May 2013 Professional Agent

professional agent may | 2013

Wh at’s Inside?

An Interesting Equation .........12 Social Media Liability..............16 Rental Reimbursement............24 Coverage Be Happy...................................30 New CISRs................................35 Rags to Ashes......................... 37 Coming Events.. .....................38

www.piaw.org

2 MAY 13

From the

President Tracy Oestreich, CIC, CPIA, AU — President, PIA of Wisconsin

PIA Members Bring Main Street to Capitol Hill PIA members from across the nation met in Washington, D. C. for the 2013 Federal Legislative Summit (FLS) this past April 10 – 11. You can be proud your Wisconsin executive leadership team was well represented and is committed to advocating for ourselves, our agencies, our company partners and for the clients we serve. Every year we find it necessary to fight off new and recurring threats affecting our ability to compete and be successful. Issues that are extremely important to insurance agents, the insurance industry and insurance customers are being debated every day in Washington, D.C. These issues have the potential to help or hurt professional insurance agents and our customers. Members of congress need to hear from us and the fact that we are there matters.

Here are some of the issues we advocated on and explained our position from an agent’s perspective. We explained how the issues impact us, our business and our employees.

PIA: Supports the role of independent agents and brokers in healthcare reform and just compensation for agents.

Agents want to continue to serve their clients who need health insurance, but artificial limits are still being placed on our ability to help them obtain coverage through insurance exchanges. We also urged the representatives and senators to support legislation to exempt health insurance agent commissions from the medical loss ratio (MLR) formula used by the Department of Health and Human Services (HHS) to calculate allowable expenses under the healthcare law. This formula has led to agent compensation being cut.

Opposes allowing insurance exchange navigators to sell, solicit or negotiate insurance without a proper license.

Supports a 2013 Farm Bill that continues to fully utilize

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the expertise of professional independent insurance agents and opposes any additional cuts to the Federal Crop Insurance Program (FCIP).

Supports the continued implementation of reforms to the National Flood Insurance Program (NFIP) along with solutions to eliminate the program’s debt, and opposes privatization of the NFIP while there is no sustainable private market solution.

Opposes federal regulation of insurance and supports a modernized national system of state-based insurance regulation. We reminded the lawmakers that the statebased insurance regulatory system works well and there is no justification for creating a new federal insurance bureaucracy, especially in light of our current budget crisis.

Supports reducing individual and corporate income tax rates for small businesses.

As you can see, we addressed many issues with the potential to affect agents’ bottom lines. Health insurance, flood insurance, crop insurance, taxes and the threat of federal encroachment into our industry are all issues that concern us.

As a member-driven, grassroots association, your PIA draws strength from Main Street values. This is why every year our members meet in Washington D.C. for the annual PIA Federal legislative Summit. We should not be afraid to speak up and speak out on behalf of our members and customers.

I encourage you all to continue to be visible, speak up and be active and involved on the national, state and local levels as member involvement is crucial to success in our industry.

Remember, we are just telling those we send (to represent us) to congress of our concerns and ask them to respond to those concerns. To not be involved is just not an option.

{

The man of the house: Before he left on a business trip, the father took his young son aside.

"Son," he said, "I'm trusting you to take care of the family while I'm gone. You're going to be the man of the house."

Comprehending the gravity of the situation, the child replied soberly, "In that case, I'm gonna need the remote."

MAY 13 3

Memos from

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

We Must Trim Spending I GET FRUSTRATED when the government and the media use the word “cut” when talking about government spending. I believe it is an intentional misuse of the term to make us believe we are actually tightening our belt and “cutting” fat from program spending.

The actual fact is that a “cut” in government speak means only that the spending increase will not be as large as planned. Politicians and bureaucrats must believe that we are so ignorant that we will never figure out their guise. If I have $100 and I say that I will “cut” 10% from it, the net result is that I have $90. When the government has $100 and they propose a 10% “cut”, the net result is $104.50. They use the logic that since they were expecting a 5% increase in spending (to $105), if they cut 10% from the increase ($.50), that amounts to a 10% “cut”.

Sadly, few media outlets report on the blatant contortion of the mathematics so we blindly go along thinking that a true reduction in spending is actually happening. We must trim spending or the tax consequences will be unbearable for future generations.

DO YOU OFFER flood insurance only when the mortgage company requires it? If so, you are opening yourself up to an E&O claim and doing a great injustice to your clients. According to a blog by Chris Burand in an April issue of Insurance Journal, “approximately one-third of all floods happen in B,C or X areas and these are areas

where mortgage companies do not typically require flood insurance to be purchased.” That could mean your agency has an E&O exposure with one third of your clients if you are not offering flood insurance to them.

Burand says that offering coverage only to people if the mortgage company requires it is like saying that the mortgage companies know everyone who needs it and the amount of coverage needed. In reality, mortgage companies only care about protecting their investment. They don’t care about insuring to replacement value or protecting property outside their mortgage portfolio.

Offer flood coverage (building, contents and excess if warranted) to all your clients each year. It’s a great opportunity to limit your E&O exposure and touch each client in an important way.

WIND AND HAIL claims are the most frequent causes of loss for the property and casualty industry. Although we had some significant storms, Wisconsin did not make it into the top 10 states for claims reported to State Farm in 2012.

The top states and number of claims for State Farm in 2012 are impressive: Texas, 47,000 claims; Illinois, 41,000 claims; New York, 34,000 claims; Ohio, 31,000 claims; Missouri, 25,000 claims; Tennessee, 24,000 claims; Indiana, 23,000 claims; New Jersey, 23,000 claims; Kentucky, 22,000 claims and Colorado, 16,000 claims.

AND REMEMBER …..It is never a good idea to play leap frog with a unicorn!

Right in your backyard!

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Call Fritz Weitendorf, our Wisconsin Representative at 1-877-643-0219 ext 3828.

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4 MAY 13

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 Brian’s video camera was stolen, replacing it in time to record his daughter’s first steps 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.®

MAY 13 5

From the

Boardroom

Trey Neher, CIC, CISR—THZ Insurance Group—Director, PIA of Wisconsin Ron Kuehn, Dewitt, Ross & Stevens—Wisconsin Government Relations Attorney

Our Industry — A Study of Paradoxes Our legislators in Madison are working together on well thought out agenda items such as Assembly Bill 65 and Senate Bill 62, sponsored by Senator Frank Lasee and State Representative (and former PIAW Board member) Mary Czaja. One of these “companion bills,” when passed, will bring providing proof of insurance into to the 21st century by allowing drivers to use their cell phones or other electronic devices to show they have current coverage in place. As many of us, especially the next generation of drivers, now embrace paperless formats, this is truly a win/win for consumers and industry personnel alike. How refreshing to see these positive trends in Wisconsin.

published last week. Perhaps there will be some way,

Now the paradox – what the heck is going on with the healthcare side of our business? We as professional insurance agents, whether on the P & C or benefits side of the house, have a duty to absorb as much information on the Affordable Care Act as developments unfold. As trusted advisors, we owe it to our clients and industry. We are truly fortunate to have many allies here in Wisconsin that will provide accurate information as the October 1st open enrollment date for the insurance marketplace approaches.

A series of bills to further improve our civil justice system

We are working with the Legislature to capture any remaining opportunity to allow our exceptionally knowledgeable health care insurance agents function as “navigators” under this new system. The federal government has set up some very significant impediments to allowing us any meaningful role in this program. Our attorneys are carefully reviewing the 50+ pages of federal rules that were

Our team of PIA members on the PIA government relations

6 MAY 13

with the help of our state legislators, to find a way to preserve a role for our agents as navigators in the new health care system.

Back to the P & C side again…the PIA has been a long-term member of the Wisconsin Civil Justice Council. The Council is dedicated largely to tort reform in Wisconsin and over the years the PIA has joined with the Council and others to make necessary changes in how damages are awarded in civil cases – issues that impact the cost of P & C insurance for our customers. is working its way through the Legislature with the support of the PIA and the other members of the Council. These bills include AB 29, dealing with “phantom damages” (evidence allowed at trial for both medical expenses billed and medical expenses actually paid). Another bill, SB 13, addresses personal injury trust fund transparency (to prevent “doubledipping” by plaintiffs involving personal injury trusts – i.e., trusts created, for example, for asbestos litigants). committee works daily with our lawyer-lobbyists to advance the interests of our membership and our clients. We welcome your ideas and your assistance in developing solid public policy.

Thank you to Attorney Ron Kuehn for his invaluable up-tothe-second information for this article.

$1,000,000,000 CELEBRATING ONE BILLION IN WRITTEN PREMIUM! DOUBLE DIGIT GROWTH has pushed ACUITY over the $1 billion revenue mark! In the past 14 years, we’ve quadrupled our written premium and you are responsible for that. Thank you!

We have the agents, employees, and strategic plan to allow our growth to keep compounding on the path to becoming a multibillion-dollar insurer.

www.acuity.com For All That Matters

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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

Patrick A. Ahlberg, 2430 Mary St. Lot 105, Marinette, WI 54143, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Kris A. Alter, 440 Ridge Rd., Walworth, WI 53184, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Timothy Ascher, 2127 Sharon Ln., Manitowoc, WI 54220, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Deanna G. Atwood, 2060 S. 77th St., Milwaukee, WI 53219, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Sara Boney, 1208 Whitewater Ave., Fort Atkinson, WI 53538, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Jeffrey Vern Brendel, 710 Forest Blvd., Sheboygan Falls, WI 53085, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

John P. Burns, 9 Siedsma Ct., Clinton, NY 13323, 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 provide evidence of resident surplus lines licensure.

Christopher J. Chadbourne, 50 Lindbergh Ave., Newton, MA 02465, 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.

M. Thomas Day, 4021 S. 700 East, Ste. 500, Salt Lake City, UT 84107, had his application for an insurance license denied.

This action was taken based on allegations of a lawsuit or arbitration involving allegations of fraud, misrepresentation, misappropriation or breach of fiduciary duty substantially related to insurance marketing; having unpaid arbitration awards and discovery sanctions; failing to disclose lawsuits on a licensing application; and demonstrating evidence of untrustworthiness.

Ryan Erica Gill, 938 N. Gladstone Ave., Indianapolis, IN 46201, had her application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI; having a criminal conviction which may be substantially related to insurance marketing type conduct; and failing to pay past child support due.

Donna L. Grunow, 1342 Lenz Ct., Sheboygan, WI 53083, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Craig D. Huguet, W192 S6347 Regency Ct., Apt. F, Muskego, WI 53150, had his application for an insurance license denied for 10 days. This action was taken based on allegations of failing to disclose an administrative action taken by the state of Wisconsin on a reinstatement licensing application.

Richard P. Kadamian, 829 Marquette Ave., South Milwaukee, WI 53172, 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.

Steven A. Kirchner, 2716 River Edge Ct., 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. (continued on page 10)

8 MAY 13

may 13 9

OCI Administrative Actions (continued from page 8) Carol Lively, 2437 Hoeschler Dr., La Crosse, WI 54601, had her insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Xay V. Lor, 519 3rd St., Green Bay, WI 54304, 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.

Patrick McNeil, W10788 S. Shore Rd., Deerbrook, WI 54424, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Richard Dunn Newton, 8403 Southpark Cir., Ste. 655, Orlando, FL 32819, had his application for an insurance license denied. This action was taken based on allegations of having a criminal conviction which may be substantially related to insurance marketing type conduct, failing to disclose an administrative action taken by the state of Florida on a licensing application, and failing to respond promptly to inquiries from OCI. Daniel R. Norton, 2800 Begonia St., 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.

Damon J. Spikes, 1 Kitty Ct., Kimberly, WI 54136, 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.

Gregory J. Szatori, 2970 Mossy Oak Cir., Apt. 58, Green Bay, WI 54311, 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 Thumstedter, 1512 Metro Dr., Apt. 8, Schofield, WI 54476, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Carrie L Turner, 732 Hoffman Rd., Green Bay, WI 54301, 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 and failing to respond promptly to inquiries from OCI. Sara Wheeler, 2689 Glenrose Hill, Atlanta, GA 30341, 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 provide required proof of resident state licensing.

John Oliver, 425 Butternut Dr., Fredericksburg, VA 22408, 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 child support arrearage.

Attention Utica E&O Policy Holders:

Thomas Bradley Pearsey, 5574 Bracken Dr., Indianapolis, IN 46239, 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 being involved in a bankruptcy proceeding.

The following PIAW education classes are approved for Utica’s premium discount.

Matthew S. Pope, 15 1/2 W. Central St., Apt. 5, Chippewa Falls, WI 54729, had his insurance license revoked. This action was taken based on allegations of failing to pay Wisconsin delinquent taxes due.

Please contact Darcy at PIA for details.

1-800-261-7429 or dbrown@piaw.org • Any CIC Update

Joshua J. Roethel, W1258 Foster Rd., Oostburg, WI 53070, had his application for an insurance license denied. This action was taken based on allegations of failing to respond promptly to inquiries from OCI, failing to complete required prelicensing education, and failing to complete fingerprinting requirements.

Steven Paul Silverstein, 10001 W. Oakland Park Blvd., Ste. 302, Sunrise, FL 33351, had his application for an insurance license denied. This action was taken based on allegations of failing to disclose a termination for cause on a licensing application and evidence of untrustworthiness or incompetence based on the facts of the termination.

10 MAY 13

• CIC Agency Management • CISR Agency Operations • Dynamics of Service • PIAW Ethics and E&O Seminars • PIAW Conducted In-House Seminars

Education Schedule: www.piaw.org or 1-800-261-7429

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may 13 11

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E&O claim activity from Super Storm Sandy shows many customers did not have flood coverage

Photo Credit: Anton Oparin / Shutterstock.com

12 MAY 13

An Interesting

Equation:

E&O loss prevention = increased sales

While virtually every agency is looking for ways to add premium volume, many agencies are also trying to identify opportunities to enhance their errors-and-omissions culture and commitment. As agencies work to make the best use of their resources, some may believe this has the potential to create a dilemma. It is interesting and ironic that these two initiatives are not totally independent. In fact, some may call it a “match made in heaven.” A strong focus on E&O loss prevention should also result in premium growth for an agency.

A

By Curis M. Pearsall

A significant aspect of this E&O loss prevention approach involves education. If your agency subscribes to the concept of “the best customer is an educated customer,” premium growth should be one of the end results. While there are numerous opportunities and approaches to educate customers on how their insurance responds, the conversation to educate them before they suffer a loss will go smoother than after the loss.

Recent surveys note that, on average, insurance agencies write fewer than 1.5 policies per account. When you consider that, at minimum, the average personal lines account has at least 6-8 policy opportunities, this indicates there is real potential to write business. What are the numbers in your agency?

A proactive position It’s possible your agency has some customers who might not be aware exactly how their insurance program works.

Namely, what’s covered and what is not. It is interesting, when looking at some early E&O claim activity from Super Storm Sandy, how many customers did not have flood coverage. There are actually a fair number of E&O claims where agency customers believed their homeowners policies provided coverage for flood claims.

The following example shows how E&O loss prevention can result in increased sales. It is projected that less than 25% of ladies diamond rings are insured on a floater in the United States. Why is the number so low? Some customers could be under the impression that they have adequate coverage under a homeowners policy. What if your agency wrote to all of its customers to educate them on the

coverage they have for that jewelry under a homeowners policy, contrasting it with insuring that jewelry on a jewelry floater? When advising customers that securing coverage for “mysterious disappearance” requires a floater, is it possible that some customers will buy the floater?

Definitely! What if no customer bought the floater? Have your efforts been a waste of time? Not at all. Your agency has now strengthened its defense if a problem develops down the road. Your letter could be a key piece of evidence in protecting the agency.

An insurance survey about a year ago indicated that less than 50% of renters have the proper coverage – liability or property. It appears that many of these renters believe the landlord’s insurance covers their personal belongings. When it is best to educate them – before the claim or after it? With the average renter having approximately $30,000 of personal belongings, a fire could be catastrophic for customers if the proper coverage isn’t in place. Taking a proactive position in reaching out to this segment of the market has the potential to result in increased sales while minimizing the likelihood of your agency facing an E&O claim.

Sales and education More and more agencies are looking to ensure their customers understand how their insurance works. What if you wrote to your homeowners customers and included a statement such as: Please remember to notify us if you purchased or received valuable items such as, but not limited to, jewelry, paintings, furs or firearms. There are special coverages for these types of items that may not be covered under your homeowners policy. (continued on page 14) may 13 13

E&O Loss Prevention . . . (continued from page 13) In addition, please take note that flood is not covered under your homeowners policy, but we would be happy to provide you with a proposal.

Imagine how much more flood insurance an agent affected by Super Storm Sandy would have written. The result: increased sales and a more educated customer. If not a single customer purchased any of the coverages mentioned, it is questionable whether they would have a solid position in a claim against the agency.

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Popular ways to educate customers Be an agency that educates its customers. You will be providing an important value to your agency prospects and customers, which should result in new business sales and higher retention. Methods include: Annual account reviews. Develop a campaign to perform annual reviews for your customers or at least invite them to have this done. One option is to develop a questionnaire to mail to your customers. Customers would be advised that if they identify certain exposures, they should contact the agency to understand what coverage they have today for that exposure and what options should be considered.

Newsletters. These can be paper or electronic. Address issues unique to the time of year. These could be weather-related or may involve matters such as the insurance implications of kids going off to college.

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.

Social media postings. This is a great way to educate customers on a variety of issues. Many agencies have advised that this education has provided their agency with a solid brand in their community.

The insurance proposal. Strengthen your proposals by including definitions of key insurance terms. Avoid abbreviations, such as ACV and RC, as many customers may not know what these mean.

Cross-selling opportunities. Look for cross-selling opportunities every time your agency interacts with customers. What if you created an incentive in your agency for the CSRs in rounding out the insurance for their customers? This can be a win-win for everyone.

Limit options. Include limit options for your customers to consider. Not only will this help them to realize that higher limits are available, they may also find that higher limits are not as expensive as they thought.

Agenices that are truly serious about growing enhance their E&O loss prevention measures. Take the initiative to educate your customers. At the end of the day, you just may realize that you are selling more insurance. n Curtis M. Pearsall, CPCU, AIAF, CPIA President, Pearsall Associates Inc. and Special Consultant to the Utica National E&O Program 14 MAY 13

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may 13 15

Insurers have

Role

to play as social media, cyber risks grow

16 MAY 13

An overview of the industry’s increasing role in the social-media liability

By Robert Hartwig, CPCU, and Claire Wilkinson

—Reprinted with permission from PIA Management Services Inc.—

A

Are you a fan of Facebook, YouTube, Twitter or LinkedIn? If you are one of the millions who interact on these social networks every day, do you ever consider the risks as you Tweet, message, “like” and share?

Social Media, Liability and Insurance, an Insurance Information Institute white paper, which was co-written by the authors of this article, observed that, like any other new technology, social media brings enormous opportunities and benefits.

We found that individuals seek to protect themselves better from the risks created by their participation in social media.

And, while traditional homeowners insurance policies include liability protection that covers the insured against lawsuits for bodily injury or property damage, coverage for this type of liability may be limited and individual policies differ by company and by state. Case law in this area also is evolving and still is uncertain. Umbrella or excess liability policies provide broader protection to individuals, including claims against the insured for libel and slander, as well as higher liability limits.

Yet as businesses navigate this shifting online risk landscape, they face a range of evolving social-mediarelated liabilities including privacy, security, intellectual property and employment practices liability.

The proliferation of social media use also comes amid growing concerns over cyber security. Businesses that store confidential customer and client information online are exposed to increasing liabilities and costs because of cyber attacks and data breaches.

For example, a massive data breach at Sony Corp’s online game networks in April 2011 resulted in the theft of more than 100 million online accounts. Just months later, in

October 2011, Sony’s Playstation Network and other online entertainment services were hit in a second attack that compromised 93,000 user accounts.

Coming in the wake of the 2010 Wikileaks breaches of classified data, these high-profile data breach incidents have served to increase both public and government scrutiny of cyber-security practices.

The Securities and Exchange Commission issued guidance in the wake of those events, urging publicly traded companies to disclose significant instances of cyber risks and events. Description of relevant insurance coverage was included in the SEC’s list of appropriate disclosures.

Traditional business insurance policies that policyholders and their lawyers have looked to for coverage in the event of a data breach or other cyber-related attack include: property insurance (including business interruption coverage); liability insurance (including E&O, D&O, general liability and umbrella insurance); crime insurance policies (including financial institution bonds, computer crime policies and fidelity insurance); and businessowners policy packages. But, as reliance on traditional policies is not enough, specialist social media and cyber-insurance policies have been developed by insurers to help businesses and individuals protect themselves from an ever-evolving range of risks.

An Advisen survey sponsored by Zurich, found that while a growing number of risk professionals acknowledge information security and other cyber risks as serious concerns, only about one-third of organizations (35.1 percent) currently purchase insurance as part of their cyberrisk-management strategy. (continued on page 18) may 13 17

Insurer's Role . . . (continued from page 17) Some key reasons survey participants gave for not purchasing cyber-liability insurance included: • investment in prevention rather than insurance; • limited markets; • broker disconnects; • lack of coverage clarity; • lack of information to make informed decisions; • too expensive; • application process is difficult; • deductibles are too high; • difficult to quantify; and • policy coverage is too limited.

Advisen did report that interest in the coverage appeared to be growing, as an increasing number of companies have purchased protection in recent years or are considering buying coverage in the near future.

Specialized cyber-risk coverage is available primarily as a stand-alone policy. Each policy is tailored to the specific needs of a company, depending on the technology being used and the level of risk involved. Both first- and third-party coverages are available. Types of cyber-risk coverage include: Loss/corruption of data: Covers damage to, or destruction of, valuable information assets because of viruses, malicious code and Trojan horses.

Business interruption: Covers loss of business income as a result of an attack on a company’s network that limits the ability to conduct business, such as a denial-of-service computer attack. Coverage also includes extra expenses, forensic expenses and dependent business interruption.

Liability: Covers defense costs, settlements, judgments and, sometimes, punitive damages incurred by a company as a result of: •

breach of privacy due to theft of data (such as credit cards, financial- or health-related data); transmission of a computer virus or other liabilities resulting from a computer attack that causes financial loss to third parties;

•

failure of security that causes network systems to be unavailable to third parties;

•

rendering of Internet Professional Services; and

•

allegations of copyright or trademark infringement, libel, slander, defamation or other “media” activities on the company’s website, such as postings by visitors on bulletin boards and in chat rooms. This also

18 MAY 13

covers liabilities associated with banner ads for other businesses located on the site.

Crisis management: Covers the costs to retain public relations assistance or advertising to rebuild a company’s reputation after an incident. Coverage also is available for the cost of notifying consumers of a release of private information, as well the cost of providing credit monitoring or other remediation services in the event of a covered incident.

Criminal rewards: Covers the cost of posting a criminal reward fund for information leading to the arrest and conviction of a cyber criminal who has attacked a company’s computer systems.

Data breach: Covers the expenses and legal liability resulting from a data breach. Policies also may provide access to services helping business owners to comply with regulatory requirements and to address customer concerns.

Identity theft: Provides access to an identity-theft call center in the event of stolen customer or employee personal information.

Social media/networking: Insurers are looking to develop products that cover a company’s social-networking activities under one policy. Some cyber policies now provide coverage for certain social-media liability exposures (i.e., online defamation, advertising, libel and slander). Depending on the individual policy, specialized cyber-risk coverage can apply to both internally and externally launched cyber attacks, as well as to viruses that are targeted specifically against the insured or widely distributed across the Internet. Premiums can range from a few thousand dollars for base coverage for small businesses (less than $10 million in revenue) to several hundred thousand dollars for major corporations that want comprehensive coverage. As part of the application process, some insurers offer an online and/or on-site security assessment free of charge regardless of whether the applicant purchases the coverage. This is helpful to the underwriting process and also provides extremely valuable analysis and information to the company’s chief technology officer, risk manager and other senior executives.

Despite the fact that cyber risks and cyber security are acknowledged to be a serious threat, a majority of companies today still do not purchase cyber-liability coverage. Research indicates that this is changing. Insurance will no doubt play a key role as companies look to reduce their potential financial losses related either to social media or cyber risks. n Hartwig is an economist and the president of the Insurance Information Institute. Wilkinson, a former vice president at the I.I.I., writes the award-winning Terms + Conditions blog.

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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.

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Imagine sitting on the couch in your living room one Monday morning. Everyone else is still sleeping, it’s quiet, and you’re relaxing with that first cup of coffee. You have 30 minutes before it’s time to jump into the shower and get ready for work.

For a Monday, all is right in your world.

24 MAY 13

Rental Reimbursement

Coverage . . .

Minor Coverage with a Major Impact

By Linda Faulkner, CIC

Until you hear a screech, followed by a loud crash that actually shakes the house. You peer out the side window and see nothing out of the ordinary. But when you take a quick look out the kitchen window, you notice your pickup truck isn’t facing the house as it usually does—it’s almost parallel to the house!

You rush outside and, as you near the driveway, you realize that not only did some idiot take out your truck, he pulverized your wife’s car. Instead of being intact, the car’s rear windshield is sprinkled underfoot, across the front yard, and as far as 20 feet from the car.

The car’s trunk was pushed right off its frame and then dragged into the cement retaining wall that surrounds the driveway on three sides. Your wife and daughters run out of the house and join you, where the four of you stare numbly at your two totaled vehicles.

I

I’m sure each of you has a similar story to tell. I’ll bet you each have several similar stories to tell. So do I. This one is my recent favorite, however, because it happened last month--to my daughter and son-in-law.

Like many people, they didn’t believe they needed rental reimbursement coverage. Brendon parks his car at the train station and rides public transportation into the college where he works in Boston. They reasoned that if anything ever happened to his truck, Beth would just drop him off at the train station in the morning and pick him up in the evening. And if anything ever happened to Beth’s car, she’d use Brendon’s truck. Neither of them ever figured both their vehicles would be totaled in the same accident.

But isn’t that what insurance is for? To protect us (financially, at least) from the stuff we don’t want to happen to us but that happens to other people all the time?

What are some of the other reasons clients tell you they don’t need rental reimbursement coverage?

• I’m an excellent driver. What are the chances of me getting into an accident?

• If I get into an accident, chances are it’ll be the other guy’s fault. In that case, his insurance will pay for my rental expenses.

• I don’t need to spend the money. If my car is in a wreck, I’ll borrow a car from my mother (or sister, or friend, or…)

Let me offer a few statistics for you to share with your clients when they quote these “sensible” reasons for not spending their hard-earned money on rental reimbursement coverage—assuming, of course, the insured’s car isn’t made undrivable by an “other than collision” loss such as Hurricane Katrina, theft, vandalism, etc.: • 10% of reported accidents are caused by hit-and-run drivers.1 This means the “other guy” disappears— which means your client doesn’t know who the “other guy” is. Which means his insurance company is never going to pay for your client’s rental expenses.

• Nationwide, 19% of all vehicles involved in motor vehicle accidents don’t have car insurance.2 This means one in five times the other guy won’t have the financial resources to pay for the damages (and injuries) he causes. (continued on page 26)

may 13 25

Rental Reimbursement . . . (continued from page 25)

• After an accident, the average amount of time a car spends in the repair shop is 11 days.3 • Nationwide, the annual cost for rental reimbursement coverage on a personal auto policy is usually less than the cost to rent a car for one day.4

Most unendorsed auto insurance policies don’t provide adequate coverage for the cost of a rental car if the insured’s vehicle becomes undrivable after a covered loss. Although ISO’s personal lines and business auto policies include somecoverage for “transportation expenses,” the $20 daily limit isn’t adequate for the needs of most policyholders.

In fact, in the ISO BAP (CA 00 01), that $20 daily limit of coverage is only provided if a total theft loss occurs to a private passenger vehicle.

And what about the non-ISO insurers? Sure, some of them offer policies that include rental reimbursement coverage in the insuring agreement. (I’ve read one policy that includes coverage for any motor vehicle the insured rents for up to 90 days—so long as the type of loss isn’t otherwise excluded!)

Other non-ISO insurers don’t include any coverage for rental reimbursement—at all, or unless the insured adds an endorsement to the policy. Most insurers, however, offer minimal coverage similar to that provided by the ISO policies.

Agents and clients should be aware of a few of other things when expecting an unendorsed auto policy to provide rental reimbursement coverage. In the ISO PAP, if the insured is driving a non-owned auto (like a girlfriend’s car or a co-worker’s car the insured borrows), the transportation expenses coverage included in the policy only applies if the insured is legally responsible for the accident. So, if the insured is driving his girlfriend’s car and a drunk, uninsured driver speeds through a red light and rear-ends the girlfriend’s SUV after striking four parked cars, the insured’s physical damage coverage won’t provide coverage for transportation expenses.

In addition, whenever rental reimbursement coverage is provided, it’s only provided for the length of time reasonably required to repair or replace the covered vehicle. If the body shop says it’ll take five days to repair the insured’s damaged car, then coverage will only be provided for 5 days—assuming the vehicle is drivable before being repaired. Of course, if the repair shop later finds it will take a longer amount of time to 1

(National Highway Traffic Safety Administration n.d.)

2

(Insurance Institute for Highway Safety n.d.)

3

(Insurance Institute for Highway Safety n.d.)

4

(Insurance Information Institute n.d.)

26 MAY 13

complete repairs, and discusses the matter with the adjuster or claims representative, coverage is usually extended for the requisite number of days. ISO offers endorsements for rental reimbursement coverage (i.e., transportation expenses coverage) in both personal and commercial lines auto policies.

In personal lines, the endorsement doesn’t change any of the coverage provided by the policy; it simply increases the daily limit and policy maximums of coverage.

In commercial lines, it allows the insured to designate coverage for any insured vehicle listed on the endorsement.

The BAP’s endorsement also allows the insured to designate the perils for which coverage will apply (collision, comprehensive, and specified causes of loss) along with the maximum payment for each covered auto based on any one day, any one period, or the number of days of coverage.

It’s especially important to be sure commercial lines clients choose an appropriate daily limit of coverage—and have an appropriate rental organization lined up—for vehicles other than private passenger cars and light pickup trucks.

The national car rental agencies don’t rent dump trucks, for example, and other types of commercial vehicles. Therefore, determining a reasonable daily rental rate for a vehicle used in the daily operation of a client’s business is essential in order to avoid underinsurance.

About 20 years ago, a client of mine rear-ended a truck owned by a glass company. The truck was pickup-sized and had been custom-fitted with racks on each side of the truck’s bed so the vehicle could transport large panes of glass. The glass company hadn’t purchased rental reimbursement coverage and my client’s PAP paid for the cost of a replacement rental vehicle under its property damage liability coverage … to the tune of $150 per day!

I’d like to take this opportunity to give you one really important piece of advice about offering and selling rental reimbursement coverage: Never do it based on the daily limit of coverage provided by the insurer!

Some insurers still offer a limit of $15 per day—which was the only limit available nearly 40 years ago when I first entered the insurance industry. Nowadays, that amount is less than half the average cost to rent an intermediate-sized car from any of the national rental car organizations. ($35 is the national average.) Clients with a limit of $15 per day on their

policies usually wind up spending more for their rental cars than their insurers do, which makes for very unhappy clients and claims experiences.

how important they are, how much we care about them, and just how far we’re willing to go to provide them with what they need.

You’re probably wondering how you can offer and sell coverage if you don’t talk about the daily limit of liability, right? Well, here’s the script I’ve been using for years:

According to the last several of J.D. Power and Associates’ annual Auto Claims Satisfaction Studies: • Policyholders whose insurers paid for all the costs associated with the rental of a replacement vehicle after an auto insurance claim were significantly more satisfied with their insurers than policyholders who paid for any portion of the rental costs were—almost 10% higher.

Agent: So, Mr. Client, if you can’t drive your car after an accident and you have to rent a car, who do you want to pay for the rental car—your insurance company or you?

Client: [Laughs.] The insurance company, of course!

Agent: And what kind of car would you like to rent?

Client: [There’ll always be a wise guy who asks for a Ferrari and, when he does, tell him to get real. Then, he’ll say, just like most of your clients] One just like mine, a __________.

One national car rental company advertises its national average daily car rental fees as being: • $25 to $30 per day for economy, compact, and intermediate-sized cars • $30 to $45 per day for standard and full-sized cars • $40 to $75 per day for premium and luxury-sized cars • $40 to $50 per day for small or medium-sized SUVs, pickups, and minivans • $70 to $100 per day for large SUVs and exotics So, if Mr. Client owns a Ford Taurus, he needs a daily limit of $30 to $45 and you quote him the appropriate premium.

If he doesn’t like the premium, ask him if he’d be willing to rent a Chevy Aveo or a Kia Rio to save some premium dollars.

In most cases, a client will be willing to pay the premium to purchase coverage for a car comparable to his own.

Using this approach, and showing the client precisely what his $32 premium will buy him (a Ford Taurus) instead of telling him the insurance company will pay $45 a day if he needs to rent a car, is a terrific way of proving the value of the coverage.

• Policyholders over age 55 who have long-term relationships with their insurers, and who have purchased several policies from those insurers, are twice as likely to seek a new insurer/agent and switch insurer/agent if they don’t have their rental reimbursement costs paid by their insurer at the time of a claim.

• After auto insurance claims, when policyholders pay $200 or more out-of-pocket for rental expenses, they’re three times more likely to shop for a new insurer, and four times more likely to actually switch insurers, than policyholders who paid less than $200 out-of-pocket.

Understanding rental reimbursement coverage, and being able to explain it and show its value, may be the single factor that retains a client after a claim … or convinces that client to seek out a new relationship with your competition. n Linda Faulkner, CIC is a writer, speaker, and trainer with over 30 years experience in the insurance industry. During her career, she founded two insurance agencies and an insurance education organization; Linda currently works as a course developer and author of insurance CE and pre-licensing material on a freelance basis. In the past, Linda has served as a faculty member for the National Alliance for Insurance Education and Research, PIA West, Independent Insurance Agents of Montana, Association of Wyoming Insurance Agents, and Massachusetts Association of Insurance Agents. Linda is also the author of two books, numerous magazine articles, and a newspaper column. For more information about Linda, visit her website at http://LindaFaulkner.com.

“This article has been reprinted from the Fall 2012 issue of Today’s Insurance

In closing, let me emphasize that we always need to keep in mind how important our clients are. We always need to set ourselves apart from our competition by showing our clients

giggles

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Professionals magazine with permission from the International Association of Insurance Professionals.”

A sixth-grade teacher was giving her class an arithmetic problem. "A wealthy woman died with an estate worth $10 million. She left one-fifth to her daughter, another one-fifth to her son, onesixth to charity, and the rest to her second husband. Now, what does each person get?"

A smart kid in the back of class answered, "A lawyer." may 13 27

Help us collect backpacks and school supplies for low income children in our community.

we need your

Help!

We kicked-off the SchooKits for Kids program to bring school supplies to low-income children in your community. We are asking you to post information about the program on your website and Facebook pages, and also send a press release to your local newspaper. We have posted suggested content and a press release on the PIAW website www.piaw.org. We would also ask you to “Like” the Wisconsin Salvation Army to help promote the program. If you don’t

Drop off your donations here!

health

recall receiving information about the program or have questions, email piacharity@bmpr.com for more information.

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The length of your life depends on your lifestyle

Nobody lives forever, but most of us hope to reach a ripe old age and remain active and healthy throughout our lives. Here are some basic tips for keeping your mind and body in good shape for a long life: • Stop Smoking: OK, this is obvious. But your chances of living for a long time are much better if you don't smoke– or you quit.

• Don't stop working. Retirement can be risky, especially if you just quit and spend your days sitting on the sofa. Keep working in some capacity by volunteering or working part-time. Or have a plan for staying active after your retirement party ends.

• Keep flossing. Flossing every day can prevent bacteria in the mouth from growing and then moving to your bloodstream, where it can cause inflammation and hardening of the arteries, which contributes to heart disease. *

Sleep just the right amount. We need at least six

28 MAY 13

hours of sleep per night for optimum physical and mental health. Less than that—or even more, some doctors say, can be detrimental. In one study of women ages 50 to 81, mortality over 14 years was higher among subjects who reported sleeping less than five hours per night, or more than 6.5 hours.

• Eat the right foods. Avoid saturated fats, eat lots of fiber (especially for breakfast), and try to get your vitamins from foods instead of relying on supplements.

• Pay attention to your health. Stressing about every ache and pain isn't necessarily productive, but an extreme "Don't worry, be happy" attitude about your body can be risky as well. Take your health seriously, and don't ignore the warning signs of trouble.

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.

• • • • • • • • •

Comedy

{

Comedy is simply a funny way of being serious.

— Peter Ustinov

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 may 13 29

B e H appy: Ach ie ving Wo r k / L i f e B a l a n ce in a

Success Driven World

30 MAY 13

By Sharon Bennett

In today’s society there is more stress on people to succeed and do more with less.

Everyone is hustling for that golden ring opportunity, upon which their future lives will be easier and brighter, if they can only grab it. Unfortunately, in the quest to be successful, other things have suffered, such as satisfaction in the victories of daily life, appreciation for simple things. Employees are pushed to be more productive, produce more in less time; but, still with quality. Stay seated longer at your desk, stand longer on the assembly lines, shorter breaks or lunches, work overtime; this causes stress, often leading to an increase in sick days, with a decrease in work-life balance or happiness.

E

Eventually, there will be a lack of satisfaction in work that may present itself in varied ways. Quality of work will suffer, conflict with co-workers may increase, and total avoidance of a person or place may occur. Dissatisfaction can occur over years and cause depression and unhappiness in our lives. Most people don’t even realize it is happening to them, as they’ve always seen their situation as the norm!

So, how can you improve the harmony in your work life? How can you be happier and achieve greater work-life balance?

Examine your level of balance. Do you dread even thinking about work the next day? Are you constantly thinking about things you need to accomplish at work? Do you feel that you can never disengage? Is there someone there that you don’t want to see? Honestly answering these questions can give you insight into your own mental state, let you know if you are happy with your job, if you can make small improvements, or are completely dissatisfied with your working life.

What would you like to do? Did you, like so many others, get an education in a field in which you could “earn a living,” instead of something that is fulfilling to you?

Take time to really think about what you’d enjoy doing, and then research ways to incorporate it into your life.

Would you have rather been an art major? Talk to your boss or supervisor about new projects or opportunities that involve more creative work. If that’s not possible, look into art classes on evenings or weekends. Do you like to dance?

Organize an office outing to a ballroom dancing class to find common ground with your coworkers.

What’s most important for a quality life? What things make you happy outside of work? Do you want to travel more? Set aside a portion of each paycheck to save for a trip. If your job requires travel, take an extra day to explore the city in which you are working. Take your vacations, even if it’s just to drive to the next town or state.

Do you enjoy sports or exercise? Take walks, learn a new sport or join a community sports league, where you can have fun and meet new people. Do you enjoy nature? Visit

local parks, learn something more about photography and enjoy capturing nature’s beauty.

Appreciate the simple things in everyday work life.

Take inventory of day-to-day accomplishments. Take time to celebrate your team’s successes, such as signing new clients, helping to broker a big deal, or delivering a perfect presentation. Appreciate the fact that you have a roof over your head and a bed to sleep in. As a reminder and a token of thanks for the positive things in your life, volunteer your time. Help those less fortunate and give back to the world that has allowed you to achieve so much with your life. Seek out to be the best that you can be at your job, if for no other reason than knowing that you produce something of good quality. Good work may lead to better opportunities ahead.

Make a plan. You can’t achieve much if you don’t have a plan. There must be a blueprint of how to make something; or, a guide on how to get somewhere. The same applies to your life. The beginning is where you are, the end is where you want to go. Fill in the middle with what steps you need to take to achieve your goal and start on that path. Sit down and list your dreams, your goals and what makes you happy. Use those keywords to build your plan for career happiness.

Equilibrium between your work and home-life is achievable with devoted focus and direction. Most of our happiness is within our control, and by framing your daily life in a positive light you can make the concerted strides living a balanced and fulfilled work and home life. n With a desire to help others heal emotionally, be healthy and realize their full value, Sharon Bennett, BA, BSN, has been a motivational health and wellness consultant for nearly 16 years.

She is the author of the Shoe Fetish Series, the International Library of Poetry’s Editor’s Choice Award 2001 winner, a member of the National Speakers Association and the National Association of Professional Women. For more information see www.ShoeFetishMovement.com, call 888-321-9604, or email ShoeFetishMovement@yahoo.com may 13 31

NATIONAL HEALTH CARE REFORM! TH JUST ADDED JULY 16

– SPACE WILL GO QUICKLY!

WWW.PIAW.ORG

Register your key business clients, your client’s attorneys, CPAs and human resource personnel.

National expert, Jerry Rhinehart, CIC, CLU, ChFC, RHU, will address the following questions and much more!

How will the Affordable Care Act affect me, my family and my business?

What will a health insurance plan look like in 2014? What will it cover and for what policy limits?

Are there taxes, fees and penalties that may impact me and a business?

As a business owner do I have to provide health insurance for my employees?

What might happen to a business owner if they provide a plan now but stop in 2014?

Is it possible to have a penalty even if a high quality health insurance plan is provided to the employees?

Will income paid to employees impact potential penalties that could be levied on the business owner?

I have heard a lot of conversation about the “Exchange”, what it is and how might if effect me?

Delete text and place photo here.

NATIONAL HEALTH CARE

4 WI CE Credits, Course # 68070 8:00 – 11:45 a.m.

JULY 16 Wisconsin Mutual – Madison

PIA Members and Guests $65 each Non Members and Guests $90 each

May 14 Holiday Inn - Rothschild May 15 Radisson – Green Bay May 16 Paul Davis Restoration – Milwaukee

Fee includes continental breakfast & program.

*******************************One form per attendee please, plus non-licensed guest/s.*************************** ______May 14

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Total Amount Enclosed $________

Full Name_____________________________________________Nick Name ____________________________ Agency/Company ____________________________________________________________________________ Address__________________________________________City_______________State__________Zip _______ Phone__________________________________Cell or After Hours ____________________________________ Email___________________________________________WI License Number __________________________ Guest/s Name____________________ ______________________ ________________________ _____Check Payable to PIA _____ M/C

_____ Visa

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Card #_______________________________________________________ Exp. Date ______________________ Return to: PIAW, 6401 Odana Rd., Madison, WI 53719 Fax: 608-274-8195 Register online www.piaw.org Confirmation will be emailed upon receipt of registration. No refunds without 7 days notice, substitutions only.

Call PIA for assistance. 1-800-261-7429 32 MAY 13

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AUTOMATION c rner

Mandy Behrens Automation Committee

Every Technology Ages,

O

Evolve with It.

One of the most valuable keys to success is the ability to accept and adapt to new technology. Every technology ages, if you aren’t able to accept and adapt you could be left behind.

I once heard a story about a man who owned a camera store. This was back when cameras produced negatives that you had to take to a store to get developed. After many profitable years business seemed to slow down a bit and he didn’t understand why. His son told him “Dad, technology is changing; you need to focus your business towards digital photography. You need to start selling digital cameras, it’s the new thing!” However, he loved his business and loved what he did; he didn’t want to change a thing. And so he didn’t.

A few years went by and he noticed his clientele dwindling even more. He begun to realize that no one wanted big bulky cameras or even disposable cameras anymore; they wanted the new digital cameras that had been selling so abundantly in the big box stores. He started to realize what his son was trying to tell him. He hated to do it but he decided that he needed to move forward with technology and not only sell the new cameras but also learn how to use them himself. And so he hesitantly did.

The new cameras came; he learned all about them and was ready to sell. He was excited. But the cameras were not flying off the shelves like he thought they would.

He was quite upset, he called his son and explained that he had took his advice and now he had all the cameras but no one was buying them. His son replied, “Dad, that was five years ago, no one uses cameras anymore because they now have phone cameras.” By the time he accepted the change, he was too late and technology had already advanced to the next level.

The point of this story is if you do not accept and adapt to new technology, you will be out dated and left behind.

However, if you learn to welcome and grow with new technology, it will work for you, not against you. Every technology ages, evolve with it. n

Attention CICs! Exciting update options.

CIC Graduate Ruble Seminar July 18 & 19, 2013 | Hilton Garden Inn – Milwaukee, WI October 3 & 4, 2013 | Marriott Madison West – Middleton, WI 16 WI CE (4 are optional Ethics)

visit www.piaw.org or call PIA at 1-800-261-7429 34 MAY 13

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.

Linda Barbercheck, CISR

Linda Kempen, CISR

Cynthia Pfaff, CISR

Kori Cumley, CISR

Heather Langrehr, CISR

Stephen Protz, CISR

Debra Frydach, CISR

Suzanne Mattson, CISR

Tracie Templin, CISR

Kim Gardynecki, CISR

Karyn Olson, CISR

Koehler Insurance Agency, Inc. Cedarburg, WI

R & R Insurance Services, Inc. West Bend, WI

Church Mutual Insurance Co. Merrill, WI

Valley Insurance Associates, Inc. Oshkosh, WI

Frydach Insurance Agency, Inc. Germantown, WI

Diversified Insurance Services Brookfield, WI

The Service Agency Ellsworth, WI

Village Insurance Agency Wauwatosa, WI

Ansay & Associates LLC Green Bay, WI

The Diedrich Agency, Inc. Ripon, WI

Precour Insurance Agency Phillips, WI

Certified Insurance Service Representative Open to Anyone!

8 WI CE Credits Course #68231

New! Elements of Risk Management

Insurance professionals need training in the risk management process for two reasons. First, insurance is an integral part of their client’s overall risk management program. Second, services provided by carriers, agencies and brokerages are often significant items in the organization’s cost of risk.

The course will cover the five powerful steps in this process, which protects not only the organization’s assets, but also its mission and its brand.

• The Risk Management Process & Risk Terms • Risk Identification • Risk Analysis • Risk Control • Risk Finance • Risk Administration

Course Instructor Patti Gardner CIC, CRM, CPCU ACUITY

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.

June 12 June 13

• •

Fond du Lac Madison

$145 Per Course Register at www.piaw.org or call 800-261-7429

may 13 35

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 Orientation • New Agency Employee Orientation Delivering Quality • D e l i vService ering Quality Service Personal Lines • P eCoverage r s o n a l L i nBasics es Coverage Basics 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

Open tO AnyOne

• Insurance 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 • R NFIP CIS O Approved nLine – 8 WI CE

•Ethics Comm r c iCE al Casualty I – 4e WI • Commercial Casualty II • Elements of Risk Management CISR•OnLine L i f e –& 8HWI e aCE lth Essentials • I n s uPersonal r i n g C o mResidential m e r c i a l P r Property operty • Insuring • I n s uPersonal r a n c e P eAuto r s o n Exposures al Residential Property • Insuring • I n s uCommercial r i n g P e r s o nProperty al Auto Exposures • Insuring • Personal Lines Miscellaneous • Insuring Exposures • A g e Commercial n c y O p e r a t i oCasualty ns • Agency Operations Webinars (Insurance Community Center) • 2-4 WI CE, No Exam For more information and registration visit www.piaw.org or call (800) 261•7429.

For more information and registration visit www.piaw.org or call (800) 261-7429

new!

MARCH 12 21

36 MAY 13

You've Heard of Rags to Riches . . .

But What About Rags

to

Ashes?

By Bob Wothe

Neatly folding and stacking still-warm rags fresh out of the dryer might be the most dangerous thing your employees do all day.

A

Huh?

As shocking as it might be that a seemingly responsible practice is so unsafe, one of the fastest growing causes of fires at businesses across the country is spontaneous ignition, which is all too often triggered by residual grease in rags and high temperatures after washing and drying.

•

Use a professional laundry service: These services use special chemicals and procedures to ensure that spontaneous ignition does not occur. They are the best solution to this problem.

•

If you do launder your own items, use only commercial-grade detergents and machines rated for greasy material. Remove items from the dryer promptly: Again, off-the-shelf detergents and standard washers and dryers just don’t do the job. Do not risk it.

•

Store any rag exposed to grease in a covered metal, noncombustible container: Keep two containers if you launder your own items — one for dirty items and another for items that have been laundered.

•

Perform routine maintenance on appliances: Develop a preventive maintenance schedule and keep a log of periodic inspections and daily vent/lint trap cleaning. Poorly maintained dryers are another leading cause of these fires. n

It’s understandable that most people don’t understand the danger — after all, how can clean rags just suddenly catch on fire?!?

The problem is that far too many businesses aren’t actually cleaning their grease-soaked rags: Off-the-shelf detergents and standard washers and dryers just don’t cut it, as they leave residual grease in each rag. Then, these essentially still-dirty rags are left to sit overnight, either in a neatly folded stack or just in the dryer itself. Heat then builds in the pile, which can eventually start a fire.

To avoid the potential of losing your business in the middle of the night, here are some quick tips to minimize the risk of spontaneous ignition:

may 13 37

PROFESSIONAL INSURANCE AGENTS OF WISCONSIN, INC. OFFICERS

DIRECTORS 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

Mr. Jeff J. Glass, Vice 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

Ms. LouAnn Herriges, CIC, CISR Treasurer Johannesen-Farrar Inc. PO Box 347 Delavan, WI 53115 Phone 262-728-2631 Fax 262-728-2312 louannh@jfinsurance.com

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

Mr. Rick Clements, LUTCF, MDRT Secretary 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. 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 Mr. Steve Rodgers Premier Insurance Services 400 E. Cedar St Pulaski, WI 54162-8828 Phone 920-822-3695 Fax 920-822-1177 srodgers@premiercommunity.com Mr. Dennis Rupers, CIC, CISR Don Rick, Inc. PO Box 465 Portage, WI 53901 Phone 608-742-5548 Fax 608-742-5540 dennis@don-rick.com Ms. Kori Sagen Sagen & Associates 1002 1st Center Avenue Brodhead, WI 53520 Phone 608-897-9100 Fax 866-803-5135 kori@sageninsurance.com

Ronald Von Haden, CIC Executive Vice President rvonhaden@piaw.org Mandy Behrens Administrative Assistant mbehrens@piaw.org Darcy Brown Member Benefits Coordinator dbrown@piaw.org Heather Falk, CISR Bookkeeping hfalk@piaw.org Becca Prestbroten Special Project Coordinator bprestbroten@piaw.org Brenda Steinbach Education & Convention Director bsteinbach@piaw.org

12, 13

cisr elements of risk management Fond du Lac, Madison (8 WI CE)

19-21

CIC COMMERCIAL CASUALTY Middleton (20 WI CE)

16

NATIONAL HEALTH CARE REFORM (Wisconsin Mutual) Madison (4 WI CE)

July 2013

August 2013

September 2013

November 2013

October 2013

18-19 CIC/ruble Milwaukee (16 WI CE, 4 of 16 optional Ethics) 31

64 th ANNUAL CONVENTION Wisconsin Dells

1-2

64 th ANNUAL CONVENTION Wisconsin Dells

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 credits, 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)

10 ETHICS Milwaukee (4 WI ETHICS CE)

38 MAY 13

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

17 CISR LIFE & HEALTH Milwaukee (8 WI CE)

December 2013

Coming Events

June 2013

Ms. Tracy A. Oestreich, CIC, AU, CPIA President Anderson Ins. Associates, Inc. W177N9856 Rivercrest Dr., Ste. 215 Germantown, WI 53022 Phone 262-789-8500 Fax 262-754-6038 tracyo@iaanetwork.com

11-13

CIC PERSONAL LINES Milwaukee (20 WI CE)

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

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.