Primary Agent - December 2020

DECEMBER 2020

BRYAN HANES, J.D. FINDS 2020’S SILVER LININGS

Exclusive Member Magazine

Q&A WITH MD COMMISSIONER KATHLEEN BIRRANE

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DECEMBER

2020

CONTENTS

FEATURED >>>>> 4

EMPLOYEES, THEIR PERSONAL AUTOS, AND THE BAP IA&B Education Consultant Kevin Amrhein, CIC takes a deep dive into the Business Auto policy’s coverage limitation for employees driving personally owned vehicles.

JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_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 # 2020-12, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2020. 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.

10

Q&A WITH BRYAN HANES

14

AN INTERVIEW WITH KATHLEEN BIRRANE

IA&B Board Member Bryan Hanes, J.D. shares the family history of his agency, his outlook for the habitational market, and bright spots of 2020.

Hear from Maryland Insurance Commissioner Birrane on insurance industry innovation, COVID-19 related claims, and her priorities for the Maryland Insurance Administration.

MONTHLY 2 3 4 8 17 20 20 21

CHAIR OF THE BOARD’S MESSAGE DON'S DISCUSSION COVERAGE CORNER PRESIDENT'S MESSAGE PARTNERS WELCOME NEW MEMBERS PICS & POSTS UPCOMING LIVE WEBINARS 1

CHAIR OF THE BOARD’S MESSAGE

BRIGHTER DAYS AHEAD When I sat down to write this, I first looked to see what I had to say last year at this time. Yes, I peered way back to the December 2019 Primary Agent – before stay-at-home orders, toilet-paper shortages, and epidemiology crash courses. (Admittedly, much of 2020 felt like opening Pandora’s Box and being unable to close it.)

In that December 2019 message I said, “I hope that you are enthusiastically looking forward to what is coming in 2020.” Here we are a year later, and I want to say, “Let’s put 2020 in the rearview mirror, and the sooner, the better!”

Of course there were bright spots in 2020: Many stepped up and served their fellow man and are to be lauded and applauded – our health care workers, in particular. And thousands of others, in our industry included, stepped forward to provide support for those in need. I pray for those whose businesses have been decimated by shutdown orders and suggest that we support them with our pocketbooks when the opportunities arise.

There were other interesting points in last December’s magazine though. You see, I wrote of gratitude for our association’s strength in leadership. And truly, I do feel that more keenly now, after witnessing the dedication of our Board of Directors throughout this year. There were new uncertainties each month, yet IA&B’s volunteer leaders were steady and smart in their governance and oversight. I also wrote of my optimism for the future of our industry.

And that remains a constant. The next generation of industry leaders showed their resilience this year, and they succeeded while dealing with unprecedented challenges.

I won’t close my message for December 2020 naively. We all know that the new year will bring more tests and sacrifices. But I will encourage you to hold onto your optimism. There are brighter days ahead, and our industry will be an essential part of that recovery.

Respectfully,

INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 191 Main Street | Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS OFFICERS Craig S. Mader, Chair Crofton, MD Richard M. Rankin, CIC, Vice Chair Lancaster, PA

MEMBERS Gregory H. Bennett

Aberdeen, MD

Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA E. Stephen Burnett, CIC, ARM Wilmington, DE N. Lee Dotson, CIC, AAI

Wilmington, DE

Andrew Enders, Esq.

Harrisburg, PA

Len Gieseler, LUTCF

Pottstown, PA

G. Greg Gunn, CIC

Lemoyne, PA

Bryan C. Hanes, JD

Hagerstown, MD

Jason R. Hess

Coraopolis, PA

Lisa A. Leach Goth, CIC

New Bethlehem, PA

Christopher J. Miller, CIC

Jonestown, PA

Michael A. Papa, CIC, MBA Hunt Valley, MD William H. Purdy

Sunbury, PA

Jason Rodriguez

Wilmington, DE

D. Bradley Rosenkilde Jr.

Hunt Valley, MD

Tara S. Silfies, CPCU

Bethlehem, PA

Robert L. Smyrl Jr., CIC

Hatfield, PA

J. Marshall Wolff, CIC, CPCU Easton, PA Craig S. Mader Chair of the Board

NATIONAL DIRECTORS Michael P. Ertel Sr. (PIA) Columbia, MD G. Greg Gunn, CIC (IIABA) Lemoyne, PA Diane Hornung Hanby (IIABA) Wilmington, DE

2

DECEMBER 2020

DON'S DISCUSSION

DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus

Are you a member with a question?

Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.

elderly insured passed away. An adult son who was caring for her resides in her QUESTION: An home. Does the insured’s Homeowners policy remain in effect after her passing?

ANSWER: Yes, but there may be limitations.

Typically, a policy in place at the time of death remains in effect for the remainder of the policy period. Standard policy language in the ISO HO 02 through HO 06 and the ISO HO 08 reads: SECTION I and II - CONDITIONS G. Death If any person named in the Declarations or the spouse, if a resident of the same household, dies, the following apply: 1. We insure the legal representative of the deceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; and 2. “Insured” includes: a. An “insured” who is a member of your household at the time of your death, but only while a resident of the “residence premises”; and b. With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative.

As a result, applicable coverages remain for the duration of the policy period, but at renewal the name of the insured should be updated to reflect the estate of the deceased insured.

STATE STATUTES AFFECTING COVERAGE Pennsylvania passed a law which modifies this ISO policy language. The statute includes:40 P.S. Section 636.1(a) – After-death continuation of basic property insurance (a) Basic property insurance shall be continued one hundred and eighty (180) days after the death of the named insured on the policy or until the sale of the property, whichever event occurs first, provides that the premiums for the coverage are paid.

Therefore, if the policy is renewed and premium paid within 180 days after the named insured’s death, coverage remains in effect for up to 180 days after the insured’s passing, even if the policy was renewed in the name of the deceased. Pennsylvania-specific ISO language follows: G. Death …

2. Insurance under this policy will continue as provided in a. or b. below, whichever is later: a. For 180 days after your death regardless of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, are sold prior to that date; or b. Until the end of the policy period shown in the Declarations, unless

your premises and property, covered under the policy at the time of your death, are sold prior to that date.

Coverage during the period of time after your death is subject to all the provisions of this policy including payment of any premium due for the policy period shown in the Declarations and any extension of that period….

In Delaware the Civil Union and Equality Act modified who is an insured under the ISO policies. Delawarespecific ISO language follows: DEFINITIONS A. In this policy, “you” and “your” refer to the “named insured” shown in the Declarations and: 1. The spouse; or 2. A party who, with the “named insured”, has entered into a civil union recognized under Delaware law; if a resident of the same household.

G. Death If any person named in the Declarations or: 1. The spouse, if a resident of the same household; or 2. A party who, with the “named insured”, has entered into a civil union recognized under Delaware law, if a resident of the same household; dies, the following apply….

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.

3

ONCE AND FOR ALL – EMPLOYEES, THEIR PERSONAL AUTOS, AND THE BAP

By Kevin C. Amrhein, CIC With the first page of its policy form listing an array of coverage symbols, the ISO Business Auto Coverage Form distinguishes itself off the bat as a unique and challenging read.

Agents often struggle to explain these symbols to insureds who struggle to make sense of them, especially as their fleets grow and coverage needs evolve. Agents who manage to navigate these choppy waters and leave their insureds with a clear understanding of symbols are primed to coast through the remainder of the form, explain limitations, and alleviate concerns, right? Right?!

4

Every time I teach this form, at least a few agents in my classes are surprised to learn about a limitation applicable to employees while driving personally owned autos.

When I explain the limitation, folks often express frustration in their inability to locate it in the Exclusions section of the policy (hint – it’s not there). As further evidence of confusion, other agents think the coverage symbols are the key to addressing this limitation. This lack of understanding inspired me to write this article with the hope that, once and for all, agents will 1) clearly spot the limitation in the policy, 2) clearly explain it to an insured, and 3) clearly DECEMBER 2020

identify a solution if such is desired by the insured.

THE LIMITATION – WHERE THE $%^! IS IT? When presented with a coverage inquiry, many agents will review the Declarations page and the Exclusions section, skipping all information between (there’s no need to explain why this approach is problematic).

Agents who read the policy correctly (e.g. in order) should clearly see that the limitation in question appears in SECTION II, Part A.1. – Who Is An Insured (portions included here):

COVERAGE CORNER The following are “insureds”: a. You for any covered “auto”. b. Anyone else while using with your permission a covered “auto” you own, hire or borrow except: (2) Your “employee” if the covered “auto” is owned by that “employee” or a member of his or her household.

In summary, whether the argument against an employee being an insured is based on the language in item b. or b.2., the limitation is created in the definition of “insured” and not in the Exclusions section of the policy.

THE LIMITATION – WHAT THE $%^!

DOES IT MEAN? Employees frequently drive personally owned autos on company business. Should the employee cause an accident during such use, the injured party may accuse both the employee (operator) and employer (vicarious) of negligence and file the liability claim accordingly.

There are two auto policies addressed here. For the purposes of this article, assume both are ISO: the employee’s Personal Auto (PAP) and the employer’s Business Auto (BAP).

The PAP is primary and considers both the employee (Named) and the employer (Vicarious) as insureds. Barring an exclusion, it will defend/pay on behalf of each party accordingly.

If needed, the BAP will defend/ pay on behalf of the employer (Named) provided the appropriate coverage symbol is in place and that no exclusion applies. The BAP will NOT defend/pay on behalf of the employee due to the policy language cited previously.

THE LIMITATION – HOW THE $%^!

DO I FIX IT? After reviewing this limitation with them, some Business Auto insureds may wish to address this limitation, thus making the BAP available for such accidents to employees on an excess basis. The endorsement needed is ISO’s Employees As Insureds – CA 99 33. In addition to the availability of excess coverage for the employee, this endorsement may also reduce the likelihood of successful subrogation against the employer/employer’s insurer from the employee/employee’s insurer. That said, the endorsement is subject to underwriting and the insured may have no interest in obtaining/paying for it.

CONCLUSION – TAKEAWAYS FOR THE AGENT When reviewing coverage inquiries, resist the urge to skip around the form or go directly to the Exclusions section. Always review the policy in full and in order.

Acknowledge that employees driving personally owned autos is a ubiquitous exposure and should be addressed with every BAP insured.

Understand the “Who Is An Insured” section of the BAP and the limitations contained within it, including for employees while driving personally owned autos.

Explain how this limitation would apply to a claim involving both the employee and the employer.

Discuss options with insureds so they can decide what – if any – action they wish to take.

That’s all for now. Until the next round … cheers!

Kevin C Amrhein, CIC, is IA&B‘s education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.

AN HOUR WITH KEVIN Register for a 1-hour webinar.

Member Price: Just $25 Earn CE by attending 1-hour webinars with IA&B Education Consultant Kevin Amrhein, CIC. COVERAGE CONCERNS FOR SERIOUS STORM EVENTS DECEMBER 8 2 - 3 PM MORE COVERAGE CONCERNS FOR SERIOUS STORM EVENTS DECEMBER 17 2 - 3 PM Register today.

IABforME.com/webinars 800-998-9644, option 1

5

NEWS & NOTES NEW MD CONDO LAW COMPLIMENTARY WEBINAR ON DIGITAL PAYMENTS Join IA&B’s preferred paymentprocessing provider, ePayPolicy, for a 30-minute webinar, exclusively for IA&B members. Learn how digital payments are helping agencies address the current climate within the industry and about the added benefits of using a solution that is solely insurance-focused.

Wednesday, Dec. 9 | 11-11:30 AM Attendance is free for IA&B members, but registration is required.

IABforME.com/ePayPolicy

MD ADDS ONLINE LICENSING EXAMS

CYBER COVERAGE FOR YOUR CLIENTS Meet your clients’ cyber coverage needs with the new Independent Market Access (IMS) carrier – Cowbell Cyber. Please note: This market is available exclusively to IA&B members in Pennsylvania at this time.

Cowbell Cyber offers a standalone, admitted cyber insurance program.

Policies are written on AM Best "A" rated paper and carry limits from $50,000 to $5M on accounts up to $100M in revenue. Plus, the program includes: • 100% online process with oneclick quote customization • Instant quote, bind, and issue (no referral to underwriting) • Direct bill

Maryland insurance professionals now can take insurance licensing exams online. As of Oct. 1, the Maryland Insurance Administration (MIA) switched its licensing vendor from PSI to Prometric.

Through IMS, IA&B provides members with access to markets and alternatives that may be otherwise unavailable. Enrollment is easy.

Prometric offers the ProProctor application for remote testing.

It requires a computer (tablets not permitted) with a camera, microphone, and internet connection.

For more information on system requirements and to perform a system check, review the MIA Licensing Information Bulletin on the Prometric website.

Questions? Contact Tim Wonder 800-998-9644, ext. 351 TimW@IABforME.com

Prometric.com/Maryland/insurance

IMSaccess.com/states/pennsylvania

DE WORKERS’ COMP RATES Delaware Workers’ Compensation policies will see an average overall change of -8.80% in residual market rates and -11.56% in voluntary market loss costs. The rates are effective on a new and renewal basis as of Dec. 1, 2020.

DCRB.com (Circular No 988)

6

DECEMBER 2020

House Bill 108/Senate Bill 175, signed into law earlier this year, amended the Maryland Condominium Act, increasing from $5,000 to $10,000 the maximum amount of a condo association’s property insurance deductible that a unit owner is responsible for when the cause of damage to the condo originates in his/her specific unit. The condo association is still required to notify its unit owners annually of their responsibility, and of the amount of the master policy deductible.

The new law also specifies that the condo association’s property insurance deductible is a common expense if the cause of any damage to the condo originates from an event outside of the condo units and common elements.

The change applies to all policies of property and casualty insurance issued, delivered, or renewed in the state to a condominium council of unit owners on or after Oct. 1, 2020. Agents may want to confirm with their HO carriers in writing the proper process to cover the unit owner’s increased liability: through a higher limit on the increased loss assessment endorsement (HO 04 35 05 11 version with no sublimit for association deductibles) or through another method, such as increased Coverage A.

MEET NEW PA TRAINING REQUIREMENT Carry the Life line of authority in Pennsylvania? Take our live CE webinar, Annuities – Consumer Protection and Suitability, on Monday, Dec. 7 to meet the state’s new annuities training requirement (impacts non-residents). Register at IABforME.com/webinars.

NEWS & NOTES About the Requirement All producers (residents and nonresidents alike*) who hold a life and annuities license – even if they do not sell annuities – must comply with the one-time training requirement, which took effect Dec. 26, 2018.

Producers licensed before the statute’s effective date must meet the requirement on or before the end of their next complete license period. (For example, if your license expired on March 31, 2019, you would have until March 31, 2021 – the end of your next complete license period – to comply.) For those who become licensed after the effective date, the requirement must be met on or before the end of their first licensing period.

If you’re a Maryland or Delaware resident producer and have already completed a similar annuities course, you may want to reach out to your carrier to determine if the Pennsylvania requirement can be waived for you.

*

DE INSURANCE DATA SECURITY ACT REQUIREMENTS The Delaware Department of Insurance (DOI) updated Universally Applicable Bulletin No. 5, which outlines the Delaware Insurance Data Security Act requirements. The updates include: • A change to the DOI’s email address (now doidatasecurity@ delaware.gov), where notices of a data breach are sent • The addition of a requirement to for insurers to submit an annual certification of compliance with the Act’s requirements As a reminder, the Act imposes data security requirements on insurers and insurance licensees, including all agents and brokers. Specifically, it: • Requires the implementation of a comprehensive written information security program

BEST WISHES FOR A

HAPPY HOLIDAY SEASON

• Establishes the standards for the investigation of and notification to the insurance commissioner of cybersecurity events affecting licensees.

IABforME.com/privacy

ESTABLISH TELECOMMUTING POLICIES Formalize your agency’s remotework procedures and expectations for staff and agency operations.

IA&B now offers a Remote Work Agreement tool – a collection of Word documents which you can customize to meet your agency’s needs. It includes: • Remote Work Agreement – Sample agreement for applicable employees and their supervisor to review and sign • Remote Work Policy Guidelines – Executive-level overview of telecommuting considerations • Remote Work Procedure Checklist – Index for use in conjunction with Remote Work Policy Guidelines IABforME.com/remote_work Questions? Contact: Claire Pantaloni, CIC 800-998-9644, ext. 604 ClaireP@IABforME.com or Don Bankus 800-998-9644, ext. 603 DonB@IABforME.com

FROM THE FARM INSURANCE EXPERTS AT

Bow, NH 877.552.2467 • www.aimscentral.com

Coverage is summarized. Please refer to actual policy for details. Policies are underwritten by Great American Insurance Company, Great American Insurance Company of New York, Great American Alliance Insurance Company, and Great American Assurance Company, authorized insurers in 50 states and the DC. Products not available in all states. ©2020 Great American Insurance Company, 301 E. Fourth St., Cincinnati, OH 45202. 5607 AGB (10/20)

7

PRESIDENT'S MESSAGE

ONWARD & UPWARD A MESSAGE FROM JASON ERNEST Normally, a year in review is easy to write. It’s an opportunity to reflect on the accomplishments that you planned and budgeted for at the beginning of the year.

It includes the travel and events through the year, and the new people you met. There may be a surprise or two throughout the year, but for most part what you planned for on Jan. 1 is pretty much what occurred.

Then there is 2020. Throw everything out the window.

This has been a whirlwind, and I trust you are like me and ready to put the year in the books. None of us expected on Jan. 1 of this year that we would go through what we have.

Would anyone have predicted that the most common phrase is 2020 would be “you’re on mute”?

But despite the craziness, there have been lessons learned, lessons that are going to permeate for years to come. My year in review therefore is three observations of what independent agents, and IA&B, have accomplished in 2020: ADAPTABILITY - This year, we saw agencies that adapted to the current environment, made necessary changes, and continued with business as usual. We also saw agencies that were not so quick to adapt and, as a result, had difficulty. Adoption of technology to offset challenges has to be the key. In an environment where staff can’t be in the office and in-person sales calls are limited, new technology must be incorporated.

FLEXIBILITY - Agencies have had to be flexible, specifically in regard to staff. The acceptance and fostering of remote work has been critical this year, and I don’t see this trend going away. Agencies that have allowed such flexibility found that the work can still get done, and in some cases in a more efficient manner. Employees are beginning to expect flexibility – and agencies are going to have to embrace it. Everyone was forced to implement remote-work procedures quickly; now is the time to formalize and improve those procedures.

the writing of insurance must continue in it. The resilient agency is going to be the agency that gets that business.

IA&B experienced the same; and I’m proud to say we’ve exhibited the three qualities above in order to persevere through this year. We adapted by changing our focus on what agents needed this year. We spent considerable time preparing and gathering COVID-specific resources to help our members navigate this water. We were flexible by offering member benefits in alternative ways – namely online education, webinars, and even conferences. And we have been resilient in that, despite a heavy remotework environment, we have delivered (and in some cases exceeded) our high standard of quality to our members.

We are lucky that the insurance industry is somewhat sheltered during these times. What I mean is that insurance is still required, not optional, and there will always be a buying public. While any sort of shutdown impacts all, it doesn’t drastically impact our industry.

(Think of the restaurant and theater industries as stark examples of the opposite.) The insurance show goes on … but this doesn’t mean agencies can be complacent. Who knows what 2021 holds? And who knows what business practices of 2020 will become norms in future years?

So, this is a year we will all remember – and not necessarily fondly. But for a year in review, it can’t be all negative. The independent insurance agent channel was remarkably adaptable, flexible, and resilient. Based on our observations, for the most part independent agents performed remarkably well. We should all be proud of that, and it’s an indication that future challenges can be managed.

Let’s dust ourselves off, say goodbye to 2020, and be ready to take on 2021 – whatever it may bring.

RESILIENCY - It hasn’t been an easy year. Adaptability and flexibility take planning and additional work. But those agencies that have been resilient in their resolve, and have addressed these challenges head on, have succeeded.

Nobody expected or asked for the challenges of 2020; but at the same time, it is the current world we live in and

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DECEMBER 2020

Jason Ernest, Esq. IA&B President & CEO

IA&B FINANCIAL REPORTS INSURANCE AGENTS & BROKERS COMBINING STATEMENT ACTIVITIES INSURANCE AGENTS &OF BROKERS March 31, 2020 COMBINING STATEMENT OF ACTIVITIES March 31, 2020

IA&B maintains a strong combined statement of financial position with $9.2 million in assets, $6.2 million in member equity, and no third-party financed debt. Over $102,000 of net operating income is reflected on the combined statement of activity for the year ended March 31, 2020.

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

We’re over 1,100 members strong across three states.

Approximately 4,900 individuals attend over 159 IA&B classes annually, and 1,600 individuals logged into 131 webinars.

Additionally, members buy over 1,500 policies through us for their agency insurance coverage.

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

The accountants’ review for the fiscal year ended March 31, 2020 is on file at IA&B headquarters.

These statements are a summary of that report.

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

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

Total Expenses Net Operating Income (Loss)

IAB OF PA

IAB of MD

DAIAB

IAB OF PA

IAB of MD

DAIAB

Combined IABCombined Associations IAB Associations

372,321 1,382,903 372,321 85,005 1,382,903

65,248 242,351 65,248 14,897 242,351

19,996 74,269 19,996 4,565 74,269

668,857 2,848 2,511,934 2,848

117,217 500 440,213 500

35,919 153 134,902 153

17,812

3,120

957

17,812 1,122,492 62,370 1,122,492

3,120 196,717 10,929 196,717

957 60,290 3,348 60,290

85,005 668,857

2,511,934

62,370 86,191 1,295,301 86,191 28,858 1,295,301 2,613,024 28,858

2,613,024 (101,090)

14,897 117,217

440,213

10,929 15,105 227,000 15,105 5,057 227,000 457,928 5,057

457,928 (17,715)

IAB Service IABGroup Service Group

457,565 1,699,523 457,565 104,467 1,699,523 0 104,467 821,993 0 0 821,993 3,501 0 3,087,049 3,501

4,565 35,919

134,902

9,335 126,784 9,335 2,160,496 126,784 89,648 2,160,496 1,697,122 89,648 4,083,385 1,697,122 4,083,385

21,889 0 21,889 1,379,499 0 76,647 1,379,499 0 76,647 105,925 0 1,591,857 105,925 35,465 1,591,857 3,211,282 35,465

140,330 (5,428)

712,437 712,437 7,665 101,400 7,665 101,400 3,018,326 27,866 3,018,326 3,867,694 27,866

3,211,282 (124,233)

3,867,694 215,691

Net Operating Income (Loss) Other Income (Expense): Contributions & interest to Other Income (Expense): designated funds Contributions & interest to Depreciation & amortization designated funds Interest & dividends on cash Depreciation & amortization equivalents Interest & dividends on cash Net investment income (loss) equivalents Life investment insurance income Net income(expense) (loss) Annuity incomeincome (expense) Life insurance Deferred compensation expense Annuity income Income benefit (expense) Deferredtax compensation expense Total Other Income (Expense) Income tax benefit (expense)

(101,090)

Change in Net Assets

& BROKERS (178,712) INSURANCE (30,759) AGENTS (10,320) (219,791) COMBINING STATEMENT OF FINANCIAL POSITION March 31, 2020 INSURANCE AGENTS & BROKERS COMBINING STATEMENT OF FINANCIAL POSITION ASSETS March 31, 2020

Total Other Income (Expense) Change in Net Assets

Total Assets Life insurance income (expense) Total Current Liabilities Inter-corporate Loans Life insurance income (expense) Deferred Tax Liability Total Current Liabilities Retirement Obligations Total Long-term Liabilities Inter-corporate Loans Deferred Tax Liability Retirement Obligations Net Assets, unrestricted Total Long-term Liabilities Capital Stock Additional Paid-in Capital Designated Funds Net Assets, unrestricted Undesignated Capital Stock Total Net Unrestricted Assets Additional Paid-in Capital Designated Funds Total Liabilities & Net Assets Undesignated Total Net Unrestricted Assets Total Liabilities & Net Assets

(5,428)

9,390

386

118

9,390

386

118

30,630 (117,642) 30,630 (117,642)

5,368 (18,798) 5,368 (18,798)

(77,622)

(13,044)

(4,892)

(77,622) (178,712)

(13,044) (30,759)

(4,892) (10,320)

IAB OF PA Cash & Cash Equivalents Cash, Premium Fiduciary Account Accounts Receivable Prepaid Expenses Cash & Cash Equivalents Inventory Cash, Premium Fiduciary Account Inter-corporate Loans, current portion Accounts Receivable Investments - Mutual Funds & ETFs Prepaid Expenses Total Current Assets Inventory Inter-corporate Loans, current portion Property & Equipment, net Investments - Mutual Funds & ETFs Total Current Assets Cash Whose Use is Limited, Board & Donor Designated Property & Equipment, net Inter-corporate Loans, net of current portion Cash Whose Use is Limited, Board & Investment in Big I Reinsurance Co. Donor Designated Investment in IAB Service Group Inter-corporate Loans, net of Investment in Other Entities current portion Other Assets, Net of Amortization Investment in Big I Reinsurance Co. Cash Value, Life Insurance Investment in IAB Service Group Present Value, Annuity Contracts Investment in Other Entities Deferred Income Tax Other Assets, Net of Amortization Total Other Assets Cash Value, Life Insurance Present Value, Annuity Contracts Total Assets Deferred Income Tax Total Other Assets

(17,715)

IAB of MD

1,520,635

37,149 IAB of MD 663,689 2,953 37,149 663,689 249,503 2,953 953,294 249,503 953,294

215,691

9,894 0 9,894

(95,558) (219,791)

(1,615) (5,000) (28,049) (5,000) (28,049)

(1,609,472) (1,644,136) (1,609,472) (1,644,136)

(259) (4,144) (259) (51,058) (4,144) (4,794) (51,058)

(4,794) (441) (1,594,252) (441) (1,594,252) (1,654,948) (1,654,948) 10,812 10,812

(86,140)

0 37,643 (143,095) 37,643 0 (143,095) 0 0 0 0 0 0 (95,558) 0

(86,140) 4,291 (4,729) 4,291 (19,441) (4,729) 21,339 (19,441) (189,004) 21,339 13,255 (189,004) (260,429) 13,255 (260,429) (44,738) (44,738)

(10,812) (10,812)

(10,812) (10,812) 0 0

Combined IAB Combined IAB

455,950 1,699,523 455,950 108,802 1,699,523 98,735 108,802 2,982,489 98,735 89,648 2,982,489 91,151 89,648 5,526,298 91,151 5,526,298

21,630 708,293 21,630 1,328,441 708,293 79,518 1,328,441 101,400 79,518 105,484 101,400 3,015,931 105,484 63,331 3,015,931 5,424,028 63,331 5,424,028 102,270 102,270 9,894 (86,140) 9,894 (86,140) 41,934 (158,636) 41,934 (19,441) (158,636) 21,339 (19,441) (189,004) 21,339 13,255 (189,004) (366,799) 13,255

(366,799) (264,529) Attachment

IAB Service Group

249,125 1,806,909 Combined 0 DAIAB IAB Associations 212,493 1,691,033 906 20,700 249,125 1,806,909 424 0 222,563 212,493 1,691,033 85,975 1,853,814 906 20,700 548,499 5,595,443 424 222,563 0 85,975 1,853,814 548,499 5,595,443

446,381 IAB 206,669 Service Group 372,358 146,056 446,381 206,669 372,358 58,013 146,056 1,229,477 2,003,746 58,013 1,229,477

Intercompany Eliminations Intercompany Eliminations (1,904,232) (222,563) (1,904,232) (2,126,795) (222,563) (2,126,795)

Combined IAB 2,253,290 Combined 206,669 IAB 159,159 166,756 2,253,290 424 206,669 0 159,159 1,911,827 166,756 4,698,125 424 0 2,003,746 1,911,827 4,698,125

310,074

310,074 0

794,777 90,000 310,074 486,082

794,777 120,000 310,074 600,100 0 794,777 0 120,000 0 600,100 0 0 0 0 1,824,951 0 0 7,420,394 0 1,824,951

82,308 19,547 784,707 663,807 82,308 551,566 19,547 2,101,935 784,707 663,807 5,335,158 551,566 2,101,935

(1,394,877)

0 120,000 310,074 0 82,308 0 19,547 120,000 784,707 0 663,807 82,308 551,566 19,547 4,535,755 784,707 663,807 9,233,880 551,566 4,535,755

LIABILITIES & NET ASSETS 7,420,394 1,055,307 590,504

5,335,158

(3,521,672)

9,233,880

2,596,288

775,917

(2,126,795)

1,245,410

794,777 85,293 775,917 1,745,176 2,625,246 794,777 85,293 1,745,176 2,625,246 100 600,000

(794,777)

5,335,158 1,333,895 1,933,995

(3,521,672) (600,100)

0 85,293 1,245,410 1,745,176 1,830,469 0 85,293 1,745,176 1,830,469 0 0 309,342 5,848,659 0 6,158,001 0 309,342 9,233,880 5,848,659 6,158,001

5,335,158

(3,521,672)

9,233,880

794,777 90,000 486,082

102,013

30,000 12,005

102,013

30,000 12,005

1,680,933

102,013

42,005

5,774,583

1,055,307

590,504

1,680,933

102,013

42,005

5,774,583 1,708,890

673,377

214,021

LIABILITIES & NET ASSETS 1,708,890

673,377

214,021

0

0

0

0

0

0

309,342 3,756,351 4,065,693

381,930 381,930

376,483 376,483

309,342 5,774,583 3,756,351 4,065,693

1,055,307 381,930 381,930

590,504 376,483 376,483

0 0 2,596,288 0 0 0 0 0 0 0 0 309,342 4,514,764 0 4,824,106 0 309,342 7,420,394 4,514,764 4,824,106

5,774,583

1,055,307

590,504

7,420,394

E

(264,529)

Attachment E

Combined IAB Associations

DAIAB ASSETS

IAB OF PA 814,851 16,841 1,520,635 424 222,563 814,851 1,518,336 16,841 4,093,650 424 222,563 1,518,336 4,093,650

(124,233)

1,645 (6,655) 1,645 (6,655)

Eliminations

(1,615)

3,087,049

3,348 4,629 69,556 4,629 1,550 69,556 140,330 1,550

Intercompany Eliminations Intercompany

310,074 2,003,746

2,003,746 (794,777)

1,333,895 100 1,933,995 600,000

(600,100) (794,777) (600,100) (1,394,877) (3,521,672)

(2,126,795) (794,777) (794,777) (794,777) (100) (600,000) (100) (600,100) (600,000)

9

Q&A with

BRYAN HANES, J.D. Left to Right: IA&B volunteer leaders include Michael Ertel, D. Bradley Rosenkilde and Bryan Hanes, J.D.

Bryan Hanes, J.D. is president of Antietam Insurance Associates, a full-service independent agency located in Hagerstown, MD. Bryan represents the third generation of his family in the agency. He serves on the IA&B of Maryland Board of Directors and Government Relations Committee.

Q. Your path to independent agent is unique! What prompted your switch from practicing insurancelitigation law to working as an independent agent?

A. I grew up around the insurance business, first with my grandfather and then with my father. I remember sitting in my father’s office as a young man and discussing my career path. At that time, the allure of being an attorney appealed to me because I was involved with public speaking. My father, Maurice Hanes, aptly foresaw that the education I would get in law school would be transferable to just about any profession, especially business, should I one day want to take over the insurance agency.

I graduated from Duquesne University and then attended law school, where I interned as a judicial clerk in the Rhode Island Superior Court for Honorable William Dimitri. He was a former federal prosecutor and then a renowned white-collar crime defense attorney in the Providence and Boston area. I enjoyed the behind-thescenes dynamics of the judicial system, while gaining insights from a great legal mind.

After graduating from law school, I began my career in insurance-defense litigation. But the work did not include the flare and panache of the closing argument in a criminal courtroom, as much as billable hours for the monotonous tasks of reviewing documents, medical reports, and pleadings. And while I enjoyed litigation in the criminal

10

courts, the gravity of such work on my conscience was a serious consideration as I contemplated my future.

Once I transitioned to insurance, I realized my legal background would help me identify the less obvious instances of risk in customers’ business and personal lives.

I also realized how much I enjoy interacting with people (in a non-adversarial way) and carrying on relationships that my grandfather and father made.

I know that what I enjoy now in the insurance business would not be possible without my father’s and grandfather’s hard work and sacrifices. And I have an eye toward the fourth generation – my daughters who are 10 and 14. I often think about how best I can give them the opportunity to step into a strong and prosperous agency if they choose the insurance profession.

Q. Your agency was founded by one of Maryland’s original Erie Insurance agents, Leonard Summers. Tell us about him.

A. It would be an understatement to say that when my grandfather, Leonard, began in the business it was much different. Erie Insurance was recruiting in the Boonsboro, MD area for an insurance agent in the 1950s, so they went to the local general store/diner where they inquired about any local “good men.” The Erie recruiter approached Leonard, who began selling insurance door to door, while his wife Lorraine serviced the accounts by taking messages and payments from the breezeway of their home. My grandfather is now 96 and still tells stories about meeting with H.O. Hirt, the founder of Erie Insurance. Hirt would tell him not to get his foot in the door when selling insurance, but to get his head in the door, so when they tried to close it, he could keep talking.

DECEMBER 2020

ON THE COVER Q. Tell us about the historical significance of your agency’s name, slogan (“Preparing you for life’s battles”), and logo (Civil War-era cannon).

A. Our agency is located about 10 miles from the Antietam Battlefield, which is where the single bloodiest day in American history took place. When I was growing up, my grandmother would take me to the battlefield as a special outing. The history of it enthralled me, and the Civil War era captivated my imagination very early in life.

Using the Civil War cannon in the logo was something my father came up with given our name, Antietam Insurance Associates. The cannon evoked in me thoughts of having as much fire power as you can when preparing for life’s battles – hence, our slogan.

Q. You specialize in habitational insurance. What’s that market like right now, and what are your projections for 2021?

A. The habitational market has always been a challenge because it seems most carriers’ affinity for the habitational risk wavers at times.

In addition, because habitational risks are closely entwined with banks, the certificate of insurance work is intensive. And it has become even more intensive with the emergence of third parties that scrutinize the insurance coverage for banks on a continuous basis, even after the renewal. This has created workflow changes at my agency. It frustrates a process that was previously only completed at renewal but now involves requests relative to the policy throughout the entire term. I project that this trend will continue. It’s another instance of the increased burden on insurance agents.

Q. You’re a long-time member of the IA&B Government Relations Committee. What drives your commitment?

A. The issue of bank requirements and increased burden on insurance agents is a perfect segue into my service on the IA&B Government Relations Committee. The committee is a sounding board, to determine if an issue could be addressed through legislative advocacy – or just to find out how other agents are handling it.

Early in my career, my father encouraged me to go to an IA&B Member Agent Panel meeting. I remember meeting Jason Ernest [now president and CEO of IA&B] at the first one I went to about 15 years ago. I was excited to meet another young attorney in the insurance business, as well as for the outlet to discuss issues with other agency owners. Eventually, I began attending IA&B Government Affairs Committee meetings and have continued to do so in conjunction with the IA&B Board of Directors.

I cannot overstate how much I have learned from other IA&B members at every interaction. I leave all IA&B events reflecting on the exceptional, driven, and sophisticated professionals in our industry. I learn from them immensely and am always humbled by my ability to contribute to a group of such a caliber. It has been integral to the quality of my career development. I can say the same for the IA&B staff and our lobbyist, Bryson Popham – they are the most innovative and exceptional in the field.

Q. In addition to serving as your agency’s CFO, your wife is an ICU nurse who cared for COVID-19 patients in recent months. What was this experience like for your family?

A. My wife, Bethany Hanes, has been on the front lines as a Certified Critical Care Nurse throughout the COVID crisis.

This experience has been sobering for our family. She worked in what was considered a hot spot, directly with COVID-positive patients, so she witnessed firsthand the deadly side of the disease and the devastation to families of those who were overcome by the virus.

It was scary for her, myself, and my young daughters because personal protective equipment was an issue, and it was truly an act of courage on the part of my wife and my daughters to discuss what we would do if Mommy got sick. Yet Bethany stood up to this in a way that made everyone in my family proud.

She is nothing short of a hero. Though she feared to go into work, she went in anyway – not because she had to but because, as she told me, those patients deserved her level of skill and care. If there is any silver lining to all of this, it is seeing people who want to be their best for others, even if it could come at a great sacrifice.

Q. Let’s face it: 2020 was rough for a lot of people and for many reasons. But looking back, what’s something positive that you can share?

A. In the face of such uncertainty, there are people who have found in themselves the capacity to arise as heroes to counter the chaos of the situation, and this encourages other people to learn their own capacity to do the same.

Then there is the insurance industry, which as a whole stood up for policyholders, and for that I am proud. I also am thankful to be part of an industry that has not been devastated to the extent of other businesses.

As an insurance agent or as any other professional, I think we can all see the small ways we can help rebuild and make better the lives of our clients, our families, and our communities. In these times we truly have no other choice.

11

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13

MEET MARYLAND INSURANCE COMMISSIONER

Kathleen Birrane

Kathleen Birrane was appointed Maryland Insurance Commissioner in May 2020. Prior to her appointment, she was a partner in the Insurance Sector and Litigation and Regulatory Practice Group at the global law firm of DLA Piper LLP. From 2002 until 2007, Birrane served in the Maryland Office of the Attorney General in the statutory position of Principal Counsel to the Maryland Insurance Adminstration (MIA).

On the following pages, the commissioner answers IA&B’s questions on her transition to the MIA, legislative proposals that would impose a fiduciary standard on the conduct of insurance producers, and her priorities while in office.

You previously served in the Maryland Office of the Attorney General before working for a private practice firm. What prompted your return to civil service?

The short answer is that the Governor’s Office reached out and asked if I would assume the post in light of Commissioner Redmer’s [former Maryland Insurance Commissioner Al Redmer, Jr.] shift to Maryland Auto Insurance [formerly MAIF]. While I was not seeking a change, I did not hesitate to say yes. First, I have great respect for Gov. Hogan, who is an extraordinary leader and public servant, and am honored to be part of his administration. Second, as the Governor’s Office emphasized when they contacted me, my background would allow a smooth transition, with a minimal learning curve, which was important given the state of emergency and the number of insurance issues playing out in light of the pandemic. So, it was the right thing to do, and I was happy to be given the opportunity to serve.

I am fortunate in coming to this position after having been counsel to the agency in the past and after many years of

14

working with licensees and other sector participants as both in-house and outside counsel. That background gives me good and practical insight into the sector, including how regulated entities and their vendors currently operate, and what is on the horizon. I believe that I understand the state-based insurance regulatory framework and how to apply it so as to assure that the law is followed and consumer interests are protected, while also assuring a healthy, vibrant, innovative market. And, because I have worked closely over many years with regulators, licensees, vendors, and other stakeholders across a broad spectrum of regulatory and transactional issues – including recent work relating to technology and digital innovation – I feel that I have been able to hit the ground running and get up to speed on most issues relatively quickly.

At the six-month mark, I can say that I am happy to have returned to civil service. It is absolutely the best job I have ever had.

We know that the advancement of insurance industry technology and innovation is of interest to you. Tell us more.

I’d like to see Maryland at the forefront of technological innovation. As an agency, we will be part of the drive within the National Association of Insurance Commissioners (NAIC) to use technologies, such as blockchain, to improve the speed and efficiency of regulation. Likewise, we will encourage the appropriate and controlled use of innovation, data analytics, and sophisticated modeling to deliver better and faster results for consumers, including product and pricing innovations and fully digital purchasing and claim experiences. We can deliver the kinds of innovation that modern consumers expect, while protecting data and consumers.

DECEMBER 2020

MEET THE COMMISSIONER I will also work to attract InsurTech innovators to the state. Maryland is home to world-class educational institutions and is already a leader in tech-related degrees and business incubators. Under Commissioner Redmer’s leadership, through an Advisory Board that he founded, the University of Baltimore has established the first of its kind degree in risk management. The MIA has continued to act as a catalyst in building an educational pipeline from high school through graduate schools to assure a well prepared, educated work force across the insurance sector. To that, I hope to add an emphasis on degrees and opportunities in the technological and data sciences. I see Maryland as the East Coast leader in this area.

The MIA held virtual industry meetings with producers earlier this year. What were your key takeaways?

The Maryland Insurance Administration strongly believes that communication is key to effective regulation and customer service. Throughout the COVID-19 emergency, we’ve stayed in close touch with insurers, providers, and producers to make sure their needs and concerns are being addressed. For producers, an important issue has been continuing education and licensing, and I am happy that we were able to move seamlessly to a new vendor – Prometric – effective Oct. 1 for testing services. Most significantly, for the first time, Maryland insurance licensees can take their exams online.

The Maryland General Assembly in past sessions has considered proposals to impose a fiduciary standard on the conduct of licensed insurance producers. In addition, there is an NAIC model regulation, based upon the SEC “Best Interest” regulation, which may be considered for adoption in Maryland. What are your thoughts on these proposals?

The Maryland Insurance Administration testified against the 2019 fiduciary standard bill. There were several reasons for that. With respect to the standard of conduct, the MIA considered the statute to be overly broad. In addition, the legislation could have subjected insurance producers to dual oversight by both the MIA and the Office of the Attorney General, an unnecessary redundancy given that a significant purpose of the MIA is to oversee producers.

I agree with those positions. There are circumstances in which insurance producers assume fiduciary roles with respect to their clients, but that is not necessarily the case with respect to every sale and interaction, particularly when purchases are made electronically through wholly digital experiences. It is critically important that producers be educated and informed, and that consumers are

protected throughout the sales transactions through, for example, disclosures and mandated offerings. But broadly treating every producer as a fiduciary of every insurance purchaser for every transaction, in my mind, goes too far.

Maryland case law does an excellent job of identifying the circumstances in which a fiduciary relationship is established, and the General Assembly has done an excellent job of imposing affirmative obligations on producers with respect to their conduct. The confluence of the two create significant consumer protections, and the MIA rigorously enforces those standards.

With respect to the NAIC Model and the SEC’s Best Interest Standards, this approach is an effort to be more intentional in identifying circumstances in which it is appropriate to impose a heightened set of obligations on producers selling financial service products. Maryland is reviewing the NAIC model approach and will adopt a form of it. My staff is currently working through a draft, and we expect that we will post a draft for comment by the end of the year.

The COVID-19 pandemic has raised issues around business interruption coverage, and multiple state legislatures have introduced bills that would require insurers to cover COVID-19 related claims. What is your opinion on this topic?

While multiple state legislatures looked at coverage legislation very early on in the pandemic, no state passed legislation that would mandate coverage for COVID-19 business interruption coverage claims without regard to policy language. While initial concerns were understandable, legislators quickly recognized the constitutional challenges of any such approach, as well as the financial impact of such an approach on the solvency of the insurance industry, which could not absorb these losses.

The NAIC, of which Maryland is a member, has provided context and impact information on this topic, and the MIA has likewise provided the Maryland General Assembly with an understanding of the dollar volume of these types of claims, the fact that premium was not collected to respond to these claims, and the economic impact such claims would have on the industry as a whole.

With respect to any specific forward-looking concepts, the MIA will continue to be an information resource in Annapolis if any business interruption insurance bills are introduced. As always, we are available to all stakeholders for pre-session review of any proposed legislation involving any insurance matter.

15

What is your main priority to accomplish while serving as commissioner?

First and foremost, I plan to keep us moving in the right direction.

We have a very experienced, talented, and knowledgeable team, and we will continue to expand our market.

In addition to technological innovation, I also have a significant interest in mental and behavioral health resources and parity – the availability and affordability of care.

With respect to insurance, that is includes a discussion on network adequacy. It broke my heart to leave the University of Maryland Medical Systems Board to accept this appointment, but the balm for that was joining the Board of the Maryland Health Benefit Exchange and being a member of the Governor’s Commission to Study Mental and Behavioral Health in Maryland.

I am also actively engaged in two important workstreams at the NAIC. I am the vice chair of the financial solvency workstream of the new NAIC Climate and Resiliency Task Force, which will focus on the economic impact of climate on insurers. And, I am on the Property and Casualty and the Life and Annuity workstreams on the NAIC Special Committee on Race and Insurance.

Both of those workstreams include careful consideration of product design; access to product, including affordability; and the impact/use of predictive analytics, big data, and machine learning.

®

HarfordMutual.com

16

DECEMBER 2020

Thank You

PARTNERS to LIST FOR DECEMBER PRIMARY AGENT Platinum: Acuity Donegal Insurance Group Erie Insurance Group PLATINUM Farmers Mutual FirePARTNERS Insurance Company of Marble Acuity IA&BDonegal Service GroupGroup Inc. Insurance Millers ErieMutual InsuranceGroup Group PennFarmers National Mutual Fire Insurance Company of Marble Plymouth RockGroup Assurance IA&B Service Inc. The Millers Main Street America Group Mutual Group Penn National

Gold: Plymouth Rock Assurance Chesapeake Employers Company The Main Street America Insurance Group Chubb EMCGOLD Insurance PARTNERS Illinois Casualty Company Chesapeake Employers Insurance Company Keystone Insurers Group Chubb Lackawanna Insurance Group EMC Insurance Liberty Mutual Business & Safeco Insurance Illinois Casualty Company MMG Insurance Company Keystone Insurers Group Mutual Benefit Group Lackawanna Insurance Group Openly Insurance Liberty Mutual Business & Safeco Insurance Progressive MMG Insurance Company Mutual Benefit Group Silver: Nationwide Insurance Company Aegis Security Insurance Company Openly Insurance Agency Network Exchange LLC Progressive

BECOME A 2021 PARTNER TODAY Contact us with any questions.

Tim Wonder, VP - Membership TimW@IABforME.com P: 800-998-9644, ext. 351 Alane Fagan, Events Manager AlaneF@ IABforME.com P: 800-998-9644, ext. 512

IABforME.com/Partners

Amerisafe AmWINS Program Underwriters Inc. Auto-Owners Insurance BBSI Berkshire Hathaway GUARD Insurance Companies Brethren Mutual Insurance Company PARTNERS Briar SILVER Creek Mutual Insurance Company CM Regent Insurance Company Aegis Security Insurance Company Cumberland Insurance Group Agency Network Exchange LLC Farmers Mutual Insurance Company Amerisafe Frederick Mutual Insurance Company AmWINS Program Underwriters Inc. GMI Insurance Auto-Owners Insurance Goodville Mutual Casualty Company BBSI Grinnell Mutual Berkshire Hathaway GUARD Hospitality Insurance GroupInsurance Companies Brethren Mutual Insurance Company J. M. Wilson Briar& Creek Mutual Insurance Company Johnson Johnson Lebanon ValleyInsurance Insurance Company CM Regent Company Method Insurance Services Cumberland Insurance Group Millville Mutual Insurance Company Farmers Mutual Insurance Company Nationwide Company FrederickInsurance Mutual Insurance Company Pie Insurance GMI Insurance Rockwood Casualty Insurance Goodville Mutual Casualty Company Selective Insurance Company Grinnell Mutual TAPCO Underwriters Inc. Hospitality Insurance Group The Hanover Insurance Group J. M. Wilson The Insurance Alliance Network Johnson & Johnson Travelers Lebanon Valley Insurance Insurance Company Tuscarora Wayne Company Method Insurance Services UFG Insurance Universal Property & Casualty Insurance Millville Mutual Insurance Company Company Pie Insurance Westfield Insurance Rockwood Casualty Insurance Windsor Mount Joy Mutual Insurance Selective Insurance Company Company TAPCO Underwriters Inc.

A sincere thank you to all our 2020 Partners.

The Hanover Insurance Group The Insurance Alliance Network Travelers Tuscarora Wayne Insurance Company UFG Insurance Universal Property & Casualty Insurance Company Westfield Insurance Windsor Mount Joy Mutual Insurance Company 17

BOARD OF DIRECTORS

Gregory H. Bennett

Sarah M. Brown, CIC, CRM, AFIS

Famous & Spang Associates Aberdeen, MD

Keller Brown Insurance Services Shrewsbury, PA

Andrew Enders, Esq.

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

Enders Insurance Assocs.

Harrisburg, PA

Jason R. Hess

Lisa A. Leach Goth, CIC

HHM Insurors Coraopolis, PA

Charles P. Leach Agency, Inc. New Bethlehem, PA

William H. Purdy Purdy Insurance Agency, Inc. Sunbury, PA

Michael A. Papa, CIC, MBA

Diversified Insurance Industries, Inc. Hunt Valley, MD

D. Bradley Rosenkilde, Jr. R&A Insurance, Inc. Hunt Valley, MD

18

Tara S. Silfies, CPCU Hampson-Mowrer Agency, LLC Bethlehem, PA

DECEMBER 2020

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

2020-2021

E. Stephen Burnett, CIC, ARM Insurance & Financial Services Wilmington, DE

G. Greg Gunn, CIC IIABA National Director (PA) Gunn-Mowery, LLC Lemoyne, PA

N. Lee Dotson, CIC, AAI Bellevue Insurance Services, LLC Wilmington, DE

Bryan C. Hanes, J.D. Antietam Insurance Associates, Inc. Hagerstown, MD

Christopher J. Miller, CIC Miller Insurance Protection Team Jonestown, PA

Craig S. Mader IA&B Service Group Chairman Craig S. Mader Insurance Agency, Inc. Crofton, MD Richard M. Rankin, CIC IA&B Service Group Vice Chair Murray Insurance Associates, Inc. Lancaster, PA Jason Rodriguez

Prominent Insurance Services Wilmington, DE N AT I O N A L D I R EC T O R S

J. Marshall Wolff, CIC, CPCU Kressler Wolff & Miller, Inc. Easton, PA

PIA Michael P. Ertel, Sr. The Jacobs Company, Inc. Columbia, MD

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

IIABA (PA) represented by G. Greg Gunn, as noted above.

19

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WELCOME NEW MEMBERS Agile Insurance Services LLC Pipersville, PA CDT Insurance Group LLC Indiana, PA Lighthouse Commercial Insurance Inc Havertown, PA Woop Insurance Agency LLC Aston, PA Have a question about your member benefits? Contact: Tim Wonder, VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com

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Complete Mailing Address of the Headquarters or General Business Office of Publisher: 5050 Ritter Road, Mechanicsburg, PA 17055-4879 Publisher: IA&B Service Group Inc., 5050 Ritter Road, Mechanicsburg, PA 17055-4879 Editor: Karen Robison, 5050 Ritter Road, Mechanicsburg, PA 17055-4879 Owner: IA&B Service Group Inc., 5050 Ritter Road, Mechanicsburg, PA 17055-4879 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 A. Total number of copies 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 Outside-County 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 F. Total Distribution G. Copies not Distributed H. Total I. Percent Paid

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DECEMBER 2020

Average No. of Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date 1,380

1,375

1,342 0 0 0 1,342

1,346 0 0 0 1,346

0 0 0 0 0 1,342 38 1,380 100%

0 0 0 0 0 1,346 29 1,375 100%

T R A I N I N G & E D U C AT I O N

Simple, cost-effective way for agencies to process online payments. Start accepting credit cards and e-Checks today through your very own online, company-branded, payment portal.​​ • ePayPolicy charges fees directly to your client • Compatible with mobile devices • Online dashboard to track all transactions • Integrates with most popular management systems • No setup fee, $20 per month, cancel anytime • Secure, PCI level 1-compliant solution • Begin accepting payments with 24 hours of quick setup C O M P L I M E N TA RY W E B I N A R Wednesday, Dec. 9 at 11 AM - 11:30AM Learn how digital payments help agencies address industry concerns through a solution that is solely insurance-focused.

IABforME.com/ePayPolicy

IA&B Members: Shopping your policies?

IA&B Service Group can help protect your assets. We provide: ▲ Errors & Omissions ▲ Cyber Liability ▲ Umbrella ▲ Employment Practices Liability 800-998-9644, option 3 IABforME.com/agency_insurance

UPCOMING WEBINARS DECEMBER 2020 Connect with Other Agents & Get CE Credits Online Register today! 800-998-9644, option 1 IABforME.com/OnlineTraining DATE

TOPIC

TIME

Dec 1-2 CIC - Commercial Casualty Institute

8 AM-5 PM

Dec 2

Agency Value/Mgmt. in COVID-19 Era

10:30 AM-Noon

Dec 3

Financially Surviving Retirement

1 PM-4 PM

Dec 7

Annuities - Consumer Protection/Suitability 9 AM-1 PM

Dec 8

CISR - Commercial Casualty I

8 AM-4 PM

Dec 8

Hour w/ Kevin: Storm Coverage I (PL & CL)

2 PM-3 PM

Dec 9

Agents E&O: Duties, Operations, and More

9 AM-Noon

Dec 9

Understanding Social Security & Medicare

1 PM-4 PM

Dec 10 CISR - Elements of Risk Management

8 AM-4 PM

Dec 10 Cyber Coverage - Data Breach & More

1 PM-4 PM

Dec 15 Flood Insurance and the NFIP

9 AM-Noon

Dec 15 HO Policy Coverage for Modern Family

1 PM-4 PM

Dec 16 Additional Insureds & Certificates

9 AM-Noon

Dec 16 Culture, Ethics, and E&O

1 PM-4 PM

Dec 17 Hour w/ Kevin: Storm Coverage II (More PL) 2 PM-3 PM

PRIMARY AGENT EDITORIAL Editor: Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606

Contributing editors: Jennifer Ross Megan Fioretta Melissa Telesha

SALES Account Executive: Travis Yaga travis.yaga@theygsgroup.com, 717-430-2021

21

POLICYHOLDER RETENTION RATE

OVER

*

90%

Strong and steady, constantly raising the bar. All great accomplishments have a certain level of hazard involved, but AMERISAFE has workers’ comp down to the detail. It’s a large part of why we retain 90%* of our policyholders.

THE BEST PROTECTION IS BEING PROACTIVE.

amerisafe.com - 800.897.9719 *Policyholder retention rate based on voluntary business that we elected for renewal quote: 93.1% in 2019. © 2020 AMERISAFE, Inc. AMERISAFE is a registered trademark of AMERISAFE, Inc. SAFE ABOVE ALL and the AMERISAFE LOGO are trademarks of AMERISAFE, Inc. All rights reserved.