PIAW March/April 2022 Magazine

[ MARCH/APRIL 2022 ]

PROFESSIONAL AGENT

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hy Do You Need a W Contingency Agreement

{PAGE 20}

Community Corner

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Winter Get-Away

It shouldn’t take four days with no power, water, or communication to find out who your friends are.

BUT SOMETIMES IT DOES. And that’s the Silver Lining®.

CONTENTS 4 From the President 6 Memos from Madison 8 From the Boardroom 10 Capitol Update 13 Eye On The Law 14 OCI Administrative Action 18 Why Do You Need a Contingency Buy/Sell Agreement and a Succession Plan?

20 Community Corner 22 Winter Get-Away 25 Is It Time to Purge Your Client List?

26 HR Snapshot 30 Education 37 Upcoming Events 38 Directory We are a community of independent agents and other dedicated insurance professionals, working to promote and improve the independent agency channel. Our mission is to support the advancement and excellence of all independent agencies.

EDUCATE. ADVOCATE. COLLABORATE. EDUCATE

We are the premier association for insurance education in Wisconsin. Grow your knowledge and your bottom line, at our education sessions. Whether you want to pursue a CIC, CPIA, CISR or CRM designation, or just meet your bi-annual Wisconsin CE requirement, you have come to the right place.

ADVOCATE

With lobbyists representing you in Madison and in Washington, D.C., PIA is looking out for your interests and promoting the independent agency channel within state and federal government. Our goal is a regulatory environment that allows your agency to grow and prosper.

COLLABORATE

PIA is a place for you to collaborate with, and learn from, other agents and many other professionals in the industry. Starting an agency? We’ve been there. Growing an agency? We’ve been there. Considering a new agency management system? PIA members have been there. Whether at our PIAW Winter Get-Away event in Minocqua, Annual Convention, YPC Scholarship Golf Outing or dozens of other events, you can collaborate with other professionals who have “been there.”

6401 Odana Rd. Madison, Wi 53719 | (800) 261-7429 | www.piaw.org

PIAW.ORG [ 3 ]

FROM THE PRESIDENT

Advocacy is about educating policymakers on important issues before they have to vote on them...

3RD ANNUAL PIA-PAC CLAY SHOOT It is critical that lawmakers in Madison and Washington, D.C. understand your needs and the needs of your business.

Since you’re busy running your agency and helping your clients, PIA follows what’s happening in Madison and D.C. and advocates for you.

Advocacy is about educating policymakers on important issues before they have to vote on them and compelling them to see the issue from an agency principal’s point of view. That job is much easier when lawmakers already understand and are supportive of our industry. Therefore, part of PIA’s advocacy effort is working for you to help get supportive lawmakers elected and reelected.

RYAN BUTZKE, CIC, CISR President, PIA of Wisconsin

What if I said that there is something easy and fun you can do, with just one day of your time, to help independent agents and make our voices even stronger in the State Capitol? Well, here it is: Attend the 3rd Annual PIA Clay Shoot on May 18th.

This event is not just another fun PIA event. It is fundraiser for our political action committee, PIA-PAC. Contributions to PIA-PAC enable PIA of Wisconsin to support lawmakers and candidates who are pro-business and pro-independent-agents. Since MARCH/APRIL 2022 [ 4 ]

this event has generous sponsors who cover the costs associated with the event, every penny of your $125 registration fee will become a campaign contribution to help elect a state representative, state senator or governor who supports small businesses and the insurance industry.

Last year, our event doubled in size and the 2nd Annual PIA Clay Shoot raised almost $8,000 to put to use in the 2022 election cycle. This year, our goal is $10,000, which will also be put to use in supporting candidates in the fall 2022 election cycle. You can help achieve this goal by attending a fun day of sporting clays, having a delicious lunch with friends from the industry and likely making some new friends. All for 125 bucks! What a deal, right?

See the ad for the Clay Shoot on Page 16 of this magazine for more details or go to piaw.org to sign up. If you have three friends who want to shoot with you, sign them up, too! Much like a golf outing, we navigate the sporting clays course in teams of four. If you sign up as a single, no worries because we will group you together with others to form a team, which is a great way to meet new people.

This will be my third year attending, so I can attest that the event is well worth a day away from the office. Come see for yourself - I hope to see you there!

PIA’s Member Benefits Keep Growing In 2021, PIA helped agents get back to business by creating programs to bridge physical divides and assist agents in navigating the digital landscape.

The one thing we know is digital relationships aren’t going anywhere, and we can always improve on the way we connect in cyberspace.

2021 NEWEST PIA MEMBER BENEFITS PIA Virtual Coffee Break Informal meet up for PIA members to connect, seek advice, and discuss insurance news.

PIA Partnership Winning@Virtual A 3-part toolkit to assess virtual readiness and make the most of today’s digital solutions

Practical information and resources to develop and grow customer relationships online Be Independent Campaign A social media campaign agents can use to educate the insurance-buying public about the value of working with an independent insurance agent over a direct writer

2021 PIA ADVOCACY VICTORIES National Flood Insurance Program (NFIP) Extension PIA successfully advocated for the NFIP’s extension in advance of each of its 2021 expiration dates.

FLOOD

Defeat of Harmful Provisions of Late 2021 Reconciliation Package As originally proposed, the second 2021 reconciliation package would have hindered the businesses of independent agents.

The PIA advocacy team successfully defeated proposals like: • A provision that would have permitted federal oversight of state workers’ compensation programs.

• A proposal that would have imposed a broad new tax information reporting regime on small businesses.

• A proposal that would have raised individual and corporate taxes and increased the capital gains tax.

• A provision that would have repealed the 20-percent tax deduction for qualified business income of qualifying pass-through businesses (S corporations), which was established by the 2017 tax reform law.

Advocacy on COVID-19 Related Issues PIA successfully advocated for public policies that provided relief to small businesses struggling due to COVID-19, including: • Creation of the Paycheck Protection Program (PPP) and its second-loan draw opportunity, the establishment of a streamlined loan forgiveness process for some PPP borrowers, and the protection of PPP borrowers from a surprise tax on their loan proceeds.

• Protection of businesses against the retroactive rewriting of existing agreements to impose extracontractual liability on those businesses for losses resulting from business interruptions.

• Leadership of agent community in the development of policy solutions to protect businesses from future pandemic losses.

PIA works for you. Stay tuned for more on the way!

Visit: pianational.org PIAW.ORG [5]

MEMOS FROM MADISON

Whatever the “next normal” is, it arrives in 2022.

TRENDS FOR 2022: THE NEXT NORMAL We’re living through strange and eventful times. The pandemic years will likely be viewed as a watershed moment that defines a new generation, similar to 9/11, the Vietnam War or the Great Depression. The good news is, the pandemic is almost over. Whatever the “next normal” is, it arrives in 2022.

Here are some trends to look for:

PETE HANSON, CAE, CISR Executive Director, PIA of Wisconsin

Overheated economy cools down: • Inflation peaks in the spring and then calms down, but the Russia sanctions may keep it higher than normal for some time • Workforce grows as some “COVID quitters” come back for higher wages • GDP growth slows to 4% for the year, levels off around 3% by year’s end The hard market will continue.

Swiss Re predicts global non-life premiums to grow by 3.7% in 2022, but that seems a little low compared to what PIA members are saying about January renewals. Expect modest, single-digit increases in personal lines coverages and in commercial property coverages, but higher increases in some commercial liability coverages.

According to Willis Towers Watson, management liability coverages, such as D&O and EPLI could see double-digit increases, while cyber liability increases could be “eye-popping.”

Technology accelerates: • More insurers switch to cloud-based systems to speed processes • Consumers (especially Millennials) expect more personalized communication and service

MARCH/APRIL 2022 [ 6 ]

• Individualized insurance products will take off, spurring more competition in niche markets • Use of Internet of Things smart devices to mitigate losses and reduce prices will grow COVID pandemic becomes endemic: By the end of 2022, virtually all Americans will have had vaccinations or been infected with COVID. They will have varying levels of immunity, but everyone will have some level of immunity and the dominant strains will become less virulent. Travel should resume, and we should start to see what life after the COVID pandemic will look like.

Businesses will re-evaluate real estate to optimize costs: According to Deloitte’s 2021 Insurance Survey, 61% of insurance companies expect to cut costs between 11% and 20%, and they’re not the only ones. Commercial buildings in general had a 30-40 percent rate of unoccupancy, before the pandemic.

With more employees now remote or hybrid, many businesses are re-evaluating.

Insurers focus more on mitigation of climate change risks: Actuaries now rate the risk of climate change higher than terrorism or financial concerns.

Expect to see more insurers flee carbon-based fuels industry, incentivize low-emission or electric vehicles, lobby policymakers on climate-sensitive public policy, and more.

M&A activity will continue at a strong pace and profitable agencies will continue to trade at lofty multiples of revenue.

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FROM THE BOARDROOM

All of these family connections started to make me feel like this was something I could pass on to my boys...

MITCH TARRAS

Director, PIA of Wisconsin

A FAMILY TRADITION I can’t sing it like Hank Williams Jr. can, but it’s a phrase that I think about a lot as a second-generation insurance agent. A lot of us in this industry, especially in the independent agency world, are following in our parent’s or even grandparent’s footsteps. We grew up at mom or dad’s office, met the clients we now service today, as kids. I have fond memories of getting to visit my mom’s office at AC Larsen insurance agency in West Bend and thinking “Wow! This looks like a super boring job.” But the older I became I started to see the awesome perks of the job too. My mom could always work from home when we were sick and she would get the occasional Brewers and Bucks game tickets from her boss. It was the perfect job that someone with kids could balance and make a darn good living doing it. Even after seeing all of that I always said it just wasn’t for me.

Fast forward a few years and I was working as a full-time computer tech, attending college full-time and had a 1-year-old son. Something had to change. My mother, whom a lot of you out there know, was going to purchase an agency and wanted me to work for her.

No nights, no weekends and a possible career for the rest of my working life. I gave it a shot. The man she bought the agency from had taken it over from his father, who started it in the 1920’s. All of these family connections started to make me feel like this was something I could pass on to my boys, at some point. That was when I decided this was the career I wanted for the foreseeable future.

In 2013, we were contemplating joining forces with BWO Insurance Agency.

We spoke with Tom Budzisz, visited their home office (I like to call it the Mothership) and met Don Osborne.

MARCH/APRIL 2022 [ 8 ]

His office wall was covered with pictures of his children and grandchildren. Right then and there it hit me, “this isn’t just some sales job, this is one big family.” I think meeting with Don that day was one of the biggest deciding factors. We wanted to be associated with people who valued family.

My first clients, from 10 years ago, now have children buying houses and cars.

Being able to insure multiple generations is very rewarding because that means they have placed their trust in us not only to protect them, but their children as well. Our industry can get a bad name because it is technically labeled a “sales job”. But I think I speak for just about all of us when I say it’s about helping people in a tough situation, not just cross-selling them that extra policy.

My oldest son is now 12 years old and has been coming into the office for over a decade. I would imagine he had that glazed over look in his eyes a few years back when he saw me sitting at a desk and typing. Recently he has mentioned the possibility of taking over for me (if the NBA doesn’t work out) when I retire.

Nothing would make me more proud.

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Part 1: Cyber Risk from A to Z Part 2: Cyber Risk Insurance Protection Part 3: Cyber Risk Assessment Part 4: Cyber Resources for Your Agency © Copyright 2022 National Association of Professional Insurance Agents

PIAW.ORG [ 9 ]

H

CAPITOL UPDATE

NATALIE WHITE

Communications Director

While the weather may not reflect it, we are finally entering spring in Wisconsin, and the political climate is heating up for election season. The last loose ends are being tied up in the Legislature, and legislators will soon be setting out on the campaign trail in their local districts. All Assembly seats will be up for election, Senate seats in odd-numbered districts are up, and the much-anticipated gubernatorial race looms large.

Since our last issue, PIA-backed Assembly Bill 737, relating to peer-topeer car sharing, was given a hearing in the Assembly Committee on Insurance.

To recap, this legislation is based on the NAIC model that regulates the peer-topeer car sharing industry and outlines insurance responsibility and liability within the practice of car sharing. This industry is currently operating within the state, and the PIAW Legislative Committee agrees on the importance of putting the responsibilities of carsharing companies in statute, especially with an industry dealing so heavily with liability.

During the hearing, supporters shared the necessity of structure in statute to support the growing industry and advancing technology. Though there is significant support for the legislation, rental car companies and local tourism entities are requesting changes to how the taxation structure operates in the bill. Due to the ongoing discussions, it is unlikely that this legislation will be able to make it to the finish line before the anticipated finale to floor sessions in March. Despite this, PIAW will continue the discussion on the need for structure in insurance within this industry.

Another piece of legislation, Assembly Bill 911, was introduced at the request of the Wisconsin Worker’s Compensation Advisory Council (WCAC). This council is made up of members representing employers and employees, as well as insurance representatives who serve in an advisory capacity. The proposal came out of WCAC by unanimous agreement and makes various changes updating workers compensation statute. Some notable changes are that it increases maximum weekly rates for permanent partial disability payments for injuries occurring in 2022 and 2023, and it changes the average weekly age calculation for employees who restrict employment to part-time. Instead of wage expansion, the average weekly wage will be calculated by taking the greater of the hourly rate at the time of injury multiplied by the number of hours the employee was scheduled to work in the week, or the total earnings from the employer in the fifty-two MARCH/APRIL 2022 [ 10 ]

weeks preceding the injury divided by the number of weeks actually worked during the year. In addition, there are several more clarifying changes and administrative changes to help the workers compensation process.

The bill has been fast-tracked to ensure that it will be able to pass both houses before the end of floor session days.

PIAW is supporting the legislation along with workers groups, business groups and the insurance industry.

Other bills that may be of interest: • S enate Bill 789 by Senator Larson (D) and Representative Andraca (D) – Enters Wisconsin into the Drivers License Compact, which requires participating states to recognize certain kinds of violations with motor vehicles, etc. and the administrative actions taken in response.

• S enate Bill 842 by Senator Wimberger (R) and Representative Tusler (R) – Creates provisions governing consumer lawsuit lending transactions, outlines requirements and prohibited practices.

• S enate Bill 944 by Senator Jacque (R) – Would reduce the threshold for theft of property for a Class I felony charge from $2,500 down to $1,000 to mimic other Midwest states with lower thresholds.

PIAW will continue to monitor all legislation introduced and advocate for small business and our independent agencies. Please continue to watch for advocacy updates here and on our blog at piaw.org.

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Axley’s free insurance hotline is available to all PIAW members. Our attorneys will respond as quickly as possible. Calls do not constitute an attorney-client relationship. If your issues require more in-depth legal action or advice, you may be directed to seek private counsel.

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Eye on the Law

Wisconsin Adopts Model Travel Insurance Act In the pandemic era, travel insurance has become just as essential to travel as packing a toothbrush. Travel insurance generally covers the loss of luggage, trip cancellation or delays, and medical emergencies. According to Forbes Magazine, travel insurance sales have increased by 53% in recent years due to the pandemic. This increase in demand for travel insurance products has led many states, including Wisconsin, to revamp their insurance statutes.

On December 3, 2021, Governor Tony Evers signed 2021 Wisconsin Act 111 into law (the “Act”). The Act adopts the Model Travel Insurance Act adopted by the National Association of Insurance Commissioners (NAIC) in 2018.

Seventeen (17) other states have adopted this model act, and several other states are considering such legislation in their current legislative sessions.

The PIAW lobbied in favor of this legislation for several reasons. First, the Act creates a framework for regulating travel insurance and related products. The Act classifies travel insurance as an inland marine line of insurance for purposes of form and rate filings. However, if the travel insurance policy covers sickness, accident, disability, or death occurring during travel, either exclusively or in conjunction with related coverages of emergency evacuation services, then the policy may be filed as either an accident and health product or as an inland marine product.

The Act creates two pathways for consumers to purchase travel insurance products. The first is through a licensed insurance agent, and the second is through a travel agent.

By distinguishing these two groups, the Act was also able to distinguish the duties and responsibilities of each group.

A travel agent is often in a position to sell travel insurance to their clients, but the travel agent is not licensed to sell insurance products. Therefore, under the Act, travel agents may provide information, process applications, and other non-licensable activities. Travel agents may not evaluate or interpret technical terms or benefits under a plan, hold themselves out as an insurer or an insurance expert, or provide other licensable activities.

Under this law, travel agents may work under the producer’s license. By doing so, the travel agent is required to conform to certain insurance regulations under Chapter 601 of the Wisconsin Statutes. The carriers are then responsible for ensuring the travel agent’s compliance with state regulations.

This ensures that those who offer and disseminate travel insurance products will be regulated like insurance agents.

The Act modernizes Wisconsin’s travel insurance law to address the contemporary nature of how consumers bundle travel services and travel insurance together while also protecting consumers from buying unnecessary insurance products.

The Act also distinguishes between travel insurance and a travel protection plan. A travel protection plan combines travel insurance, travel assistance services, and cancellation fee waivers. Under the Act, there are certain requirements to provide this combination of benefits, including detailed disclosure requirements. Travel protection plans have become more prevalent in the pandemic era because the added benefits associated with these plans provide greater protection to consumers from pandemic-related costs. Now, those who sell these travel protection plans will be required to meet certain disclosures, which will add transparency to these transactions.

Another reason the PIAW supported this legislation is that the Act prioritizes consumers. The Act requires certain disclosures regarding plans, policies, and exclusions; prohibits opt-out provisions which require consumers to deselect coverage when purchasing a trip; and prohibits certain unfair marketing practices such as requiring certain coverage when purchasing a trip.

Overall, the Act provides additional consumer protections while providing the travel insurance industry with a workable regulatory structure.

This information is provided for the convenience of PIAW members, but cannot be construed as legal advice. Members of PIAW may call toll free (844) 672-1221, or email their questions to insurancehotline@axley.com, to work with an attorney and receive legal information specific to your situation.

PIAW.ORG [ 13 ]

OCI ADMINISTRATIVE ACTIONS NATHAN HOUDEK

Commissioner 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.

allegations of selling unsuitable life insurance policies.

DECEMBER 2021 Allegations & Actions Against Agents

MWalter H. Barbary, 358 W 41st St., Unit 4, Los Angeles, CA 90037, had his insurance license revoked. This action was taken based on allegations of failing to pay a licensing renewal fee.

Derek M. Bennett, 140 NE 28th Ave., Apt. 305, Pompano Beach, FL 33062, had his application for an insurance license denied. This action was taken based on allegations of having an administrative action taken by the State of Virginia, having an insurance appointment terminated for cause, failing to disclose actions on a licensing application, and exhibiting dishonest business practices.

Sean M. Bryson, 46 Augusta Dr., Fort Oglethorpe, GA 30742, had his application for an insurance license denied for 31 days. This action was taken based on allegations of failing to timely report an administrative action taken by the State of Florida and a criminal charge while previously licensed.

Bryan Carter, 120 W 12th St., Ste. 1700, Kansas City, MO 64105, had his application for an insurance license denied for 31 days. This action was taken based on allegations of having a criminal conviction that may be substantially related to insurance marketing type conduct.

Mitchell F. Fink, 6166 N Central Expressway, Dallas, TX 75206, had his application for an insurance license denied.

This action was taken based on allegations of failing to disclose administrative actions taken by the states of Wisconsin and Iowa on a licensing application, violating the terms of a previous stipulation and order, misrepresenting insurance products to consumers, and having a history of providing licensing application misstatements.

Michael P. Fish, 178 Western Ave., Albany, NY 12203, had his insurance license revoked. This action was taken based on allegations of failing to timely report criminal proceedings to OCI, having criminal convictions that may be substantially related to insurance marketing type conduct, and failing to participate in administrative proceedings.

Janet L. Garces, 2075 NE 202nd St., Miami, FL 33179, had her application for an insurance license denied for 90 days. This action was taken based on allegations of having administrative actions taken by the states of South Dakota, Louisiana, Virginia, North Carolina, and California; failing to accurately disclose administrative actions on this and previous licensing applications; failing to timely report administrative actions while previously licensed; and violating the terms of a previous warning letter.

Joshua Cavanaugh, 101 2nd St., New Glarus, WI 53574, had his application for an insurance license denied for 60 days.

This action was taken based on allegations of having criminal convictions that may be substantially related to insurance marketing type conduct, failing to accurately disclose a criminal conviction on a licensing application, and making a misleading statement on a licensing application.

Kristina A. Harding, 2225 Brooks Ave., Red Wing, MN 55066, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Nichole M. Day, 203 S Cty. I, Montfort, WI 53569, had her 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 and criminal convictions on a licensing application in violation of the terms of a previous warning letter.

Steven Malone, 15629 Summit Place Cir., Naples, FL 34119, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Long Moua, 5906 N 38th St., Milwaukee, WI 53209, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Yuemei Ding, 845 Indian Rd., Glenview, IL 60025, agreed to pay a forfeiture of $2,500.00. This action was taken based on

Jennifer E. Pec, 354 5th St., Prairie du Sac, WI 53578, had her application for an insurance license denied. This action was

Gerri L. Kaufmann, 475 Pebble Creek Pass, Wales, WI 53183, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

MARCH/APRIL 2022 [ 14 ]

taken based on allegations of having a criminal conviction that may be substantially related to insurance marketing type conduct; failing to apply for and obtain a federal crime waiver; and having an administrative action taken by the Wisconsin Department of Regulation and Licensing.

Brenda Rajek, 6061 Inwood Dr., Eau Claire, WI 54701, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Erin E. Workman, 222 Ridge Creek Dr., Janesville, WI 53548, had her application for an insurance license denied.

This action was taken based on having criminal convictions that may be substantially related to insurance marketing type conduct, failing to disclose deferred criminal felonies on a licensing application, and failing to respond to inquiries from OCI.

JANUARY 2022

Anthony Redmond, III, 2110 Allen Blvd., Apt. 23, Middleton, WI 53562, had his insurance license revoked.

This action was taken based on allegations of owing delinquent Wisconsin taxes.

Allegations & Actions Against Agents

Matthew N. Rhodes, 4004 Bluestem Cir., Zion, IL 60099, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Robert Sanders, 11862 Brighton Knoll Loop, Riverview, FL 33579, had his application for an insurance license denied.

This action was taken based on allegations of failing to disclose a criminal conviction and administrative actions taken by the states of Florida and Indiana on a licensing application, having a criminal conviction that may be substantially related to insurance marketing type conduct, and failing to respond to inquiries from OCI.

Mohammad Assad, 2020 W Layton Ave., Milwaukee, WI 53221, 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.

Stephen W. Brooks, 22335 La Garonne, Apt. 422, Southfield, MI 48075, had his application for an insurance license denied for 60 days. This action was taken based on allegations of failing to disclose administrative actions taken by the states of Arizona, California, and South Carolina on a licensing application and failing to timely respond to inquiries from OCI. Andre Brown, 4764 N 35th St., Milwaukee, WI 53209, had his application for an insurance license denied for 31 days.

This action was taken based on allegations of failing to disclose criminal convictions on a licensing application.

Tyler W. Specht, 2315 N 7th St., Sheboygan, WI 53083, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Kaylee Tlusty, 211 E Central St., Loyal, WI 54446, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Zachary D. Brzezinski, 1515 Wickersham Ln., Apt. 326, Austin, TX 78741, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Marycarmen M. Esquivel Trejo, 1320 9th St., Harvard, IL 60033, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Mario A. Callejas, 4300 N University Dr., Ste B204, Sunrise, FL 33351, was ordered to pay a forfeiture of $500.00 and was ordered to fully respond to OCI complaint files. These CONTINUED ON PAGE 17

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ANYTHING CAN HAPPEN WE HAVE YOU COVERED Matt Disher - Wisconsin Marketing Representative 608-515-4551 - mmdisher@madisonmutual.com

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WEDNESDAY • 10 AM – 5 PM

MAY 18, 2022

MILFORD HILLS HUNT CLUB

JOHNSON CREEK, WISCONSIN

MULTI-STATION SPORTING CLAY EVENT

SHOOT SOME CLAYS

FOR THE PIA!

SPONSORSHIP

Sponsorships go towards the costs of putting on the event and can be paid with corporate funds.

EVENT SPONSOR $500 • Signage for all Clay Shoot activites • Recognition during the program • Logo on course signage STATION SPONSOR $250

• A dedicated sign at a shooting station

Fun for shooters of all abilities!

Sporting clays is sometimes described as “golf with a shotgun.”

Players move from station to station on an outdoor course, shooting at clay targets that are launched at different angles and trajectories to mimic

COST

$125 Registration includes safety training, two rounds of sporting clays (multistation shooting), warm-up shooting at the five-stand, lunch, and social hour hors d’oeuvres.

Under Wisconsin law, donations to the Professional Insurance Agents PAC must come from individuals only, not from corporations or any other type of company owned by more than one person. Please use a personal credit card or send a personal check to register for this event. Donations from most businesses are not allowed by law.

the flight paths of game species.

REGISTER TODAY!

MARCH/APRIL 2022 [ 16 ]

PIAW.ORG INFO@PIAW.ORG 1-800-261-7429

CONTINUED FROM PAGE 15 - OCI ADMINISTRATIVE ACTIONS

actions were taken based on allegations of failing to timely respond to inquiries from OCI and failing to timely notify OCI of address changes.

Kevin S. Campisi, 1127 Engesser Ln., St. Peter, MN 56082, 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 Minnesota.

conviction that may be substantially related to insurance marketing type conduct.

Brandon A. Lewandowski, 13412 Thraves Ave., Garfield Heights, OH 44125, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Gerald R. Chat, 911 W Main St., Stoughton, WI 53589, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Christopher J. Monroe, 4023 W Misty Dr., Taylorsville, UT 84129, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Laura C. De Buhr, 704 Park Ave., Little Chute, WI 54140, had her insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

Loretta A. Morris, 908 E 100th Pl., Chicago, IL 60628, had her insurance license revoked. This action was taken based on allegations of failing to pay an ordered forfeiture.

Tami Delong, 11850 Dr. Martin Luther King, Jr. St. N, Apt. 8108, St. Petersburg, FL 33716, had her insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Bryce Moss, 35 S 800 West, Lindon, UT 84042, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Suzanne M. Dickinson, PO Box 852, Chetek, WI 54728, had her application for an insurance license denied for 60 days. This action was taken based on allegations of failing to disclose criminal convictions and providing misleading information on a licensing application.

Jason P. Dummer, 5678 W 109th Cir., Westminster, CO 80020, had his insurance license revoked. This action was taken based on allegations of owing delinquent Wisconsin taxes.

David E. Fischer, 401 Pinnacle Way, Unit 407, Eau Claire, WI 54701, agreed to pay a forfeiture of $500.00. This action was taken based on allegations of making an unsuitable annuity sale.

Ezekiel N. Flores, 4726 Tweedy Blvd., South Gate, CA 90280, had his application for an insurance license denied. This action was taken based on allegations of failing to disclose criminal convictions and an administrative action taken by the State of California on a licensing application, and failing to timely respond to inquiries from OCI. James Grundy, 5971 Sawmill Rd., Doylestown, PA 18902, had his application for an insurance license denied for 90 days. This action was taken based on allegations of failing to disclose administrative actions taken by numerous other states on a licensing application.

Paula L. Norton, 7309 N Huntley Ave., Tampa, FL 33604, had her insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

David C. Osborn, 1133 E Wright Way, Sandy, UT 84094, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

David M. Phillips, 5008 E Thomas Rd., Apt. 219, Phoenix, AZ 85018, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Michael S. Pobiecke, 11710 26th Ave., Pleasant Prairie, WI 53158, agreed to the issuance of a two-year conditional insurance license having certain employment and reporting conditions. 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; failing to timely apply for and obtain a federal crime waiver; and failing to timely respond to OCI. Robert L. Stewart, 27 Grant St., New Salem, PA 15468, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Amanda Hoffman, 13725 N Moonglow Ln., Pocatello, ID 83202, had her insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture.

Taylor R. Tiner, 428 Hilton Dr., Madison, WI 53711, had his insurance license revoked. This action was taken based on allegations of providing false information on a licensing application and having a criminal conviction that may be substantially related to insurance type marketing.

Brandy Kabat, 2179 Luxury Dr., Suamico, WI 54313, had her application for an insurance license denied for 31 days. This action was taken based on allegations of having a criminal

Mack T. Wurtz, 517 Pottawatomie St., Leavenworth, KS 66048, had his insurance license revoked. This action was taken based on allegations of failing to timely pay an ordered forfeiture. H

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.

PIAW.ORG [ 17 ]

F E AT U R E

WHY DO YOU NEED A CONTINGENCY BUY/SELL AGREEMENT AND A SUCCESSION PLAN?

By Al Diamond, President, Agency Consulting Group, Inc.

We received calls from two agents almost back to back illustrating the need for contingency buy/sell agreements.

The first agent called said that his partner had died suddenly of a heart attack immediately after some minor surgery.

They both agreed that a Contingency Buy/Sell Agreement was a great idea just two months earlier, but the partner passed away before they were scheduled to meet with the attorney to draw up the Buy/Sell Agreement.

This was an unfortunate failure in perpetuation planning for a few reasons. The partner’s wife, with whom the remaining partner had a good relationship, was not the party with whom he was negotiating for the disposition of the agency.

And the attorney for the estate was definitely NOT the remaining partner’s friend. His fee came from a percentage of the estate. For that reason, the attorney was certain that the agency was undervalued and was demanding a much higher valuation.

Soon after the first call, we received another call from an agent who lost his partner. The partners had an outmoded Agreement that would not bear the scrutiny of any court or heir. The two decided to revise their agreement, but his partner also suddenly died of a heart attack before the agreement could be updated.

This was several months earlier, and the remaining partner was confronted with the worst case scenario. He tried, to live up to his original Agreement for the Buy/Sell that the two signed some thirty years ago. Since the agencies were relatively small and both had young families when the agreement was originally drawn, the terms were for a multiple of revenues as the basis of value. Further, to make it easy on the remaining partner, the terms called for a long term payout over the course of fifteen years. The attorney for the deceased partner’s wife insisted on a cash payout with no discounting from the value established by their agreement. And to complicate matters, additional claims

MARCH/APRIL 2022 [ 18 ]

were made by attorneys for the deceased partner’s wife and adult children from a previous marriage. They also wanted their fair share of the agency value as assured to them by their deceased father.

The litigation defense in both of these cases will be nightmares, expensive and could have been completely avoidable by taking the following steps: 1. E xecute a simple, direct Contingency Buy/Sell Agreement that is sensitive to the Fair Market Value of the agency at the point in time that the Agreement is triggered.

2. M ake sure that the signatures on the Agreement include both the agency owners and their spouses.

3. F und the Buy/Sell with life insurance in the case of death and a timed buy-out in case of disability.

A Contingency Buy/Sell Agreement need not be complex or expensive. It does need the credibility of an attorney in your state to make sure it is legally correct and binding.

It basically states that the partners will guarantee the buyout of a deceased partner payable with the proceeds of a life insurance policy owned by the beneficiary to an amount equivalent to the deceased owner’s share of the Fair Market Value of the insurance agency. It also provides for a timed buyout of the agency in case of total and permanent disability.

Gaining the signatures of the spouses of the agency owners cements their agreement to the terms and makes it difficult to alter or argue about the document after the incident.

Spelling out a term buyout for a disabled owner allows for continued support of that owner through the recuperative period, guarantees a continued income stream to support his family during his period of diminished capabilities and spells out the use of the disabled owner’s prior productive salary as the normal limit of the payout with the timing being as long as that payout does not achieve the total value of his portion of the agency’s ownership.

Using a “Fair Market Value” statement with a requirement that the value be completed by a valuer of insurance agencies assures the seller’s estate that a competent valuation will be completed and that neither the buyer or seller will be disadvantaged in the process.

One of the agency owners in the example above estimates that he will be spending a six-figure amount to defend and maintain the ownership of his agency. All for the lack of a professionally prepared and valued Contingency Buy/Sell Agreement that both owners assumed could wait until a ‘better time.’

Please be aware that anyone, young or old, single or married, male or female, could have a heart attack at any moment. Complete your Contingency Buy/Sell NOW, or call us at (800) 779-2430 if you need help.

PIAW.ORG [ 19 ]

COMMUNITY CORNER PIA Members are giving back to their communities year-round. We want to highlight what individual members and agency and company members are doing to help make Wisconsin a great place to live and run a business. Share your volunteer story with us – shoot an email and photos of the action to nwhite@piaw.org!

VIZANCE AND BADGER MUTUAL HOST MAKE-A-WISH “SKATING WITH SANTA”

Together, Vizance and Badger Mutual Insurance were the presenting sponsors of Make-A-Wish Wisconsin’s Skating with Santa fundraising event on December 12 in Hartland. Attendees were able to participate in the ultimate holiday experience, featuring a hot cocoa bar, a meet and greet with Frozen’s Elsa and Anna, photos with Santa, and an hour on the ice with the big man himself! The event was a huge success, bringing holiday magic to many families in the community while raising over $20,000 to help make wishes come true for local children living with critical illnesses.

TRICOR’S MADISON OFFICE SENDS DONATION TO LITTLE JOHN’S

TRICOR donates more than $400,000 to the local nonprofits surrounding their locations throughout the state. The Madison TRICOR office was proud to donate to Little John’s, a Madison non-profit focused on sustainability and eliminating food insecurity. This non-profit is a pay-as-you-can restaurant that partners with local grocery stores, taking ingredients that would otherwise be thrown away and converts them into chef-quality meals for those who are in need. In addition, Little John’s provides skills training and job search help to veterans for future careers in the food service industry.

MARCH/APRIL 2022 [ 20 ]

ROBERTSON RYAN’S MEQUON TEAM SENDS VALENTINE’S

Members of the Robertson Ryan Mequon office recently got together and prepared Valentine Gnomes and cards for residents of local assisted living facilities. The group was able to finish a whopping 219 Valentines, which they then sent to ten different assisted living facilities. The team spread the love and made sure the residents felt cherished on Valentine’s Day.

ACUITY EMPLOYEES DISTRIBUTE $500,000 TO CHARITABLE ORGANIZATIONS

At a December 2021 Town Hall meeting, Acuity employees determined the distribution of $350,000 to six different charitable organizations, which included Conquer Cancer, ® the ASCO Foundation; Fresh Meals on Wheels; Mental Health America; Safe Harbor; The Salvation Army; and Sharon S. Richardson Community Hospice. In addition, each of Acuity’s 1,500 employees was invited to choose any qualifying charity to receive a $100 donation from Acuity, for an additional $150,000. This is the nineth year Acuity employees have directed a special year-end charitable contribution, adding to the company’s longstanding tradition of philanthropy.

Kelly Anderson from Fresh Meals on Wheels accepts a check for nearly $43,000 from Acuity’s Wally Waldhart and Ben Salzmann PIAW.ORG [ 21 ]

ELEVATED INSURANCE’S BOOK DRIVE

Elevated Insurance in Southeastern Wisconsin organized a large-scale book drive over the winter, collecting hundreds of gently used books for Next Door Milwaukee. Next Door Milwaukee is an organization dedicated to helping children get a strong start to life through early childhood education. Elevated Insurance’s volunteer project was able to collect over 500 books to share.

WINTER GET-AWAY 2022 The 12th Annual Winter Get-Away is in the books and boasted a record-breaking number of attendees!

Day one of the three-day event kicked off with some top-notch education from celebrated instructor Todd Davis. Then, attendees headed over to Island City Lanes for a night of food, drinks, networking and *hopefully* a few strikes.

Day two had more education, followed by a buffet lunch and the famous “Bus Adventure,” where our group adventured to different establishments of the north woods. A surf & turf dinner and dancing followed at the Whitetail Inn with live music.

The final day began and ended with Ethics CE, rounding out a whole 10 credits of CE over the course of the event.

Attendees are calling it “the best one yet!” – Spread the word and don’t miss Winter Get-Away 2023! You can mark your calendars already for February 1–3, 2023.

12TH ANNUAL WINTER GET-AWAY ANOTHER SUCCESSFUL, FUN, EDUCATIONAL EVENT

THANK YOU SPONSORS!

AAA The Auto Club Group Encova Insurance Progressive Insurance Badger Mutual Insurance Germantown Mutual Pekin Insurance West Bend Mutual EMC Insurance Madison Mutual

MARCH/APRIL 2022 [ 24 ]

F E AT U R E

The Sales Team Secret?

Creativity and it’s not exclusive to musicians and artists. Salespeople can be creative geniuses, and creativity works for the sales team just as well as the marketing team. It’s often considered to be an innate trait, but it can be developed just like any other skill.

The goal is to find and foster creativity within yourself — and your team.

Here are some tips to foster creativity and harness its power: •F ind new ways of encouraging team members to communicate their thoughts – try relaying stories and examples from outside of the insurance industry.

•D on’t just bring your skills to the table, bring a sense of wonder and big ideas.

•T ry new tactics within your daily routines, for example, try brushing your teeth with the opposite hand. Subtle adjustments can lead to inspiring ideas.

•C onsider how you could reinvent and rejuvenate your individual sales process without making bigger changes.

Then, when you see what ideas work, bring them to the team with evidence.

•T une in to your clients’ sales processes, and the operation of other departments you work with. Try adopting some of the concepts you observe.

Here’s a one-question quiz: What makes a successful salesperson?

A. Competitiveness and confidence B. Resilience and adaptability C. Communicating and networking D. Tenacity and charm E. All of the above Wait a minute. What about creativity?

It might not make the list, and it might not be in the job description, but creativity might just be the differentiating trait between an average salesperson and an exceptional salesperson.

A creative salesperson would not necessarily be the shining star whose grit and grind goes above and beyond. That salesperson might not be the one with an impressive number of outbound calls or a constant flow of new customers. But that person could well be the best kept secret on your sales team.

Creative salespeople don’t think outside of the box. They craft a new box. They are not your “the sky is the limit” minds. They are your “there are no limits” minds.

Maybe this description sounds like a colleague, or maybe it resonates with you. If you don’t see that person on your sales team, look again: There are many types of creative genius,

Creativity can directly impact your success as a salesperson.

With a focus on personalizing each part of your conversation to each customer, you’ll become a problem solver who impresses a customer with intentional listening and a genuine response.

Your creative thought process will not only impact your own success, but it can also energize your entire sales team. It’s because the capacity for innovation on your team starts with the acknowledgement of creativity within each salesperson.

It grows with encouragement of new ideas and flows with a team that has an attitude that accepts change and growth.

The secrets of innovation and creativity are buried under the bigger picture of sales, so while it may take some time to find them, know they exist and serve as tools for success for both individuals and teams.

How is your sales team harnessing the power of creativity?

PIAW.ORG [ 25 ]

HR Snapshot

WE’VE BEEN BOTH SUPER BUSY AND UNDERSTAFFED RECENTLY. IS THERE ANYTHING WE CAN DO DURING THIS TIME TO HELP OUR EMPLOYEES AVOID EXTRA STRESS OR BURNOUT BEFORE WE CAN HIRE MORE EMPLOYEES? Yes. Here are a few things you can do to make this time run as smoothly and stress-free as possible: Remove nonessential work duties: For the positions that seem most stretched, make a list of tasks that could be put on hold (or perhaps reassigned). You can invite input from employees, too, but I’d recommend acknowledging that they’re overwhelmed and saying that you’ll do your best to alleviate some of the pressure.

Then hold off on nonessential tasks until business slows down or you’ve increased your headcount.

Allow for flexible scheduling: If employees need to work longer hours on some days during the week, consider allowing them to work fewer hours on other days of the week. Note that some states have daily overtime, spreadof-hours, or split-shift laws.

Budget for overtime: Employees may need to work extra hours to keep up with the current demands of their job, so allow them to work overtime if you (and they) can swing it. If you’re pretty sure overtime will be necessary, inform employees of that ahead of time, so they can plan accordingly.

Ensure all equipment is fast and reliable: It’s important to identify, troubleshoot, and correct any slow or nonworking equipment issues (such as laptops, internet hardware, cash registers, or vehicles). If not resolved, these issues can slow down work and add to everyone’s stress.

Look for ways to automate: Consider whether any of your employees’ manual and time-consuming tasks could be eliminated or simplified with the use of new or different technology.

Increase safety protocols: Employee absences related to COVID have created a significant strain for many employers during the pandemic. Shoring up your safety protocols may reduce the risk of COVID-related absences because of sickness or exposure.

Answer from Depending on your circumstances, examples include improving ventilation, Megan, JD, SPHR encouraging or requiring vaccination, requiring employees to wear masks, and allowing employees to work remotely when possible.

DO MANAGERS NEED TO BE CLASSIFIED AS EXEMPT UNDER THE FAIR LABOR STANDARDS ACT? No, it’s fine to classify managers as nonexempt. You are under no obligation to classify any employees as exempt, even if they meet the criteria under the Fair Labor Standards Act. You could have an entire workforce of nonexempt employees, right up to the CEO. The important thing is to follow all wage and hour laws applicable to nonexempt employees, including paying them for overtime.

Having said that, there are advantages to classifying employees as exempt if they meet all the criteria. It’s administratively easier for you as the employer—no need to track hours for calculating overtime—and many employees prefer to be paid a salary that doesn’t change from week to week.

Answer from You can learn more about the criteria for classifying employees as exempt, such as the duties tests and salary thresholds, on the platform.

MARCH/APRIL 2022 [ 26 ]

Kyle, PHR

NOW THAT WE’VE BECOME A “REMOTE FIRST” COMPANY WITH MOST OF OUR EMPLOYEES WORKING FROM HOME, WE’VE STARTED HIRING REMOTE EMPLOYEES IN OTHER PARTS OF THE COUNTRY. WE’RE COVERED BY FMLA BECAUSE WE HAVE MORE THAN 50 EMPLOYEES—EVEN AT OUR HEADQUARTERS ALONE. WILL OUR REMOTE EMPLOYEES BE ELIGIBLE FOR FMLA LEAVE ONCE THEY’VE WORKED THE REQUIRED AMOUNT OF TIME?D? Yes, these new remote employees will likely be entitled to take leave under the federal Family and Medical Leave Act (FMLA), but not just yet. To be eligible for leave under the FMLA, an employee must have worked for your company for at least 12 months, have worked at least 1,250 hours during the 12-month period immediately before their leave, and work at a worksite with 50 or more employees within a 75-mile radius.

Unlike other situations, for purposes of FMLA, an employee’s home is not a worksite. Rather, their worksite is the office they report to or receive assignments from. So, if your remote employees report to or get their assignments from your headquarters, then they are considered to work at a worksite that has 50 or more employees. If you have multiple physical offices, you’ll need to evaluate which location would be considered each employee’s worksite, and then how many employees fall under that worksite.

Answer from Bottom line: an employee whose worksite has 50 or more employees will be eligible for FMLA leave once they’ve worked 1,250 hours and hit their one-year anniversary.

Marisa, SPHR

WHAT ARE THE BASIC STEPS OF A HARASSMENT INVESTIGATION? When an employer receives a harassment claim, they have a legal obligation to examine the claim by conducting a thorough investigation. This includes the following steps: 1. Select an interviewer. Typically, this person would be an impartial manager, company officer, or HR representative. They should approach the investigation process without a presumption of guilt or innocence and with the commitment to treat the situation as fairly as possible. Typically, the investigation can and should be conducted and closed within three days.

2. Speak with the employee who made the complaint (if you know who they are), the accused employee, and any witnesses they name. The questions asked during the interview should not lead an interviewee toward a particular response and should not be accusatory in nature. They should be unbiased, open-ended, and prepared in advance. It’s also important not to promise a particular outcome to employees participating in the investigation.

3. Once the investigation interviews are complete, document your conclusions and actions taken. If the company determines that the accused employee did in fact violate its harassment or other workplace policy, appropriate disciplinary measures may be administered. What qualifies as appropriate would depend on the severity of behavior; it may include termination of employment. A summary of the findings should be placed in the accused employee’s file.

4. Inform both the accused employee and the accuser about the conclusions of the investigation and any disciplinary measures taken. The complaining employee doesn’t need to know the specific disciplinary action, just that appropriate corrective action has been taken. Remind both employees that you will not tolerate retaliation.

In some situations, it is advisable to separate employees to limit the potential for future incidents, but care should be taken so this step doesn’t have a negative impact on the employee who raised the complaint.

In addition to the above steps, it’s not a bad idea to consult with legal counsel when you receive allegations of harassment or discrimination.

PIAW.ORG [ 27 ]

Answer from Rachel, SHRM-SCP

promise

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Small detail. Big difference.

You know as well as anyone that today’s cut corner can easily turn into tomorrow’s missing piece. With our forty years of experience in specialized coverage and policies developed alongside actual restaurant and bar owners, you can rest assured that your policyholders are protected against the unique risks they face every day.

If you agree that details like these make a big difference, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com.

MARCH/APRIL 2022 [ 28 ]

6 Common Causes of Agents’ E&O Claims

by Tabitha L. DeGirolano, RPLU E&O Risk Management Specialist Executive Commercial Lines Underwriter Utica National Insurance Group Why do insurance agents receive errors and omissions (E&O) claims? Often it is for failing to execute basic transactions that take place many times each day in your agency. The following are some of the most common reasons that agents experience E&O claims:

1

FAILURE TO PLACE/RENEW COVERAGE For a variety of reasons, an account can “fall through the cracks,” leading to coverage not being bound. Often, this is only discovered once a client submits a claim and realizes there is not coverage in place. Alternatively, coverage may be bound, but not at the terms expected.

2 3

CERTIFICATES OF INSURANCE Many claims begin with a mistake made on a certificate of insurance. This can be the result of listing incorrect limits, including additional insureds that are not covered under the policy, or confirming coverage when the policy has been cancelled.

FAILURE TO OBTAIN/MAINTAIN PROPER COVERAGE For P&C agents, this is the most common source of E&O claims. When a client doesn’t receive the coverage they requested or expected, they look to the agent for relief. A lack of a thorough risk analysis is often the root cause of these problems. For renewals, failure to recognize and communicate coverage changes can result in a coverage gap for your client.

FAILURE TO GIVE ACCURATE INFORMATION/ADVICE

4

When an agent is not effectively communicating the product they are selling, a client may believe that they were not provided with adequate information to make an informed decision on coverage. This can be of particular concern when an agent works with a wholesaler on a product they lack expertise in. Limit recommendations can be a pitfall for agents when a client finds out they do not have sufficient coverage for a claim.

5

FAILURE TO NOTIFY OF CANCELLATION/REPLACE COVERAGE When agents set the precedent of notifying clients of pending cancellations, failure to do so can result in a claim when a client has a loss after the cancellation. Failing to offer to assist the client in replacing the cancelled coverage can be another area of exposure.

REPORTING OF CLIENT CLAIMS

6

Claims that are reported to the agent, but not forwarded to the carrier in a timely manner can result in a denial of coverage.

Additionally, an agent may not report the claim under all policies that could respond. This is often an issue when excess or umbrella coverage is in place. An agent may advise a client that “they will be covered” or “there is not coverage” rather than instructing the client to submit the claim to the carrier for coverage determination.

Many claims can be successfully defended with good, uniform procedures and thorough documentation. Instituting appropriate loss control measures can help agents avoid claims while better servicing their clients.

In upcoming articles, we will explore each of these common causes of E&O claims in more depth and provide guidance on loss control measures. For now, check your office procedures to make sure your agency is not making any of the mistakes noted above.

5-R-1416 Ed. 11-21

EDUCATION

NEW TOPICS ADDED! 3 WI CE CREDITS. LIVE (NOT PRE-RECORDED). NO TEST. NO PROCTOR. 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.

March 2022 Webinar Schedule TITLE & WI CE

DATE

TIME (CST)

INSTRUCTOR

An Hour with Cathy: Insurance Issues for the Commercial Tenant 1 WI CE # 6000081950

3/2

1-2p

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

Personal Lines Clients and Their New Normal 3 WI CE # 6000080286

3/3

12-3p

Nicole Broch, CIC, CISR, PLCS

An hour with Corey: Liars: How to Spot Fraud & What the Agent Can Do About it 1 WI CE # pending

3/9

1-2p

Corey Wilkins

Employment Practices Liability: A Coverage No Business Can Afford to Be Without 3 WI CE # pending

3/22

8-11a

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

Nailed It: Understanding Insurance Requirements in Construction Contracts 3 WI CE # 6000082634 | Utica Approved

3/22

12-3p

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

Personal Lines Coverage Concerns: Annoying But Important 3 WI CE # 6000080480

3/24

8-11a

Scott Treen, CIC

Why Good People Do Bad Things: A Deep Dive into Agency Ethics 3 WI ETHICS, CE # pending

3/24

12-3p

Terry Tadlock, CIC, CPCU, CRIS

Why Insurance to Value and Liability Limits are Always Wrong (and How to Fix That) 3 WI CE # pending

3/29

8-11a

Steve Lyon, CIC, CPCU, ARM

Chris Amrhein’s “Adventures in Aging”: Medicare and Other Retirement Healthcare Solutions 3 WI CE # 6000108253

3/29

12-3p

Chris Amrhein, CIC

An Hour with Nicole: Personal Umbrella Issues & Answers 1 WI CE # 6000082636

3/30

1-2p

Nicole Broch, CIC, CISR, PLCS

Autos, Garages and Dealers – Oh My! Knowing the Difference 3 WI CE # 6000102013

3/31

8-11a

Carissa Bonner, ANIS, CRIS

Commercial Property – Direct vs Indirect Damage 3 WI CE # 6000080287

3/31

12-3p

Robin Federici, CIC, AAI, ARM,

Register online at piaw.org or call 1-800-261-7429. Contact Brenda for in-house webinar opportunities. bsteinbach@piaw.org MARCH/APRIL 2022 [ 30 ]

NEW TOPICS ADDED! 3 WI CE CREDITS. LIVE (NOT PRE-RECORDED). NO TEST. NO PROCTOR. 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.

April 2022 Webinar Schedule TITLE & WI CE

DATE

TIME (CST)

INSTRUCTOR

Flood Insurance and the NFIP 3 WI CE # 6000059679

4/5

8-11a

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

Personal & Commercial Lines Endorsements: Some Good, Some That Really Stink 3 WI CE # 6000114369

4/5

12-3p

Steve Lyon, CIC, CPCU, ARM

Homeowners in Real Life: Tales of Claims & Coverage 3 WI CE # 6000080508

4/7

8-11a

Nicole Broch, CIC, CISR, PLCS

Cyber – Evolution, Exposures, Incidents & Insurance 3 WI CE # 6000082637

4/12

8-11a

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

Chris Amrhein’s “Adventures in Aging”: Social Security and Other Retirement Income Solutions 3 WI CE # 6000110967

4/12

12-3p

Chris Amrhein, CIC

An hour with Corey: Valuation Issues with Custom Cars & Tricked out Trucks 1 WI CE # 6000081982

4/13

1-2p

Corey Wilkins

That’s Personal: Home & Auto Exposures Your Insured Doesn’t Share (and Why That’s Bad) 3 WI CE # 6000080266 | Utica Approved

4/19

8-11a

Scott Treen, CIC

Ethics: Essentials for the Insurance Producer 3 WI ETHICS CE # 6000080505

4/19

12-3p

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

An Hour with Cathy: Three Commercial Property Insurance Problems and How to Fix Them 1 WI CE # 6000087962

4/20

1-2p

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

“How/Where the %^* Will I Live?”

Insurance Solutions for the Long-Term 3 WI CE # 6000080419

4/21

12-3p

Corey Wilkins

Register online at piaw.org or call 1-800-261-7429. Contact Brenda for in-house webinar opportunities. bsteinbach@piaw.org PIAW.ORG [ 31 ]

EDUCATION Upcoming Opportunities CIC WEBINARS & CLASSROOM

Anyone Can Attend No Exam or Proctor Required for CE 16 WI CE Each – Optional, Virtual Exam the Following Week

MARCH 9-10

APRIL 5-6

Personal Lines Webinar

MAY 11-12

Company Operations West Bend Mutual – West Bend

Commercial Property Sun Prairie

CIC GRADUATE RUBLE WEBINARS & CLASSROOM Exciting update option for CICs, CRMs, and CISRs! 16 WI CE

JUNE 15-16

DECEMBER 14-15

Includes 4 Ethics CE Acuity – Sheboygan

Webinar

CISR WEBINARS

Anyone Can Attend 7 WI CE Each – Optional, Virtual Exam the Following Week

MARCH 3

Elements of Risk Management

MARCH 24

APRIL 13

Life & Health Essentials

Commercial Casualty 1

APRIL 21

Personal Lines Miscellaneous

CPIA WEBINARS Anyone Can Attend 7 WI CE Each – No Exam

MARCH 10

CPIA 1 – Position for Success

APRIL 13

CPIA 2 – Implement for Success

MARCH/APRIL 2022 [ 32 ]

MAY 12

CPIA 3 – Sustain Success

Workers’ Compensation We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.

Upfront loss control measures Responsive claims handling Facilitation of quality medical care (when an accident does occur) We’ve been successfully protecting our policyholders and their employees since 1983.

Browse all of our products at www.guard.com.

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ Our Workers’ Compensation policy is available nationwide except in monopolistic states: ND, OH, WA, and WY.

AGENCYJOURNEYMAPPING

Control YourControl Your Agency’s Future Control Your Agency’s Future Agency’s Future

You make decisions every day that set the stage for your options long-term.

Agency Journey Mapping helps you see the AGENCYJOURNEYMAPPING AGENCYJOURNEYMAPPING

impact of your actions today on your: • agency’s value • ability to respond to new opportunities preparation the unexpected You make decisions• every day thatfor set the stage You make decisions every day that set the stage for your options long-term. for your long-term.

You makeoptions decisions every day that set the stage The program addresses succession and for your options long-term. perpetuation planning.

Butthe it’s not only for Agency Journey Mapping helps you see Agency Journey Mapping helps you see the agentstoday headed the exit. It’s so much more. impact of your actions onfor your: impact of your actions today on your: Agency Journey Mapping helps you see It is designed to give agency owners – at every • the agency’s value • agency’s value impact of your actions today on your: stage –to control of their future by investing in • ability to respond new opportunities • ability to respond to new opportunities • agency’s value little planning today.

Agency Journey M • preparationa for the unexpected Agency Journey Mapping is brought to you by • preparation for the unexpected The PIA Partnership • ability to respond to new opportunities The PIA Partnership – PIA’s national carrier council.

Partnership Agency Mapping isor brought to you by seminar • preparation for the unexpected The program addresses STEP 1:Journey attend liveand on-demand Partnership companies include: succession The PIA Partnership – PIA’s national carrier council.

The program addresses succession and STEP 2:Partnership access a only library of resources perpetuation planning.

But it’s not forinclude: companies perpetuation planning.

But it’s not only for The program addresses succession and STEP develop a customized plan agents headed for the3:exit.

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ureSave the Date!

a little planning today.

STEP 1: attend live or on-demand seminar STEP 1: attend live or on-demand seminar Members: STEP 2: accessPIA a library of resources STEP 2: access a library of resources STEP 1: attend live or on-demand seminar PIA has funds reserved to reimburse your purchase of STEP 3:PIA develop a customized plan June 29th 9 a.m –noon | Free for members!

STEP 3: develop a customized plan the Agency Journey Mapping program.

STEP 2: access a library of resources

PERPETUATION PLANNING WEBINAR

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DETAILS

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PIA Members: PIA Members: PIA has funds reserved to reimburse your purchase of PIA has funds reserved to reimburse your purchase of PIA Members: the Agency Journey Mapping program. the Agency Journey Mapping program.

PIA has funds reserved to reimburse your purchase of at pianet.com/agentsupport. pianational.org/agentsupport Learn more pianational.org/agentsupport Learn more at pianet.com/agentsupport. the Agency Journey Mapping program.

Agency Journey Mapping is brought to youMARCH/APRIL by 2022 [ 34 ] pianational.org/agentsupport Learn more at pianet.com/agentsupport.

The PIA Partnership – PIA’s national carrier council.

PIAW.ORG [ 35 ]

WEBINARS

Life & Health

PIAW is pleased to present webinars that discusses the self-funding of employee benefits.

Self-Funding, the Numbers Behind the Numbers

FREE for PIA Members!

2 WI CE

March 15 • 9–11AM

Life Insurance Strategies to Help Your Everyday Clients 2 WI CE

July 14 • 9–11AM

$70 for Non-Members

INSTRUCTOR

INSTRUCTOR

DAVID GRUNKE

MICHAEL SMITH

CHC, RHU, CHHC

LUTCF, CLTC, LACP CPS

SIGN UP TODAY! WWW.PIAW.ORG/PIA-LIFE-HEALTH-FOCUS/ MARCH/APRIL 2022 [ 36 ]

UPCOMING EVENTS

THE PIA OF WISCONSIN IS KNOWN NATIONWIDE FOR ITS TOP-NOTCH EDUCATION AND NETWORKING EVENTS!

MARCH

PARTNERING WITH THE NATIONAL ALLIANCE, THE AIMS SOCIETY, AND FISCE, PLUS HOT TOPICS AT THE ANNUAL CONVENTION AND WINTER GET-AWAY, PIA OFFERS CLOSE TO 200 OPTIONS EACH YEAR, INCLUDING PRE-LICENSING.

10 CPIA 1 Position for Success Webinar (7 WI CE) ife & Health FOCUS Webinar – FREE for PIAW Members!

15 LSelf-Funding, The Numbers Behind the Numbers (2 WI CE) 24 CISR – Life & Health Essentials Webinar (7 WI CE) IC – Classroom – Company Operations 5-6 CWest Bend Mutual - West Bend (16 WI CE)

April

ISR – Commercial Casualty 2 – Webinar (7 WI CE) 13 CCPIA 2 Implement for Success Webinar (7 WI CE) 21 CISR –Personal Lines Miscellaneous Webinar (7 WI CE) 28 Insurance 101 – P&C Orientation for New Hires Webinar

MAY

4 CISR – Commercial Casualty 1 – Webinar (7 WI CE) IC – Classroom – Commercial Property 11-12 CHilton Garden Inn - Sun Prairie (16 WI CE) 18 3rd Annual PIA Clay Shoot, Milford Hills Hunt Club, Johnson Creek, WI

PIAW.ORG [ 37 ]

DIRECTORY

PROFESSIONAL INSURANCE AGENTS OF WISCONSIN, INC. 6401 ODANA ROAD | MADISON, WI 53719 | WWW.PIAW.ORG PHONE: 608-274-8188 | TOLL FREE: 800-261-7429 | FAX: 608-274-8195

officers

Directors

Ryan Butzke, CIC, CISR President Northbrook Insurance Associates, Inc. PO Box 520 Slinger, WI 53086 (262) 297-7101 ryanb@northbrook-ins.com

Mike Endres Endres Insurance Agency, Inc. 2201 Eulalia Street Cross Plains, WI 53528 (608) 798-3811 mendres@endresinsurance.net

Mitch Tarras Nett Insurance Agency LLC 607C Eastern Ave. Plymouth, WI 53073 (920) 893-3252 mitch@bwoinsurance.com

Jeff Glass, CPIA Past President Liaison AF Glass Insurance Agency, Inc. PO Box 1149 Lake Geneva, WI 53147 (262) 248-5555 jglass@glassinsurancecenter.com

Julie Ulset, CPIA Immediate Past President Grams Insurance Agency Llc PO Box 336 Edgerton, WI 53534 (608) 884-3304 julset@gramsinsurance.com

Ann Linstroth, CISR, PWCAM Fidelis Insurance Services 840 Lake Avenue, Ste. 101 Racine, WI 53403 (262) 456-0463 annl@trustfidelis.com

Michael Winstanley Winstanley Insurance Agency Inc. 3044 S. 92nd St. West Allis, WI 53227 (414) 425-6914 mdw@mdwinstanley.com

Tracy A. Oestreich, CIC, CPIA, AU, CPIW PIA National Director T4 Insurance Solutions, Inc. PO Box 408 Jackson, WI 53037 (262) 423-4949 Fax: (262) 423-4959 tracyo@t4ins.com

Bob Wolfgram Wolfgram Insurance Agency PO Box 122 North Prairie, WI 53153 (262) 349-9605 bob@wolfgraminsurance.com

Steve Clements, CPIA Vice President Clements Insurance Agency 151577 King Fisher Ln. Wausau, WI 54401 (715) 842-1664 steve@clementsagency.com Lacey Endres, CIC Treasurer M3 Insurance, Inc. 828 John Nolan Dr. Madison, WI 53713 (608) 288-2874 lacey.endres@m3ins.com Jon M. Strom Secretary Image of Wisconsin PO Box 600 St. Germain, WI 54558 (920) 723-1209 jon@imageofwi.com

Staff

Tracy Sabol Midwest Insurance Group, LLC 2574 Sun Valley Drive Ste 205 Delafield, WI 53018 (262) 646-5777 tracy.sabol@midwestinsurancegroup.com

Pete Hanson, CAE, CISR Executive Director phanson@piaw.org

Shirley Faherty Office Manager/Bookeeper sfaherty@piaw.org

Brenda Steinbach Education & Convention Director bsteinbach@piaw.org

Becca Bredeson Administrative Assistant bbredeson@piaw.org

Heidi Hodel-Faris, CPIA, CIC Insurance and Member Services Director hhodel@piaw.org

Natalie White Communications Director nwhite@piaw.org

MARCH/APRIL 2022 [ 38 ]

BE THE NEXT

Find out why agency owners choose us!

• • • • • • • •

Broad Leadership Team that is 100% focused on the insurance business Flexible deal structures including the ability to retain some ownership Strong focus on culture, associate engagement, and client satisfaction Proven ability to drive double-digit organic growth Recruiting & mentoring program to develop those new to the industry Shareholder program for top performers Ability to maintain leadership with regional and practice group support Committed to serving our communities

PIAW.ORG [ 39 ]

Call us for a confidential conversation Tom Schaetz 419.450.0317

MORE IMAGINATION.

MORE TO LOVE FROM APPLIED.® Workers’ Compensation • Transportation – Liability & Physical Damage • Construction – Primary & Excess Liability Homeowners – Including California Wildfire & Gulf Region Hurricane • Fine Art & Collections • Structured Insurance Financial Lines • Environmental & Pollution Liability • Shared & Layered Property • Fronting & Program Business • Reinsurance

...And More To Come.

It Pays To Get A Quote From Applied.® Learn more at auw.com/MoreToLove or call sales (877) 234-4450 ©2022 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.