professional agent august | 2013
Wh at’s Inside? New CIC's & CISR's...............13 Hiring—Steve Jobs Way........17 Work With Intention................23 I'm OK—You're Not OK..........26 Business Strategies...............31 Insurance Producers.............35 Coming Events.. .....................38
Digital Editions of PIAW Magazine Available at
www.piaw.org
Your customers deserve a
Silver Lining.
®
When something happens to your customer’s home, car, or business, it may not be a disaster. But no matter what it is, your customers always deserve fast and fair service from their insurance company. West Bend provides a Silver Lining, no matter what the claim may be. When the Bauers’ truck and trailer were damaged in an accident, getting them back on the road quickly was important. So that’s just what we did. Sometimes little things mean a lot. And every day, when something bad happens to someone, West Bend makes sure your customers experience the Silver Lining. Because the worst brings out our best.®
2 AUGUST 13
From the
President Jeff Glass — President, PIA of Wisconsin
Hello All! First off, I’d like to introduce myself…. My name is Jeff Glass from beautiful Lake Geneva, Wisconsin, your new 2013-2014 PIAW President. Sharing a little background; I started working in the industry 27 years ago part-time taking pictures and doing cost estimators for homes my father insured while I was in high school. After college, I started more on a full time basis working in the family agency as a personal A/E then commercial A/E, bookkeeping, accounting, and finally producer. In the fall of 1997, I purchased the agency and now enjoy wearing all the hats that come with being an agency owner. My journey to this point with the PIAW started in 2004. My agency was a member of another insurance association at the time, but I was curious about this PIAW association so I decided in 2004 to attend the annual PIAW state convention in La Crosse, Wisconsin. Prior to that, I had the premindset that the current association my agency belong to was the association for “big professional” agencies and the PIAW association was for the “small town one man shop” agencies………….I WAS SO WRONG. Attending the PIAW convention that year changed my life and my mindset about the PIAW…….. I found young ideas, fresh, friendly people, excellent education programs, a trade show that rocked and fellow agents that could drink beer like me….ha..ha. I had the pleasure of meeting the executive director and a few board members while strolling a killer cocktail hour…… I quickly realized the PIAW was a” bottom up” run association, meaning members to committees, committees to executive director and staff, executive director to board and back down. I really liked that structure, it meant this truly was “a members”
association……..I decided then and there I wanted to be part of this, so I joined. It wasn’t long after joining PIAW as a member agency that I decided to volunteer my time serving on a PIAW committee, I believe it was the “young agents” committee my first year until the committee chair realized I was too old for “young agents” so I was moved to “public relations” committee the following year. For those of you who have never volunteered your time on a PIAW committee, I strongly recommend you consider……….joining a PIAW committee is the “grass roots”, the” life blood”, it’s where it all starts………….. “The bottom up!” After running for the board of directors in 2009 and winning my first three year term…. I soon started to learn the “behind the scenes” running of the PIAW……….I was fully wet behind the ears that first year or so trying to digest all the functions and responsibilities of being a board member……..what I fast learned was this wasn’t just some ”good old boys club”. Being a board member was serious, intense, hard work, and sometimes controversial…..and I loved it. So in 2011 I decided to run for my second and final three year term and after working through secretary, treasurer, vice president and a few years on the executive committee, I write to you today as your association President. I am very honored and humbled to serve the members and partners of PIAW and look forward to this coming year. Please don’t ever hesitate to contact me, a fellow board of director or the executive director with ideas, questions or even complaints……and if you’re ever in the Lake Geneva area, stop by and say hello…. I may just buy ya a beer.
www.sheboyganfallsinsurance.com
AUGUST 13 3
Memos from
Madison Ron Von Haden, CIC — Executive Vice President, PIA of Wisconsin
Properly Protecting Clients RECENT EPIC RAINFALL in my hometown of Boscobel,
questions of “Why didn’t you tell me I needed that” or “Why didn’t you add that to my policy” were tossed at the agents. Agents who were professional enough to have signed documentation of coverage rejection were saddened by the devastation to their friends, neighbors and clients, but were relieved that they had done their job by proposing and securing coverage as requested.
Wisconsin may confirm my thoughts and previous writings about properly protecting clients. Over nine inches of rain fell in less than twenty four hours in Southwest Wisconsin, an area of beautiful hills and valleys, creeks and the Wisconsin River. The surge of water flowing off the hills and into the streams became a raging torrent that swept through the small towns’ residential and business areas. Hundreds of homes and businesses were inundated by water, mud and disgusting sludge back-up from storm and sanitary sewers. Property damage ranged from moderate to severe. Roads, bridges and sidewalks were damaged or destroyed. There was no warning or time to prepare for the onslaught of water. Most homes and businesses were without flood insurance and many had no coverage for back-up of sewers or drains.
For those agents that did not propose the coverages and have signed documentation, this is a time of heartbreaking anxiety. Have I let my customers down? Will I face the stress and “reputation damage” of an E&O claim? Will my agency survive? Surely there were, and will continue to be, sleepless nights and long days of self-examination and trepidation.
D2E!+<BFAll of us hope that the residents of this small town can put
their lives and property together and the great flood of 2013
()*234!,-#%./+!0++1234!5)-0+,6!#-!;#%/=!$#%!/20+!)99+66!,#!5)3$!5#-+!5)-0+,67! will never be repeated. But I implore you to consider the Fortunately, no one lost their life in this disaster and ,@+!)36;+-!26!A#.+-,6#3!A$)3 impact of this scenario on your community, your friends, volunteers rushed to assist in the clean-up efforts. State BC!$#%!)6!#;3+-!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!,@+! neighbors and your agency. Be professional. Take the time emergency responders and officials and FEMA were on the .##0<!,@+!)36;+-!26!A#.+-,6#3!A$)3 to explain and recommend coverage and document files scene to offer what assistance they could provide. BC!$#%!)6!#;3+-!;)3,!,#!6+//!$#%-!)4+39$<!,@+!)36;+-!26!A#.+-,6#3!A$)3 with signed rejection forms. BC!$#%!;)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-234<!,@+!)36;+-!26! But, after the initial shock wore off, home and business PIA can help you provide flood insurance in our program A#.+-,6#3!A$)3 owners made the call to their insurance agent. Those who through The Hartford. Simply visit www.pianet.org and had the foresight to purchase flood insurance or coverage click on Member Benefits to get all the material you need. 123!455!26!789!4G2H9?!/2G937:2>!/I4>!B:!789!4>:J93C for back-up of sewers or drains, were relieved to hear that ! their policies would respond. Those who were told they had AND REMEMBER …..The smallest deed is better than the D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQ no coverage were disappointed or outraged. The inevitable greatest intention.
!
! "#!$#%&! '! '! '! '! '!
"#$%&'$%"!&#()*!+(%"&'#,"!*-.%!#,%!"$-/&!-,"0%/
()*+!,-#%./+!0++1234!5)-0+,67! 8)3,!,#!)99+66!5)3$!5#-+!5)-0+,67! :6!)3!)4+39$!#;3+-<!;)3,!,#!61+3=!/+66!>5+!#3!)=52326,-)>#3!.%,!9#3>3%+!,#!#;3!$#%-!.##07 8)3,!,#!6+//!$#%-!)4+39$7 8)3,!5#-+!9#3626,+39$!23!+)-32346<!239/%=234!1-#?,!6@)-2347
! !!!!!123!455!26!789:9!;<9:=2>:?!/#@%/&"#,!/A-,!B:!789!-,"0%/C !D#!?3=!#%,!5#-+!,#=)$<!9)//!E)-$!F%-,#3<!G@2+C!H1+-)>34!HI9+-<!),!JKJLMMKLNOPQL ://!9)//6!;2//!.+!0+1,!23!,@+!6,-29,+6,!9#3?=+39+L
4 AUGUST 13
ROBERTSON RYAN & ASSOCIATES, INC.
AUGUST 13 5
From the
Boardroom
John Klinzing, CIC, Affiliated Ins. Agencies of WI, LLC — Director, PIA of Wisconsin
Strive for Excellence “Excellence” – What does it mean to you? What does it mean to your employees? What does it mean to your agency or your organization? The Merriam-Webster’s dictionary defines excellence as “the quality of being excellent” or “an excellent or valuable quality.” Other words related to excellence can be described as virtue, goodness, value, worth, importance, distinction, notable, first-rateness, greatness, impeccability, flawlessness, or perfection. As you can see, excellence can mean many different things to many different people. In my early days of becoming an insurance professional, a successful business owner and good friend of mine, shared with me what excellence meant to him. He did this through an award he gave annually to his top salesperson. He called it, the “Excellence” award and it read like this:
“Excellence” Excellence is never an accident. It never “just happens.” It develops only through creatively conceived effort and personal commitment. It will remain in your sales organization only by your unrelenting insistence on the highest standards of performance. Excellence demands dedication from you – the leader of your organization. Once it begins it must be nourished, strengthened, and renewed. It expects quality from every member of your organization. It demands it from you. Excellence inspires. It electrifies. It is contagious, and permeates your organization’s character. It enriches every member of your organization. It magnifies your influence. It charts the direction of your growth. Excellence is your organization’s life line. It is the most compelling answer to apathy and inertia. To instill it
6 AUGUST 13
in an organization is difficult; to sustain it, even more so. It demands adaptability, imagination, and vigor. It requires from you, the leader, a constant state of personal discipline and personal accomplishment. Excellence is a state of mind put into action. It motivates. Stimulates. Inspires. It is its own reward. Excellence. The above words hang in a glass frame at the entrance to my office. Each morning, as I walk into my office, I have to pass this excellence award. As I stop to read it, it reminds me of why I chose the profession of insurance and what it takes to be an insurance professional. Excellence has always meant setting high standards in all aspects of what we do. To accomplish this, we must meet our core values of “having good lines of communication, developing a working confidence and lastly earning the trust of our clients.” There are many ways individuals or insurance organizations can reach for excellence. One of those ways is through education. Through our agency and the many years of membership in the Professional Insurance Agents of WI, we have been able to continue our “strive for excellence” by utilizing many of the educational resources offered by the PIA. Whether by becoming a CIC, CISR, CPIA, or by attaining any of the many designations offered in today’s industry, we continue to hold ourselves up to the high standard of excellence. As I said in the beginning of this article, there are many different words to define excellence, its meaning, and what it means to each of us individually. That being said, all of us have had our “Greatest Power” bestowed on us by our creator. What is that “power” you may ask, you’ll just have to wait until next time. Until then, continue your “strive for excellence” in all that you do!
Have u heard the latest about ACUITY?
YES! Every1 is talking about them : )
See what theyâ&#x20AC;&#x2122;re saying at: www.acuity.com
For All That Matters
facebook.com/acuitywow AUGUST 13 7
OCI Administrative
Actions Ted Nickel â&#x20AC;&#x201D; Commissioner of the Office of Insurance
Madison, WIâ&#x20AC;&#x201D;OCI has taken the following administrative actions. In many of these cases the respondent denied the allegations but consented to the action taken. Any forfeitures paid in these administrative actions are deposited in the Common School Fund which is administered by the Board of Commissioners of Public Lands. The earnings from this fund are distributed to all public K-12 schools in Wisconsin and are used by school libraries to purchase books. Copies of the administrative action orders may be viewed online at https://ociaccess.oci.wi.gov/OrderInfo/OrdInfo.oci. OCI is responsible for overseeing the operations and marketing of insurance companies and agents in Wisconsin. OCI encourages anyone with a question or a complaint regarding an insurance company or agent to contact the office at this toll-free telephone number: 1-800-236-8517.
Allegations
and
Actions Against Agents
Leo B. Allen III, 5 St. Johns Way, Mullica Hill, NJ 08062, agreed to pay a forfeiture of $500.00. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and failing to report administrative actions taken by the states of South Dakota and Massachusetts. Robert Brown, W287N8255 Dobbertin Rd., P.O. Box 76, Nashotah, WI 53029, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Wisconsin on a licensing application. Charles Cardenas, 4330 Spectrum One, Apt. 1116, San Antonio, TX 78230, had his application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and having a criminal conviction which may be substantially related to insurance marketing type conduct. Brian Conradt, 5881 Woodland Dr., Waunakee, WI 53597, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.
Donald J. Fleischman, 1221 Perrot St., Green Bay, WI 54302, was ordered to pay a forfeiture of $4,000.00. This action was taken based on allegations of failing to disclose criminal convictions to OCI within 30 days. Deshunna Franklin, 700 W. Virginia St., Ste. 205, Milwaukee, WI 53204, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Gail Louise Frederiksen, 5160 Anton Dr., Apt. 216, Fitchburg, WI 53719, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Steven M. Haukedahl, 1510 Sharp Rd., Waterford, WI 53185, was ordered to pay a forfeiture of $500.00, was ordered to provide requested information, and was ordered to reply promptly to all inquiries from OCI. This action was taken based on allegations of failing to respond promptly to inquiries from OCI.
Dynah R. Edang, 10598 W. Cortez Circle, Apt. 29, Franklin, WI 53132, had her application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and having unpaid civil money judgments.
Dominic R. Haupt, 10576 George St., Auburndale, WI 54412, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application; having a criminal conviction which may be substantially related to insurance marketing type conduct; and having a history of unpaid child support and civil money judgments.
Francis Michael Evans, 1222 W. 41st St., La Grange, IL 60525, agreed to the denial of his application for an insurance license for 30 days. This action was taken based on allegations of having administrative actions taken by the state of Illinois and FINRA.
Corey Lynell Holbert, 1150 W. Phillips St., Ontario, CA 91762, had his application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and failing to pay past child support due. [continued on page 10]
8 13 8 AUGUST AUGUST 13
Grow your business... Retain your identity with
Hear what our associates are saying about our focus on agents and our great commissions! Visit www.couriagents.com/raves/ or Scan this with your Smartphone QR Reader App.
Search “QR Code” in your App store to download a mobile reader.
Or Ask one of these strategic partners about Couri Associates’ value
This is just a sampling of the quality carriers Couri represents.
Interested in becoming part of the Couri family? Visit our website, couriagents.com or give Steve Albinger a call at 800-444-1215
AUGUST 13 9
Administrative Actions [continued from page 8] Joseph B. Howard, 808 Minnesota Ave., South Milwaukee, WI 53172, had his application for an insurance license denied for 15 days. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application. Donald C. Johnson, 4183 N. 16th St., Milwaukee, WI 53209, agreed to the denial of his application for an insurance license for 60 days and agreed to maintain repayment of civil money judgments and state income taxes. These actions were taken based on allegations of having criminal convictions which may be substantially related to insurance marketing type conduct; having an administrative action taken by the state of Wisconsin; providing incomplete information on a licensing application; and having a history of tax delinquency and unpaid civil money judgments. Natasha A. Johnson, N5547 170th St., Elmwood, WI 54740, had her application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and failing to complete the criminal background check required for licensure. Samuel J. Kailas, 7278 N. 38th St., Milwaukee, WI 53209, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Darin Lon Kath, 1722 Dublin Tr., Apt. 34, Neenah, WI 54956, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.
his application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and having a criminal conviction which may be substantially related to insurance marketing type conduct. Jessica Podlesnik, 345 W. Wisconsin Ave., Fl. 2, Oconomowoc, WI 53066, had her application for an insurance license denied. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Wisconsin on a licensing application, having a criminal conviction which may be substantially related to insurance marketing type conduct, and having unpaid civil money judgments. Franshesca Resendez, 4810 S. 68th St., Greenfield, WI 53220, had her application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Wisconsin on a licensing application. Rebecca B. Rogers, N2676 Cty. Rd. V, Lodi, WI 53555, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Bernard Saffold, 3129 N. 51st Blvd., Milwaukee, WI 53216, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.
Larry King, 3356 S. 15th Pl., Milwaukee, WI 53215, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.
Elizabeth Ann Schwarzman, 2046 Swans Neck Way, Reston,
Darrell J. Langer, 1196 Hwy. T, Marshall, WI 53559, agreed to pay a forfeiture of $2,000.00, agreed to the suspension of his insurance license for 31 days, agreed to enter into a new Agency Agreement, and agreed to cease and desist signing names on any insurance documents. These actions were taken based on allegations of forging signatures on insurance documents.
promptly to inquiries from OCI and failing to provide proof of
Stormi A. Malesevich, 1210 W. 5th Ave., Oshkosh, WI 54902, had her application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and having a criminal conviction which may be substantially related to insurance marketing type conduct. Lisa Kay Mielke, N8644 Old Hwy. 47, Black Creek, WI 54106, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Caitlin M. Morgan, 416 Haskin Dr., Pardeeville, WI 53954, agreed to the denial of her application for an insurance license for 90 days. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and having unpaid civil money judgments. Shawn S. Murphy, 198 Victoria Ct., Barneveld, WI 53507, had
VA 22091, had her application for an insurance license denied. This action was taken based on allegations of failing to respond resident state licensing. Jessica M. Stovich, 6100 W. State St., Apt. 222, Milwaukee, WI 53213, had her application for an insurance license denied. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application, failing to complete prelicensing education, and failing to respond promptly to inquiries from OCI. Jackie R. Studzinski, 3251 E. Ryan Rd., Oak Creek, WI 53154, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Ellen M. Wagner, 180 E. Cherokee Cir., Milwaukee, WI 53217, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due. Gregory W. Walsh, 102 N. Meadow Ln., Roberts, WI 54023, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to disclose criminal convictions on a licensing application. [continued on page 12]
10 AUGUST 13
Certified Insurance Service Representative Open to Anyone!
8 WI CE Credits New Course # 68768
INSURING PERSONAL AUTO EXPOSURES After taking this course, students will be able to more effectively advise customers in the processes of analyzing, obtaining, and modifying personal auto and umbrella policies • Analyze the Personal Auto Policy and Major Endorsements • Owned, Borrowed, and Rented Autos • Determining Who is an Insured
Sept 24 • Green Bay
• Personal Umbrella/Excess Liability
Sept 25 • Brookfield
• Minimizing E&O Exposures
Course Instructor Denise Semrow CIC, CISR, ASI SECURA Insurance
$145 Per Course
CLASS SCHEDULE
Instruction 8:00 a.m. – 3:45 p.m. Group Lunch 12:00 p.m. – 12:45 p.m. Optional Exam 4:15 p.m. – 5:15 p.m.
Register at www.piaw.org or call 800-261-7429
AIA Tired PC BACK 11_9_11:AIA 02.10.10 PC BACK 11/16/11 1:35 PM Page 1
Tired of Walking Away from Business? We Can Help!
The Midwest’s Premier Cluster Group
* 100% Retained Ownership * Increased Markets-Over 30 Represented * Knowledgeable Support Staff Commercial Assistance - Placement * Increased and More Stable Contingencies * Comparative Rater Provided * Retain 90% of Commission * Reduced Cost of Applied Management System * Preferred Agency Contracts
Check out our website at www.iaanetwork.com
For more information call Mike Sabourin 866-789-9712 AUGUST 13 11
Administrative Actions [continued from page 10]
Allegations
and
Actions Against Companies
Helenville Mutual Ins. Co., P.O. Box 67, W3320 Hwy. 18, Helenville, WI 53137, was ordered to pay a forfeiture of $1,500.00. This action was taken based on allegations of failing to comply with a previous examination order.
Risk Management & Reinsurance Services, Inc., 601 Montgomery St., Ste. 315, San Francisco, CA 94111, had its insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.
Lovitt & Touche, Inc., P.O. Box 32702, Tucson, AZ 85751, had its application for an insurance license denied. This action was taken based on allegations of having administrative actions taken by other states and failing to respond to inquiries from OCI.
Senior Advantage of Wisconsin, 1033 W. College Ave., Ste.103, Appleton, WI 54914, had its insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.
Lutheran Social Services of Wisconsin & Upper Michigan, Inc., 647 W. Virginia St., Ste. 200, Milwaukee, WI 53204, paid a forfeiture of $500.00 and was ordered to file the required financial statement. This action was taken based on allegations of failing to file a required financial statement and fees by the due date. Messer-Bowers Company, P.O. Box 1349, Enid, OK 73702, had its application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI and failing to name a designated responsible producer on a licensing application.
Tier One Warranty Services LLC, 3707 FM 1960 Rd. W., Ste. 450, Houston, TX 77068, was ordered to pay a forfeiture of $12,000.00, was ordered to cease and desist from acting as a warranty plan administrator unless and until it has obtained authority to do so, and was ordered to supply requested information to OCI. This action was taken based on allegations of conducting an insurance business without proper authority and failing to respond promptly to inquiries from OCI. Wisconsin Vision Service Plan, Inc., 3333 Quality Dr., Rancho Cordova, CA 95670, was ordered to pay a forfeiture of $500.00. This action was taken based on allegations of failing to comply with a previous examination order.
Certified Insurance Service Representative Open to Anyone!
8 WI CE Credits (1 is Ethics) New Course #68690 Utica Approved
AGENCY OPERATIONS
This course will help you become an indispensable team player. As you work with colleagues and customers, you will do so with enhanced self-assurance and a greater understanding of the dynamics within insurance organizations. How agencies operate is essential training for both insurance agency and company personnel. • Legal & Ethical Requirements • The Insurance Agency • The Insurance Industry and Marketplace • Communication • Agency Workflow • Account Management • Errors & Omissions
CLASS SCHEDULE Course Instructor John Dismukes CIC, CPCU, AAI, AIS
12 AUGUST 13
Instruction 8:00 a.m. – 3:45 p.m. Group Lunch 12:00 p.m. – 12:45 p.m. Optional Exam 4:15 p.m. – 5:15 p.m.
September 10
•
Rothschild
$145 Per Course Register at www.piaw.org or call 800-261-7429
NEW CICs
The Certified Insurance Counselors (CIC) Program has been the insurance industryâ&#x20AC;&#x2122;s premier, proven source for practical, real-world education since 1969. For insurance professionals everywhere, the 20 hour Institutes represent a thoroughly rewarding learning experience, led by accomplished insurance and risk management speakers. Are you ready to challenge yourself?
Darren Dunn, CIC, AIC State Auto Insurance Companies Onalaska, WI
Jodi Mayer, CIC, CPCU West Bend - A Mutual Insurance Co. West Bend, WI
Ryan Waite, CIC, CISR Neckerman Insurance Services Madison, WI
Casey FitzRandolph, CIC M3 Insurance Solutions, Inc. Madison, WI
J. Nathan Morris, CIC Liberty Mutual Insurance Waukesha, WI
Timothy Wright, CIC, CPCU The Cincinnati Insurance Companies Fairfield, OH
Chad Heath, CIC Alliance Insurance Centers, LLC Green Bay, WI
Daniel Scheider, CIC R & R Insurance Services, Inc. Waukesha, WI
Chad Matushak, CIC Holden Insurance Agency Superior, WI
Tracy Thoreson, CIC, CISR Mayville Insurance Agency, Inc. Mayville, WI
NEW CISRs
The CISR Program empowers outstanding individuals to provide exceptional customer service. Join the many thousands of insurance professionals who have already experienced the benefits.
Mary Corriveau, CISR, LUTCF West Suburgan Insurance Agency LLC Brookfield, WI
Denise LaFave, CISR Hornick Insurance Services, Inc. Green Bay, WI
Jessica McDonald, CISR Westland Insurance Services, Inc. Sheboygan, WI
Brenda Dukat, CISR HNI Risk Services, LLC New Berlin, WI
Nicole Mani, CISR Neckerman Insurance Services Madison, WI
Franklin McGettigan, CISR TRICOR Insurance Dodgeville, WI
Windy Filipiak, CISR Dickenshied-Cravillion Ins. Services, Inc. DePere, WI
Pamela Marrari, CISR McClone Menasha, WI
Joel Sauer, CISR M3 Insurance Solutions, Inc. Madison, WI
Melissa Hackstein, CISR The Brehmer Agency, Inc. Butler, WI
Tracy Mason, CISR Schommer Insurance Services, LLC Green Bay, WI
Sandra Schaller, CISR Capitol Insurance Companies Middleton, WI AUGUST 13 13
14 AUGUST 13
WISCONSIN PIA IS A PROUD SPONSOR OF THE CPIA DESIGNATION PROGRAM The PIA of Wisconsin is a proud sponsor of the Certified Professional Insurance Agent (CPIA) professional designation program. The CPIA designation is comprised of a series of Insurance Success Seminars. These three, one-day workshops teach practical "before", "during", and "after" the sale techniques for insurance producers, sales managers, account managers and company marketing representatives. Participants leave with ideas that will produce increased sales results immediately. In fact, The Insurance Success Seminars are guaranteed: Implement the principles covered in these sessions and experience a 20% increase in personal production within six months, or your registration fee will be refunded!
To maintain the CPIA designation, CPIA’s must fulfill an update every two years by attending an Agency Management Boot Camp, or attend one of the core Insurance Success Seminars, or attend a Pro-to-Pro Retreat, or maintain an active membership in the AIMS Society.
The AIMS Society is a national organization dedicated to providing interactive marketing and sales training, ongoing resources and networking opportunities to insurance professionals.
You can attend the CPIA courses in any order. No Test. Approved for 7 Wisconsin CE credits.
CPIA 1 - Position for Success
CPIA 2 – Implement for Success
CPIA 3 - Sustain Success
During this program, participants are encouraged to focus on internal and external factors affecting the development of effective business development plans. Factors discussed include a review of the state of the insurance marketplace; analysis of competitive pressures; necessary insurance carrier underwriting criteria; and consumer expectations and understanding.
During this session participants will be provided with specific tools for analyzing consumer needs; will learn to utilize risk identification techniques to gather pertinent prospect information; will develop skills necessary to assimilate information gathered into a customized protection program; and will participate in exercises designed to promote effective delivery of proven solutions.
This program focuses on fulfilling the implied promises contained in the insuring agreement. Students will review methods of providing evidence of insurance coverage; will discuss policies and procedures for controlling errors and omissions including policy review and delivery, endorsements, claims-processing, and handling of client complaints. This course includes a review of the Professional Expectations; the Law of Agency; and Legal and Ethical Standards.
CPIA CPIA11 - November 9, 2011 Radisson Fall 2012 Paper Valley Hotel Appleton, WI Dates to be Announced
CPIA 3 – September 11, 2013 Kelmann Corporation CPIA 2 - February 15, 2012 Wauwatosa, WI Marriott Madison West Middleton, WI
CPIA 3 - August 1, 2012 Grand Geneva Resort Lake Geneva, WI
Course Schedule 8:30 a.m. - 4:30 p.m.
8:30 – 4:30 Lunchp.m. On Your Own 12:00 p.m. - 12:45 p.m. Fee per Seminar: Fee PerRegistration Course (does not include lunch): PIA Member $155.00 / Non Member $190 Includes Materials, Coffee in the AM & Soda in the PM at > PIA Member $155.00 or call PIA at 1-800-261-7429 Register www.piaw.org > Non Member $190.00 Register at www.piaw.org or call PIA at 1-800-261-7429
AUGUST 13 15
16 AUGUST 13
Hiring. . . do it the
Steve Jobs Way by Patrick Valtin
Jim was the perfect candidate with many years of solid experience as a professional sales rep and had an obvious talent of persuasion and communication skills. But the hiring manager had some strong reservations during the interview. Jim’s strong focus on results ‘right now’ and a certain aggressiveness that could probably overwhelm or upset clients were some of the weaknesses he was concerned about.
I
In regards to Jim’s focus on the purposes of the company, its role in the community, the vital importance of innovation and unselfish dedication to excellence, he did the perfect job. He sold himself like never before and got hired.
You too can apply these attributes when you look at
Four months later, Jim was fired for lack of vision, lack of dedication and worst of all, for his lack of honesty in his intentions.
1. Vision-minded. Everyone joining the company must
The manager knew he had to hire “the Steve Jobs way,” but had no real clue as to how to do it. He hired what he saw and what he heard “at the moment.” He was trapped into Jim’s salesmanship talent. And he was fooled by Jim’s hidden intentions: to get the job, “no matter what needs to be said…”
attracting top players and ensure you avoid trouble makers. To help you in the hiring process, here are the main “Apple selection attributes.”
have a clear picture of its management vision – and fully agree to fight for it, to defend it and to live with it every day. Applicants who do not seem to get it are systematically rejected. When you hire people who don’t seem to agree with, or care about your company vision, you are potentially employing future enemies. 2. Innovation-minded. Steve Jobs always emphasized the
STEVE JOBS’ HIRING PHILOSOPHY Steve Jobs was an amazing and unconventional leader in many respects. His reputation as the best entrepreneur of our time can be summarized in a few words: he and his top execs never compromised with the talents and qualifications required of their employees. He personally interviewed over 5,000 applicants during his career. He and his executives considered very different qualities in people than most business owners do. When you thoroughly analyze Apple’s philosophy of hiring, you find out that there has always been fundamental, un-compromising attributes needed to get a job at Apple, Inc.
vital importance of hiring people who are innovative – willing to create something from nothing. Applicants are first chosen for their ability and willingness to constantly create, rather than for their technical competence. 3. Future-minded. Employees at Apple are driven by their leader’s vision of the future and they contribute everyday to creating the future, more than just beating the competition. Each of them owns the future of the market because they know they can contribute to creating it. The eagerness to create, not follow the future is a vital attribute observed in top players, no matter the industry.
[continued on page 18] AUGUST 13 17
Hiring. . . [continued from page 17]
4. Passion-minded. Steve Jobs’ first principle is: “Do what you love.” People are hired because they love the product, the company and its vision. Applicants who do not demonstrate a genuine passion and “love” for the company’s purposes and business philosophy will never make it. 5. Contribution-minded. A statement given by an Apple recruiter is clear enough: “We didn’t want someone who desired to retire with a gold watch. We wanted entrepreneurs, demonstrated winners, high-energy contributors who defined their previous role in terms of what they contributed and not what they titles were.” 6. Engagement-minded. Over two thirds of Americans are not engaged in their workplace. Apple management is strict on employees’ level of commitment. Committed individuals who are inspired by a grand purpose make the whole difference in the most competitive conditions. 7. Excellence-minded. Steve Jobs was known for his passion of perfection. The company always tries things out until they are perfectly done. The same attitude is expected of every collaborator. Applicants who do not share that passion for excellence do not have a chance.
OTHER CRITICAL ATTRIBUTES TO EVALUATE You will notice that these 7 points enforced in the Apple’s personnel selection are all personality-related attributes, also called soft skills. They do not always guarantee performance. But the chance of selecting productive people is at least 200% higher when focusing on these vital soft skills. It is very well known that recruiters who focus on soft skills in their personnel selection process are, on average, 50% more effective in selecting top players. So, in order to avoid falling in the momentary personality trap – as the hiring manager in the above example did, you should also focus on the following two basic soft skills: •
Honesty. Did you know that one third of all business failures in the USA are due to employee theft? Also, 95% of all US companies are victims of theft and yet only 10%
GIGGLES
18 august 13
{
ever discover it. So this is definitely a crucial criterion to evaluate. Everybody recognizes the importance of honesty so it would make sense to evaluate it PRIOR to evaluating any other soft skill, wouldn’t it?
There are strong indicators which allow you to precisely evaluate honesty. Here are just a few: gaps in the resume, contradictory data between the resume and your standard job application, negative reaction or embarrassment from the applicant to your challenging questions and lack of accuracy in applicant’s explanations of previous achievements.
•
Willingness. According to the US Department of Labor, more than 87% of employee failures are due to unwillingness to do the job. You can’t simply force someone to do something if they do not want to. Such persons will do what you want in order to keep their job or to avoid penalties. But they will not really put their heart into it.
Most applicants will tell you that they are willing, of course. The key to finding out if they are honest is to ask them to prove it. Challenge them to demonstrate that they have been willing to work hard, learn something new, question their old habits, work under tough conditions, etc… The way you do this is simply by asking them to give you specific examples when they had to display such willingness.
So, hire the Steve Job’s way, by all means. But don’t forget these two basic attributes in the same process. inform applicants that your company values and management philosophy imply honesty and willingness/positive attitude as primary selection criteria, no matter the position – lack of either is enough to be considered unqualified! n
Patrick Valtin is the author of No Fail Hiring and a 24-year veteran coach and trainer in the fields of management and human resources. He is the President of M2-TEC USA, Inc. Patrick has personally trained 85,000 business owners and executives of over 30 countries in the last 23 years, on the subjects of business strategies, leadership and people management, hiring, sales and marketing. For more information, please visit www.nofailhiring.com, www.m2-tec.com or call 877-831 2299.
Among those whom I like or admire, I can find no common denominator, but among those whom I love, I can: All of them make me laugh. —W. H. Auden
OPPORTUNITY KNOCKS. Join AAA’s Network of Independent Insurance Agents and Enjoy Tremendous Benefits. • AAA brand strength • Competitive commission program • Outstanding contingency program • Innovative co-op advertising resources For even more great reasons to add our powerful brand to your insurance carrier line-up, contact:
Heidi Nienow at 608-828-2614 or hqnienow@AAAWisconsin.com today! Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.
ARE YOU totally
WORRY FREE? WWW.IMTINS.COM
West Des Moines, ioWA • 800.274.3531 • WWW.iMtins.coM
AUGUST 13 19
PEOPLE WHO EARNED THIS ALSO EARNED MORE
30,900 MORE OF THESE
PER YEAR.
If you’re looking to jump start a new career or make more with the one you are in, education is your best investment. Now, more than ever, it is important to invest in your greatest assets—yourself and your people. According to The National Alliance Producer Profile, commercial lines producers with the Certified Insurance Counselor (CIC) designation earn 30% more than those without the designation. To learn more about the CIC Program, call or visit us on the web.
The most successful training programs for insurance professionals
Register at www.piaw.org or call 1-800-261-7429
Certified Insurance Counselor Each Approved for 20 Wisconsin CE Credits agency management
COMMERCIAL PROPERTY
September 11-13, 2013 Holiday Inn Wausau – Rothschild, WI 715-355-1111 $85 rate through 8/14/13 includes hot breakfast bar
November 13-15, 2013 Radisson/Oneida Casino – Green Bay, WI 920-494-7300 $99 rate through 10/24/13 includes full breakfast
Approved for Utica E&O Premium Discount! • the agency as an organization • human resources Dennis Stone, CIC, CPCU, CLU • managing and sustaining financial strength • agency productivity and effectiveness Rebecca Lathrop, CIC • legal & ethical responsibilities John Dismukes Jr., CIC, CPCU, AAI, AIS
WI CE Course # 66243 Includes 4 WI Ethics Credits!
Day One: 8:00 – 5:15
Day Two: 8:00 – 5:00
• COMMERCIAL PROPERTY COVERAGES • COMMERCIAL PROPERTY CAUSE OF LOSS FORMS • COMMERCIAL PROPERTY ENDORSEMENTS Keith Wilts, CIC, CPCU • TIME ELEMENT COVERAGES • COMMERCIAL INLAND MARINE COVERAGES Robert Ford, CIC, CISR • BUSINESS OWNERS POLICIES • COMMERCIAL PROPERTY CASE STUDY John Dismukes, CIC, CPCU, AII, AIS
New WI CE Course # Pending
Day Three: 8:00 – noon, Optional Exam 2:00 – 4:00
$390.00 per Institute. Register at www.piaw.org or call 800-261-7429. 20 AUGUST 13
MAPLE VALLEY MUTUAL Insurance Company “The Promise You Can Trust” Maple Valley Mutual’s vision is to be the best smaller mutual insurance carrier in northeastern Wisconsin. This means providing exceptional service and top-notch products to our Agents and Policyholders/Owners while maintaining the Company’s excellent financial condition and A.M. Best Rating of A- (EXCELLENT). • Well Established, Competitive Farmowners Program • Comprehensive Modern Homeowners Program • Competitive BOP & Commercial Programs Writing Territory Northeastern Wisconsin
• Unique Quotation System for New Business • Above Average Commissions For more information Contact
Al Schuettpelz, President, at: al@maplevalleymutual.com | 800-23MAPLE | www.maplevalleymutual.com
AUGUST 13 21
22 AUGUST 13
W o r k W ith
Intention
The 3 Components of Performance Time By Brian Moran
Everything you want to accomplish in life requires an investment of your time, so when you want to improve your results, you must consider the fact that your supply of time is limited.
E
Even in this era of innovation and technological advancement, time, more than any other resource, is the limiting factor. Let’s face it, everything requires time. It is the one truly universal condition. Even more vexing is the fact that the supply of time is completely inelastic. No matter the magnitude of demand, the supply is fixed. Moreover, it’s perishable. And yet, time is perhaps the most squandered of all personal resources. To become great, you must choose to allocate your time to your greatest opportunities. You will have to choose to spend time on the difficult things that create your biggest payoffs. To be great you will need to live with intention. This will require you to be clear on what matters most, and then to have the courage to say no to things that distract you. You will need to guard your time intensely, delegating or eliminating everything possible that is not one of your strengths or does not help you advance your goals. To be your best, you must intentionally align your time and activities with your strengths and your unique capabilities. When you do, you will also experience a new and everincreasing level of performance and satisfaction. To achieve this level of performance will require that you carve out time for the strategic—those actions that are important, but not necessarily urgent. Strategic activities don’t typically have
an immediate payback, yet they create substantial returns in the future. To stay focused on your strengths, you will need to manage your interruptions and keep the low-payoff activities to a minimum. In spite of the priceless value of time, many people engage each day on its own terms. In other words, they satisfy the various demands of the day as they are presented; spending whatever time is needed to respond without giving much thought as to the relative value of the activity. This is a reactive approach in which the day is controlling you thus preventing you from performing at your best.
Time Blocking The key to successful time use— intentional time use—is not trying to eliminate these unplanned interruptions, but instead to block out regular time each week dedicated to the strategically important tasks. We call this Performance Time and find that it is the best approach to effectively allocating time that we have ever encountered. Performance Time is an easy-to-use system that allows you to operate like the CEO of your business and life by spending your most valuable asset—your time—with intention. It utilizes a simple timeblocking system to regain control of your day and maximize your effectiveness. [continued on page 24]
AUGUST 13 23
Intention. . . [continued from page 23] There are three primary components of Performance Time: strategic blocks, buffer blocks, and breakout blocks.
STRATEGIC BLOCK - A Strategic Block is a 3-hour block of
thoughts. It is time set aside to rejuvenate and replenish. Use this time for fun. Enjoy the hobbies in your life. Spend time with family and friends. Play golf. Go shopping. Get some exercise. Go fishing, or sailing…whatever you like to
uninterrupted time that is scheduled in advance. During these blocks you accept no phone calls, no faxes, no e-mails, no visitors - no mental interruptions. You focus all your energies on the preplanned items - the strategic and money-making activities. Doing so concentrates your intellect and creativity and produces breakthrough results. You will be astounded by the quantity and quality of the work you produce. For most people, one strategic block per week is sufficient.
do that is non-work related. You need this time to rebuild
BUFFER BLOCK – Buffer Blocks are created to deal with all
of time. The reality is that if you are not purposeful about
of the unplanned and low-value activities—like most email and voicemail—that arise throughout a typical day. Almost nothing is more unproductive and frustrating than dealing with constant interruptions, yet we’ve all had days when unplanned items dominated our time. A Buffer Block allows you to take what would otherwise be inefficient activity and make it more productive by grouping it together. In this way you can handle each item expeditiously and move through the list with some momentum. This allows you to stay focused throughout the day on the important activities. For some, one 30-minute buffer block a day is sufficient, while for others, two separate one-hour blocks may be necessary. The power of buffer blocks comes from grouping together activities that tend to be unproductive so that you can increase your efficiency in dealing with them and take greater control over the rest of your day.
BREAK-OUT BLOCK - One of the key factors contributing to performance plateaus is the absence of free time. So often, entrepreneurs and professionals get caught up in working longer and harder. This approach is an energy and enthusiasm killer. To achieve greater results what’s necessary is not more hours. On the contrary, often it is more free time.
your reserves and to open yourself up to fresh ideas and perspectives. Benjamin Franklin said, “If we take care of the minutes, the years will take care of themselves.” Everything that we achieve in life happens in the context how you spend your time, then you leave your results to chance. While it’s true that we control our actions and not our outcomes, our results are created by our actions. It stands to reason that the actions that we choose to take throughout our day, ultimately determine our destiny. To realize your potential, you must learn to be more mindful about how you spend your time. Living with clear intention goes against the powerful natural tendency to be reactive because it requires you to organize your life around your priorities and consciously choose those activities that align with your goals and vision. When you use your time intentionally, you waste less of it and spend more of it on your high-value actions. Intentionality is your secret weapon in your war on mediocrity. The key to successful time use is not necessarily in eliminating unplanned interruptions but in regularly blocking out time for the important activities. Just gaining control over a few hours each week often has a dramatic effect. Learn to use your time with greater intention and you will not only be more effective, but you will also feel a greater sense of control, less stress, and increased confidence. Try Time Blocking, it works!
n
New York Times best-selling author of “The 12 Week Year,” Brian P. A Break-out Block is a minimum 3 hour block of scheduled time that is devoid of any work related activities and
GIGGLES
24 AUGUST 13
{
Moran speaks to groups around the globe on leadership. To inquire about having him at your next meeting visit www.BrianPMoran.com.
A well balanced sense of humor is the pole that adds balance to your steps as you walk the tightrope of life. —William Arthur Ward
O n -L i n e E d u c a t i o n Open to Anyone & Everyone
On-Line educatiOn OppOrtunities thrOugh ! piaW For The New Employee (MERG) – no CE
For The New Employee (MERG) - NO CE
[
New Agency • Employee N e w A g e n Orientation cy Employee Orientation Delivering Quality • D e l i vService ering Quality Service • P eCoverage r s o n a l L i nBasics es Coverage Basics Personal Lines C o m mCoverage e r c i a l L i nBasics es Coverage Basics Commercial• Lines
P r ePre-Licensing -Licensing
• Insurance, Securities
• Insurance
Open tO AnyOne
Willia m T. Hold Se min a r s – 4 WI C E • Securities
[
• • • •
• Variety of 12 Topics
William T. Hold Seminars – 4 WI CE
F l o• oVariety d – 4ofW I CE Topics E t hFlood i c s – –4 WI4CEW I C E • NFIP CISR O Approved nLine – 8 WI CE
• Commercial Casualty I – 4 WI CE •Ethics Comm ercial Casualty II • Elements of Risk Management L i f e –& 8HWI e aCE lth Essentials CISR•OnLine • I n s uPersonal r i n g C o mResidential m e r c i a l P r Property operty • Insuring • Insurance Personal Residential Property • Insuring Personal Auto Exposures • Insuring Personal Auto Exposures • Insuring • P e r sCommercial o n a l L i n e s Property Miscellaneous • Insuring Commercial Exposures • A g e n c y O p e r a t i oCasualty ns • Agency Operations Webinars (Insurance Community Center) • 2-4 WI CE, No Exam more FFor or m o r e iinformation n f o r m a t i o n and a n d registration r e g i s t r a t i o nvisit v i s i twww.piaw.org w w w . p i a w . o ror g ocall r c a(800) l l ( 8 0261•7429. 0) 261-7429
new!
MARCH 12 21
AUGUST 13 25
I'm
OK
— You're Not by Bob Whipple: MBA, CPLP
OK
When people vent about problem individuals at work or at home, one fact becomes obvious. Most individuals have a long list of things that other people must do to improve but a short list of things they need to change in their own behavior.
I
It is human nature to rationalize one’s own shortcomings while focusing on the obvious improvement needs of others. Since nearly everyone practices this little deception, the world must be rife with almost-perfect people who wish others around them would shape up... Hmmm – something is wrong with this picture... When living or working in close proximity, human beings have a remarkable ability to drive each other crazy. It does not matter if it is a spouse, a sibling, or an office mate. The phenomenon occurs daily for most of us. Here are 10 commonsense tips that can change the pattern, so you will have better relations with others.
1. Reverse the roles. Before venting about another person, think about how that person would describe you to someone else. If you are honest with yourself, it might be a humbling exercise.
2. Don’t sweat the small stuff. Most married couples fight on a daily basis over little things that become habitual annoyances. It is not the 401K account that most couples argue about daily; it is who gets the remote control or why the toothpaste tube is always topless. If we can just remember that the small stuff is really just that, then maybe we can relax a bit.
3. Live and let live. If a cubicle mate hums when she is happy, there is no reason to have a coronary over it. It is her outlet and way to be cheerful. Even though it curdles your skin, why burst her balloon by pointing out her "problem"? If it is an unconscious habit, she will never be able to control it anyway. Buy a pair of noise-canceling head phones and play the kind of music you like. Let happy people be happy or miserable people be miserable. Focus your energy on creating your own sphere of cheerfulness rather than expecting the rest of the world to conform to your paradigms.
4. Punch out early, don’t punch out the person Find some way to get away from the petty squabbles before they bring you to the snapping point. If you cannot actually leave without penalty, it does not stop you from mentally taking a break. Just go for a little vacation in your mind. Actually imagine smelling the giant pines if you love to hike. Feel the frost on your cheeks if you like to ski. Relax in an imaginary hot tub while sitting at your desk - can you feel the bubbles going up your back? Imagining happier places has kept many POWs alive for years; the same technique can keep you sane until 5 o'clock. 26 AUGUST 13
5. Share a treat Just because someone drives you nuts by clipping his nails in the morning is no reason to hate him all day long. Find some symbolic olive branch, and waive it around. Go get two chocolate bars and give him one. Bring in a bag of his favorite coffee. When we change our body language, accentuating the positive, rather than festering about “their problem,” the other person will likely respond in kind.
6. Extend trust The reciprocal nature of trust says that you can improve people's trust in you by extending more trust to them. When we build a higher level of trust, the petty issues seem to melt away, because we are focused on what is good about the other person rather than idiosyncrasies that drive us bonkers. The best way to increase trust is to reinforce (rather than punish) people who are candid with us about our own shortcomings. To do this takes emotional intelligence, and it works wonders at improving relationships.
7. Don’t complain about others behind their back Speak well of other people as much as possible. The old adage “if you cannot say something nice about someone don't say anything at all,” is good advice. When we gripe about others who are not present, a little of the venom always leaks out. Never make a joke about someone at his or her expense. If someone is doing something that really bothers you, simply tell the person about it in a kind way.
8. Stop acting like children The lengths people go to in order to strike back at others for annoying them often resembles a food fight in grade school. Escalating e-mail notes in a kind of grenade battle is a great example of this phenomenon. It is easy to avoid these squabbles by not taking the bait. When you go back and forth with another person more than three times, it is time to change the mode of communication. Pick up the phone or walk down the hall for a chat.
9. Care about the other person If we care enough to not fuss over little things, then we can tolerate inconveniences a lot better. What we get back from others is really a reflection of our own vibes. If we experience prickly and negative reactions from others, we need to check our attitude toward them. While it is convenient to blame others, often we are the root cause of the negativity: they are simply a mirror. The easiest way to care for others is to always follow the Golden Rule.
10. Have your own development plan
Attention Utica E&O Policy Holders:
Start out each day with a few minutes of meditation on how to present yourself better to others. Have a list of behaviors you are trying to improve. This mindset crowds out some of the rotten attitudes that can lead you to undermine other's actions. We all have improvement opportunities. Remember that life is short, and to expend energy bickering
The following PIAW education classes are approved for Utica’s premium discount.
and griping about others really wastes your most precious resource – your time. It is much better to go through life
Please contact Darcy at PIA for details. 1-800-261-7429 or dbrown@piaw.org
laughing and loving than griping and hating. The good news is we have a choice when it comes to the attitudes we show other people. Make sure your choice enriches others as well as yourself.
• Any CIC Update
n
• CIC Agency Management
Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and
• CISR Agency Operations
author in the areas of leadership and trust. He is the author of: The Trust Factor: Advanced Leadership for Professionals,
• Dynamics of Service
Understanding E-Body Language: Building Trust Online, and
• PIAW Ethics and E&O Seminars
Leading with Trust is Like Sailing Downwind. Bob has many years
• PIAW Conducted In-House Seminars
as a senior executive with a Fortune 500 company and with nonprofit organizations. To bring Bob in to speak at your next event, contact him at www.Leadergrow.com, bwhipple@leadergrow.com or
Education Schedule: www.piaw.org or 1-800-261-7429
585.392.7763
Through a new partnership with Vertafore, PIAW is offering FREE access to Sircon online licensing and continuing education management services. Login to: www.piaw.org and get started today! USING SIRCON SERVICES, YOU CAN: • APPLY FOR A LICENSE • RENEW YOUR LICENSE • LOOK UP AVAILABLE COURSES • CHECK LICENSE RENEWAL STATUS • CHECK LICENSE APPLICATION STATUS • REQUEST A LETTER OF CERTIFICATION CERTIFI • UPDATE YOUR NAME OR ADDRESS • FIND YOUR LICENSE NUMBER/NPN • CHECK YOUR STATUS WITH A STATE • MAINTAIN YOUR FIRM ASSOCIATION • UPDATE YOUR ADDRESS • UPDATE YOUR EMAIL ADDRESS • PRINT YOUR LICENSE © 2011 Vertafore, Inc. Vertafore, the Vertafore logo and design, Unleash your potential, and the Vertafore trademarks listed are owned by Vertafore, Inc.
From the friendly voices of our customer service staff to the personal visits by our marketing managers and underwriters, to the promptness of our claims adjusters, we are told time and again …
Our people set us apart. For information about becoming a Partners Mutual Insurance Agent please contact Lyn Schumann at 262.432.3430 or schumann.lyn@partnersmutual.com
Where Better Service Matters | Since 1931 AUGUST 13 27
Rely on
stabili ty. Rely on Wilson. Quality . Stability . Teamwork . Service . Integrity
Our people make the difference. Contact us today to see how you can become part of the Wilson Mutual family.
3330 Stahl Road • Sheboygan, WI 53081 800-242-7708 www.wilsonmutual.com
Brian Christ, District Sales Manager
Our coverage enhancements and endorsements go Beyond the expected.® AUTO • Roadside Rescue • Replacement Cost Coverage • Enhanced Coverage for Rental Cars • Pet Coverage • No Deductible on Glass Claims • Accidental Death Coverage • Tire Protection Coverage • Non-Standard Auto Program
HOME • Identity Fraud Coverage with Resolution Service • Pet Health Insurance
• Water & Sewer Line Breakage • Equipment Breakdown Coverage • Earthquake Coverage • Water Back-Up of Sewers & Drains • Personal Injury
BUSINESS • Employment Practices Liability Insurance • Employee Benefit Liability Coverage • Equipment Breakdown Coverage • Water Back-Up of Sewers & Drains • Loss Control Services • Workers Compensation Claim Specialists • Employee Wage Expense Continuation
LIFE • E-App for Most Life Products • Access to Life Insurance Planning Specialists
• Term Insurance Guaranteed Conversion Program • Children’s Single Premium Term Plan • Long Term Care Endorsement
HEALTH • Personal Customer Service • Extensive PPO & Transplant Facility Networks • Benefits Paid Faster than Industry Average • Wellness Coverage • Online Access to Claim Information • TPA Services
2505 Court Street • Pekin, IL 61558 • 800-322-0160, Extension 2394 • www.pekininsurance.com
Offering some of the most innovative products available in the industry today, we strive to be the easiest company to do business with. Learn more. 28 AUGUST 13
Choose 5 of 9 to improve your 9 to 5. CISR EDUCATION FOR INSURANCE & RISK MANAGEMENT PROFESSIONALS
It still takes 5 courses to earn a CISR designation but now you have the flexibility of 9 course options. This allows you to focus on what’s important to you. We understand not everyone learns the same way or even at the same pace, so we offer courses in the classroom, online and in-house. Find out how CISR can improve your 9 to 5. Call or visit us on the web today.
• • • • • • • • •
Commercial Casualty I Commercial Casualty II Insuring Commercial Property Insuring Personal Auto Exposures Insuring Personal Residential Property Personal Lines Miscellaneous Agency Operations Elements of Risk Management Life & Health Essentials
www.piaw.org 1-800-261-7429 AUGUST 13 29
30 AUGUST 13
S imple
Strategies for agency growth By Rick Dennen
A
Ask agency owners about their goals, and one of the most common answers you’ll hear is that they want to grow. They’re not always as clear about how they plan to achieve that growth. Fortunately, there are some very simple strategies that offer excellent ways to build up your book of business.
First, where are you now? It’s hard to know how much to grow when you’re not entirely sure of how you’re doing. Ask most agency owners about their current performance, and you’ll either get vague answers such as “we’re doing pretty well” or some single measurement, such as “our revenues are 7 percent ahead of last year” or “we’ve written 126 more policies than last year.” Developing and monitoring more specific (and more meaningful) metrics will give you a clearer view of your agency’s current financial position. More important, it will provide a benchmark against which you can measure your growth efforts. Which metrics matter most? That depends entirely upon what’s most important and most useful to you. In addition to financial metrics such as commission income, you can develop other quantitative metrics such as the number of clients on the first of each month, how many policies the average client has, and how many new policies you open each month. Once you’ve created and begun to track those metrics, you can establish monthly targets, giving you a way to review your progress every 30 days.
of business. Have your clients placed all of their types of coverage with your agency? For example, do you have clients who have a homeowners’ policy with you, but turn elsewhere for their auto coverage? Do your automotive clients turn to you for life or disability insurance? Marketing experts say that it takes six times as much money and effort to sell to someone new as it does to increase business from someone who already knows and trusts you. In other words, selling current clients on additional coverage (or up-selling them to higher-profit policies) will cost you one-sixth of what you would normally invest in finding new clients. An additional advantage is that the more policies clients have with you, the less likely they’ll be tempted to take their business down the street when another agent offers a lowball quote on their car insurance.
Outthink, don’t outspend For many businesses, the standard way to grow is to invest money in advertising and other marketing tools. That can work, but it tends to be costly, and it may be difficult to track the effectiveness of your effort. If you do decide to take that approach, make sure you establish measurable objectives and monitor your progress. You should be able to determine clearly whether your investment is paying a reasonable return. If it is, don’t hesitate to increase that investment, because the return will be likely to grow, too. However, trying to grow by throwing large amounts of money into marketing efforts rarely provides satisfactory
Deepen customer relationships
results. Instead, focus your effort on finding smarter ways
Before stepping up costly advertising and other efforts to find new clients, take a closer look at your current book
to grow your business that don’t require such large upfront expenditures, such as the strategies that follow. [continued on page 32] AUGUST 13 31
Strategies . . . [continued from page 31]
Ask for referrals
Add new lines
If clients are satisfied with the products you sell and the service you provide, they may be willing to recommend your agency to friends and relatives. However, they may not think to do that on their own. One way to encourage them to make referrals is to send a letter asking for them to do that on your behalf. A friendlier, less openly aggressive way is to send a handwritten thank-you note at renewal time with a couple business cards and a P.S. saying, “Have a friend who may be looking for an agent? We hope you’ll share our card.”
If you believe that you’ve already tapped out your existing clients’ needs with your current product mix, consider expanding into additional coverage areas such as long-term care insurance or commercial lines that may be needed in your area. Take a close look at the other agencies in your area to see if you can detect any gaps in the marketplace. If a particular client segment appears to be underserved, it may be an excellent target for your marketing efforts.
When you do get new business as the result of a referral, always make a point of thanking the client. At a minimum, send a handwritten thank-you note. For even more impact, enclose a gift card for a local restaurant or something useful like coupons for free car washes. The amount of potential long-term revenue from those referrals far outweighs the small cost of those gifts. Your clients will appreciate your generosity (and mention it to others).
Improve productivity Making your agency more productive means you’ll be able to handle more business, and also that you’ll handle that business more productively. For starters, put value on your own time and make sure you’re using the limited number of hours you have each week in the most rewarding ways. Don’t be afraid to delegate tasks to your employees. If your time is best spent selling, you shouldn’t waste it handling clerical functions that an employee can assume on your behalf. Consider adding technology that will allow your team to work smarter and faster. You may hesitate before investing in upgraded computers or a better copier, but if those devices improve productivity, you’ll recoup those upgrades in no time.
Expand your footprint Once you’ve built up a solid book of business in your community, consider expanding into other nearby areas. Look for areas that don’t have an abundance of other agents. You can reach into those communities using direct mail programs, join local civic and business organizations such as the Chamber of Commerce, or even open a branch office for your agency. The good thing about strategic approaches is that they generally provide long-term growth, instead of brief boosts to your bottom line. In addition, that growth tends to build on itself over time, increasing your income and enhancing the value of your agency. n Rick Dennen is president and CEO of Oak Street Funding, which provides commission-based lending for insurance agents that need capital to buy, build or sell their agency. Dennen is a licensed agent in the state of Indiana for Life, Accident & Health products and a licensed Certified Public Accountant in the state of Indiana. In addition, he holds an MBA in finance and is an instructor of venture capital and entrepreneurial finance at the Indiana University Kelley School of Business. He can be reached at rick. dennen@oakstreetfunding.com.
Attention CICs! Exciting update options. CIC Graduate Ruble Seminar October 3 & 4, 2013 | Marriott Madison West – Middleton, WI February 18 & 19, 2014 | West Bend Mutual Ins. Co. – West Bend, WI 16 WI CE (4 are optional Ethics)
visit www.piaw.org or call PIA at 1-800-261-7429
32 AUGUST 13
ÂŽ
Help Build Your Familyâ&#x20AC;&#x2122;s Financial Future With
PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access to a variety of highquality, competitively priced insurance plans. Plans available include: > Basic Term Life** > Voluntary Term Life > Dependent Term Life > Hospital Indemnity > Long Term Disability > Short Term Disability > Business Overhead Expense > Accidental Death & Dismemberment
PIA SERVICES GROUP INSURANCE FUND
*PIA National membership, when required, must be current at all times. **Only available if 100% employer paid and if the employer and 100% of the employees enroll. No medical underwriting necessary up to guaranteed issue limits.
For additional information about PIA Trust Insurance Plans, please contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759. Additional information is also available on-line at www.piatrust.com. Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable. Underwritten by Unimerica Insurance Company, Portland, ME. Administered by Lockton Risk Services.
AUGUST 13 33
34 AUGUST 13
In s u r an c e
Producers can be a significant E&O exposure
by Curtis M. Pearsall, CPCU, AIAF, CPIA
Virtually every year, producers rank first as the most prominent agency staff member who is the alleged “wrongdoer” in an errors-and-omissions claim. Upwards of half of E&O claims are the result of supposed errors or omissions made by producers. When considering the other levels within an agency – customer service, claims, reception, accounting, etc. – it’s really not a surprise that producers have this inglorious distinction. After all, they are the face of the agency for most new business opportunities and for a significant number of renewals, especially commercial lines.
P
Producers have distinct duties and responsibilities, most of which must be handled carefully to avoid potential E&O litigation. While the degree to which these men and women perform this job professionally and ethically can greatly determine the agency’s success, they can also greatly impact, positively or negatively, the agency’s errors-and-omissions risk.
Strong technical knowledge a must It is imperative for producers to possess strong technical knowledge for interactions with prospects and customers. After all, to a large degree, the public relies on them for how best to protect their assets. This includes knowing the various classes and lines of businesses to ensure the public is educated and informed properly. Due to changes in the insurance industry, including the periodic introduction of new products, the commitment to learning should be ongoing, regardless of the years a producer has performed his or her job. Many would contend it is difficult to know everything about every class and line of business. This is true, to a large degree. An exposure analysis checklist can help. (Producer
Plus through Vertafore and Producer Online through Rough Notes are two of the more prominent checklists.) A checklist provides solid, in-depth detail on over 650 classes of business and the applicable lines of business. Before going out on a sales call, it would be beneficial for a producer to review this detail as it will enable him or her to converse more intelligently about the exposures and issues facing that specific account.
Sales training Yet, it takes more than technical knowledge to be successful and to minimize the potential of an E&O matter developing. Knowledge with no sales skills – or sales skills without knowledge – is a “glass-half-full” scenario, which can be dangerous for an agency from an E&O perspective. Learning the sales structure/process is critical because how a producer conducts himself or herself during the complete sales process will likely determine the success level achieved and to what degree he or she is an E&O risk. Sales training does not have to be expensive. Affordable, quality sales and [continued on page 36] AUGUST 13 35
Producers . . . [continued from page 35] marketing training is available. The Certified Professional Insurance Agent (CPIA) program through AIMS provides valuable training focusing on pre-sale, sale and post-sale issues.
Know the client Quality exposure analysis checklists provide the ability to build a questionnaire that will enable the producer to know the exposures faced by that specific risk. These should also help to identify potential sales opportunities. A recent industry article noted that only 30 percent of the small businesses affected by Super Storm Sandy had business interruption coverage. Did the producers on these accounts ever discuss the coverage with their respective clients? This question will no doubt be addressed during any potential E&O litigation.
Listen When interacting with a client, it is crucial for producers to realize that in many, if not all, states, an insurance producer (agent/broker) has a common-law duty to obtain the coverage the client specifically requests within a reasonable time or inform the client of the inability to do so. Accordingly, producers must do a fair share of listening to what the customer/prospect asks. “Memorializing” these client discussions helps ensure there is no misunderstanding between the parties.
Watch your words Due to the tremendous pressure to sell, producers may be inclined to position themselves and their agency in the best favorable light. While various marketing “puff” may enhance the ability to be successful, producers must be careful and deliberate in the words and phrases used for promotion. For example, advising customers and prospects one is an “expert” or “specialist” could be problematic because it has the potential to raise the legal liability bar to the level of “special relationship.” What’s more, phrases such as “we make sure you are properly covered” should be avoided. That might sound impressive, but can also lead to a potential “special relationship” standard.
{
Document, document, document Inherent in all of the interactions, whether with the prospect or the carriers/markets being used, is the need for prompt and professional documentation. This could be a key issue if a problem develops. The quality, promptness and professionalism of the documentation will heavily determine the direction of the E&O claim. As a result, documentation is not an option – it is mandatory. While it might be nice that the customer always buys all of the coverages noted in the proposal, it is likely not the norm. Because of this, producers should get the customer’s sign-off on the coverages/limits they will not be securing.
Check the policies You got the order – congratulations. It’s now time to issue a binder and order the policies. Upon receipt of the policies, producers need to spend the time to review them to ensure they reflect what was ordered. Once this review has been performed and the policies have been verified for accuracy, produces should promptly deliver the policies. In all but a few states, the client has a duty to read the policy, so producers should strongly encourage the customer to do so. If the customer has questions, the agency should be contacted as soon as possible. Being a producer requires tremendous knowledge, professionalism and attention to detail. This will go a long way to ensuring success. Without these attributes, there’s an E&O nightmare waiting to happen. The right choice should be easy to make. n
Curtis M. Pearsall, CPCU, AIAF, CPIA President, Pearsall Associates Inc. and Special Consultant to the Utica National E&O Program
Diminishing Returns
GIGGLES
36 AUGUST 13
The county hired Milton to paint a white line down the middle of the highway between two towns that were 20 miles apart. They gave Milton a can of paint and a brush and drove him out to the city limits, where they left him to his work. On his first day, Milton got off to a good start and he painted a white line seven miles long. The next day, however, he got only four miles further. At the end of the third day, he'd made less than a mile of progress. As he checked out, his supervisor asked why he was getting less and less far as time went on. Milton shrugged. "It takes me longer and longer to get back to the bucket each day." —James Dent
GERMANTOWN MUTUAL INSURANCE COMPANY W209 N11845 Insurance Place PO Box 1020 Germantown, WI 53022-8220 Phone (262) 251-6680 Fax (262) 623-3130 www.gmic.com
SERVING POLICYHOLDERS AND INDEPENDENT AGENTS IN WISCONSIN SINCE 1854
Right in your backyard!
With Continental Western Group® in your backyard, you have the comfort of knowing we are responsive to your needs and the confidence of knowing we are dedicated to our partnership! Call Fritz Weitendorf, our Wisconsin Representative at 1-877-643-0219 ext 3828.
www.cwgins.com
Looking for Success? The Feeling Is Mutual. Rockford Mutual is committed to building strong agent relationships and offering competitive products and outstanding claim service. And that means, when you’re successful, we’re successful. Ready to get started? For more information about becoming an independent agent for Rockford Mutual: please contact us at 815/489-3158 or visit www.rockfordmutual.com
AUGUST 13 37
PROFESSIONAL INSURANCE AGENTS OF WISCONSIN, INC. OFFICERS
DIRECTORS
Mr. Jeff J. Glass, President A.F. Glass Insurance Agency PO Box 1149 Lake Geneva, WI 53147 Phone 262-248-5555 Fax 262-248-5544 jglass@glassinsurancecenter.com
Mr. John W. Klinzing, CIC Affiliated Ins. Agencies of WI, LLC 3830 Atwood Ave. Madison, WI 53714 Phone 608-310-3924 Fax 608-441-8787 johnk@affiliatedllc.com
Mr. Trey Neher, CIC, CISR THZ Insurance Group 420 E. Northland Ave. Appleton, WI 54911 Phone 920-730-0123 Fax 920-833-6870 tneher@thzins.com
Ms. LouAnn Herriges, CIC, CISR Vice President Anderson's Insurance Associates 17500 W. Liberty Lane New Berlin, WI 53151 Phone 262-789-8500 Fax 262-754-6038 louannh@iaanetwork.com
Mr. Dennis Kuhnke, CIC, CPIA PIAW National Director Jack C. Loyda & Associates, Ltd. 4414 N. Oakland Ave. Shorewood, WI 53211 Phone 414-332-5150 Fax 414-332-7267 dkuhnke@loyda.com
Ms. Tracy A. Oestreich CIC, AU, CPIA Anderson Ins. Associates, Inc. W177N9856 Rivercrest Dr., Ste. 215 Germantown, WI 53022 Phone 262-789-8500 Fax 262-754-6038 tracyo@iaanetwork.com
Mr. Rick Clements, LUTCF, MDRT Treasurer Clements Ins. Agency, Inc. 317 N. 6th St. Wausau, WI 54402 Phone 715-842-1664 Fax 715-848-3337 rick@clementsagency.com
Ms. Kathy M. Mulder Nolan Insurance Agency LLC PO Box 238 Brandon, WI 53919 Phone 920-346-2241 Fax 920-346-5600 kmulder@nolanins.com
Mr. Brian MacGillis, CPIA Secretary MacGillis Agency, Inc. W3934 County Highway H PO Box 100 Fredonia, WI 53021-0100 Phone 262-790-0000 Fax 262-790-0004 brian@macgillisinsurance.com
Darcy Brown Member Benefits Coordinator dbrown@piaw.org Heather Falk, CISR Bookkeeping hfalk@piaw.org
September 2013
10
CISR AGENCY operations Rothschild (8 WI CE)
11
CPIA Wauwatosa (7 WI CE)
11-13
CIC AGENCY MANAGEMENT Rothschild (20 WI CE, 4 of 20 Ethics)
24, 25
CISR PERSONAL AUTO Green Bay, Brookfield (8 WI CE)
2
CISR PERSONAL RESIDENTIAL Madison (8 WI CE)
3-4
CIC/RUBLE Middleton (16 WI CE, 4 of 16 are optional Ethics)
12
Hot Topic/William T. Hold Green Bay (8 WI CE)
13-15
CIC COMMERCIAL PROPERTY Green Bay (20 WI CE)
3, 4
CISR, CCI Brookfield, Madison (8 WI CE)
February 2014
January 2014
10 ETHICS Milwaukee (4 WI Ethics CE)
38 AUGUST 13
October 2013
November 2013
Mandy Behrens Administrative Assistant mbehrens@piaw.org
Brenda Steinbach Education & Convention Director bsteinbach@piaw.org
March 2014
Coming Events
Ronald Von Haden, CIC Executive Vice President rvonhaden@piaw.org
Becca Prestbroten Special Project Coordinator bprestbroten@piaw.org
December 2013
STAFF PIA of Wisconsin, Inc. 6401 Odana Road Madison WI 53719 Phone: 608-274-8188 Toll Free: 800-261-7429 Fax: 608-274-8195 Toll Free Fax: 866-203-7461 www.piaw.org
11-13
CIC PERSONAL LINES Milwaukee (20 WI CE)
14-16
CIC LIFE & HEALTH Middleton (20 WI CE)
12
CISR ELEMENTS OF RISK MANAGEMENT Rothschild (8 WI CE)
13
CISR ELEMENTS OF RISK MANAGEMENT Brookfield (8 WI CE)
18-19
CIC/RUBLE West Bend (16 WI CE, 4 of 16 are optional Ethics)
19
CISR COMMERCIAL CASUALTY 2 Madison (8 WI CE)
25
ETHICS Green Bay (8 WI Ethics CE)
18-19
CIC/RUBLE West Bend (16 WI CE, 4 of 16 are optional Ethics)
AUGUST 13 39
6401 Odana Road Madison, WI 53719 Change Service Requested
Professional Insurance Agents of Wisconsin, Inc. 6401 Odana Road • Madison, WI 53719 (608) 274-8188 • (800) 261-PIAW • FAX (608) 274-8195 • TOLL FREE FAX: (866) 203-7461 www.piaw.org
MEMBERSHIP APPLICATION Agency Name_______________________________________________________________________________________________________________ Street Address_______________________________________________ PO Box_______________________________________________________ City, State, Zip_______________________________________________ County_______________________________________________________ Phone_______________________________________________________ FAX_________________________________________________________ E-mail Address_______________________________________________ Website Address______________________________________________
Primary Contact Information:
The Primary Contact will receive a copy of the Wisconsin Professional Agent magazine and all mailings from PIA State and National. The Primary Contact will have voting privileges at both PIA State and National.
Name & Designation
DOB
Gender
Employment Status
Part-time
Magazine
Nat’l Voting
Privilege
o o
Male Female
o o
o
Corporation
Licensed Owner Licensed Producer
INCL INCL
o
Agency Information: Agency Type:o Sole Owner
o
Top 3 P&C Companies (list in order)
Partnership
Other Association affiliated with_____________________________
1)__________________________ 2)__________________________ 3)____________________________
Which Agency Management System are you using____________________ E&O Carrier_______________________________________Exp. Date______________ Annual P&C Prem. Vol._____________________________
Calculate Membership Amount Due:
Part-time employees count as one-half. If count ends in half, drop half. # Owners_________+ # Producers_________+ # Licensed staff_________+ # Unlicensed staff_________= Total Agency Size_______________ DUES SCHEDULE Total Agency Size $Amount Total Agency Size $ Amount 1 335 16 890 2 375 17 930 3 415 18 965 4 450 19 1005 5 490 20 1030 6 525 21 1070 7 570 22 1105 8 605 23 1145 9 640 24 1180 10 675 25 1220 11 710 26 1255 12 750 27 1295 13 780 28 1330 14 815 29 1370 15 855 30 & Over 1400 I certify that the information on this application is true and correct. Signed_______________________________ Dated_______________________
Total Amount from Dues Schedule $_______________ Send:
o
Check
o
MC
o
VISA
o
DIS
o
AMEX
Card No._________________________________________________________ Exp. Date_________________________________________________________ Name as it appears on card:__________________________________________________ Billing address if different from above: __________________________________________________________________ __________________________________________________________________ Payments to PIA are not deductible as charitable contributions for federal income tax purposes. However, they may be deductible under the provisions of the Internal Revenue Code as a business expense.