October 2017 Wisconsin Professional Agent

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PROFESSIONAL AGENT October 2017

2017-2018 B

oard of Dire

ctors

What's Inside? When a Contractor Works Out of State..........................10 New Members.....................11 Six Keys to Shed Fear........14 Convention Pages..............16 YPC Annual Golf Pages.....24 What is Your Copyright IQ? ...................................................26 Education Section..............29 Building Your Sales Machine ...................................................36 Is the Carrier Providing......38 When is a Reissue Not a Renewal?...............................42

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From the

President Jodi Cordes, CIC, CRM, CPIA — President, PIA of Wisconsin

Without You, There is No Association. Wondering where your summer went? Me too…. Fall is here, the air is crisp, and the trees are so colorful. It is a great time of year to take that ride down a country road on a nice sunny day, on the motorcycle, bike, or car listening to the leaves rustle as you drive by, soaking up the sun and admiring the colors of fall. As natures begins to hibernate, PIAW office is flourishing. Fall is the time that PIAW is in full swing with new committees reviewing their goals and objectives set forth as an organization and for our members. Here is a quick summary of some items that our committees will be working on this year based on their first “kickoff” meeting held in Madison on August 31st. Agent Services & Public Relations – This committees main initiative is to remind you of all the benefits you get for being a member of the PIAW. They will also be helping to promote some newer benefits that are available to you, such as the FREE Legal Hotline and the new Cyber Liability product that PIA National is rolling out to its member agents. (Make sure you check out the new Accident Reporting Kit that Agent Services put together for members to purchase as a very low cost (only $1.00 each). This is a nice plastic sleeve that you can provide to your clients with your business card enclosed to keep in their vehicles as a resource in the event of an accident.) Automation – They are really going to get things rocking this year by putting together a Cyber workshop to provide you with useful information on cyber crimes as well as tools to apply. They also be want to hear from you via a survey to determine the agency needs in technology and how the PIAW may be able to assist. Convention – The committee is already very busy with planning the popular Winter Get Away which will be held January 31 – February 2, 2018 in Minocqua. The annual convention is well into

the planning stages to be held in La Crosse, August 1 – 3, 2018. Please be sure to put these dates in your calendar now! Education – The education committee is constantly looking to make schedules convenient, subject manners fresh, and the speakers enlightening. (Side note: CPIA is a great series of classes that are not only for sales people, everyone in your office will benefit with learning how to engage with prospects, customers, and others.) Legislative – There is always about 50 things this committee is reviewing with our lobbyist. This is a constantly moving process. Keep your eye out for new legislative section at piaw.org that will be updated on a regular basis with positions on insurance issues the PIAW involved in. Membership & Nominations/Awards – Simply, we want to retain and grow our membership. The Membership committee is busy talking with agents to ensure they are aware of the benefits of being a member. They are also looking for those interested in serving the association on a committee, as a board member, or working into a leadership role. Young Professionals Club – These guys and gals have the exciting task of awarding scholarships to young folks that are looking to enter in this fine world of insurance. They also have the work behind it of raising the funds that they give away. This amount has been up to $25,000 in a year. This is no small task. These are exciting times for PIAW, and if you choose to be more involved please let us know at the PIAW office or any one of the board of directors. PIAW is here for you, the members, without you there is no association!

OCTOBER 17 3


Memos from

Madison Ron Von Haden, CIC — Executive Vice President, PIA of Wisconsin

PIA Offers a Very Strong Cyber Liability Policy for Your Agency. 143 MILLION American consumers have had their personal information compromised as a result of hackers gaining access to company data at Equifax! Equifax is one of the three major consumer credit reporting agencies in the U.S. The data includes Social Security numbers and driver’s license numbers. 143 million is nearing half of the entire population of the United States. “This is about as bad as it gets” said Pamela Dixon, executive director of the World Privacy Forum. “If you have a credit report, chances are that you may be in this breach. The chances are much better than 50 percent.” The crooks exploited a weak point in the company’s website software according to Equifax In addition to other material, the hackers were able to retrieve names, birth dates and addresses. This could lead to siphoning far more personal information, including medical histories, bank accounts and employee accounts. Using the stolen data, identity thieves can impersonate people with lenders, creditors and service providers who rely on information from Equifax to make financial decisions regarding potential customers. “On a scale of 1 to 10, this is a 10,” said fraud analyst Avivah Litan. Equifax is offering consumers the opportunity to freeze their credit reports and one year of free protection services but that may fall short of what consumers need because the data could be bought and sold by hackers for years to come. Consumers can go to the Equifax website to see if their information has been compromised. The site encourages customers to offer their last name and the last six digits of their Social Security number. Consumers will not get confirmation about whether they were affected but the site provides and enrollment date for the protection services, which may not start for several days.

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Still don’t think your agency and your customers need cyber liability coverage?? Think again. If a company as large as Equifax can be brought to its knees by hackers, imagine how easily they could get past any security measures you have in your office systems and web site. PIA offers a very strong cyber liability policy for your agency and will soon offer you the ability to sell the coverage to your customers. Contact Heidi at the PIAW office for a quote. She can be reached at (800) 261-7429 or hhodel@piaw.org. LOSS ONLY OR LOSS AND LITIGATION?: There seems to be a fair amount of confusion when it comes to the difference between a “Loss Only Deductible” and a ”Loss & Litigation Deductible” on an E&O policy. Although you will almost certainly learn the difference when you have a claim, which is not the time to find out! A loss only deductible (aka “First Dollar Defense” or “Damages only”) is the better deductible option when it comes to having a claim against your agency, because you don’t have to pay your deductible unless, and until there is a settlement or judgement against you. You could go through the whole claims process, with the E&O insurer racking up tens of thousands in your defense, and end up paying nothing if you are not found to be at fault. On the other hand, a “loss & litigation” or “loss & expense” deductible may have a slightly lower premium, but in the event of a claim against your agency, you are responsible for your deductible as soon as defense expenses begin to accrue. Utica Mutual reports that, although they incur defense costs, they are able to close 60% -65% of E&O claims without a loss payment. AND REMEMBER…..My mom made two dishes: Take it or leave it.



From the

Boardroom Tom Budzisz, CPIA, Director of PIAW

How Lucky Are We? This month’s article actually was on another topic, but I changed the topic when we all witnessed the horrific after effects of Hurricane Harvey, the natural disaster/nightmare storm affecting people in Texas and Louisiana. My sister-in-law, brother-in-law, and their 3 children live in Katy, Texas which is about 30 miles west of Houston. Both my sister-in-law and brother-in-law work in downtown Houston. They are all doing well and were lucky enough to escape the storm with only a few missing shingles from their roof. That was not the case for a lot of their friends and relatives who also live in Houston. They have friends and family who have lost their vehicles due to flood waters, roofs lifted from their homes due high winds, and entire homes destroyed and lost due to flooding and tornadoes. In the 18 years my sister-in-law has lived in Houston, she said she has never experienced the constant tornado warnings and flooding they saw with this storm. My brother-in-law, Vijay, knew his family was safe during the storm, so he, like many others in Houston who were fortunate enough to not experience flooding, was determined to help his friends and neighbors who needed help. He knew one friend was in trouble, but he had no boat to assist them. He ventured out to a local gas station where he knew he could find boats to help. He was persistent and paid the owner to use his boat so he could paddle to his friend’s house. His friend was cold and wet, but the friend, his friend’s son and their dog were well. The friend’s 90-yearold neighbors needed assistance as well and Vijay was able to get them out of their home and to the hospital. The 90-year-olds were cold and in shock and required medical care, so Vijay helped them find treatment at the hospital.

Later that evening, Vijay helped another family from their flooded home as well. Food and shelter was scarce, so Vijay and Amy took his friend, their son and their dog into their home. They had no other place to go. Vijay found a Walmart that was still open. There was only a limited number of store employees who were able to get to work, so the lines were very long at the stores that did open. Many stores were closed. Vijay waited hours to check out so they had enough food and water. Like many in Houston, his friend lost his car, his home, and all his personal property. He left with a backpack and some dog food. Vijay and his family do not have flood insurance; nor does his friend who lost everything but the clothes on their back. With the record setting rain fall of over 51 inches and the number of residents who call Houston home, it will be months to years before normalcy will return to this city. Schools were open for three days prior to Harvey, many of them are now flooded and uninhabitable. My brother-in-law’s family do not know when or where their children will attend school since one school their children attend was flooded. Cars, buses, trucks and other vehicles experienced flooding and will need to be replaced, but the people of Houston, with or without insurance, are determined to move forward. They are pitching in and helping each other get through one of the worst storms the U.S. history and are helping in any way they can. Others throughout the nation are helping as well. How lucky are we? The nation still comes together and finds solutions when times are tough.

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OCI Administrative

Actions Ted Nickel — Commissioner of the Office of Insurance

Madison, WI—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 D. Juane A. Anthony, 7054 Burcot #34, Las Vegas, NV 89156, had his application for an insurance license denied. This action was taken based on allegations of having a criminal conviction that may be substantially related to insurance marketing type conduct. Robert Arredondo, 12314 Abbey Park, San Antonio, TX 78249, had his application for an insurance license denied for 30 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Oklahoma on a licensing application. Lucas L. Ault, 2223 9th Ave., Chetek, WI 54728, agreed to the 31-day denial of his insurance licensing application and agreed to the issuance of a 2-year conditional license. These actions were taken based on allegations of failing to disclose a criminal conviction on a licensing application and having criminal convictions that may be substantially related to insurance marketing type conduct.

Tia L. Chanthavong, 856 Kellogg St., Green Bay, WI 54303, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes. Jason J. Ellingson, 221 S. Main St., Luck, WI 54853, had his application for an insurance license denied for 60 days. This action was taken based on allegations of failing to timely disclose an administrative action taken by the Wisconsin Department of Financial Institutions while previously licensed by OCI. Cory D. Gates, 1218 Cardinal St. NW, Bangor, WI 54614, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes. Joshua R. Giebner, 405 S. Page St., Apt. 1, Stoughton, WI 53589, 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.

James A. Bond, 2237 Marshall Pkwy., Waukegan, IL 60085, 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 Illinois on a licensing application.

Daniel M. Jemison, 10540 S. Western Ave., Ste. 309, Chicago, IL 60643, had his application for an insurance license denied for 30 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.

Goldy Brown, III, 1633 Prairie Ave., Montgomery, AL 36117, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Aaron Johnson, 720 S. Marquette St., Apt. 308, Racine, WI 53403, had his application for an insurance license denied. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application and having criminal convictions that may be substantially related to insurance marketing type conduct.

Daniel J. Burke, 80 St. Paul St., Ste. 4F, Rochester, NY 14604, 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. 8 OCTOBER 17

Teresa M. Jorgensen, 1202 S. 5th Ave., Wausau, WI 54401, had her insurance license revoked. This action was taken


based on allegations of owing delinquent Wisconsin taxes.

legations of owing delinquent Wisconsin taxes.

Michael A. Knox, 1062 Timbervale Trl., Highlands Ranch, CO 80129, 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.

Shawn A. Pehrson, 230 Mahtomedi Ave., Mahtomedi, MN 55115, had his application for an insurance license denied and his hearing request dismissed. These actions were taken based on allegations of failing to disclose an administrative action taken by the state of Minnesota on a licensing application, having an administrative action involving the violation of another state's insurance laws, failing to obtain and provide evidence of a federal crime waiver, failing to respond promptly to OCI, and withdrawing his appeal request at the commencement of the scheduled administrative hearing.

Yeng Kong Lee, 3616 W. National Ave., Milwaukee, WI 53215, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes. Melissa T. Maker, 2734A S. Superior St., Milwaukee, WI 53207, had her application for an insurance license denied and her hearing request dismissed. These actions were taken based on allegations of failing to disclose pending criminal charges on a licensing application, having unpaid civil money judgments, providing false information on a licensing application and in response to OCI inquiries, and failing to appear at a hearing as ordered. Kevin J. Mann, 3126 River Valley Rd., Waukesha, WI 53189, 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. Thomas C. Moore, 1000 S. 50th Ave., Apt. 36, Wausau, WI 54401, 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. Melissa Mortimer (aka Melissa Matteson), 727 Prairie Ave., Hillsboro, WI 54634, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes. Wanda F. Nash, 9030G N. 95th St., Milwaukee, WI 53224, had her application for an insurance license denied. This action was taken based on allegations of having a criminal conviction that may be substantially related to insurance marketing type conduct, failing to disclose criminal convictions on a licensing application, owing delinquent child support, having unpaid civil money judgments and court costs, and failing to apply for and obtain a federal crime waiver.

Julie L. Roelke, 493 Tower Rd., Unit A, Rio, WI 53960, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes. Brad S. Sauer, 114 N. Broadway, Apt. 2, De Pere, WI 54115, had his application for an insurance license denied. This action was taken based on allegations of failing to disclose a criminal conviction on a licensing application and having unpaid court obligations and insurance company money judgments. Catherine M. Schelter, 3150 S. Pinewood Creek Ct., Apt. 311, New Berlin, WI 53151, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes. Paul R. Schultz, 1912 N. Royal Birkdale Dr., Vernon Hills, IL 60061, had his application for an insurance license denied for 60 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Illinois and an employment termination for cause on a licensing application. Dino Shackelford, Jr., 4363 W. Dean Rd., Apt. 258, had his application for an insurance license denied. This action was taken based on allegations of owing delinquent child support and having criminal convictions that may be substantially related to insurance marketing type conduct. Amanda Tallent, 107 N. Pelham St., Apt. 2, Rhinelander, WI 54501, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Christopher R. Obst, 2341 S. Sunnyslope Rd., New Berlin, WI 53151, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Gregory J. Thoemke, 707 1st St., P.O. Box 365, New Glarus, WI 53574, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Falisa Onipede, 3723 N. 85th St., Milwaukee, WI 53222, had her 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.

Allen Thomas, P.O. Box 793, Green Bay, WI 54305, had his application for an insurance license denied for 60 days. This action was taken based on allegations of failing to disclose a criminal conviction and an administrative action taken by the state of California on a licensing application.

Lisa Parker, 9803N State Rd. 27, Hayward, WI 54843, had her insurance license revoked. This action was taken based on al-

David R. Tillou, 10226 167th St. W., Lakeville, MN 55044, (Continued on page 45) OCTOBER 17 9


How to Prepare Underwriting and Claims when a Contractor Does Work Out of State Hurricane Harvey, which battered Houston with record amounts of rain and flooding last month, is estimated to be one of the costliest weather disasters in U.S. history, and Irma is expected to cause record-breaking damage as well. Thus, homes and businesses will need to be rebuilt. It’s common after a natural disaster for contractors from other states to send or subcontract a crew to help rebuild and preserve the devastated region. From an insurance carrier perspective, it’s important for commercial underwriting and claims teams to prepare if a customer does work outside their normal geographic area. What happens if the customer files a claim? How does it impact their workers’ compensation coverage? Do your teams have a process? This article outlines important questions commercial underwriting and claims should discuss to handle these types of situations. Underwriting In the case of Hurricane Harvey, are there potential implications if your customer, a contractor, travels from Wisconsin to Texas to temporarily work? Most likely so. Here are a few questions to discuss with your commercial underwriting team and independent insurance agency partners to prepare for these circumstances. • • • •

Will the contractor be taking existing employees or hiring employees temporarily? How might payroll be impacted and to what degree this may impact workers’ compensation coverage and premium? Is equipment or business personal property being transported and does it have the right coverage in place to account for a change of territory? Has the insured requesting “Other States” on their workers’ compensation policy when they didn’t need the coverage previously? Have you inquired why they are requesting this coverage? Monitor the title state of vehicles when being added to an auto policy. Also, ask questions when new driver requests are received with licenses in states outside of the state the insured is domiciled in.

It’s important to ensure underwriting accuracy to help minimize additional time added to a claims investigation. Answering these questions in advance will benefit everyone and provide an enhanced experience for the customer. Claims As you know, a standard commercial general liability policy provides coverage for “bodily injury” and “property damage” caused by an “occurrence” that takes place in the “coverage territory” which includes the U.S. and its territories and possessions. • • • • •

Here are questions your claims team should discuss — using the example if your Wisconsin contractor customer who is doing temporarily Hurricane Harvey relief work in Houston files a claim. What are the insurance adjuster licensing requirements? Do any existing relationships with independent insurance adjusting firms provide coverage? What unique tort laws exist — such as statute of limitations, additional insured or indemnification issues (i.e. Texas express negligence doctrine)? Can a preferred legal counsel options be identified before a time-sensitive need comes up?

The claims team should also be proactive in thinking about workers’ compensation coverage: • What if the customer did not select “All States” coverage? • What reporting time frames and filings should be identified early on to avoid unnecessary fines or penalties? • Do you have adjusters with expertise for the pertinent state requirements or will you need to use an independent firm? Ask your commercial underwriting and claims teams these questions today to help establish a process for contractors working outside their territory.

10 OCTOBER 17

Christian Martin Vice President, Claims and Sales Integrity Mutual Insurance Company


NEW Members AGENCY American Advantage – Lindow Ins Agency Pewaukee, WI B&B Insurance Services, LLC Park Falls, WI Brandl Insurance Agency Whitelaw, WI Element Insurance Agency DeForest, WI Hutchinson Agency Inc. Weyauwega, WI Insurance Strategies Inc. Elm Grove, WI

Kastyl Insurance Agency Florence, WI

Perdue Insurance Agency Inc. Green Bay, WI

Klasinski Insurance Agency Ltd. Schofield, WI Lake Insurance Agency Shell Lake, WI LaPorte Insurance Agency North Prairie, WI Martinson Inc. Racine, WI

WELCOME NEW MEMBERS! Please be sure to check out all of the member benefits you now have access to at www.piaw.org

P&C Insurance Services Inc. Brookfield, WI

BE WORRY FREE WITH IMT

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imtins.com | west des moines, iowa OCTOBER 17 11


BECOME A MEMBER OF AMERICAN ADVANTAGE For more than 15 years, our member agencies have maximized their revenue through: Increased Market Access Through AAIG, we are able to represent more companies by spreading the production requirements.

FOR MORE INFORMATION CONTACT: Mike Sabourin • Marketing Manager MikeS@AmericanAdvantage.com 262-548-8070

Increased Contingencies By having all of AAIG’s premium volume combined for the contingencies, the percentages paid by the companies are significantly higher. With the premium combined, we are also able to absorb larger losses.

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Retaining Full Ownership Even though all company contracts are through AAIG, the agency is still owned by you with no back-end buyout fees to terminate.

Help Build Your Family’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.

12 OCTOBER 17


~THE GOOD STUFF~

Wisconsin STRONG Since 1931 Partners Mutual Insurance Company has built lasting relationships with independent agents across the state. We are committed to the independent agency system as the only means to deliver our products and work hand-in-hand to help our agencies grow profitably.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com; Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com; or Charles Becker at Becker.Charles@PartnersMutual.com or 262.432.3484.

MIC_3-625x5_PIA_1216.indd 1

Worker's Compensation Law Handbook Updated

12/13/2016 12:31:09 PM

The Department of Workforce Development has announced that the Worker's Compensation Act of Wisconsin Law Handbook has been updated for the first time since 2011. Agents are advised to review the new law changes. You can find them here: http://dwd.wisconsin.gov/dwd/ publications/wc/wkc_1_p.pdf You can also open your smartphone and bring up www. WCRB.org you’ll see that our format has changed to simplify navigation on smart phones. There are few the insurance industry that will find this more useful than commercial lines agents. Now your agents can be in the field and easily lookup any class code, view its phraseology and scroll down to see its rate and rate history….all without signing in. The link for Class Code Lookup is the very first link on the site. Note that the agents will still have to go to an ‘agents section’ to fill in their user ID and password in order to get at the other products.

DID YOU KNOW? PIA Offers Cyber Insurance for Retail Agents: Recently PIA officially launched our new cyber insurance program, created with small businesses in mind. After evaluating carriers, PIA partnered with ABA Insurance Services and selected Great American E&S Insurance Company as the premier carrier for the PIA cyber liability insurance program. This robust program addresses and covers the most common threats facing small and medium sized businesses. The policy covers risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. Coverage is now available to agents through PIA West using a simplified, slot-rated quoting process. The policy premium is significantly discounted from those rates found in the standard market and includes enhancements not typically offered by competitors. PIA is also nearing the release of the first set of cyber educational materials The PIA Partnership is creating to help PIA members better understand the cyber risks they and their clients face and the insurance coverages that are available to help them mitigate those risks. Later in the fall PIA members will be able to sell the coverage to their clients as well. Call Heidi at 608-274-8188 for more information. OCTOBER 17 13


6

The Risky Six: Six Keys to Shed Fear and Take Smart Professional Risks By: Lei Wang

Like all the knowledge and skills that people learn, fear of failure is also learned. And as you age, you gain more and more mental constraints. Those mental constraints remove creativity and replace it with yet more fear. Fear is perceived risk; it is learned, and it can be unlearned through practice. The ability to overcome fear—to combat fear—is like a muscle. It can be trained and can get stronger through exercise. Through deliberate practice, you can become courageous, and harness your fear to take informed, intelligent, and potentially lucrative professional risks. 1. Harness Fear’s Positive Power Fear is an extremely powerful emotion—and thus, an extremely powerful motivational tool. When facing fear, the normal response is fight-or-flight. Flight is to let the fear and the worry take control of your mind. Fight is turning fear into a positive risk management response, forcing you to focus and actively do the best to overcome the present situation. When you take a leap of faith to confront a new career challenge, instead of worrying “What if I fail?” imagine you have no opportunity to back out. Instead of letting the fear hold you back, take that first step, and turn fear into a positive strength that compels you to focus and to make your best effort. 2. Act Early, Act Decisively Rather than waiting until your industry or department becomes dispensable, proactively manage your career growth; learn new skills and think ahead of the curve continually to prevent a career crisis from happening. Anticipate problems and dangers before they occur. Once danger does arrive, it is often too late to do much in response. Act early and act decisively, because waiting diminishes the chances for success. Practice facing fear by taking chances. Even if you fail the first time, you should try again. Start with a small task, such as a new project, something you have never done. The more you try, the easier it will become to overcome fear. 3. Separate Probability from Consequences Many working professionals are afraid of taking risks because the probability of success appears low and the consequences of 14

OCTOBER 17

failure are frightening. When you think about the consequences of a failure, it is important to recognize the difference between the immediate consequences and the ultimate consequences. Yes, the probability that a new startup will succeed is low, and the immediate consequence could be losing investment money. For any new product launch or new job, there is a chance of failure, and losing your current position. But that is only temporary. Not taking the risk means that the ultimate consequence is failure. A low probability of success should not be the reason holding you back, as long as the temporary consequences of failure are recoverable. Be more mindful of the ultimate consequence of not taking that chance. 4. Know Your Risk Management Capacity When approaching a risky situation, some people—often those who have some special talents or experiences—would go all-in and aim to grab the opportunity fast by taking bigger risks. Others take time to build a more solid foundation through each step so they have more control of the risk—at the cost of slower progress. Which style should you choose? It depends on the situation, your skill, and your risk management capacity. There is no right answer for everyone or every instance. Consider what the cost and return of taking those risks may be. Think about the alternatives you have and what the risk and return of those alternatives will be. Evaluate what losses you can afford, and consider what the temporary losses and permanent loss might mean. Ask yourself what your options are in the event of a soft loss, a hard loss, or a replaceable loss. Think about how you would recover from these possible losses. Keep in mind ways you could prepare yourself for the best outcome. You have to balance your skill level and risk management ability. 5. Be a Smart Advice-Taker It can be difficult to measure your own capability against the risk you are considering taking, because it’s hard for people to see themselves completely objectively. But there are mirrors to help you see yourself better. That mirror is the feedback from people around you, such as a mentor, colleagues, or your boss. Seeking advice is imperative before you take a risk. How do you decide which advice to heed when they conflict with each other? It is important to discern the intention behind each person’s perspective.


Some might be over-protective of you because of emotional attachment, such as friends or family; some may be driven by personal interest. Everyone has a bias; it is important to learn to recognize the value of different feedback. Do not just listen to the feedback that you want to hear. Do not brush aside opposing opinions too easily. Learn to form your own judgment based on those who give you advice. 6. Pushing Too Far vs. Not Pushing Far Enough The line between pushing too far and not pushing far enough is a fine line, especially when the stakes are high. In business, not pushing enough causes mediocrity and may eventually lead to a company’s demise. Pushing too far causes burnout and unsustainable growth, or pursuing economic return without regard to the wellbeing of the environment or community. Managing this delicate balance is a skill that can be learned, like courage and other risk management skills. In order to avoid costly mistakes on either side of the line, you need to learn the skill of heeding the feedback you receive and improve your ability to make sound judgments. Through practice, you can gradually develop

objective criteria before real danger arrives, and become better at calculating risks. Fear of failure is not the reason to avoid taking risks. Of course it’s not smart to jump at every opportunity—you have to calculate and make the best decisions under the circumstances and constraints of your knowledge and vision. Even a calculated risk can prove wrong sometimes, but when you take a chance you have the opportunity to learn and grow. If you are afraid of failure and never risk anything, you will risk everything in the end. ABOUT THE AUTHOR: Lei Wang is an internationally-recognized adventurer, motivational speaker and author of After the Summit: New Rules for Reaching Your Peak Potential in Your Career and Life. The first Asian woman to complete Explorers Grand Slam (climb the highest peak on each continent and ski to both poles), Lei channels her experiences to convey a message of perseverance and steadfast determination that her audiences can use at work or at home. For more information about Lei Wang, please visit www.JourneyWithLei.com.

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rd

oa B 8 1 0 2017-2

s

or t c e r i of D

(l/r) John Klinzing, CIC; Dan Wolfgram, AINS, CPIA; Mitchell Tarras; Brian MacGillis, CPIA, Past President; Tom Budzisz; Jodi Cordes, CIC, CRM, President; Matt Cranney, CIC, Vice President; Julie Ulset, CPIA, Secretary; Jeremy Cordova, CIC; Sandy Hardrath, CIC, CPIA; Micheal Keener, CIC; Dennis Kuhnke CIC, CPIA, PIA National Director, Past President; Sean Paterson, CIC, Treasurer

THANKS AGAIN TO THE GOLD SPONSORS!

Annual 68 Convention

th

August 2–4, 2017 Potawatomi Hotel & Casino Milwaukee, Wisconsin


The generous support of the GOLD, SILVER and BRONZE sponsors enables the PIAW to bring you a convention with quality speakers and entertainment.

PLEASE BE SURE TO THANK THEIR REPRESENTATIVES. Silver Sponsors

Some of the Lucky Winners !

AAA Wisconsin Badger Mutual Insurance Continental Western Group-A Berkley Co. EMC Insurance Companies Encompass Insurance Company Madison Mutual Insurance Company Nationwide Insurance Safeco Insurance Sheboygan Falls Insurance Company Society Insurance Western National Insurance Group

Bronze Sponsors American Modern Insurance Group Amerisafe Berkshire Hathaway GUARD Insurance Emergency Fire & Water Restoration EZLynx Frankenmuth Insurance Germantown Mutual Insurance Company Hastings Mutual Insurance Company Mt. Morris Mutual Insurance Company PIA Services Group Insurance Fund SECURA Insurance State Auto Insurance Companies Utica National Insurance Group

YOU MAY VIEW ALL OF THE CONVENTION AND YPC GOLF PHOTOS HERE: http://www.imageprophoto.com/pages/Slideshows.html

OCTOBER 17 17


OPENING PART Y! The opening party was a JACKPOT for the attendees!

YPC SCHOLARSHIP WINNERS —$21,000 in Scholarships Given! Another year the Young Professionals Club have given away $21,000 in scholarships to high school and college students! WAY TO GO YPC!

We would like to take a moment to thank the generous sponsors as well, we wouldn't be able to give away as many scholarships if it wasn't for your generosity. And a huge thank you to our Major YPC Scholarship Sponsor!

18

OCTOBER 17


EDUCATION, SPEAKERS & OTHER EVENTS

John Chapin, Sales Performance Expert "How to Get Motivated and Sell More in Any Economy" - Education Session

Oz Sanchez — Breakfast Keynote

"CSR of the Year", Kathleen Grossen, CIC, CISR, of Tri-Insure LLC, accepts her award from Jodi Cordes, President

Kevin Wondra, CIC, CPCU, AIC Director of Sales & Marketing of Society Insurance "Business Income Basics" Education Session

Mike Peterson, CIC/Insurance Marketing Partners —PIAW Digital Marketing Demonstration

OCTOBER 17 19


BUSINESS MEE TING Board Candidates

Board Candidate Jordan Karweik Dross Countryside Insurance

Board Candidate Dan Wolfgram, AINS, CPIA R&R Insurance

Board Candidate Mitchell Tarras Nett Insurance Agency, LLC.

Re-Elected

Michael Keener, CIC Keener Insurance Solutions, LLC

Jeremy Cordova, CIC Cordova Insurance Agency, Inc

Board Candidate Michael Winstanley Winstanley Insurance Agency, Inc.

Special Guests

Mike Becker, PIA National Executive Vice President

Gareth “Gary” Blackwell, CPCU – PIA National President 20

OCTOBER 17


No Other Trade Show Compares to the PIAW TRADE SHOW OVER 65 EXHIBITORS SHOWCASING THEIR NEWEST PRODUCTS AND SERVICES TO WISONSIN'S LEADING INDEPENDENT AGENTS

Annual 68 Convention

th

August 2–4, 2017 Potawatomi Hotel & Casino Milwaukee, Wisconsin

OCTOBER 17 21


AWARDS DINNER

Special Recognition

Brian MacGillis, CPIA of MacGillis Agency, Inc. accepts the Stony Steinbach Achievement Award

New President

Our New PIAW President Jodi Cordes, CIC, CRM takes the podium.

22

OCTOBER 17

Ronald Vermillion of Germantown Mutual Insurance Company acccepts the Company Representative of the Year Award. Tracy Oestreich, CIC, CPIA, AU, CPIW of T4 Insurance Solutions accepts the Professional Agent of the Year Award.

Ron Von Haden—PIA Executive Vice President thanks Rick Clements and LouAnn Herriges for their time served on the PIAW Board of Directors

Past President

Gary Blackwell, CPCU—PIA National President thanks Brian MacGillis for his time served as PIAW President


PIA OF WISCONSIN KNOWS HOW TO HAVE FUN!

OCTOBER 17 23


14

24

OCTOBER 17

th

A nnual YPC Sch


olarship Golf Outing

OCTOBER 17 25


What’s Your Copyright IQ?

By Andrew A. Gonzalez, Esq. In the old days, the Power of the Press was a luxury reserved for those with a press. Today, anyone with a desktop computer and an Internet connection can become an electronic publisher. Before the Internet, any entrepreneur not only had to know the nuts and bolts of marketing, but they had to be aware of complex legal issues such as libel and copyright infringement. An unintentional mistake and you could be sued out of existence. Professionals understood that the Power of the Press carried with it great responsibility and legal risk. If you are a website designer, or business owner, it is time to wake up to laws that have always applied to intellectual property in the real world. How much do you really know about copyright law? A copyright is a form of protection for original works of authorship fixed in a tangible medium of expression. Dangerous myths about copyright law ... MYTH: If it doesn't have a copyright notice, it's not copyrighted. FALSE. In the USA, almost everything created after April 1989 is copyrighted and protected whether it has a notice or not. The default you should assume for other people's works is that they are copyrighted and may not be copied unless you know otherwise. MYTH: It is okay to copy as long as you give proper credit to the author/artist. FALSE. If you copy an original writing, graphic, song, or other work without permission, you are guilty of copyright infringement. The Digital Millennium Copyright Act [DMCA] restricts access to or distribution of copyrighted material. Violators may be subject to civil and criminal penalties. MYTH: I goofed and used someone’s graphic on my web page 26

OCTOBER 17

without realizing that it is copyrighted, but I cannot be sued as long as it was an honest mistake. FALSE. Ignorance of the law is no excuse. Copyright law does not care about your “intent”, only that you have infringed work of another. MYTH: It is okay to use less than 10% of someone’s work. FALSE. Although it may be permissible to use limited portions of a work for limited purposes, there is no rule permitting a certain percentage of the work to be reproduced, distributed, performed or translated. MYTH: The work doesn’t show a copyright notice, so it is in the public domain and content can be used freely. FALSE. A work has automatic copyright protection the moment it exists and in tangible form. While it is good practice to insert a copyright notice, it is not mandatory. MYTH: If I don't charge for it, it's not a copyright violation. FALSE. It is a violation even if you give it away -- and there can be serious damages if you diminish commercial value of the property. MYTH: It doesn't hurt anybody and it's free advertising. FALSE. It Is up to the owner to decide if they want the free ads or not. MYTH: I paid someone to create something for me so I own the copyright. FALSE. If the content creator is on staff, and the work is created during their employment as part of their job, usually the employer owns the copyright. If, on the other hand, the content creator is an


independent contractor, then the contractor may own the copyright unless there is something in writing transferring copyright to you. MYTH: I copyrighted the name of my brand. FALSE. Copyright protects original works of authorship, but a trademark protects words, phrases, symbols and logos that identify the source of the goods or services. MYTH: I can mail myself a copy of my work to protect it [commonly known as “the poor man’s copyright”]. FALSE. There is no provision in copyright law granting any such protection and it not a substitute for registration. MYTH: If I am Caught Infringing, I Will Just Stop. FALSE: The penalties for copyright infringement can be severe, and the technology for catching offenders gets better all the time. The penalties for copyright infringement include both criminal and penalties.

The purpose of copyright law is to provide a commercial framework to ensure that artistic, intellectual or other works of value are fairly rewarded. The development of technology in general and the Internet in particular has dramatically increased the ease with which works are violated. In this environment, a number of misconceptions have become common currency. This article is intended as an introduction to copyright laws and is provided in good faith to gain a general understanding of the topic. About the Author: Andrew A. Gonzalez, Esq. is an experienced attorney with over twenty-five years in practice. He focuses attention on business and intellectual property matters. He provides sophisticated services to commercial and individual clients who need to effectively compete in a business environment. For more information, call 914 220-5474 or email gonzalez@golawny.com.

There when it matters most to agents.

TECHNOLOGY Donegal knows “ease of doing business” is important to any independent agency.

That’s why Donegal Insurance Group focuses on providing superior technology, including mobile apps for agents and customers as well as fully automated web-based systems for Personal, Commercial and Farm Lines, to give our agents optimal efficiency in quoting and issuing policies.

But offering advanced technology equal to any national carrier isn’t enough. Donegal interacts with our agents to constantly look for ways to enhance our technology offerings. Delivering superior technology, another way Donegal is “There When It Matters Most” for independent insurance agents.

To learn more visit www.sheboyganfallsinsurance.com or call Connie Jones at 800-242-7698 ext. 2800.

OCTOBER 17 27


Protect the Reputation and Assets You’ve Worked Hard to Build: Choose the Right Agents’ Errors and Omissions Program! Utica National and Agents Service Corporation can help. More than 10,000 agencies have placed their trust in Utica National over the last 50 years because they offer:

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Access to staff, including a claims team, who is dedicated 100% to Agents’ E&O Tailored levels of coverage based on your needs Risk management services that stay ahead of emerging issues to help you prevent claims A variety of ways to pay your premium without premium financing or interest charges

Invest a few minutes in the future security of your agency. Go to www.uticanational.com/eo to get started on an Easy Estimate, and then add and subtract coverages to get the

combination of protection and premium you need! Contact Heidi Hodel at PIA Wisconsin by phone at 608-274-8188 or via email at hhodel@piaw.org for more information.

28 OCTOBER 17


education

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

OCTOBER 17 29


education

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 30 OCTOBER 17

More and more owners, managers, and producers are taking advantage of the solid education provided by the CISR designation program—and for good reason. The “S” in CISR could stand for “Sales” as well as “Service.” CISR courses are a perfect blend of foundational technical training and the skills producers need to create long-term relationships. CISR courses are convenient one-day classroom courses—also available in self-paced online and in-house formats. The practical knowledge of risks, coverages, and exposures, complement the cross-selling and account-rounding skills taught in CISR courses. CISR is a solution to satisfaction for your clients, the agency, companies, and you!

Contact PIA of Wisconsin today! 1-800-261-7429 • www.piaw.org


Certified Insurance Service Representative

education

Open to Anyone!

7 WI CE Credits Course #69328

INSURING PERSONAL RESIDENTIAL PROPERTY

This course gives you the expertise you need to guide your customers through the often complex and confusing process of purchasing homeowners insurance - and help them make decisions that insure their most valuable assets.

• • • •

Introduction to the Homeowners Policy Homeowners Policy Section I Homeowners Policy Section II Tenants, Unit-Owners, and the Dwelling Policy

October 25 • Rothschild Course Instructor Todd Davis, CIC

CLASS SCHEDULE Instruction Group Lunch Optional Exam

$170 Per Course

8:00 a.m. – 3:45 p.m. 12:00 p.m. – 12:45 p.m. 4:15 p.m. – 5:15 p.m.

Includes Lunch

Register at www.piaw.org or call 800-261-7429

Certified Insurance Service Representative Open to Anyone!

7 WI CE Credits, 1 of 7 is Ethics, Course #69356

AGENCY OPERATIONS

This course helps make you an indispensable team player in any insurance agency. 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. Also, understanding how agencies operate is essential training for both insurance agency and company personnel.

• Legal & Ethical Requirements • The Insurance Agency, Industry and Marketplace • Communication • Agency Workflow October • Account Management • Errors & Omissions

CLASS SCHEDULE Course Instructor Todd Davis, CIC

Instruction Group Lunch Optional Exam

8:00 a.m. – 3:45 p.m. 12:00 p.m. – 12:45 p.m. 4:15 p.m. – 5:15 p.m.

26 • Waukesha

$170 Per Course Includes Lunch

Register at www.piaw.org or call 800-261-7429

OCTOBER 17 31


education

Certified Insurance Counselor Each Approved for 20 Wisconsin CE Credits COMMERCIAL CASUALTY — REVISED!

November 1-3, 2017 Crowne Plaza — Madison, WI $111 PIA room rate through 10/1/17 886-424-0835

• COMMERCIAL GENERAL LIABILITY CONCEPTS & COVERAGE Ted Kinney, CIC, CPCU, CPIA, IIA, AU, AINS, CRIS

• CRIME COVERAGE & ENDORSEMENTS John Dismukes, CIC, CPCU, AAI, AIS • CYBER EXPOSURES & COVERAGES • EMPLOYMENT PRACTICES LIABALITY INSURANCE • EXCESS LIABILITY/COMMERCIAL UMBRELLA COVERAGES Jay Williams, CIC, CRM, AAI

WI CE COURSE #1012294 Day Two: 8:00 – 5:00

December 12-14, 2017 Radisson Paper Valley – Appleton, WI $102 PIA room rate through 11/14/17 920-733-8000

• BUSINESSOWNERS POLICY • COMMERCIAL INLAND MARINE CONCEPTS & COVERAGES Robert Ford, CIC, CISR, CPIA, CLCS

• ADDITIONAL INSURED CONCEPTS & ENDORSEMENTS • BUSINESS AUTOMOBILE COVERAGES & ENDORSEMENTS Patrick Deem, Sr., CIC • WORKERS COMPENSATION & EMPLOYERS LIABILITY John Dismukes, CIC, CPCU, AAI, AIS

Day One: 8:00 – 5:15

NEW! COMMERCIAL MULTILINE INSTITUTE

WI CE COURSE # 1011790 Day Three: 8:00–noon, Optional Exam 2:00 – 4:00

$405.00 per institute. Register at www.piaw.org or call 800-261-7429.

The Art of Asking Questions & What’s My Line – The Boundaries of Ethics October 19, 2017 Society Insurance – Fond du Lac

__________________

8:30 – 12:00 “The Art of Asking Questions” 4 WI CE and Utica Approved

(45 minute lunch, on your own) 12:45 – 4:00 “Ethics” 3 WI Ethics CE and Utica Approved

• •

Open to Everyone Full Day is a CPIA Update

Todd Davis, CIC

PIAW Member full day $170.00 half day $85.00 Non Member full day $200.00 half day $100.00 __________________

Do you want to avoid E&O claims, sell more insurance and become more profitable? This unique program probes how we ask questions; how we receive answers and provides startling information on how little Does notinformation includes WI CE information we actually receive. Learn the art of thoughtful questing to obtain more accurate and Fees take away great techniques to better serve your clients. The afternoon session will look at ethics, including your personal and your organization’s code of conduct.

Register at piaw.org or call 800-261-6429

32 OCTOBER 17


Visit the Education tab at piaw.org for a complete list of topics, descriptions, webinar demo and registration. Several approved for Utica credit. Ethics is offered each month. Fee per Webinar: $55 PIAW Member, $70 Non Member – Includes WI CE fees.

October 2017 Webinar Schedule TITLE & WI CE

DATE

TIME (CST)

INSTRUCTOR

Innovations in Long-Term Care Funding with Life Insurance 3 WI CE # 1012433

10/5

12-3p

Jerry Rhinehart, CIC, CLU, ChFC, RHU

Getting Wise on Health & Wealth: Group Insurance & Savings Plans 3 WI CE 1010870

10/10

12-3p

Karin Klaassen, CLU, LUTCF

Street Level Ethics 3 WI Ethics CE # 1012437 Utica Approved

10/11

12-3p

Chris Amrhein, CIC

ALERT: Agency Legal & Ethical Responsibilities 3 WI Ethics CE # 1010871 Utica Approved

10/12

8-11a

Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS

Your Agency Online: Communication Cure or E&O Plague 3 CE # 1012439 Utica Approved

10/12

12-3p

Chris Amrhein, AAI

Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto 3 WI CE # 1012435

10/13

8-11a

Kevin Amrhein, CIC

E&O Loss Prevention 3 WI CE # 1010749, Utica Approved

10/19

8-11a

Becky Lathrop, CIC, CPIA

Cyber Liability: The 21st Century Peril 3 WI CE # 1012636

10/19

12-3p

Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS

Insuring the Building Project: Builders Risk & Installation Coverage 3 WI CE # 1012638

10/20

8-11a

Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS

Additional Insureds: The Quandary 3 WI CE # 1012432

10/24

12-3p

Robin Federici, CIC, AAI, ARM, AINS, AIS, CPIW

Construction Defects: Property Damage & the ISO CGL – Tearing Down the Mysteries 3 WI CE 1010869

10/25

12-3p

Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS

Current Trends & Changes: The Homeowners & Auto Marketplace 3 WI CE # 1012431

10/26

12-3p

Kym Martell, CRM, CIC, CRIS, AAI

Register online at piaw.org or call 1-800-261-7429. Contact Brenda for in-house webinar opportunities. bsteinbach@piaw.org OCTOBER 17 33

education

New Topics! Each Approved for 3 WI CE Credits. Live. No Test. No Proctor.


education

CRM Analysis of Risk November 14-17, 2017 Milwaukee, WI Conducted by PIA and The National Alliance Register directly with The National Alliance at www.thenationalalliance.com The Certified Risk Manager courses provide you with an in-depth knowledge about today's' high­est priorities identifying, analyzing, controlling, financing, and administering operational risks- as well as political risks, catastrophic loss exposures, third-party exposures, fiduciary exposures, employee injury exposures, juridical risks, legal risks, and more - whether insurable or not. The skills you learn will make you more proactive and valuable to your organization in discovering how risks can interrupt the flow of earnings and how to protect against it. • • • •

Introduction to Analysis of Risk Qualitative Analysis: Tools, Forecasting Cash Discounting Concepts Risk Analysis Applications

Take all five CRM courses and pass all five CRM exams within five calendar years after you complete your first CRM exam. Each course is 2½ days of instruction, followed by an optional exam. Any eligible individual may attend classes without taking the examinations to receive 20 WI CE.

UTICA

Gives You the Credit You Deserve! The following PIAW education classes are approved for the Utica premium credit. • Any CIC Update • CIC Agency Management • CISR Agency Operations • Dynamics of Service • Select PIAW Webinars • PIAW Conducted Ethics and E&O Seminars (classroom or in house) To register online and view upcoming CE courses visit www.piaw.org

34 OCTOBER 17

Please contact Heidi Hodel, CIC, CRIS, Member Benefits Coordinator hhodel@piaw.org or 1-800-261-7429 to find out how you can benefit from Utica’s E&O Loss Control Program.


education

CIC RUBLE SEMINARS Exciting update options, they fill up quickly! 16 WI CE (*Includes 4 optional Ethics)

October 11 & 12 | Graduate Ruble | Radisson – Green Bay, WI* January 17 & 18 | Graduate Ruble | Crowne Plaza Airport – Milwaukee WI* Visit www.piaw.org or call PIA at 1-800-261-7429

On-Line Insurance Pre-licensing Education

Exam FX

www.piaw.org

Online Training & Assessment

Pass your insurance test fast. Start producing faster.

Insurance and Securities Pre-license Training OCTOBER 17 35


Building Your Sales Machine By John Chapin

While the most important tool a salesperson can have is great sales skills, the most important attributes a salesperson can have are: hard-working, persistent, and an ability to persevere. The “how-to” behind building a highly-effective, competitiondominating, sales juggernaut is actually fairly simple. What isn’t simple is executing the steps and sticking to the plan. The dedication and resolve necessary to start and complete the process is where the majority of people fail. That said, if you’re ready to skyrocket sales in your organization, here are the steps to get it done. Step 1: Super-intense Sales Training The most important tool a salesperson can have in their arsenal is great sales skills. Yet, while most organizations spend tens or even hundreds of thousands of dollars on a new producer, send them to product training, and load them up on technical skills, most balk at investing a fraction of that on the most important training: sales training. Poor sales skills is a key reason why most salespeople end up with mediocre or bad sales results. When considering how to train your people, let’s start with the gold standard. In the best case your training would look like what my dad got from I.B.M. The first six months were spent at I.B.M.’s main office where new salespeople trained half the time on product and half the time on sales. Everyone was given a sales 36 OCTOBER 17

play book that included all scripts for what to say and how to handle all sales situations. Next, that play book was memorized, practiced, and drilled until they had every single sales situation embedded in their brains. When my dad finally returned from training, he was with his manager and one of the top sales reps out in the field for three more months. They practiced, drilled, and rehearsed everything before, during, and after live calls. Finally, after nine months he was allowed to go on calls by himself. If you’re like most people reading this, you don’t have the resources of an I.B.M. and you probably can’t invest nine months doing the training mentioned above. In that case, you want to do something similar to what I do when training brand new agents in the insurance industry. The first thing they do is spend two days in one of the top insurance producer schools. When they get back, I give them a play book with reinforcement CDs, all the scripts, and everything else necessary to handle all sales situations and scenarios they’re going to encounter when they’re out prospecting and chasing new business. They memorize these and we practice and role-play. After a very short period of time, once they have the basics down, they start calling on live prospects. They learn


most of what they learn by getting their nose bloodied out calling on small accounts. After weeks of internalizing everything they learned in the first school and from me, I send them to a second school. We follow the same reinforcement process as we did above. Next, I send them to a third school and once again, the process is repeated. By the time they’ve completed the above process, their sales skills are better than about 97% of the people they are competing against. As a result, because sales skills are the most important skills by far, they are doing a significant amount of business at this point. Step 2: Activity Although activity is actually more important than sales skills, it is second in chronological order. Before I send someone out to make calls, I want them to have a general idea of what they’re saying so we train on sales skills first. Step 2 is all about massive activity and tracking that activity. The insurance agents have a quota for new people they have to attempt to contact every week. At the end of the week I want: the number of new people called on, spoken to, prospects, appointments, follow-up calls on prospects not reached, sales, and several other items. While the most important tool a salesperson can have is great sales skills, the most important attributes a salesperson can have are: hard-working, persistent, and an ability to persevere. This is all about making a ton of calls and staying after it no matter how badly they get beat up. Step 3: Continuous practice and reinforcement of sales skills. Your people have to constantly be reading the scripts, listening to sales CDs in the car, role-playing, and otherwise practicing, drilling and rehearsing everything they’ve learned. As a leader you want to test them by throwing objections and different situations at them along with going on some calls. It’s also important to work on sales

Since 1878

skills in sales meetings. This also means resending your people to training. An insurance agent will go to each of the producer schools three times the first three years they are working with me. Each time they learn something they missed the first time and the ideas they do remember get further reinforced and improved. Every time they come back there is an instant bump in sales. Step 4: Continue to improve and innovate. Once you find what works, don’t rest on your laurels. Continue to look for ways to improve and get better. Look for better ways to compete, better answers to objections, better ways to communicate and build relationships, and in short, more effective and efficient ways to operate. Step 5: Remove obstacles from the sales process. Obstacles come in several forms. It can be support people not doing their jobs, inefficient systems or processes, tedious, unnecessary, extra items that you ask your people to do or even having salespeople doing items that support people should be doing. Keep an eye out for anything that seems to be taking your salespeople away from “new business” activities. Step 6: Remove negativity and slackers from the environment. The key to all of the above is to develop and follow a proven system that trains and reinforces sales skills and ensures your people are doing tons of the right activities the right way. John Chapin is a motivational sales speaker and trainer. For his free newsletter, or to have him speak at your next event, go to: www. completeselling.com John has over 29 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. You can reprint provided you keep contact information in place. E-mail: johnchapin@completeselling.com.

Ellington Mutual Insurance Company

Proudly providing all of Wisconsin with prompt, personal service.

PO Box 356 • Hortonville, WI 54944 920-779-4515 • 800-953-4515

www.ellingtonmutual.com

Homeowners • Farmowners • Commercial • Rental Properties • Seasonal Properties • Umbrella

OCTOBER 17 37


38 OCTOBER 17


SNAP SHOT into a Top 100 Agency How we grew from 28 Producers to 95 Producers.

Q: What markets do you have?

Q: How does carrier contingency work?

A. As the largest independent agency in Wisconsin, RRA has strong carrier relationships. We offer over 45 CL, 20 PL and 45 EB carrier partners.

A. Producers can share in all contingencies. Because of our size, our contingent return is more predictable and stable to our Producers.

Q: Will I make more money?

Q: Do you have a solid perpetuation plan?

A. Yes, we offer one of the strongest returns to Producers. We pay all office costs including staff salaries.

A. Scaling back hours, retiring or planning for the unexpected should be a priority. We help connect Producers with similar interests and backgrounds to develop a buy/sell plan where they are comfortable.

Q: How can I maximize my time?

Q: What technology resources do you offer?

A. We handle staff management, HR, accounting, IT, rating, office management and other administrative details. This allows Producers to spend more time with their families or growing their book on their terms.

A. A dedicated IT department ensures technology resources are performing and the latest tools are being reviewed. We operate on Applied Epic and offer Zywave, AccuComp and HR Workplace Services.

Learn More: Gary Burton I gburton@robertsonryan.com I 800.258.0277 I RobertsonRyan.com OCTOBER 17 39


What’s New?

What’s Not?

Now a billion dollar company! (Sales passed the mark in 2016.)

Secure financial strength that comes from being a member of the Berkshire Hathaway family.

Nationwide geographical scope.

Our A+ (”Superior”) A.M. Best Company Rating.

An increasingly robust One-Stop Insurance Shopping solution via a BizGUARD Plus product suite that features Workers’ Compensation, Businessowner’s Policy, Commercial Auto, Umbrella, and Professional Liability coverage.

Average annual growth in premium in excess of 25% per year for the past five.

Ongoing product and service enhancements to win renewals and keep a high retention ratio.

Broader appetite for select risks (including Total Insured Property Values as high as $50 million for certain industries and risks).

Our focus on being data-driven and using business intelligence to gain a competitive edge.

A superior combined ratio that (according to A.M. Best) outperforms our peers.

Our commitment to distribution through independent agents!

Higher A.M. Best financial size (i.e., “X”).

Enhanced infrastructure to support growth.

GR

ST

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Berkshire Hathaway

GUARD

Insurance Companies

IT BIL Y A

OWT

We have agency appointments available. Go to www.guard.com/apply!

9th Annual PIA Winter Get-Away MARK YOUR CALENDAR! January 31 - February 2, 2018 Minocqua, WI Visit piaw.org for details and registation.

40 OCTOBER 17


OCTOBER 17 41


Midterm Cancellations: Not a Renewal?

By Timothy D. Fenner The plaintiff had never been required to submit a new application for new coverage when the policy was reinstated or reissued; and the carrier never did perform any new underwriting for purposes of assessing the risk. The appellate court noted that if the carrier wanted to create a “new” contract, it could have made that clear on each new document, required a new application prior to reissuance, required new underwriting prior to reissuance, assigned a new policy number etc. The carrier failed to do so. It now had to bear the consequences of its unlawful midterm cancellation. Like virtually every other state, Wisconsin has adopted a statute dealing with midterm cancellation of insurance policies by carriers. Section 631.36 (2) Wis Stats provides that “…no insurance policy may be canceled by the insurer prior to expiration of the agreedupon term….” except for certain grounds specified in the statute. Failure to pay a premium when due, material misrepresentations, substantial change in the risk etc., are examples of some of the permitted grounds for a midterm cancellation. However, there is an exception to the general rule of prohibition against midterm cancellations. The prohibition does not apply “…to any insurance policy that has not been previously renewed if the policy has been in effect less than 60 days at the time the notice of cancellation is mailed or delivered.” In my experience, most agents are aware of the foregoing legal principles applicable to midterm cancellations. Recently, the Wisconsin Court of Appeals issued a decision in a case involving a midterm cancellation. The plaintiff had procured 42 OCTOBER 17

insurance coverage for a residential property from an insurance agent. The policy was issued on June 23, 2010 through June 23, 2011; and was titled as a “New Policy”. Thirty days before the expiration of the initial term, the carrier sent a notice indicating that there would be a renewal premium due and that the renewal would run from June 23, 2011 through June 23, 2012. The notice also specified the due date of the premium. Plaintiff failed to make payment and the carrier issued a cancellation notice. Subsequently, the plaintiff and the carrier engaged in a long series of policy cancellations and reinstatement that occurred through December 2013. On six occasions during this timeframe, the carrier canceled the policy for nonpayment; and after each cancellation, the carrier reissued the policy. The reissued policies contained the same policy number. On October 23, 2013, the declaration sheet that was issued to the plaintiff stated “Policy Reissued”. On December 18, 2013, the carrier sent a notice indicating that coverage would be terminated as of December 31, 2013 due to the history of nonpayment. A refund


of premium was issued to the plaintiff. This was not a cancellation for failure to pay a premium; but simply a cancellation due to the carrier’s decision that it’s had enough with respect to the plaintiff’s history of payment. In April 2014, a fire occurred at the residential property. The carrier in question denied the loss because the policy had been previously canceled. Rather than contesting the cancellation with the carrier, the plaintiff sued the agent who sold the policy in the first instance. The theory of a lawsuit against the agent was that the agent had failed to secure the requisite coverage on the property following cancellation of the policy in 2013. Rather than simply relying on the failure of the plaintiff to procure coverage as an affirmative defense, the agent raised a rather novel defense. The agent asserted that when the carrier canceled the policy in October 2013, such cancellation was an unlawful midterm cancellation; and that the policy was therefore in effect at the time of the loss. This brought the carrier into the lawsuit. Specifically, the agent alleged that the statute was applicable because the policy that had allegedly been canceled, was the same policy that had been in effect for over three years, had the same policy number, had the same coverage terms etc. The prohibition against midterm cancellations applies to “renewal” policies; and the exemption from this prohibition is applicable only to “new policies” which have not been in effect for a period of more than 60 days. The carrier argued that its policy was not a “renewal” so as to fall within the prohibition contained in the statute. Rather, it argued that it was a “reissued” policy, which was a “new policy” for purposes of the statute. Specifically, the carrier argued that a “renewal” policy is a continuation of a policy already in existence, while a “reissued” policy is the formation of a new contract after a break in coverage. The trial court disagreed with the carrier; found that the policy was a renewal; found that the carrier had unlawfully canceled the policy on a midterm basis; and that the carrier was responsible for providing coverage for the loss. The carrier appealed. The issue before the appellate court was whether or not the policy in question was a renewal or a new policy. The court noted that the statute does not define the word “renewal” , but given the facts of the case, the court could not buy into the argument of the carrier. The facts were very clear. The only document entitled “new policy” was the policy that was issued on June 23, 2010. All documents subsequent to that date made references to “reissued policies” which used the same policy number as the June 23, 2010 policy. The plaintiff had never been required to submit a new application for new coverage when the policy was reinstated or reissued; and

the carrier never did perform any new underwriting for purposes of assessing the risk. The appellate court noted that if the carrier wanted to create a “new” contract, it could have made that clear on each new document, required a new application prior to reissuance, required new underwriting prior to reissuance, assigned a new policy number etc. The carrier failed to do so. It now had to bear the consequences of its unlawful midterm cancellation. Needless to say, the agent was exonerated. However, what is troublesome to me with respect to this decision, is the lack of any discussion concerning the role of the agent in the context of the numerous cancellations and reinstatements of the policies. I know that cancellations for failure to pay and reinstatements of policies occur within virtually every agency at some time or another. I’ve always viewed these situations as potential “mine fields” for agents. I can think of any number of scenarios where an agent could incur liability that would not otherwise exist. My general advice is that the agent should stay clear of the cancellation and restatement process, and let the insured and carrier resolve the matter. The agent should document what’s transpiring; and make clear what the role of the agent is in the process. Risk management is always prudent. For more information about "Midterm Cancellations: When is a Reissue Not a Renewal?," contact Timothy D. Fenner at tfenner@ axley.com or 608.283.6733. Axley Brynelson is pleased to provide articles, legal alerts, and videos for informational purposes, but we are not giving legal advice or creating an attorney/client relationship by providing this information. The law constantly changes, and our publications may not be currently updated. Before relying on any legal information of a general nature, please consult legal counsel as to your particular situation. While our attorneys welcome your comments and questions, keep in mind that any information you provide us, unless you are now a client, will not be confidential.

Timothy D. Fenner Attorney Axley Brynelson, LLP

Fun is like life insurance; the older you get, the more it costs. - Kin Hubbard

OCTOBER 17 43


More than a trusted brand, AAA is the perfect lead — and close. Every sale has a beginning and end. And AAA can help your independent agency with both. Add AAA to your product mix and grow your bottom line selling quality insurance through AAA and the extensive benefits of AAA Membership – an unbeatable combination of security and savings. If you’re ready to grow, we’re here to help with the products and support that can help you earn more. n Quality insurance with competitive rates n Powerful brand recognition n Sales manager support n Product training n Extensive marketing co-op program n Competitive commission on insurance and membership

Learn more today. Call Heidi Nienow at 608-828-2614 or email me at hqnienow@aaawisconsin.com

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4/24/15 8:48 AM


(Continued from page 9 - Administrative Actions)

was ordered to pay a forfeiture of $1,000.00, was ordered to properly and timely disclose future administrative actions, criminal proceedings, and lawsuits, and was ordered to provide OCI with fully accurate and complete information in all filings, including licensing applications. These actions were taken based on allegations of failing to timely report to OCI two administrative actions taken by the state of Minnesota and failing to disclose them in a licensing renewal application. Helen L. Whitten-Twine, 2411A N. 24th Pl., Milwaukee, WI 53206, had her application for an insurance license denied. This action was taken based on allegations of failing to disclose criminal convictions on a licensing application, having criminal convictions that may be substantially related to insurance marketing type conduct, and failing to complete a licensing application.

legations of owing delinquent Wisconsin taxes. Chan Xiong, 828 S. 11th Ave., Wausau, WI 54401, had his application for an insurance license denied for 60 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 and having an unpaid civil money judgment.

Allegations and Actions Against Companies None to report.

Kenya C. Williams, 3756 N. 4th St., Milwaukee, WI 53212, had her insurance license revoked. This action was taken based on al-

What's the message to new customers? Before someone becomes a customer, chances are they will get more attention than they will over the next couple of years - if we don't count the "I want to sell you something" contacts. Then, if customers don't respond to the sales pitches, there are fewer and fewer contacts - until they stop. This is a scenario that occurs so frequently, customers know what to expect: first, they're courted; then, they're dropped like a jilted lover. To overcome the "letdown feeling," some companies introduce what they call "customer care," which may include what they will do to build an ongoing relationship. Again, this raises expectations and increases the chances of disappointment. It's not surprising that those coming through the front door often disappear out the back door. This happens not only in companies, but all types of organizations. Work hard to get the fish in the boat, but not so much to keep them there.

What you can do about it: 1. Give customer retention the same level of attention and support that you give sales. 2. Select highly competent people and train them in relationship management. 3. Constantly evolve the relationship program by trying out new ideas gleaned from customer feedback. OCTOBER 17 45


PROFESSIONAL INSURANCE AGENTS OF WISCONSIN, INC. OFFICERS Ms. Jodi Cordes, CIC, CRM, CPIA President A.F. Glass Insurance Center P.O. Box 1149 Lake Geneva, WI 53147 Phone 262-248-5555 Fax 262-248-5544 jcordes@glassinsurancecenter.com Mr. Matt Cranney, CIC, CRM Vice President M3 Insurance Solutions, Inc. 3133 W Beltline Hwy Madison, WI 53713 Phone 608-273-0655 Fax 608-273-7783 matt.cranney@m3ins.com

DIRECTORS Mr. Thomas Budzisz, CPIA BWO Insurance Group, LLC 2111 E Rawson Ave. Oak Creek, WI 53154 Phone 414-768-8100 Fax 414-768-8110 tom@bwoinsurance.com Mr. Jeremy Cordova, CIC Cordova Agency, Inc. 716 E 2nd St. Merrill, WI Phone 715-536-9576 Fax 715-539-3349 jeremy.cordova@cordovaagency.com Ms. Sandy L. Hardrath, CIC, CPIA Ansay & Associates 4712 Expo Dr. Manitowoc, WI 54220 Phone 920-370-4283 Fax 920-682-7799 Sandy.Hardrath@Ansay.com

Mr. Sean M. Paterson, CIC Treasurer Robertson Ryan & Associates 12750 W. North Ave., Building A Brookfield, WI 53005 Phone 262-782-5373 Fax 262-782-6327 spaterson@robertsonryan.com

Mr. Michael Keener, CIC Keener Insurance Solutions, LLC W 175 N11081 Stonewood Dr Ste 105 Germantown, WI Phone 262-293-9144 Fax 262-293-9254 michael@keenersolutions.com

Ms. Julie Ulset, CPIA Secretary Grams Insurance Agency LLC 103 W Fulton St. Edgerton, WI 53534 Phone 608-884-3304 Fax 608-884-9616 julset@gramsinsurance.com

Mr. John W. Klinzing, CIC, CPIA Affiliated Ins. Agencies of WI, LLC 3830 Atwood Ave. Madison, WI 53714 Phone 608-310-3924

STAFF

Fax 608-441-8787 johnk@affiliatedllc.com

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

Mr. Dennis Kuhnke, CIC, CPIA PIAW National Director Robertson Ryan & Associates Inc. 330 E Kilbourn Ave. Suite 650 Milwaukee, WI 53202 Phone 414-271-1561 Fax 414-271-3012 dkuhnke@robertsonryan.com

Ronald Von Haden, CIC Executive Vice President rvonhaden@piaw.org

Mr. Brian MacGillis, CPIA 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

Heather Falk, CISR Bookkeeping hfalk@piaw.org Heidi Hodel, CIC, CRIS Member Benefits Coordinator hhodel@piaw.org

Mitchell Tarras Nett Insurance Agency LLC 607C Eastern Ave Plymouth, WI 53073 Phone 920-893-3252 Fax 920-893-3250 mitchtarras@charter.net

Mandy Penn Executive Assistant mpenn@piaw.org Becca Prestbroten Administrative Assistant bprestbroten@piaw.org

Dan Wolfgram AINS, CPIA R & R Insurance Services, Inc. 1581 E. Racine Ave. Waukesha, WI 53186 Phone 262-574-7000 Fax 262-574-7080 dan.wolfgram@rrins.com

Brenda Steinbach Education & Convention Director bsteinbach@piaw.org

Coming Events OCTOBER 2017 11-12

Ruble Graduate Seminar Green Bay, WI (16 WI CE, 4 of 16 are optional Ethics)

19

Hot Topic-The Art of Asking Questions & Ethics Fond du Lac, WI (7 WI CE, 3 are Ethics)

25

CISR Personal Residential Rothschild, WI (7 WI CE)

26

CISR Agency Operations Waukesha, WI (7 WI CE, 1 of 7 is Ethics)

46 OCTOBER 17

NOVEMBER 2017 1-3

CIC Commercial Casualty Madison, WI (20 WI CE)

14-17

CRM Analysis of Risk Milwaukee, WI (20 WI CE)

DECEMBER 2017 6

CISR Commercial Casualty 1 Waukesha, WI (7 WI CE)

7

CISR Commercial Casualty 2 Madison, WI (7 WI CE)

12-14

NEW! Commercial Multi Line Institute Appleton, WI

JANUARY 2018 17-18

Ruble Graduate Seminar Milwaukee, WI (16 WI CE, 4 of 16 are optional Ethics)


Independent Insurance Agents Every day, you as independent agents put on a rocking show for your clients. We are proud to give you a standing ovation!


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 has voting rights at PIA national meetings. Primary Contact and all agency staff have voting rights at PIA of Wisconsin meetings.

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Which Agency Management System are you using________________________ E&O Carrier_________________________________________ Exp. Date______________ Annual P&C Prem. Vol.________________________________

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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 1 385 16 1025 2 430 17 1070 3 475 18 1110 4 520 19 1155 5 565 20 1185 6 605 21 1230 7 655 22 1270 8 695 23 1320 9 735 24 1360 10 775 25 1405 11 820 26 1445 12 865 27 1490 13 900 28 1530 14 940 29 1575 15 985 30 & Over 1610 I certify that the information on this application is true and correct. Signed_________________________________ Dated_______________________

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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.


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