The Tennessee Insuror Nov/Dec 2013

THE TENNESSEE

INSUROR November/December 2013

Vol. 24 No. 6

www.insurors.org

8 12 14

Taking the Stage

New Insurors President Lou Moran III Begins His Term

120th Annual Convention Recap Conferees Honored at Ceremony

Trends Impacting Liability Risk for the Affluent

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there when it matters most

The Tennessee Insuror

contents

THE TENNESSEE

INSUROR Vol. XXIV, Number 6 November/December 2013

features

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

4 Taking the Stage INSURORS OFFICERS

President .................................................................. Eddie Miller, III Immediate Past President ............................... Roger Smith, CIC State National Director .................................................. Brad Smith Vice President, Region II ...... Christie Reeves, CIC, CPCU, CPIW Vice President, Region I ................................. Cindi Gresham, CIC Vice President, Region III and Pres. Elect .... Lou Moran, III, CIC Treasurer ....................................................................... Joe Hunt, Jr. Secretary ................................................................ Chris Allison, CIC Director, Region I .............................. Sharon Simmons, CIC, CISR Director, Region I ...................................................... Edward Kaiser Director, Region I ........................................................... Paul Carson Director, Region II ................................................. Battle Bagley, III Director, Region II ............................................. George Anderson Director, Region II ................................................... Joe Lester, CIC Director, Region III ..................................................... Kevin Ownby Director, Region III ............................................ Josh Gibbons, AAI Director, Region III ............................................. Mike Langley, CIC Young Agents Chairperson ..................................... Taylor Porch

ADVERTISING

Display advertising rates, deadlines and specifications may be obtained by writing to Insurors of Tennessee, 2500 21st Avenue South, Suite 200, Nashville, TN 37212, calling 615.515.2601, e-mailing dsmith@insurors.org or online at www.insurors.org The Tennessee Insuror is provided to all Insurors of Tennessee members and associate members as a member service.

New Insurors President Lou Moran Begins His Term

8

120th Annual Convention Recap

10

Should Borrowers Prepay Their Mortgages?

12

Conferees Honored at Ceremony

14

Trends Impacting Liability Risk for the Affluent

departments 21

From Your President

23

From Your State National Director

25

From Your CEO

29

Education Calendar

31

Government and Legal Affairs

37

Product Spotlight

39

Event Spotlight

41

Company Briefs

51

Meetings

53

Member Tips

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

A Great Crowd Joined Us in Tunica for the 2013 Edition of our Annual Event

The Best 2013 Ever

The Big “I” Has Your Back

Who Really is a “Member?”

E&O Risk Assessment Program Heartland Ovation Payroll

Big “I” Announces New UPS Program for Shipping 3

Taking the Stage

New Insurors President Lou Moran III Begins His Term

From a young age, Lou Moran III, probably knew that his life would involve service to others.

After playing football for Coach Bowden Wyatt at UT, his father, Lou Moran II, served the community as a teacher and football coach in Roane County. His mother, Patti, was the first Executive of the Girls Club of Knoxville. Their family always got involved, and always helped out when they could. Now as he prepares to serve as President of the Insurors Board of Directors, he probably has some of that family history to thank for it.

The Family Begins its Insurance Legacy Lou III is a Knoxville native, residing in West Knoxville for most of his life. At a young age, the family did move to Mississippi for a short time while his father was in Jackson working for Liberty Mutual. Lou II had taken the job with Liberty Mutual after deciding that teaching and coaching football wasn’t going to be enough to support his family. He called the UT career office and told them he was looking for a new career, and 4

just about anything but insurance was worth looking at. The career office scheduled him an interview with a company selling industrial materials, but a snowstorm delayed the interviewer and he missed their meeting. While Lou II was waiting on him, he ended up talking to a recruiter from Liberty Mutual who was waiting on his interviewee. He liked what he heard and ended up taking the job. He began his insurance career with Liberty Mutual in Knoxville, but was soon transferred to Mississippi. After several years there, the Moran family was looking to return to East Tennessee. That’s when Lou II was contacted by Jake and C.H. Butcher, who were starting their own agency in Knoxville. Lou II looked forward to pursuing the agency side of insurance, so he got on board, and moved the family back to Knoxville to help run the new agency.

Back Home in East Tennessee With the family back home, Lou III was enrolled at The Webb School of Knoxville. After graduating from Webb, he worked a summer job as an ambassador at the 1982 World’s Fair, where his main responsibility was as a ground host for the The Tennessee Insuror

Sunsphere (He can still rattle off statistics like the structure is 266 feet tall and that the glass panels are layered in 24k gold dust). In the Fall of 1982, he was accepted at the University of Tennessee at Knoxville.

worthwhile! I was humbled to have been recognized for work that I simply enjoyed.”

In 1987 Lou began his career in insurance by attending insurance schools such as Safeco’s Personal and Commercial Lines Program, Continental’s Commercial Lines Training Program and the Drake University Summer Intensive Insurance Program. After completing these schools, he became a Rater Tech in the agency and part-time janitor. Lou II became sole owner of the agency in 1986, and he and fellow producer Frank Maples, who Lou II had worked with since the mid-1960’s, didn’t take it easy on Lou III. “They made me start at the ground floor,” Lou recalls. “If something needed to be done in the agency they expected me to learn how to do it.”

In 1991, things were starting to go well for Lou III. He was getting more involved in the business and starting to find his way. That was also the year he began dating his future bride, Mimi. Although the two had known each other in high school at Webb and at UT, they had never dated. Mimi changed that when she moved back to Knoxville and “invited herself” on a date with Lou III, if you believe his story. “She said I had always been too scared to ask her out, so she took matters into her own hands.”

Things Change for the Better

Lou and Mimi have enjoyed almost 20 years of marriage Lou II and Lou III work on some business at the agency

Slowly but surely, Lou III worked his way up the food chain, filling out applications, writing personal lines policies, small commercial policies and then finally bringing in some bigger business accounts and building a sizeable book. His father also sent him to Nashville to learn from Insurors Education and Young Agents programs, led at that time by Chuck Bidek.

“Other than my Dad, Chuck has probably had the most influence on me of anyone in this industry,” Lou professes, “He licensed me and even gave me a Young Agent award. After the award ceremony, Dad told Chuck that he had wondered what I had been doing in Nashville, and was glad to see that it was

Lou and his fellow Polish ancestor Chuck Bidek

The Tennessee Insuror

Their first date was not exactly everyone’s idea of romantic: they attended the UT/Alabama game in Birmingham in October of that year. Lou remembers that Mimi’s father didn’t seem all that impressed when he showed up at their house in an RV to pick her up for the date. Luckily, he gave in once the rest of the group got out of the RV and he realized they weren’t going to the game alone. They got married in 1994, and had their first child, daughter Emily, in September of 1996.

Their son, Lou IV followed in July of 1998.

Still Serving Others As Lou III’s involvement in the agency grew, so did his involvement in the Knoxville community. He began serving on the inaugural board of the Tennessee Stage Company, the Knoxville Area Chamber Parthership board and finance committee, the ChildHelp Tennessee board, the Arts Council of Knoxville board (chairing Riverfeast BBQ contest and ArtFest Celebration), the James White’s Fort board, the Webb School Alumni Leadership Council, Leadership Children’s Hospital, as well as boards and committees for his church, Cokesbury United Methodist Church.

He also got more involved in Insurors, named “Young Insuror of the Year” in 1994 and as “Insuror of the Year” in 2006. He served as Young Agent Chair in 1996, and then joined the Board as a Region III Director in 2002. He became VP of Region III in 2011, and which placed him in line to serve as President for 2014.

5

In addition to these organizations, Lou III and some of his friends took one of their favorite hobbies, sport shooting, and turned it into an annual fundraising event. Each year they now raise money for the Wounded Warrior Project by bringing antique and historic military firearms and other artillery for contributors to shoot. Some of the weapons available to shoot are World War II period weapons and are quite rare. During the event, they always take the opportunity to recognize some of the wounded soldiers from the local community.

The three Lous spending some time at the agency together

Lou participates in the shooting fundraiser

That community involvement has led to many client relationships over the years for Lou III, and his father built the business the same way. In fact, the agency’s first client John H. Daniels Custom Clothier, still has their business with him today. The renowned tailor has furnished clothing for royalty around the world, U.S. Presidents, famous athletes and more.

But despite their international success, the relationship they have built with their local agents at Inter-Agency Insurance Service is still one they hold dear.

The staff at Inter-Agency is one of the secrets to the agency’s success

What Does the Future Hold As Lou III takes office, his plans include expanding Insurors membership, strengthening the local board presence around the State and continuing the momentum of our Young Agents program. “I feel these things foster a great community for independent agents, and we must continue to support them for us to grow and be relevant in the future,” Lou explains.

The home of Inter-Agency Insurance Service, Inc.

What about his own future? He has plenty of good years left at the agency, and he would love to see more of the family involved down the road. Daughter Emily graduates from Webb School in May, and will be deciding on a college soon. Lou IV is fifteen and a sophomore at the Webb School. He is on the swim team and will play soccer and ultimate frisbee in the Spring.

But even if they don’t follow in his footsteps, Lou III is still proud of his career in insurance, although there are some days where he admits to dreaming of another career, “I always thought if I wasn’t in insurance, I could have made a pretty good cowboy.”

Lucky for us, he won’t be riding off into the sunset anytime soon, because he still feels that need to serve others. u 6

Lou discusses all things East Tennessee with David Williams

The Tennessee Insuror

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7

120th Annual Convention Recap A Great Crowd Joined Us in Tunica for The 2013 Edition of Our Annual Event Over 460 attendees were on hand at the Insurors 120th Annual Convention in Tunica, our largest event since 2000. The festivities for this year’s event kicked off on Friday, October 18th with a concert by Trace Adkins at the Bluesville Music Hall. On Saturday, some of our group headed down to Oxford for an Ole Miss tailgate in “The Grove,” hosted by Insurors Past President Richard Hollis, before a thrilling victory over LSU at Vaught-Hemingway Stadium.

clients for the ACA implementation from Staff One’s Donna Meek. Attendees also received information on buying insurance agencies from Arlington/Roe’s Rick Pitts. We then saw our exhibitors give out door prizes to dozens of lucky winners.

John Hatler and Cortney Gardner talk with Sarah Garman and Brenda McNeill in the Exhibit Hall Some of our group in downtown Oxford before the Ole Miss game

On Sunday afternoon, over 70 exhibitors were on hand to meet with agents and discuss new business possibilities in our trade show. Sunday night saw our opening celebration featuring entertainment from the ELEMENT of Cirque. With fire juggling, acrobatics, high flying aerials and defying acts

Richard Whitley, Richard Hollis, John McInturff and Paul Carson talk before the ELEMENT performance

of balance, the group kept our guests entertained through a lively evening of colors, sounds and lights.

Monday morning reconvened the exhibit hall, and our breakout sessions featured some great information on preparing 8

Monday afternoon included a host of optional activities. The golf tournament was again won by the team of Taylor Porch, Andy Porch, Joe Hunt and Jim Petty. The clay shooting saw Brandon Patterson claim his spot as the “Top Shot.” We also may have some new chefs on hand as the cooking class was a big success. Our Monday evening included Poker and Blackjack Tournaments, and our winners included Past President Walt Bradshaw, Samuel Bledsoe, Tom O’Connell and C.W. Bartlett.

Our Chef’s Demo attendees look on as the Harrah’s chef offers some cooking tips

Tuesday morning wrapped up our event with the Association Day Annual Meeting. We heard from Big “I” Executive Committee member Randy Lanoix, our 2014 Board of Directors was inducted into office, and some of our most prestigious The Tennessee Insuror

awards were presented. Presidential Citations were awarded to Fred Faulk of CNA Insurance, Tammy Goodman of Selective Flood Insurance, Bill Emerick of Berkley Southeast Insurance Group and Ebby Miller of Miller | Loughry | Beach Insurance in Murfreesboro.

Walt Bradshaw and Samuel Bledsoe congratulate each other after blackjack

Insurors President Eddie Miller presents the Young Agent of the Year Award to Taylor Porch

The Arch Northington Young Agent of the Year award went to our 2013 Young Agent Chairman Taylor Porch of PorchStribling-Webb Insurance in Waverly. The Jim Alexander Chairperson of the Year award was won by Joe Hunt of V.R. Williams/H.B. Cowan in Winchester/Shelbyville for his work as Association Treasurer. This was his second straight year winning the award.

President Miller congratulates Maurice Pinson on winning the Insuror of the Year Award

Chris Allison talks with Tim and Deborah Roberts

Joe Hunt giving tips on life to Brad McGee, Taylor Porch and Andy Porch

The event culminated in the awarding of the Insuror of the Year for 2013. This year’s winner was Past President Maurice Pinson of Fridrich, Pinson and Rothberg in Nashville for his longtime work in promoting and supporting the Association, the Nashville Local Board and the industry as a whole.

We wrapped our 2013 meeting with the popular door prize giveaways, and many winners left with new items, including Susan Jackson of Liberty Mutual, who took home a coveted company prize in the 2013 Lava Lamp.

We hope you will make plans now to join us for the 121st Annual Convention, taking place October 11-14, 2014 in Nashville at the new Omni hotel downtown. u The Tennessee Insuror

Our tournament golfers get in some socializing before teeing off

9

Should Borrowers Prepay Their Mortgages?

by David Coldiron, VP of Lending at Finworth Mortgage an INSBANK Co.

Mortgage prepayment can occur in many forms including, but not limited to, the following: An extra payment once per year, extra money toward principle each month, a lump sum payment, etc. Borrowers should consider alternatives for cash when considering accelerating payment of their principle balance as well as whether or not their lender penalizes prepayment.

One of the more popular methods of mortgage prepayment is to pay extra each month, which can save a borrower thousands of dollars over the life of the loan. This is the option that I will discuss in this exercise.

For example, a borrower with a $200,000 loan at a rate of 4.0% will pay approximately $143,000 in interest over the life of the loan if there are no prepayments made during the life of the loan. The same borrower could save almost $23,000 in interest and knock around 4 ½ years off the loan by simply paying $100 extra toward principle each month. See the chart below for an outline of this scenario: Loan Scenario No Extra Payments

With Extra Payments

$954.83

$1,054.83

Monthly Payment

Monthly Payment

30 years

25 years 7 months

Pay-off time

Pay-off time

$143,739.01

$120,815.21

Interest Paid

Interest Paid

Advantages of Additional Payments 4 years 5 months

$22,923.80

Time Saved

Total Interest Savings

Prepayment of a mortgage should be viewed as an investment that yields a return related to the cost (rate) of the mortgage. The above-mentioned example yields the borrower a 4% return. Current Certificate of Deposit rates can range from ½% to 1 ½% or so, depending on the bank and the term. It is clear that accelerating the reduction in mortgage balance is preferable in this scenario since the mortgage rate is higher than the investment rate. However, a better approach for some may be to find an alternative investment if one believes that they can get a better return in something such as equities. If this is the case, the borrower may decide to make the 10

minimum payment on her mortgage and place the additional funds that would have been allocated for the additional principle reduction into a mutual fund or retirement account.

There are few mortgage loans today that have a prepayment penalty, so that will likely not be an issue with which to contend. In the unlikely case that prepayment is penalized, one must weigh the expenses involved versus the potential interest savings. To do this, simply calculate the interest savings over the course of a given amount of time (probably two or three years or less for time-value-of-money purposes) and compare to the prepayment fee. The loan should be prepaid if the amount of interest savings exceeds the penalty.

The decision of whether to accelerate principle reduction via additional payments toward principle or to apply those funds toward a different investment can be a difficult one. It is often driven as much by personality or mindset as much as it is by math. Please visit our website, www.finworth.com, and click on the additional payment calculator to see how much savings accelerated principle reduction can provide you.

Let Finworth Help You With Your Mortgage Needs Over the years, the mortgage process has become unnecessarily opaque and complex. A lender goes through the process many times each week but a consumer may go through the process once every few years. We believe part of our job is to demystify the process, to explain the steps and the parties involved, and help our clients understand precisely what it being proposed.

Please contact Finworth Mortgage, an INSBANK Company, for any of your residential purchase or refinancing needs. As the preferred mortgage lender for the Insurors of Tennessee (and founded largely by Insurors members), Finworth offers a $500 discount off closing costs for all Insurors members and their employees. They also offer refinance and ARM conversions, jumbo loans, construction loans and many other lending options.

About the Author David Coldiron serves as the Vice President of Lending for Finworth Mortgage, an INSBANK company.

He is a Western Kentucky University graduate who, after five years in the mortgage business, moved from Bowling Green to Nashville to accept a position with Finworth. He has over ten years of lending experience. u The Tennessee Insuror

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Conferees Honored at Ceremony Luncheon Also Celebrated 35 Years of CIC in Tennessee

Over 50 individuals completed the requirements to earn their CIC, CRM, CSRM, CISR or UACIC designations in 2013. We congratulate all the recipients on their achievements. The conferees were honored at a luncheon on November 12th at Richland Country Club in Nashville. Also honored were 2013 National Alliance Outstanding CSR of the Year Beth Mittlesteadt of BB&T - Legge Insurance in Cookeville as well as Bruce Robins of Robins Insurance in Nashville for his CIC anniversary. The ceremony also marked he 35th anniversary of CIC in Tennessee.

David Fish, CIC BFS Insurance Group - Clarksville Jennifer Lynn Griffey-Mantlo, CIC Elite Insurance - Franklin

Certified Insurance Counselors Joseph M. Bennett, CIC, CLCS BB&T Legge Insurance - Cookeville Shannon Gregory Boshers, CIC, CISR Willis of Tennessee - Nashville Alberico J. Bryant, CIC, CRM Lipscomb & Pitts Insurance - Memphis Bill Emerick, CIC, CPCU, ARM Berkley Southeast Insurance Group - Nashville 12

Beth Mittlesteadt receives her award from Dr. Bill Hold

Stephen Holmes, CIC, CISR Insurors of Tennessee - Nashville The Tennessee Insuror

Celia Jackson, CIC Joe Morten & Son - Knoxville Kimberly G. Long, CIC Frost Specialty, Inc. - Nashville Connie F. Nichols, CIC, ARM Central Parking System - Nashville

Martin & Zerfoss - Nashville Kelly Riley-Swallows, CIC Swallows Insurance Agencies - Cookeville Hunter Trimble, CIC Lester, Greene & McCord Insurance - Tullahoma

April M. Osborne, CIC, CISR Arthur J. Gallagher Insurance Services - Brentwood Jessica Parrott, CIC, CISR Rains Agency, Inc. - Cookeville David Pemberton, CIC Marsh - Nashville Lisa M. Pickard, CIC, CISR Webb Pickard Insurance & Investment Services - La Vergne Valerie Jean Privett, CIC, LUTCF Privett Insurance Group - Knoville James Larry Shepherd, CIC Harleysville Insurance - Nashville Paul Rye Steele, CIC, CRM

EXPERTISE YOU CAN LEVERAGE. , IT S THAT SIMPLE.

Dr. Hold talks with new CISR conferee Renae Adelsbarger and her coworkers from The Allison Insurance Group

Certified Risk Managers Alden DeFeo, CRM, CISR The Crichton Group - Nashville

continued on page 48...

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13

Trends Impacting Liability Risk for the Affluent

Written by Peter Piotrowski, Senior Vice President of Claims for AIG Private Client Group

The personal liability risks faced by high net worth individuals and families are growing more and more complex. Unfortunately, most wealthy U.S. consumers do not carry adequate coverage limits to protect their hard-earned assets. For starters, only a select group of providers sell personal excess liability policies with limits in excess of $5 million. When you compound that with the fact that a large percentage of people buy insurance without the guidance of an independent agent or broker-the ones with access to more sophisticated insurance programs-the deficiency is not surprising.

Staying abreast of evolving exposures can enable you to raise issues proactively with your clients and prospects, and strengthen your relationship as someone they can trust. Following are some of the most prevalent areas of liability exposure. They undoubtedly impact the population as a whole, but the knowledge (and coverage) gap in the high net worth sector elevates the risk to another level.

your clients to consider candidate sourcing, writing formal job descriptions, beefing up the interview process, conducting background checks, verifying work authorization and seeking assistance with new hire forms.

Risk on the Road First, the good news: Auto accident death rates are down.

According to the National Highway Traffic Safety Administration’s latest available study published in April 2013, an estimated 32367 people died in U.S. traffic accidents. This number is the lowest since 1949 and represents a 25 percent decrease from 2005.

The decline is welcome news and may be caused by a number of factors: •

Private Staff, Public Lawsuits Many high net worth individuals employ domestic staff.

Personal assistants, nannies, butlers, valets, chauffeurs, gardeners and housekeepers frequently assist in running and maintaining the household or property. Just as we saw in the corporate sector, the economic downturn in recent years caused many to reduce their workforce. As a result, a number of lawsuits were filed by former domestic employees claiming wrongful termination and/or some form of discrimination.

In the business world, a human resources department can maintain records including, job descriptions, performance reviews, etc. These same records are seldom maintained for domestic staff. Failing to manage domestic staff with the same structure and discipline as a commercial business can put your high net worth clients’ personal wealth at risk. Defending a lawsuit without adequate documentation and support becomes extremely difficult and potentially costly. Workers’ compensation insurance is another consideration. In fact, 23 states now require workers’ compensation coverage for domestic staff, to protect against on-the-job injuries.

Domestic staff have access to properties, assets and families on a day-to-day basis, and it is critical to ensure that these individuals are reliable and trustworthy. Some risks can be avoided entirely if more up-front attention is paid. Advise 14

• •

Newer cars on the road have more sophisticated safety features ranging from anti-lock breaks, improved air bags, headliner air curtains, improved seat belts and warning devices like back-up sensors and crash sensors.

Seat belt usage is also up, likely due to stricter seat belt usage and child car-seat laws.

More roads are now featuring rumble strips and cable median barriers.

However, while auto related fatality rates are down, non-fatal automobile injury claims continue to rise.* The mean jury award for vehicular liability increased by 54% from 2002 to 2008. Medical costs and treatment continue to escalate as well. In 2010, juries across the country returned several multimillion dollar verdicts in automobile related lawsuits. Drunk drivers beware: jury verdicts against intoxicated drivers were particularly punishing and included $16.6 million in Palm Beach County, FL; $33.2 million in Lake County, IL; and an incredible verdict of $330,516,486 in Hernando County, FL. Your clients need to look beyond their own actions, too. Studies indicate that more and more uninsured drivers are on the road. The Insurance Research Council reports that as many as 13 percent of drivers, or one in every seven, on the road is uninsured. That number may have climbed to over 16 percent in 2010. An Ohio Insurance Institute study found a direct relationship between unemployment rates and uninsured drivers; for every one percent rise in unemployment, there was a three-quarter percent rise in uninsured drivers.

The Tennessee Insuror

The Tennessee Insuror

15

The Downside of Social Media It started with blogging. Now, Facebook, Twitter, LinkedIn and other social media sites are a regular part of our everyday interactions. One’s opinions can be shared instantaneously with a worldwide audience, and this ease tends to belie the risk.

Social media content has been used as evidence in a number of widely publicized lawsuits, and bloggers have been sued for libel and defamation of character as a result of the content of their messages. In March 2011, Billboard reported that musician Courtney Love settled a lawsuit filed by her fashion designer who alleged that the singer defamed her in a series of Tweets. The reported settlement value? $430,000.

Liability risk is not limited to the one who does the typing. Parents also can be sued for the actions of their minor children.

Lawsuits are being filed with allegations against the parents for negligent supervision of their children. These lawsuits can be costly to defend and often include subpoenas of all personal e-mail and computer records. A New Jersey lawsuit was filed naming not only the driver but also his teenage girlfriend. She was accused of contributing toward an accident by merely sending a text to her boyfriend (knowing he was driving at the time).

Final Thoughts It is more important than ever for the high net worth to

fully understand their liability risk. In addition to the trends described above, their overall lifestyle creates unique exposures: • • •

Owning exotic cars, powerful boats, homes with pools, firearms or other items that pose inherent danger Sitting on not-for-profit boards, where underlying liability coverage may be minimal Entertaining at home, increasing the chance of injuries on the property

A broad array of coverage and services are designed specifically for this population. By introducing your clients with substantial wealth to more suitable insurance solutions, everyone wins. * According to Verdict Research-Current Award Trends in Personal Injury, 49th Edition, 2010.

About the Author Peter Piotrowski is Senior Vice President, Claims for AIG Private Client Group. He is a graduate of Montclair State University. This article initially appeared in the November 19th edition of the Big “I” Markets e-mail newsletter. You can access AIG affluent for your clients along with three other carriers at www.bigimarkets. com. u

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Union Standard Insurance Group®

League of Heavy Hitters

Union Standard is committed to working with young independent agents because they are the future of our business. That’s why we are partnering for success with Tennessee’s Young Agents. Union Standard recognizes the need to foster the growth of new talent to perpetuate the Independent Agency System as well as provide young agents a competitive advantage.

Union Standard and the League of Heavy Hitters, Now that’s a Winning Team!

POW, BAM...WOW!

Congratulations 2013 League of Heavy Hitters Aaron Jensen

Shafer Insurance Agency, Inc.

Knoxville

Adam Reeves

Union City Insurance Agency

Union City

Ben Lawson

Shafer Insurance Agency, Inc.

Knoxville

Brandon Patterson

Ownby Insurance Services, Inc

Sevierville

Chad Snider

Westan Insurance Group

Martin

David Evans

The Insurance Group, Inc.

Knoxville

Emory Martin

King & Associates, LLC

Brentwood

Garrett Flannery

Carroll Insurance Agency

McKenzie

Gary Sanders

Brown & Brown, Inc

Nashville

Greg McDonald

The Swallows-Newman Agency, Inc.

Cookeville

Hank Coppedge

Miller Loughry Beach Ins. Svc.,Inc.

Murfreesboro

Jamie Williams

Hardin County Bank Ins. Agcy., Inc.

Savannah

Jared Smith

TIS Insurance Services, Inc

Knoxville

John Fritts

TIS Insurance Services, Inc

Knoxville

Josh Hearl

TIS Insurance Services, Inc

Knoxville

Josh Witt

The Insurance Group, Inc.

Knoxville

Kevin Ownby

Ownby Insurance Services, Inc.

Sevierville

Lee Conrad

Higgins Insurance, Inc.

Clarksville

Matt Spellings

Consolidated Insurance Services

Paris

Melissa Wilder

Insurance, Inc.

Nashville

Mike Thomas

Insurance, Inc.

Nashville

Robert Harris

Tigrett & Pennington, Inc.

Nashville

Stuart Oakes

TIS Insurance Services, Inc

Knoxville

Tyler King

King & Associates, LLC.

Brentwood

Will Dodson

Arthur J Gallagher Risk Mgmt Svc., Inc. Nashville

Commercial Insurance >> Done The Right Way >> By a Company of People >> Who Care

5301 Virginia Way, Suite 250 . Brentwood, TN 37027 . www.usic.com 18

A Berkley Company The Tennessee Insuror

Young Agent Spotlight

presented by

Brandon Patterson • Ownby Insurance Service - Sevierville Brandon Patterson

Brandon Patterson is a Dandridge native who moved to Sevierville at age 13. He and his wife Raven are newlyweds who just got married in September. Brandon is an avid skeet shooter and musician, and plays guitar, piano, bass, drums and a little pedal steel guitar.

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

Brandon: I am a commercial and personal lines producer and I also handle our website, social media marketing and advertising. I am also known as the office tech “guru.”

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

Brandon: I graduated with honors from Sevier County High School in 2002 and studied at Walter’s State Community College.

The Insuror: How and why did you get started in insurance?

Brandon: I had been working full time as the firearms manager for Bass Pro Shops Sevierville for about 5 years when I joined the agency. I was approached by my stepfather, Phil Ownby, while turkey hunting one morning about filling a position at the agency. I had always hoped that one day I could work in the agency when the time was right but was just waiting for my opportunity. I was hired as a CSR in June of 2008 and have worked my way up to being a producer.

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

Brandon: There are so many people that I look up to in the industry, but first and foremost is my step-dad Phil Ownby. I have been given many opportunities to meet with and talk to the best in the business, but he is still number one in my book.

My uncle Mike Ownby and my cousin Kevin Ownby have also been a huge help and influence in my development. There The Tennessee Insuror

are also many company people that have helped me so much but that list would be never ending.

The Insuror: Are you pursuing any designations, and if so, has the pursuit proven valuable?

Brandon: I have been working on my CISR designation and plan to finish that up in the coming year. I think continuing education is essential to our careers as risk managers.

The Insuror: What do you think the future holds for young agents in our industry?

Brandon: Young agents are one of the most important pieces of the independent agency system. We are the future and we must have the vision and the drive to do whatever it takes to swing more share of the marketplace to the independent agency channel. We are sitting on the opportunity of a lifetime right now to take a real shot at the captive carriers. All it takes is having the motivation to get out there and pursue new business through all means at your disposal. We cannot be afraid to take some chances and shake things up.

The Insuror: What tips and/or advice would you have to offer for other young insurance professionals?

Brandon: My top 5 tips for being a successful young agent are: 1. Have a GREAT website that is functional, up-to-date and user friendly.

2. Have a social media presence on Facebook, Twitter & LinkedIn and use them regularly and responsibly.

3. Make those calls and send those letters even if you don’t think you will write an account. If you don’t ask for their business, you have a 100% chance of not getting it.

4. Find a niche; be the expert for a certain type of business and make sure you market yourself as such.

5. Get involved in the Young Agents program and the Insurors of Tennessee. Go to the conventions, go to the Young Agents seminars, and get to know our industry leaders.

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

Brandon: I want to thank Insurors and Berkley Southeast for including me in this series and the Young Agents program in general. I hope more and more Young Agents get involved. u 19

Have u heard the latest about ACUITY ?

YES! Every1 is talking about them : )

See what they’re saying at: www.acuity.com

20

For All That Matters

facebook.com/acuitywow The Tennessee Insuror

From Your President The Best 2013 Ever

In the course of my time as Insurors President this year, Chuck and others have jokingly suggested that I will one day look back on this year as being the best year of my life. And while up to this point I don’t consider it to be my best, it is definitely in the top 56.

But in all honesty, it has been an awesome year.

With Chuck as my chauffeur, we’ve covered a lot of miles and made many new friends around Tennessee. In addition to making new friends we have broken a lot of bread. The best being those six inch pork chops that the Insurors of Northwest Tennessee cook up at their Dyersburg golf outing.

It’s been a pleasure serving the Insurors of Tennessee. How lucky we are to have such a vibrant and strong Association that can support so many great products, services and meetings for independent agents. And can you believe they’ve been doing it for over 120 years?

This all is made possible by the membership and leadership we are lucky to have. But you know that luck really has nothing to do with it.

It’s the type of people that make this business strong. People like us who work hard at taking care of others. What an awesome job we have as agents, and to top it off, we are paid handsomely both emotionally and monetarily.

The thing I enjoyed most this year (other than the pork chops) was meeting the young people in our industry across the State. Before this year I was scared there were no young people getting into insurance careers. I was worried about the perpetuation of our industry. I’m glad I can now say I was wrong. They are out there and the future of the business looks to be in good hands.

The Insurors Young Agents Committee is as strong as ever. It has been a great year under the leadership of Taylor Porch. Our incoming chairman, Paul Steele, and I know that the Young Agent tradition will continue to grow into the future.

What I want to see in 2014 is all our agency The Tennessee Insuror

principals and company managers getting their young people involved. The partnerships and friendships they make will pay dividends to you, them, your business and the Insurors.

What more reason do you need?

For those of you that may not fit into the Young Agents category, you too can also participate with your Association. Whether it’s attending a meeting, seminar, convention, or volunteering for something – you will benefit from the camaraderie of being there and participating. Even just participating in an Insurors CE class helps you and Association.

There is always something that can be done, and whether your passion is for Government Affairs, Continuing Education, Young Agents or just the industry in general, we want you involved in the Association. There is an old saying that, “You only get out of it what you out into it,” and that applies well to your membership in Insurors.

I would like to thank Chuck and all the Insurors staff for their help this year. They made it easy for me to be President. In addition, my predecessors and fellow current Board members have done so much of the work, it really does make this job less difficult. It’s been both a fun and rewarding task and I would do it again in a heartbeat.

“T h i s i s all made possible b y t h e membership a n d leadership we are lucky to have.”

I also want to thank my team at Miller | Loughry | Beach Insurance Services for their friendship and for putting up with me and my hectic schedule. And I definitely couldn’t do anything without my wife and family. Serving on our Board is a big commitment, but when you have supporters like I do it is a lot easier.

In conclusion, I just want to encourage all the agents in our business to know that our saying “Being Independent does not mean being alone,” really is true. I have so many friends in this industry who are “competitors” by definition, but counterparts by their actions. I have been honored to serve them as Association President, and I hope we have made them proud in 2013. u

Eddie Miller III 21

22

The Tennessee Insuror

From Your State National Director The Big “I” Has Your Back Some of you may remember the ad on the previous page or the one shown in this article from the Big “I” campaign featuring actor Raymond Burr in the 1980s. Burr was a household name for his roles as Perry Mason and Robert Ironside.

The Big “I” used his trustworthy character and instantly recognizable voice to promote “Independent Agents - The More than One Company Agent.” Print and television ads were run all over the country, and the impact was felt almost immediately.

The advertising campaign came at a time when the country was facing recession and the direct writers were cutting into independent agent business. The Big “I” new something had to be done for its members, and they stepped up in a big way.

And isn’t that the point of membership in an Association? Being able to count on the organization to fight for its members, and for the overall good of the industry? Where would we be without programs like Big “I” Markets, Trusted Choice, Virtual University, Best Practices and for the future, Project CAP? What about the risk purchasing group that helps keep our E&O rates down? And not to mention RLI PUPs, Big “I” Eagle and our national Flood insurance program.

You may not even realize some of the things available to you as a member of the national Association. Did you know that in 2013, the Big “I” has had over 20 television appearances, over 100 national commercials and more than 15 interviews? IIABA CEO Bob Rusbuldt is one of the foremost business experts in our industry and is often sought out by news outlets to give an opinion on matters involving insurance. These are just a few of the ways that the Big “I” continThe Tennessee Insuror

ues to be a voice for the independent agent.

Lobbying on a Federal Level In Tennessee, we are lucky to have some great lobbyists who keep abreast of the issues facing our industry and make sure our interests are protected. The same can be said of our national Association’s work in Washington, D.C. Rusbuldt has been named multiple times as a “Top Lobbyist” by respected D.C. newspaper The Hill, including as recently as 2012.

When the ACA legislation threatened to totally exclude agents from the healthcare marketplace, the Big “I” was there to keep us involved. When the NFIP program was continually placed on the chopping block, the Big “I” helped Congress see its importance and work towards reforms. The Big “I” also involves it agents, from testifying before Congress to the annual Hill Day congressional visits. And with these and other continual issues like agent licensing and crop insurance always on the table, we need the work of our national Government affairs program more than ever.

“Y o u m a y not even realize some of the things available to you as a member of the national Association.”

Our national Political Action Committee has also played an important role, with agents contributing almost $1 million again this year to InsurPAC. And we can still hit that $1 million mark by year-end!

All Part of Your Dues Value So, when you review your Insurors of Tennessee dues renewal statement at the end of this year, keep in mind that membership in the national Association is part of that equation, and may be a more valuable part than you realize. u

Brad V. Smith 23

Don’t be faced with an Empty Chair

Transamerica Executive Advantage ProgramÂŽ

Disruption and absenteeism due to employees’ care giving duties costs U.S. employers up to $33.6 billion per year.1 5HZDUG NH\ HPSOR\HHV ZLWK D EHQH¿W WKDW ZLOO KHOS WKHP IDU LQWR WKH IXWXUH DQG DGG WR \RXU EXVLQHVVœ ERWWRP OLQH The Transamerica Executive Advantage ProgramŽ enables you to provide TransCareŽ II Long Term Care Insurance to your employees as well as: ‡ ‡ ‡ ‡

Help prevent the loss of a key team member due to becoming a full-time caregiver by offering coverage and discounts to eligible family members.

Reduce the impact of long-term care’s potential to deplete assets and/or a crucial team member’s time.

Take advantage of current law which provides incentives to use corporate funds to purchase Long Term Care insurance.

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Note: Employee LTCi contributions are currently not eligible for pre-tax consideration under IRS sec.125 plans. Neither Transamerica Life Insurance Company nor any of its agents give legal, tax, or accounting advice. Please consult your tax advisor.

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The Tennessee Insuror

From Your CEO

Just Who is a Member Anyway? ?

By definition, Insurors of Tennessee is a trade association for independent, property & casualty insurance agents doing business in our State.

But is that the only group we serve? In many cases, our lobbying efforts affect non-members independents, captive agents, companies and brokers as well. Often times those same folks attend our classes and benefit from our marketing programs. So, just who really is a member of Insurors?

John Pitts, a Past President and former State National Director of Insurors, as well as being a national agency leader, used to say in our meetings when membership was discussed, “Insurors of Tennessee - where everybody is a member, but not everybody pays.” As time has gone on since his passing I have come to a better understanding of what he was talking about. In a broad sense, he stated that the work Insurors does benefits the entire insurance industry in Tennessee whether they are a member or not.

At first that bothered me, until I came to realization that we are advocates for our members, and by doing a good job we will always have an impact on non-members. Our organization is strong today because we have been led by so many givers of their time and talents to support the agency system as a whole. An effective association only works when we have many such givers involved.

It amazes me the number of people I have run into over the years (non-members) who cite with great pride about being grandfathered from continuing education; not included in paying professional privilege tax; not required to have premium trust accounts; and have the option of having only an agency license. All of these were directly influenced by the efforts of Insurors of Tennessee. But these folks, for a myriad of reasons, won’t ever find it important enough to join the Association.

Non-members routinely call the office asking us to, “get them some companies,” or find out how much they should pay for an agency (or a CSR). They want us to send them a copy of a non-compete contract, or ask us how to break The Tennessee Insuror

their non-compete contract. When asked the question are you a member? We are often given a response that they are, “considering it.” Case in point, recently a prospective member who we had met with once before called and asked if she could come by the office and, “pick out some companies for her new agency.”

Despite the common misconception, we do not hand pick companies, even for members. What we do provide is an environment where companies want to do business in our State, hopefully creating more competition and giving you more options for your agency.

I also was recently included on a scathing email written about Obamacare to one Member of Congress, two State Senators and one State Representative. The issue directed to me, “Where is the Big ‘I’ in all this?” It went on to further say they will be knocking on our door to find out why Tennessee insurance agents are left to twist in the wind. I take all letters and calls very seriously and began to investigate. I quickly learned that the agency had not been a member for almost 5 years, so they could not have been privy to the efforts of the Insurors and the Big “I” staff.

We may not always have been successful, but not for a lack of trying. To view it from another perspective, I still have the e-mail from a former member resigning from the Association due to our position on a certain issue. The bottom line is that both of these agencies should be members, but now they have excluded themselves from our “greater good.”

You should have recently received your agency renewal information for 2014. As all employees and producers are members of the association through their respective agencies, make your personnel adjustments accordingly. Regardless of the dues amount, you will likely find your portion of supporting the agency system is less than the your agency’s cell phone bill. When you see others who are not currently members, remind them that the successes we are currently enjoying could be even greater with their participation. u

“An effective association only work s when we have many su ch gi ve r s involved.”

Chuck Bidek, CPCU 25

MidSouth Mutual was previously known as Home Builders Association of Tennessee Self-Insurance Trust

Stability & Strength MidSouth Mutual provides a measure of workers’ compensation to the home building industry others cannot match.

Proudly serving the members of the Home Builders Association of Tennessee since 1995.

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We offer four umbrella limits, with coverage you can rely on.

• $5 to $25 Million in umbrella coverage with up to $50 Million in total limits.

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The Tennessee Insuror

Education Calendar

TAKE YOUR INSURANCE CAREER TO

THE NEXT LEVEL ::::INSURORS 2014 CE::::

TRI-CITIES/JOHNSON CITY

MEMPHIS

4/22 : CISR : AGENCY OPERATIONS 9/17 : CISR : PERSONAL AUTO

3/5-7 : CIC : COMMERCIAL CASUALTY* 3/20 : CISR : COMMERCIAL CASUALTY I 6/18 : CISR : PERSONAL RESIDENTIAL 11/13 : CISR : PERSONAL LINES

NASHVILLE KNOXVILLE

4/9-11 : CIC : LIFE & HEALTH 5/7-9 : CIC : AGENCY MANAGEMENT 7/24-25 : RUBLE : GRADUATE SEMINARS 8/13 : CISR : COMMERCIAL CASUALTY II 8/20-22 : CIC : COMMERCIAL CASUALTY 9/15 : CISR : ELEMENTS OF RISK MANAGEMENT 9/16-19 : CRM : CONTROL OF RISK* 11/12-14 : CIC : COMMERCIAL PROPERTY 11/12 : CISR : PERSONAL LINES 12/3-4 : CYBER RISK SEMINAR

4/23 : CISR : AGENCY OPERATIONS 6/11-13 : CIC : PERSONAL LINES* 9/18 : CISR : PERSONAL AUTO

ONLINE WEBCASTS (REGISTER AND VIEW DATES AT INSURORS.ABEN.TV)

: DATA PRIVACY INSURANCE : : ETHICS & BUSINESS : : WILLIAM T. HOLD - D&O LIABILITY : : NFIP FLOOD BASICS : : E&O RISK MANAGEMENT SERIES : : COMMERCIAL PROPERTY ENDORSEMENTS : : PROFESSIONAL ETHICS IN THE INS. INDUSTRY : : HOT TOPICS IN PERSONAL LINES : AND MANY MORE!

CHATTANOOGA 8/14 : CISR : COMMERCIAL CASUALTY II

CONTACT

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

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

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

WEBINARS

REGISTER AT WWW.INSURORS.ORG OR *WWW.SCIC.COM

(REGISTER ANYTIME AT INSURORS.CEU.COM)

: INSURANCE PRINCIPLES AND POLICIES : : LONG TERM CARE : : EMPLOYEE BENEFITS FOR SMALL COMPANIES : AND MANY MORE!

CALL LAURA THROWER AT 615.515.2607 FOR MORE INFORMATION OR E-MAIL HER AT LTHROWER@INSURORS.ORG ������������ ��� ���������� �� ��������� ���������:

CISR 3/20 4/22 4/23 6/18 8/13 8/14 9/15 9/17 9/18 11/12 11/13

Fee: $173

CE: 8

Commercial Casualty I Agency Operations Agency Operations Personal Residential Commercial Casualty II Commercial Casualty II Elements of Risk Management Personal Auto Personal Auto Personal Lines Miscellaneous Personal Lines Miscellaneous

CIC

Fee: $385 (Ruble $420)

Memphis Johnson City Knoxville Memphis Nashville Chattanooga Nashville Johnson City Knoxville Nashville Memphis CE: 24

3/5-7 Commercial Casualty Institute 4/9-11 Life & Health Institute 5/7-9 Agency Management 6/11-13 Personal Lines 7/24-25 Ruble Graduate Seminar 8/20-22 Commercial Casualty 11/12-14 Commercial Property

Memphis Nashville Nashville Knoxville Nashville Nashville Nashville

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

ABEN Webcasts (insurors.aben.tv) 12/4 12/5 12/5 12/11

E&O - Agency/Carrier Relationships Professional Ethics in Insurance Ind. E&O - Understanding Agent Duties E&O - Considerations of Agent Ops

CE: 2 CE: 3 CE: 2 CE: 2

$48 $60 $48 $48

12/11 12/13 12/17 12/18

E&O - An E&O Claim 360 View Data Privacy Insurance Ethics & Business Webcast NFIP: Basic Flood Course + Updates

Cyber Risk

$30 $48 $60 $72

Fee: $420

12/3-4 Cyber Risk Seminar

Ruble

CE: 2 CE: 2 CE: 3 CE: 3

Nashville

Fee: $430

9/16-19 Control of Risk

Nashville

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

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

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

$75 $50 $80 $100

*check VU site for current information on CE and pricing

Available from The National Alliance

(www.scic.com)

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

$75 $75

(insurors.ceu.com)

Insurance Principles and Policies Long Term Care Workers’ Compensation Employee Benefits for Small Companies Healthcare Reform and Affordable Care e-Coverage Fundamentals of Personal Auto Insurance

CE: 7 CE: 24 CE: 10 CE: 4 CE: 5 CE: 15 CE: 3

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

Register Online at www.insurors.org

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

27

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Government and Legal Affairs Commercial Cancellation Law in Tennessee Written by Ashley Arnold, General Counsel of Insurors of TN The Commercial Cancellation law in Tennessee (T.C.A. §56-71803) sets out certain enumerated reasons that a company may cancel a commercial risk policy mid-term. These are: 1. Nonpayment of premium, including nonpayment of any additional premiums, calculated in accordance with the current rating manual of the insurer, justified by a physical change in the insured property or a change in its occupancy or use; 2. Conviction of the named insured of a crime having as one of its necessary elements an act increasing any hazard insured against; 3. Discovery of fraud or material misrepresentation on the part of either of the following: A. The insured or the insured’s representative in obtaining the insurance; or B. The named insured in pursuing a claim under the policy; 4. Failure to comply with written loss control recommendations; 5. Material change in the risk which increases the risk of loss after insurance coverage has been issued or renewed; 6. Determination by the commissioner that the continuation of the policy would jeopardize a company’s solvency or would place the insurer in violation of the insurance laws of this state or any other state; 7. Violation or breach by the insured of any policy terms or conditions; or 8. Such other reasons that are approved by the commissioner.

The Tennessee Insuror

However, historically personal lines insurance has not received the same protections. During the 2013 Legislative Session, Senator Lowe Finney and Representative Mike Stewart introduced legislation that would have created a similar law for property insurance. The proposed legislation also contained a section that specifically stated a carrier could not refuse to renew a policy of property insurance solely on the basis of an inquiry by the insured regarding the policy or a loss under that policy. This bill was taken off notice early in the session and did not pass and become law.

Since that time, the insurance department has been looking at the possibility of issuing a Bulletin to address the treatment of policyholder inquiries in regard to homeowners’ insurance.

In the interim, the Department has provided companies and Insurors with the guidelines published by LexisNexis regarding when to report a claim. Under the Unfair Trade and Claims Practices Act, which would control, a “claim” is defined as: 3.A. “Claim” means: i. An oral, written, or electronic submission for payment that is filed by an insured, on behalf of an insured, or by a third party where the insurer accepts such claims, in accordance with the insurer’s reasonable submission standards; and ii. Is sufficient to reasonably establish contractual liability for payment on the part of an insurer; B. For the purposes of § 56-8-105, a “claim” does not mean an inquiry by an insured as to the existence of coverage or how a potential claim may affect future premiums or renewability of coverage; See, T. C. A. § 56-8-102

31

Therefore, under the law as it exists today in Tennessee, an inquiry should not affect coverage or premiums. In the interim, the Department has provided companies and Insurors with the guidelines published by LexisNexis regarding when to report a claim.

Here are some excerpts from the letter: • •

800-226-3224 www.fcci-group.com

Claim information should be reported when there has been a request from an insured or claimant for payment as a result of a loss.

Claims information should not be reported when a customer merely asks a question about their coverage or deductible.

Members may view the letter in its entirety on our website under the Resource Center-Homeowners/Dwelling Insurance section.

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

PERSONAL SERVICE. EXCEPTIONAL PARTNERSHIP. “At FCCI, we are here for our agents and our insureds for the long term, and we live by our values: loyalty, integrity, vision, excellence and service.

I’m proud to work for a company that believes in ‘doing what we say we’ll do’ and I strive to do that for my agents and their clients.”

Babs Fowler Underwriting Specialist FCCI Insurance Group Gulf Coast Region Ridgeland, Miss.

Now, let’s talk about your business.

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The Tennessee Insuror

10/17/13 4:10 PM

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The Tennessee Insuror

Association Update

Ten Best Practices Agencies for Tennessee

The 2013 IIABA Best Practices Study was recently completed by Reagan Consulting, and ten Insurors members were included on the list. Collier Insurance of Memphis, The Crichton Group of Nashville, Higgins Insurance and Benefits of Clarksville, The Johnson Agency of Madisonville, Lipscomb & Pitts Insurance of Memphis, McDaniel-Whitley of Memphis, Regions Insurance Group of Memphis, Scott Insurance of Knoxville/Franklin, TIS Insurance Services of Knoxville and Van Meter Insurance of Franklin/Bowling Green, KY all received the prestigious recognition.

Tennessee had the fifth most agencies qualify of any state.

The annual Best Practices Study originated in 1993 as an initiative to help independent agents build the value of their most important asset, their agencies.

Johnny Pitts Named 2014 Chairman of CIAB Johnny Pitts, CIC, chief manager of Lipscomb & Pitts in Memphis, has been elected 2014 chairman of the Washington-based Council of Insurance Agents & Brokers. Mr. Pitts was elected during the council’s 100th annual Insurance Leadership Forum in Colorado Springs, CO, in October. He worked for Safeco Insurance Co. and Cigna Insurance Co. before moving to Lipscomb & Pitts in 1981.

to be a positive contribution to our community’s efforts to expand, create jobs, and keep the high quality of life we have here in Cumberland County.” says Gernt.

Scott Insurance President Sydnor to Retire; Will Be Succeeded by Mauck Lynchburg, VA-based Scott Insurance will have a new president in 2014. Walker Sydnor, will retire at the end of the year after 37 years at the insurance brokerage. Scott Insurance has Tennessee offices in Knoxville and Franklin, and will now be led by Hutch Mauck, who has headed the firm’s Richmond office since opening it in 1991.

Mauck joined Scott Insurance in 1991 to open the Richmond office, where he has served as a risk advisor and the branch leader.

Regions Insurance Expanding its Operations in Tennessee Regions Insurance, based out of Birmingham, has announced an agreement with Nashville-based The Hanback Group to obtain the firm’s personnel and accounts. Regions Insurance said the deal helps Regions expand its employee benefits practice in Tennessee. The Hanback Group is an independent employee benefits insurance brokerage and human resources consulting firm.

In 1989, Pitts and Mat Lipscomb III, CIC, became partners at Lipscomb & Pitts Insurance. In 1992, they purchased the firm from their fathers, who founded the company in 1954.

Regions also has an office in Memphis, and they have already begun expanding employee benefits practices out of that location.

The Butler Company Merging with Bush Insurance

Hylant Merging its Two Nashville Offices

In September, The Butler Company, Inc. of Nashville merged with Bush Insurance and Financial Services, Inc. of Franklin.

Chester Butler, CIC, CPIA, will remain with the agency and Brad Butler, CIC, CPIA will join the Team as Assistant Vice President.

Gernt Named President of Crossville Chamber Art Gernt II, principal of Gernt Insurance in Crossville, has been named Chairman of the Board of the Crossville – Cumberland County Chamber of Commerce. Art has had many years of volunteer work for this organization and has chaired the Chamber’s Retail Division for three years. “I hope The Tennessee Insuror

Toledo-based Hylant, one of the nation’s largest privately owned insurance brokerage firms, announced recently that their two Nashville offices have relocated into one location at 8 Cadillac Drive, Suite 230, Brentwood, TN. Kim Riley, president of the Nashville office, made the announcement.

Earlier this year, Hylant acquired Benefit Consulting Alliance, LLC (BCA) and Benefit Outsourcing Group, Inc. (BOG), which both offer employee benefit consulting services. The acquisition extends greater access to resources to BCA and BOG clients that are required in today’s challenging health care reform environment. It also solidifies Hylant’s commitment to the greater Nashville marketplace as the company continues to build out and add strength to existing core services and capabilities; including property & casualty, international, executive risk, medical risk, transportation as well as private equity. u 35

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The Tennessee Insuror

Product Spotlight

E&O Risk Assessment Program MARKETS Big “I”

Chances are you already know how vulnerable your agency can be to an E&O claim, whether you are at fault or not. But there are ways to lessen that vulnerability.

In early 2013, Insurors initiated a new service to member agencies to provide on-site assessment of errors and omission liability potential. The assessment process is approved

by Swiss Re, the underwriter of many E&O Liability policies written for Insuror members. Previously there were approximately 22 Swiss Re approved auditing firms outside the state of Tennessee. Insurors believes that by offering this service “in house,” exclusively to member agencies, we can be more responsive to their needs and schedules, and we can provide the service more efficiently than other auditing firms.

When preparing to conduct an E&O audit we intentionally gather a great deal of information on an agency before we arrive on-site with the idea of limiting the disruption to normal agency operations. Staff interviews are usually completed within two work days depending on the number of locations and the size of the staff.

The Tennessee Insuror

Big “I”

PROFESSIONAL LIABILITY

E&O risk assessment focuses on loss prevention with emphasis on consistency throughout the client life cycle. By using Big “I” Big “I” the same methods every time in the initial loss assessment, RETIREMENT EAGLE AGENCY SERVICES preparing the proposal, writing the policies, endorsing and renewing policies, and handling claims, agencies are more likely to avoid gaps, overlaps and misunderstandings. Virtual Big “I” Risk Consultant and E&O Happens, resources available to InBig “I” EMPLOYEE surors members, are emphasized during the audit process.

FLOOD BENEFITS Swiss Re has also approved E&O liability premium reductions of up to 10% for five years upon compliance with any audit Big “I” Big I FLOOD recommendation.

Typically this discount easily exceeds the ADVANTAGE In, Above and Outside of the NFIP! cost of the audit.

Risk assessments will be performed by Don Cunningham, CPCU, CIC, a 30+ year veteran of the industry and an Insurors staff member. Don is the only Swiss Re approved auditor based in Tennessee. If you are interested in finding out the value an E&O risk assessment could provide for your agency, contact Don at 615.515.2602 or e-mail him at dcunningham@ insurors.org. u

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Call today to find out why agencies nationwide are applauding Ovation Payroll Nikki Hinton Ovation Payroll 901.598.4829 nhinton@ovationpayroll.com 38

The Tennessee Insuror

Company Spotlight

Heartland Ovation Payroll Has your agency ever had a client who’s workers’ compensation coverage or other lines of insurance were moved to their payroll company’s “insurance agency?”

If not, chances are it won’t be long until you see it happen.

These other payroll companies are setting aggressive goals to gain big market share in all insurance and benefit lines.

Health Insurance plans, Workers’ Compensation Insurance and Property and Casualty lines, nothing is off limits. No wonder it’s tough to keep your clients, much less win new business. But when you partner with Heartland Ovation Payroll, you can protect your book of business, gain a competitive edge, and at the same time expand your client base.

Ovation Payroll is the new Insurors-endorsed partner for payroll services. With Ovation, you can insulate your book of business, receive referrals and maintain ownership of the clients you refer. All while earning commission on your clients that use Ovation for their payroll services.

Product Offering Full service payroll processing that focuses on growing your client’s business rather than worrying about the everchanging complexities of payroll. With Ovation Payroll you get personalized service, superior technology and the industry’s only three year price lock. We also provide everything business owners need to get their staff paid accurately, on time and with minimal effort, including: • • • •

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The Tennessee Insuror

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posit and/or Pay Advantage card Restaurant Payrolls ( Fica Tip Credit, Tips to Minimum, Tip Sign off, Tip Allocation Reporting)

Ovation Payroll has a web-hosted payroll platform, which provides the ability to customize the payroll processes from web-based submissions to completely paperless processing.

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With Ovation Payroll Plus, customers get the turnkey Ovation Payroll service, plus a fully integrated human resources solution that offers a complete range of HR tools to support their business, including: •

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Get Started Today Don’t wait until those “other” payroll companies start cutting into your client base. Contact Ovation Payroll today to learn more about how you can protect your clients, your book of business and expand your offerings. u

Tennessee Contacts Nikki Hinton Senior Product Advisor nhinton@ovationpayroll.com 901.598.4829 Randy Pumputis Director of Business Development rpumputis@ovationpayroll.com 1.877.510.3526 About Heartland Ovation Payroll Heartland Ovation Payroll is headquartered in Rochester, NY and Princeton, NJ. Led by Heartland Chairman & CEO Robert O. Carr and Ovation CEO Anthony Tortorella, the company currently has over 250,000 customers nationwide. In January of 2013, Ovation was purchased by Heartland Payment Systems, Inc. The acquisition allowed the opportunity for Ovation to accelerate growth using Heartland’s built-in nationwide distribution channel.

They Offer a full range of payroll and HR solutions coupled with award winning customer service to deliver the ultimate user experience. Their superior technology allows client’s payroll data to be securely accessed by providers of banking services, benefit programs, government agencies or insurance providers for a variety of services related to payroll.

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Dave Porch Porch-Stribling-Webb Waverly, TN

Tom Strate Strate Insurance Group Morristown, TN

Busch Thoma E.B. Thoma & Son Agency Tullahoma, TN

Jack Spann Spann Insurance Nashville, TN

Richard Hollis Hollis & Burns Memphis, TN

Roger Smith Thompson & Smith Insurance Jackson, TN

Presidents of Insurors of Tennessee

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©2013 Keystone Insurers Group®. All Rights Reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

Looking Back

a past president spotlight presented by

Jack Spann • Principal at Spann Insurance • Insurors President in 2001 John A. “Jack” Spann III is a principal agent at Spann Insurance, an agency his father, John Spann Jr., founded in 1951 and is still operated by the family today.

Jack’s mother Gwen, brother Lee and son John Spann IV are all integral parts of the agency’s success.

that would show up for the meeting. I did not budge. I was sure relieved when eighteen past presidents attended. At the next association business meeting the by-laws were changed to make all past presidents members of the nominating committee. I think the result has been a group of past presidents that stay somewhat involved and informed, and each year about fifteen to twenty people make the decisions about our future leaders, not just five people. I’ve been very pleased with the quality of our members that have assumed the role of leadership for Insurors.

The Insuror: It’s been twelve years since you were President of Insurors, any reflections on your time in office you could share with us?

The Insuror: How has the Association, and to a greater extent the industry, changed in the last twelve years?

Jack Spann of Spann Insurance

Jack: My term as the Insurors president was during a very exciting period. The Insurors Bank (now INSBANK) was launched shortly after I took office. It was a privilege being able to watch guys like Bill Wallace, Lou Patten and Mike Qualls take what began as a reaction to banks pressuring Congress into letting them get into insurance and make it into what Jim Rieniets and his staff have grown INSBANK into today.

Jack: Automation has changed the industry more in the last twelve years than it changed in the prior thirty.

Communication is the most important tool in business. How you use it to your advantage is what determines if you are left to sink, swim or just tread water. The Insurors has been a swimmer! The electronic bulletins, e-mail alerts, and even The Tennessee Insuror have kept pace with technology.

The Insuror: You have been a longtime supporter of the Insurors Titans Radio Program, why do you feel that is important to your agency?

As president I had the duty of traveling to the Big “I” national convention in Honolulu which Jack: Branding is extremely would normally be a lot of fun. But Spann with wife Louise and Insurors CEO Chuck Bidek important. Our board decided that this was shortly after 9/11 in October we needed some platform to have a 2001 – not a good time to travel, and no one was on the island statewide advertising program since we had been off the air during that period. It was a ghost town! However, I acquired for ten years from the UT Vols network. We decided to explore an appreciation for just how strong and effective our national a relationship with the Titans, and had a lunch meeting with association is and what fabulous products that they provide Chuck, Bunny Oakes, Mike Keith and Kyle Denzel – who none to us and our clients. of us knew. Kyle quickly explained that “you don’t get Mike One of the duties of the president was to appoint a nominating committee which, in-affect, set the slate of officers and directors for the next year. Traditionally the president named the last 5 past presidents to that committee. I did not like the concept that a simple majority of three people had that much power. I decided that every living past president should be on that nominating committee. It was not a well-received idea! Chuck was skeptical, as well a former president who told me that there would not even be five past presidents The Tennessee Insuror

without me!” Kyle was the head of Titans Radio advertising.

He presented a plan that would cost $100,000 per year. Chuck about choked on his kielbasa.

After the meeting Chuck challenged me by saying, “I’ll agree that the Insurors will do $50,000 so all you need to do is get two companies at $25,000 each on a long term basis.” The next week we had dinner in Nashville with Phil Urban who was the president of Grange Insurance in Columbus, Ohio. Shortly thereafter Grange was onboard. It did not hurt that the Titans

41

star was Eddie George who was also a Heisman Trophy winner at Ohio State. Grange’s support of the Insurors advertising program with the Titans continues today and has been vital to its success. Grange deserves a great deal of thanks and credit for what they did to support our members.

With one company on board, I approached Matt Sasso who was the state manager with USF&G. Matt did not really care about the advertising component, but he wanted good tickets. Apparently his predecessor had purchased the cheapest PSLs available and the USF&G tickets were in the upper deck on the last row. Matt refused to give them to agents or use them himself. I told him that the deal would include four club season tickets and that got him committed.

The fun part was going to tell Chuck that I had given away the Insurors four club season tickets that the board had approved. Matt signed and the Insurors advertising deal with the Titans was launched!

The Insuror: What role do you feel is most important Insurors to play in supporting independent agents?

Jack: Without question it’s the political influence. The education role is important, but there are other sources for education – not as good as what we offer – but other education options are out there.

The Insurors of Tennessee is the only advocate and protector of independent agents at the Capitol! The Insurors are recognized as a center of influence within the legislative and regulatory community. Our ability to maneuver through the governmental maze is not understood by 98% of our members, and therefore they do not realize what the Insurors does for them. It’s not an accident that the Insurors is admired; respected; and also feared by elected officials, lobbyists, and government employees. It’s the result of a well-funded, talented, and dedicated team and our members owe them a great deal of thanks.

The Insuror: Is there a goal that independent agents as a community should be focused on for the future?

Jack: That question probably needs a deeper thinker than me.

I believe that independent agents must strive to be a cohesive group that maintains civility even while being competitors.

Together we can be a recognized group of professionals in the community that provides services that the public has to purchase. We sell a product people must purchase. The secret is convincing them that their best option is to buy it from an independent agent.

The Insuror: And finally, what advice would you give other agents about building a successful insurance career such as your own?

Jack: A couple months out of college my father sent me to some company schools to learn about different aspects of the business. He sent me for a week to Milwaukee to the Time Insurance Company, which became part of Fortis. (By the way, if you go to Milwaukee in February take a coat because a long sleeve shirt is not enough!) When I returned I was discussing with my father what I learned and was reviewing Time’s agents’ manual with him. One page had the commissions for life and health on it and I remarked about how some of them paid really high commissions. My father stared at the page for a few moments, then he took his open hand and put in on the page and slowed pulled it from the manual, crumbled it into a ball and threw it into a trash can. He looked at me and said, “Don’t you ever worry about what the commissions are again! You don’t sell our clients what you want them to buy, you are here to sell them what they need. If you take care of your clients they will take care of you!”

Another invaluable lesson was I walked into my father’s office one day and asked him a question about how to rate or classify a risk. He reached over and pulled a manual out of his bookcase and threw it at me. He said, “I’m not going to be here forever. Son, you need to know how to find something like that yourself.”

The lessons were simple; “Be an agent not a salesman,” and, “Don’t be lazy, figure it out yourself.” u

‘Real-time endorsements have been a big timesaver.’

Brian Bartosh Principal Top O' Michigan Insurance Agency Alpena, MI

“In the first quarter of 2007, we processed about 285 real-time endorsements with just a couple of companies.

That number of transactions has increased to more than 400 a quarter and continues to grow.

“Growth is happening, in part, because the process is so easy. There is a reduction of steps and when you reduce steps you serve customers better and save money.”

Experience the power of Real Time.

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This message brought to you by the Real-Time/Download Campaign, which is dedicated to improving the competitiveness of the independent agency distribution channel. Participants include independent agencies and brokers, carriers, technology providers, user groups, and agent and industry associations.

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The Tennessee Insuror

UWLVH

Company Briefs

2014 Best Practices Companies Named

Every three years, the Big “I” collaborates with Reagan Consulting to select “Best Practices” firms throughout the nation for outstanding management and financial achievement in six revenue categories (less than $1,250,000; $1,250,000 to $2,500,000; $2,500,000 to $5,000,000; $5,000,000 to $10,000,000; $10,000,000 to $25,000,000; and more than $25,000,000). Agencies are nominated by either a Big “I”-affiliated state association or an insurance company and qualified based on operational excellence. Financial and benchmarking information for the participating agencies are also reviewed and updated. The 2013 Best Practices agencies in Tennessee may be found on page 35.

This year, fourteen Insurors Associate Members helped sponsor the Best Practices study. They are Amerisure Insurance, Central Insurance Cos., Chubb, CNA, EMC Insurance Companies, Encompass Insurance, Erie Insurance, The Hanover Insurance Group, Harleysville Insurance, Imperial PFS, Liberty Mutual Agency Corporation, Main Street America Group, Travelers and Westfield Insurance. We appreciate these company’s continued support of the study and the independent agency system.

Grange Insurance Announces Promotions for Ammendola and McMurtie Grange Insurance recently announced the promotion of two of its senior leaders, effective immediately. John Ammendola, president of personal lines for Grange Insurance, assumes responsibility for Grange’s Commercial Lines business under the new title of chief property & casualty officer. In addition, Peter McMurtrie, chief sales & marketing officer for Grange Insurance, adds profit and loss responsibilities for its affiliate, Integrity Mutual, to his duties under the new title of chief sales, marketing and affiliate officer.

John Ammendola joined Grange in 2010 as the president of Personal Lines and has guided the organization to profitable growth. “Bringing Grange Personal and Commercial Lines together under one leader will enable us to execute our property and casualty strategies seamlessly and speak with one voice to our independent agents and policyholders,” said Tom Welch, Grange president and CEO.

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McMurtrie joined Grange in 2006 as chief claims officer. He will oversee Integrity Mutual while continuing his work in sales and marketing for Grange Insurance. He will also be joining Integrity’s Board of Directors. “In his seven years at Grange, Peter consistently raised the performance of the organizations he led,” said Welch. “There is no doubt that we have built incredible momentum on our journey to become a consistently high-performing company.”

Progressive Chairman Lewis Passes Away Peter B. Lewis, the non-executive Chairman of the Progressive Corporation, passed away on November 23rd at his home in Florida. Mr. Lewis acquired control of the company in 1965 in an early leveraged buyout. At the time, the small insurance company with $6 million in revenues specialized in insuring drivers who had difficulty finding auto insurance.

In the 45 years since, 35 as CEO, Mr. Lewis oversaw the transformation of a 100-employee company into a full-line auto insurer with 26,000 employees and annual sales of $17 billion.

Today, under CEO Glenn Renwick, Progressive is the nation’s fourth-largest auto insurer selling direct and through more than 35,000 independent agents. Much of Progressive’s success derived from two of Mr. Lewis’ contributions: his vision that an auto insurer could reduce the human trauma and economic costs of auto accidents in cost effective and profitable ways, and his clarity about the Core Values governing and still guiding Progressive’s decision-making today.

tween employees and their work, and between employees and other coworkers. Great workplaces have lower turnover, higher levels of customer satisfaction and loyalty, higher productivity and profitability, more qualified staff, and better financial performance than other companies.

Harleysville President Browne to Retire After a long and distinguished career as an insurance leader in both the public and private sectors, Harleysville President and COO Michael Browne will retire effective May 1, 2014. Michael has led Harleysville since 2004, and the growth of the company in recent years can be traced directly to his vision, industry knowledge and commitment to Harleysville agents and associates. Michael played a critical role in the strategic combination of Harleysville and Nationwide – a partnership that will drive long-term growth in independent channel businesses.

Allied Insurance President and COO Kim Austen will assume Browne’s duties as the merger between the two companies moves to its next steps.

BusinessFirst Launches New Website Business First Insurance Company, a monoline workers’ compensation insurance company, has launched a new user-

ACUITY Again Named as A Best Workplace ACUITY is named the best workplace in America among midsized employers by Great Place to Work®, as published in Fortune magazine. This marks ACUITY’s fourth consecutive year as the top-ranked employer and the fifth time the company has claimed the #1 spot.

ACUITY has been on the list every year since its inception and has been in the top five for 10 consecutive years. No other company in the country, of any size, can make these claims.

“Being named the best mid-sized employer is important to everyone who counts on ACUITY,” said Ben Salzmann, ACUITY President and CEO. “To our nearly 1,000 employees, it means ACUITY continues to provide a positive, rewarding workplace.

Because we take care of our people, they take care of our customers and agents, who are being served by staff who enjoy working here and take pride in what they do.”

In selecting a best company, Great Place to Work® evaluates the relationships between employees and management, be44

The Tennessee Insuror

JANUARY 29 TH , 9:35 A .M .

EXPER TISE CRE ATES AN OPPOR TUNIT Y IN AN INS TANT, U N DER W R ITER PHIL SA M M S K EEP S A N AGENT A HE A D O F W H AT’ S NE X T

Phil shared thirty minutes with agent, Kate Morely, discussing her local industry insights and clients’ changing business risks.

More importantly, he shared a few industry insights that helped Kate envision an entirely new avenue for growing her book. Way to make every minute count, Phil.

CNA is right in your backyard.

With a branch located in Nashville, our underwriters, claim service representatives and risk control specialists are all within reach. To learn more, call 615-886-3300.

$POTUSVDUJPO t &EVDBUJPO t 'JOBODJBM *OTUJUVUJPOT t )FBMUIDBSF t .BOVGBDUVSJOH 1SPGFTTJPOBM 4FSWJDFT t 3FBM &TUBUF t 3FUBJM t 5FDIOPMPHZ t 8IPMFTBMF %JTUSJCVUJPO

Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2013 CNA. All rights reserved.

The Tennessee Insuror

45

friendly site for agents and business owners searching for workers’ compensation insurance options.

Atlas General Expands Marketing Team

Thomas S. Petcoff, president of the company states, “Our new website is just one more wat to increase brand awareness and reach business owners who are looking for a strong, stable workers’ compensation carrier. Our independent insurance agents will also find it to be a useful selling tool to help potential policyholders become familiar with who we are and how we are different from other workers’ comp companies.”

Atlas General Insurance Services, LLC, a national multi-line program manager, is pleased to announce two new additions to the Knoxville dedicated marketing team. The Knoxville office welcomes Shane Cosey of Suwanee, Ga. and Nick Seago from St. Louis , Mo. as external marketing reps.

Petcoff adds, ”The informative content is complimented by a clean, inviting look and feel indicative of the BusinessFirst brand.”

Applied Systems Donates $30,000 to InVEST InVEST, the insurance industry’s premier classroom-to-career education program, is pleased to announce that Applied Systems has donated $30,000 to the program.

“Applied Systems’ commitment to the InVEST program with this generous gift of $30,000 will help create a career path for the next generation of insurance professionals through financial literacy, insurance education and scholarships,” says Bob Rusbuldt, Big “I” president & CEO. “Companies, educators, volunteers, agents and industry leaders, like the dedicated professionals at Applied Systems, are key to the success of the InVEST program. We applaud and thank them for their commitment to this critical program.”

Reid French, CEO, Applied Systems, announced the donation during a keynote presentation at the recent TENCon 2013, the flagship conference for Applied Systems software users, which was attended by more than 2,200 insurance industry professionals. The contribution to InVEST coincides with Applied Systems’ 30th anniversary this year and reflects the company’s continued commitment to investing in the future of the insurance industry.

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Prior to joining Atlas, Cosey served the director of sales and marketing for Smart Choice agency. He was responsible for managing effective marketing programs and training and coaching a sales team in a three state territory that included Georgia, Mississippi, and Alabama. During his time there, Cosey successfully implemented sales strategies that increased sales margin for all branches within his region. Prior to his accomplishments with Smart Choice, Cosey held marketing positions with Safeco Insurance Company and Travelers Insurance.

Seago is a seasoned insurance professional with more than 14 years of expe-

rience in industry. Prior to joining Atlas, Seago served as the director of marketing at Rio National Insurance Company.

He was responsible for creating marketing strategies for several Mid-Western states, managing a team of field marketing staff and worked with product development. Previously Seago held marketing and underwriting positions with Lincoln General Insurance Company and Gateway Insurance.

Church Mutual Expanding to Public Schools Market Church Mutual Insurance Company has announced that it is expanding its workers’ compensation and commercial automobile coverages — once available only to religiously affiliated schools — to public school districts.

By partnering with elite, experienced brokers, Church Mutual can now offer public schools the opportunity to benefit from its 116-year history of financial stability and value-added services. These services include risk management assistance, school-focused safety resources, quick and accurate claims service and

A.M. Best upgrades Harford Mutual to a Financial Strength Rating of A (Excellent) Financial Strength Rating

A M

BEST A Excellent

FOR THE LATEST RATING, ACCESS WWW.AMBEST.COM

W W W. H A R F O R D M U T U A L . C O M

HarfordMutual_InsurersTennessee_R1.indd 1

The Tennessee Insuror 5/30/13 3:47 PM

decades of experience serving the unique needs of schools.

Church Mutual has a long history of providing specialized protection for religiously affiliated schools and day care centers, currently insuring more than 3,000 across the nation.

Coverage for public school districts is currently available only in Arizona, Arkansas, Illinois, Indiana, Iowa, Maine, Massachusetts, Minnesota, Mississippi, Pennsylvania, South Carolina, Tennessee, West Virginia and Wisconsin.

ProAssurance Corporation Acquiring Eastern Insurance Holdings Medical professional liability insurer ProAssurance Corp. said it is acquiring monoline workers’ compensation insurer Eastern Insurance Holdings Inc. in an all-cash transaction that values Eastern at $24.50 per share.

Eastern will become a wholly-owned subsidiary of ProAssurance. The transaction, with an aggregate value of approximately $205 million, is expected to close by January 1, 2014.

CPCU Society Expands Membership Options CPCU Society candidate membership is now available for active students who have passed a minimum of two or more

CPCU exams! Membership will be offered at a discounted rate and will provide resources and opportunities that can help students achieve their career goals.

The CPCU Society’s mission is to provide resources and educational programs that will enable individuals to expand their technical insurance skills and business capabilities in order to improve the overall performance of the insurance industry while adhering to the highest ethical standards.

Westfield’s Welch Joins InVEST Board InVEST, the insurance industry’s premier classroom-to-career education program, recently announced that Craig Welsh, CPCU, AFIS, has joined its national board. Welsh is group distribution leader for Westfield Insurance.

“InVEST is pleased to announce that Craig Welsh has joined our distinguished board of directors,” says Robert G. Slocum, CPCU, CIC, InVEST board chair and president of The Slocum Agency, Inc., an independent agency in Warwick, R.I. “We look forward to drawing from Craig’s more than 20 years of industry expertise to improve and grow this wonderful program.”

Craig Welsh has served in several underwriting roles and in the agribusiness business division with Westfield Insurance in the states of Iowa, South Dakota, Wisconsin and Ohio. u

ENTHUSIASM IT’S CONTAGIOUS

“I love skiing, but I avoid dangers. As a Personal Lines Underwriter, I’m just as diligent in knowing ways to protect against risk. Your clients count on you—I appreciate the opportunity to help you maintain that trust.”

Nicole Bielat Personal Lines Underwriter—and bunny hill graduate Connect with Nicole on LinkedIn!

Managing General Agency Since 1920 Property/Casualty t Professional Liability t Surety Commercial Transportation t Personal Lines t Premium Finance

The Tennessee Insuror

800.666.5692

jmwilson.com

47

Conferees Honored at Ceremony

...continued from page 13

Robin S. Joines, CRM, ARM Sedgwick - Memphis

Ashley NaShea Harmon, CISR Insurance Incorporated - Cleveland

Kendrick Noll, CIC, CRM, CSHM Arthur J. Gallagher Insurance Services - Brentwood

Sonia Hill, CISR The Crichton Group - Nashville

J.R. Parsons, CRM Pi Kappa Alpha Fraternity - Memphis

Puddy Holmes, CISR Insurance Incorporated - Cleveland

Jessica Walters, CIC, CPCU, CRM, CISR Lipscomb & Pitts Insurance - Memphis

Kellie D. Hunt, CISR The Crichton Group - Nashville

Certified Insurance Service Representatives

Sherilyn Kierulff, CISR Lipscomb & Pitts Insurance - Memphis

Sandra Adcock, CISR BFS Insurance Group - Clarksville Renae Adelsbarger, CISR The Allison Insurance Group - Jackson Whitney Bateman, CISR Lipscomb & Pitts Insurance Ashley E. Beard, CISR BIS Insurance Group - Mount Juliet Deborah A. Belknap, CISR The Crichton Group - Nashville Lauren Bowie, CISR Lipscomb & Pitts Insurance - Memphis Lyndie Cummings, CISR Hardin County Bank Insurance Agency - Savannah Stephanie D. DeFriece, CISR Insurance Incorporated - Cleveland Yodi Fagio, CISR Insurance Incorporated - Cleveland Danny E. Forsee, CISR BB&T - CLJT&H - Nashville Susan Gregory, CISR Sunbelt Insurance Group - Chattanooga Amy Griest, CISR Miller Loughry Beach Insurance Agency - Murfreesboro

48

Brandi Lane, CISR Strate Insurance Group - Morristown Joyce L. Ouimet, CISR Travelers Insurance - Knoxville Maranda Reffner, CISR Insurance Incorporated - Cleveland Heather Rowan, CISR Harris Madden & Powell Insurance- Memphis Chad Snider, CISR Westan Insurance Group - Martin Jennifer Webb, CISR BFS Insurance Group - Clarksville Pamela White, CISR Van Meter Insurance - Fairview

Certified School Risk Managers Teresa Sheppard, CSRM Church Mutual Insurance Company - Knoxville Susan Patrick, CIC, CSRM BB&T - Huffaker & Trimble - Chattanooga

University Associate Certified Insurance Counselors David Herzog, UACIC University of Mississippi - Oxford u

The Tennessee Insuror

And we listened.

RLI’s Personal Umbrella Policy is now accepting many new exposures for new and renewal business. There’s something for almost everyone in our new underwriting box!

®

PERSONAL UMBRELLA POLICY

Now eligible for the RLI Personal Umbrella Policy: t Drivers of any age t 20–21 year old drivers can have up to 1 incident t Drivers with an international license t Up to 1 DWI/DUI per household t Up to 6 moving violations and 3 at fault accidents per household t Up to 10 autos (+25 antique autos) per household t Up to 10 properties per household (5 can be rentals) t Up to 5 non-U.S. properties per household

For more information, go to www.rlipersonalumbrella.com

EnterDavid Contact Info at Contact Williams or dwilliams@insurors.org highlight and delete Call 615.515.2605 before printing or Visit our RLI PUP page at www.insurors.org/products-programs/rli-pups/ PUP-MK 509 (06/10)

OUR DWELLING INSURANCE ÝÛ~ ÉÛE]oÛ9mkaf]kkÛ:geeakkagf ÝÛGYjlf]jk`ahÛGjgxlÛJ`Yjaf_ ÝÛ~ ÛDYpaemeÛGgda[qÛCaealk ÝÛFof]j ÛK]fYfl ÛMY[YflÛ8f\ Û J]YkgfYdÛIakckÛ8[[]hl]\ ÝÛDgZad]Û?ge]kÛ8[[]hl]\ ÝÛJ[`]\md]ÛI]flYdÛGjgh]jla]k ÝÛ=YklÛFfdaf]ÛHmgl]k ÛGgda[a]k Û 8f\Û<f\gjk]e]flk

REWARDS OUR AGENTS. National Security strives to provide competitive, affordable insurance for policyholders, but we also reward our agents with some of the highest commissions in the industry, a partnership profit sharing program and an award-winning web site that provides fast online quotes, policies, and endorsements. Find out more by calling 1-800-239-2358 x213 or visit us on the web at www.nationalsecuritygroup.com.

The Tennessee Insuror

Elba, Alabama • 800-239-2358

49

We push ourselves for you.

Because you push yourself for them.

For more about how Grange can help you help your customers contact: Donya Wilson at 800-422-0550 ext. 3137 or wilsond@grangeinsurance.com.

grangeinsurance.com 50

The Tennessee Insuror

Meetings

Winter Lineup Includes Two Big “I” Meetings Southern Agents Conference in Atlanta on December 13-15 The Southern Agents Conference was founded in 1971, to provide a communication forum for Independent Insurance Agents throughout the Southeast. Membership includes agencies which are members of the Independent Insurance Agents and Brokers of America (IIABA) in Alabama, Arkansas, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, and West Virginia.

The 2013 event will be held December 13-15 at the Ritz Carlton Buckhead in Atlanta. For more information, please visit www. southernagents.com.

Memphis Local Board Holiday Luncheon Set for December 18th The Insurors of Memphis local board will hold their annual Holiday Luncheon & Auction on Thursday, December 18th at the Hilton Memphis. The luncheon will feature a guest speaker as well as some great items up for auction to raise money for charity.

Please contact Sally Baker at sallybsource@aol.com for more information or to register now.

YOUR FIT FOR WORKERS’ COMP AND MORE! Preferred Comp of Tennessee is endorsed by the Insurors of Tennessee (IOT) to provide member agencies competitive workers’ compensation options.

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

Z Z Z Z Z Z Z Z Z Z

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

Big “I” Winter Meeting to Be Held January 7-11 in Orlando For more information or to get started, please contact: JohnZdanis Stinnett at (800) 755-8090Ext. x4368 Laurie at (800) 755-8090 4362 or email a submission to: preferred@meadowbrook.com

The 2014 Big “I” Winter Meeting & Best Practices Symposium will take place January 7-11 at the Hilton Bonnet Creek in Orlando. The meeting is an opportunity for Big “I” and State leaders to recap 2013, plan for the year ahead and set goals.

In addition to Best Practices, meetings will be held on InVEST, Diversity, Trusted Choice, Project CAP and more. Get more information now by visiting www.independentagent.com/ Events/WinterBoardMeeting/home.aspx. u The Tennessee Insuror

www.preferredcomp.com

51

NEW LOOK! Same dedication to our TENNESSEE agents!

Our mission is to provide you with excellent SERVICE from EXPERIENCED staff you can TRUST in your time of need.

Bruce Hunzicker 615.417.6377 â&#x20AC;˘ bhunzicker@ciusa.com

Visit us on the web @ WWW.CIUSA.COM

Member Tips

Big “I” Announces New UPS Program for Shipping New Vendor Replaces FedEx for Shipping Discount Program As a member of Insurors, you also have access to product and service programs developed by our national Association, the Big “I”. In the past, the Big “I” developed a program for agency members to receive discounts on shipping through FedEx. That program has expired, and a new deal has been created through a partnership with UPS. The new program will allow you to save up to 70% on shipments with UPS, an American global package delivery company headquartered in Sandy Springs, Georgia. It delivers more than 15 million packages a day to more than 6.1 million customers in more than 220 countries and territories around the world. The company was founded in 1907 and has since become the largest global courier delivery service with revenues of over $53 billion per year internationally.

Make the most out of your membership and take advantage of some of the most competitive rates available on shipping services with UPS. Whether you need your documents or packages to arrive the next day or you’re simply looking for the most affordable shipping option, UPS understands the importance of reliability, speed and savings.

UPS discounts can help your bottom line by saving you: • • • • •

Up to 34% on UPS Air letters including UPS Next Day Air* Up to 30% on UPS Air packages weighing more than one pound* Up to 32% on UPS International imports and exports Up to 16% on UPS Ground shipments 70% or more on UPS Freight shipments over 150 pounds

These discounts are available even if you already have a UPS account. To enroll and start saving, visit http://savewithups. com/iiaba or call 1.800.MEMBERS (1.800.636.2377) on MondayFriday from 8 am - 6 pm. * Discounts exclude UPS Express Critical and UPS Next Day Air Early A.M. u

Directory of Advertisers Advertiser

ACUITY Amerisafe Arlington/Roe & Co. Auto-Owners Insurance Berkley Southeast Insurance Group BKA General Contractors Brentwood Services Administrators Builders Mutual Burns & Wilcox CNA Insurance Consumers Insurance Donegal Insurance Group EMC Insurance Fessenden Consulting Group FCCI Insurance Group Grange Insurance Companies Guard Insurance Group Harford Mutual Heartland Ovation Payroll INSBANK J.M. Wilson Johnson & Johnson Keystone Insurers Group Lemic Insurance Company Millennium Brokerage Group National Security Group North Alabama Insurance Penn National Insurance Preferred Comp/Meadowbrook Preferred Property Programs South & Western Southern Cross Underwriters Summit Holdings Tennessee Underwriters, Inc.

Phone

(800) 242 - 7666 (866) 719 - 0267 (800) 878 - 9891 (615) 373 - 5200 (615) 932 - 5508 (877) 267 - 1566 (800) 524 - 0604 (800) 809 - 4859 (800) 341 - 4844 (800) 251 - 5852 (615) 896 - 6133 (800) 277 - 7442 x1370 (800) 239 - 2005 (615) 308 - 7926 (800) 226 - 3224 (800) 422 â&#x20AC;&#x201C; 0550 (800) 673 - 2465 x4567 (800) 638 - 3669 (901) 598 - 4829 (866) 866 - 4268 (800) 595 - 0063 (931) 704 - 0810 (800) 416 - 5498 (225) 201 - 0107 (800) 434 - 1992 (800) 239 - 2358 x267 (800) 824 - 1740 (800) 395 - 0518 (800) 755 - 8090 (888) 549 - 2465 (800) 492 - 5351 (800) 682 - 5263 (800) 971 - 2667 (615) 791 - 1400

Website

www.acuity.com www.amerisafe.com www.arlingtonroe.com www.auto-owners.com www.bsig.com www.bkageneralcontractors.com www.bwood.com www.buildersmutual.com www.burnsandwilcox.com www.cna.com www.ciusa.com www.donegalgroup.com www.emcins.com www.fessendencg.com www.fcci-group.com www.grangeinsurance.com

www.guard.com/apply www.harfordmutual.com www.ovationpayroll.com www.insbanktn.com

www.jmwilson.com www.jjins.com www.keystoneinsgrp.com www.lemicins.com

www.mbgnow.com www.nationalsecuritygroup.com

www.nai1982.com

www.pennnationalinsurance.com

www.meadowbrook.com www.umbrellaprogram.com

www.southandwestern.com www.scui.com

www.summitholdings.com www.tnund.com

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Thank you, agents.

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

2500 21st Avenue South Suite 200 Nashville, TN 37212

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

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

Our agents set us apart.

Business t Surety t Auto t Home

www.PennNationalInsurance.com