Primary Agent - April 2012 - MD Edition

MARYLAND

Fueling INDUSTRY THE

Young agents with drive

INTHISISSUE: ____________ Bridging generational differences A study in internships ABCs of designations

WE’VE GOT YOUR BACK.

www.acuity.com Introducing Eva & Ella, the ACUITY Cuties

facebook.com/acuitywow

14

Contents PRIMARY AGENT MAGAZINE Building a bridge between generations The human capital landscape is changing fast – in a very literal sense. Today’s insurance workplace feels different, looks different and behaves like never before.

And this is only the beginning....

Page 14

22

A study in internships Wouldn’t it be great to “test drive” employees before hiring them? Two member agencies share what drove them to create internship programs – and how they’re benefiting.

Page 22 ABCs of designations

26

New agents: Looking for a competitive edge to advance your career? A designation could be your ticket. Here, IA&B filters through the alphabet soup to highlight what it takes to tack a few letters behind your name.

Page 26 2012 Company Satisfaction Index IA&B’s Company Satisfaction Index (CSI) survey is back – and it’s easier than ever to complete. Now members can have their say on carrier experiences in half the time.

Mission Statement Primary Agent delivers ideas to help Insurance Agents & Brokers’ members negotiate their unique position as guardians of trust between insurance consumers and companies while facing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission to preserve and advocate the American Agency System.

Get social with IA&B

Page 30

In every issue 4 5 6 8 10 12

Chair of the Board’s Message Member FAQ State News Preventing Errors & Omissions Coverage Corner H.R. Headquarters

13 21 29 32 32 32

Glance at Events IA&B Partners Tools You Can Use Advertisers Index Classified Ads Last & Least

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two months prior to publication. Advertising rates furnished upon request.

Address inquiries to: Primary Agent Editor 5050 Ritter Road Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-4) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2012. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

We’re celebrating our 100th year by planning for our next 100 years.

Tanya Wentzel, Des Moines Branch Marketing Manager Troy Boysen, Minneapolis Branch Commercial Underwriter Connie Jarzynka, Omaha Branch Claims Adjuster Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA

www.emcins.com Š Copyright Employers Mutual Casualty Company 2011 All rights reserved

Board of Directors

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Officers Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Chair of the Board West Chester, Pa. Norman F. Basso, CPCU Vice Chair of the Board York, Pa.

Chair of the Board’s M

E

S

S

A

G

David Rosenkilde, CIC Immediate Past Chair of the Board Reisterstown, Md.

Tapping into the fountain of youth

Members Joyce M. Bailey, CIC, CRM, CPIW Newark, Del. Henry “Butch” Bradley, Jr. Forest Hill, Md.

There’s been plenty of talk about the aging agency workforce. But how about the young blood that currently is surging through the independent agency system?

Truth is, there are plenty of young people who have recognized the opportunity in our industry — and they’re doing well for themselves. And there are many agencies that are attracting young talent, and their agencies are better for it.

Timothy P. Burris Mifflintown, Pa. N. Lee Dotson, CIC, AAI Wilmington, Del. John L. Frankenfield Telford, Pa.

So let’s say you want to jump on this young-agentrecruitment bandwagon. Your agents’ association has your back (as those 20-somethings might say). Think:

G. Greg Gunn, CIC Lemoyne, Pa. John B. Hollister Milford, Pa. Diana M. Hornung Hanby, ACSR Wilmington, Del. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa. +

Robert S. Klinger, LUTCF, CPIA Germantown, Md. Douglas A. Loesel, CPCU Erie, Pa. Michael F. McGroarty Sr. Pittsburgh, Pa. Ann Gallen Moll, CIC Reading, Pa. April E. Ressler, CIC Altoona, Pa. Scott C. Rogers, CPIA* York, Pa.

w Pre-licensing training and designation coursework for the young folks to get their careers off the ground

w Employee management tools for the principals and owners to handle those new hires

w E&O prevention resources for everyone to sleep better at night The industry is changing, and the change isn’t all bad.

Along with the challenges of recent times come the optimism, energy and fresh ideas of the next generation of independent agents.

Best,

David B. Wasson Sr., CIC State College, Pa. Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.

Robert B Hall, ChFC, CLU, CPCU, ARM, ARM-P

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

[4]

E

Member FAQ QUESTION: The agency principal just passed away: What do we need to do from a licensing standpoint?

ANSWER: a death certificate. Even if you have applied online through NIPR, the license would not be fully processed until the additional documentation is provided.

Most state licensing laws (including Delaware, Maryland and Pennsylvania), contain a provision that allows an individual, be it a spouse, court-appointed personal representative, or even agency employee, to secure a “temporary license” for circumstances such as these.

Pennsylvania: The applicant should send a regular producer application (with the $55 fee), along with a cover letter explaining that the application is for a temporary license, and attach a death certificate. No fingerprinting will be required.

The regulator may decide to limit the scope of the license, by limiting the lines of authority carried or otherwise, but they are not generally difficult to obtain. The length of license will depend on state law: up to 180 days in Delaware and Pennsylvania, and 15 months in Maryland.

It cannot be renewed.

Note that a temporary license can also be requested: w When the licensee is physically or mentally disabled

How to secure a temporary license Delaware: An individual seeking a temporary license can apply online at www.nipr.com. The application will be treated just like a regular producer license. In addition, a copy of the death certificate should be faxed to the Department of Insurance at 302-736-7906 after the application is completed online.

w When a person enters active service in the armed forces of the United States w For any other extenuating circumstances, subject to the insurance regulator’s approval

DO YOU HAVE A QUESTION?

Maryland: The easiest way to obtain a temporary license is to fill out the regular initial producer license form and mail it to the Maryland Insurance Administration with a fee of $27. There is no special temporary license form. The individual will need to attach a cover letter with the name and license number of the deceased producer along with

E-mail it to us at iab@iabgroup.com. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to 717-795-8347. We look forward to answering your questions!

[5]

State News Primary Agent | April 2012

Members step up for AgentPAC

MAPs take IA&B to town near you

AgentPAC – your state political action committee – has hit the ground running in its efforts to communicate the agent's perspective on issues.

AgentPAC is your voice in Annapolis, helping to keep agent issues at the forefront and agent-friendly legislators in office.

IA&B staff is gearing up for the spring 2012 Member Agent Panel (MAP) tour, which will include stops in Gaithersburg, Bowie and Towson early this month. At each location, member agents will weigh in on industry issues and provide feedback on the association’s activities and direction.

In order to keep momentum, AgentPAC relies on engaged agents like you throughout the state to contribute regularly.

The most committed among them are the AgentPAC President’s Club members who pledge $1,000 or more in a single year. As of March 5, the top donors included: Richard S. Bramble, FAM&M Insurance Inc., Chestertown

The MAP meetings also will allow association staff to recap recently launched IA&B programs and services and to share legislative and regulatory updates.

And, during an open forum, attendees may air individual agency struggles and brainstorm solutions.

As always, participants’ feedback then will head to the IA&B Board of Directors. Watch for updates and outcomes of the spring 2012 MAP meetings in Agent Headlines and upcoming issues of Primary Agent.

Robert S. Klinger, Klinger & Associates, Germantown Charles C. Veirs, III, C Clifton Veirs Agency, Rockville

Nominations for outstanding CSRs being accepted

Howard F. Wiedey, Jr., Wiedey & Associates Inc., Phoenix Thanks to these and other early supporters, we have raised $650 toward our 2012 fundraising goal of $12,000.

It’s easier than ever to make your contribution now (or spread it out over four easy quarterly payments) over the phone, by mail or online.

Outstanding customer service reflects outstanding agencies. As part of our mission to “drive members to distinction,” IA&B encourages members to recognize an exceptional front-line employee by nominating her or him for the 2012 Outstanding CSR of the Year Award. The award is sponsored by the National Alliance for Insurance Education & Research, and IA&B is accepting nominations and candidate entries.

www.iabgroup.com/AgentPAC

[6]

The award is open to anyone, regardless of designation, and candidates may nominate themselves.

The only requirement is that the candidate be an insurance CSR or have primary duties in customer service. Upon receipt of a nomination, IA&B will mail the candidate the necessary materials to complete the entry process.

Nominations should be made as soon as possible to allow the candidates ample time to complete all entry materials (including an essay) which are due May 1. Winners will be announced this summer. www.iabgroup.com/awards/ out_csr/index.html

Suburban Baltimore to host another Ruble seminar CIC designees can meet their annual update requirement in more places – and in less time. Thanks to demand, an additional James K. Ruble Graduate Seminar was added for Ellicott City, Md. on Aug. 13-14. (Other dates and locations are available in Maryland and Pennsylvania throughout the summer and fall.)

Ruble seminars have been shortened to two days for 2012. The condensed agenda with concurrent sessions allows CICs to maximize their topic options while reducing time out of the office and related travel costs. www.iabgroup.com/education

Tax time: retracted reporting requirement reminder Tax deadlines are looming … and your vendors are requesting a Form 1099!?

In case they missed it, the potentially burdensome Form 1099 mandate was repealed last spring.

Originally included in the Patient Protection and Affordable Care Act (health care reform law), it would have required businesses to file a Form 1099 for any business-to-business transaction for goods or services totaling over $600 annually. Bipartisan legislation repealed the mandate, which was intended to offset costs associated with the health care bill by increasing tax compliance.

Tomorrow's taxes may trigger agency sales today Aging agency owners may want to put their perpetuation plan in motion sooner than later. Impending taxes could make 2012 a tempting year to sell. w Without Congressional action, the capital gains tax rate on Jan. 1, 2013 will revert to the 2001 level of 20 percent for most taxpayers. w Assuming the Patient Protection and Affordable Care Act (health care reform) remains in place, a 3.8 percent tax on all unearned income above $250,000, to include capital gains, will begin as of Jan. 1, 2013.

[7]

Owners contemplating a sale are encouraged to contact an agency valuation consultant to determine a fair selling price. As a reminder, commission multipliers no longer are considered a good gauge of value and could prove detrimental to the buyer or the seller.

IA&B's website shares a list of consultants, as well as merger and acquisition trends, an introduction to the latest valuation techniques (such as EBITDA) and more. www.iabgroup.com/md/ perpetuation

New Power Hour webinar on concurrent causation The second installment of IA&B’s free Power Hour webinar series is scheduled for Wednesday, April 18, at noon. This month, coverage expert Rita Hollada, CPCU, CIC, CPIA, will offer Concurrent Causation: Coincidence, Happenstance or Just Dumb Luck?

This free one-hour webinar is exclusively for members and will be topical, engaging, and useful to you as an independent agent. Also mark your calendar for the June Power Hour, scheduled for Wednesday, June 20.

This webinar is entitled Online Gold Mine – Unearthing Valuable Resources at iabgroup.com. Watch Agent Headlines each week for more details. www.iabgroup.com/PowerHour

Preventing Primary Agent | April 2012

ERRORS AND OMISSIONS

PRODUCER DO’S AND DON’TS TO REDUCE E&O RISKS

CURTIS M. PEARSALL CPCU, AIAF, CPIA Curtis M. Pearsall, CPCU, AIAF, CPIA, president of Pearsall Associates Inc. and special consultant to the Utica National E&O Program, supplied this article.

Insurance Agents & Brokers Service Group Inc. is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania.

For questions regarding this article or your E&O coverage, contact IA&B at 800-998-9644 or iab@iabgroup.com.

From a distance, many may view the job of a producer at an insurance agency as glamorous and rewarding.

While those attributes apply, the job also presents tremendous challenges and responsibilities. For insurance agencies, the degree to which these men and women perform this job professionally and ethically can greatly determine not only the agency’s success, but its errors & omissions (E&O) risk as well.

Producers must have a strong technical knowledge of the industry, and there is definitely plenty to learn. As they interact with prospects and customers, producers will be looked upon to impart degrees of this knowledge to assist the public in protecting the customers’ assets. To ensure they are properly educating/informing the public, producers must make a strong commitment to not only knowing the various classes and lines of businesses, but also what differentiates one from the other. While the licensing class addresses this to a [8]

degree, an ongoing commitment to learning and knowledge is vital.

Know your client Once a producer has the knowledge, is he or she ready to sell? Having knowledge with no sales skills – or sales skills without knowledge – is a “glass half full” scenario. It also can be dangerous for the agency from an E&O perspective.

Learning the sales structure/ process is critical, yet the sales process doesn’t end when the sale is made.

Many organizations which provide solid training for sales and marketing break sessions down to pre-sale, sale and post-sale. How producers conduct themselves during the complete sales process will likely determine whether they are successful and to what degree they are an E&O risk.

Before that first appointment, the producer should get to know his or her client. One approach is by using the various exposure analysis

checklists which provide tremendous detail by line of business for more than 650 classes. For example, before visiting a prospect who is a dry cleaner, the producer must educate themselves on the exposures a dry cleaner faces. In addition, using available resources (websites, etc.) to understand your clients can be beneficial.

Learn more do’s and don’ts IA&B offers several E&O lossprevention seminars. All are approved for loss-control credit, as well as CE credits in Delaware, Maryland and Pennsylvania.

CLASSROOM TRAINING: w Best Practices of Loss Control w Mistakes that Lead to E&O

ON-DEMAND TRAINING: w Ethical Behavior and E&O www.iabgroup.com/E&Oseminars

When interacting with the client, it is extremely important that producers realize that in many, if not all, states, an insurance producer (agent/broker) has a common-law duty to obtain the coverage the client specifically requests within a reasonable time or inform the client of the inability to do so.

Accordingly, producers must do a fair share of listening to what the customer/prospect is asking for.

Use the right words While producers want and need to sell to be successful, there is also tremendous pressure and competition. There are times where marketing “puff” may enhance their ability to be successful, yet the words and phrases they use in promoting themselves and their agency should be chosen carefully.

Telling customers and prospects you are an “expert” in insuring restaurants or that “At XYZ agency, we make sure that you are properly covered” may sound impressive, but can also lead to the producer and the agency being held to a greater degree of liability should a problem develop due to a “special relationship.”

Moreover, avoid using the word “recommend.” It might sound harmless, but, for example, if you recommend that the client secures a $1 million umbrella and they ultimately have a loss well in excess of the $1 million, you could face an E&O claim for “recommending” a limit that was insufficient for the loss suffered.

Inherent in all of the interactions, whether with the prospect or the markets you are using, is the need for prompt and professional documentation. This is a key ingredient, but one that many producers struggle with. It’s as if the words “documentation” and “producer” just don’t go together. If a problem develops, this documentation – or lack thereof – will determine

heavily the direction of the E&O claim.

Documentation is not an option; it is mandatory. It must also be prompt and professional. There will be situations where documenting the essence of the conversation back to the prospect or customer, whether face-to-face or over the phone, is a must.

It’s your choice Does the customer always buy all of the coverages noted in the proposal? No. Producers should get the customer’s sign-off on the coverages/ limits they will not be securing.

Let’s say the producer received the order and requested the policies.

Once they are received, it is crucial that the policies be reviewed to ensure they reflect what was ordered.

The producer should have a hand in this process. Look to deliver the policies promptly. In all but a few states, the client has a duty to read their policy. Strongly encourage them to do so and, if they have any questions, advise them to contact the agency as soon as possible.

It will be necessary, over time, for the accounts be remarketed to other carriers in your office. When moving an account from Company A to Company B, advise the customer of any coverages they are “giving up” with Company B. Once again, documentation of these discussions is a must.

Being a producer requires tremendous knowledge, professionalism and attention to detail. This will go a long way to ensuring success. Without these attributes, you are an E&O nightmare waiting to happen. It’s your choice – and the right choice should be easy to make.

[9]

Know your client Understanding clients and their business is vital to understanding (and covering) their exposures. IA&B members have discounted access to a risk analysis system that will help them: w Understand exposures and learn recommended minimum coverages for over 650 different industries w Create questionnaires to collect necessary information for ACORD applications w Access coverage checklists to create a well-structured program and document clients’ selections Delaware: www.iabgroup.com/de/rough_notes Maryland: www.iabgroup.com/md/rough_notes Pennsylvania: www.iabgroup.com/pa/rough_notes

Coverage Primary Agent | April 2012

CORNER

RESERVATION OF RIGHTS — WHAT DOES THE INSURED DO? JERRY M. MILTON, CIC Jerry M. Milton, CIC teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.

In a perfect world a person or an entity purchases an insurance policy from an insurance company. That person or entity becomes a policyholder. The policyholder has a loss and notifies the insurance company. The insurance company either pays the claim or defends the policyholder. Everybody is happy. End of story.

However, we all know this is not a perfect world. Life is just not that simple. Many claims clearly are covered, many clearly are excluded, but, all too often, some claims fall into a gray area.

When claims do fall into that gray area, insurers are faced with a dilemma. What should they do? Do they accept the claim and provide defense for the insured? Do they reject coverage and abandon the insured? Or do they accept the claim subject to certain conditions?

If the insurer accepts the claim, provides defense, and then later determines the claim is not covered, the insurer may be prevented from abandoning the claim.

A court might wonder why the insurer abandoned the claim after it initially thought it was covered. The court could say that by its own acts, the insurer waived its rights to deny coverage. The legal system often refers to this as “bad faith.”

If the insurer denies the claim, walks away from the insured, and it’s determined later that the loss is covered, a court very likely will say the insurer breached its contract with the insured, and again use that term “bad faith.” If the claim is not clearly excluded, this option is certainly the most perilous for the insurer.

[ 10 ]

The third option is the safest – accept the claim subject to certain conditions. This allows the insurer to tell the insured, “We’ll take care of you now, but if certain conditions develop, we may walk away.” In order to protect its rights to walk away from this claim in the future, the insurer will send the insured a reservation of rights letter. The concluding language of a typical reservation of rights letter often looks like this: Nothing herein, nor any action taken by us, including but not limited to, investigation, defense, settlement, or adjustment, shall be construed as a waiver of right to deny coverage, and is subject to a full reservation of rights.

A reservation of rights letter does not mean the claim isn’t covered. It notifies the insured that the insurer thinks that upon further investigation there might be grounds to deny all or parts of the claim. Sometimes months may pass before the insurer knows enough to determine if coverage exists. As controversial as reservation of rights letters tend to be, they allow the insurer to steer between the twin perils of total acceptance or total denial of coverage.

What if the reservation of rights letter has the following statement?

When an insured receives a reservation of rights letter, what are the options? There are several.

Does this mean the insurer must be reimbursed for any amounts it spent defending the insured for an

Subject to the foregoing, and without waiving any of its rights and defenses, including the right to recover any defense costs paid if it is determined the Company does not owe the Insured a defense in this matter, the Company agrees to provide the Insured a defense in the captioned suit.

to be reimbursed in a series of reservation of rights letters sent to the insured.

Many courts, including those in Hawaii, Illinois, Wyoming and the U.S. Court of Appeals for the Third Circuit have agreed with Pennsylvania and refused to enforce a reservation of rights for reimbursement of defense costs. However, the courts of California, Florida and Colorado, as well as the federal district courts of Colorado, Louisiana and Minnesota plus the U.S. Court of Appeals for the Fifth, Sixth and Ninth Circuits have taken the opposing view. Their

w Ignore it. This could be a dangerous option, especially if it’s later determined that the loss is not covered. w Dispute it. Go on record immediately and advise the insured why you disagree with the interpretation of the policy.

Press the insurer to give specific reasons why it could potentially deny the claim. This creates a paper trail which could be helpful later on. w Put the insurer on the clock. A reservation of rights letter is not forever. Push the insurer to make a decision. Eventually the insurer must get off the fence. w Notify your attorney. Keep in mind that the insurer may decide to withdraw, and then you’re on your own. If you and your attorney are confident that coverage exists, you may want to seek a declaratory judgment.

uncovered claim? Once it’s determined that the claim is not covered, whether an insurer must be reimbursed for its costs and expenses incurred defending that claim is dependent on the specific facts of the case as well as the jurisdiction.

On Aug. 17, 2010 the Supreme Court of Pennsylvania ruled in the case of American and Foreign Ins. Co. v.

Jerry’s Sports Center, Inc. that the insurer could not obtain reimbursement of defense costs of $309,216 for a claim which a court later determined was not covered.

This ruling was made even though the insurer attempted to reserve its right

[ 11 ]

rationale is that the insurer should not be obligated to pay for non-covered claims when it does not receive a premium for the defense of those non-covered claims.

A reservation of rights letter is a red flag. The insurer is alerting the insured that coverage may not exist and, if not covered, the insurer has reserved its rights to walk away from the claim. A reservation of rights letter allows the insurer to tell the insured, “We told you this might happen. You should have been prepared.”

Y’all take care!

H.R.

Primary Agent | April 2012

HEADQUARTERS

NLRB EMPLOYEE RIGHTS NOTICE: WHAT OWNERS NEED TO KNOW JEFFREY W. GERHART CEBS, MBA Jeffrey W. Gerhart, CEBS, MBA, provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm.

IA&B members have access to HR Solution©, a compilation of products and services to help them establish or improve their human resources program.

Included are base-level consultation services and discounted professional services from Mosteller & Associates.

Learn more at www.iabgroup.com/hr.

the rule will increase knowledge of the NLRA among employees, in order to better enable the exercise of rights under the statute. A beneficial side effect may well be the promotion of statutory compliance by employers and unions. The final rule establishes the size, form and content of the notice, and sets forth provisions regarding the enforcement of the rule.

What is this rule about?

The National Labor Relations Board (NLRB) recently issued a ruling that changes election procedures for unions and employers and requires IA&B member agencies (and most other employers) to post union organizing rights for their employees. The rule reduces the time and effort that employers can exercise to conduct a proactive campaign that counters potential union allegations of unfair practices during an organizing drive.

Background: The NLRB offered the following explanation for the new rule: The NLRB believes that many employees protected by the National Labor Relations Act (NLRA) are unaware of their rights under the statute and that

Employers’ compliance deadline was delayed from Nov. 14, 2011 until April 30, 2012 due to a legal challenge (see editor’s note). Pending any further delays, employers will be required as of April 30 to post the employee rights notice in a conspicuous place, usually along with other required workplace posters.

You can learn more about the NLRA and its protections

[ 12 ]

and restrictions, as well as access the employee rights notice poster, at the NLRB website: www.nlrb.gov/faq.

Is there anything I can do in the meantime?

Yes. As owners, evaluate your vulnerability to a union-organizing campaign.

The following are a few key points to consider: w Do you treat your employees fairly?

Are you sure your employees would agree? w Do you have written human resources policies and procedures? And do your employees know about them? w Are your supervisors trained to understand their role? Do they have appropriate authority?

w Do your employees know that you are competitive with wages and benefits, or the things you do well that set you apart from your peers? w Do you understand that your employees are permitted to discuss their terms and conditions of employment, including their wages and benefits, with each other? (It is protected activity under the NLRA.)

Now is also a good time to conduct a human resource audit of your office. You can access a model audit through IA&B’s HR Solution© at www.iabgroup.com/hr. Or contact Jeff Gerhart of Mosteller & Associates, IA&B’s contracted human resource consulting firm, at 610-779-3870.

Editor's note: In early March, a U.S. District Court issued an opinion upholding the NLRB's authority to require posting of the employee rights

notice, while simultaneously striking down other provisions of the NLRB rule. As this issue of Primary Agent magazine went to print, an appeal of the court's ruling was anticipated, which may further delay the employers' compliance deadline.

IA&B will update members on any appeal and/or resulting change in their obligations via Agent Headlines e-newsletter.

Glance at Events APRIL CALENDAR Date

Topic

Location

3

CISR—Personal Auto Course

Salisbury, Md.

CISR—Personal Auto Course

Baltimore, Md.

4

CISR—Commercial Property Course

Mechanicsburg, Pa.

5

CISR—Commercial Property Course

State College, Pa.

10-12

P&C Licensing Study Course

Pittsburgh, Pa.

16-19

CIC—Commercial Casualty Institute

Allentown, Pa.

17-19

P&C Licensing Study Course

Allentown, Pa.

18

Power Hour Webinar (Noon – 1 p.m.)

19

Dynamics of Service Seminar

Linthicum, Md.

23-24

James K. Ruble Graduate Seminar

Pittsburgh, Pa.

24

CISR—Commercial Property Course

Reading, Pa.

Mistakes That Lead to E&O Claims Seminar

Breinigsville, Pa.

24-26

P&C Licensing Study Course

Mechanicsburg, Pa.

25

William T. Hold Seminar

Philadelphia, Pa.

CISR—Commercial Property Course

York, Pa.

CIC—Agency Management Institute

Lancaster, Pa.

30-May 3

[ 13 ]

AGENCY MANAGEMENT

A brave new workplace: building a bridge between generations The human capital landscape is changing fast — in a very literal sense. Today’s insurance workplace feels different, looks different and behaves like never before.

And this is only the beginning....

Primary Agent | April 2012

TT

he headlines blast that a Boomer turns 62 every seven seconds; helicopter parents drop their kids off on their first days of work; and the talent shortage is looming. Insurance companies now face a double threat: not only must they attract talent from a shrinking pool of qualified professionals, they must also be able to retain this talent. For the first time ever, the nation’s workforce spans four generations: the Traditionalists, the Baby Boomers, GenXers and the Millennials. A one-size-fits-all style is no longer an option.

The generations have different mindsets and values, as well as communication and application methods. An organization must understand each generation’s idiosyncrasies in order to meet their needs and expectations.

Meet the generations Each generation, along with its unique talents and perspectives, is critical to a company’s success. An organization must appreciate the diversity of ideas and approaches that the cross-generational workforce offers.

Traditionalists (born 1900-1945): Traditionalists are loyal, patient and dedicated. This generation maintains a strong work ethic, placing responsibility before pleasure and rarely turning down a work-related request. Traditionalists also possess a strong respect for the chain of command.

Understand that Traditionalists have spent the majority of their careers in a formal environment. Respect this mindset and take a formal approach when addressing them.

Face-to-face communication is key. _________________________________________________________

Give your organization’s recruiting strategy cross-generational appeal and explore multiple avenues to targeting this broad audience. _________________________________________________________

Baby Boomers (born 1946-1964): Baby Boomers currently comprise the majority of the workforce. These workaholics are disciplined, loyal and extremely competitive. They find a sense of self in the work they do and are the last generation to believe that a job can be for life.

Often resistant to change, Baby Boomers are loyal to tradition and bureaucracy. Give them your full attention and admit that in certain situations they are older and more

[ 15 ]

An organization must

appreciate the diversity of ideas and approaches that the

cross-generational workforce offers.

AGENCY MANAGEMENT

experienced. Boomers prefer clear communication of objectives and desired results.

GenXers (born 1964-1976): In direct contrast to the Boomers, Gen X works to live. This generation is starting families and greatly values work/life balance. They respond best to employers that offer job flexibility, job sharing or telecommuting options.

Independent, resourceful and comfortable with authority, they value productivity and desire high-quality results.

Gen X values challenge and feedback. Do not micromanage; tell them what needs to be done, but not how to do it. This generation prefers open, honest and direct communication. They value casual working relationships and the opportunity to be heard. They espouse to a “career lattice” rather than a “career ladder.”

Millennials (born 1977-1995): Millennials have high expectations of their employers.

They view work as an expression of themselves; therefore, this mobile, goaloriented generation wants to make an impact. Their energy and optimism drive their need to succeed. Millennials were brought up to believe that they can do whatever they put their minds to. Therefore, they have greater demands of employers than their predecessors.

A strong corporate brand and image is important to this

group; they value teamwork, structured training, upward mobility, and flexibility in hours and dress code. They place emphasis on a wellrounded workplace, including opportunities for community service, a commitment to diversity, environmental awareness, office sports teams and social events. Assign them multiple projects and responsibilities and encourage them to share new ideas and solutions. ________________________________

A company’s corporate culture is critical to overcoming the obstacles created by generational differences. ________________________________

Attract the generations The social networking and online job boards that catch Millennials’ eyes may never be seen by Traditionalists.

Likewise, newspaper and radio ads are obsolete in attracting the younger generations. Give your organization’s recruiting strategy cross-generational appeal and explore multiple avenues to targeting this broad audience. Visit college campuses, post open positions on websites and industry job boards, utilize word-of-mouth recruiting, pull out a rolodex of connections, and employ search firms. Revamp your

[ 16 ]

recruiting program to appeal to college students, as well as mature workers.

Engage the generations A company’s corporate culture is critical to overcoming the obstacles created by generational differences. A strong, well-defined culture sets the expectations, rules of engagement and best practices that shape how employees interact on a daily basis.

Realize that each generation has a distinct expectation of how managers should communicate. Millennials want quick and consistent feedback.

They seek involvement, new projects and the opportunity to grow. Meanwhile, Baby Boomers believe in fostering a formal working relationship with their superiors and peers.

They feel comfortable with scheduled meetings and want to be recognized and rewarded on a company-wide scale. On the other hand, Traditionalists operate under the condition that “no news is good news.”

They appreciate conventional rewards such as plaques and certificates.

Build a bridge If a disagreement occurs between a 35-year-old vice president with an MBA and a 60-year-old director with 25year company tenure, who do you listen to? In an age where younger generations manage those with more years of

corporate experience and where Traditionalists might be working closely with Millennials on a daily basis, it is imperative that managers acknowledge generational differences and make adjustments to accommodate staff members. ________________________________

Managing a crossgenerational workforce is a new challenge and must be approached with savvy and finesse. The one-size-fits-all workforce is long gone; however, the increased productivity and knowledge capital that will result from a diverse workforce is invaluable. ________________________________

Upon graduation from college, Generation Y will be the largest generation our workforce has ever seen; and the insurance industry must engage and prepare our future leaders. Position the mature workers as the bridge for this transition. Utilize mentorship programs, a multi-generational task force or cross-generational project teams. Educate managers, supervisors and team members on the differences between the generations, as well as how to bridge the gap and leverage the diversity of ideas and approaches.

Continued on page 18

[ 17 ]

Member profile John Yurconic Agency pumps young blood into workforce

J

ohn Walsh supervises a team of nine. He oversees the personal lines department’s entire sales and service operation. And he manages a large, established book of business for the 43-year-old John Yurconic Agency.

Oh, and he’s only 26.

Welcome to the next generation of independent insurance agency staff.

Walsh is enthusiastic about the business. He’s a hard worker. And he has no qualms about attracting clients through Facebook and managing accounts over email. He plays hardball with the direct writers by competing online and relates to the young consumers who surf the Internet for the best deals. Yet he recognizes the purpose of establishing relationships and providing personalized customer service that differentiates the independent agency system.

The Allentown, Pa.-based John Yurconic Agency employs over 20 licensed staff, many of whom fall into the Gen X and Millennial generations. Yet a core of seasoned insurance veterans balance out the team. Walsh sees how generational differences affect work style but believes in the advantage of middle ground.

“Somewhere in the middle is a happy place, where both generations can meet,” he shares. “Both can benefit.”

Walsh is the first to admit that he looks his age. He says some clients and prospects initially don’t take him as seriously as he’d like because of it. But sharing with them that he has six years of insurance knowledge tends to erase their concerns.

“There are benefits to my age, too,” he says. “Some clients like the younger agent who gets excited more easily.”

So what’s his advice for the elder statesmen (and women) of the independent insurance agency system? Give young blood a chance – and be open minded to where you find it.

“From what I’ve seen, [talented young producers] can come from anywhere,” he shares. “An insurance background is helpful but not necessary. A good sales person is a good sales person. They can learn insurance. Find someone who’s driven.”

AGENCY MANAGEMENT

Continued from page 17 The bottom line? A company must be flexible and agile. At the end of the day, productivity and quality are the barometer of success. If employees want formal meetings, schedule them.

If they prefer that a project is explained via email, do so. If they work at their desks with iPods blasting, don’t assume nothing is getting accomplished; examine the quality of their work. If Boomers want to conduct face-to-face meetings for the duration of the project, let them. If Generation X prefers to work from home and hold conference calls, yet still maintains productivity, offer telecommuting.

Managing a cross-generational workforce is a new challenge and must be approached with savvy and finesse. The one-sizefits-all workforce is long gone; however, the increased productivity and knowledge capital that will result from a diverse workforce is invaluable.

The companies that will remain successful throughout the impeding talent crunch are those that can alter their management styles to target and accommodate each generation. _______________________________

Margaret Resce Milkint, managing partner of The Jacobson Group,

contributed this resource. She can be reached at 800-466-1578 or mmilkint@jacobsononline.com.

The Jacobson Group is the nation’s leading provider of insurance talent. For 40 years, we have been connecting insurance organizations with professionals from the board room to the back room on both a permanent and temporary basis. We offer a variety of solutions from executive search, professional recruiting and RPO to temporary staffing, subject matter experts, and onsite and offsite operations support. Whatever the need or situation, Jacobson is the insurance talent solution.

For more information, please call 800-466-1578 or visit www.jacobsononline.com.

The Secret Is Out! Hanover Agents Love To Tell Their Customers Why They Are Happy To Be Associated With Us. HANOVER FIRE & CASUALTY serves the working families of our region by offering the insurance they need. No games. No tricks. Just good, solid insurance available to those who really need it. We settle claims promptly and fairly, and we manage to hold our rates. And the fact is, for nearly 100 years, our customers return and renew with us; well, that just drives the point home, doesn’t it?

Would you like to be a Hanover agent? For more information call 800-919-FIRE or visit www. hanoverfire.com. Learn more about our portfolio of products, our easy-to-use agent portal, and our competitive commission structure. Call today!

s ,ANDLORD )NSURANCE s 2ENTERS )NSURANCE s (OMEOWNERS )NSURANCE s 6ACANT $WELLING )NSURANCE s !RTISANS ,IABILITY s $IRECT &AST /NLINE 1UOTING "INDING s ./ #2%$)4 3#/2%3 s $IRECT 0ERSONAL #USTOMER 3ERVICE s 3IMPLIlED 5NDERWRITING s %&4 !UTOMATIC #REDIT #ARD /PTIONS s )N (OUSE #LAIMS (ANDLING

/NE 7EST &IRST !VENUE 3UITE #ONSHOHOCKEN 0! s \ &AX

[ 18 ]

IF YOU HAVE THE TOOLS, WE HAVE THE INSURANCE.

Our Apartment Program offers a great combination of

competitive pricing and coverage for

your customers!

Residential Contractors with up to five employees can find great deals on liability and tools insurance at Brokers Surplus Agency! We represent UTICA First Insurance, one of the largest writers of small contracting firms in the Northeast!

Five or more units are eligible for this great program.

An optional Apartmentizer Coverage Endorsement is also available which includes 34 additional coverages such as: Landlord/Owner Furnishings Loss of Earnings Lock Replacement Utility Interruption Water Back-Up of Sewers & Drains and much more!

Apartment program available in DE, MD, NJ and PA

Blanket Additional Insured coverage and UTICA’s own “Toolbox Endorsement” which includes 7 bundled additional coverages saves your customers hundreds of dollars! Call or e-mail us today for a quick quote.

Artisan program available in DE, MD, NJ & PA

Brokers Surplus Agency, P.O. Box 2849, Warminster, PA 18974 Call (215) 443-9900

Brokers Surplus Agency, P.O. Box 2849, Warminster, PA 18974 Call (215) 443-9900

Contact: Dennis Marsaglia, Ext. 230 dennis@brokerssurplusagency.com Evelyn Frisch, Ext. 227 evelyn@brokerssurplusagency.com

Contact: Dennis Marsaglia, Ext. 230 dennis@brokerssurplusagency.com Evelyn Frisch, Ext. 227 evelyn@brokerssurplusagency.com

Your wish is granted!

GUARD Plus

Comp • Businessowner’s • Auto • Umbrella

You want/we offer: 1- Ease of doing business ! Same-day (often same hour) responses ! Sophisticated technology (including a nationally recognized agency portal) PLUS personalized attention 2- Competitive price 3-Broad underwriting appetite targeting small- to mid-sized risks ! Metropolitan areas don’t scare us. ! Coastal exposures are considered!

4- Unique product ! A strong Workers’ Comp lead line ! Special BOP Stretch endorsements 5- Superior claims handling that promotes customer retention 6- Favorable compensation

A limited number of appointments are available.

Contact us to learn more: www.guard.com/apply

[ 19 ]

®

Your Business Is Our Business!

Platinum Profile

Insurance Agents & Brokers proudly recognizes Millville Mutual Insurance Company as one of its Platinum Partners.

IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

Millville Mutual company headquarters located in Millville, Pennsylvania

M FEATURED PARTNER: Millville Mutual Insurance Company COMPANY PRESIDENT: M. Paige Raski President COMPANY LOCATION: 215 State Street, Millville, PA 800-262-8495 A.M. BEST RATING: “A” (Excellent) WEB SITE: www.millvillemutual.com

illville Mutual Insurance Company has been in business since 1875 and is one of the four oldest continuously operating businesses in Columbia County, Pa. With $56 million of assets, $24 million in premium and $32 million in surplus, Millville Mutual is proud to announce that, due to financial strength and efficient operations, it has retained an “A” (Excellent) rating

by AM Best Company, which is a rating it has maintained since 1973.

We have achieved significant progress in the redesign of a webbased policy management system which will allow our customers and agency force access to policy and billing information 24/7. Last year saw the implementation of this system with the addition of Businessowners, Farmowners, Commercial Inland Marine, Special Residential, Personal Umbrella, and Farm Umbrella lines of business.

2012 will see the completion of this program along with the official introduction of Millville Mutual Insurance Company of New York.

At this time we are offering Flood Insurance in the state of New York and will also offer Dwelling Fire, Mobile Homeowners, and Homeowners in the near future.

Millville Mutual takes pride in serving its nearly 60,000 policyholders throughout the state of Pennsylvania. The staff at Millville Mutual is dedicated to building strong ties to rural and suburban Pennsylvania, which gives them the insight and knowledge to tailor their products and services to fit the specific needs of each individual policyholder. With more than 175 independent agencies across the state, customers can receive the personalized service and individualized products they deserve.

Millville Mutual strives to provide the best possible combination of personalized customer service and technological advancement available in today’s market, and are committed to building lasting relationships with both their policyholders and their independent agency force.

Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

WHAT IS IA&B PARTNERS?

PLATINUM LEVEL

BRONZE LEVEL

ACUITY Berkley Mid-Atlantic Group Donegal Insurance Group Erie Insurance Group Harleysville Insurance Highmark Casualty Insurance Co Insurance Agents & Brokers Service Group Inc

Aegis Security Insurance Co

MMG Insurance Company Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Ohio Casualty Penn National Insurance Selective Swiss Re The Main Street America Group Utica National Insurance Group

Encompass Insurance

GOLD LEVEL

Lebanon Valley Insurance Company

To become an IA&B Partner, choose the sponsorship

Progressive

Merchants Insurance Group

The IA&B Partners program gives company and allied businesses the opportunity to demonstrate their commitment of support to independent agents and receive maximum market exposure. As an IA&B Partner, you will also realize the benefits of IA&B membership to help you succeed in the insurance industry.

DO YOU SEE YOUR NAME?

Contact the Member Sales Center at 800-998-9644, 717-795-9100 or visit us online at www.iabgroup.com to get started.

AmWINS Program Underwriters Inc Auto-Owners Insurance Company Briar Creek Mutual Insurance Company Builders Insurance Group Chubb Group of Insurance Companies Countryway Insurance Company First General Services Foremost Insurance Group Goodville Mutual Casualty Company Guard Insurance Group Harford Mutual Insurance Co Hanover Fire & Casualty Insurance Company Insurance Alliance of Central PA Inc Insurance House Insurance Placement Facility of PA Keystone Insurers Group Inc Mercer Insurance Group Mercury Casualty

package that matches your commitment of support.

Agency Insurance Company

SILVER LEVEL Access Insurance Company Allied Insurance American Mining Insurance Co Cumberland Insurance Group Frederick Mutual Insurance Co Juniata Mutual Insurance Co PSBA Insurance Trust The Philadelphia Contributionship Westfield Insurance

Penn PRIME Municipal Insurance Reamstown Mutual Insurance Company Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Motorists Insurance Group The Mutual Service Office Inc Travelers Tuscarora Wayne Insurance Company Zenith Insurance Primary Agent April 2012

AGENCY MANAGEMENT

A study in internships Two member agencies share their successes

Wouldn’t it be great to “test drive” employees before hiring them? To see how they perform in a fast-paced environment? How they maneuver around unexpected road blocks?

How they approach seemingly uphill tasks?

Several of the Seubert Associates interns-turned-permanent-employees: (from left) Doug Fleisner, Kristie Lulich and Brian Hartman

Primary Agent | April 2012

Those very thoughts drive the creation of many independent agencies’ internship programs.

Motivators Brian Long, president of Seubert Associates in Pittsburgh, Pa., hired his agency’s first intern simply to meet a claims department need. Eighteen years later, the internship program is formalized and takes in two to five students per year.

The next step: from intern to new hire

As for that first intern? She came on board as a full-time employee and has worked for Seubert ever since. Four additional interns followed in her footsteps, taking permanent positions with the agency, and two of those are now agency principals and became Seubert’s top producers in 2011 at the ripe young age of 30.

The York, Pa.-based McConkey Insurance & Benefits internship program began in 2007 as a recruitment tactic — a tactic that already paid off. Two of the agency’s five interns took full-time positions with the agency; two others took jobs within the industry. ______________________________________________________

“One of the main benefits of our internship program has been for us to create a pool of qualified candidates….

It’s a three-month job interview.”

— Amanda Sides ______________________________________________________

“One of the main benefits of our internship program has been for us to create a pool of qualified candidates,” shares Amanda Sides, a client service agent with McConkey who oversees the internship program. “We know their work ethic and can be confident in their skills and abilities. Those are things you can’t get out of an interview and resume alone.

It’s a three-month job interview.”

Long agrees. He calls the internship program “a feeder” and touts its ability to gauge students’ work ethic and promise as future employees.

“Finding young talent is the whole reason for our existence,” he says, explaining the Seubert agency’s business model, which requires employees to sell their stock back when they reach age 65. “The goal is to find smart young people to buy

[ 23 ]

Hiring and training young producers is a different game. Those firms that will succeed must do four things well.

1. If they want to recruit college kids, they must establish a presence on college campuses as a means to identify the best talent.

2. The firms should invest in mentoring of the young producers to the point that mentoring becomes part of their firm’s culture.

3. Young producers should be hired in classes, fostering a collegial bond among [them].

4. The young producers should be provided with resources that will make them successful.

Source: “Recruiting Young Producers Can Pay Big Dividends,” American Agent & Broker, June 2010

AGENCY MANAGEMENT

you out…. We use the three months to screen [potential new hires].”

Expectations The benefits of an internship to an agency are great, but recruitment and management require work and often agency-wide buy-in.

7

Sides partners with local college and university career service centers to post the internship position and looks to recommendations from colleagues as well. Long mostly relies on word of mouth and finds that everyone

Then she doles out long-term projects — often focusing on market research — that the students complete in any downtime. The interns even receive a mid-summer evaluation to track their progress and encourage improvement.

on staff is looking actively for potential candidates. Both credit the quality of local colleges and universities for their applicant pool.

The McConkey and Seubert agencies bring on interns during the summer months, when the students can focus solely on their agency work, rather than competing class syllabi.

Sides structures internships with a flexible summer-long schedule, outlining when the students will shadow and complete tasks for each of the agency’s six departments.

Seubert Associates interns are hired by a department, usually to complete a specific task.

Projects vary from insuranceto-value research to data entry to equipment scheduling.

Students also are required to complete homework throughout the summer:

Set Sail with Confidence Preferred Property Program’s umbrella insurance gives you flexible, comprehensive protection More options and better coverage await you with Preferred Property Program.

Brokers can offer our umbrella programs knowing theyʼre the most secure umbrella policies anywhere.

• $5 to $25 Million in umbrella coverage with up to $50 Million in total limits.

• Hi-Rise apartments up to 35 stories eligible, with higher eligible by referral.

• Excess of D&O, General Liability, Auto, Employers Liability, Employee Benefits and more.

• Highly-rated underwriters with XL Group and Chubb Insurance Group.

Contact us for a quote:

888.548.2465 A subsidiary of

info@umbrellaprogram.com www.umbrellaprogram.com

®

Service is our specialty; protecting you is our mission ®

JGS

960 Holmdel Road, Holmdel, NJ 07733

INSURANCE

XL Insurance is the global brand used by XL Group plc's insurance companies.

Preferred Property Program’s XL policies are underwritten by Greenwich Insurance Company.

[ 24 ]

Primary Agent | April 2012

reading Earl Nightingale’s “The Strangest Secret for Succeeding in the World Today” and watching his “The Boss” video, then writing a paper on them.

great to see those ideas turn into successes.”

Long agrees and adds, “If we can find some smart young people and try to plant a seed

that it’s a great industry to be in, we can not just survive but thrive.”

_____________________________

“If we can find some smart young people and try to plant a seed that it’s a great industry to be in, we can not just survive but thrive.”

— Brian Long _____________________________

“Our internal environmental enhancement group brainstorms projects our agency needs to work on,” says Long of the source of many internship duties. “Watching the interns work style and thought process, you can see which ones get it and which ones don’t.”

Benefits The McConkey and Seubert internship programs are success stories — for their agencies and for the industry at large.

“This has been a positive experience for the agency,” shares Sides. “Even if we don’t hire our interns full time, the projects they complete contribute to our agency’s success. Our interns bring new perspectives and ideas, and it’s

We don’t just create fast and simple automation solutions for our agents.

With a “WOW” quoting system and superior service, we set out to delight them.

wow!

That’s just one of the reasons we’ve been ranked among the top 10 carriers nationally in ease of business by Deep Customer Connections.

Business t Surety t Auto t Home

www.PennNationalInsurance.com [ 25 ]

AGENCY MANAGEMENT

ABCs of designations Sending new agents to the head of the class

New agents: Looking for a competitive edge? A way to improve your value as an employee, help in your interactions with clients and advance your career?

A designation could be your ticket. Here, IA&B filters through the alphabet soup to highlight what it takes to tack a few letters behind your name.

Primary Agent | April 2012

W

hat’s a designation worth? Quite a bit in the insurance world. It’s a way to develop knowledge in an ever-changing industry, gain clout among colleagues and build trust with clients.

“A designation earns you respect and a level of authority when talking about coverage issues,” says L. Allan Boyd, CIC, vice president and agency manager for Shoemaker & Besser Insurance in York, Pa. “Suddenly people in the agency come to you with questions.”

Kurt Richards, CIC, CPIA, sees the value in how a designation changes an employee’s outlook.

“It improves your overall professionalism and attitude toward your job,” says the vice president and commercial lines producer for the Swift Kennedy Insurance Group in DuBois, Pa. “I recommend it to the producers in our office, along with other agent friends.” _________________________________________________________

“When I first received my designation, I was out selling commercial insurance,” says L. Allan Boyd, CIC. “What I learned at the institutes gave me the ability to look at an account, pick it apart and offer an intelligent opinion about what was wrong with it. It enhanced my ability to sell insurance.” _________________________________________________________

How to get started IA&B long has been known for its professional development. Expert instructors, convenient locations and exceptional value keep insurance professionals across the Mid-Atlantic coming back for more.

Along with licensing preparation, E&O prevention and special topic seminars, IA&B offers CIC, CISR and CPIA designation courses.

Learn more and register: www.iabgroup.com/education

CIC The Certified Insurance Counselors (CIC) program consists of five institutes: personal lines, commercial casualty, commercial property, life & health and agency management. Each institute includes two and one-half days — or 20 hours — of instruction followed by an examination. Designees are then required to take one program annually to retain the certification.

The designation is intended for agency owners, agents and brokers. To qualify, participants must be a licensed agent, broker, adjustor or solicitor; have at least two years of full-time experience in the industry as a risk management practitioner; or have served as a full-time faculty member at an accredited college or university.

[ 27 ]

AGENCY MANAGEMENT

According to The National Alliance for Insurance Education & Research, which oversees the CIC Program, the institutes focus on a hands-on, practical application of insurance principles.

More information: www.scic.com

CISR

corresponding exams, is required within three years of starting the program.

The topics include insuring commercial casualty exposures, insuring commercial property, insuring personal residential property, insuring personal auto expenses and agency operations.

The Certified Insurance Service Representatives (CISR) designation is intended for agency personnel interested in improving their customer service.

Designees leave with a thorough understanding of risks, coverages and exposures, which makes the program ideal for newer agents and agency personnel.

The completion of five, one-day courses, along with

More information: www.scic.com

CPCU The Chartered Property Casualty Underwriter (CPCU) program focuses on the legal, financial and operational aspects of risk management and insurance, as well as on financial services. Brokers, agents and risk managers are the intended audience for this theoretical coursework.

Participants complete five foundation courses and three additional classes with either a commercial- or personal-lines concentration. Candidates must also log a minimum number of hours in the insurance field during the previous five years to receive the designation.

More information: www.aicpcu.org

Get Real!

Get MBG Real people Rea RREAL response At MBG, you, your insureds, and claimants get calls answered by a real live receptionist. And she’s just as pleasant whether you’re the first caller of the day...or the 900th.

RREAL experience RREAL solutions

Really.

RREAL support

CPIA The Certified Professional Insurance Agent (CPIA) designation is designed for producers and sales support staff who create and distribute insurance programs.

The American Insurance Marketing and Sales Society oversees the program, which is touted as “hands-on, how-to training.” Candidates participate in three, one-day Insurance Success Seminars: position for success, implement for success and sustain success. They leave with a guarantee of a 20 percent increase in personal production within six months.

More information: www.cpia.com

MUTUAL BENEFIT GROUP Huntingdon, Pennsylvania www.mutualbenefitgroup.com

[ 28 ]

Tools

YOU CAN USE

LinkedIn one are the days of relying on newspaper Classified ads – or even Monster.com. The advent of the social Web opened up a new world of job searching and recruiting, and LinkedIn is leading the way. Ways to find new talent using a basic (read: free) LinkedIn account follow.

G

Get social at www.linkedin.com. And while you're linking, join IA&B's LinkedIn group, accessible from www.iabgroup.com/soc_media.

Reach out to potential candidates through a common connection. Or send an invite for them to connect with you.

Use the Advanced People Search to find candidates by name, job title, keywords, industry and more.

Post your agency’s job on a LinkedIn group’s job tab.

Share a status update that includes a link to your agency’s job on your agency website.

Money talks. Access premium search tools and send InMail to anyone, regardless of whether or not you are connected, with a membership upgrade. Buy a job-posting package for your position to show up on LinkedIn users’ homepages and in their searches.

[ 29 ]

ASSOCIATION AT WORK

2012 Company Satisfaction Index Have your say in half the time

IA&B’s Company Satisfaction Index (CSI) survey is back — and it’s easier than ever to complete.

Primary Agent | April 2012

Company Satisfaction Index [kuhm-puh-nee sat-is-fak-shuhn in-deks] noun: a gauge of IA&B members’ collective experiences with carriers’ products, underwriting, claims and technology

Top 10 reasons to take the CSI survey 10.

It takes half as much time as previous CSI surveys.

9.

The results bolster IA&B’s carrier relations efforts.

8.

All the cool agency staff members are doing it.

7.

The results can strengthen a client proposal.

6.

It’s a refreshing break from pinning on Pinterest.

Participants rank their satisfaction — 4 indicates satisfaction, while 1 denotes dissatisfaction — on a series of statements.

Categories include products, pricing and underwriting; policy service and claims; agency/company relationship; and technology. The survey is housed online, so participants can save their progress and return whenever it’s convenient.

5.

The results are a must-read before accepting a company appointment.

4.

Speaking your piece is cathartic.

The overriding goal of the CSI is to improve carrier performance. Beyond that, there are tangible benefits to agencies — comparing carrier relationships with those of their peers and benchmarking companies before accepting appointments. And from a global perspective, the results are vital to IA&B’s dialogue with carriers.

3.

The results let you compare your experience with others.

2.

Greater participation equals greater credibility.

1.

Carriers read the results.

Slimming down the time commitment The CSI is half its former size. Beginning this year, the previously biennial survey is now an annual event that alternates between personal lines and commercial lines.

With half of the carriers to rate, participation requires only half of the time. Truly, it has never been easier to take the survey.

Getting up to speed Here’s how the CSI works: All IA&B member agency staff are encouraged to rate their top three, or more, if they’re willing, carriers in an online survey. For 2012, participants will rate personal lines carriers. Next year the survey will gauge commercial lines carriers.

Beefing up the credibility Participation has grown substantially since the CSI launched in 2004. At its height, over 500 member agents rated 114 companies. And for a non-scientific survey, the greater the participation, the more credible the results.

Along with credibility, increased participation also improves carriers’ reception to the survey. CSI results are showing up in carriers’ marketing materials and agency-visit discussions, and company executives are touting their use for benchmarking their agent relationships.

In the day where agency-company relationships are strained by mounting pressures, growing competition and a lingering soft market, opening up lines of communication is more important than ever. And IA&B’s CSI accomplishes just that.

[ 31 ]

Save the dat e April 16

- CSI Day www.iabg roup.com /csi

Classified ADVERTISEMENTS

DISCOVER THE BENEFITS OF A PARTNERSHIP WITH FAYETTE INSURANCE ASSOCIATES Uniontown, PA 15401 Website: www.fayins.com Email: info@fayins.com

SOUTHEAST PA PRODUCERS & AGENCIES Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services.

Contact Ray Reinard at 215-375-8600, Ext. 119.

If you would like to place a Classified Advertisement, simply fax your ad on company letterhead to 717-795-8347, and we will take

The risks of Friday the 13th Friday, April 13 marks the second of three Friday the 13ths in 2012. It’s exactly 13 weeks after Friday, Jan. 13 and 13 weeks before Friday, July 13.

Which makes it enough for even the least superstitious to give pause, or — for those of us in the insurance industry — to ponder the date’s risks.

care of the rest.

There are no shortages of studies claiming an increase or decrease in accidents on Friday the 13ths:

Ad Index

A 1993 British Medical Journal report found “the risk of hospital admission as a result of transport accident may be increased as much as 52 percent.” Researchers went as far as to recommend staying home.

ACUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Brokers Surplus Agency . . . . . . . . . . . . . . . . . .19 EMC Insurance Companies . . . . . . . . . . . . . . . .3 Guard Insurance Group . . . . . . . . . . . . . . . . . .19 Hanover Fire & Casualty . . . . . . . . . . . . . . . . . .18 IA&B Partners Program . . . . . . . . . . . . . . . . . . .21 IA&B AgentPAC . . . . . . . . . . . . . . . . . . . . . . . .IBC Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC Millers Mutual Group . . . . . . . . . . . . . . . . . . .IFC Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .28 Penn National Insurance . . . . . . . . . . . . . . . . .25 Preferred Property Program . . . . . . . . . . . . . . .24 [ 32 ]

On the contrary, in 1998 the Dutch Centre for Insurance Statistics found that fewer accidents and reports of fire and theft occur on Friday the 13ths compared to other Fridays.

Swedish insurer Trygg-Hansa concurred in 2012, finding that it received 3 percent fewer reported accidents on Friday the 13ths than on other Fridays in the previous five years.

So whether or not you consider yourself paraskavedekatriaphobic (fearful of Friday the 13th), be prepared for clients — particularly those making a claim that day — to take note of the calendar.

Sources: Reuters, The Local ----------------------------------------------------------------———————------The Last & Least column is dedicated to the industry’s oddities — from creative claims and kooky coverages, to (tasteful) jokes and strange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

SPEAK UP! YOUR JOB DEPENDS ON IT!

SUPPORT AGENTPAC —

That’s how we deliver distinction.

your voice IN THE STATE CAPITOL. AgentPAC is your state political action committee and the collective voice of independent agents in the state capitol.

Issues that affect your job are at stake, and backing legislators aligned with IA&B’s government affairs agenda depends on your support. Watch for Grassroots Action Alerts prompting you to contact your legislators on specific issues, and consider donating to AgentPAC at a level that speaks (loudly) to policymakers that support our cause.

LEARN MORE AND CONTRIBUTE ONLINE AT IABGROUP.COM/AGENTPAC.

See political action... in action! Scan the QR code with your smart phone, or visit iabgroup.com/MDadvocacy.

Your voice in the state capitol.

8F ,OPX UIF %SJMM If you have clients involved in the rapidly expanding Marcellus Shale natural gas industry—and who doesn’t these days?—Interstate has the coverages you need for water haulers, dumps and other ancillary classes.

If your client hauls any commodity for the natural gas drilling industry, Interstate can insure them!

Marcellus Shale Coverages r " 3BUFE $BSSJFST r &YUSFNFMZ $PNQFUJUJWF 3BUFT r 8SJUJOH "DDPVOUT PG "MM 4J[FT r 0XOFS 0QFSBUPST UP -BSHF 'MFFUT

In Pennsylvania, Delaware, Indiana, Kentucky, Maryland, Michigan, New Jersey, Ohio, Virginia & West Virginia 2307 Menoher Blvd. Johnstown, PA 15905 814-255-7878 1-800-452-0297 Fax 814-255-6010

"QQMZ POMJOF PS HFU ZPVS RVPUF BU XXX JOUFSTUBUF JOTVSBODF DPN