Primary Agent - December 2023

DECEMBER 2023

MEET IA&B CHAIR OF THE BOARD

SARAH BROWN EXCLUSIVE MEMBER MAGAZINE

ALSO INSIDE NEW IA&B VOLUNTEER LEADERS YOUNG AGENT CONFERENCE HIGHLIGHTS

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DECEMBER 2023

CONTENTS FEATURED 8 15 21

JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B

Q&A WITH SARAH BROWN Hear from new IA&B Service Group Chair Sarah Brown. She shares her take on the biggest challenge facing independent agents – and how working together can benefit us all.

MEET OUR NEW VOLUNTEER LEADERS Introducing the newest directors on the IA&B Board – Lisa Parry Becker, Debra McAfee, and David Rivell.

YOUNG AGENT CONFERENCE HIGHLIGHTS Check out photos from the IA&B Young Agent Conference, held Oct. 3-4 in Lancaster, PA.

MONTHLY

Twitter.com/IA_and_B YouTube.com/@IA_and_B IA&B Podcasts can be found at:

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, 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2023-12, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2023. All rights reserved. No material December 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.

2 PRESIDENT’S MESSAGE 3 CLAIRE-IFICATION 4 COVERAGE CORNER 6 NEWS & NOTES 21 UPCOMING EDUCATION IABforME.com |

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PRESIDENT’S MESSAGE

REFLECTIONS ON A SUCCESSFUL YEAR As we approach the year’s end, it’s good to reflect on accomplishments, while also looking to upcoming initiatives.

For IA&B, 2023 was a year of gatherings. We tested the waters with a return to in-person conferences, and even we were surprised by the turnout. From our first Women’s Conference in the spring, to the return of our Young Agent Conference this fall (see photos on page 19), you showed up! Both conferences sold out, and they were great successes. Attendees gained valuable knowledge from superb speakers, but just as important, networked with fellow agents and IA&B staff. They were energizing, educational, and fun events – and they will continue in 2024.

INSURANCE AGENTS & BROKERS 650 Wilson Lane, Suite 200 Mechanicsburg, PA 17055 191 Main Street, Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS OFFICERS Sarah Brown, CIC, CRM, AFIS - Chair Keller Brown Insurance Services | Shrewsbury, PA Andrew Enders, Esq. - Vice Chair Enders | Harrisburg, PA

MEMBERS Lisa Parry Becker, CPIA

Bill Purdy

Greg Bennett

Kent Reynolds, CIC

Kate Dawson, CPIA

David Rivell, CIC, CRM

Len Gieseler, LUTCF

Jason Rodriguez, CIC

Bruce D. Kraft, AAI, CIC

Donna Roper

Debra McAfee

Candace Shoupe, AAI, AIC

Shayne McIntosh, CIC

Bob Smyrl, CIC

JPI Insurance Associates Dillsburg, PA

Robert L. Smyrl, Inc. Hatfield, PA

Chris Miller, CIC

Michael Thomas

Parry Insurance Langhorne, PA

In this issue, you’ll meet our current board of directors, including our new chair of the board. This board likewise gathered during the year, four times in highly strategic meetings meant to provide valuable returns for our members.

The commitment of our board cannot be overstated, and 2023 was a very busy year. We created a long-term strategic plan – a plan that will drive our work (and your member resources) in the coming years.

Famous & Spang Associates Aberdeen, MD

From this plan, we are most excited about our insurance school, which will launch at the end of 2024. As work continues and it begins to take shape, I can tell you that it is going to be a gamechanger. New talent will be coming exclusively to IA&B members.

Arbor Insurance Group Allentown, PA

They say time flies when you are having fun – and 2023 was a blur as we delivered to our members throughout the year. All of us at IA&B wish you and yours a very happy holiday season.

And we look forward to a prosperous 2024.

Until next time,

Ferri Dawson Insurance Murrysville, PA Evans Hauseman & Richard, Inc. Pottstown, PA

McAfee Insurance Agency, LLC Wilmington, DE

Miller Insurance Protection Team Jonestown, PA

Purdy Insurance Agency, Inc. Sunbury, PA Blue Ridge Risk Partners LLC Hagerstown, MD Element Risk Management West Chester, PA Prominent Insurance Svcs Wilmington, DE E K McConkey & Company York, PA CBM Insurance Agency New Castle, DE

Lighthouse Insurance Svcs Gambrills, MD

Michael Papa, CIC, MBA Diversified Insurance Industries, Inc. Hunt Valley, MD

NATIONAL DIRECTORS Jason F. Ernest President & CEO

Mike Ertel (PIA) AP Benefit Advisors, LLC dba The Jacobs Company | Columbia, MD Diana Hornung, CIC (IIABA) IOA National, Inc. | Wilmington, DE

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DECEMBER 2023

Mark Monroe (IIABA) Griffith Insurance, LLP | West Chester, PA

CLAIRE-IFICATION

CLAIRE-IFICATION IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR Are you a member with a question?

Contact Claire to find the answer at 717-918-9202 or ClaireP@IABforME.com.

QUESTION: Can I send a customer his policy in PDF or give him portal access, instead of a paper copy?

ANSWER: Going paperless has become mainstream, and agency staff may not think anything of emailing a policy in PDF or sending an access link. However, issues can occur if statutory conditions or requirements are not met.

When sending a policy via email or making it available through a web portal, the first thing to keep in mind is that doing so is an electronic transaction. As a result, you must make sure you comply with the laws and regulations governing electronic transactions, namely the federal ESIGN and/or the state’s version of the Uniform Electronic Transactions Act. While we are all used to accessing websites, uploading, and downloading on a daily basis and may take these tasks for granted, the laws that govern electronic transactions and electronic delivery – and the requirements they spell out – must be followed for the delivery to be considered complete and valid.

Remember that receipt of the policy is often the first line of defense in an E&O lawsuit when there is a coverage dispute. That’s because the duty to read the policy falls on the insured. However, that defense can only be invoked if the insured received the policy. The ability to prove that policy delivery was

properly executed is therefore critical.

The main issues which are triggered with electronic delivery of a policy are the following: 1. Was disclosure to transact electronically provided and consent secured?

In order to transact electronically, an agency must first provide a disclosure covering specific items and secure consent to do business electronically from the insured. A full resource on the subject and a sample disclosure form are available on IA&B’s website.

If you are using a third-party vendor or platform to deliver the policies, it may be possible to embed the disclosure and consent as part of the process itself. This could be accomplished with a popup box and an “I agree” button. You can inquire with the vendor. If not, you can simply follow the suggestions in IA&B’s online resource to capture the customer’s consent.

2. How is delivery of the documents ascertained and the insured’s duty to read the policy triggered?

When policy access is through a consumer portal rather than via an email attachment, it is important to alert the insured to access his IABforME.com |

or her policy and review it. At this time, we are still not aware of any case law that would shed light on how accessing the policy through a consumer portal affects when the insured is considered to have “received” the policy and, as a result, when the insured’s duty to read the policy is triggered.

Absent any case law, common sense would dictate that the email notifying of policy availability and urging the insured to access the portal could serve as the trigger. A best practice would be to send the email notification as soon as the document is available, and bolster the email by urging the customer to: ▲ read the policy, and ▲ contact the agency immediately with any questions or concerns.

Finally, it is worth mentioning that beyond policy delivery and access, when using electronic communication methods, agency staff need to be mindful of possible restrictions under privacy laws or regulations. When sending an email or attaching a document in PDF that contains personally identifiable Continued on page 7

An audio version of this article is also available as a podcast

3

HOLIDAY PARTIES … ARE YOU COVERED?

By Bill Wilson, CPCU, ARM, AIM, AAM You’re probably familiar with this line from the holiday classic Deck the Halls: “‘Tis the season to be jolly … and adequately insured.” Or something like that. Well, the reality is that few people are thinking about insurance during the holidays (or just about any other time). That’s why we have to do the thinking and the reminding for them, at least when it comes to less obvious loss exposures.

For example, from a property loss standpoint, it’s estimated that over a billion dollars in gift cards will be gifted during the holidays. ISO and most insurer homeowners’ policies view gift cards (what ISO calls 4

“stored value cards”) like money and impose a $200 or similarly low sublimit to covered losses involving these cards. This limit can usually be increased by endorsement and perils can be broadened by using, for example, an ISO HO 00 05 rather than HO 00 03 form. But few insureds know this unless told.

Needless to say, there are many other property loss exposures that increase during the holidays. Christmas tree fires occur primarily in December and January and, perhaps surprisingly, losses are greater in the latter month. While most homeowners’ policies cover fire, from a riskDECEMBER 2023

management standpoint (including life safety), we can prevent the need to use our homeowners’ policies by using artificial trees, properly watering real trees, using proper extension cords, taking trees down promptly after the holidays, etc.

But, one area that is probably most often overlooked involves liability exposures that occur as a result of holiday parties or family gatherings during the holidays. So, while I’m quoting holiday classics, how about this one from my favorite movie of all time, It’s a Wonderful Life: “I was just thinking of a flaming rum punch.

No, it’s not cold enough for that. Not

COVERAGE CORNER nearly cold enough…. Wait a minute … wait a minute … myrrh wine, heavy on the cinnamon and light on the cloves. Now off with you, my lad, and be lively.”

Given our limited column space, let’s focus on one serious exposure illustrated by that holiday movie line – host liquor liability. In addition, let’s limit our discussion to claims that can arise from guests who leave the party or gathering in an inebriated state and injure someone in an auto accident. Are most homeowners hosting these events covered by their personal lines insurance?

In ISO’s 2000 homeowners’ filing, they attempted to tighten the exclusion for the use of motor vehicles, explaining, “We are revising the subject exclusions in response to an increasing number of judicial decisions that have found coverage for vehicle-related incidents.”

Homeowners’ policies largely do not cover the use of vehicles designed for use on public roads.

So, if a homeowner is sued following an accident involving the use of an auto by an inebriated guest, there is probably no coverage under their homeowners’ policy.

However, some courts have found that, if the serving, or failure to monitor the consumption, of alcohol was a separate tort from the negligent operation of an auto, there might be coverage under a homeowners’ policy, despite the more rigorous language in current ISO homeowners’ forms. For this reason, it’s best to file such claims under both homeowners’ and auto policies, and this illustrates why placing both policies with the same insurer is advisable to prevent finger pointing between carriers.

But where the coverage most likely comes from is the homeowners’ personal auto policy … assuming they have one. Under the ISO personal auto policy, “insureds” include “You or a ‘family member’ for the ownership, maintenance or use of any auto or ‘trailer’….” Note the use of the word “any” – the insured does not have to be the party that owns, maintains, or uses the vehicle involved in the accident.

This language provides very broad vicarious liability coverage, but keep in mind that not all auto policies provide coverage as broad as the ISO form.

Finally, while coverage may be found under either or both homeowners’ and auto policies, the limits under those forms are often entirely inadequate for serious auto accidents. This is just one of many reasons why most individuals and families have a significant need for an umbrella policy.

Hopefully your holiday gift to your personal lines customers is an offer to sell them an umbrella policy.

Best wishes for a wonderful holiday season and a prosperous new year!

Bill Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of seven books, including “When Words Collide…Resolving Insurance Coverage and Claims Disputes.” He can be reached at Bill@InsuranceCommentary.com.

STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION Title of Publication: Primary Agent Publication Number: 0274-9025 Date of Filing: September 10, 2023 Number of Issues Printed Annually: 12 Annual Subscription Price: no subscriptions Complete Mailing Address of the Headquarters or General Business Office of Publisher: 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055-4440 Publisher: IA&B Service Group Inc. 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055-4440 Editor: Karen Robison 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055-4440 Owner: IA&B Service Group Inc. 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055-4440 The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes has not changed during the preceding 12 months.

Extent and Nature of Circulation

Avg. No. of Copies Each Issue During Preceding 12 Months

No. Copies of Single Issue Published Nearest to Filing Date

A. Total number of copies

1,283

1,248

1,283

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1,283

1,248

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F. Total Distribution

1,283

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G. Copies not Distributed

20

140

H. Total

1,303

1,388

I. Percent Paid

100%

100%

B. Paid Circulation 1. Mailed Outside-County Paid Subscriptions 2. Mailed In-County Paid Subscriptions 3. Paid Distribution Outside the Mails 4. Paid Distribution by Other Classes of Mail C. Total Paid Distribution D. Free or Nominal Rate Distribution 1. Free or Nominal Rate OutsideCounty Copies 2. Free or Nominal Rate In-County Copies 3. Free or Nominal Rate Copies Mailed 4. Free or Nominal Rate Distribution Outside the Mail E. Total Free or Nominal Rate Distribution

An audio version of this article is also available as a podcast

IABforME.com |

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NEWS & NOTES

DELAWARE CRAB FEAST

MARYLAND’S NEW EIUM OPT-OUT FORM

Thank you to everyone who attended IA&B's Crab Feast in Smyrna, DE. The annual event has become a Delaware insurance community tradition – and certainly one of our favorites!

The new Enhanced Underinsured Motorist (EUIM) selection form will be required for all new personal auto policies in Maryland, effective July 1, 2024. The Maryland Insurance Administration created the form due to the passage of House Bill 128 earlier this year, which establishes EUIM as an opt-out coverage for automobile policies.

During the legislative session, IA&B vigorously lobbied against the passage of HB 128 but was ultimately unsuccessful. However, we did secure two amendments that limit its scope: ▲ The new EUIM requirement only applies to new business issued on or after July 1, 2024. Policy renewals are unaffected. ▲ The requirement will sunset on June 30, 2029, at which point EUIM will return to being an opt-in coverage.

In July, IA&B submitted comments to the MIA on a draft version of the new selection form. The final draft of the form includes several revisions that IA&B requested, including a clearer listing of the options available and a notice to consumers that they may be able to achieve increased protection against uninsured motorists at a lower cost by opting out of EUIM and raising their policy’s liability coverage limit.

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DECEMBER 2023

PENNSYLVANIA EXPERIENCE RATING METHODOLOGY CHANGES Effective April 1, 2024, the Pennsylvania Compensation Rating Bureau (PCRB) will modify its experience rating methodology. The changes are meant to improve the predictive accuracy of the rating plan and to incentivize worker safety. Of note: ▲ Eligibility for experience rating will drop from $10,000 to $5,000 in premiums. ▲ Variable split points will be introduced to act as a per-accident limit for actual primary losses. ▲ Annual caps are changing through a transition period.

According to the PCRB during talks with IA&B, projections show that smaller risks especially are expected to receive markedly higher credibility.

This change is an excellent opportunity to revisit your and your staff’s familiarity with experience rating in general and mod worksheets in particular. Agents understanding the modification may have a competitive edge over those who don’t.

Learn more by attending IA&B's Dec. 13 webinar. Register: IABforME.com/ eventregistrations/?eventId=6744

DELAWARE WC RATES DROP The Delaware Department of Insurance this fall approved the Delaware Compensation Rating Bureau Amended Filing No. 2304, with overall changes of -13.85% in residual market rates and -10.03% in voluntary market loss costs. The filing takes effect Dec. 1, 2023.

DCRB.com

Now part of Harford Mutual Insurance Group, Clearpath Specialty provides specialized Workers’ Compensation coverage to protect your business.

CLAIRE-IFICATION Continued from page 3

information, is the information secured when transmitted electronically? That is a privacy and cybersecurity conversation for another day….

To learn more about the best way to comply with the electronic delivery requirements, visit: IABforME.com/ electronic-transactions This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

IABforME.com |

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Q&A with

SARAH BROWN Sarah Brown, CIC, CRM, AFIS is president & CEO of Keller-Brown Insurance Services, a full-service independent agency in Shrewsbury, PA. She also serves as chair of the IA&B Service Group, the governing arm of the IA&B state associations in Pennsylvania, Maryland, and Delaware. Her two-year term as chair began on Sept. 1, 2023.

Q. How did you get your start in the insurance industry?

A. Have you ever been sitting at home with nothing to do and hoping someone calls to invite you to hang out? And then you get the call and it’s not exactly what you wanted, but it’s better than sitting at home? And when you go out, it turns out to be a much better time than you were expecting? That’s basically my story.

I did not always want a career in insurance, but after graduating and not finding anything for a few months, it was my first ‘big girl’ job. My parents knew of someone who worked for an insurance company and was hiring for a trainee position. I interviewed and got the job. What I liked most was that there was always something to learn and always something to achieve. And that continues through today.

Q. Describe your agency, Keller-Brown Insurance Services.

A. We’re old, and we’re new. We were established in 1899 in Southern York County by my great-great-grandfather, and I’m the fifth generation in my family to run the business. On our backs, we carry nearly 125 years of history, trust, culture, and service to the community. But we face the same uncertainties as everyone else, and that makes us try new things. We embrace change and are constantly finding ways to operate more efficiently, to provide the products and services our customers want when they want them, to be a place where people want to come to work, and to make an impact.

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We have a staff of over 20 people – some who have been with us over 20 years, and before that, some who retired after 37 years. And just this month, we hired our youngest employee, who is from GenZ. We still meet face to face with customers in our building that was constructed in 1853, but we also have a hybrid work environment and can meet virtually with customers or take our laptops to meet anywhere a customer wants. A customer can come to the office to pick up an auto ID card, or they can pull it from their smartphone at 3 in the morning.

Our core values of Family, Integrity, Diligence, and Loyalty do not change … but we’re always questioning how we deploy them to meet the needs of our customers and our staff.

Q. What’s the best thing about being an independent insurance agent?

A. Having something to offer our customers. So many times, our prospects and customers come to us with problems (and it could be anything – price, coverage, service, claims), and because we’re independent, we can almost always help. We don’t have to turn people away. We can listen to their situation and, based on our knowledge of offerings, put together a program that fits their needs and can help.

DECEMBER 2023

ON THE COVER Q. Describe your leadership style.

A. You’d have to ask my team and my peers that question!

And I’d be very curious how they’d respond…. I can say that I’m driven to achieve the next level of success, whatever that may be. So while it’s great to hit goals, sometimes it’s hard to appreciate it because I’m already thinking about what we need to do next.

I like to collaborate. I used to think I had to be the one with all the answers and would get frustrated with myself if someone had a better idea than me. Now, I like to be surrounded by people with different skillsets and stronger skills than I have. I think it makes our team better, and we come up with better, more well-thought-out solutions. I think we can get through any problem or disagreement with trust and mutual respect, so I try to establish that with anyone I work with.

Q. What do you consider the biggest challenge that agents currently face?

A. Recruitment and staffing, technology, sales, evolving customer expectations, the pace of change – these are all challenges. On top of that, we’re in a hard market now.

While that’s challenging on its own, we’re left wondering how the industry will react, what changes will be made, and how it will impact the agent. So with everything we face, the biggest challenge is determining how we need to adapt to remain viable.

Q. How can independent insurance agents work together?

A. We might compete for an account here or there, but we’re all facing the same issues, and those issues are bigger than one prospect or customer.

from across our footprint of Pennsylvania, Maryland, and Delaware. We have representatives from large agencies and startups less than five years old. We have older and younger agents, a pretty good split of male and female. If we’re going to represent independent agents, we need a board made up of people who are dealing with diverse issues.

Q. What is the purpose of the IA&B Board?

A. The purpose of the board is to address the needs of independent agents. That may sound easy, but we’re independent. Our needs are all over the place. We constantly ask, ‘Is this what the independent agent needs?

Does it bring value?’

Q. How does the board support the independent insurance network?

A. We work to address the challenges agents face and to come up with solutions to help them succeed. In 2022, we developed a five-year strategic plan that touches on education, professional development, recruitment into the industry, and technology. IA&B’s vision statement is ‘a thriving independent insurance agent community,’ and so all of the initiatives are aligned with that in mind.

“My AgentPAC contribution ensures my voice is heard.

And it’s vital that our issues are represented.”

- Sarah Brown,President & CEO Keller Brown Insurance Services Shrewsbury, PA

Forming relationships of trust and respect is so beneficial.

It’s helpful to have a network you can reach out to for perspective on an issue. IA&B does a great job of helping to facilitate those relationships, in organizing educational offerings, networking events, and professional development opportunities. Making an effort to show up to these events and to form relationships is an important investment in your career.

Q. Describe the make-up of the IA&B Board of Directors.

A. We’ve been intentional in forming a diverse board, and when I say that, I mean we want a good mix of agents

IABforME.com |

IA&B works on your behalf to ensure that legislators and regulators understand the issues affecting agents.

Contribute today at IABforME.com/political_advocacy

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Thank You, 2023 Partners PLATINUM PARTNERS Acuity Erie Insurance Keystone Millers Mutual Insurance Penn National Insurance Plymouth Rock Assurance

GOLD PARTNERS Chesapeake Employers Insurance Company

Liberty Mutual Small Commercial / State Auto / Safeco

Chubb

MMG Insurance Company

Donegal Insurance Group

Mutual Benefit Group

EMC Insurance Companies

Nationwide Insurance Company

Farmers of Salem

POM Insurance Company

Iroquios Mid-Atlantic Group

Progressive

Interested in becoming a partner? Reach out today.

Tim Wonder, IA&B VP-Membership 717-918-9223 | TimW@IABforME.com

10

DECEMBER 2023

Thank you to these partners for supporting the independent agency network.

SILVER PARTNERS Accident Fund Insurance Company of America AMERISAFE Amwins Program Underwriters Auto-Owners Insurance Company BBSI Berkshire Hathaway GUARD Insurance Companies

Farmers Mutual Insurance Company of Western Pennsylvania First Choice Agents Alliance LLC Forge Insurance

Insurance Company Lititz Mutual Method Insurance Services Millville Mutual Insurance Company Openly

Frederick Mutual Insurance Company

Pie Insurance

Grange Insurance

Renaissance

Grinnell Mutual

Rockwood Casualty Insurance

Branch Insurance

The Hanover Insurance Group

Brethren Mutual Insurance Company

Highview National Insurance

Selective Insurance Company

Illinois Casualty Company

TAPCO Underwriters Inc.

The Insurance Alliance Network

Travelers

Briar Creek Mutual Insurance Company CM Regent Insurance Company

Johnson & Johnson

Cumberland Mutual

Lackawanna Insurance Company

Farmers Mutual Fire Insurance Company of Marble

LCBA Lebanon Valley

SECURA Insurance

Tuscarora Wayne Insurance Company UFG Insurance Westfield Insurance Windsor Mount Joy Mutual Insurance Company

ASSOCIATE MEMBERS Secure24 - ADT

Enter.Net, Inc. IABforME.com |

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2023-2024 IA&B BOARD Lisa Parry Becker, CPIA Parry Insurance Langhorne, PA

Greg Bennett

Famous & Spang Associates Aberdeen, MD

Sarah Brown, CIC, CRM, AFIS IA&B Service Group Chair Keller Brown Insurance Services Shrewsbury, PA

Bruce Kraft, AAI, CIC Arbor Insurance Group Allentown, PA

Kent Reynolds, CIC Blue Ridge Risk Partners Hagerstown, MD

Debra McAfee

McAfee Insurance Agency, LLC Wilmington, DE

Shayne McIntosh, CIC JPI Insurance Associates Dillsburg, PA

David Rivell, CIC, CRM

Element Risk Management West Chester, PA

Bob Smyrl, CIC Robert L. Smyrl, Inc. Hatfield, PA

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Michael Thomas Lighthouse Insurance Services Gambrills, MD DECEMBER 2023

Jason Rodriguez, CIC

Prominent Insurance Services Wilmington, DE

OF DIRECTORS

Kate Dawson, CPIA Ferri Dawson Insurance Group Murrysville, PA

Chris Miller, CIC Miller Insurance Protection Team Jonestown, PA

Andrew Enders, Esq. IA&B Service Group Vice Chair Enders Harrisburg, PA

Michael Papa, CIC, MBA

Len Gieseler , LUTCF Evans Hauseman & Richard, Inc. Pottstown, PA

Bill Purdy Purdy Insurance Agency, Inc. Sunbury, PA

Diversified Insurance Industries, Inc. Hunt Valley, MD

Donna Roper McConkey Insurance & Benefits York, PA

Candace Shoupe, AAI, AIC Clark Baffone & Matthew Insurance Agency New Castle, DE

N AT I O N A L D I R EC T O R S PIA Mike Ertel AP Benefit Advisors, LLC dba The Jacobs Company Columbia, MD

IIABA (DE) Diana Hornung, CIC IOA National, Inc. Wilmington, DE

IIABA (PA) Mark Monroe

Griffith Insurance LLP West Chester, PA

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14

DECEMBER 2023

MEET THE IA&B BOARD’S NEWEST DIRECTORS

Lisa Parry Becker, CPIA Vice President & Agency Owner Parry Insurance Langhorne, PA

Debra McAfee President McAfee Insurance Agency Wilmington, DE

Dave Rivell, CIC, CRM Partner Element Risk Management, based in West Chester, PA with multiple locations

IA&B BOARD MEMBER APPOINTED TO BIG “I” DIVERSITY COUNCIL Congratulations to Jason Rodriguez, CIC on his appointment to the Big “I” Diversity Council. The council is a cooperative industry group working to engage and develop a sustainable diverse independent agency network.

community that can better serve the diverse needs of our clients.”

Rodriguez – an IA&B Board Member and the Managing Partner of IA&B Member Agency Prominent Insurance, in Wilmington, DE – will serve a one-year term on the council.

“Diversity in our industry isn’t just a goal; it’s a necessity,” said Rodriguez.

“By embracing differences and fostering inclusion, we build a stronger, more innovative insurance

IABforME.com |

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$4.4B Combined Premium | 325+ Members | 100+ Carriers & Brokers

More than a network Renaissance offers independent agents in NJ, PA, and NY a differentiated suite of technology and services that drive organic, profitable growth for your insurance agency.

Learn more at Renaissanceins.com

FINANCIAL REPORTS

IA&B FINANCIAL REPORTS INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF ACTIVITIES March 31, 2023

IA&B maintains a strong combined statement of financial position with $12.6 million in assets, $9.3 million in member equity, and no third-party financed debt. Over $649,000 of net operating income is reflected on the combined statement of activity for the fiscal year ended March 31, 2023.

IA&B supports the activities that our members value: effective advocacy, timely compliance resources, and quality education.

We’re over 990 member agencies

IAB OF PA Revenues: Membership Dues Professional Training Events & Member Products Publications Royalties & Commissions Consulting Other Total Revenues

IAB of MD

Combined IAB Associations

DAIAB

310,044 1,035,655 29,009

53,747 179,538 5,027

13,116 43,815 1,227

774,844

134,323

32,783

2,149,552

372,635

90,941

Expenses: Membership Commission Professional Training Events & Member Products Publications Advocacy Corporate & Management Governance Total Expenses

24,239

4,202

1,025

760,797 28,887

131,954 5,010

32,204 1,223

73,790 1,315,166 34,243 2,237,122

12,792 227,922 5,936 387,816

Net Operating Income (Loss)

(87,570)

6,210

IAB Service Group

376,907 1,259,008 35,263 0 941,950 0 0 2,613,128

Intercompany Eliminations (1,615)

132,156 2,633,868 290,555 1,926,835 4,983,414

(20,685) (1,581,734) (1,604,034)

375,292 1,259,008 35,263 111,471 3,575,818 290,555 345,101 5,992,508

3,122 55,625 1,448 94,647

29,466 0 924,955 35,120 0 89,704 1,598,713 41,627 2,719,585

3,282,300 31,403 4,232,733

(1,609,290)

28,430 837,013 922,418 34,343 76,578 89,186 3,282,030 73,030 5,343,028

(15,181)

(3,706)

(106,457)

750,681

5,256

649,480

977

238

7,425 0

(346,601)

(49,091) (129,706) 19,707 157,448 (198,994) (533,102)

(5,256)

23,252 0 (168,570) (129,706) 19,707 157,448 (198,994) (636,039)

217,579

0

13,441

Combined IAB Associations

IAB Service Group

Intercompany Eliminations

2,772,448 0 1,381,166 13,098 0 140,980 2,156,207 6,463,899

1,569,721 289,263 432,846 67,258

0

409,132

Other Income (Expense): Contributions & interest to designated funds Depreciation & amortization Interest & dividends on cash equivalents Gain on sale of property & Equipment Net investment income (loss) Life insurance income Annuity income Deferred compensation expense Income tax benefit (expense) Total Other Income (Expense)

(78,785)

(13,083)

(5,813)

9,117 0 (114,223) 0 0 0 0 (97,681)

Change in Net Assets

(166,355)

(28,264)

(9,519)

(204,138)

7,500

1,300

317

(92,495)

(15,360)

(6,368)

841,675 777 76,578

(1,036) (4,662) (2,537) (1,554)

Combined IAB

(518) (1,598,983)

7,425 (346,601)

14,135 (5,256)

strong across three states.

INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF FINANCIAL POSITION March 31, 2023

Approximately 250 individuals attended 17 IA&B classes and

ASSETS

7,500 individuals logged into 261 webinars during the fiscal year. Additionally, IA&B sells approximately 1,300 policies for insurance coverage of member and nonmember agencies.

This allegiance to IA&B, combined with our carrier partnerships, supports the financial strength

IAB OF PA Cash & Cash Equivalents Cash, Premium Fiduciary Account Accounts Receivable Prepaid Expenses Inventory Inter-corporate Loans, current portion Investments - Mutual Funds & ETFs Total Current Assets

IAB of MD

2,459,408

53,611

259,429

682,587 11,040

554,750 1,592

143,829 466

140,980 1,768,957 5,062,972

289,112 899,065

98,138 501,862

Property & Equipment, net Cash Whose Use is Limited, Board & Donor Designated Inter-corporate Loans, net of current portion Investment in Big I Reinsurance Co. Investment in IAB Service Group Investment in Other Entities Other Assets, Net of Amortization Right-of-Use Asset Cash Value, Life Insurance Present Value, Annuity Contracts Deferred Income Tax Total Other Assets

fiscal year ended March 31, 2023 is on file at IA&B headquarters.

These statements are a summary of that report.

2,443,617 4,802,705

320,343

320,343

82,807 90,000 486,082

40,000 10,362 189,003 594,647 904,252 427,853 2,166,117

(1,574,854) (140,980) (1,715,834)

Combined IAB 4,342,169 289,263 239,158 80,356 0 0 4,599,824 9,550,770 409,132 320,343

979,232

102,013

42,005

82,807 120,000 600,100 0 0 0 0 0 0 1,123,250

(682,907)

0 120,000 0 40,000 10,362 189,003 594,647 904,252 427,853 3,015,592

Total Assets

6,042,204

1,001,078

543,867

7,587,149

7,377,954

(2,398,741)

12,566,362

Total Current Liabilities

1,577,651

144,935

2,279,114

1,079,134

(1,715,834)

1,642,414

82,807 117,882 136,576 1,361,061 1,698,326

(82,807)

0 117,882 136,576 1,361,061 1,615,519

100 600,000

(100) (600,000)

of the organization.

The accountants’ review for the

DAIAB

102,013

30,000 12,005

(82,807) (600,100)

LIABILITIES & NET ASSETS

Inter-corporate Loans Operating Lease Liability Deferred Tax Liability Retirement Obligations Total Long-term Liabilities

556,528

0

0

0

0 0 0 0 0

Net Assets, Unrestricted Capital Stock Additional Paid-in Capital Designated Funds Undesignated Total Net Unrestricted Assets

319,781 4,144,772 4,464,553

462 444,088 444,550

100 398,832 398,932

0 0 320,343 4,987,692 5,308,035

4,000,394 4,600,494

(600,100)

0 0 320,343 8,988,086 9,308,429

Total Liabilities & Net Assets

6,042,204

1,001,078

543,867

7,587,149

7,377,954

(2,398,741)

12,566,362

IABforME.com |

(82,807)

17

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877.552.2467 aimscentral.com

YOUNG AGENT CONFERENCE

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IABforME.com |

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E D U C AT I O N

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Live CE WEBINARS

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TO REGISTER : 800800 - 998 998-- 9644, OPTION 1 • IABFORME.COM 20

DECEMBER 2023

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E D U C AT I O N SCHEDULE DECEMBER 2023 Register today! 800-998-9644, option 1 IABforME.com/education CLASSROOM DATE TOPIC Dec 13 CISR - Personal Residential

LOCATION Mechanicsburg, PA

LIVE WEBINARS DATE TOPIC Dec 5-7 P&C Licensing

TIME 8 AM-5 PM

Dec 5

Homeowners Deep-Dive: What You Need to Know About the Most Recent Forms

9 AM-12 PM

Dec 5

Planting the Seed: Agent Strategies to Get & Keep Agribusiness Insureds

1-4 PM

Dec 6

CISR-Other Personal Lines Solutions

8 AM-3:45 PM

Dec 6

An Hour with Nicole: Everything You Need to Know About Insuring Work-From-Home Exposures

2-3 PM

Dec 7

Claims That Will Convince Your Insured to Enhance Their Homeowners Coverage

9 AM-12 PM

Dec 7

Wait, What the #^&* Just Happened? Fourteen Personal Lines Issues To Know Before It’s Too Late

1-4 PM

Dec 12

9 AM-12 PM

PRIMARY AGENT

Agent’s E&O: Duties, Best Practices, Operations, Workflows, & Certificates

Dec 12

1-4 PM

Editor: Karen Robison KarenR@IABforME.com 717-918-9209

All-Things Ethics: Agents Obligations, Standards, Authority & More

Dec 13

CISR-Elements of Risk Management

8 AM-3:45 PM

Dec 13

An Hour with Dave: Fast Facts About Flood

2-3 PM

Dec 14

Certificates of Insurance and the Coverage Issues that Go With Them

9 AM-12 PM

Dec 14

Chris Amrhein’s “Adventures in Aging”: Social Security & Other Retirement Income Solutions

1-4 PM

Tim Wonder, VP-Membership 717-918-9223 TimW@IABforME.com

VISION A thriving independent insurance agent community.

MISSION STATEMENT To serve as a driving force to champion independent agency success by educating, consulting, advocating, and fostering community in Pennsylvania, Maryland, Delaware, and beyond.

Contributing editors: Jennifer Ross, Megan Fioretta, Sarah Haas Sales Account Executive: Nick Heller | 609-273-8493 nicholas.heller@theygsgroup.com

IABforME.com |

21

©2023 Luke Donald, Captain of Team Europe, Winner of Ryder Cup 2023.

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