2023 October PIA New York by PIA Northeast

October 2023 • New York

Navigate hard market PAGE 18

Let your marketing campaigns educate and build relationships

IN THIS ISSUE 9

Rules of marketing

Selling in the hard market

Online lead generation

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DEPARTMENTS October 2023 • New York

COVER STORY 18 Navigate the hard market

In brief

Legal

Sales

E&O

Ask PIA

Officers and directors directory

Readers’ service and advertising index

Let your marketing campaigns educate and build relationships

FEATURE 25 Drive sales by leading people to your agency Online lead generation

Statements of fact and opinion in PIA Magazine are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the Professional Insurance Agents. Participation in PIA events, activities, and/or publications is available on a nondiscriminatory basis and does not reflect PIA endorsement of the products and/or services. President and CEO Jeff Parmenter, CPCU, ARM; Executive Director Kelly K. Norris, CAE; Communications Director Katherine Morra; Editor-In-Chief Jaye Czupryna; Advertising Sales Representative Kordelia Hutans; Senior Magazine Designer Sue Jacobsen; Communications Department contributors: Athena Cancio, David Cayole, Patricia Corlett and Darel Cramer. Postmaster: Send address changes to: Professional Insurance Agents Magazine, 25 Chamberlain St., Glenmont, NY 12077-0997. “Professional Insurance Agents” (USPS 913-400) is published monthly by PIA Management Services Inc., except for a combined July/August issue. Professional Insurance Agents, 25 Chamberlain St., P.O. Box 997, Glenmont, NY 12077-0997; (518) 434-3111 or toll-free (800) 424-4244; email pia@pia. org; World Wide Web address: pia.org. Periodical postage paid at Glenmont, N.Y., and additional mailing offices. ©2023 Professional Insurance Agents. All rights reserved. No material within this publication may be reproduced—in whole or in part—without the express written consent of the publisher.

COVER DESIGN David Cayole Vol. 67, No. 9 October 2023

IN BRIEF

Your brand, defined When you start a business, you establish a brand automatically. This does not mean that your brand is always right. You don’t need to have the perfect brand from the beginning. Your brand should accurately showcase who you are, what you do, and a little bit about your personality. There are many key features that you must look at before you get to the visual part of your brand, such as your logo and marketing materials. Start by identifying your agency’s position within your market. You’ll also want your brand to tell a story, so spend the time making it meaningful to the customers you need to reach. And, if you need help telling that story, you can contact PIA Design & Print at (800) 424-4244 —we can help you with your branding and marketing needs.

What’s the target market? You must identify your target market accurately so you can build your brand in a way that sells. Take a look at your agency, and figure out who wants to buy from you. Is it young adults with disposable income? Budget-conscious grandparents? When you know who you’re talking to, you’ll know what to say.

Humanize your brand with AI-driven CMS AI-powered systems can enable brands to connect more with their customers and run more efficiently. How can you use AI-driven systems, like content management systems, to humanize your brand? How AI can improve the customer experience. Behavioral analytics tools enable brands to dig deeper to better understand their target customer base, such as their shopping behaviors. Most companies use analytics—but not all companies use AI-powered tools. AI-powered analytics tools are even smarter and better at identifying patterns in data. This can help you analyze more data in shorter amounts of time and get better results, enabling you to provide better customer experiences. What role does AI play in content management systems? When it comes to understanding large pools of data and automating simple tasks, AI is king. And when you use AI for these purposes, you not only can understand more about your customers, but you free up time for them. AI can take care of mundane tasks so your customer service agents can provide assistance with problems that require human interactions. And one such area that can be automated and run more efficiently with AI is your CMS. Content is what drives your marketing efforts, so you can increase awareness and attract more customers, and AI can significantly improve your content quality and output. Specifically, AI-powered CMS can: improve chatbot capabilities; improve content security; help with smart content analysis and categorization; automate image tagging; help scale personalization and predictions; and improve enterprise search functions.

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Keep your video marketing When you build a video marketing campaign, it’s essential to keep everyone in mind. Not every person from your target audience has the same abilities. If you haven’t thought about accessibility in your campaigns before, now is the time to start. When you ensure your campaign works for all people rather than excluding—purposefully or not—certain groups, you’ll experience greater audience growth. It’s essential to create video marketing campaigns that are accessible to neurodivergent people. Fifteen to 20% of the world’s population is neurodiverse, which means they display neurologically atypical patterns of thought or behavior—and videos that are overstimulating can cause members of this important audience to turn away.

Beware: Possible AI pitfalls Before you decide to go all-in with your AIbased approaches in your agency, remember that they have their share of pitfalls, including: AI-driven processes, when relied on too much, can lead to customers feeling like they aren’t being heard by a real person, which can diminish trust; AI-driven tools can lack the emotional intelligence needed to handle sensitive customer concerns; AI-powered systems struggle to understand the nuances of human language and context, which can lead to miscommunication; Overall, too many AI touchpoints can limit your brand’s opportunities for empathetic communication. So, it’s important to provide easy access to human interactions to improve engagement and strengthen customer relationships.

So, what can you do to improve the accessibility of your video marketing campaigns? How can you ensure your content is for your entire audience and encourage interaction, engagement, and more traffic? While most neurodivergent people can live perfectly normal lives, it’s not uncommon for them to struggle with overstimulation or face certain challenges that don’t regularly affect most people. Things like flashing animation or GIFs might seem cool and eye-catching, but they can be difficult for neurodiverse people to process. They might end up turning away from the video because it’s too distracting or overstimulating and they can’t pay attention to the information being given.

Easy accessibility tips for your next video campaign Implement these changes to your video marketing campaigns so they are accessible to everyone: video captions

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transcripts

audio descriptions

FYI

Brand management: Pay more attention to your reputation Doug Coombs, executive vice president and chief marketing officer, SIAA

Branding may not always be top of mind for an agency owner. However, a strong brand can set you apart from the competition, boost profits and raise your profile among potential and existing clients.

tent with your brand values. Work with your chamber of commerce. When attending chamber events, it is not always about selling. The key is to be intentional about your communication.

Tremendous value can result from the right investments in your brand. Consider this scenario: A nonclient in your local community is looking for insurance. The person reaches out to his or her friends and family to find recommendations for agencies to consider. You’re getting a return on your branding investment if your agency is mentioned. You have captured a share of the mind of the people referring to you.

Charitable giving and volunteering. Philanthropy and volunteerism build out a community brand. Does your staff have a passion for the arts? Consider partnering with the local amateur theatre and supporting some of its initiatives. Get involved and volunteer at local soup kitchens or sponsor local school teams.

How can agency owners take control of their brand? As with most decisions, it’s a process that includes conducting a self-assessment, understanding your community, and developing a way to measure your results. Step 1: Assess your brand To develop a strong brand identity, independent agency owners need to determine their goals. What does the agency want to communicate and say to the public? A self-evaluation can help you answer these questions. What are your core values and mission? Your mission will determine the best course of action for representing the brand to the public. What is your style? When your agency communicates, is the language casual or formal in nature? Where do you operate? Are your operations predominantly online or conducted more in person? This will determine how best to allocate your budget between local partnerships or digital work. Who do you want to be? After a self-evaluation, determine what a strong brand looks like. Branding for an agency is about community. A strong brand supports various community organizations, has an online and social-media presence and is a known community figure. Step 2: Understand and build community Once you have established your brand identity, leverage it to build better business and community relationships. Building a reputation in the community as a valuable brand is more than just partnering with a wide range of local businesses and community organizations. It’s critical to partner with those that fit your identity. Leverage business relationships. Working with local businesses expands your reach and this requires consistency. The way you present yourself needs to be consis6

Step 3: Regularly evaluate the brand’s strength These initial steps are not enough to develop a longlasting brand in your community. Brand management is an ongoing exercise. Take the time to evaluate the brand’s strength. Some steps for this include: • Survey clients. Agents should ask for client feedback. • Contact your community. Contract a third party to survey your community. Give it a list of your clients to suppress them from the list and have the third party reach out to other community members. Questions should determine whether you have strong brand recognition within the area. • Look at sales. The easiest way to determine if your brand is successful is through sales data. If your agency is not generating sales, go back to the drawing board or spend resources to find the inconsistencies impeding the team. Ultimately, the goal should be to determine a baseline with the brand. Sales data and data aggregated from clients and community members can provide an agency with a place to start when it comes to brand evaluation. The goal should be to take that starting point and keep growing. When this growth stops, it is time to consider if a rebrand is needed. Get out there Branding is core to growth for independent agencies. While it may be tempting to divert resources to other areas of the business, agents should maintain a consistent focus on assessing and growing their brand. Coombs is the executive vice president and chief marketing officer of SIAA, The Agent Alliance. He can be reached at douglas.coombs@siaa.com. This article is adapted from “Brand management: Pay attention to reputation,” which can be read in its entirety on PIA Northeast News & Media (blog.pia.org).

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Do you know the special rules of marketing? I like rules. When I open a board game, I immediately read the instructions. I’m sure my affinity for the rules lead to my decision to become an attorney. In a conversation with a guidance counselor, I may have said: “You mean my job would be to argue about what the rules are?! That sounds fantastic!” Now, in my current role, not only do I get to argue about what the rules are, but I also have a hand in making the rules too. It’s important to know what you can and can’t do before you start playing. That applies to the insurance industry as well—particularly when it comes to the branding and marketing of your agency. Marketing is essential for any successful agency. However, it’s important to know the special rules that apply to agencies when they are marketing to ensure you don’t go directly to jail (when you land on the space, draw the “Go to Jail” card, or role doubles three times in a row).

Rebating, raffles, referrals … oh my

LEGAL

BRADFORD J. LACHUT, ESQ. Director of government & industry affairs, PIA Northeast

Marketing is about inducing an individual to buy the product you are selling whether it’s a new smartwatch or an insurance policy. Judging by the number of insurance agency branded sunglasses I have, agents are not afraid to market themselves through the use of swag—to use a legal term. It is all about leaving an impression on consumers so that

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they either buy your product immediately, or so that you work your agency’s name into your customers’ brains Inception style—so the next time they think of insurance they think of you. When looking to incept a client, the natural inclination often is to go big or go home. But insurance agents need to be careful how big they go because they will be going home when the state insurance department shuts down the agency for not following the rules. Most states prohibit insurance agencies from providing “anything of value” to clients or potential clients to induce them to purchase a policy. Often, these are referred to as rebating laws. Of course, there is no uniform definition of value from state to state, because what fun would that be? The variation in state law may keep attorneys like me employed, but it can create a lot of headaches for agents who market their agencies in multiple states. Most rebating laws, which are written to be super easy to understand and certainly not just one run-on sentence (add sarcasm here), contain the same essential foundation: Insurance producers, as well as other licensed insurance entities, are prohibited from offering valuable consideration or inducement of any kind in the selling and servicing of an insurance policy. Almost all states have some sort of rebating threshold. If a particular benefit or inducement does not exceed a certain dollar figure it is not considered to be something of value or an inducement. This leaves some ground in which agents can offer nominal inducements to potential clients. However, the question is: What is the rebating threshold? There is no one definition of valuable consideration or inducement, instead each state has its own.

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In the PIA Northeast footprint, New Hampshire and New Jersey maintain a rebating threshold of $100. As long as an inducement is $100 or less, it would not violate state law. However, that figure is $25 for New York state. Connecticut1 and Vermont do not have a statutory rebating threshold, meaning any gift would be considered an inducement. When discussing the rebating threshold, it is important to know that the threshold number is based on the fair market value of the benefit being given. In practice, that means that an agency in New York state could give out $25 worth of scratch-off lottery tickets to anyone who gets a quote, and the agency would not violate the rebating statute even if a person ended up winning $1 million off one of the tickets. However, that same agency could not give out $30 gift cards, which the agency purchased for $25. As the

fair market value ($30), exceeds the statutory rebating threshold. Now there are exceptions to the rebating rule, which have exceptions. There is the raffle corollary.2 Generally, rebating laws do not apply to contests or raffles—if the contest or raffle is open to the public at-large and there is no cost for participants to enter the contest or raffle. If these conditions are met, an agency could give away a Caribbean vacation and not run afoul of the law. Another area in which rebating laws may not apply is referral fees. I say may because there is some nuance here. Generally, most states do not limit the amount any agency can give in referral fees. An agency could decide to give an individual $10 or $1 million for a referral. Both would be legally acceptable, if maybe not a sound business practice.

for which they are being paid a referral fee. They are considered unlicensed in the eyes of the law.

Self-promotion Another area agents need to be careful of is self-promotion. For those unfamiliar with the term, puffery is a fun term used to describe when a good or service is marketed using inflated language. Puffery is distinct from fraud in that puffing statements tend to be matters of opinion, as opposed to statements of fact. Puffery allows the breakfast diner on the corner to advertise its coffee as “the best coffee in the world!” but it would not allow that same diner to claim that its coffee was voted “the best coffee

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However, there are two important exceptions. First, when a referral fee is paid to a client, state rebating laws still apply. So, agents should be careful not to give referral fees to current clients that exceed their state’s rebating threshold. Second, is how referral fees are paid. Generally, state law prohibits the paying of commissions to an unlicensed individual or entity. So, agents who might want to partner with another local business—such as a law firm or real estate agency—for referrals would be prohibited from paying referrals fees as a portion of the commission received. Agents should be aware that the unlicensed rule also applies to other insurance agents. If a property/casualty agent has a referral fee agreement with a life and health agent, they could not split commissions. While both agents are licensed to sell insurance, they are not licensed to sell the particular line of insurance

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in world” by the citizens of the world. The first is a statement of opinion; the second is a purported statement of fact. Opinions vary. Facts need substance behind them. Applying this to insurance: Agents need to be careful of the line between puffery and fraud. While it’s unlikely that an agency would be sued for false advertising, agencies do need to be concerned about errors-and-emissions claims. The things said in advertising can be used later when there is a claim to demonstrate that the insurance agency had an increased responsibility to their client. (For more on duty of care, watch for the December 2023 issue of PIA Magazine). The classic example—and still the easiest one to fall into— is calling yourself an expert in anything. If an agency advertises itself as an expert, then it reasonable to expect its clients to assume the agency is full of experts. Often, this means that agents will be responsible for more than they normally would be in the event of a lawsuit. So, it’s important to watch what you say in advertising.

Takeaways

a scenario in which an uneducated marketing agency might use certain terminology that could lead to E&O issues, or perhaps make a promise of some guarantee that can’t be backed up. It’s important that you have the knowledge, but also that you share that knowledge with those you are working with on your branding and marketing campaigns. Now, I leave you—because I just got a new board game, and I need to read the instructions. Lachut is PIA Northeast’s director of government & industry affairs. While there is no statutory or regulatory rebating threshold, the Connecticut Insurance Department generally does not consider gifts for considerations of $15 or less to be rebating. 1

As with all my articles, I am not trying to scare you—at least not too much. I’m just trying to educate you because the more you know, the better prepared you can be. After all, knowledge is power. Knowing the rules of branding and marketing before you start branding and marketing your agency is critical, so you don’t unintentionally fall victim to one of the issues mentioned in this article. This is especially true if you’re working with outside parties who might not be familiar with insurance and its crystalclear regulatory structure (again, add sarcasm here). It is plausible to imagine

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Looking for a way to sell insurance in a hard market? Lately, I’ve been working with a lot of insurance agents and company representatives regarding selling in the hard market. Although we’ve had some minor hard markets over the years, this is the first real one since the 1990s. Many who are reading this article weren’t even selling insurance back then—and those of you who were in the industry may be a little rusty on selling in a hard market. The first step is to get your head on straight. Begin by setting your mental compass—your North Star. In this case, your North Star is providing service to your customers. Guiding them through the time ahead. You have an obligation to them—to protect them, their families, their assets, and their businesses. You’re in the people business. It’s simple: No people, no business. Next, we need to put ourselves in the best mental state possible, which can be challenging in difficult times. One way to do this is to flip the current situation on its ear and to ask what’s good about it?

The advantages First, higher premiums mean you make more money. As the premiums go up, your business automatically goes up—assuming you keep the accounts. If you can keep them, your business will grow as rates increase. Second, it’s easier to get competitive business because the average agent cuts back during difficult times. Some incumbent agents are afraid to break the news to customers about the price increases, so they avoid the conversation. Other incumbent agents have been taking customers for granted for years, never stopping by to see them, and simply sending out renewals in the mail every year. Third, it’s easier to stand out from other agents. The average agent is going to have a negative attitude about the hard market. So, all you need to do to stand out from other agents is to have a good attitude. People like to do business with positive people. I’m not saying to pretend there is no hard market, no price increases, etc., or not to have those conversations—I’m saying not to be all doom-and-gloom about the situation. Be upbeat and have positive energy when interacting with customers and prospects. Overall, you want to have the contrarian mindset. This applies to life in general. In almost any situation, if the crowd is running in one direction, you want to be running in the other. In this case, have a positive attitude and make more calls when most agents may be more negative and who may be

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making fewer outreach calls. Again, tough markets are a great time to get competitive business.

SALES

JOHN CHAPIN President, Complete Selling

The disadvantages You want to prepare for the disadvantages of the hard market. For example, many customers and companies are focused on their higher premiums, and they are looking elsewhere for the first time in a while. If you’re an incumbent agent—especially if you’ve been taking customers for granted—this is a big disadvantage. On the flip side, this is an advantage for outside agents trying to get into that account. Probably the biggest disadvantage is that most agents have never had to deal with a hard market before, and even those that have, haven’t had to for a long time. So, you must be prepared to explain the current situation and how it occurred, along with answering questions and objections you don’t run into typically. Begin by working on a solid explanation on why rates have increased. Next, prepare for questions such as: “Why are my rates going up when I’ve never had a claim?” “How much are my rates going to increase?” “I’ve heard that the hard market is just another opportunity for insurance companies to make more money. Is that true?”

Also, whether people say it openly, they may be thinking about why they should stay with you versus going elsewhere. Another situation you may run into is one in which a customer can’t afford the price increase, so you’ll want to have some solutions for people who find themselves in that situation. From an objection standpoint, because the primary effect of a hard market is higher prices, you want to get good at answering the price objection—which is a skill you can continue to use after the market softens.

Improved sales skills needed All this will be handled more effectively by improving your sales skills. Great sales skills are the second-best defense against a hard market. What’s the

first? Having solid relationships. If you’ve been working on building strong relationships over the years, the impact of the hard market will be minimal—this includes the relationships with your clients, carriers, underwriters, marketing people, etc. The only issue you might not be able to mitigate is when people can’t afford the price increases. So, if you haven’t honed your sales skills and worked on building relationships, those are two areas you absolutely want to put major focus on right now. Even if you have focused on them, you want to make sure those two areas are strong. If they are, little can negatively impact your business, now and in the future.

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Everything goes in cycles, and this hard market will pass. The faster we can accept the current reality, embrace it, and respond to it, the faster we’ll be able to adapt and deal with the situation at hand. Remember, it can always be worse. Accept it, embrace it, decide how to best respond, take action, and do the best you can.

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Chapin is a motivational sales speaker, coach, and trainer. For his free eBook: 30 Ideas to Double Sales and monthly article, or to have him speak at your next event, go to www.completeselling.com. He has over 35 years of sales experience as a No. 1 sales rep, and he is the author of the 2010 sales book of the year: Sales Encyclopedia (Axiom Book Awards). Reach him at johnchapin@completeselling.com.

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BOBBIE FERNANDEZ, AIS Performance coach, Agency Performance Partners

Navigate hard market Let your marketing campaigns educate and build relationships

rowing up in Southern California with doomsdayprepper parents I was prepared for the “Big One.” My family members slept with shoes next to the bed, and always had rations to hold us—along with the rest of the neighborhood—through a catastrophic event. At the start of the COVID-19 pandemic, we did not have to run to the store for paper towels because mom had enough to tide us all over. It may seem lighthearted, but it did instill in me the need to be prepared. The hard market in the insurance industry is no different, and insurance agents who are coming into this market prepared are winning. This does not mean that all hope is lost for those who are coming into this space unprepared, but now is the time to act.

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This insurance landscape can be overwhelming with daily updates, such as: • carriers tightening on underwriting guidelines • core carriers limiting or ceasing writing business all together • inspection issues • factitious growth due to rate with lagging policies in force • commissions being cut • long lead times for quotes • locating and retaining qualified staff • the integration of technologies into agencies tech stacks The list of pains that agencies are experiencing are the worst they have been in over 75 years. If you are experiencing these challenges in your agency, know that you are not alone. Here are some tools you can implement with your team and help create efficiencies in your agency. We will focus on the following: • building relationships and getting proactive with customers • managing relationships with carriers • driving new business growth For years in our industry, the marketing and sales messaging to the consumer has been save, save and save. We have trained policyholders to look at price rather than the value of the financial protection that insurance provides their families and businesses. For most consumers, insurance is confusing and an independent agent who can walk them through this market with the best interest of their financial future is going to be critical. How can we help? By focusing our marketing campaigns on educating our clients and prospects and building relationships. Get proactive on renewals. Agents who have become proactive and connected with their customers are reporting increased renewal retention on average of 3%. You may say there is no way we can contact everyone and if you don’t have a solid plan on how to implement that process you will frustrate your staff members and your clients. Consistency is key and you must have a plan to track and adjust accordingly. With the right plan on how to execute and track your progress you can do it. Control the message to clients. Use your social media, blogs, drip campaigns, etc., to get your message in front of clients. Share the market conditions with them and tell them what to expect in the coming months and years. This helps clients understand that rate increases are happening everywhere and it’s not personal. This also empowers our front-line staff members to have more educational conversations with clients and to become their trusted insurance advocate in this market. Review accounts and save your remarkets. Now is the time to build those relationships with clients and understand their needs. We need to scrub accounts looking for discounts. Marketing materials should focus on crossselling opportunities, increasing coverages and making sure accounts are sparkly and clean. Often, staff members jump into problem-solving mode and remarkets accounts automatically. We need to ask: “Is this really the right time to remarket, or is this the time to educate and create a solid plan with our client?” Everyone likes a plan. A solid plan creates unification with clients and 20

PROFESSIONAL INSURANCE AGENTS MAGAZINE

stops them from shopping because they know: We got you. Operate on facts and not feelings. Many agents don’t have control of or understand their own data. You cannot operate a business and make good decisions based on feelings. How many times have you heard, “I’m busy!” but when asked what is being worked on there is no real clarity on where the backlog is happening? There are many reasons why agents experience these challenges and often it’s because they don’t know how to access the information from their systems of record, or it’s not being entered correctly by end users. Learn how to access and analyze your data to discover agency gaps. Once you have a true understanding of the data you can make better determinations on agency needs: Do you need to fix a process? Do you need to adopt a new piece of technology into your tech stack? Do you need another team member? The numbers will help make those determinations and it’s critical to understand your agency’s most important metrics and share that information with your staff members, so you are all in alignment. At times we may feel like we are on opposing teams with our carriers but it’s going to be important that we do the best we can to build those relationships and support our carriers during this market. As frustrated as we feel about staff-member burnout and high turnover, our carrier partners are in the same situation. Focus on the end goals: Helping our client and remaining profitable. Working with carriers that have common goals is going to help sustain and continue agency growth. So, how can we be better partners to our carriers? Don’t forget that most carriers have

marketing tools that they share with their agent partners. Scrub accounts for accuracy. Spend time on the front end gathering updated underwriting information and getting accurate information from your client. This solves a lot of the back-and-forth questions and creates a better customer experience as bindable quotes can be turned around quickly. This also protects your agency from errors-and-omissions exposures as you have done your due diligence in gathering all the new and updated information up front and you can be more proactive when remarketing is the only option. Send viable clean submissions. Carriers are going to respond to submissions that are neat and tidy. When it comes to underwriting, we are back in the 1900s. Many of us may remember the days of stacks of Polaroid film, carbon paper, and copies of the underwriting documents. Right now, our carrier partners are suffering record losses and they are looking to write profitable business—just like our agencies. It’s the agents’ job to make sure we are sending good, viable submissions so they know what to work on. Let’s be honest, you probably are having a hard time determining how to triage your time with clients and may be experiencing a backlog. Imagine what your underwriters’ email boxes are looking like when everything has a red flag and is urgent. Create relationships. Creating relationships with our carrier partners can help boost response times. Understanding who to contact, having reliable contact information and forging the relationships will allow your underwriters to understand your submissions and know you are working in unison with them to write profitable business. This can

be challenging as many of the faces at our carrier have changed due to high turnover so this may take some effort. We may find that we are spending time explaining things to our new underwriters. We can choose to be frustrated by this or approach it as an opportunity to mentor our fellow insurance industry professionals and assist our customers too. Provide carrier cheat sheets. Create a cheat sheet of your top agency carriers. This will help your staff members explain the benefits of the policies they are selling during the sales process. Be sure to include any discounts that are available and include amounts/percentages or savings to empower your team to have great conversations with clients and ensure they have offered all the discounts their carrier offers when reviewing their accounts to qualify a remarket opportunity. Your agency marketing representative can be a great resource. Compile this information in one place (e.g., a spreadsheet saved in a shared space) that everyone in the agency can access in real time and identify who and how that information will be updated when new updates come through. This resource will assist our team members to stay on top of carrier enhancements and changes so they can spend more time building relationships with policyholders. Carrier training. Take the time to prepare your team members for carriers that may not be in your current core. With the changing landscape and carrier guidelines being updated—seemingly daily—we need to be prepared. Put those shoes next to your bed now so that if your agency needs to start writing and placing business with a market that your employees are less familiar with it will help them adapt more swiftly. Prepare versus repair.

Drive new business growth Agencies make money in many ways, and we have focused on many of the ways to fuel growth by simply managing existing client relationships. New customers are key to agencies’ success but how can agents cut through the noise and reach new customers? Be open for business. Identify who your agency’s ideal customers are and communicate that information to your staff members to ensure you are targeting the right business. Consider developing targeted marketing campaigns that will allow you to reach these newly identified prospects. Razzle dazzle them. Have a clearly defined mission, vision and values for your agency. Your potential customers want to know why they should work with you. What makes your agency the right choice for them? As an agency leader knowing and understanding this information is not enough. Your employees need to learn how to communicate the benefits of working with your agency clearly, as well as why they are the best choice for that client. What are you going to do that sets you apart from your competition? All too often when working with agencies I hear “provide good customer service” and that’s great but what does that mean? Having clearly defined expectations and outlining those for clients so they understand what to expect has major impacts on their buying decisions. Ask for referrals. Make sure to ask for referrals from your existing clients. Empower your team members with scripts on how to ask for referrals. Role play during team meetings, so they become more comfortable with asking for PIA.ORG

referrals. Be sure to track and share these metrics so you can celebrate wins and show gratitude to customers who help you fuel your agency’s growth. A thank-you message goes a long way, and it keeps your agency’s name in your clients’ minds. Get outside. During the pandemic, many agencies changed their marketing strategies and really leveraged the use of social media and other technology to get in front of potential clients. These are great strategies. However, it seems in doing so we have forgotten that the best way to build new relationships is to meet new people. Focus on expanding your reach outside of those that already connect with you through social media or marketing campaigns. Be an active participant in your community. Take the time and opportunity to build relationships with new centers of influence that will help your agency grow. Meet new potential customers and show them what your agency offers and why you are the best choice for all their insurance needs. Keep promises and be consistent. Being consistent in keeping our promises to new customers is going to be imperative while earning their trust. We can coast a little easier with clients when we have established relationships since we have made deposits in our customer piggy bank, but we need to be consistent and work to build and earn that trust with new customers. This means responding to emails in a timely manner, completing activities in our source system when they come due—these are promises that need to be kept. Trust is earned when value is provided and honoring our commitments goes a long way. New clients will feel the love and allow you opportunities you may not have had otherwise. Meet your customers where they are. Customer profiles are changing, and agents must be adaptable to giving customers ways to interact with them. A marketing campaign that highlights the ways you can work with your clients and their busy schedules can be meaningful. Let them know all the ways you can help them: Do you offer electric fund transfer, so they don’t need to bring in payments or pay more in fees? Do you have user-friendly portals that allow them to issue their own auto ID cards, certificates and evidence of insurance? Do you provide a way for them to complete and sign new business applications digitally? Let them know. Offer a comprehensive account review. Just as recommended with existing clients, offer new clients the ability to have your professional and highly educated staff to do a full account review. This creates an elevated low-pressure

Design+Print (800) 424-4244 | design.print@pia.org | pia.org/design&print

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situation for new clients. It also allows you a big picture look to understand what is happening with all their accounts and the ability to create a full 360 account for your agency. When done thoughtful and professionally you establish great rapport with your customers and give them the feedback they need to make the best buying decisions for their situation. Clients are in desperate need of help right now and they are looking for agents who are responsive, can educate them and who can partner with them to create a plan.

Be prepared, be proactive My mom has a go bag in everyone’s trunk and she instilled in me the importance of being prepared for any situation. Similarly, the hard market in insurance requires agents to be prepared and proactive to succeed and grow. The challenges in this insurance landscape can be daunting, but there are ways to navigate them successfully. It’s time to step up. By implementing some of these strategies and embracing preparedness we can navigate this market and emerge stronger, serving our clients with dedication and expertise. Fernandez has spent her career serving independent insurance agencies. She has worked with and trained remote workforces globally. Additionally, she has assisted agencies to solve their biggest challenges with honesty and fun. Reach her at bobbie@ agencyperformancepartners.com . For more information, log on to www.agencyperformancepartners.com or www.linkedin.com/in/insureyou.

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2270-D-2022

ERIK BUNAES President, Endorphin Digital Marketing ®

Drive sales by leading people to your agency Online lead generation

An important goal of most business leaders, including insurance agents, is driving more sales and keeping sales pipelines full. In the online world, driving abundant online visibility and a flow of new website visitors is an effective, proven strategy to generate new leads and sales. There are strategies and tools insurance agents can use to target and generate new leads from online sources. They employ sophisticated combinations of useful, engaging content, informative websites, consistent email marketing, engaging social media and effective digital advertising.

Intro to lead generation Online lead generation refers to the process of attracting and capturing potential customers or leads with engaging content and special offers via online channels. It involves using digital marketing strategies and tactics to identify and engage with individuals who show an interest in a particular product, service, topic, issue or brand. Online lead generation is important for several reasons:

Business growth. Generating a steady stream of leads is essential for the growth and success of any business. Without a consistent influx of new leads, an agency may struggle to expand its customer base and increase sales. Targeted audience. Online lead generation allows agents to target specific demographics, interests, or behaviors. By focusing on the right audience, independent insurance agents can improve their chances of attracting qualified leads who are more likely to convert into customers. Cost-effective. Compared to traditional marketing methods, online lead generation often offers a more costeffective approach. Digital marketing (e.g., social media, search engine optimization, content marketing, and email marketing) can provide a higher return on investment by reaching a larger audience at a lower cost. Measurable results. Online lead generation enables agents to track and measure their marketing efforts more effectively. With the help of analytics tools, agents can monitor the performance of their campaigns, evaluate conversion rates, and make data-driven decisions to optimize lead generation strategies.

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Relationship building. Online lead generation allows agents to engage with potential customers early in their buyer’s journey. By providing valuable content, personalized experiences, and effective communication, professional insurance agents can build trust, nurture relationships, and increase the likelihood of converting leads into loyal customers. Competitive advantage. In today’s digital landscape, many insurance agents are utilizing online lead generation strategies actively. By adopting effective lead generation techniques, they can gain a competitive edge by reaching potential customers before their competitors do. Overall, online lead generation is important because it helps agents generate a consistent flow of potential customers, improve targeting and cost-effectiveness, measure and optimize marketing efforts, build relationships, and gain a competitive advantage in the digital marketplace.

Use inbound marketing “Inbound marketing aims to attract customers by providing valuable and relevant content or experiences. It’s a form of demand generation designed to draw prospects in, unlike traditional (or outbound marketing), which outwardly pushes a brand, product, or service.”1

Online lead generation is an element of what is referred to as inbound marketing. It is applicable to insurance sales because of several important factors, including:

clients, insurance professionals can educate their clients and steer them to the most appropriate risk-management strategies and products. While the environment in which our customers operate constantly and rapidly evolves, there is a significant need for professional insurance assistance and guidance. This produces an ideal environment for inbound marketing and online lead generation. Target a specific audience with relevant, useful content. Before we explain some specific elements of online lead generation, let’s quickly revisit the trusty sales funnel. The well-known sales funnel helps us envision the process our customers travel when going through the buying process. It includes the four steps of Awareness, Interest, Decision, Action/Sale:

1. Insurance plays a critical component in financial protection against certain risks. 2. There are diverse strategies to address business-risk exposures. 3. The costs of insurance products can be considerable. 4. Insurance products can be complex financial instruments. Due to these important elements of insurance, business owners regularly evaluate financial and business risks, as well as strategies and costs of insurance protection. Where do people turn to get information about complex topics, such as insurance protection? The process of researching and seeking useful information often starts online with Google. This tells us that we should be found online. However, how does this benefit your agency? Here is where we begin with a marketing strategy called inbound marketing.

Draw in prospects Let’s focus on understanding online lead generation using important principles of inbound marketing. Know your customers and the key principles of lead generation. First off, the agents who knows their customers best will win more business over the longer term. With a keen understanding of the exposures and risks facing

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Let’s focus on brand new customers— those at the beginning of the buying process (or top of the funnel, the Awareness stage). We often refer to this group as people we don’t know. An important element of the Awareness stage is that customers are not yet looking for a specific brand, company or even product. They have a question, issue or problem and go online to see what they can find. This is exactly when we want to get found.

United States Keyword

Google

Jul 2022 - Jun 2023

Avg. monthly searches

Three month change

YoY change

–

commercial auto insurance

10K – 100K

commercial auto liability

10 – 100

auto insurance for home cleaning business

Competition

Ad impression share

Competition (indexed value)

–

Medium

–

Low

–

100 – 1K

Medium

–

home cleaning auto insurance

–

home cleaning business auto insurance

–

1K – 10K

Medium

–

commercial auto liability ins commercial auto liability insurance

insurance for cleaning business

Scenario: Our target insurance client is a home cleaning businesses. Consider this scenario: We seek small, home-cleaning businesses (with three to five employees) as potential customers. Let’s further narrow our target to the exposure of these employees driving from location to location throughout the workday. Using this example, there are numerous strategies, using different tools, that can generate this type of lead for an insurance agency successfully. First, let’s briefly review some actual search data from Google showing real search data (see the chart above). The image shows that from July 2022 to June 2023 there were: 1. 10,000-100,000 searches per month for “commercial auto insurance.” 2. 1,000-10,000 searches per month for “insurance for cleaning business.” 3. 100-1,000 searches per month for “commercial auto liability insurance.” 4. 10-100 searches per month for “commercial auto liability.” There is no change for any of these search volumes, meaning search volume is consistent over time. Competition level for these words is low-medium, which is appealing from a marketing perspective. This means we should be able to rank well in search engine results pages for these keywords in a relatively short period of time. Importantly, highly targeted keywords or keyword phrases such as “commercial auto liability insurance” may have fewer searches/month. However, with a highly targeted search like this, there is clearly some intent to learn, discover and potential buy something related to this topic. Therefore, it’s important to remember the lifetime value of a customer. If you gain even a single new customer each week or month, over the typical customer lifecycle, you will enjoy a favorable ROI for your search engine optimization efforts.

Attracting leads Now that we have a target (small cleaning businesses), and the issue/need we will focus on (commercial auto liability), we can create content and messaging PIA.ORG

to draw interest and attention to this business exposure. Here are three common ways to attract brand new customers online (in marketing speak people we don’t know): 1. Search engines 2. Digital advertising 3. Social media If our content and messaging is on target, we will illuminate this potential liability to the point at which the business owner decides he or she must do something about it. What step do we want this business owner to take next? Perhaps we want the person to click the link on the search engine results, advertisement or social post?

Where does the link go? Does the link take the reader to a blog post, article, landing page or website? Wherever you decide where the link takes the visitor there should be a logical, well-defined path leading the visitor through a process of learning about the issue (potential liability) and offering clear next steps to some type of special offer. In this situation, an offer can be anything of value to the customer. It’s not necessarily a deal. Perhaps, 27

there is access to a video, article, checklist or other resource. This offer must be valuable enough that the potential customers will trade their contact information for access.

Promotional campaigns capture new customers and engage (and educate) existing customers (for renewal and cross-selling opportunities).

The use of video at this stage is useful. There is abundant research showing the benefits of using video during this conversion process. Plus, there should be a contact form to collect contact information and perhaps to request—or better yet schedule online—a call or ask questions. This is part of what should be an ongoing, continuous process of email list building by your agency.

5. Analysis: Digital marketing leverages user data, detailed measurement and analysis. With detailed metrics and powerful tools, we can learn a tremendous amount about what is working and what is not with our website visitors.

This special offer process should be designed to take the visitor all the way through a process online to collect contact information, schedule a call, and perhaps connect to someone to facilitate a solution (perhaps a review of coverage or quote for appropriate coverage).

Generating and capturing leads Once you have attracted the attention of a potential customer, how do you take things to the next step? We need the customer to take the first step. This means we need to make the path to conversion as clear as possible and we need to capture contact information wherever possible. This is where email marketing—especially automated email series—comes into play and works beautifully. Did you know? 77% of the ROI of email marketing comes from targeted, automated emails?

Tracking & measuring performance By using the performance data available to us we can track and measure the performance of any online campaign accurately. Using powerful tools such as Google Analytics, Google Search Console and data from emails, ads, social media and videos we can see exactly how the campaign assets are working. We also can use this data to see where we can make improvements to content and creative assets, and identify which avenues are most effective at reaching the best, most-likely-to-buy potential customers.

Improving campaign performance How do you create, manage and improve campaigns over time for clients? Here are the skeletal steps of the process: 1. Website: The website is the central hub of communications and information for customers and prospects. 2. Optimization: Website optimization encompasses having the right and best information easily available, along with getting found by the right people, at the right time. 3. Communications: Customers have alternatives and there is competition. This environment demands excellent, useful communications in different forms and channels. This includes websites, social media, email and video along with many forms of digital advertising. 4. Promotional campaigns: You may offer the best product, but if your customers don’t try it or know about it, you may find success elusive. 28

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After the analysis work in Step No. 5, we return to Step No. 1, and begin this process again to improve website, optimization, communications and promotional campaigns. Critically this is an iterative, ongoing process that will lead to better results and more accurate customer targeting over time.

Conclusion Due to the complexity of risk and insurance protection, customers will continue to seek information and knowledge to help make the best possible decisions. These are important decisions, and smart customers seek advice and guidance. The internet is a valuable source of information and if insurance professionals keep their customers’ needs clearly in focus, they will find eager buyers for their products and services. Bunaes is president of Endorphin® Digital Marketing, a professional speaker/trainer for Constant Contact, and an adjunct professor of marketing at The College of Saint Rose (Albany, N.Y.). Prior to founding Endorphin® Digital Marketing in 2005, He spent more than 13 years in the reinsurance industry at Guy Carpenter and Towers Perrin Re. Connect with Bunaes at www.linkedin.com/in/erikbunaes. Visit www.endorphindigital.com. Constant Contact, 2023 (tinyurl.com/b7v3wntp)

CAPITAL RAP

Thursday, Nov. 2, 2023 Capital Center, Albany, NY

Engage in the cyber, AI conversation Everywhere you turn, cyber insurance dominates conversations. Beyond good cyber security practices, what do insurance professionals need to know? Join us at Capital RAP to find out.

The event will feature: Keynote speaker Gordon Malin President & COO at Elpha Secure Gain invaluable insights into cyber security insurance, empowering you to better serve your clients, enhance their cyber security resilience, and secure their businesses’ digital future.

Education instructor Bradford Lachut, Esq. PIANY’s director of government & industry affairs Prepare for a transformative journey into the heart of cyber security in the AI age with our CE course, Cybersecurity in the AI Age: Judgment Day! Submitted for NYCE credits

Sponsored by ELANY

Trade Show Make connections on the trade-show floor and discover the newest innovations and products for your business.

Networking Reception This is your chance to connect with fellow industry professionals over cocktails— share insights and build relationships that could propel your career forward. Sponsored by XS Brokers

Will you be a part of the evolution? Register today. www.pia.org/capitalrap

PIA’s curated programs for member agencies and brokerages feature carrier selection, flexible coverage, top-notch customer service, and claims assistance when you need it.

Employee Benefits for Insurance Agencies

Let the PIA Members’ Choice group benefits program take care of your agency. x x x x x

Medical Dental/vision LTD with Reliance Standard Term life with Reliance Standard

Get your quote today! (800) 424-4244 | memberservices@pia.org

Declined Coverage Form: A vital marketing, E&O tool The importance of documenting your agency file with all client requests, communications (i.e., telephone, text, email and fax), carrier correspondence, coverage elections, claim notices, etc., cannot be overemphasized. Documentation can take time and effort—so is there an easier way or a method not as disruptive to the sales workflow? While there are no shortcuts to establishing and maintaining an E&O preventative culture within your agency, efficiencies are available. The Declined Coverage Form can serve three vital roles for your producers by providing a means to: 1. Review to ensure that they have covered all of the relevant coverages for the client in a convenient proposal form—which works especially well if working from a line/industry specific risk checklist;

E&O

UTICA NATIONAL INSURANCE GROUP

2. Document for errorsand-omissions prevention purposes by holding clients accountable for their coverage elections; and 3. Market coverages and limits by informing the clients, in writing, as to what is available, which forces them to consider the available coverages and limits, and acknowledge their selection with their signature.

Coaching You Through Compliance and Regulations Compliance advice Online support

Excess Line Association of New York

Advocacy Education Excess Line Association of New York 120 Wall St. 24 Floor, New York, NY

(646) 292-5500 • elany@elany.org

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A sales and marketing opportunity While the first two uses listed previously may be obvious, the third may be less so. Many agents and brokers can see this form mainly as an E&O prevention instrument that they have to complete to limit their risk. However, this misses the enormous marketing and sales opportunity that the Declined Coverage Form offers. This one document puts into context the risks that a particular client faces, plus the coverages and limits available, which may assist in limiting the financial impact of those risks.

Lawyers Professional Liability Coverage If you have law firms as clients, you know they have unique insurance requirements that can’t be covered by a standard general liability policy. We can help you help them. Parsons & Associates has programs designed to help you cover your clients’ unique insurance needs.

For instance, during a conversation, it is much easier for clients to say they do not want cyber security coverage because of what they hear about the risk (which may be vague to them) and the dollar amount associated with the premium (which will impact their bottom line). As a result, the client will be able to easily dismiss it. There is no onus on the clients for their decision at this point. However, more thought is likely to go into the decision if the clients are presented with a menu of options for coverages and limits, if they have time to review and consider their options, and then they are required to sign to decline certain coverages. Agents and brokers who use the form in this marketing context report that clients will call them to ask for more information on coverages that were not initially sought.

Make it easier and faster Having the Declined Coverage Form in an electronic format with e-signature functionality will further streamline your agency’s process, digitalize your documentation— which is helpful for E&O defense purposes—and speed up the process time, as the document will be sent and returned electronically. This is in keeping with the industry trend for faster service with more options. Here’s a claims example:

(800) 440-9932 www.4lawyersinsurance.com

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The agency’s client alleged a special relationship with the insured. The agency had secured coverage for a number of operations for the client, but the agency did not obtain coverage for the operation of a small airport the

client owned. The agency informed the client on numerous occasions that there was a gap in coverage regarding liability coverage for the airport. The agency file was well documented to that effect. An underlying loss occurred—an injury to a plane passenger who is now a quadriplegic as a result of injuries sustained in a plane crash at the airport. The client then claimed because of a longstanding special relationship, the agent had a duty to secure the coverage. While the agent had advised the client of the need to secure coverage, the client claimed confusion. The client and the injured party agreed to a $10 million consent judgment, and the client filed suit against the agent. Other insurance already had paid the injured party $2 million on behalf of the plane owner. The case against the agent was settled for $200,000.

A much greater duty is owed to a client when there is a special relationship between agent and client. When a long-time insured repeatedly ignores advice concerning coverage, have the client sign a rejection-of-coverage letter. The lesson: Using this one tool can help you provide your clients with the relevant coverage options available, which can increase their financial security and your agency’s sales, while also helping to protect your agency from E&O claims for failing to offer the correct coverage or sufficient limits. Utica National Insurance Group and Utica National are trade names for Utica Mutual Insurance Company, its affiliates and subsidiaries. Home Office: New Hartford, NY 13413. This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues. © 2023 Utica Mutual Insurance Company

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Why PIA is the Best Choice for E&O • Our professional liability and cyber liability programs are designed for your agency’s needs and risk exposures • Critical coverage options—especially important when many agents are working remotely • Top-rated, stable E&O carriers • Experience & expertise from our team

Call (800) 424-4244, ext. 408 | Web www.pia.org

Support. Inspire. Adapt. Achieve.

Whether you’re starting from scratch, an existing agency, or making your agency’s big move to independence, we’re here to champion your success. As an SIAA member, you’ll enjoy the flexibility of independence while leveraging the resources of a nationwide community, from cutting-edge technology to training and services to help you adapt to today’s and tomorrow’s marketplace. You’ll also benefit from local mentoring and support. Make the SIAA Move siaa.com info@siaa.com

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Underwritten by the New York State Insurance Fund.

Auto inspections, vacancy vs. unoccupancy and more Rebating–charitable contributions Q. We are considering offering a small donation in the amount of $20 to a children’s charity for every policy written or renewed through our agency. Legally, can we do this without it being considered rebating? A. This would not be considered rebating under the current rebating law. While prior to 2012 the New York State Department of Financial Services interpreted the law as anything given to an insured, or to someone as an “inducement to insurance” had to be $15 or less and be “branded” with an agency’s logo (promotional materials) this is no longer the case. As of changes made to the law in 2012, property/casualty companies, agents and brokers may provide merchandise or other consideration with a value not to exceed $25 during the insurance sales process to an applicant for insurance. So as long as your donation is $25 or less, it would not be considered rebating.—Theo Alexander

Physical damage inspections Q. A policyholder bought a car from a used-car dealer, but she did not have a physical damage inspection within 14 days. Subsequently, an accident occurred, and the company denied collision coverage. The policyholder had her own before and after pictures to show there wasn’t prior damage to the vehicle. Also, isn’t the company supposed to waive the inspection on newly purchased vehicles if the client produces a bill of sale? A. It is possible the denial is justified, but the model year of the auto and the time insured with the same insurer could alter the outcome. There is no option to waive an inspection on newly purchased used autos, unless the insurer elects to waive inspections on: 1. autos older than seven years from the current model year, or 2. when the auto is replacing/adding an auto to a policy that has been continuously in force with the same insurer for two or more years. Also, the optional waiver provision in Regulation 11 NYCRR 67.3, which allows for the submission of the bill of sale in lieu of an inspection is applicable only for new, unused autos purchased, leased or transferred from a new auto dealer. For this reason, an insured should always have an inspection done on a demonstrator auto, even if purchased from a new auto dealer.—Dan Corbin, CPCU, CIC, LUTC PIA.ORG

Vacancy vs. unoccupancy Q. Can you explain the difference between vacancy and unoccupancy? A. Courts have ruled that the terms “vacant” and “unoccupied” are not synonymous. According to precedent [Jelin v. Home Insurance Co.; Herrman v. Adriatic Fire Insurance Co.; Hemenway v. American Casualty Co.; Boyette v. Underwriters at Lloyd’s London], vacant is defined as entirely empty (i.e., lack of animate or inanimate objects), while unoccupied is defined as the lack of habitual presence of human beings (i.e., lack of animate objects).—Dan Corbin, CPCU, CIC, LUTC

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Additional Living Expenses coverage on a seasonal or secondary location Q. How does Additional Living Expense coverage react in the case in which the loss occurs at a seasonal or secondary location? A. Additional Living Expense coverage is designed to recover additional expenses incurred due to the insured’s displacement from the residence damaged by the loss. The insurer will not automatically pay the insured’s limit for this coverage; 37

expenses that exceed normal living expenses would actually have to be incurred. The ISO Homeowners 3 (5/11 edition) states:

expenses incurred by you so that your household can maintain its normal standard of living.

D. Coverage D–Loss Of Use

Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere.

The limit of liability for Coverage D is the total limit for the coverages in 1. Additional Living Expense, 2. Fair Rental Value, and 3. Civil Authority Prohibits Use below. 1. Additional Living Expense If a loss covered under Section I makes that part of the “residence premises” where you reside not fit to live in, we cover any necessary increase in living

13. Publication Title

14. Issue Date for Circulation Data Below

15. Extent and Nature of Circulation

Average No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date

Professional Insurance Agents

September 2023

a. Total Number of Copies (Net press run) (1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser’s proof copies, and exchange copies) b. Paid Circulation (By Mail and Outside the Mail)

(2)

Mailed In-County Paid Subscriptions Stated on PS Form 3541 (Include paid distribution above nominal rate, advertiser’s proof copies, and exchange copies)

(3)

Paid Distribution Outside the Mails Including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid Distribution Outside USPS®

(4)

Paid Distribution by Other Classes of Mail Through the USPS (e.g., First-Class Mail®)

c. Total Paid Distribution [Sum of 15b (1), (2), (3), and (4)] d. Free or (1) Free or Nominal Rate Outside-County Copies included on PS Form 3541 Nominal Rate Distribution (2) Free or Nominal Rate In-County Copies Included on PS Form 3541 (By Mail and Free or Nominal Rate Copies Mailed at Other Classes Through the USPS Outside (3) (e.g., First-Class Mail) the Mail)

16. Electronic Copy Circulation

1803

1740

1638

1587

1638

1587

0 0 0

158

148

e. Total Free or Nominal Rate Distribution (Sum of 15d (1), (2), (3) and (4))

158

148

f. Total Distribution (Sum of 15c and 15e)

1796

1735

1803

1740

91%

g. Copies not Distributed (See Instructions to Publishers #4 (page #3))

h. Total (Sum of 15f and g) i. Percent Paid (15c divided by 15f times 100)

Average No Each Issue Preceding 1

a. Paid Electronic Copies

c. Total Print Distribution (Line 15f) + Paid Electronic Copies (Line 16a)

Free or Nominal Rate Distribution Outside the Mail (Carriers or other means)

If they choose to obtain temporary housing instead of returning to their primary residence, these additional expenses will be covered, subject to the limit and the shortest time needed to make the repairs.

b. Total Paid Print Copies (Line 15c) + Paid Electronic Copies (Line 16a)

(4)

In the case of a seasonal or secondary home, it first must be determined whether the insureds were living there, or if they had plans to live there during the periodStatement of time required to Managem of Ownership, Publications Except Requ make repairs(All to Periodicals the residence.

d. Percent Paid (Both Print & Electronic Copies) (16b divided by 16c Í 100)

I certify that 50% of all my distributed copies (electronic and print) are paid above a nominal price.

However, if the loss occurred off season when the insured typically does not reside there, there would be no need for temporary housing and no additional expenses incurred. An exception could occur if the insured needed to travel to the secondary location to set things in order, hire a contractor, oversee the work being done, etc. In this case, the insured should be allowed to recover these additional living expenses.—Dan Corbin, CPCU, CIC, LUTC

17. Publication of Statement of Ownership

If the publication is a general publication, publication of this statement is required. Will be printed in the ________________________ issue of this publication.

18. Signature and Title of Editor, Publisher, Business Manager, or Owner

I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imp (including civil penalties).

* If you are claiming electronic copies, go to line 16 on page 3. If you are not claiming electronic copies, skip to line 17 on page 3.

DOL overtime– bonuses PS Form 3526, July 2014 (Page 2 of 4)

PS Form

Q. I have an employee who makes $22,000 a year, but he 3526, receives a $3,000 bonus every year in December. Would this employee meet the overtime salary threshold? July 2014 (Page 3 of 4)

PRIVACY NOTICE: See

A. No. Under the Fair Labor Standards Act employees usually must be paid on a salary basis and make over $23,660. Being paid on a salary basis means an employee regularly 38

PROFESSIONAL INSURANCE AGENTS MAGAZINE

receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee’s work. Employers are not able to use nondiscretionary bonuses and incentive payments to satisfy the standard salary level.—Bradford J. Lachut, Esq.

Damage from riots Q. Will damage from riots be covered on a businessowners or property coverage policy? A. Riot insurance coverage will be provided by the most basic peril form. The following perils are covered under the CAUSES OF LOSS–BASIC FORM, which also would be included in the CAUSES OF LOSS–BROAD FORM and the CAUSES OF LOSS–SPECIAL FORM: • fire • lightning • explosion • windstorm or hail • smoke • aircraft or vehicles • riot or civil commotion, including looting occurring at the time and place of a riot or civil commotion [emphasis added] • vandalism

Pennsylvania no-fault Q. Pennsylvania’s personal injury protection benefits appear to be similar to New York state’s in which the PIP benefits follow the car. Please confirm. A. Pennsylvania’s PIP benefits can be found in the following statute: 75 Pa. CS. 1713. Source of benefits. (a) General rule—Except as provided in Section 1714 (relating to ineligible claimants), a person who suffers injury arising out of the maintenance or use of a motor vehicle shall recover first-party benefits against applicable insurance coverage in the following order of priority: 1. For a named insured, the policy on which he is the named insured. 2. For an insured, the policy covering the insured. 3. For the occupants of an insured motor vehicle, the policy on that motor vehicle. 4. For a person who is not the occupant of a motor vehicle, the policy on any motor vehicle involved in the accident. For the purpose of this paragraph, a parked and unoccupied motor vehicle is not a motor vehicle involved in an accident unless it was parked so as to cause unreasonable risk of injury. So, Pennsylvania’s PIP benefits are more like New Jersey’s, in which the primary coverage follows the injured person.—Dan Corbin, CPCU, CIC, LUTC

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• sprinkler leakage • sinkhole collapse • volcanic action There may be limitations for debris removal, pollution cleanup, vacant buildings, outdoor signs and other outdoor property on the premises.— Dan Corbin, CPCU, CIC, LUTC

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Up to 45% savings upfront with up to 35% advance discounts and NYS Assessment deferrals until dividends for first two periods. Retailers

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Retail Group of NY, Workers’ Comp. Safety Group #544*

Wholesale Group of NY, Workers’ Comp. Safety Group #551*

Restaurant Group of NY, Workers’ Comp. Safety Group #556*

Hotel Group of NY, Workers’ Comp. Safety Group #578*

Oil Dealer Group of NY, Workers’ Comp. Safety Group #582*

Social and Health Services Group of NY, Workers’ Comp. Safety Group #585*

Residential Care Group of NY, Workers’ Comp. Safety Group #586*

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2021-22 2020-21 2019-20

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35%** 27.5%** 27.5%**

31% average dividend since inception in 1993

40%** 35%* 35%*

36% average dividend since inception in 1993

35%** 25%* 30%*

20% average dividend since inception in 2006

35%** 35%* 30%*

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35%** 25%* 20%*

19% average dividend since inception in 2011

35%** 30%** 25%*

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*5% applied to increase the renewal advance discount. **10% applied to increase the renewal advance discount.

Fees paid to 560 Brokers

Online Video: www.friedlandergroup.com Retail

2003 Bakeries 7998 Hardware Store 8001 Florist Store 8006 Food/Fruit/Deli/Grocery 8008 Clothing/Shoe/Dry Goods 8013 Jewelry Store 8016 Quick Printing 8017 Retail (Not Classified) 8031 Meat/Fish/Poultry Store 8033 Supermarkets 8039 Department Store 8043 Retail (including Food) 8044 Furniture Store 8046 Auto Accessories 8072 Book/Music Store 8105 Leather Store 8382 Self serve gas w/conv. store Residential Care Facilities

8864 Developmental Organizations 8865 Residential Care Facility 9063 Senior Citizen Centers

Hotel/Motel

9052 Hotels NOC 9058 Restaurants in Hotels

Wholesale 4310 Greeting Card Dealer 7390 Beer/Ale Dealer 7999 Hardware Store 8018 Wholesale Store/NOC 8021 Meat, Fish Dealer-Wholesale 8032 Dry Goods, Clothing, Shoe 8047 Drug Store 8048 Fruit & Vegetables 8111 Plumbers Supplies Dealer-Wholesale Restaurant

9061 Clubs 9071 Full Service Restaurants 9072 Fast Food Restaurants– Including Drivers 9074 Bars & Taverns Social and Health Services

8854 Home Health Care – Prof. Employees 9051 Home Health Care – Non Prof. Employees 8857 Counseling – Social Work – Traveling Oil and Gas Dealer

5193 Oil Burner Installation 8350 Fuel Oil & Gas Dealer 8353 Gas Dealers, LPG & Drivers

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The Workers’ Compensation Leader Call Cosmo Preiato at (800)394-7004 ext. 203 Fax: (914)694-6004 e-mail: cosmop@friedlandergroup.com 2500 Westchester Avenue, Suite 400A Purchase, New York 10577 www.friedlandergroup.com Safety and Workers’ Compensation Strategies To Unleash Productivity and Profits Featuring insightful interviews with experts, including Paul O’Neill, the 72nd Secretary of the U.S. Treasury by Adam Friedlander, now on Amazon https://safetyandworkerscomp.com/