallout from the COVID-19 pandemic. The bottom line is that businesses need insurance and risk management partners they can trust now more than ever. While current market conditions are challenging, they also present an opportunity for insurance brokers and agents to separate themselves from their competition. They play a critical role in helping businesses navigate the insurance market. While this is true in soft markets, it’s especially important when the market is hardening. Those that will fare the best in a hard market are those who focus on quality service and guidance rather than strictly cost. Here are five strategies to best position your agency and clients for the current market:

written by Brendan Zyvoloski, Zywave 1) Stay Informed Your clients rely on you to provide tailored guidance. This starts by understanding the current market conditions yourself. The best agents not only have a good sense of high-level pricing trends, but also the conditions that their clients are likely to experience. You need to have a handle on how market conditions are affecting businesses with similar risk profiles. Having this understanding will allow you to provide meaningful advice to your clients on how they can address this market from a coverage standpoint, as well as a risk management perspective. Now is a great time to think about ways to strengthen your relationship with insurance carriers. Having a good sense of how insurance carriers and their underwriters view the current market will give you a leg up.

2) Take the Time to Explain the Market to Your Clients No one likes bad news. This is especially true for commercial insurance buyers who may see dramatic premium increases. However, bad news is even worse when it comes as a surprise. In the current market, agents should be transparent with clients when it comes to potential price increases. Doing so will help your clients manage their expectations and allow them to properly budget for increased insurance costs. Providing this information well ahead of renewal has the added benefits of giving you ample time to develop a solid plan for positioning your clients’ risks to underwriters.

3) Be a True Risk Management Partner It’s no secret that many insurance carriers are tightening up continued on page 30

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OPEN SEMCI Single-entry, multiple-company interface (SEMCI) is like magic!

Acuity, long recognized as a leader in agency interface technology, is committed to supporting SEMCI in commercial lines. SEMCI drives efficiency in the quote and application process and allows you to choose how you want to do business with Acuity. Acuity currently partners with several of the leading commercial lines insurtechs. We are building, exploring partnerships, or expanding with numerous other independent agency technology solutions. And Acuity is on the forefront of integration technology, continually building the connections necessary to be ready to connect to new insurtechs as they emerge.

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1 Quarter Results & A Look Ahead st

written by Jim Campbell, Partner, Reagan Consulting sponsored by our partners at

According to an “advance” estimate released by the Bureau of Economic Analysis last week, the U.S. economy shrank at an annualized rate of 4.8% in Q1 which translates to an actual decline of 1.2% for the quarter. This estimate, likely to be revised in late-May, represents an end to the consistently positive growth achieved in recent years and the biggest drop in U.S. economic activity since the Great Recession. Real GDP: Percent Change from Preceding Quarter Real GDP: Percent Change from Preceding Quarter 2.5%

3.5%

3.1%

2.9%

2.0%

2.1%

1.1%

-4.8% Q1 2018

Q2 2018

Q3 2018

Q4 2018

Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020

Source: U.S. Bureau of Economic Analysis. Data seasonally adjusted at annual rates.

Source: U.S. Bureau of Economic Analysis. Data seasonally adjusted at annual rates

Since the pandemic-driven lockdowns were not enacted until March, the impact on Q1 results was limited. Most economists anticipate a much steeper decline in second-quarter activity, especially with sectors of the economy largely shut down all of April. Early forecasts suggest the annualized Q2 contraction will likely be at least 25% and may be as much as 40% or more. Given the virtual certainty of a Q2 contraction, it can be argued the U.S. economy is effectively already in recession, technically defined as two consecutive quarters of negative growth. Against this broader economic backdrop, several publicly traded brokers reported Q1 results last week. Following are a few highlights: Brown & Brown reported Q1 organic growth of 5.6%, up slightly from 5.2% for Q4 2019. According to CEO, Powell Brown, the company is anticipating the biggest pandemic-driven impact to financial performance will be realized in Q3, although Q2 growth could also be negative. Full-year organic growth is expected to fall within a range of slightly positive to down by lowto-mid single digits. Marsh & McLennan reported Q1 growth in underlying revenue of 5%. However, the outlook for 2020 has changed in light of the current crisis. Revised forecasts anticipate modest declines in underlying revenue for full-year 2020, with deepest declines expected in the second and third quarters. Modestly positive underlying revenue growth for full-year 2020 remains a possibility, depending on the pace of recovery. Arthur J. Gallagher reported Q1 organic growth in its Broker10

age Segment of 3.1%, including a negative 3.2% COVID-related adjustment to estimated revenues. This adjustment anticipates Q1 revenues will be affected by future audits, cancellations, midterm adjustments, decreases in estimated covered lives, and/or decreases from volume and loss ratio sensitive contingent contracts. While the company does expect to see some declines in client exposure units, further premium rate increases may partially offset these declines. Although negative growth is possible for Q2 and Q3, the expectation is for positive growth in Q4 with full-year 2020 growth flat to modestly negative. At this point, management expects 2021 growth to return to 2019 levels. The economic data and financial results released over the past week provide some clarity into Q1 and indicate some future expectations as outlined below: Strong Start. The pre-COVID environment yielded strong results for the U.S. economy and for the insurance brokerage industry specifically. Both entered the year in a position of strength. If continued, 2020 may well have been a banner year for organic growth in insurance distribution. And while this course has been severely altered, the strong start and related momentum should provide some cushion to soften the blow from post-COVID results and help support full-year 2020 results for agents and brokers. Potential for Strong Finish. Q2 may be the economic low point with a sharp contraction virtually assured. But we’re also seeing the early stages of the economic reopening in Q2. Assuming the pace of reopening gains momentum through the quarter, recovery may be underway by Q3. Economists will debate the shape of the recovery, but a strong recovery in the second half of the year seems possible. According to Treasury Secretary Steven Mnuchin, “As we begin to reopen the economy in May and June, you’re going to see the economy really bounce back in July, August and September.” We are facing an unprecedented challenge and uncertainty remains high. In the words of the great philosopher, Yogi Berra, “It’s tough to make predictions, especially if it’s about the future.” What appears certain is U.S. economic results for Q2 will be ugly. Many businesses, including agents and brokers, will feel the effects for at least the next two quarters. But this crisis will pass and the economy will reboot. Perhaps soon. And for insurance agents and brokers, there are reasons to expect that a strong, successful, and growing firm entering 2020 will be a strong, successful, and growing firm entering 2021. Reprinted with permission from Reagan Consulting, Inc. u

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ISO's New MicroBOP Get Ready to Rumble in the Micro-Business Market The economic disruption caused by COVID-19 has left millions of people unemployed – at what many say is the highest rate since the Great Depression. In considering the future, those who've lost their jobs may think about starting a homebased business as the crisis eases or perhaps working more independently. This could create an expansion of the microbusiness market – businesses with few or no employees that often operate out of homes or shared spaces. Agents and insurers are already eager to tap into this space because it's rife with potential profit and attractive for many reasons. There are often no sites to visit and inspect; and many micro-businessowners prefer online service, letting agents pass-through sales to insurers quickly. Owners may have insurance needs they're unaware of, providing agents with the potential to cross-sell coverages as the business grows. They can start with a businessowners package and expand into auto and life. Once trust is established, agents can help contribute to the business's growth with tailored insurance solutions to ensure that insurance needs keep up with business expansion. This has been a proven way for agents to develop relationships and increase sales. All of this adds to the potential of the micro-business market. But because the segment is unique, traditional coverages and approaches often don't work. Agents and insurers need to develop a deeper understanding of the market and find new ways to properly penetrate it – today and especially as it grows in the future

Market Overview: The Expanding MicroBiz Universe Micro-businesses dominate the small business space in the sheer number of their operations: • • •

80% of all U.S. businesses have no employees.1 69% of entrepreneurs start their business in their home.2 About 50% of all firms are home-based.3

written by Joseph Lam & Jessica Dias

Gig economy workers: The gig economy generally refers to workers who hold temporary positions, organizations that contract with independent workers for short-term engagements, and other part-time models. All these segments are expanding rapidly, as indicated by research: • •

Through shared kitchens, the food delivery market could grow from $35 billion to $365 billion by 2030.4 According to a 2017 Cake & Arrow analysis,5 in 2014, 34 percent of the U.S. labor force – 54 million to 68 million people – was composed of independent workers in the gig economy; that is anticipated to increase to 40 percent by 2020.

Not Just Your Typical Small Commercial Market The factors that make micro-businesses work are what make them different from traditional commercial businesses. Without structure coverages, there are often limited property exposures. One of the challenges in insuring micro-businesses is also the mindset that often comes with an entrepreneur. Home-based businessowners may believe personal insurance policies cover the activity or the cost of coverage is too high. Pricing may be a barrier for insurers trying to enter the market. Also, new micro-businessowners can find insurance policies difficult to comprehend and purchasing insurance overwhelming. Many simply don't understand the need for insurance. All this contributes to a reluctance to seek coverage. It also creates a vast untapped market for agents and insurers: Verisk research reveals that 43 percent of small businesses with under 100 employees are uninsured.6 Many more are extremely underinsured for the risks they face.

The Solution? The Right Tools

Home-based businesses: These operations are primarily conducted out of the home but can take place at other locations, like a home baker selling products in a farmers' market.

To arm agents and insurers with the proper tools to handle micro-businesses, ISO, a Verisk business, created the MicroBusinessowners Program. Designed for micro-businesses of four employees or fewer, it offers basic coverages without the extras that traditional brick-and-mortar businesses may need. This keeps costs low, provides property and liability coverage subject to the policy that was procured, and considers the unique needs of micro-businesses:

Shared-space businesses: These are businesses that rotate to share space and include pop-up vendors, mobile shops, automated vending, and offices with coworking members.

1. Micro-businesses are on the go: Since the potential customer's business is often not tied to a defined location, this continued on page 44

As more entrepreneurs eschew traditional jobs to work in micro-businesses, they're providing a widening variety of popular services that generally fall into three models:

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Daniel Talks Agency Technology: Agency Management Systems pt. 3 What Are the Questions You Should be Asking? What are the key pieces of technology for the modern agency? How should you implement them and train your staff to use them? In this series I will look into agency technology and specific systems and how you can implement them at your agency. In the second article in this series, we talked about what questions you should be asking to sort through the systems and find the one that's best for your agency. We're going to continue that in this edition with important questions agents should be keeping in mind and answers from the agents, system providers and others we received feedback from.

We often hear that agents, “pay too much for a system their people can’t even use.” What can agents do to better measure the ROI from their system? Michael Doran, President, SIS/Partner Platform: Two things: The process (data conversion, timing, training, back-ups and general logistics) of successfully moving from current AMS to a new one and differentiating between what is shown on a demonstration of software and what is actually possible. Agents are done a huge disservice when given a “silver bullet” approach to running their business – it doesn’t exist. Changing agency management systems has it’s challenges and if you choose the wrong provider, it’ll will bring your agency to a crawl. Jenna Kleiber, Director of Marketing & Sales for Jenesis Software: Choosing a system that will fit their needs without overwhelming their staff with features they may not use will help with their ROI. If offered different training options, be sure to choose the one that fits your staff's learning styles the best. The training provided with the system is a key part of being able to measure your ROI. Agency owners need to be involved and committed requiring the training to be completed in a timely manner. Brent Sheppard, President, Xanatek, Inc.: It’s important to evaluate the individual needs of an agency – what do I need this system to do for me? How can I get my staff to use the system correctly? There are so many bells and whistles available in systems that may not be used by a small agency, but necessary for larger agencies. Training is important in this aspect too, as in how new staff are trained and supported. How will they learn to use a system if another staff member who doesn’t use it trains them? 14

compiled by Daniel Smith, CAE

To measure ROI, they should not just look at the overall profitability for new business or retention, but consider the technology as a business investment and asset to minimize E&O exposure. Another way to look at this is How much am I paying for the features I will not be using? Can I get the features I need in a system without paying for all the bells and whistles?

With ROI in mind, what do you feel are some of the top ways that the right system can help agencies sell more and operate more efficiently? Rushang Shah, VP of Marketing for Hawksoft: Efficient workflows with a streamlined set of steps or screens allow CSRs and Producers to save time that can be reapplied towards meaningful activities like relationship-building with clients, quarterly check-ins, and community engagement that will help your agency’s brand. The right system will offer insureds the ability to self-service the most important needs 24/7. For example, insureds should be able to generate a Certificate of Insurance for existing cert holders or add new cert holders at midnight — without the need to wait until the morning to speak with the agent. Use automation to alert staff in the agency about the most important things they need to attend to (ie, prioritize the list of tasks by urgent/important). Often, people spend the majority of their time doing things that are urgent but not important. What if the software could help prioritize for you based a series of rules the agency creates? Cam Winterburn, President at NetVu Nashville and Agent at Winterburn & Associates Insurance, LLC: I honestly think most true management systems are dropping the ball on the selling aspect – so I'll skip that. What they are doing is maximizing efficiencies on service. Anything that you can integrate with a system or automate within a system saves time. This allows you to spend more time on building connections, selling, or many other things that can generate revenue for your agency. Shaun McNeil, VP of Sales for EZ Lynx: Use system data to fill in the sales pipeline. If the system is smart, it’ll never let you forget a prospect. Automate repetitive, non-revenue generating tasks, like retention efforts. How much is 1 point of retention worth to the agency? How about 8 points? Focus on The Tennessee Insuror

client relationship & service touchpoints from simple things like B-day campaigns and cancellation notices to more complex like certificate self-service. Systems have gotten smarter. Agencies who avoid CL downloads should reconsider as systems no longer overwrite them. Stuart Ganis, SVP-Sales and Business Development for ITC: When Producers use a system in the sales process for commercial submissions, it makes Account Management a breeze. When everyone (yes, you too Producers) documents every conversation with clients, it makes the system worth every dime. I used to ask our agents, “If you’re abducted by an alien tonight, can I manage your accounts as if you were here?” It’s a great way increase ROI on management systems. When your downloads are set up correctly and you’re using most or all features, it changes everything including culture in your agency. I don’t know if you can measure the true ROI considering efficiency in sales, support and the ability to protect yourself from E&O exposure. The best way to get ROI from a system is to learn it and prioritize usage.

How do you feel training and utilization of a system has improved, or needs to improve, in the current marketplace? Kleiber, Jenesis: Training and utilization have come a long way in the last 15 years. There didn't use to be a lot of help when you bought a system. Now, there are videos you can

refer to anytime, webinars and live one-on-one training/help, as well as chats available where you can ask specific questions when needed. Some systems, like Jenesis, even come with a certification process to ensure that your users will be comfortable using the system before moving forward on their own without their trainer. This leaves less room for them to become overwhelmed and potentially giving up altogether. Doran, PartnerPlatform: Agencies have three primary areas to focus on learning: Insurance Products, Service and Sales Skills, and then how technology support those critical components. The best agencies have adopted a learning culture whether they call it that or not. Know your options for learning and make time to learn – individually and as a team or agency. Be intentional and consistent. AMS providers should be doing this at no cost to the agency. To charge additional is counter to serving the agency and gets in the way of agency progress. Shah, Hawksoft: As with most other software platforms, users tend to only use 40% of the platform's features. One way to increase feature awareness is to have a contextual help system (often shown with bubbles or tooltips). These will show an overlay on the software the first time a user engages a workflow. It teaches at the point and time of highest need – when the user is wanting to engage the workflow. Winterburn, NetVu Nashville: I think this is an area where they can truly improve. Nobody seems to have a true onboarding workflow for a new employee, and the big systems are so vast – with multiple different workflows – that it would

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The Tennessee Insuror

Michael Doran President

Nick Massaro Regional Sales Manager

Are you making the Right Choice for their Business?

be hard to do. We have been able to use a screen record system to host quick videos to walk employees through frequent problems in our system. I think an on demand library like this would really help on a larger scale. Sheppard, Xanatek: Training needs to be flexible, especially with smaller agencies. The ability to do it at the agent’s convenience is important, as they can’t always schedule out, or commit, based on business needs. But training needs to be affordable, as well as convenient, otherwise the agency will never complete the training – thus never fully utilizing it either. The average agency only uses 40% of what they have. Agents need to continue to learn after they purchase a system. All the vendors have multiple ways to learn about the system, but to truly utilize what is there, they need to set aside time for the entire staff to learn the new features that are being added. Time is also needed to revisit items they already know. Many times the office is doing the same process in different ways throughout the office. Take the time to make sure your office is utilizing the system most efficiently!

Are there other thoughts/comments you’d like to have considered? McNeil, EZLynx: Look beyond the system to the provider’s business model & ownership. Some longstanding and larger software system providers have started to demand 3, 5 even 7 year contracts. Annual price increases with no promise of future innovation. Ask yourself, what business conditions drive this kind of behavior? Debt, frequent ownership transition, growth mainly through acquisition or even an aging product platform may all be factors. Regardless, intent, focus and priorities of any partner matter.

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Ganis, ITC: Price is important, but don’t go with the cheapest product on the market. Insurance Agents (me included) complain about clients being price sensitive but then make price one of the top weights in their decision-making process. You get what you pay for and in the grand scheme of things, a 1020% difference in price shouldn’t be the deciding factor. Don’t settle because of price, choose a system that works for you. Doran, PartnerPlatform: It’s worth noting that data conversion and agency transitions are not all created equal and what was once acceptable (or at least accepted) is no longer the case. For any AMS provider, if time has not been spent developing the necessary details for a successful conversion, then it requires a transparent conversation. Every AMS does conversions for a living and some much better than others. Agencies need to check references and understand the anticipated work that will fall on their shoulders during this time and build that time and cost into the transition.

More to Come We'll continue this article series with a comparison of systems and functions in the next issue of The Tennessee Insuror. u 16

• Services Contractors • Building Cleaning & Maintenance Contractors • Construction Material Suppliers • Manufacturing • Wholesale and Distributing

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The Tennessee Insuror

4/3/20 9:27 AM17

Future Leaders Spotlight

presented by

Nima Hayati â&#x20AC;˘ Third Door Insurance - Nashville Nima Hayati's parents came to the US for school back in 1977. After he was born, they decided to stay, gain their citizenship, and start a life in Nashville. He credits his parents with much of his success, including the lesson of how to work hard for the things you want. Although he says they barely spoke English when they came to Nima Hayati of Third Door the U.S., he credits their hard Insurance work at their jobs, earning college degrees, and raising a successful family all while trying to fit in to the American culture. Nima says overcoming the challenges they went through helped shape the foundation of his work ethic, competitive drive and desire to succeed.

The Insuror: Can you tell us a little about your current job title and responsibilities? Nima: My partner Chad Boruff and I started Third Door Insurance at the end of 2019. We have two shops, one in Nashville which is the home office and a satellite location in Knoxville. I myself handle more of the operations side of things. Recruiting, developing employees and carrier relationships as well as monitoring sales activities and driving production. Chad handles more of the day-to-day sales side of things. He manages our producers and helps with sales strategies, cultivation of ideas and client relationships.

The Insuror: What can you tell us about your educational background? Nima: I studied Marketing and Business Administration at Middle Tennessee State University. I was also highly involved in the sales program. I participated on the sales team within the marketing department and attended several sales competitions throughout the Southeast. After college I was hired by Federated Insurance and moved to Minnesota where I studied and attended insurance classes for almost 12 months. By the time I got out of their training program I was more knowledgeable than most insurance producers that have been in the job for five years. The training I received from Federated was outstanding! The experience I gained from working for that company really helped me understand not only the insurance products but also the insurance industry in general. It set the foundation of owning and running our agency that we have today. 18

The Insuror: How and why did you get your career in the insurance industry started? Nima: Funny story actually. There were two careers that I did not want to explore after graduating college. One, a car salesman, and two, an insurance salesman. It seemed like on every job board, tons of auto dealers were hiring for sales people and every insurance agency, broker â&#x20AC;&#x201C; you name it â&#x20AC;&#x201C; was hiring for producers. Every phone call I would get was a recruiter pitching me for an insurance salesman job. I thought those jobs were dime a dozen and they didn't seem special. I didn't want to be just another sales person. When Federated approached me and explained the career path, the training, and what the job entails with the incentives and how you truly have to build relationships with clients in order to gain success, that intrigued me. It interested me enough to go on a four month interview process and then move to Minnesota for a 12 month training program. Fast forward 13 years later, now I own my own insurance agency! Funny how things work out.

The Insuror: Do you have any influences/role models in the industry? Nima: I do, and funny enough it is another ex-Federated employee who started their own agency in Columbia, South Carolina. As a matter of fact, he was my roommate and study partner while we were both in training in Minnesota. Bryan and his partner started their agency a few years before Chad and I did. He had already gone through the hurdles of dealing with carriers, hiring producers, and all the other challenges we come across when starting an agency. I bounced ideas, thoughts, and concerns off of him prior to us even starting our agency. We still currently talk at least once a month if not more about what's going on in our companies and how we are growing. We constantly are helping each other with ideas of how we can get better. It really helps to have an advocate and someone who's already been through the challenges of starting an agency, but also he is in the younger stages of building their agency so you're going through the same challenges together. We come across adversities they haven't seen or vice versa and we share and help and grow because we're in this together and not really competing for business.

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

Nima: Do we have several pages dedicated to the answer to this question? I feel like this is what I do on a day-to-day basis, mentoring, teaching and developing my young producers. Chad and I have a combined 22 years of experience in the business, although still fairly young compared to most other agency owners in the industry. People think that insurance is old and insurance is boring, where it's actually the opposite. It's an evolving industry and we have been forced to change with technology which is a good thing. But it's also a very rewarding and exciting career because not only do we sell a product that gives people a peace of mind, but we step in and help people at their biggest time of need - during a claim. Whether it be a small car accident or a huge tornado that takes out the entire building, they look to us for support during this time and to help put them back to where they were. There is a lot of value in what we do, our job is crucial to our clients, and the relationships we build with our people is extremely important for a long term career. The advice I would give young industry professionals is this job, this career in insurance isn't about how successful you are in year one. It isnâ&#x20AC;&#x2122;t about your success in year two or year three. Every year you are working to build your business, your client base and your relationships little by little. Then, after 10, 15, 20 years you can look back and really notice and enjoy the success you have built, the clients you have protected and the relationships you have created.

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? Nima: Seems like there are 100 carriers out there who want to partner with you at any given moment. Itâ&#x20AC;&#x2122;s very difficult, it can be very challenging to navigate who and which ones are the right fit. What we look for is a partnership. It's not about who can give us the most commission, the best year-end bonuses, the most extravagant incentive trips. Those things are nice and important, but it's not what grows an agency. When we look at carriers we ask questions like, do we get a dedicated underwriter? Is that underwriter directly involved, incentivized, and tied in to help us grow and retain profitable business? We ask what the growth projection looks like for that carrier and our state. And lastly, we ask about markets. Is this carrier one who will decline an opportunity because they had one shock loss a few years ago, or do the underwriters have flexibility in allowing that quote to go through? There is not an easy answer to this question because sometimes it's trial and error. We spent probably six months trying to decide whether our agency was the right fit for an MGA and we decided against it. We want to grow organically. We wanted to develop relationships with carriers, which in turn has turned into a partnership with many of them helping us grow our agency get to the next level with production.

The Insuror: Thank you for giving us your time, Nima, The Tennessee Insuror

we appreciate it and wish you continued success. Nima: Thank you for giving me the opportunity to talk about Third Door Insurance. We're excited to be part of Insurors of Tennessee and hope we can be together in person again soon. u

Young Agents '20 Upcoming Events and Information Our Young Agents Committee strives to offer young insurance professionals with opportunities to network and develop in the industry. We accomplish this by hosting receptions, classes and volunteer opportunities designed to meet the needs of insurance professionals under 40 years of age across Tennessee. Over 500 Insurors members participate in the Young Agents program in some fashion. With most of our Spring events postponed, our committee will revisit opportunities to hold local events in the next available window of scheduling. We hope you'll join us at a future scheduled Young Agents event or contact us for more information.

Young Agents Committee Cy Young - Chair President Young-Hughes Insurance Alamo cy@younghughesinsurance.com Forbes Harris - Region I Producer Harris, Madden & Powell Insurance Memphis fharris@hmpins.com Matt Felgendreher - Region II Executive Vice President W.C. Dillon Company & Insight Risk Management Nashville mfelgendreher@irmllc.com Derek Wright - Region III Agent/Principal Graham & Cook Insurance Knoxville derek@grahamandcook.com For more info, or for any questions on the Young Agents Committee and its programs, please contact Daniel Smith at dsmith@insurors.org or call 615.515.2601. u 19

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The Tennessee Insuror

From Your President In the Blink of an Eye We have a preacher at our church who has spoken often of how our world can be turned upside down in the blink of an eye. We all experienced this in March, and it mattered not how large or how small our agencies were or where we were located. COVID-19 has affected every person in this state and we’ve all been forced to adjust our ways of doing business and our lifestyles either by force or by choice. Independent Agents have once again demonstrated how resilient we are and our ability to adjust to ever changing circumstances never ceases to amaze me. I have been on call after call and watched as agents have come together to help their fellow agents. They have shared their ideas and what they have learned with those that were struggling with how to implement change. While we all compete with each other for clients we also realize we are all better when each of us is the best we can be. That is what I have observed these last few weeks, agents helping their fellow agents be the best they can be. We all are striving to attain the same goal and that is the capability to serve our clients to the best of our ability.

Change Creates Opportunities We’ve all had to learn to do things differently and this includes your Association. Most of the staff have been working remotely with Ashley and Daniel still coming into the office. Throw in a couple of severe weather events in the Nashville area and needless to say things have been somewhat challenging. With all that has gone on they have continued to keep us very well informed with timely information on the many different topics that are so critical to independent agents during this pandemic. We will all get through this and we will be stronger in having learned during the process. One of the events impacted was the Agency Growth Conference. While we will not be meeting together in Nashville, your Insurors team has worked hard to deliver the same conference but in a virtual setting. This is an opportunity to involve more people from your agencies The Tennessee Insuror

and see firsthand what a great event this is.

Help Support Our Efforts If you have not been to the Big "I" website, at www.iiaba.net – I would encourage you do so. They are literally working around the clock to protect our interests on Capitol Hill as well as keep their members up-to-date on the latest developments. There are numerous links providing information on: how to handle BI claims, non-owned auto coverage, information on the do’s and don’ts of working remotely, and PPP loan information just to name a few. From an advocacy standpoint they are representing our concerns on overzealous legislation that would endanger the financial health and stability of the companies we all represent. At the risk of sounding like a broken record, your PAC contributions to both the state and national PACs are more important than ever. I have been in this business 37 years and have never seen times that are going to test our businesses and our way of life as they are today. Like it or not it takes money to effectively fight these fights and we desperately need your help. As a note of clarification, we support two different PACs, the first being InsurPAC National that is used at the Federal level and the second is InsurPACTN that is used in our legislative efforts here at home.

"Independent Agents have once again demonstrated how resilient we are...”

What Lies Ahead? And as our hopes turn to returning to some type of "normal," it’s also time to start thinking about this year’s convention scheduled for October 10-13 at the JW Marriott in downtown Nashville. While there is no way to know what the status of large gatherings in Nashville will be in October it would be helpful to know what your comfort level would be in attending such a gathering. Please feel free to reach out to Ashley, Daniel or myself and let us know your thoughts. In the meantime, let's all keep helping each other, which will in turn help our communities and our country. u

Bob McIntire 21

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The Tennessee Insuror

From Your IIABA National Director The "Why" of Our Federal Involvement As I write this, we have just completed the largest Big "I" Legislative Conference in our Association's history, with over 3,500 attendees. The difference this year? We had a virtual event for the first time ever in the face of the Coronavirus pandemic. Over 70 attendees were from Tennessee, and we continued our strong involvement by winning our second straight Eagle Award. The award signifies contributions to our national PAC at a level over $100 per agency. We even placed 6th among all states in total dollars raised! So, why does any of that matter? Why do we so often talk about the political involvement of our Association? Before I got more involved in the Insurors Board, I had many of the same questions. But then I began to see the impact that Big "I" has on the Federal level in addition to our State efforts. Let's just take a look at how some of those Federal efforts have impacted our industry in the last few years.

Tax Reform The Big "I" secured a significant victory for its members when Congress passed and the Treasury Department implemented tax reform – and a survey confirmed that an overwhelming majority of Big “I" members saw tangible tax savings regardless of corporate structure. In fact, 49% of Big "I" members classified as C-corps, and 66% of members classified as pass-through entities saw savings greater than $5,000. As tax reform made its way through Congress, the Big “I" left nothing on the table, tirelessly advocating for all independent agencies. The Big “I" federal advocacy team pounded the pavement daily and leveraged InsurPac, our Federal political action committee, to develop and strengthen relationships with legislators who were shaping the public policy debate. InsurPac involvement helped move the needle and achieve real results for independent agents, as it does time and time again on all issues.

Cadillac Tax Repeal/TRIA & NFIP The Big "I" helped pass a major spending bill The Tennessee Insuror

at the end of 2019 which reauthorized the Terrorism Risk Insurance Act (TRIA), extends the National Flood Insurance Program (NFIP) and repeals the Affordable Care Act’s “Cadillac Tax" provision. These were three major priorities for Big "I" and its members, and they were the result of many hours of work by the Federal legislative team.

Work Against Pandemic Fallout As the pandemic fallout continues around the world, the Big "I" is fighting here in D.C. to make sure that retroactive business interruption (BI) coverage for COVID-19 claims does not gain traction. The Big “I” created a document that explains what BI coverage does and does not cover and why attempting to revise insurance contracts retroactively is a bad idea. The document notes that legislatively rewriting existing insurance contracts by somehow nullifying the virus exclusion or the physical damage requirement would be unconstitutional. The Association is working closely with the business community on a proposal that would enable those in need to receive compensation from the federal government. The proposal, titled the COVID-19 Business and Community Continuity and Recovery Fund (the "Recovery Fund"), is modeled after a streamlined version of the 9/11 Victims Compensation Fund legislation, with important distinctions designed to simplify the application process and speed payment to COVID-19-impaired business, while reducing the potential for fraud.

“B u t t h e n I began to see the impact that Big 'I' has on the Federal level in addition to our State efforts.”

In addition, the Big "I" is continuing to provide guidance for agencies who were able to take advantage of the Paycheck Protection Program and CARES Act. They also worked with carriers to develop their own fund for independent agencies, which has distributed close to $2 million in funds to date.

Agent Involvement is Key Hopefully, this provides you some answers on both why we talk about it and why it is important to be involved. Please participate with us! u

Cindi Gresham, CIC 23

Endorsed Partner of

The Tennessee Insuror

From Your CEO All Aboard? This has been one heck of a year for Tennessee, the country and the world. So, what do tornadoes, pandemics and business income litigation have to do with Insurors? Behind the scenes, and from our homes, your Association has spent countless hours over the last ten weeks to protect the interests of independent agents and brokers as regulators scramble to figure out how to respond to the pandemic. This is on top of our regularly scheduled activities that have been modified due to the circumstances.

short and long term. Our Association staff and lobbyists have been on the front line working with the Tennessee Department of Commerce and Insurance, the Chamber of Commerce, the Bureau of Workers' Compensation and the Governor’s office questioning proposed regulations and influencing how Orders and Bulletins are issued and interpreted. We have been making sure – as best as we can – that the unintended consequences of regulations do not adversely affect the viability of your agency.

Recently, noted author, speaker, industry technology expert and Tennessean, Steve Anderson, wrote an article titled “Is Your Insurance Agency an Association Freeloader?” The premise of Steve’s article has been around in Association halls for years, “Everyone is a member, but only some pay.”

But that’s not all, immediately prior to Tennessee being shuttered due to COVID-19, Insurors was able to file, support and shepherd a bill through the Tennessee legislature relating to Certificates of Insurance. This bill provides support for insurance agents who receive pressure to modify insurance contracts through Certificates of Insurance. This bill was one of the last passed (now coded into law as Public Chapter 608) before the legislature shut down and will become law July 1, 2020.

We sometimes run across agency owners who – seemingly proudly – boast they are not a member of any state association. These agency owners question the value an association provides them. Why should they support an association by paying dues that are made up of old "legacythinking" members who fight change and the digital transformation they are leading? I would argue that these agency owners are shortsighted at best. Hence Steve’s question – "Is your Agency an Association Freeloader?" (his full article is available at https://steveanderson. com/2020/05/04/is-your-insurance-agency-anassociation-freeloader/ ) free·load·er | /frē lōder/ defined as a person who takes advantage of others’ generosity without giving anything in return. Let’s take a look at why you belong and why you should care when others don’t.

Pandemic-Related Executive Orders and Regulations Impacting Your Agency Various state Governors and Insurance Departments have been issuing executive orders and emergency regulations that impact agencies

We plan to have a full overview on the new law available for members on our website at insurors.org in the coming weeks. We'll cover the law and the frequently asked questions about the changes. Additionally, Insurors’ lobbyists are already hard at work on the state level to address protections for businesses against liability should a patron contract COVID-19 and sue your insured for negligence. We are monitoring and will fight any legislation that would mandate Business Interruption coverage in commercial contracts in Tennessee. We are working with our national association, Big “I”, and their lobbyists to protect against bills that would retroactively rewrite commercial insurance contracts to include Business Interruption coverage, and any other proposed damaging legislation.

“. . . y o u r Association has spent countless hours over the last eight weeks to p rote c t th e interest s of independent agents...”

An agency that is not a member of Insurors is reaping the benefits of the Association that members like you help provide. They are relying upon your – our members’ – foresight and willingness to fund the work that protects their

Ashley Gold, J.D. The Tennessee Insuror

agency, without getting "all aboard" the Association train by paying their own way.

Associations are Changing Too Insurors is constantly working to bring our members updated products and services. As agencies and businesses began to shut down due to COVID-19, we quickly provided resources for remote working and educational opportunities to keep you up to date with the latest information as it became available. We are also working on long term projects to provide new services to agency members. Especially around technology assistance, knowledge, and utilization. Digital transformation is real for all parts of the industry, and we are responding to these needs.

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www.independentagent.com/EOHappens

If you are reading this, your agency is already a member of Insurors – thank you. You are leading and providing the resources necessary to protect the vitality of your organization and the industry. If you know other agencies that are not members, we'd encourage you to ask them to learn more and consider joining. Have them contact me or one of our staff members to discuss it. The work we are doing benefits us all, let's make sure everyone else is sharing in the efforts. u

Visit the E&O Risk Management website at www.independentagent.com/eohappens

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The Tennessee Insuror

EDUCATION SCHEDULE

Education Calendar

NASHVILLE

2020

FE B . 5 - 7 - CIC: Com m e rcia l Ca s ua lty FE B . 1 1 - CISR: Pe rs ona l Res identia l M AY 6 - 7 - CIC: Ruble M AY 1 2 - C ISR: Com m e rcia l P roperty SE P. 1 6 - 1 8 - CIC: Age ncy M a na gem e nt NOV. 1 1 - 1 3 - CIC: Com pa ny Operations D EC. 1 - CISR: Pers ona l L ine s

KNOXVILLE APR I L . 1 - C ISR: Pers ona l Auto AUG . 5 - 7 - CIC: Com m ercia l Ca s ua lty SE P. 3 0 - CISR: Com m e rcia l Ca s ua lty II

The Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialties 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.

C H AT TA N O O G A A PR I L 2 - CISR: Pers ona l Auto O C T. 1 - CISR: Com m ercia l Ca s ua lty II

MEMPHIS FE B . 1 2 - CISR: Pe rs ona l Res identia l M A RCH 4 - 6 - CIC: Com m e rcia l P roperty M AY 1 3 - C ISR: Com m e rcia l P roperty D EC. 2 - CISR: Pers ona l L ine s

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

JOHNSON CITY

M A RCH 3 1 - CISR: Pers ona l Auto SE P. 2 9 - CISR: Com m e rcia l Ca s ua lty II

AB EN: Webcasts fo c using o n different lines o f business ins uro rs. aben.tv

C OM ING SOON: Insurors & New L evel Partners a nnounce learning so lutio ns fo r New E m ployee Educatio n, inc luding bundles o n: I nsuranc e Basic s, Persona l L ines & C o mmerc ial L ines

CISR 9/29 9/30 10/1 12/1 12/2

Fee: $186

CE: 7

Commercial Casualty II Commercial Casualty II Commercial Casualty II Personal Lines Miscellaneous Personal Lines Miscellaneous

CIC

Fee: $430

Johnson City Knoxville Chattanooga Nashville Memphis

CE: 16

7/20-21 Ruble Graduate Seminar 9/16-18 Agency Management Institute 11/11-13 Insurance Company Ops Institute

Now Online 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

Torts, Negligence & Liability NFIP Then and Now E&O: Comm. Prop. Coverage Gaps E&O: Roadmap to Policy Analysis I Commercial Prop. Endorsements E&O: Meet the Challenge of Change Business Auto Claims Problems Ethical Issues: Personal & Org. Business Income and Extra Expense

Fee: $440

CE: 16

Nashville

ABEN Webcasts (insurors.aben.tv) Cyber Security and Insurance Risk CE: 2 $48 Double Trouble - COI and Biz Auto CE: 2 $48 Are You More Ethical Than Politician? CE: 1 $24 E&O: Roadmap to PAP and PUP CE: 3 $72 E&O: Roadmap to HO Endorse. Pt. 1 CE: 3 $72 E&O: Roadmap to HO Endorse. Pt. 2 CE: 3 $72 Flood Program Overview: NFIP CE: 3 $72 Premium Auditing: Agents Must Know CE: 2 $52 The Basics of COPE CE: 3 $79 The Law of Insurance Contracts CE: 3 $79

CE: 3 $79 CE: 3 $72 CE: 3 $72 CE: 3 $72 CE: 2 $48 CE: 2 $48 CE: 2 $48 CE: 3 $72 CE: 2 $48

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

10/7-8 Financing of Risk

6/8 6/8 6/8 6/9 6/9 6/9 6/9 6/10 6/10 6/10

6/10 6/10 6/10 6/11 6/11 6/18 6/18 6/18 6/18

(www.scic.com)

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

$75 $75

(insurors.ceu.com)

Insurance Principles and Policies CE: 7 Long Term Care CE: 24 Workersâ&#x20AC;&#x2122; Compensation CE: 10 Employee Benefits for Small Companies CE: 4 Healthcare Reform and Affordable Care CE: 5 eCoverage 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

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

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5 Ways to Help Commercial Clients ...continued from page 8 their underwriting standards due to increased claims cost, poor loss ratios and deteriorating investment income. For your clients, this means underwriters are going to ask more questions than in years past and will be more selective in the risks they are willing to recommend. In this setting, it’s doubly important to ensure you’re able to provide targeted risk management advice that can improve your clients’ risk profiles. Whether you provide this guidance in-house or connect your clients to this information, it’s important to demonstrate that your clients take a proactive approach to risk management. Remember, best-in-class risks get best-in-class pricing which, in this case, may mean less dramatic premium increases.

4) Start Renewals Early; Focus on Quality Submissions “Start your renewals early” is the advice that insurance brokers hear every year. This is especially true this year. The earlier you start working with clients on their renewal, the more time you will have to address issues with their submissions. Whether it's addressing risk management issues or determining how to structure insurance coverage, time is a valuable asset – especially since many carriers are seeing an uptick in submission volume for certain lines of coverage. Many underwriters will outright dismiss incomplete or sloppy submissions.

5) Leverage Technology for Improved Service Your clients are going to expect a lot out of you. Businesses today are looking to their insurance agents to help them control their risk, structure their insurance policies and provide timely guidance. In light of these demands, agencies are increasingly embracing InsurTech solutions to find efficiencies in their workflows. Doing so helps agents focus on their core responsibilities while still delivering best-in-class insurance and risk management advice. What’s more, given recent shifts toward digitization in the industry, technology is sure to play an even larger role in your everyday operations in the coming years. Now is the time to examine available InsurTech solutions that allow your agency to enhance its value proposition and be a partner that your clients can rely on. Now more than ever, your clients are leaning on you for expertise, guidance and support. Stay informed, communicate with them early and often, and be there as their business consultant during this challenging time, and you’ll secure your position as their essential long-term partner in the years to come. About the Author Brendan Zyvoloski is a senior market analyst specializing in P&C products at Zywave. u

AmGUARD • EastGUARD • NorGUARD • WestGUARD

Proud of our

Independent Agents In times of crisis, it’s reassuring to know that our company has a network of industry experts representing us on the front lines. Thank you for your help in relaying COVID-19 relief measures we have implemented to ease some of the financial burden on our policyholders.

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ 30

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Layman's Terms

Advocacy Update: State Legislature Resumes, PAC Fundraising More Important Than Ever Insurors Director of Government Relations, Jim Layman, J.D., breaks down the legal and legislative issues facing our industry. As you read this, the Tennessee General Assembly has reconvened to finish up its work following an unprecedented quick recess due to the impact of COVID-19. In March, the Legislature passed a budget that provided for no revenue growth and did not include tax cuts that had been anticipated before the arrival of the virus. Now, the State is looking at slashing spending even further as the virus is anticipated to cause negative growth to state coffers. As far as what else the Legislature will consider – like a lot of things – it's up in the air. There is a lot of uncertainty as to what they will consider, how long they’ll stay, and even if the public (including myself) will be able to attend legislative hearings in person to advocate. Despite all this uncertainty, one thing remains true: it is imperative that we maintain a strong political action committee (PAC) in order to ensure that candidates are elected that we have good relationships with and that support the interests of our members. Recently, you should have received an Agent Advocate email with a letter from our President, Bob McIntire. Bob and I agree that PAC fundraising this year is undoubtedly difficult. Many agents and their clients are struggling. However, PAC giving is something that must be prioritized, even in these uncertain times. Right now, legislators on the state and federal level are considering proposals that could mandate retroactive coverage of business interruption claims related to COVID that were clearly excluded and for which premium was not collected. Such a proposal could quickly wipe out carriers’ surplus and have negative impacts on agent compensation. Legislators are also considering proposals that could provide lawsuit protection from COVID related claims for businesses that are trying to reopen so that they can stay in business while also following CDC and state guidelines on cleaning and social distancing.

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The best way we can support candidates and policies that benefit our industry is through your generous support of InsurPACTN. Please visit https://bit.ly/3fRiyhW to give or mail a check made out to “InsurPACTN” to Insurors office. All contributions are appreciated, but you’ll find our giving levels on the next page. Your help is greatly needed. Due to the pandemic, we will be moving our Legislative Town Hall event to a virtual format. If you previously attended a Town Hall, you know it is a great opportunity to hear about the government affairs team's work and to hear from local legislators. I hope you will join us by registering at insurors. org and remain engaged in advocating for your industry. I also wanted to take a moment to thank all of you who attended the first-of-its-kind Big “I” Virtual Legislative Conference. Tennessee had over 70 members participate, putting us well ahead of many of our neighboring states. We heard from Big “I” staff on important federal issues and from key members of Congress who are our partners in D.C. Tennessee was also fortunate to be recognized for receiving the InsurPac Eagle Award for contributing to our national PAC at a level over $100 per agency and placing 6th among all states in total dollars raised. Well done! Now let’s keep up the giving for InsurPACTN! About the Author Jim Layman, J.D. is the Director of Government Relations for Insurors. He previously worked for the Tennessee Dept. of Mental Health and Substance Abuse Services as legislative liaison and rules coordinator. Prior to that, he worked for the Dept. of Health as a legislative liaison and the Dept. of Labor and Workforce Development as director of unemployment insurance appeals. Jim graduated from the University of Memphis Cecil C. Humphreys School of Law and received his undergraduate degree from the University of Tennessee. He may be contacted at jlayman@insurors.org. u

InsurPACTN Contributors Recognizing our Top 2020 Supporters Champion's Club ($1,000 or higher) Anderson Benson Insurance • Bob McIntire • Brad V. Smith • Cindi Gresham • Hardin County Bank Insurance • Frank E. Neal & Company • Chip Fridrich • Jimmy Ward • Kym Clevenger • Mark Slater • Martin & Zerfoss, Inc. • John McInturff III • Miller Loughry Beach Insurance Services • Kevin Ownby • Lou Moran III • Norfleet Anthony III • Oseman Insurance • Powell & Meadows Insurance • Price & Ramey Insurance • SecureRisk • SouthPoint Risk Advisors • Strate Insurance • Sunbelt Insurance Group • Swallows Insurance • Tee Zerfoss • Thompson & Smith • V.R. Williams & Company • Westan Insurance Group • White and Associates Insurance

Capitol Club ($500-$999) Barnes Insurance • Bolivar Insurance & Real Estate Agency • Boyle Insurance • Bradshaw & Co. Insurors • Cy Young • Ed Gibbons • Edwards, Tipton and Witt Agency • Griffin Insurance Agency • Inter-Agency Insurance Services • Jamie Williams • John Bailey Company • John McCord • Keith Phelps • Lipscomb & Pitts Insurance • Lofton Wells Insurance • Maddox Insurance Agency • Porch Stribling Webb Insurance • Reno Benson • Richard Whitley • Scott Ferguson • Steve Oseman • Taylor Porch • TownsendEvans Insurance • Widener Insurance Agency

Campaign Club ($50-$499) Abbott Insurance Agency • Bailey Insurance Service • Battle Page Insurance • Burke, Powers & Harty • Capital Risk Management Group • Carnal-Roberts Agency • Chambers Insurance Agency • Coker, Wolfe & Associates • Coley Insurance Agency • Clagett Huddleston Insurance • Crye-Leike Insurance • Elite Insurance Solutions • Encompass Insurance • Farris Evans Insurance • Fred L. Davis Insurance • Flegal Insurance • Fridrich & Associates Insurance Agency • Gary Cooper Insurance • Guess Insurance • Hale Insurance • Handley Insurance Resources • H.B. Cowan & Co. • Heritage Insurance Group • Herron-Connell Insurance • Insurefit RM • International Insurance Brokerage • Ivy Insurance • Holman & Holman Insurance • Hyde & Associates • James A. Rothberg & Associates • JM Insurance Agency • Keisling Insurance • Kellon Insurance • Markus Insurance • Northshore Insurance • OccuSure Workers’ Comp Specialists • Oldham and Cox Insurance • Ownby Insurance Service • Page, Chaffin & Riggins Insurance • Parker and Watts Insurance • Perry Trowbridge • Public Risk Insurors • Raborn Insurance Agency • Ron Berry Insurance • Shafer Insurance Agency • Shannon Insurance Agency • Sills Insurance • S.N. Anthony Inc. • Swafford Insurance • Taylor Insurance • T.C. Simmons Insurance • Tri-State Claims • Trust Point Insurance • Tucker Agency • Veritas Risk Management & Insurance Services • Waggoner’s Insurance Agency • Wall-Modrall Insurance Service • Watauga Insurance • Whitehead Insurance Group

Advocate The Agent

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MY CUSTOMER WANTED TO GROW HIS BUSINESS AND WAS COMPETING

FOR A LARGE CONTRACT T.

I ISSUED A COI FOR HIS

BUILDERS MUTUAL POLICY

THAT VERY DAY.

THANKS TO BUILDERS MUTUAL I CAN GIVE MY CUSTOMERS WHAT THEY NEED WHEN THEY NEED IT. Whether itâ&#x20AC;&#x2122;s the voice in your head or the one right beside you, Builders Mutual is always there, at work with you. BuildersMutual.com

Strickland General Agency Let Strickland General Agency help you with exceptional service, quality markets and the products your clients need for risk like:

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Pamper your customer’s business with a policy from West Bend. Your customer’s business is their pride and joy. Now help them nurture it. An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable. So wrap it in the cozy warmth of the Silver Lining®.

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Association Update Vaughan Named as an "Agent of the Year" Trae Vaughan, a partner at Brock Insurance in Chattanooga, was recently named to the Insurance Journal magazine's "2019 Agents of the Year" list. After beginning his career as an account executive for Travelers, he has spent the last 11 years building a book of business as an agent. Vaughan specializes in construction and real estate insurance and bonding and captives.

Hub Acquires Hatchett Insurance Global insurance broker Hub International Limited (Hub) has announced the acquisition of Winchester-based Hatchett Insurance Agency, LLC. The transaction terms were not disclosed. Hatchett Insurance is a family- run independent agency providing personal and commercial insurance, and employee benefits, including home and auto insurance, business insurance, life insurance, group health and more to households and businesses of Middle Tennessee. The Hatchett Insurance team will join Hub Mid-South and remain in their current office location.

Martin & Zerfoss Adds Shomaker

coverages.

Nashville-based agency Martin & Zerfoss, Inc. has announced the addition of Taylor Shomaker, AAI to their sales team. Shomaker is a University of Tennessee graduate and specializes in the entertainment industry – where he previously worked for over 13 years – while being knowledgeable on many other P&C

Albrecht Joins Reliance Partners as CFO/CRO Chattanooga-based Reliance Partners has announced that Thom Albrecht has joined the company as chief financial officer and chief revenue officer. Prior to joining Reliance Partners, Albrecht was a transportation equities analyst and investment banker for nearly 30 years at The Tennessee Insuror

several banks, including BB&T and Stephens. In October 2017, he joined Celadon Group to help Paul Svindland attempt a turnaround, serving at different times as chief financial officer, chief strategy officer, executive vice president and chief commercial officer at the truckload carrier.

Shafer Insurance Helps Award $5,000 Grant Shafer Insurance Agency, based out of Knoxville, recently announced the awarding of a $5,000 grant to Second Harvest Food Bank of East Tennessee thanks to Liberty Mutual and Safeco Insurance's Emergency Community Support Grant Program to help the East Tennessee community.

Davidson Honored by Town & Auto-Owners Nelda Davidson of Maddox Insurance in Huntingdon has been honored by Mayor Dale Kelly and the Town of Huntingdon for being named to the Auto-Owners President’s Club. Nelda finished 2019 as one the top 25 agents out of 2,500 in the nation for life sales with Auto-Owners Insurance Company.

Griffin Insurance Celebrates 40 Years On Thursday, May 21, Kingston member Griffin Insurance Agency celebrated the 40th anniversary of their agency. Johnny Griffin founded the agency on the same date in 1980, and they have been serving their community ever since.

Martin Named to Credit Union Advisory Board Cody Martin, a vice president of business development for Westan Insurance Group in Union City, has been named to the 2020 Northwest Advisory Board for Leaders Credit Union. The board serves to provide insight and suggestions for new products, services and outreach for the community. Leaders Credit Union is a member-owned financial cooperative serving the communities of West Tennessee. u 35

Your insights

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Your attorney clients know their firm inside and out. You know your markets and your competitors. At Swiss Re Corporate Solutions, we have the capabilities and the financial strength to meet the risk needs of insureds for Lawyer’s Professional Liability. Whether the risk is basic or complex, we believe there’s only one way to arrive at the right solution. And that’s to work together and combine your experience with our expertise and your strengths with our skills. Long-term relationships bring long-term benefits. We’re smarter together.

Swiss Re Corporate Solutions is proud to be the exclusively endorsed Lawyer’s Professional Liability provider for the Insurors of Tennessee. For more information or to access the program, please contact administrator Jeff Severino of Lockton Affinity at JSeverino@locktonaffinity.com or 913.652.7520.

Insurors of Tennessee Ph 1 800 264 1898 E info@insurors.org

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Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, United States, a member of Swiss Re Corporate Solutions.

Company Spotlight Central Insurance Founded in 1876, the Central Insurance Companies have evolved into a successful property and casualty group, providing auto, home and business coverages to more than 350,000 policyholders in 24 states. Central operates under the leadership of President Evan Purmort on a strong foundation of core values including Integrity in the way it operates its business, Relationships developed by trusting its partners and sharing in each other’s successes, and Excellence driven by its continual pursuit of improvement and quality.

Operating with Integrity Central is a stable and secure company, providing consistency in underwriting and pricing, along with a broad range of products and programs allowing agents to tailor coverages to meet their customers’ needs. The Central team consistently strives to exceed policyholder expectations by providing innovative, quality coverage and hospitality-focused service.

Building Relationships Central is a regional carrier that operates exclusively through the independent agency system, and has for over 140 years. The company chooses to work with a select group of agency partners which allows them the opportunity to build strong, long-lasting relationships. Central supports these relationships through franchise value, companysponsored programs, a long-standing history of involvement with the IIABA and Trusted Choice, and agency advisory councils which generate and encourage agency feedback to help them further develop products and technology which enhance agency value.

Committed to Excellence Central is dedicated to excellence and this commitment is reflected in its The Tennessee Insuror

Fulfilling the Promise Since 1876 combined assets totaling over $1.7 billion and its A.M. Best rating of "A" Excellent. The company has been recognized with multiple industry awards including the Best Practices Award of Excellence, IVANS Digital Insurer Gold Award, and the Pinnacle Award from Applied Systems. The company is dedicated to continuously improving the way they do business with their agents and policyholders. Investments in modernizing infrastructure, building out anti-fraud and claims specialization capabilities, incorporating use of data analytics, and delivering industryleading service enhance the value proposition of Central and its agency partners. Value-added, time-saving services like the myCentral website and myCentral Mobile app allow policyholders to self-service their account online with solutions such as reporting a claim, viewing their auto ID card or policy, and making payments. Central’s e-options allow customers to enroll in electronic delivery of policies and billing statements, and online payments. Central’s digital presence includes multiple social media channels and a blog for enhanced customer communication and service. Central’s culture is the driving force behind the company’s ability to fulfill the promises of security, protection and peace of mind. The company invests in the education and development of its employees so customers can rely on superior performance from a talented, experienced workforce. Central has over 620 employees nationwide who collectively hold over 975 designations. Nearly half of those employees have been with the company 10 years or longer. Employees are also dedicated to maintaining excellence in the communities in which they live and work through charitable giving. u

David Lee, CPCU Vice President & Regional Manager 1.800.935.6427 dlee@central-insurance. com David is the Regional Manager of Central’s Southeast Regional Office focused on strategic perpetuation of the underwriting, marketing and claims functions serving Central’s agency partners in the region. He joined Central in 2003 in the Claims department, and held positions in both Personal and Commercial Lines Underwriting before becoming Marketing Manager for North and East Georgia. He was promoted to Regional Marketing Manager for the Southeast Region in 2016 and to Assistant Vice President in June 2019 before being promoted to Vice President in November 2019. David is a graduate of the University of Georgia with a degree in Business Management. Matt Sbordone, CPCU TN Marketing Manager 1.800.767.9440 msbordone@ central-insurance.com Matt is Central’s Marketing Manager for the state of Tennessee. He started his career with Central in 2014 in Commercial Underwriting and was a Senior Commercial Lines Underwriter before taking on the role of Marketing Manager. Matt is a graduate of Quinnipiac University in Hamden, Connecticut and prior to his career at Central, had over six years of commercial underwriting experience in the industry.

TOGETHER WORKING â&#x20AC;&#x153;Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.â&#x20AC;? The Allison Insurance Group - Jackson Bagley & Bagley Insurance - Fayetteville Boyle Insurance Agency, Inc. - Memphis Burke, Powers & Harty - Bristol Carnal-Roberts Agency, Inc. - Lexington Cate-Russell Insurance, Inc. - Maryville Frank E. Neal & Company, Inc. - Nashville Goss Insurance - Hixson Higgins Insurance - Clarksville/Hopkinsville, KY Inter-Agency Insurance Services - Knoxville 38

Martin & Zerfoss, Inc. - Nashville McInturff, Milligan & Brooks - Greeneville Miller | Loughry | Beach Insurance Services - Murfreesboro Ownby Insurance Service, Inc. - Sevierville Powell & Meadows Insurance Agency - Carthage 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

Program Spotlight Swiss Re Lawyers Professional Liability Swiss Re Corporate Solutions is the exclusively endorsed Lawyers Professional Liability carrier for Insurors members. After receiving feedback from members over the last two years, we worked with Swiss Re to develop a new platform model for the program. We are excited to advise that as of June 1, 2020, Swiss Re Corporate Solutions is moving to an administrator business model for all 1-19 attorney law firms Tennessee and will partner with Lockton Affinity, the MGA/ Association unit for Lockton (this is not the retail insurance agency and does not share information). This relationship will have numerous benefits for your lawyer clients including: • •

Quick turn around on submissions due to Lockton Affinity's in-house underwriting and policy issuance capabilities A new and enhanced policy form in Tennessee with some of the most comprehensive coverage available, including Solo Practitioner Assistance Coverage and a $125,000 Supplemental Coverage Aggregate for numerous ancillary coverages including Disciplinary, Subpoena, Crisis Event and Loss of Earnings

The Tennessee Insuror

• •

An A+ rated carrier with over 45 years of stability in the Lawyers Professional Liability market A dedicated lawyers professional liability claims team who average over 20 years of industry experience

Highlights of the new program administration through Lockton Affinity include: • • • •

A focus on small premium, high volume, transactional business Experience with over 500+ agent partners across the country in an MGA capacity, providing them access to multiple programs Access to in-house underwriting, marketing and policy issuance capability to serve agent partners Insurors member agents will now have access to several exclusive Lockton programs

For further information, please reach out to Jeff Severino of Lockton Affinity at JSeverino@locktonaffinity.com or call 913.652.7520. u

Independence

Business Development

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Marketing

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works better Operations

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together.

Producer Recruitment

Niche Programs

Field Operations

Commercial Markets

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Meet the management team of Keystone. They’re backed by a team of 200 professionals and a wealth of resources ready to help you strategically increase the value of your agency. Independently, you’re strong. Together, we’re better.

Contact Michele Bicknell: 570.473.2148 | mbicknell@keystoneinsgrp.com keystoneinsgrp.com 40

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Company Briefs Penn National Ins. Donates $50K to Relief

Hurless Elected to Central Board

Penn National Insurance has announced donations of $50,000 to the United Way of the Capital Region (Harrisburg, Pa., area) COVID-19 Relief fund, and allocated additional contribution funds to management of the company’s field offices, including the Second Harvest Food Bank of Nashville.

The Central Insurance Companies has announced the election of Cindy M. Hurless to its Board of Directors. As Central’s chief operating officer (COO), Hurless is responsible for oversight of the company’s Services, Claims, Underwriting, and Loss Control operations. She earned her BA in Communications and Business Administration from Hope College.

In addition, the company also donated more than 19,000 face masks to Geisinger Holy Spirit Healthcare (Harrisburg, Pennsylvania-area) to support and recognize the tireless work of all healthcare professionals.

Liberty Mutual Announces Perez as CUO Liberty Mutual Insurance Company has announced that David Perez has been named as the new chief underwriting officer (CUO) for the company's Global Risk Solutions division. The division serves as the company's global commercial and specialty lines insurer and reinsurer. Perez will continue to be based in Boston and report to GRS President Dennis Langwell. He replaces James Slaughter, who has decided to leave the company effective June 30.

She joined Central in 2002 as Manager of the Mail/Supply and Commercial Lines Services departments and was promoted to Vice President of Customer Services in 2004. In 2018, she was promoted to her current position as COO.

Travelers Pledges $5M to COVID Relief The Travelers Companies, Inc. recently announced a $5 million commitment to assist families and communities impacted by the COVID-19 pandemic in North America, the United Kingdom and the Republic of Ireland. This includes support for the most financially vulnerable in the communities

We help churches navigate an uncertain world. For more than 90 years, Southern Mutual Church Insurance Company has worked with churches across the Southeast to help them meet their insurance needs. Our work is built upon long-term relationships with our church policyholders, and that starts with strong relationships with our independent agents. If you are interested in partnering with us to serve churches in your area, please call 1-800-922-5332 to learn more.

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Preferred Property Program can help you procure Umbrella coverage for your insureds with an AXV A.M. Best rated carrier for the following types of risks: Developer Sponsored Boards Master Associations High-rise Associations & Apartments to 35 stories are eligible and more Limit options ranging from $5 million to $50 million Coverage can include excess D&O ● General Liability ● Auto ● Employee Benefits Employers Liability, Including Employment Practices Liability* (*if covered under the D&O) Follow Form EPLI is available only up to $25 Million limit

In 2016 we partnered with American Union Risk Underwriters (AURA) located in Florida. With our new partner we can now also offer our comprehensive Umbrella, with unsurpassed service and for the following types of risks: Hotels ● Motels ● Timeshares ● Lessor’s Risk Enclosed Malls Shopping Centers Retail ● Office Buildings ● Warehouses ● Light Industrial Apartments Limit options ranging from $5 million to $100 million For information on our AURA program, contact our experienced underwriter Tom Clementi at 877-506-1430 or visit our website, www.aurains.com A subsidiary of

101 Crawfords Corner Road, Suite 1300 Holmdel, NJ 07733

For more information contact our team of Underwriters

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where Travelers operates. As part of this pledge, Travelers will donate $3.5 million to leading charities that provide essential services to address urgent, unmet needs, including emergency assistance for hourly workers, food and shelter for vulnerable populations, stability to small businesses and resources to mitigate disruptions in education. Among these initiatives, Travelers has repurposed its kitchen facilities in Hartford, Connecticut, to assist nonprofits in the preparation and delivery of meals.

Key Risk Elevates Standen and Holbrook Key Risk, a Berkley Company, has announced that Scott A. Holbrook, CPCU has been named as the company's new president. He succeeds Robert W. Standen, ARM, AIC ALCM, who will now serve as executive vice president with oversight responsibility for certain of the Company’s operating units. Standen joined Key Risk Insurance in 2003 as executive vice president and chief claims officer and assumed the role of president in 2007. He has been instrumental in advancing the operating unit’s leadership position and expansion in the mono-line workers’ compensation segment. Standen earned his Masters of Business Administration degree from St. Joseph's University and graduated with a Bachelor of Science degree from LaSalle University. Holbrook has 25 years of experience in the commercial lines property casualty insurance business. He most recently served as the senior vice president for the Mid-Atlantic division of a leading global insurer. Mr. Holbrook holds a Bachelor of Science degree in finance and marketing from the Virginia Commonwealth University School of Business.

Delta Dental of TN Establishes $3.3M Grant Delta Dental of Tennessee has announced a commitment of more than $3.3 million for Operation #SmilesMatter, a grant program to help Tennessee dentists acquire much-needed supplies, equipment and technology as they prepare to reopen their dental practices. Delta Dental will give a $1,000 credit to all dentists in the state, regardless of whether they participate in Delta Dental’s network, to purchase dental products.

Harford Mutual Commits $250,000 to Relief Harford Mutual Insurance recently announced it was doubling its annual charitable community support to $500,000 in the wake of the COVID-19 pandemic. The 178-year-old commercial property and casualty insurer already reaffirmed its scheduled 2020 give of more than $250,000 to their non-profit partners, independent of any decision they might need to make to The Tennessee Insuror

comply with pandemic-related restrictions. Harford Mutual committed an additional $250,000 to be directed to COVID-19 related relief agencies and organizations.

Central Elects Evan Purmont as President The Central Insurance Companies’ Board of Directors has elected Evan P. Purmort as President succeeding outgoing President F.W. “Bill” Purmort III effective May 13, 2020. Purmont III is retiring after 43 years with the company, but will remain Chairman of the Board of Directors. Evan Purmont is currently Central’s Chief Marketing Officer, and is responsible for regional operations, agency partner and industry relationships, and business development strategy. He began his career with Central Insurance immediately after graduating from Miami University and has held the positions of commercial underwriter, marketing manager, commercial underwriting supervisor, personal underwriting manager, and Vice President of the Northeast Regional Office. He has served on Central’s Board of Directors since 2017 and has recently joined the Trusted Choice Board of Directors. Bill Purmort began his career at Central in 1979 and held positions in underwriting, marketing, and management before becoming President and Chairman of the Board in 1994. Bill is a trustee for the Property & Liability Resource Bureau, a past board member for Trusted Choice and the Property Casualty Insurers Association of America.

Builders Mutual Pledges $1M to COVID Relief Builders Mutual announced today that it is making a financial contribution to support communities, industry partners, healthcare providers and employees affected by COVID-19. A pledge of $1 million dollars to support COVID-19 relief in the states that fall in its corporate footprint will be made to support both immediate and longer term needs. The insurance company is donating $250,000 to a variety of organizations that support feeding families, blood banks, healthcare workers and healthcare and vaccine research. The organizations cover the company's footprint, and include Second Harvest Food Bank of East Tennessee and United Way of Greater Nashville.

Acuity Promotes Scott to Manager Acuity has announced that Jodie Scott has been promoted to Manager–Services, Sales/Continuing Ed Support and Document Transcription Processing. She began her career at Acuity in 2007 as a Commercial Processor. She also spent a few years in Services Claims, and most recently she was a Sales Assistant. Scott earned her associate’s degree from Lakeshore Technical College. u 43

ISO’s New MicroBOP

...continued from page 12

product considers the “on the go" aspect and is typically a better fit for coverage over a traditional home business endorsement on a homeowners policy. 2. Preference for low-touch options: The Micro-Businessowners Program is designed to limit the number of questions required during the application, enhancing the buying experience for insureds. The customer simply picks the type of business and decides whether to purchase the tailored upgraded enhancements, both of which provide blanket additional insured status. Additionally, the insured may choose to select the optional errors and omissions coverage. 3. Simple to understand: Because some new micro-businessowners can find insurance provisions difficult to follow, ISO provides an explanatory policy summary for a policyholder's ease of reference to certain highlighted coverages and exclusions within the micro-businessowners' policy. 4. Wide breadth of micro-business models: The Micro-Businessowners Program addresses more than 80 classifications, with many more to follow. Examples include artisan makers, dog walkers, online retailers, coaches, stylists, yoga instructors, coffee roasters, graphic artists and DJs. The Micro-Businessowners Program helps agents working with new customers from the all-important incubation period onward, helping build a customer relationship for life – no matter where the business moves. For more information on Verisk's micro-business solution, visit https://www.verisk. com/insurance/products/small-commercial-micro-businessowners-program/

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

About the Authors Joseph Lam is director of commercial casualty product development and can be reached at Joseph.Lam@verisk.com Jessica Dias is a Lead II for ISO Commercial Lines products and can be reached at Jessica.Dias@verisk.com 1 - per U.S. Small Business Administration Office of Advocacy, “Frequently Asked Questions About Small Business," August 2018, https://www.sba. gov/sites/default/files/advocacy/Frequently-Asked-Questions-Small-Business-2018.pdf 2 - per Jana Kasperkevic, “Study: Most U.S. Entrepreneurs Start Their Business at Home," Inc., June 2013, https://www.inc.com/jana-kasperkevic/usentrepreneurs-keep-businesses-close-to-home.html 3 - per Ben Gran, “2018 U.S. Home-Based Business Statistics," incfile, April 2018, https://www.incfile.com/blog/post/2018-u-s-home-based-businessstatistics/ 4 - per Jonathon Shieber, “The Next Big Restaurant Chain May Not Own Any Kitchens," TechCrunch, October 2018, https://techcrunch.com/2018/10/07/ the-next-big-restaurant-chain-may-not-own-any-kitchens/ 5 - per Christina GoldSchmidt and Emily Smith, Insurance in the Age of the Gig Economy, Cake & Arrow white paper, December 2017, http:// go.cakeandarrow.com/insurance-in-the-age-of-the-gig-economy 6 - per Eric Price-Glynn, “Re: MicroBOP article for Visualize," e-mail on ISO MarketStance data, addressed to John Luciano et al., February 12, 2020.

They stand alone. RLI, A+ rated by A.M. Best, has over 30 years of experience providing affordable personal umbrella coverage - so your customers can protect their hard earned assets. CONTACT Stephen Holmes sholmes@insurors.org 615.515.2609 The Tennessee Insuror

INSURING OPPORTUNITY THROUGH MUTUAL SUCCESS. ® Harford Mutual Insurance partners with independent agents in Tennessee. We insure restaurants, contractors, mercantile, and other commercial entities. We’re committed to protecting your client’s business and building yours.

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What You Do and Don't Do when A COVID-19 E&O Lawsuit Arrives

written by Chris Boggs, Big "I" Executive Director of Risk Management and Education

COVID-19 has changed the agent’s errors and omissions (E&O) landscape for the next several months. While we can’t predict the number of agents who may have E&O claims at this point, the odds are high that if you don’t get sued, an agent you know will.

representative, defense attorney or any other member of the office directly involved in the claim. The only individuals who need to be involved in any discussion related to any E&O claim are those personnel directly related to the care of the plaintiff's account and those defending the agency.

Proper actions and reactions when threatened or served with an E&O suit arising out of this pandemic are of utmost importance. Once a threat is made or a suit filed, the allegedly improper act or omission has already occurred - don't worsen the situation by making bad decisions. Remember these “dos” and “don’ts” if you find yourself in an E&O situation.

Do not make any admission of liability or wrongdoing; and do not offer or make payment.

Let’s start with the first MAJOR don't: Do not overreact to the claim. Understand that there is no shame in being accused of an error or omission, especially given the weird aspects of this COVID-19 situation. Even the best practices and procedures may not protect the agency right now. Anger, either toward yourself or others, is counterproductive and serves only to increase the weight of the situation.

Do not allow inspection, copying or removal of client files and records without consulting with your E&O claim representative.

Do Not Do These Things Do not, under any circumstances, alter the client's file. What’s done is done. Making changes creates the appearance that there is something to hide. Accept what is there and prepare for what comes next. Do not discuss the claim with anyone other than the claims

Do not provide any written or recorded statement to the plaintiff without your E&O carrier's claim representative present.

Do not try to manage the claim on your own. The E&O carrier has more experience and is better able to manage the process. Allow those with more experience and resources to manage the suit.

What You Should Do What should your immediate and ongoing "do's" be following an E&O claim? Notify the E&O carrier of a "claim" or potential claim immediately. Provisions in the E&O policy require the insured to

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notify the insurance carrier as soon as practicable following the receipt of a "claim" or any indication of a potential claim. Listen for “trigger” words or questions. Some words, phrases or questions just don’t seem normal, in fact, they sound like something a lawyer would say. If your client uses terms like “duty,” “breach” or “breach of duty,” assume they have been talking with a lawyer. Also pay attention to the questions that are asked, does it seem like they are trying to trap you into admitting something? Notify the carrier of a potential claim if words or phrases seem to indicate a lawyer is already involved.

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Assume every conversation is being recorded. Regardless of the legalities of recording a conversation, assume your answers are being recorded. Pick responses carefully. Gather and organize all pertinent records related to the insured and the situation. But when doing this, remember the second "don't" - don't alter them. The claim representative needs all the information to conduct an investigation and prepare and provide a proper defense. Write down all the information known about the incident surrounding the claim. Each member of the team directly related to the client and the incident giving rise to the E&O claim should record all they can remember about the incident or incidents on which the claim is based. This should be a factual narrative statement in chronological order. Leave out opinion and emotion. This is the time to act like you are talking with Joe Friday from Dragnet – just the facts. Who, what, when, where and why is all that should be contained in these accounts. Cooperate with the E&O carrier. This includes providing information and facts that look bad for the agency. Hiding or hedging certain aspects of the facts surrounding the situation on which the claim is based creates distrust between you and your insurer; it also makes the agency look guilty. The insurer is on your side. Make sure you comply with all policy conditions and requirements. If the agency fails to comply with all E&O policy conditions, coverage may be jeopardized.

Hopefully You Will Be Spared Hopefully you and your agency will not need this information. If not, that’s great. But given the uncertainty of this current situation, it’s better to be prepared. About the Author Christopher J. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, joined the insurance industry in 1990. He is the Executive Director of the Big "I" Virtual University. His current duties involve researching, writing, and teaching property and casualty insurance coverages and concepts to Big "I" members and others in the insurance industry. u 48

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Meetings Meetings Moving Online; Others Still Planned Agency Growth Conference Now Virtual 6/11 The 7th Annual Insurors Agency Growth Conference has been rescheduled as an online event for June 11. The event will feature sessions and speakers geared towards helping agents improve their sales, workflow and marketing. This year's conference will include the sessions: "Marketing to Your Niche," led by Zach Emly of InBuzz Group; "Building Out Your Agency's Sales Engine," led by Chris Turley of ProScout Business Development; "Data Driven Agencies," led by Carey Wallace of IntellAgents; "An Introduction to Writing Business in Captives," led by our captive experts panel; and, "The Art & Science of Prospecting Success," led by Frank Cox of Marshberry. Agents can attend for just $49 or have up to 5 from their agency attend for just $99. The sessions will also be available on demand to registrants beginning June 15. More info is available now at insurors.org.

ACT Offers Meeting Sessions Online The Big "I" Agents Council for Technology (ACT) Meeting Sessions are now available on-demand and free for members! Although the conference scheduled for Orlando was postponed, ACT is offering key sessions from the meeting in an online format. Sessions include, "Practice Successful Failure" by Steve Anderson; "Cybersecurity from Home," by Dustin Mooney; "Digital Marketing," by Becky Schnieder and more. View the sessions now at https://www.independentagent. com/Events/Pages/AgentsCouncilForTechnology/agenda.aspx

Could your agency weather a data security breach? A full 80 percent of businesses that experience one donâ&#x20AC;&#x2122;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.

Big "I" Leadership Conference 9/10-13 The Annual Big "I" Fall Leadership Conference is still tentatively scheduled for September 10-13 at the Kansas City Marriott Downtown, with more information to be announced soon.

New Date of Sept. 22 for NW TN Golf The Insurors of Northwest Tennessee local board has announced the postponement of their annual golf tournament, with a new date set of Tuesday, September 22. Please visit https://www.insurors.org/pdf/InsurorsNWTNFlyer0920.pdf or contact Matt Russell at mrussell@westan.net for more info. u The Tennessee Insuror

1. Privacy Rights Clearinghouse: Chronology of Data Breaches

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Member Tips Should Agencies Offer Business Reopening Advice? by Big "I" Virtual University Faculty Recently, the industry experts have received questions from agency members regarding providing of "advice" to clients on reopening after the Pandemic shutdowns. Here is one such question, as well as faculty responses: Q: Our agency has several clients that are nonprofit private swimming pool clubs. As businesses begin to reopen after the pandemic, these organizations are looking to us for how best to reopen safely and how their insurance will respond. We know that their insurance will not respond to a COVID-19-related lawsuit, but how can we help with waivers and standard procedures that will give them a level of comfort when they can reopen? Response 1: Do not give advice on how to reopen. That is not within your licensure and likely not within your expertise. Any guidance on how to reopen should be provided by health officials because there are too many nuances. Response 2: What is the basis for the conclusion that no liability insurance will respond to a COVID-19 complaint? Is there a virus exclusion on the commercial general liability policy? Aside from that, your customer should follow all protocols recommended by national, state and local authorities for reopening businesses. After all, negligence is measured by what a reasonable person would do in the same or similar situations, meaning the defense against a negligence claim for the use of the premises is whether the business acted reasonably under the circumstances. Response 3: Your role is to advise your client on things insurance-related, and it seems youâ&#x20AC;&#x2122;re prepared to do that. As far as reopening safely, you can certainly tell them they must comply with any relevant laws and regulations, but anything beyond that or more technical in nature should be guided by the local health department, perhaps with supplemental support from whatever trade association or organization serves swim clubs. Also, all advice and instruction given by the manufacturer and installer of the pool and its equipment must be reviewed and heeded. Response 4: You've already answered the coverage question. Unless you're a safety expert, the answer to the best practices question is â&#x20AC;&#x201C; talk to an expert. And you already know the answer to drafting legal documents: Unless you're a lawyer, refer them to a lawyer. u

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JUNE 11 • ONLINE • VISIT INSURORS.ORG FOR REGISTRATION AND MORE INFO

T H E N A T I O NA L A L L I A N C E I N F O M A P

Map your career track and customize your learning experience by selecting the designations and course offerings that fit your needs.

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T H E NA T I O NA L A LLI A NC E I NF O MA P

Map your career track and customize your learning experience by selecting the designations and course offerings that fit your needs.

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CRM

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The Introductory Series is a good choice for those interested in finding out more about the industry and industry fundamentals. The Dynamics Series, offers career-changing sales training. Providing a variety of pertinent topics, the William T. Hold Seminars are invaluable for expanding your insurance knowledge. The Dynamics Series can be used to meet update requirements across the designations. WTH Seminars satisfy update requirements for CISRs and CSRMs.

The Certified Insurance Service Representative (CISR) designation provides quality insurance education geared toward customer service representatives, account executives, servicing agents, new producers, and other professionals. The Certified School Risk Manager (CSRM) designation fills a need for quality risk management education for those associated with schools.

The Certified Insurance Counselor (CIC) provides an in-depth, practical approach to education for agents and other insurance practitioners. The Certified Risk Manager (CRM) designation is recognized as being the foremost education available in the field of risk management. The Certified Personal Risk Manager (CPRM) designation yields the best training for meeting the needs of an affluent clientele.

The James K. Ruble Seminars are advanced programs that offer a variety of specialty topics. CICs, CRMs, and CPRMs can meet their annual updates with a Ruble seminar.

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2 The Introductory Series is a good choice for those interested in finding out more about the industry and industry fundamentals. The Dynamics Series, offers career-changing sales training. Providing a variety of pertinent topics, the William T. Hold Seminars are invaluable for expanding your insurance knowledge. The Dynamics Series can be used to meet update requirements across the designations. WTH Seminars satisfy update requirements for CISRs and CSRMs.

CPRM

3 The Certified Insurance Counselor (CIC) provides an in-depth, practical approach to education for agents and other insurance practitioners. The Certified Risk Manager (CRM) designation is recognized as being the foremost education available in the field of risk management. The Certified Personal Risk Manager (CPRM) designation yields the best training for meeting the needs of an affluent clientele.

The James K. Ruble Seminars are advanced programs that offer a variety of specialty topics. CICs, CRMs, and CPRMs can meet their annual updates with a Ruble seminar.

VISIT SCIC.COM FOR MORE INFORMATION OR INSURORS.ORG TO REGISTER FOR CLASSES NOW

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The Tennessee Insuror May/Jun 2020

Articles inside

Company Spotlight

5 Ways to Help Comm. Clients Navigate a Hardening Market

From Your IIABA National Director

From Your President

Layman's Terms

6 What You Do/Don't Do When a COVID-19 E&O Suit Arrives

Education Calendar