AUGUST 2018 | DELAWARE
HELP YOUNG AGENTS GET AHEAD
CAREER ADVICE FOR YOUNG AGENTS HOW TRAINING IMPACTS E&O
TO BUILD A BUSINESS IS TO BELIEVE IN TOMORROW Business owners believe in the promise of tomorrow. For more than 100 years, Grinnell Mutual has been there to help you protect that promise. Trust in Tomorrow.® Contact us today. * Products available in Pennsylvania only
grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2018.
IN THIS
12 CHARTING YOUR COURSE(S): CAREER ADVICE FOR YOUNG AGENTS Welcome to the insurance industry. Now what? John Dormuth – new IA&B faculty and director of industry relations for Temple University’s Department of Risk, Insurance and Healthcare Management – offers words of wisdom on charting your path and advancing your career.
18 HOW TO PUT YOUNG AGENTS ON THE PATH TO SUCCESS
By and large, Millennials are seeking meaningful careers with the opportunity for growth. Is your agency meeting young agents’ needs?
20 MOST UNDERUTILIZED AGENCY MANAGEMENT SYSTEM FUNCTIONS
An agency management system is the largest technology expense for virtually any agency regardless of the particular vendor or platform. Learn how to utilize your system to full capacity to maximize internal productivity and provide a better customer experience.
IN EVERY ISSUE 2 3 4 6 8 10 27 28 28 28
Chair of the Board’s Message Don’s Discussion Preventing Errors & Omissions Coverage Corner State News IA&B Partners JOIN US ON SOCIAL MEDIA: Pics & Posts Facebook.com/IABforME Education LinkedIn.com/company/IA_and_B Classified Ads Twitter.com/IA_and_B Advertiser’s Index
About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware. Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2018-8, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.
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Copyright 2018. 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 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. 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 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.
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CHAIR OF THE BOARD’S MESSAGE
BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com
MENTORING THE NEXT GENERATION
OFFICERS
Chair of the Board
John B. Hollister
R
Vice Chair of the Board
Craig S. Mader
ecruiting young talent into the independent agency system is only half of the battle. Young agents want our support, and we need to give it if we expect them to continue in their career paths. As a board member, I had the opportunity to attend a portion of last year’s IA&B Futures Conference. What I saw were dozens and dozens of smart, driven young agents – agents who want to make a career in an independent agency work but who crave camaraderie and mentorship and direction. I know firsthand that it’s easy to get caught up in the day to day, to focus on our own goals, and to leave young agents to their own devices. But it’s not fair, nor will it yield the results we need – another generation to carry on our work. Give this issue of Primary Agent magazine a read and pass it along to the young agents in your office. You’ll find insights on professional development and training paths, and details about this year’s IA&B Futures Conference for young agents. Then make time for the newcomers in your agency. Encourage them, support them, and invest in them. In the end, this benefits all of us.
Immediate Past Chair of the Board
Michael F. McGroarty Sr.
MEMBERS
Emory Stephen Burnett, CIC, ARM Wilmington, Del.
Richard F. Corroon, CPCU Wilmington, Del.
Michael P. Ertel Sr.+ Columbia, Md.
Ashley M. Fitzsimmons, CISR Forest City, Pa.
G. Greg Gunn, CIC* Lemoyne, Pa.
Bryan C. Hanes, JD Hagerstown, Md.
David C. King Lancaster, Pa.
Lisa A. Leach Goth, CIC New Bethlehem, Pa.
Elizabeth H. Martin, CIC Millersville, Pa.
Mark J. Monroe
All the best,
West Chester, Pa.
Joseph R. Pastor, CPCU, AAI Oil City, Pa.
Richard M. Rankin, CIC
John Hollister Chair of the Board
Lancaster, Pa.
April E. Ressler, CIC Altoona, Pa.
D. Bradley Rosenkilde Jr. Hunt Valley, Md.
Tara S. Silfies, CPCU Bethlehem, Pa.
Glenn R. Strachan
Ft. Washington, Md.
Bryan S. Willey Dover, Del.
Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, Del.
J. Marshall Wolff, CIC, CPCU Easton, Pa.
* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director
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AUGUST 2018
Don’s Discussion IA&B Legal & Corporate Affairs Director Don Bankus provided this month’s answer.
QUESTION: Should an insurance ID card be issued for a 6-month or 12-month period?
ANSWER:
T
hat depends. Generally speaking, insurers are permitted/required to provide insurance ID cards that are valid only for the period of time for which coverage will be in place and has been paid by the insured. However – again, generally speaking – if the insured is on an insurer-sponsored payment plan, has financed premiums through a premium finance company, or has paid in full for the applicable policy period, an ID card may be issued for the corresponding policy period. Here are how our respective states’ laws and regulations address the issue:
DELAWARE The insurance ID card is valid for no more than the term stated in the policy, but not to exceed 6 months. However, an insurance ID card may be issued for a 12-month period if the premium has been written on an annual basis and the premium: • is being paid in installments of no more than for a 12-month period or • has been paid in full for the 12month period. This applies to insurance ID cards for personal and commercial lines coverage.
(See 18 Del. Administrative Code Section 606, and 18 Del.Code Section 2118(o))
MARYLAND The insurance ID card is valid only for the period for which the insured paid for motor vehicle liability insurance coverage. However, if the insured is on an insurersponsored payment plan or has premium financed through a premium finance company, the insurance ID card may be issued for periods of six months.
Ask our experts! Have a question? Rely on our team to find the answer. Contact Don: 800-998-9644 Ext. 603 DonB@IABforME.com IABforME.com
This applies to insurance ID cards for personal and commercial lines, with the exception of buses and taxis. (See MD Code, Insurance Section 19-503.1)
PENNSYLVANIA The insurance ID card (referred to as a “financial responsibility identification card” in the Pennsylvania statute) discloses the period for which the insured paid for coverage. However, where the insured has financed premiums through a premium finance company or is on an insurer-sponsored payment plan, the insurance ID card may be issued for periods of six months. State regulation forbids an insurance ID card from being valid for more than one year from the effective date. This applies to insurance ID cards for personal and commercial lines coverage. (See 75 Pa.C.S.A. Section 1782, and 31 Pa.Code Section 67.24)
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PREVENTING ERRORS & OMISSIONS
HOW STRONG IS YOUR FOCUS ON TRAINING? By Curt Pearsall, CPCU, AIAF, CPIA
L
et me ask you a couple of questions....
Five years from now, how many of the current agency staff will have retired? Where will your agency find qualified people to replace and train them? In addition, as the agency grows in volume, there is a good chance that additional staff will be needed to fill the necessary job responsibilities. How will you train those new staff? As we all know, learning insurance and its various nuances is not easy and definitely takes time. There is a good chance today that many agencies have internal and sales staff that don’t know
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insurance to the degree they should. Since agency staff can be held accountable for what they say, this presents a very scary picture. In fact, when some E&O carriers look at their statistics that are driving E&O frequency, lack of sufficient product knowledge is high on the list. Clearly, agencies need to have a solid focus on training to ensure their staff know the products they are selling. There are a variety of approaches to the training of sales staff on the various technical elements of insurance. A key issue is that someone in the agency clearly needs to “own” this issue. This person needs to do the proper evaluation and develop a
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When some E&O carriers look at their statistics that are driving E&O frequency, lack of sufficient product knowledge is high on the list. — Curt Pearsall
ON-SITE TRAINING GET YOUR team up to speed with on-site training. IA&B can bring any course directly to your office. In fact, you can tailor the topic to address the specific needs of your organization. Here’s what you can expect from IA&B’s in-house training: • A faculty member who’ll deliver quality training • A course outline that becomes a valuable reference tool
structure that provides the training to the needed areas. The evaluation could be done using a test or possibly a mock sales presentation where the staff are asked various questions on specific coverages. Some additional approaches to consider:
• The team-building benefit of having employees train together
• Weekly classroom environment where a specific type of coverage / type of business is discussed and the exposures dissected. Consider asking your carriers if they can help.
To learn more, contact IA&B Events Manager Alane Fagan.
• Your state agents’ association. They may have some training scheduled on various topics or could possibly at least recommend someone if needed.
• A customized program tailored for your own agency’s needs
Alane Fagan Events Manager 800-998-9644 Ext. 512
• Training organizations such as the Institute or the National Alliance. Bottom line, training of staff needs to be a key issue within every agency. Hopefully this will result in staff knowledgeable on the coverage they are selling, but it should also minimize the potential for your agency to face an E&O claim.
Curt Pearsall, CPCU, AIAF, CPIA, penned this article. He is a consultant and national expert on errors and omissions for insurance agencies. Pearsall Associates Inc. specializes in E&O risk management and loss control by working with agencies to develop a “culture of E&O prevention” by understanding areas of potential liability and improving the focus on E&O loss control. He also provides expert witness services to law firms for E&O claims and litigation.
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COVERAGE CORNER
ADDITIONAL INSURED ENDORSEMENTS: THE PROBLEMS CONTINUE By Jerry M. Milton, CIC
T
he Dormitory Authority of New York (DASNY) managed a construction project in New York City. As part of the project, DASNY contracted with Gilbane Building Co./TDX Construction Corp., a joint venture (JV) to act as the construction manager. The contract between DASNY and JV required that all prime contractors retained by DASNY name the construction manager as an additional insured under their liability policies.
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DASNY contracted separately with Samson Construction Co. to be the prime contractor for all foundation and excavation work. Samson agreed to name the construction manager as an additional insured on its Commercial General Liability (CGL) policy. The CGL, issued by Liberty Insurance Underwriters (Liberty), included the following additional insured endorsement: WHO IS AN INSURED (Section II) is amended to include any person or organization with whom you have
AUGUST 2018
agreed to add as an additional insured by written contract but only with respect as an insured to liability arising out of your operations or premises owned by or rented to you. Samson’s work at the job site allegedly caused property damage to adjacent buildings. DASNY filed a suit against Samson and the architect. The architect filed a third-party The JV, Gilbane and TDX, sought coverage as additional insureds under the Liberty based on
Samson’s contract with DASNY. Liberty denied coverage, arguing that its additional insured endorsement required direct contractual privity with Samson, the named insured. The JV, Gilbane and TDX, brought a declaratory judgment action against Liberty. Liberty moved for summary judgment. The trial court denied Liberty’s motion finding that the DASNY-Samson written contract provided the JV, Gilbane and TDX, additional insured status as required by the endorsement. On appeal, the New York Supreme Court, Appellate Division, First Department reversed the trial court’s decision, holding that the additional insured endorsement “clearly and unambiguously requires the named insured execute a contract with the party seeking coverage as an additional insured.” The court focused on the phrase “with whom” in the endorsement and therefore Liberty was not obligated to provide additional insured coverage to any entity “with whom” Samson had not contracted directly. This decision reinforces New York law that the policy language controls entitlement to additional insured coverage, rather than the contract. Many blanket additional insured endorsements provide coverage for the additional insured only if the named insured entered into a written contract directly with that additional insured. For example, the Additional Insured – Owners, Lessees Or Contractors – Automatic Status When Required In Construction Agreement With You (CG 20 33) endorsement reads as follows:
operations when you and such person or organization have agreed in writing in a contract or agreement that such person or organization be added as an additional insured…. The Additional Insured – Owners, Lessees Or Contractors – Automatic Status For Other Parties When Required In Written Construction Agreement (CG 20 38) endorsement adds the following wording to Who Is An Insured: 2. Any other person or organization you are required to add as an additional insured under the contract or agreement described in Paragraph 1. above. The New York decision is similar to other court decisions. These courts are saying that the written contract between the named insured and the other person or organization does not make that other person or an organization an additional insured unless specifically stated in the insurance policy. The CG 20 38 address this problem. The CG 20 33 does not. Y’all take care!
WHAT’S THE VERDICT? LEARN THE latest on the issues that contractors and other insureds face in today’s ever-changing insurance environment – and how case law in different jurisdictions affects the outcome of coverage issues. This fall’s special topic seminar, “What’s the Verdict? Construction Issues & Court Cases,” will cover court cases, claim scenarios, and case studies. Topics include: • When is an occurrence not an occurrence? • Damage to your work • Damage to your product • DNA profiling • Allocations of losses • CGL occurrence and aggregate limits • Pollution coverage Oct. 24 | Baltimore, MD Nov. 27 | Ft. Washington, PA
Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He also serves as our education consultant, working with our CISR, CIC and continuing education programs. Catch him at one of our upcoming seminars: IABforME.com/education.
Dec. 3 | Pittsburgh, PA Dec. 4 | Mechanicsburg, PA
To register or ask questions, contact us: 800-998-9644, option 1 IAB@IABforME.com IABforME.com/SpecialTopics
Section II – Who Is An Insured is amended to include as an additional insured any person or organization for whom you are performing
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CLARIFYING THE ADJUSTER AND CONTRACTOR ROLES The Department of Insurance (DOI) wants to educate consumers on the role of adjusters in the claim process … and is looking for carriers to help. The DOI recently released a bulletin that encourages carriers to: • Develop disclosures and other policyholder-communication materials about adjusters • Use company and independent adjusters who are trained to explain how their services compare to a public adjuster’s services • Verify the license of those acting as public adjusters
TALKING SHOP WITH DEPUTY INSURANCE COMMISSIONER MERCED, STATE LEGISLATORS Our IA&B Advocacy team was in Dover in late June to build new relationships and solidify long-standing ones to lay the groundwork for continued advocacy. We started by meeting with newly appointed Deputy Insurance Commissioner Tanisha Merced, Esq. Merced replaces Mitch Crane, who left the Department of Insurance (DOI) in February. During the meeting, we were able to learn more about the deputy commissioner’s background as a deputy attorney general at the Delaware Department of Justice and as first assistant county attorney for New Castle County. In addition, we were able to introduce her to IA&B, explain the priorities and concerns of our member agents, and discuss how we can work together with the DOI on initiatives moving forward.
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Later, our team met with our new Doverbased lobbyist, Scott Kidner, of C.S. Kidner Associates, and headed to a busy Legislative Hall where the Delaware General Assembly was working hastily to wrap up its two-year legislative session. Along the way, we stopped in for a visit with Rep. Danny Short, House Minority Leader and fellow independent agent, as well as IA&B-friend Rep. Bryon Short, chair of the House Economic Development, Banking, Insurance Committee, who is not running for re-election this year.
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• Communicate with their sales, marketing, and distribution teams about the role of adjusters in the claims process • Be aware of potentially fraudulent activities that may arise during a claim The bulletin goes on to reiterate the rules and regulations for those who do and do not hold a Delaware public adjuster license.
STATE NEWS
HELP CUSTOMERS COORDINATE CONDO COVERAGE
NEIGHBORING NEWS: FALLOUT FROM MARYLAND FLOODING
Thanks to its urban centers and coastal towns, Delaware boasts a high percentage of condominiums. However, coordinating insurance coverage between a condo unit and association can confuse even the most savvy insurance consumers.
Maryland Insurance Commissioner Al Redmer Jr. is urging producers and carriers to offer adequate coverages in light of consumer complaints following recent flooding. Redmer issued two bulletins on the subject:
Rely on our newest consumer education piece to answer their frequently asked questions, including:
Bulletin 18-10 addresses the need for producers to offer water/sewer backup coverage and goes on to discuss related coverage-offer and coverage-limit requirements.
• How do I know what to cover for my unit? • What does a condo association’s master policy cover? (“all in” vs. “original specifications” vs. “bare walls”)
Bulletin 18-11 reminds producers to “advise their clients to consider the costs and benefits of flood insurance coverage, regardless of whether their property is located in a flood zone.”
• How do I know how much to insure for?
RELY ON OUR RESOURCES
Educating customers positions you as a trusted insurance advisor, and it could reduce your risk of an errors and omissions claim.
CONSUMER EDUCATION LIBRARY As an IA&B member, you have access to our extensive library of vetted consumer education pieces – including the latest addition on coordinating condo coverage. The information is available as professionally designed, customizable flyers and as raw copy for you to repurpose as you see fit (think: website content, social media posts, etc.). IABforME.com/consumer_education
Educate your customers on their risks and coverage options to stay in the insurance commissioner’s good graces. As a reminder, you have access to our extensive library of vetted consumer education pieces – included one on flood insurance and water/sewer backup coverage. The information is available as professional designed, customizable flyers and as raw copy for you to repurpose as you see fit (think: website content, social media posts, etc.).
OVERCOME PERSONAL LINES QUANDARIES Learn how to avoid personal lines coverage traps by attending our special topic seminar, I Screwed Up and My Insured is Toast. This 8-credit class covers the latest coverage concerns, including drones, house rentals, self-employment, ride sharing, and more. Oct. 12 – Newark, DE Register Today 800-998-9644, option 1 IABforME.com/SpecialTopics
WELCOME NEW MEMBERS PEOPLEFIRST INSURANCE INC. Middletown, DE
IABforME.com/consumer_education Also be sure to document conversations you have with your customers. Our sample Flood Insurance Notification and/ or Rejection of Coverage form can help. IABforME.com/coverage_issues, select “Flood”
Learn more about membership by contacting IA&B Vice President – Membership Tim Wonder. 800-998-9644 Ext. 351 TimW@IABforME.com IABforME.com/membership
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PARTNERS PROGRAM
& through IA&B’s Partners Program.
Supporting Connecting
2018 Partners
ELEVATING AGENTS
Program
Offering sincere thanks Among the IA&B Partners are the following Platinum-level sponsors.
PLATINUM PARTNERS ACUITY Agency Network Exchange LLC BBSI Chubb Donegal Insurance Group Erie Insurance Group Farmers Mutual Fire Insurance Company of Marble Insurance Agents & Brokers Service Group Millers Mutual Group Penn National Insurance Plymouth Rock Assurance The Main Street America Group
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The IA&B Partners Program allows companies to support and connect with independent insurance agents and brokers in Pennsylvania, Maryland and Delaware. Through their sponsorship, Partner companies allow IA&B to offer the programs and services that help member agencies succeed.
CALLING ALL COMPANIES Your support helps independent agents succeed and their agencies become more profitable — a win for your company and the independent agency channel. What’s more, you will find more value than ever before from our revamped Partners Program. Learn more by visiting IABforME.com/Partners or by contacting Jess McWilliams at 800-998-9644, ext. 503, or JessicaM@IABforME.com.
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PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes The Main Street American Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the hightest level of sponsorship to our organization.
PLATINUM PARTNER
Jonathan Spacher Northeast Region President
NGM Insurance Company — we partner with 3,000 independent agents to provide superior, personal service to over 600,000 policyholders.
FOCUSED ON RESULTS FEATURED PARTNER
The Main Street America Group
CHIEF EXECUTIVE OFFICER Tom Van Berkel, Chairman President and CEO
CORPORATE HEADQUARTERS Jacksonville, Florida
Northeast Region Headquarters Syracuse, New York
Northeast Region President Jonathan Spacher
Northeast Region Sales Director John Hwilka
Northeast Region Field Representatives Jeanine Ferritor (Maryland/Delaware) Renee Tolerico (Eastern Pennsylvania) Martin Kyper (Central Pennsylvania) Dave Roshala (Western Pennsylvania)
Northeast Region Markets
Delaware, Maryland, New York, Pennsylvania
A.M. BEST RATING
Financial Strength: “A” (Excellent) Issuer Credit Ratings: “a+”
The Main Street America Group’s rich history began 95 years ago when we formed our company to serve the insurance needs of Grange fraternity members. Today, Main Street America’s affiliated insurance companies provide a full line of competitively priced personal lines and commercial lines products and services to individuals, families and small businesses in 37 states, and fidelity and surety bond products in 47 states and the District of Columbia. We annually write more than $1 billion in premium, have surplus of over $1 billion and more than $2.6 billion in total assets. Through our eight “A” rated property and casualty writing companies — including our largest carrier,
As the founding company partner of the Trusted Choice® brand, Main Street America is fully committed to the independent agent distribution channel. We strive to meet the needs of our customers (agents), and our customers’ customers (policyholders), better then anyone else in the market. We are also a founding company partner of the TrustedChoice.com consumer agent portal and the Insurance Institute for Business & Home Safety (IBHS) Research Center. To become our customer and represent Main Street America in your market, please visit msagroup.com and click on the “Become a Main Street America Agent” link. ** A.M. Best’s rating of “A” (Excellent”) applies to The Main Street America Group and its eight affiliated writing companies. Ratings listed herein are as of most recent re-affirmation date, are used with permission of A.M. Best, and are subject to changes by the rating service, For more information about ratings, please access www.ambest.com
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AUGUST 2018
CHARTING YOUR COURSE(S) CAREER ADVICE FOR YOUNG AGENTS By John V. Dormuth, MSIM, CPCU, ARM
Welcome to the insurance industry. Now what? On the following pages, John Dormuth – new IA&B faculty and director of industry relations for Temple University’s Department of Risk, Insurance and Healthcare Management – offers words of wisdom on charting your path and advancing your career.
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S
o, you’ve landed. You’re now working at a professional services firm – an insurance agency! Congratulations. You’ve entered a terrific field, one where you’ll be tested, brought into real personal/business scenarios, and trusted with valuable information. One where you can perform challenging, honest, and fulfilling work. Where you will make a difference to your customers. Whether you’ve joined the family business, an agency in your home town, one in a large city, out of state or across the country, as someone early in an insurance career, you will be confronted with decisions that will come at you like Usain Bolt rounding the turn in the 200 meters at the 2016 Olympics. In most cases, the first objective will be to become legal by obtaining your producer’s license. While there are numerous tasks that still can be performed in an agency without a license, it’s a requirement to get into the real work. So, following the direction of your firm, take the required path to securing your profession’s license.
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Approach your continuing education strategically. Knowing that a producer’s license requires CE credits, use it as an opportunity to pursue a formal professional designation in tandem.
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— John Dormuth
While you’re coming to the office each day and learning just what it means to be an insurance agent, and studying for your licensing exam on the side, the realization will become readily apparent that you also need a strategy to gain traction in producing business for the firm. Perhaps your agency has a training or orientation program. Maybe you’re assigned to work with a senior colleague for mentoring, learning the ropes and in support of their book of business. Whatever the case, you will soon find that there is more than enough on-the-job training or formal learning to have you pretty cooked by the end of each day. Additionally, our industry has this incredible phenomenon wherein the calendar is looked at from months ahead and then, in time warp fashion, the dates are here before you can blink. Welcome to life led in large part by your customer’s expirations dates…. Not to mention a number of scenarios that can arise throughout the policy year, such as unexpected competition, losses and claims, financial matters, and mergers & acquisitions, to name just a few. At the same time, undoubtedly you will be presented with your specific, measureable, time-specific production goals to allow you to deliver value to the firm and, in turn of course, to you. Confronted with this reality and your need to make an impact, you will be met with the prospect of continuing education, both to retain your license and to allow you to gain additional technical insurance knowledge. Once you pass your exam, your email and snail mail will “hit the jackpot” with continuous and innumerable opportunities to attend seminars, online, self-study, expedited programs, you name it. It’s certainly safe to say that our industry is chock-full of avenues to keep up with the credits required to maintain a license. Beyond this, inevitably a supervisor, manager, mentor, or other colleague will present you with the curriculum provided by the National Alliance, Insurance Institutes, or other reputable insurance designation curriculum to enhance technical insurance learning and to work toward the prospect of adding some letters behind your name. (With some planning you may well earn yourself and your significant other the opportunity to enjoy an agency-paid trip to a conferment ceremony in a choice location. Now that’s a good motivator.)
agencies will cover the costs of continuing education). But if you’ve read this article this far, you probably realize that the insurance industry is a fantastic field and provides enumerable opportunities to display your professionalism and interests. So with that, the first question you need to answer is: “Am I going to invest in myself and my career?” This industry rewards those who invest in themselves. If your answer is “yes,” read on. Be reminded that education in any form – whether it be a full-on degree, certificate of some kind, or formal professional designation – is knowledge you’ve earned, and it cannot be taken away once secured. Not from a change in roles/responsibilities, change in employers, merger/acquisition of a company, downsize/right-size situations. It is your personal asset. Given all of this, I’d like to suggest that you approach your continuing education strategically. Knowing that holding a producer’s license requires continuing education credits, use it as an opportunity to pursue a formal professional designation in tandem. Also, some programs require regular refresher courses be taken to maintain a professional designation. And you earn continuing credits from those courses as well. You’ll need a “reason” to keep you motivated. This will help guide you through the hours of study and sacrifice you make as
You Worked Hard to Build Your Agency. IA&B will Protect It. IA&B Offers Coverage that Agents Need. Contact us today. For personalized service, CONTACT DAVID WERTZ 800-998-9644 ext. 506 DavidW@IABforME.com IABforME.com/agency_insurance
“With all the other things going on in my life right now,” asks the young agent, “how can I possibly fit in classes – online, self-study, classroom, or otherwise? Admittedly, it will take effort, time, and perhaps some up-front funds to accomplish any designation program (although many
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you invest in yourself. Partner with a colleague, shoot for that conferment trip, imagine the degree hanging on your office wall or those cherished letters bolstering your business card or professional profile (LinkedIn). Find the motivator that works for you. Which curriculum or designation to pursue can also be a difficult decision. I suggest looking to either of the national providers: The National Alliance offers the CISR, CIC, and CRM designations, and The Institutes offers the CPCU, ARM, ARe, AIC, AU, AAI, and AINS designations. Information can be obtained from either organization’s website. Think about what you’ve been exposed to in the industry thus far, your current position, and a position you aspire to.
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Where do you see yourself in the future? Talk with someone who has earned a certain designation and whose opinion you respect about what he or she suggests. Then take on the challenge and investment in yourself! Set goals and milestones, and allow for celebrations as you go. And while there could be setbacks – an exam to repeat, life’s inevitable occurrences, or what have you – vow to keep a long view. Each exam that you pass is one less you will need to study for. One step closer to meeting your goal. And another motivator to keep at it. Chart your course, and stay true to it until the end. You’ll be so glad you did. All the best in your pursuits!
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John V. Dormuth, MSIM, CPCU, ARM, is IA&B faculty, as well as director of industry relations for the Temple University, Fox School of Business Department of Risk, Insurance and Healthcare Management. He has been a licensed insurance producer since 1997, most recently employed as vice president/principal for McConkey Insurance & Benefits. Look to IA&B for award-winning professional training offerings – including licensing exam preparation, introductory training, professional designations, and more. Visit IABforME.com/education.
TECHNOLOGY UPDATE
HOW TO PUT YOUNG AGENTS ON THE PATH TO SUCCESS 18
AUGUST 2018
By and large, Millennials are seeking meaningful careers with the opportunity for growth. Is your agency meeting young agents’ needs?
W
hen you think of Millennials, “traditional” probably isn’t the first word that comes to mind. Heck, it probably isn’t in the top 10. After all, this generation collectively has shunned standard young adulthood rites of passage, from getting married to buying homes (and even cars). However, these 20- and 30-somethings may surprise you. Just because their priorities are different from those of the generations which came before them doesn’t mean they lack ambition. In fact, when it comes to their careers, Millennials tend to be hyperfocused on their professional growth.
MILLENNIALS’ MINDSET Recent Gallup research found that “a full 87 percent of millennials say professional development or career growth opportunities are very important to them in a job” (How Millennials Want to Work and Live, 2016). The research went on to show that Millennials – significantly more so than Gen Xers or Baby Boomers – ranked “the opportunity to learn and grow” as “extremely important” when considering a new job. This aligns with what IA&B hears. This spring, we queried the young agents on our IA&B Futures Task Force, who reported a strong desire for skills training and career growth: “I wish I had more formal sales training. Mastering coverages and products is difficult, but the true art form comes in being a good saleswoman.” “As a young agent who is excited about all of the changes happening in the insurance industry, I constantly want to read, learn, connect, attend anything I possibly can.” “Effective sales is 50 percent of our business, yet we rarely ever train on it.”
CAREER & TRAINING PATHS For agency principals, this intel is a gold mine. It presents opportunities to attract and retain young talent by meeting their
needs – providing them with training opportunities and offering them support and direction. Look to IA&B’s training paths to help steer young agents’ professional growth. Specifically for producers, IA&B outlines a path of suggested coursework: • Pre-licensing, introductory training (IABforME.com/ IntroTraining) • On-demand Quoting, Writing, & Servicing programs designed for newly licensed producers (IABforME.com/ NewLicensee) • Sales-skills training through the CPIA designation program (IABforME.com/CPIA) and Futures Conference (IABforME.com/FuturesConference) By and large, Millennial workers are looking for careers with advancement opportunities. Giving them the skills they need to succeed as insurance producers keeps them engaged, plus it supports your agency’s bottom line. And that’s a path that everyone wants to go down.
2018 IA&B FUTURES CONFERENCE REGISTER TODAY for the ultimate conference for young independent insurance agents. Nothing beats getting face time with colleagues, trainers, and mentors. Sept. 25-26 Omni Bedford Springs Resort Bedford, PA Register by Aug. 15 for the best rates: IA&B member: $299 | Non-member: $379 Register after Aug. 15: IA&B members: $329 | Non-members: $409 IABforME.com/FuturesConference
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TECHNOLOGY UPDATE
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AUGUST 2018
MOST UNDERUTILIZED AGENCY MANAGEMENT SYSTEM FUNCTIONS By Steve Anderson
An agency management system is the largest technology expense for virtually any agency regardless of the particular vendor or platform. When well managed, these systems will help an agency maximize internal productivity and provide a better customer experience. Unfortunately, all too often these systems are not used to their full capacity.
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TECHNOLOGY UPDATE
THINKING ABOUT A NEW AGENCY MANAGEMENT SYSTEM? TAKE A guided tour through platforms without leaving your home or office. Register for the Agency Management System E-Summit.
A
gency management systems are complicated. Learning how to use all of the functionality provided takes time and effort. I’ve had the opportunity to visit many agencies and spend time watching how CSAs do their work. I seldom meet people who don’t want to improve what they do and how they do it. Following are some of the most common underutilized functions in an agency management system.
IA&B members receive a discount on registration: $249 (as opposed to $349). The e-summit includes:
PROPOSALS AND TEMPLATES For those systems that have an integrated proposal and/ or template capability, staff often does not fully utilize the merge functions. This “mail merge” function allows common boilerplate content to be automatically inserted into correspondence. Proposals can be generated that include policy information merged from the client record. When merge templates are not well-defined, staff has to take time to edit and change the merged document. A lot of time is wasted by individuals editing single letters or proposals. This is especially problematic when proposals are created from the system. How many times have you had to completely redo a proposal because the merged document was not correct? Instead of editing each letter after it is merged, taking the time to make sure template letters, proposals, and summary of
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Selecting the best agency management system for your business is a critical decision that can affect productivity and profits. If you’re thinking about a new system – whether now or in the future – this virtual summit is for you. Created by Steve Anderson, the e-summit is a webinar series that allows insurance agencies to investigate over two dozen different platforms.
• An online assessment to determine need for a new platform • Access to Steve Anderson’s Agency System Selection Digital Course • Recordings of nearly 20 vendor demo videos and direct contact info for follow-up Learn more or register by visiting the IA&B website. For questions, contact Steve Anderson directly. IABforME.com/AMS_selection Steve Anderson 615-599-0085 steve@steveanderson.com
AUGUST 2018
insurance are set-up correctly will save time and increase staff productivity. Create a process where agency staff can notify the person who can change the template what needs to be changed.
CARRIER MARKETING Many agency management systems have a module that will track carrier marketing activities. Tracking carrierspecific information about submissions will provide agency management with valuable information. Knowing the number of submissions, declines to quote, quoted but not sold, and quoted and sold for each insurance company the agency does business with provides management with valuable information. Insurance companies track this information. You should, too.
CARRIER COMMUNICATION This also goes by the name of download and real-time. Fully using all of the upload/download/real time functions available to the agency continues to be a challenge. Improvements are constantly being made in the number of insurance companies implementing these functions. The agency should make sure they are fully using all carrier communications capabilities available. Every keystroke saved is an increase in productivity and profitability. Any agency that has an IVANS account (a mailbox) can request a customized report specifically generated for the agency. The report lists the insurance companies with whom the agency has an existing download relationship. Included for each insurance company are all of the current capabilities and the amount of transactions being used by agency staff for each type.
committed to mutual success. Harford Mutual Insurance partners with independent agents in Delaware. We insure restaurants, contractors, mercantile, and other commercial entities. We’re committed to protecting your client’s business and building yours.
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This report will provide agency management with a real-time picture
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TECHNOLOGY UPDATE
into the functions currently being used in the agency. One agency manager I spoke with requests this report quarterly so he can make sure the agency is maximizing the available productivity benefits. Full details on how to request the report is available here: http:// techtips.steveanderson.com/2014/11/13/ maximize-carrier-communicationoptions-with-ivans/
ENSURING ACCURATE DATA Agency management systems provide places (fields) to store a tremendous amount of information about clients and prospects. I audit a lot of agency system databases and find that many agencies do not have quality data. Incomplete data and/or inaccurate data impacts agency
productivity. We recommend agencies audit their system database to make sure the data being entered into your system is complete and accurate. If the basic information within the agency database is not accurate and consistent, then any reports generated from the bad data will not be very useful. Agency owners complain to me a lot that they are not able to obtain the information out their system they need to effectively manage the agency. Often the problem can be traced to bad data.
REPORTS Many agencies continue to use the standard reports included with their management system. You should explore
additional report that might be available to help you better manage your agency. One example is monthly production reports. Agencies often use some other means (like an Excel spreadsheet) to track new business and monthly commissions. You should be able to pull this information directly from your management system and eliminate the redundant data entry. Many reports can now be exported from the management system directly into spreadsheets for specific analysis. Several years ago, if you didn’t like a report, you were stuck with it – no customization. Many systems now provide report writing functionality,
BUILDING LIFECYCLE (BUILDERS RISK)
one insurance policy for the entire life of your new building.
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Contact Scott Billett, Underwriting Leader, at 717-237-7202 or sbillett@millersinsurance.com 800.745.4555 millersinsurance.com
With our Building Lifecycle product, agents will no longer need to cancel a builders risk policy and write coverage to a new BOP upon completion of construction.
Rated A- (Excellent) by A.M. Best Rated A Prime (Unsurpassed) with Demotech ©2018, Millers Mutual Insurance, Harrisburg, PA
BUSINESS OWNERS POLICY | COMMERCIAL UMBRELLA | EMPLOYMENT PRACTICES LIABILITY
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AUGUST 2018
There when it matters most. for
Independent Agencies
When it comes to the independent agency system, Donegal is all in! Donegal remains 100% committed to using the independent agency system exclusively to sell our products. As an independent agency we realize you have lots of choices when it comes to recommending commercial and personal insurance coverage options for your clients. That’s why Donegal delivers competitively priced insurance products and outstanding claims service. In addition, agencies appreciate our timely underwriting and superior technology that makes quoting and issuing Donegal policies easy. Plus, Donegal’s total compensation package is recognized as one of the best in the industry. A 100% commitment to the independent agency system, another way Donegal is “There When It Matters Most” for independent insurance agencies. To learn more visit donegalgroup.com or call Bill Anderson at 1-800-877-0600.
DonegalGroup.com25
TECHNOLOGY UPDATE
which allows you to more easily create custom reports. Make sure you understand the report options that are available within your system and how you can use these options to create custom reports.
3) Utilize user group information. Connect with other users of your system and ask what their top three new features are and how they use them.
STEPS TO MAXIMIZE YOUR SYSTEM
4) Create a reward program to encourage staff to come up with new ideas or better ways to improve productivity and the client experience.
1) Inventory all of the processes you currently have in your agency. You may not realize the workarounds created in the past to solve a problem that are no longer needed. 2) Research what’s actually available within your system today. Vendors are constantly adding new functionality, so make sure you know what you already have that you could be using but are not.
Hopefully this article has given you some ideas on areas in your particular agency management system you should explore to make sure your staff is getting the full benefit of your investment.
Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/or reduce expenses. He speaks professionally to hundreds of agents each year at National Alliance events and at many state association conventions and technology forums. He is also the author of articles that have appeared in nearly every insurance industry publication. Learn more at steveanderson.com.
FUELING THE FUTURE. Join us for the ultimate conference for young, independent insurance agents. WHEN > > >
September 25 - 26, 2018
WHERE > > > Omni Bedford Springs Resort Bedford, PA
CONFERENCE SKILLS 26
DETAILS > > > For more information on the awesome agenda full of high-energy speakers, gorgeous resort, and golf: IABforME.com/FuturesConference 800-998-9644, option 1
SΑLES AUGUST 2018
SOCIΑL
Get social with IA&B to keep up with the latest industry happenings. Find us at Facebook.com/IABforME, Linkedin.com/company/IA_and_B, and Twitter.com/IA_and_B.
PICS & POSTS
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Education
CLASSIFIED
AUGUST 2018
ADVERTISEMENTS SOUTHEAST PA PRODUCERS & AGENCIES
CLASSROOM DATE TOPIC CIC Commercial Casualty Institute August 1 August 1 CISR Personal Residential August 2 CISR Agency Operations James K. Ruble Graduate Seminar August 6 Property & Casualty Licensing Study Course August 7 CISR Commercial Casualty II August 8 Grilled Cheese, Beer & Insurance (Food & Drink) August 9 August 10 Grilled Cheese, Beer & Insurance (Food & Drink) August 14 James K. Ruble Graduate Seminar August 15 CISR Life & Health Essentials August 15 James K. Ruble Graduate Seminar August 16 E&O Risk Mgmt: Meeting the Challenge of Change August 21 Property & Casualty Licensing Study Course August 28 Life & Health Licensing Study Course
LOCATION King of Prussia, PA Allentown, PA Mechanicsburg, PA Hershey, PA Mechanicsburg, PA Baltimore, MD Pittsburgh, PA Ellicott City, MD Erie, PA Hagerstown, MD Ellicott City, MD Erie, PA Cranberry Twp., PA Mechanicsburg, PA
WEBINARS DATE TOPIC August 1 Innovations in Long-Term Care Funding Contractors, Contractors, Contractors August 8 Certificates of Insurance/Additional Insureds August 9 August 9 Health & Disability Insurance August 14 Farm Liability Considerations August 15 Bonding: Or How Our Insured Went Bankrupt August 16 Mastering Medicare & Social Security August 21 Cyber Insurance August 22 The New ISO Personal Auto Policy August 23 E&O Road Map (Part 1 & 2)
TIME 9 AM-Noon 1-4 PM 9 AM-Noon 1-4 PM 1-4 PM 1-4 PM 1-4 PM 2-5 PM 1-4 PM 9 AM-4 PM
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AD INDEX AmTrust of North America.............................17 Applied Underwriters.................................OBC Berkshire Hathaway Guard Ins Cos.............. 16 Donegal Ins Group......................................... 25 Grinnell Mutual Reinsurance Co................. IFC
w/break Noon-1 p.m.
Harford Mutual Insurance Co........................23
August 28 August 30
1-4 PM 1-4 PM
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Excess & Umbrella Fundamentals On Ethics: Data, Dilemmas & Knuckleheads
IA&B Futures Conference............................. 26
To register or ask questions, contact us: 800-998-9644, option 1 | IAB@IABforME.com IABforME.com/education 28
AUGUST 2018
Millers Mutual Group.................................... 24 PennPRIME....................................................IBC Preferred Property Program.......................IBC
IT’S WORTH ASKING
NO QUESTION IS TOO SMALL. IT COULD MEAN THE DIFFERENCE BETWEEN A LAWSUIT AND SAVING YOUR COMMUNITY THOUSANDS OF DOLLARS.
Whether you are implementing a new policy, putting a new procedure in place, or starting a construction project, it’s worth reviewing every angle. So before you act, your first stop should be PennPRIME. Not only do we provide the insurance coverages you need, but also the reassuring services that come with membership, like the Employee Law Legal Counseling Program and Construction Contract Reviews.
We offer guidance on reducing the risk to your entity from the very beginning of your projects. Don’t have a claim be your second act. Asking PennPRIME should be the first. It’s worth the call.
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A Service Program of the Pennsylvania Municipal League
Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.
©2018 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.