2015 Fall Edition of the PIA of Tennessee Magazine

Fall 2015 • Tennessee edition

Page 16

BE outstanding in your fiEld MOO-ve ahead of your competition

salEs and MarkEting 05

411, sales and marketing

09

Social-media marketing

19

Annual Convention And more ‌

Now In More States MidSouth Mutual provides regional Workers’ Compensation insurance to customers in 7 states including Tennessee, Kentucky, Arkansas, Mississippi, Alabama, Georgia and North Carolina.

Examples of clients we serve include: HVAC Contractors

Bricklayers

Carpenters

Masonry

Building Suppliers

Electricians

Framers

Insulation

Dozing Services

Plumbers

Dry Wallers

Cabinetry

Road Contractors

Painters

Landscapers

Flooring

Thank You to all the independent agencies representing MidSouth Mutual. We look forward to a great 2015 working with you.

States we serve:

www.midsouthmutual.com Contact Tom Perez at tom.perez@bwood.com or 615-379-8245 Administered by Brentwood Services Administrators, Inc. Proudly serving the members of the Home Builders Association of Tennessee since 1995.

Departments 04 In brief Fall 2015 • Tennessee edition

09 Sales 13 Legal 21

Learn

26 Readers’ service and advertising index 27 Officers and directors directory

Cover story 16 Be outstanding in your field MOO-ve ahead of your competition

Feature 19 Annual Convention takes Nashville by storm Event covers three days of golf, networking and education

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 of PIA Management Services Inc. Mark LaLonde, CPIA, CIC, AAI; Executive Director Kelly K. Norris, CAE; Communication Director Mary E. Christiano; Senior Magazine Designer Sue Jacobsen; Member Information Manager Jaye Czupryna.

Postmaster: Send address changes to: Professional Insurance Agents of Tennessee, 504 Autum Springs Court, Suite A-2, Franklin, TN 37067.

“Professional Insurance Agents” is published quarterly by PIA Management Services Inc. PIA Management Services, 25 Chamberlain St., P.O. Box 997, Glenmont, NY 12077-0997; (518) 434-3111 or toll-free (800) 424-4244; email pia@pia.org. ©2015 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 Roberta Lawrence Vol. 59, No. 8, September 2015

In brief

Five minutes with …

C.J. Hutsenpiller, Hutsenpiller Insurance Services Tell us about yourself.

I am 27 years old who lives in Lebanon, Tenn., with my wife Shea, three border collies, a Chihuahua and several horses. #farmlife

How can an agent generate sales leads?

I am a firm believer in referral business.

Going out and meeting people who can help you is critical. Mortgage companies, title companies and realtors always are great, but as an independent agent, I also like to target other local captive agents.

Captive agents have actually become my No. 1 referral source.

You’re an Agent of the Year award recipient. How did you get to where you are today?

I have been blessed to grow up inside an insurance office—literally. There is a past Agent of the Year recipient who I call “Mom,” so her guidance has helped me tremendously. I also have an incredibly supportive family, including my wife Shea, who also works at the agency and supports me on a daily basis!

How do you get clients to think beyond price?

C.J. Hutsenpiller new business manager Price shoppers are tough because there is Hutsenpiller Insurance always an agent out there who will cut a Services, corner somewhere and make an insurance Mt. Juliet, Tenn. policy a little cheaper. This applies not only on new business, but on renewals, too. I take the You teach social-media marketing. What’s approach of being the easiest agent they can find with your favorite part of teaching? which to work. I also try to give them more “bells and My favorite part of teaching social media is showing whistles,” such as setting up the policy with electronic people that it is an easy, cost effective way to reach new fund transfer to help retain those customers. clients. I like showing them that online networking via social media is just as important as the “boots on the ground” networking that is done traditionally.

What is the secret to successful sales?

It’s not really a secret, but the secret to success is hard work. Being willing to go the extra mile is critical in both of those elements of the insurance business.

Do you have any good stories?

My favorite story just goes to show you the power of making friends with local captive agents. I had an agent refer two boys, who had just purchased a car, to my agency.

They had just gotten their driver’s licenses in the U.S. and the captive agent could not write an insurance policy for them. But, my agency was able to write the insurance policy. And, why were the “boys” recently licensed to drive in the U.S.? They had been living in Sweden and the Nashville Predators had just drafted them.

Anything else?

If you spend more time finding ways to help others and stop worrying so much about sales goals the law of reciprocity always will take care of you and you’ll find those goals take care of themselves.

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Professional Insurance Agents magazine

By the numBers

The 411 on sales and marketing alignment Sales and marketing plans encompass traditional print media and socialmedia strategies. How important are these plans to your agency’s bottom line?

Consider the following effects of sales-marketing alignment (or misalignment):

Percent change in … +32

… annual growth of companies with strong sales-marketing alignment1

-7

… annual growth of companies with weak sales-marketing alignment1

-41

… the cost per lead with content marketing vs. traditional marketing (large) 2

-31

… the cost per lead with content marketing vs. traditional marketing (small/mid-size) 2

+50

… the number of sales-ready leads at companies that excel at “lead nurturing”3

-33

… the cost per sales-ready lead at companies that excel at “lead nurturing”3

-100

0

+100

Call to action

65

%

Percent of sales reps, who say they can’t find content to send to prospects— the most common complaint cited by sales teams4

s •e •r •v •i •c •e •s

writes, designs and produces original and on-target promotion, building on a fundamental understanding of the insurance industry.

• Content is the heart of any marketing strategy.

• PIA has the content you need.

• Think PIA first the next time you need marketing materials.

Email creativeservices@pia.org or call (800) 424-4244.

1. Aberdeen Group, 2013 2. Kapost, 2012 3. Forrester Research, 2011 4. Kapost, 2014 www.piATN.com

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Association news

CPIA classes are coming your way PIA of Tennessee is the exclusive sponsor of the Certified Professional Insurance Agent professional designation program in Tennessee. Comprised of three one-day “Insurance Success Seminars,” the classes teach practical before-, during- and after-the-sale techniques for producers, sales managers, account managers and company marketing representatives.

The CPIA designation is earned after completing the three seminars and is maintained by completing an update class every two years. CPIA 1 and 2 are approved for seven hours of Tennessee continuing-education credit; CPIA 3 is approved for eight hours of CE credit, and each class

satisfies Tennessee’s requirement of three hours of ethics education. Also, Utica Mutual offers up to a 5 percent premium credit on errors-andomissions loss-prevention credit for attendance at CPIA education.

CPIA classes are now on the road and will be hosted in a city near you! The next classes coming up will be CPIA 1 on Wednesday, Sept. 9, in Memphis; CPIA 2 on Wednesday, Oct. 14, in Knoxville; CPIA 3 on Thursday, Nov. 12, in Chattanooga. These classes will be taught

by Tina Hutsenpiller, CPIA, a previous PIA president and Agent of the Year. Registration for these classes can be found at piatn.com.

news to use

PIA research: CL customers prefer independent agents Extensive nationwide research conducted by the agencycompany council of the PIA National has found that small business owners strongly prefer independent insurance agents as they make choices in today’s online world, but agents must take steps to continue to demonstrate their value and be more engaged online, according to the “Small Business Insurance & The Internet—The Voice of the Commercial Lines Customer” project.

business insurance decision-makers. The attributes that are most important to small businesses when it comes to their insurance are those offered by independent agents.

These include: belief in the person or company; having a person who understands my business; quick service response; personal attention; and providing me with confidence that I am making the right insurance decisions.

The research project included qualitative focus group research, involving business owners and insurance decision-makers, conducted in multiple cities by research consulting firm The Pert Group; and quantitative research involving an online panel provided by Survey Sampling International LLC, consisting of a random national sampling of 1,000 SBOs with companies of 50 employees or less.

Among other findings:

Agents the clear choice The research by PIA and The PIA Partnership also found that what is evolving over time is how some customers would like to see what they value delivered when it comes to their insurance in today’s online business environment.

This presents new opportunities for independent agents in how they reach and serve their customers.

The research found that choosing a professional independent agent continues to be the clear preference for small

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• In order to be competitive, independent agents must have a full, credible online presence.

• Small business owners most value agents with professional, industry-specific knowledge.

• Most small business owners who shop insurance online still lack confidence in themselves to make ideal insurance choices, and they want help.

• Agents need to sell their value. Without more frequent demonstration of value, alternatives like bypassing the agent by going online will encroach further.

The research showed that even when the insurance process starts online, small business owners still want to depend on an agent to check and confirm, as well as validate and question assumptions.

Professional Insurance Agents magazine

Acquisition Strategy

#15

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12/19/14 4:43 PM

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Automate social-media marketing Automation plays a significant role in our lives. Of course, much of it is technology based. Moreover, it is a central driver within our professional, independent insurance agencies. It helps agency owners and employees work smarter. Done right, it saves us time and money.

Where many agencies fall short is in the use of automation for social-media marketing. Such automation brings efficiencies. The balance is how to automate a social-media presence and remain engaged in a conversation with your audience. Remember, social-media marketing does not begin and end with automation.

Social-media marketing automation can schedule posts for specific days and times. However, you need to be engaged in the process from start to finish. Using tools won’t eliminate work; it simply helps you operate more

efficiently—reducing what could be several hours of work each day to as little as 30 minutes—and it helps ensure a profitable online marketing outcome.

sales

CHris Paradiso, CPIA Owner of Paradiso Financial & Insurance Services

To build and implement an efficient and productive social-media marketing process, you need to combine the ingredients—personal brand ambassadorship and effective automation deployment—and then check progress. Here are four steps

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www.piaTN.com

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to make automation-enabled socialmedia marketing easier: Step 1: Automate or not?

It’s vital to understand when and what to automate and when to engage in the world of social media.

Automation can be addicting. Once you unlock efficiencies in a social area, it’s tempting to add more.

Resist that temptation. Do not automate every message.

Progressive learned that lesson a few years ago when it automated Twitter responses after a claims story went viral (CNN.com, “Progressive RoboTweets Spark Social-Media Crisis”).

Instead, automate non-urgent social posts. Start with content you’ve discovered and gathered from various sources. Finding and sharing content online is a great way to build your agency’s brand and to grow

Sometimes, it’s what’s underneath that counts ®

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E&O Options PIA has access to numerous E&O programs, so we can offer you a choice of underlying E&O coverage. Combine this with our agents’ umbrella’s excess E&O coverage, and you can get more coverage — and more value — for your money.

The PIA/Penn National Insurance agents’ umbrella offers: ■ Excess limits on a followingform basis for E&O ■ Business operations: Auto, Liability ■ Optional personal umbrella coverage ■ Optional EPL

For details, contact your local PIA affiliate or PIA National at 800.742.6900 x 382 or visit the PIA Main Street Store at www.PIANET.com

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Professional Insurance Agents magazine

your social audience. Content from others should make up about half of your content posts.

Follow the “5-3-2” rule. The “5” refers to the number of posts out of every 10 that are from others and share with the relevant audience. The “3” refers to relevant business content generated by your agency. The remaining “2” should be personal, nonwork-related content that helps humanize the agency and builds its brand among your relevant audience.

Notice how the term “relevant” appeared repeatedly in the previous paragraph. You need to post content on platforms that will reach the right audience and with the right content at the appropriate times.

If your audience comments on a post, you need to engage with it. Nobody likes to be ignored. In fact, when you ignore someone in the social world, your entire platform community sees your lack of response. This can lead quickly to you earning the reputation of rude and socially unacceptable.

Many businesses, including insurance agencies, want to automate their RSS feeds. Bloggers often want to share their latest posts in the social world. Automation is a helpful tool with this—allowing you to transmit blogs directly to selected socialmedia channels. The only catch is that you want to check formatting on every blog post.

It’s important to be aware of, and respond to, feedback with RSS content, just as it is with other messages you share. Blind blasting— creating a one-way conversation— screams automation and it is a major audience turn-off in the social world.

Do not automate customer interaction. Automating more than an

acknowledgment or a simple “thank you” is dangerous. Customers appreciate individual responses on social platforms. In fact, this personal interaction is what makes social so powerful. You should never take the human side out of social media.

Do not automate troubleshooting.

Real situations require real people with real answers. There may be opportunities to streamline some agency communication—common problems are fixed with simple answers. Even then, it’s best to run it by a human first.

Searching “social-media automation tools” in your web browser will return hundreds of options. Explore them. Be sure to look at Hootsuite, Buffer and any others that seem appropriate to you. When you make your choice, be sure to look for a tool that’s easy to use and that can be implemented with a short learning curve.

Step 3: Establish a schedule.

You need to figure out your agency’s ideal automation schedule. Perhaps the most important question to ask is: “When will I be around to respond to my audience if and when it engages with my content?”

Because two-way interaction is integral to success on social platforms, you want to be able to see and

Step 2: Pick a tool.

It’s important to choose the right automation for your agency’s social marketing. The two most popular sharing tools are Buffer and Hootsuite. The tool integrates with Facebook, Twitter, Google+, LinkedIn and more. It also integrates with RSS readers.

With Buffer, you can place the social content you find into a queue and generate agency posts throughout the week. By default, Buffer spaces posts out throughout the day and throughout the week. At the same time, it allows a user to get ultraspecific on the day and time of the posts.

AMERISAFE successes in TENNESSEE Workers’ Comp for Working People

The tool comes with various features to help make updates easier. For instance, there are browser extensions to share content right from within a web page. There also are tablet and smartphone applications to share content from those devices in a few simple steps.

An important feature in Buffer— and others tools—is an analytics dashboard. When you use it you can see what posts are read, clicked, liked, shared, commented on, etc.

Knowing this information can help you build even stronger content going forward. www.piaTN.com

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respond to activity of your followers.

Don’t forget time differences; if your agency operates in multiple time zones, consider what effect that will have on your posts’ exposure.

In addition, you need to understand when people click on, or otherwise interact, with your posts. This helps you gauge high-engagement times and allows you to schedule future posts when more people will see and connect with your content. There are a number of tools to help you analyze when people engage with your tweets (e.g., Followerwonk, Tweriod and SocialBro).

Step 4: Engage, learn and improve.

Sustaining a social-media marketing strategy requires a system to allow you to stay in the conversation, such as Mention, which leverages Google Alerts, to track your agency’s website; the names of your agents; your blogs and other content across all socialmedia channels.

Like Google Alerts, Mention emails you when your agency or anything you track receives a mention in the

social world. You also can access the service from any device and monitor—in real time—anything published on social networks, news sites, forums, blogs or any other web pages.

Don’t forget to turn on all socialplatform notifications to be aware of engagement opportunities. Twitter, Facebook and other channels will notify you anytime anything happens with your accounts.

Another part of engagement is time.

Be sure your agency sets aside time to interact. Social-media conversations represent a great way to unearth new business opportunities and to build relationships with existing customers, which helps at renewal time.

Then, use what you learn to enhance what you’re doing. Adapt to what the data tells you. Bolster your content based on response from your audience. Shift your timing, if needed.

Then, monitor and repeat the enhancement process.

Online Education

• Pre-Licensing • Training and Education for the New Employee • Continuing Education from CEU.com

www.piatn.com/education Education at your convenience

www.piatn.com/education For more information, call Pam Cass, CPIA, at 800-875-7428

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Professional Insurance Agents magazine

Make it work Following this process will help your agency save time and money on your social-media marketing strategy.

As you implement these steps, it’s important to avoid pitfalls of automation.

First, don’t take a one-size-fits-all approach. Make sure you customize your messages for different social networks. Recognize the difference between business-to-business and business-to-consumer platforms and drive content accordingly.

Second, don’t make timeline mistakes. Scheduling posts too far out may lead to you sharing untimely content or, worse yet, missing opportunities for timely engagement.

Finally, don’t assume the social world starts and ends in your agency. Stay updated on current events, and take opportunities to leverage them in all of your social content and with all of your audiences.

By taking the right steps—and avoiding certain missteps—you’ll see increased activity, more business and a greater return on your socialmedia marketing investment.

Paradiso is owner of Paradiso Financial & Insurance Services in Stafford Springs, Conn., which received the National Association of Professional Insurance Agents 2013 Excellence in Social Media Award. He formed Paradiso Presents LLC, to teach agencies how to survive in today’s complex online marketing world. The firm specializes in educating agents, carriers and associations in America on a range of branding, online, social and management strategies. For more information and to learn about upcoming seminars, visit www.ParadisoPresents.com.

An insurance policy isn’t a commodity, it’s a contract Most people don’t think of insurance when they think of contracts, but they should look at their insurance policy as something that falls into the contract category. That’s because insurance policies work in much the same way contracts do. In purely legal terms, “a contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.”

[Restatement 2nd of Contracts, Section 1] A policyholder is giving consideration (i.e., premium payments) and getting something in return (i.e., coverage). But, it’s really more than that. There are additional promises and obligations made on both sides. Some people see insurance as one-sided, like purchasing a product. If they do, they are missing important additional contractual obligations. In exchange for payment of a premium and observance of certain conditions stated in the policy, the insur-

ance company agrees to pay money in the event of a loss.

So, an insurance policy is a legal contract between the insurance company (i.e., the insurer) and the person(s), business or entity being insured (i.e., the insured). Reading the policy helps to verify that the policy meets the policyholder’s needs and that the policyholder understands his or her responsibilities and the insurance company’s responsibilities if a loss occurs. Many

legal

matthew f. guilbault, esq.

PIA Management Services Inc.’s director of Government & Industry Affairs

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Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable.

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insureds purchase a policy without understanding what is covered; the exclusions that take away coverage; and the conditions that must be met in order for coverage to apply when a loss occurs. Professional, independent insurance agents can help alleviate this misunderstanding by reviewing insurance policies with their insureds. This practice can help avoid problems and disagreements with an insurance company in the event of a loss.

There are as many different types of insurance contracts as there are types of insurance. For example, the provisions in an auto insurance policy are different from the provisions in a long-term care insurance contract.

In some ways, comparing insurance contracts is like comparing apples with oranges. Nevertheless, insurance policies all share certain common elements. Once you help your insureds understand the basics of insurance contracts, they should be able to make some sense of all their insurance policies—no matter the type.

The basic contract There are four basic parts to an insurance contract: the Declaration Page, the Insuring Agreement, Exclusions and Conditions. However, make sure your insureds do not mistake basic for uncomplicated. It is important that they understand multiperil policies may have specific exclusions and conditions for each type of coverage (e.g., collision coverage, medical payment coverage, liability coverage, etc.). Here are the basic definitions you can use to inform your clients about their insurance policies: The Declaration Page usually is the first part of an insurance policy. It

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identifies: who is an insured; what risks or property are covered; the policy limits; and the policy period (i.e., time the policy is in force). For example, the Declarations Page of an automobile policy will include the description of the vehicle covered (e.g. make/model, VIN, etc.); the name of the person covered; the premium amount; and the deductible (i.e., the amount your insured will have to pay for a claim before an insurer pays its portion of a covered claim).

The Insuring Agreement summarizes the major promises of the insurance company, and states what is covered by the insurance policy. It is a general statement of promises the insurance company makes to the insured.

In the Insuring Agreement, the insurer agrees to do certain things such as: paying losses for covered perils; providing certain services; or agreeing to defend the insured in a liability lawsuit. There are two basic forms of an insuring agreement: named-perils coverage, under which only those perils specifically listed in the policy are covered. If the peril is not listed, it is not covered, and all-risk coverage, under which all losses are covered except those losses specifically excluded. If the loss is not excluded, then it is covered.

The Exclusions section of an insurance policy takes coverage away from the Insuring Agreement. The three major types of Exclusions are: excluded perils or causes of loss; excluded losses; and excluded property. Typical examples of excluded perils under a homeowners policy are flood, earthquake and nuclear radiation. A typical example of an excluded loss under an automobile policy is damage due to wear and tear. Examples of excluded property under a homeowners policy are

Professional Insurance Agents magazine

personal property such as an automobile, a pet or an airplane.

The Conditions section of an insurance policy allows provisions to be inserted in the policy to qualify or place limitations on the insurer’s promise to pay or perform. This section primarily transforms an insurance policy from a commodity to a contract. If the policy conditions are not met, the insurer can deny the claim. Common conditions in a policy include: the requirement to file a proof of loss with the company; to protect property after a loss; and to cooperate during the company’s investigation or defense of a liability lawsuit.

Finally, an insurer may change the language or coverage of a policy at the time of the policy renewal. Endorsements and Riders are written provisions that add to, delete or modify the provisions in the original insurance contract. In most states, the insurer is required to send the insured a copy of the changes to his or her insurance policy. It is important that you make sure your insureds read all Endorsements or Riders so they understand how their policies have changed and if they still meet their needs.

You need to help your insureds understand that they have an obligation not to mislead the insurance company about their vehicle; where it’s commonly parked; or any preexisiting damage. If they mislead the insurance company, they can get into trouble and even lose coverage through breach of contract, which can cause the insurance company to drop their policies.

Remember, it’s important to stress to your insureds: Honesty is the best policy when they enter into any agreement with an insurance company, no matter what they choose to call that agreement.

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Be outstanding in your field MOO-ve ahead of your competition

T

he professional, independent agent’s competition is everywhere. Captive agents, direct writers, banks and even big-box stores try to offer consumers insurance products. But, as you know, independent agents offer clients a choice and know their customers to help them get the insurance coverage they need. So, how does an independent agent successfully get through the clutter of the insurance options consumers are offered every day?

PIA asked its member Britt Linder, executive vice president, Peterson Insurance Agency, Bartlett, Tenn., to discuss his agency’s sales and marketing techniques.

Tell us about your agency.

Peterson Insurance was founded in 1955 by Hugh M. Peterson Sr. We are a family-owned and operated fullservice property/casualty insurance agency. Currently, we serve the insurance needs of about 3,000 families and businesses in the Memphis, Shelby County and greater Mid-South area.

Our staff of 11 employees is dedicated to working for our clients to ensure they have adequate protection.

We work on their side to ensure fair and prompt claim payment in the event of a loss.

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We represent a carefully selected group of financially sound, reputable insurance companies, therefore, we are able to offer the best coverage at a competitive price.

Does your agency have a plan to compete?

We are aware of the hurdles that direct writers represent. We try to emphasize that we know insurance, not Google. We do this by crafting personalized coverage at a good price. We also utilize radio advertising and a relationship with Dave Ramsey, a personal moneymanagement expert and national radio personality (The Dave Ramsey Show), to get our message to the consumer. Finally, we ask our clients to make sure their friends and families know who we are. If we provide a great experience to our current clients, we should be able to do the same for those they know and love.

What is the focus of your marketing plan?

We try to develop our marketing plans to mirror what we do best. We are relationship builders and we try to reach and target those prospects who value that type of relationship.

Professional Insurance Agents magazine

bekah Hutsenpiller PIA’s marketing & communications coordinator

What are the biggest challenges?

Our biggest challenge is the same as most agencies—cost. Getting the message out about who you are and what you do is not cheap. We try to target a small demographic that aligns with our business model. In doing so, we hope to maximize our return on investment.

Tell us about a success story.

Dave Ramsey has been super for our agency. We became an Endorsed Local Provider with Dave Ramsey as his message mirrors our business philosophy. His listeners are financially savvy and value personal relationships. This fits perfectly with our agencies structure.

Anything else?

Keep at it! If one strategy doesn’t work, try another. Find what works for you and makes you feel good about your chosen profession. Find a great mentor. He or she will be invaluable in helping you grow as both an agent and a business. PIA is great for introducing you to someone who can be your mentor.

Hutsenpiller is PIA’s marketing & communications coordinator.

www.piaTN.com

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PIA Tennessee 7.5x10 Date.pdf

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bekah Hutsenpiller PIA’s marketing & communications coordinator

Annual Convention takes Nashville by storm Event offers three days of golf, networking and education

The Omni Hotel, located in the growing metropolis of beautiful Downtown Nashville, was the host of the Professional Insurance Agents of Tennessee’s 2015 Annual Convention July 27-29. The three days were packed with educational and networking opportunities for all who attended the event. Day One started with a choice between two activities: a CPIA 3 class taught by PIA of Tennessee past President Tina Hutsenpiller, CPIA; or the golf tournament at Vanderbilt Legends Golf Course. After the conclusion of these events, registration for the Annual Convention officially began.

Following registration, PIA of Tennessee honored its Platinum Partners during our Partnership Reception.

Attendees had the opportunity to meet with these partners and enjoy hors d’oeuvres.

After the Partnership Reception, the Tennessee Insurance Political Action Committee Fundraiser took place on the rooftop of the George Jones Museum that overlooked the Cumberland River and Nissan Stadium, which offered a stunning view. The fundraiser offered participants the opportunity to network and a chance to tour the museum.

Speakers abound Day Two started with breakfast, the annual business meeting and a board meeting. The General Session opened with its first speaker, PIA National’s Director of Federal Affairs Jon Gentile. He discussed PIA National’s recent advocacy efforts on behalf of its members. Later, Assistant Commissioner for Insurance at the Tennessee Department of Commerce and Insurance Michael Humphreys discussed agents concerns with ride-hailing companies,

Your PIATN board of directors for 2015-16, from L to R: Taylor, Mills, Keisling, Richards, Tansil, Gernt, Montgomery, Kerr, Pearson, Lima-Montgomery, PIATN Executive Vice President Jeff Anderson, CPIA, Puckett and Augustine.

such as Uber and Lyft. He also addressed the new James Lee Atwood Jr. Law located in Tennessee.

Tools to help your agency The Annual Convention also featured a members’ benefits presentation to highlight the many benefits PIA of Tennessee has to offer its members. Steve Lewis, president and founder of Crossroads Consulting, presented his “8 Road Blocks to Growing Your Agency.” He also led the final General Session to conclude the Annual Convention. To find out what Lewis can offer your agency, visit crossroadsconsultant.com.

Fifty-eight companies came to exhibit their products and services to PIA members during the trade show.

Awards and new president The Awards Dinner took place during the second evening.

During this event, the Agent of the Year and Company Representative of the Year awards were presented to C.J.

www.piaTN.com

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Keynote Speaker, Steve Lewis, presenting his “8 Road Blocks to Growing Your Agency.”

PIATN President Kerr (center) presents C.J. Hutsenpiller (left) and Jonathan Washburn (right) with their respective awards.

Gainsco Auto Insurance vendor booth at the annual Trade Show.

Tennessee Insurance Political Action Committee Fundraiser on the George Jones Museum Rooftop.

Hutsenpiller of Hutsenpiller Insurance Services, and Jonathan Washburn of Erie Insurance, respectively.

Joe Kerr, CIC, CPIA, of Kerr Insurance Services was installed as PIA of Tennessee’s president for 2015-16.

During his installation, he thanked PIA of Tennessee’s immediate past President John Keisling, CPIA, CISR, for his hard work. PIA of Tennessee’s officers for 2015-16 include President-elect Bill Richards, CPIA, LUTFC; Vice President Greg Augustine, CPIA; Secretary Herbert Montgomery; and Treasurer Chris Mills, CPCU, CIC. June Taylor, CIC, CPIA, CPIW, DAE, was reinstalled as national director.

Newly installed Adam Cox, CPIA; Mike Tansil and Mike Morat join Llew Boyd; Anna Lima-Montgomery, CPIA; Jeff Pucket; Dedric Pearson, CPIA; and Tom Gernt, CPIA, on the board of directors.

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Agents and partners networking on the first night of the convention.

See you next year The Annual Convention went off without a hitch and planning for next year’s event already is well underway.

The PIA of Tennessee is excited to take the next Convention to the scenic Chattanooga in East Tennessee. We hope to see you there!

Hutsenpiller is PIA’s marketing & communications coordinator.

Professional Insurance Agents magazine

Political contribution risk management We live in a world with important (and often controversial), political issues. It is impossible to turn on the television, read a newspaper or go on the Internet without reading political commentary focused on these issues, candidates for office or our elected officials. With state and local elections occurring on a regular basis and the 2016 presidential election on the horizon, opportunities for participating in the political process are likely to increase.

Campaign finance laws Campaign finance laws vary from the federal to state level and may vary from state to state. So, before discussing the key elements of a political activity compliance program, it is important to understand the law. Federal and Tennessee campaign-finance laws are discussed in turn below.

Federal Under federal law, corporations are prohibited from contributing as entities.

Contributions may be drawn upon a partnership or limited-liability account provided the entity is taxed as a partnership and has no corporate members.

Generally, individuals are free to make contributions to federal recipients subject to the limitations of federal campaignfinance law. However, federal government contractors may be subject to additional limits and restrictions.

Tennessee

Review and track all contributions by your insurance agency and all covered individuals to prevent inadvertent violations. If a violation occurs, request an immediate refund in writing.

Tennessee permits corporate contributions to candidate committees, but prohibits corporations from contributing to political party committees and political action committees. Partnerships and limited-liability companies are treated as individuals and are subject to the state’s individual contribution limits. Tennessee does not have pay-to-play restrictions in effect.

www.piATN.Com

Strategies for compliance As discussed above, although campaign-finance laws vary from the federal to the state level and may vary from state to state, following these basic tips will put your insurance agency on the fast track to compliance.

learn

Rebecca moll freed Partner at Genova Burns

Identify your goals Why do you want to participate in the political process? Do you want to participate while maintaining eligibility for government contracts?

Are you interested in participating as a company? Are individual officers and employees interested in participating?

Identify the rules Are corporate contributions allowed?

May limited-liability companies and partnerships contribute as entities?

Are pay-to-play restrictions in effect?

Identify covered individuals Who are the relevant people for campaign-finance and pay-to-play purposes? Alert relevant people of the restrictions, prohibitions and disclosure requirements of the relevant laws.

Review, track contributions Review and track all contributions by your insurance agency and all covered individuals to prevent inadvertent violations. If a violation

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occurs, request an immediate refund in writing.

Don’t contribute blindly Always know the exact name and type of recipient committee to which you are contributing. Be mindful of applicable limits (e.g., general campaign-finance, corporate affiliation and pay-to-play limits). Use protective cover letters. Use memo lines of checks.

Adopt a compliance policy Adopt a policy governing the making and solicitation of political contributions and political activity in general.

Distribute the policy to relevant people and then train them on the contents of that policy.

Conclusion

dis•tinc•tion di-’sti[ng](k)-shen e

noun 1: What your business will gain by advertising in PIA magazine.

G

et your business the distinction—and the attention—you need to prosper.

Become an advertiser in PIA magazine.

Find out more about this exciting opportunity. Reach our sales representative at piatn@piatn.com.

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Professional Insurance Agents magazine

Although campaign-finance and pay-to-play laws may seem complex, smart insurance agencies know that expecting officers, employees, board members and the company itself to sit on the sidelines is not realistic.

Savvy insurance agencies need to embrace this fact, establish meaningful compliance programs and put their best foot forward not only internally, but also externally, to ensure that their political activity does not put their company’s reputation or government contracting opportunities at risk.

Freed is a partner at Genova Burns, New Jersey’s leading law firm on election law and pay-to-play. She also is the firm’s director of the Corporate Political Activity Law; the director of Non-Profit and Tax Exempt Organizations; and a member of Public Contract Law & Bid Protest Litigation Practice Groups. She can be reached at (973) 230-2075. Her associate, Avi D. Kelin contributed to this article.

Earn Your CE Credits Without the Expense of Travel and No Test Required!

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CE

How It Works: Step 1: – Register.

Step 2: – At date/time of Webinar, click link provided in email invitation.

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Verify attendance when prompted.

Why It’s Great: Earn CE without the expense of travel.

Earn CE without having to take a test.

Earn CE while participating in a live (not pre-recorded) presentation.

www.piatn.com

CYBER‐LIABILITY 1.0

The basics of a typical cyber‐liability policy include two types of coverage.

A quick snapshot of what is included in each policy is clearly defined below.

Typical Loss Coverage Components

Typical Liability Coverage Components

Will cover costs the insured incurs to...

Will cover claim expenses and damages the insured is legally obligated to pay as a result of the following:

Breach Response/Crisis Management ‐

respond to a network or privacy breach. Includes: Breach notification, PR, forensic consultants, and credit monitoring costs

Cyber Extortion Loss ‐ respond to a threat by third party to commit a network security or privacy breach Business Interruption/Extra Expense Loss ‐ loss of income resulting from a network security breach or a network attack and extra expenses incurred to restore network to original condition

Data Loss ‐ cost to restore data destroyed or altered

as a result of a network security breach

For more information call: Adam Felton PIA Services, Inc. adamfe@pianet.org

Network Security Liability ‐ Provides coverage for actions that the Insured is legally liable for claims made against the Insured for a Network Security Breach Privacy Liability ‐ Provides coverage for actions that

the Insured is legally liable for claims made against the Insured for a Privacy Breach of PII, PHI or Corporate Confidential Information

Regulatory Coverage ‐ Provides coverage for actions/proceedings and fines/penalties against the Insured by a regulatory agency resulting from a violation of a Privacy Law

Website Media Content ‐ . Provides coverage for actions that the Insured is legally liable for claims made against the Insured for a Media Peril of content on the Insured’s Internet Site Professional Liability‐ . Provides coverage for acts, errors or omissions in the rendering or failure to render professional services to a client of the Insured

Sagemark Consulting

Auto Club Group

NAI

Insurance House

National Security Fire & Casualty

HICI - Haulers Insurance

N-Surance Outlets

Mapre Insurance

Penn National Insurance

Mid South Mutual Insurance Co.

Risk Innovations, LLC

Accident Fund Ins. Co. of America Bituminous Insurance Donegal Insurance Group EMC Insurance Cos. Erie Insurance

GAINSCO Auto Insurance J.M. Wilson Safeway Insurance Co. United Fired Group

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Continuous E&O protection since 1966.

504 Autumn Springs Court Suite A-2 • Franklin, TN 37067 Phone: 615-771-1177 • Fax: 615-771-3456 Contact: Kristopher Fisher Visit: www.piatn.com

Directory

Readers’ service and advertising index

11 Amerisafe 8 AmTrust North America 15 Arlington/Roe 18 Consumers Insurance USA 7 EMC Insurance 2 MidSouth Mutual Insurance Co. 26 M.J. Kelly of Tennessee BC PIA Branding Program

22 23 24 12 13 10 9 26

PIA Magazine PIATN CE Partnership PIATN Cyber-Liability PIATN Online Education PIATN Trust Insurance Plans Penn National Insurance Summit Utica National Insurance Group

Name____________________________________________________________________ Agency___________________________________________________________________ Address__________________________________________________________________ City/town________________________________ State____________ ZIP_____________ Phone____________________________________________________________________ Check advertisers of interest, complete form and mail to: PIATN magazine • 504 Autumn Springs Court, Suite A-2 • Franklin, TN • 37067

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Professional Insurance Agents magazine

Directory

PIATN officers and directors OFFICERS

President Joe Kerr, CIC, CPIA Kerr Insurance Services Brentwood, TN (615) 360-7524 joe@kerrinsurance.net President-elect Bill Richards, CPIA, LUTCF Community Insurance Greeneville, TN (423) 638-1422 brichards@greatci.com Vice President Greg Augustine, CPIA The Augustine Insurance Group Clarksville, TN (931) 503-0015 gaugustine@aol.com Secretary Herbert Montgomery Clay and Land Insurance Memphis, TN (901) 767-3600, ext. 107 hmontgomery@clayandland.com Treasurer Chris Mills, CPCU, CIC Mills Insurance Agency Nashville, TN (615) 620-4452 chris@millsinsuranceagency.com Immediate Past President John Keisling, CPIA, CISR Keilsing Insurance Agency Byrdstown, TN (931) 864-3116 john@keislingins.com

NATIONAL DIRECTOR

June Taylor, CIC, CPIA, CPIW, DAE Wilkinson Insurance Agency White House, TN (615) 672-4439 june.taylor@wilkinsonins.com

DIRECTORS

Llew Boyd Southern Insurance Associates Chattanooga, TN (423) 296-0626 llboyd@southins.com Adam Cox, CPIA Adler & Cox, Inc. Chattanooga, TN (423) 877-3536 acox@adlercox.com Tom Gernt, CPIA Art E. Gernt Insurance Inc. Crossville, TN (931) 484-3448 tom@gerntinsurance.com Anna Lima-Montgomery, CPIA Montgomery & Associates LLC Brentwood, TN (615) 829-8457 anna@montgomeryassociatesllc.com Mike Morat Mike Morat Insurance Services Memphis, TN (901) 363-8588 mmorat@aol.com Dedric Pearson, CPIA Pete Mitchell & Associates Inc. Memphis, TN (901) 345-6176 dedric.pearson@petemitchellins.com Jeff Puckett Boyle Insurance Agency Inc. Franklin, TN (615) 567-8000 jeffp@boyle.cm Mike Tansil My Team Insurance Murfreesboro, TN (615) 890-4483 mtansil@mileytansilins.com

EXECUTIVE VICE PRESIDENT

Jeff Anderson, CPIA PIA of Tennessee 504 Autumn Springs Court, Suite A-2 Franklin, TN 37067 (615) 771-1177 janderson@piatn.com

STAFF

Morgan Murry Director of Convention and Education (615) 771-1177 mmurray@piatn.com Kristopher Fisher Director of Member Services (615) 771-1177 kfisher@piatn.com Bekah Hutsenpiller Marketing Coordinator (615) 771-1177 bekahhutsenpiller@gmail.com

The PIA Branding Program

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Local advertising for Local Agents Serving Main Street America

SM

How does a Professional Insurance Agent separate himself or herself from the pack in a crowded insurance marketplace? Simple.

By taking advantage of PIA’s new print advertising program.

Best of all, this powerful branding tool is available free and exclusively to PIA members, as part of their PIA membership. Company sponsorship of the PIA Branding Program is also free.

PIA has created a series of ten print advertisements that PIA members can run in local publications or print as flyers. These ads focus on the combination of choice and personal support and service that make PIA members Local Agents Serving Main Street America.

Learn More

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These attractive ads can be customized with agency logos and contact information and (optionally) a company logo. There are four general agency ads, two homeowners ads, two auto ads and two commercial lines ads, with numerous variations, sizes, color as well as black and white ads, making a total of 227 ads in all.

National Association of Professional Insurance Agents 400 N. Washington St. • Alexandria, VA 22314-2353 (703) 836-9340 (phone) • (703) 836-1279 (fax) www.PIANET.com • piabrandingprogram@pianet.org

Whether you’re a PIA member now, you’re an agent who has yet to join, or you’re interested in company sponsorship, head on over to PIA National’s website to see the ads and get all the details about the PIA Branding Program: www.pianet.com/piabrandingprogram