Primary Agent - December 2009 - DE Edition

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DELAWARE

ALSO IN THIS ISSUE ________________ Positioning and planning for the future Straight talk from Commissioner Ario


I used to think EMC was ju st for niche commercial programs. Then again, I used to think that chocolate milk came

from brown cows.

MAKE EMC YOUR CHOICE FOR MAIN STREET BUSINESS When you think main street business, start thinking about the EMC Choice® Businessowners Program. Small and midsize businesses will enjoy the flexible coverage options designed to meet their specific insurance needs, the added value of free loss control services, plus the responsive service from an EMC branch office nearby. So if you still think EMC is just for niche programs, think again. Count on EMC ® for your main street commercial lines marketing, too. For more details, contact your local EMC branch office.

Valley Forge Service Office: 800.362.3620 | Home Office: Des Moines, IA

www.emcinsurance.com

© Copyright Employers Mutual Casualty Company 2009 All rights reserved


GLOBAL SOLUTIONS MEET LOCAL SUPPORT.

We’re General Casualty®.

We’re the regional insurer you already know, always there to help independent agents with expert field support that understands local needs. Now that support is stronger than ever—because we’re stronger than ever. General Casualty has joined QBE®, providing local hands with the international reach needed to solve even your most complex challenges.

We are now QBE Americas Division. And we’re working for you.

generalcasualty.com General Casualty is a registered service mark of General Casualty Company of Wisconsin. QBE and the links logo are registered service marks of QBE Insurance Group Limited. All coverages underwritten by member companies of QBE. © 2009 QBE Holdings, Inc.


Contents

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PRIMARY AGENT MAGAZINE

A few of our favorite things Health care reform. Commission disclosure. Certificates of insurance. 2009 wasn’t for the faint of heart. To look on the bright side (yes, grab those rose-tinted glasses), the challenges gave IA&B plenty of ways to prove its value to members. Read on for IA&B’s top accomplishments of the year.

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Positioning and planning for the future Approximately 100 agency principals converged in Lancaster, Pa., Oct. 27-28. The draw? IA&B’s inaugural Executive Management Conference featuring MarshBerry and focusing on agency perpetuation.

Page 20 Straight talk with Commissioner Ario

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Pennsylvania Insurance Commissioner Ario paid his second visit to IA&B within two years when he spoke at the August Board of Directors meeting. The executive committee member for the National Association of Insurance Commissioners discussed topics of national concern: health care reform, state versus federal regulation and the role of the agent.

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

4 5 5 6 7 8

Chair of the Board’s Message Member FAQ Glance at Events State News New Members Preventing Errors & Omissions

10 29 30 32 32

Coverage Corner IA&B Partners Technology Update Classified Ads Advertisers Index

Subscriptions: Non-member price: $2.25 per copy or $15 per year. All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two months prior to publication. Advertising rates furnished upon request. Address inquiries to: Primary Agent Editor PO Box 2023 Mechanicsburg, PA 17055-0763 Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347 Periodical postage paid at Mechanicsburg, Pa. and additional entry post office. Postmaster: Send address changes to above address. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2009-12) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2009. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.


WE SAY “GO”.

At Commonwealth Surety we’re turning the world of hard-to-place bonds upside down with our “A” RATED TREASURY LISTED, 50 STATE BONDS. Why shop around, get buried with paperwork and hear excuses? If we can’t write the bond nobody can! We specialize in bonding those “less than perfect” clients, without cash collateral or Letters of Credit, and we’ll get you that “YES” you want to hear in 24 hours or less.

We’ve been writing bonds for small and mid-sized companies for over 20 years. No bond is too big or too small. And by the way, we’ll even write for your perfect clients too. Call now. We’ll get you an express “YES” and a big commission too! TOLL FREE: 1-800-886-7760 FAX TOLL FREE: 1-800-566-7761

WHEN EVERYBODY SAYS “NO”. ..


Board of Directors Officers Kathleen M. Glattly, ChFC, CLU, CPCU Chair of the Board Factoryville, Pa. David Rosenkilde, CIC Vice Chair of the Board Reisterstown, Md.

Kathleen Glattly CPCU, CLU, ChFC, AIM

Chair of the Board’s M

E

S

S

A

G

Robert J. “Buc” Cawley, AAI Immediate Past Chair of the Board Wexford, Pa.

A 2009 refresher

Members Norman F. Basso, CPCU York, Pa. Vincent D. “Chip” Boylan Jr., CPCU Rockville, Md. Henry “Butch” Bradley, Jr. Crofton, Md. Timothy P. Burris Thompsontown, Pa. M. Scott Clemens, CIC, CPCU, CLU, ChFC Souderton, Pa. John T. “Chip” Colwell Jr., CIC Corry, Pa. G. Greg Gunn, CIC Lemoyne, Pa. Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P West Chester, Pa. Diana M. Hornung-Momot, ACSR Wilmington, Del. Linda A. McCann, AAI, CPCU, CPIW Salisbury, Md. Michael F. McGroarty Sr. Pittsburgh, Pa. Scott C. Rogers, CPIA York, Pa. Susan A. Sallada, CIC** Ft. Washington, Pa. William D. Schneider, CPCU, ARM* Pittsburgh, Pa. Robert A. Walbeck, CIC Homer City, Pa.

December already? Yes, 2009 will soon be a distant memory, but until then, I encourage you to refresh your memory. Think about what you’ve accomplished this year. Remember your successes — and your defeats. How you grew, as an insurance producer, as a supervisor, as a friend, a partner, a parent. Year end is a time for reflection. That’s exactly what this issue of Primary Agent magazine is dedicated to: reflection. We’ll look back at 2009 and point out all of the ways the association and its membership have evolved. It’s an excellent opportunity to refresh your memory, or, in some cases, to learn about achievements you may have missed throughout the year. This month’s issue, as it is every year, is also dedicated to the association’s change in leadership. You’ll find an article recapping the Annual Meeting and inaugural Executive Management Conference, as well as an official introduction to the 2009-2010 Board of Directors. Know that these volunteers are dedicated to making 2010 equally as prosperous for your association — and for your agency. As always, we welcome your input, and we thank you for your membership. IA&B’s success is attributable to members’ guidance, our board’s support and the staff’s talent and dedication. We look forward to the year ahead — to soar to new heights! Have a safe and blessed holiday season, Kathleen

David B. Wasson Sr., CIC State College, Pa. James M. Watkins* Dover, Del. King W. “Kip” White, LUTCF Fallston, Md. John S. Yasik, CIC Newark, Del. * IIABA National Director ** PIA National Director

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E


Member FAQ QUESTION: Credit score: Does an insurance score cause a hit on a person’s credit? I’m getting conflicting answers.

ANSWER: To get a definitive answer, it’s best to go to the entity providing the scores in the first place. Other sources may not be reliable.

?

Fair Isaac Corporation is one of the leading providers of credit and insurance scores. Their FICO Credit Scores used by lenders and FICO CBIS (credit-based insurance scores) exclude insurance inquiries from score calculations, so there would be no positive or negative effect on a FICO score as a result of insurance inquiries. Upon researching the issue with the three major credit bureaus: w Equifax currently uses the FICO model and states that certain types of inquiries, including insurance, are not used when calculating the score. This information is available on the Equifax Web site. w Transunion only takes into account hard inquiries (from lenders and creditors). Requests by an insurance

company or agent would be considered a “soft inquiry” and be excluded, so there is no negative effect there either. w Experian did not provide a clear and definitive answer: It depends on the permissible purpose and how the contract between the agency (or the carrier) and Experian was set up. As a result, it is possible that some inquiries would trigger a hit to the individual’s credit score. We would encourage agents to check with Experian (or the carriers through which they are using Experian) how the membership (i.e. contract) is set up to determine whether or not clients could be adversely affected. Finally, if the scores come from another provider, it would be best to check with that provider before giving a definitive answer to your client.

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

Glance at Events D E C E M B E R C A L E N D A R Date

Topic

Location

1

CISR—Personal Residential course

Frederick, Md.

Mistakes that Lead to E&O Claims seminar

Mechanicsburg, Pa.

2

CISR—Personal Residential course

York, Pa.

2-4

James K. Ruble Graduate Seminar

Harrrisburg, Pa.

2-5

CIC—Commercial Property institute

Ellicott City, Md.

8-10

P&C Licensing Study Course

Mechanicsburg, Pa.


Primary Agent | December 2009

State News Taking a stand against account piracy DAIAB unveils enhanced producer-agreements toolkit

The panicked phone call usually comes after the fact. A producer leaves an agency and takes insider knowledge with him. He starts to solicit expiring accounts. And the agency principal begins scrambling. “What can I do to protect my accounts?” is the plea DAIAB often hears.

Truth is, to best protect an agency’s policy expirations, producer agreements should be negotiated up front — when everything is hunky dory. However, the old adage “better late than never” applies. Even if it’s not at the time of hiring, agency principals still can execute binding agreements.

To protect their policy expirations, it’s vital for agency owners

Five considerations for account protection To protect their policy expirations, it’s vital for agency owners to understand their rights under common and contract law. That’s why DAIAB created a members-only produceragreements toolkit. It walks member agency owners through the necessary provisions in producer agreements and spells out the consequences of improperly drafted contracts.

to understand their rights under common and contract law.

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Access DAIAB’s producer-agreements toolkit online. Visit iabgroup.com and click Agency Operations 2 Employee Management 2 Hiring & Managing.

The Web-based toolkit is broken down into five parts — trade secrets, restrictive covenants, compensation plans, damages, and employee v. independent contractor. Plus, it contains sample producer agreements for employees and independent contractors. Trade secrets: Trade secret law is an agency’s ace in the hole. Information classified as a trade secret requires higher levels of protection. Combine that with a restrictive covenant, and an agency’s customer lists and expirations treated as trade secrets enjoy the most protection provided by law. The toolkit describes the classification process and outlines necessary protections. Restrictive covenants: Restrictive covenants are contractual provisions that are key to protecting an agency’s book of business. Especially when they’re combined with a trade secret clause. DAIAB’s tips explain how to define an agency’s ownership of client information and how to use non-piracy agreements to prevent former employees from contacting clients for a specified period of time. Compensation plans: Producer agreements must include compensation — whether it’s salary, commission, bonuses, equity in the book of business, agency ownership or a combination. The toolkit shares the pros and cons of various compensation plans and offers legal wording to solidify the arrangements.

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Damages: Agency owners must stick to their guns. If a producer leaves and tries to lure past clients, it’s crucial that the principal respond with a consistent and planned approach. Otherwise, a precedent is set that could invalidate other non-compete and non-piracy agreements. DAIAB’s guide includes strategies for how to address piracy and tips for how to assess damages. Employee v. independent contractor: Potato, potahto, tomato, tomahto. Not so in the insurance industry. What’s in a name? Quite a bit: It’s important that agency principals word contracts

appropriately to classify producers as employees or independent contractors. The toolkit helps agency owners to determine where their producers fall and to understand the complexities of using the “independent contractor” label.

WELCOME

New Members W. C. Ungerer Insurance Agency Newark, Del.


Primary Agent | December 2009

Preventing ERRORS AND OMISSIONS

COINSURANCE — ARE YOUR CLIENTS INFORMED? PAUL E. WALTERS Paul E. Walters is claims manager for Utica Mutual Insurance Company in Utica, N.Y. Insurance Agents & Brokers Service Group Inc. is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your Errors & Omissions coverage, contact IA&B at (800) 998-9644 or by e-mail at iab@iabgroup.com.

The best way for an agency to protect itself from claims where coinsurance penalties come into play is by explaining to the client what can happen if a risk is not insured to value. Not every client understands the concept of coinsurance.

Coinsurance penalties in property policies are placed in those policies for a reason. A property owner cannot ask for full coverage on a building (or contents or business interruption) at lower limits and expect to collect the same amount of reimbursement should a loss occur as if higher limits were on the

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policy. Carriers protect themselves with coinsurance clauses to help ensure they are getting the proper premium for a risk. In essence, coinsurance operates to help ensure an insured has some “skin in the game.” Yet not all policies are written with coinsurance. An


agent, however, should be aware which clients have a coinsurance clause in their policies and must take certain steps to protect themselves should a client suffer a loss and has a coinsurance penalty assessed. Due to the application of coinsurance, not every client will be able to collect the full amount of damages if there is a loss. If a client has been informed of the consequences of coinsurance penalties when a policy is procured, the client should have no reason to make a claim against an agent. Generally speaking, an agent has no duty to tell a client how much coverage the client should carry. Unfortunately, not all clients are properly informed of either the existence of — or the consequences of — coinsurance. When a loss occurs, agents can be dragged into the litigation process when a client is penalized for not carrying enough insurance, even if it was the client that ultimately provided the figures. The agent failed to notice … Some agents might not have a market for a particular risk and, as a result, be forced to place coverage through a broker or an MGA that has a market. While an agency might be familiar with its standard markets in terms of when a carrier might place coinsurance on a risk, the same may not be true when dealing with markets it cannot directly approach. When dealing with coverage procured through another broker, an agency must recognize when coinsurance is placed on a policy and must inform the client.

Take, for example, a case where an agent went though an MGA for business personal property coverage for a large client. The agent and client agreed on blanket coverage with no coinsurance, and asked the MGA to quote on blanket coverage with no coinsurance. The quote from the MGA did not mention coinsurance. When the proposal was accepted by the agent on the MGA’s system, the agent failed to notice that 90 percent coinsurance would apply if a statement of values was not received within 30 days. Needless to say, no statement of values was submitted, and the policy was issued with 90 percent coinsurance. The agent also missed that the Dec page indicated there was 90 percent coinsurance on the policy when it was issued. A tornado loss destroyed the client’s warehouse, and the carrier determined the business personal property was greatly underinsured. A $2 million coinsurance penalty was assessed. The client sued the carrier and the agent, and the agent sued the broker. The case settled with the agent, carrier and MGA each paying. The agent’s share was $550,000. The client was assessed a coinsurance penalty … The issue of coinsurance can also present a problem for an agency if the agency assists the client in determining limits. As stated above, an agent normally has no duty to inform a client what limits the client should carry. However, there will be instances where the agent assists the client in

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determining limits for a particular type of coverage. For example, a claim was made against an agency based on a coinsurance penalty arising from a business interruption loss. The client wanted his agent’s help in calculating the business interruption limits he should carry. The agent informed the client to give him monthly and annual figures based only on profits. The limit was set at the projected profit figures. What the agent failed to realize is that a business interruption projection must also include a figure representing continuing expenses. A loss occurred, with the client assessed a coinsurance penalty of $160,000. The agent admitted he was unaware continuing expenses needed to part of the calculation. The claim was settled for $135,000. Make sure the client understands The best way for an agency to protect itself from claims where coinsurance penalties come into play is by explaining to the client what can happen if a risk is not insured to value. Document the discussion and make sure the client understands the ramifications of coinsurance. If an agency assists a client in determining limits, the agency must feel very comfortable with the advice given. Otherwise, it might be best for the client to seek the advice of a property appraiser, accountant or some other expert to determine limits.


Primary Agent | December 2009

Coverage CORNER

BUSINESS INCOME AND ORDINARY PAYROLL

JERRY MILTON, CIC Jerry M. Milton teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He is also the education consultant for IA&B, working with CISR, CIC and continuing education programs.

b. Operating expenses, including payroll expenses,

Business Income insurance provides coverage for the actual loss of business income during the “period of restoration.” The Insurance Services Office (ISO) Business Income Coverage Forms stipulate:

That would have been earned or incurred (had no loss occurred) by your operations at the described premises for the 12 months following the inception, or last previous anniversary date, of this policy (whichever is later).

“Business Income means the: a. Net Income (Net Profit or Loss before income taxes) that would have been earned or incurred; and b. Continuing normal operating expenses incurred, including payroll.” If the Business Income form is written subject to a coinsurance requirement, the following condition applies: “We will not pay the full amount of any Business Income loss if the Limit of Insurance for Business Income is less than: 1. The Coinsurance percentage shown for Business Income in the Declarations; times 2. The sum of: a. The Net Income (Net Profit or Loss before income taxes, and

Now I don’t think we have to be brilliant to figure out that the higher your operating expenses, including payroll, the more insurance you have to buy to satisfy coinsurance. Therefore, insureds are given options regarding their payroll. They can include, limit or exclude “ordinary payroll.” If any of you have ever heard me talk about ordinary payroll, you know that this term upsets me. I don’t think people who are working, paying their bills and supporting their families are “ordinary.” But that’s an insurance term, and I have to put up with it. By the way, I can show you “ordinary,” and it ain’t those folks making an honest living.

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The Ordinary Payroll Limitation Or Exclusion endorsement (CP 15 10) allows the insured to exclude ordinary payroll or limit payment of ordinary payroll to 90 days or 180 days. In other words, ordinary payroll expenses will not be paid or will be limited to 90 days or 180 days in the event of a business income loss. Why do this? If we’re not going to pay ordinary payroll, then we don’t have to include those expenses for coinsurance purposes. Therefore, we can purchase less insurance and still satisfy coinsurance. The endorsement does not tell us what “ordinary payroll” is. Instead it tells us what it isn’t. “Ordinary payroll expenses means payroll expenses for all your employees except: 1. Officers; 2. Executives; 3. Department managers; 4. Employees under contract; and 5. Additional Exemptions, shown in the Schedule as: a.

Job Classifications; or

b. Employees.”


That should be the end of the story, but there’s more. There are some folks who argue that the insurer is not obligated to reimburse the insured for all payroll costs even if the Ordinary Payroll endorsement is not added because of the following wording in the Loss Determination Condition of the policy: “The amount of Business Income loss will be determined based on: (3) The operating expenses, including payroll expenses, necessary to resume operations with the same quality of service that existed just before the direct physical loss or damage;” Obviously, those who argue that all payroll costs don’t have to be paid base their argument on the fact that all payroll costs are necessary to resume operations with the same quality of service. I just don’t buy that. We have an endorsement, which costs money by the way, to exclude some of this payroll. If the insured has to pay to exclude this payroll, how can the insurer exclude it free of charge? In the latest revision of the Commercial Property forms, ISO has further complicated the situation by introducing the Discretionary Payroll Expense endorsement (CP 15 04). This endorsement allows the insured to include certain payroll expenses as operating expenses regardless of whether such expenses are necessary to resume operations. I thought the policy paid “continuing normal operating expenses, including payroll.” Why do I need to pay more money to include certain payroll expenses? I guess I’m confused. I can exclude or limit certain payroll — for an additional premium. I can include certain payroll, which I thought was already included — for an additional premium. Y’all take care!

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ASSOCIATION AT WORK

A few of our favorite things Top accomplishments of 2009

Health care reform. Commission disclosure. Certificates of insurance. 2009 wasn’t for the faint of heart. To look on the bright side (yes, grab those rose-tinted glasses), the challenges gave IA&B plenty of ways to prove its value to members. Read on for IA&B’s top accomplishments of the year.


Primary Agent | December 2009

FEBRUARY 2009 February: Addressed certificates of insurance Take this scenario: Independent contractor asks rule-abiding producer to alter certificate of insurance per general contractor’s request. Rule-abiding producer denies request. Contractor finds unscrupulous producer who will modify the certificate. Rule-abiding producer loses the account to unscrupulous producer. Sound familiar? According to participants in IA&B’s Member Agent Panels, requests to modify certificate language are commonplace, as is losing business to producers who are willing to make the change. In November 2008, IA&B successfully prompted the Maryland Insurance Administration to issue a bulletin addressing the alteration of certificates and then moved on to the Pennsylvania Insurance Department. In February 2009, Pennsylvania Commissioner Joel Ario released a notice confirming that the alteration of certificates is improper and subject to enforcement. Now Maryland and Pennsylvania producers can provide proof to their demanding insureds of why they cannot modify certificates. And that helps to level the playing field. Take that, unscrupulous producer! More information: iabgroup.com 2 certificates of insurance

_____________________________________________________________

Recipe for change: Take “most influential lobbyists.” Add IA&B’s new Web-based Political Action Center. Shake up with a controversial issue, such as health care reform. And KABOOM! _____________________________________________________________

February: Launched Political Action Center “Insurance agents rank at the top as the most influential lobbyists in any district and are considered a reliable source of information,” Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, once said. Recipe for change: Take “most influential lobbyists.” Add IA&B’s new Web-based Political Action Center. Shake up with

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In February 2009, IA&B launched its Political Action Center online resource for members.


ASSOCIATION AT WORK

A P R I L a controversial issue, such as health care reform. And KABOOM! IA&B launched its Political Action Center in February. An extension of iabgroup.com, the site allows members to stay on top of state and federal issues by reading bill summaries and status reports, as well as IA&B positions. Plus it simplifies contact with legislators by storing contact information, talking points and form letters. Thanks to the health care reform shouting match – er, um … “debate” – of 2009, plenty of IA&B members gave the Political Action Center a spin. More information: iabgroup.com 2 political action center

April: Released fiduciary resource Say that Option A provides FDIC protection up to $250,000 for an agency’s single fiduciary account. But Option B provides it up to $250,000 per policyholder and per carrier on whose behalf the agency is holding funds. Talk about a no-brainer. Amid the faltering economy of late 2008 and early 2009, IA&B released a three-part tool to help members understand their fiduciary duties under the law, how to stay compliant and which accounts maximize FDIC protection. Part I tackles the state and federal requirements that affect producers who hold monies in a fiduciary capacity and the security of those fiduciary accounts. Part II addresses commingling – what is permissible and what

2 0 0 9 is not, what conditions must be met and what to look out for. And Part III reveals tips on how to choose the aforementioned and highly coveted Option B for FDIC protection. More information: iabgroup.com 2 agency operations 2 fiduciary duties

April: Added to Member Agent Panels IA&B added a new destination on the MAP in 2009: Dover, Del. MAPs, or Member Agent Panels, are meetings where IA&B leadership and staff gauge members’ needs and discuss ways to support them. They were the impetus for the development of IA&B’s HR Solution© and Emergency and Business Continuity Planning Manual. Members volunteer to serve two-year terms that involve meetings each spring and fall in towns across Maryland and Pennsylvania … and, as of April, in Delaware, too. During all 13 lucky 2009 MAPs, members shared their economic, technological and carrier-related challenges and explained how IA&B could help. More information: iabgroup.com 2 about us 2 get involved

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Primary Agent | December 2009

M A Y

2 0 0 9

IA&B worked to have legislation signed into law in May 2009 to restore clarity to a confusing Maryland Condo law. May: Restored Maryland condo law Coverage upheaval! An April 2008 Maryland Court of Appeals decision reversed over 25 years of insurance practice by not requiring a condo association’s master policy to cover damage to an individual unit. The result (along with much head scratching)? Confused producers. Confused insurers. Confused condo association managers. Confused – not to mention underinsured – condo unit owners. IA&B spearheaded a coalition and worked steadily for a fix throughout 2008 and into 2009. And the hard work paid off when Gov. O’Malley signed HB 287 and SB 201 into law on May 19. The legislation restored clarity – and common insurance practice. More information: iabgroup.com 2 (Md.) industry & legal 2 industry

J U N E June: Introduced Pennsylvania HB 1780 It’s a bird. It’s a plane. No, it’s … HB 1780 to the rescue! Pennsylvania members shared with IA&B that several business entities lacked workers’ compensation (WC) coverage. So the association partnered with legislators to draft HB 1780 — legislation that would allow insurers, including the State Workers’ Insurance Fund, to provide WC coverage for

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2 0 0 9 members of an LLC, partners of a partnership and sole proprietors. The bill was introduced in the House in late June, and finally, after marathon (an understatement if there ever was one) budget debates, will be the subject of a House Insurance Committee late fall public hearing. IA&B will be there to lobby for this top legislative priority.


ASSOCIATION AT WORK

J U LY July: Unveiled Emergency and Business Continuity Planning Manual A lot of good an emergency plan does when it goes up in smoke with the agency. That’s why IA&B’s Emergency and Business Continuity Planning Manual is housed online. No matter what happens to the folder or the flash drive that stores the plan, an IA&B member can access a backup copy any where, any time via the Internet.

Launched in July, the resource includes a Web-based input module and a personalized output (read: plan). The end result outlines the various scenarios that can disrupt an agency’s operation and then breaks down implementation of the plan into timeframes — the first 12-24 hours, day one through end of the emergency, and termination of the plan and restoration of normal operations.

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2 0 0 9 According to the Institute for Business & Home Safety, a quarter of the small- and medium-sized businesses that suffer an operation-disrupting crisis never reopen. IA&B’s Emergency and Business Continuity Planning Manual improves members’ odds. More information: iabgroup.com 2 agency operations 2 emergency planning


Primary Agent | December 2009

_______________________________

As the temperatures soared in the summer of ’09, so did emotions. Health care reform was the hot topic. _______________________________

July: Advocated for health agents As the temperatures soared in the summer of ’09, so did emotions. Health care reform was the hot topic. IA&B elevated the issue by including nearly weekly Agent Headlines updates, unveiling an online Health Care Reform Action Center and prompting members to lobby their legislators. In mid-July, association staff escorted several Delaware and Pennsylvania members to Washington, D.C. to lobby their legislators in person. They joined 1,000 other producers in an event that included over 400 meetings – including sessions between DAIAB and IA&B and Sens. Carper, Casey, Kaufman and Specter. Throughout the summer and into the fall, IA&B’s battle cry remained constant: Maintain agents’ role in the delivery of health insurance! More information: iabgroup.com 2 industry & legal 2 industry

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SEPTEMBER 2009 September: Offered Compliance Pitfalls seminar It pays to have friends in high places – like the Pennsylvania Insurance Department. Especially when discussing fear-in-the-pit-of-the-stomach topics, like privacy laws, rebates and surplus lines, to name a few. IA&B of Pennsylvania and the agency joined forces in the fall to host four seminars across the state. The members-only workshops highlighted the 10 most common compliance violations. The Department’s Counsel and Director of Bureau Licensing and Enforcement shared real-world tales, and IA&B staff followed up with tips to remain compliant.


ASSOCIATION AT WORK

OCTOBER 2009 _______________________________

All eyes were on the New York commissiondisclosure brouhaha at the beginning of the year. But by May, the focus traveled south. _______________________________

October: Addressed commission disclosure All eyes were on the New York commission-disclosure brouhaha at the beginning of the year. But by May, the focus traveled south to Maryland, where Insurance Commissioner Ralph Tyler expressed his interest in mandating disclosures during a tradepublication interview. Then in June, Delaware Insurance Commissioner Karen Weldin

Stewart shared that her team was researching the issue. For Maryland, IA&B formed a coalition of like-minded groups to advocate for producers’ interests. The alliance met with Commissioner Tyler in October in hopes of learning his position and plans. The IA&B of Maryland Public Affairs Committee then met in November to discuss strategy for the impending battle. The DAIAB Public Affairs Committee hosted Delaware Department of Insurance representatives at an October event. There, DAIAB shared members’ interest in maintaining the status quo and received favorable feedback.

October: Held inaugural Executive Management Conference Members spoke. IA&B delivered. Word on the street (OK, and via more trusted sources, like Member Agent Panels and member surveys) was that agency principals were in need of management assistance. So in October IA&B held its first annual Executive Management Conference. IA&B hired MarshBerry to craft a program unique to members’ needs for the first conference – a two-day event dedicated to perpetuation planning. Member agency principals learned how to establish financial benchmarks, attract young talent and cultivate leadership among employees, all with the end goal of a successful succession.

The Pennsylvania Insurance Department and IA&B joined forces to bring IA&B members Compliance Pitfalls seminars in the autumn of 2009.

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Primary Agent | December 2009

NOVEMBER 2009 November: Represented member in agency termination case It was déjà vu all over again when IA&B became involved in an agency termination case before the Pennsylvania Insurance Department.

There is no better time to become part of The Cumberland Insurance Group Team. We are now appointing agents in Central Pennsylvania.

Commercial and Personal Lines Competitive Commissions Exceptional Customer Service Financial Strength Experienced Underwriters Marketing Support

Contact Cheryl Oswald at: 610-857-9900, ext. 3117 or coswald@cumberlandgroup.com

ND INS LA I N E R V A

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ANCE UR

In the 2009 situation, ECM reduced a member agency’s commission to 0 percent without abiding by ACT 143 protections. IA&B took on the case, arguing that the elimination of all commission is the same as a termination (called “de facto termination”) against the agent and that the company owed the agency ACT 143 protections, including a rehabilitation period.

STRONG RELATIONSHIPS PRODUCE RESULTS

MBER CU

After all, in January 2008, the association represented another member agency in a termination case against Everett Cash Mutual (ECM). In that case, the company sought to remove policies from a terminated agent long before the law prescribes.

OUP

As this issue of Primary Agent went to print, IA&B was waiting for a decision in the case following Nov. 3 oral argument. More information: iabgroup.com 2 (Pa.) industry & legal 2 legal affairs

Celebrating 165 years of service [ 19 ]

1844 - 2009


ASSOCIATION AT WORK

Positioning and planning for the future Executive Management Conference tackles agency perpetuation

Approximately 100 agency principals converged in Lancaster, Pa., Oct. 27 -28. The draw? IA&B’s inaugural Executive Management Conference featuring MarshBerry and focusing on agency perpetuation.


Primary Agent | December 2009

Introducing the

Executive Management Conference IA&B’s Executive Management Conference is a new forum designed specifically for agency owners to obtain guidance and support on executive-level management topics. The annual event breaks down complex issues into manageable components that principals can implement at their agencies.

CONFERENCE SPONSORS All Risks, Ltd Berkley Mid-Atlantic Group Cumberland Insurance Group Frederick Mutual Harleysville Insurance

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his event was created in response to member feedback,” said Kathleen Glattly, IA&B Service Group Chairwoman. “By and large, member agency owners are baby boomers facing challenges related to retirement.”

The challenges are many: establishing financial benchmarks, attracting young talent and developing leadership among employees, to name a few. “These agency owners have built a career on doing the right things and now need to carry that through to a strong perpetuation plan,” said Glattly, “but many of them don’t know where to begin.” Enter MarshBerry. IA&B contracted with the management-, merger- and acquisition-consulting firm to develop and deliver a two-day, micro-level course with the goal of positioning agency owners to create and implement successful perpetuation plans.

The breakdown The conference began on Tuesday afternoon with a session aimed at providing attendees with a foundation for planning. MarshBerry experts shared a forecast for the changing industry, an update on the merger and acquisition environment, growth fundamentals and

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Mutual Benefit Ohio Casualty Penn National Progressive The Motorists Group


ASSOCIATION AT WORK

real-world examples of successful agency perpetuation. Conference participants delved into the meat of the program on Wednesday. The first session revealed the makings of a unique and lucrative perpetuation plan, while the second focused on plan execution. From there, attendees split into breakouts to learn about financial modeling,

Annual Meeting Prior to the Executive Management Conference, the IA&B Board of Directors held its 2009 Annual Meeting — an opportunity to showcase the year’s achievements, recognize those who have made those accomplishments possible and position the association for 2010. (For more on the association’s recent endeavors, turn to page 12.) The Annual Meeting also marks a change in leadership. A board listing and photos are available on pages 26-27. It is thanks to the dedication of and direction from these volunteers that IA&B can proactively assess members’ needs and provide resources, such as the Executive Management Conference, to meet them.

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estate planning and perpetuation funding. “Our first Executive Management Conference was a resounding success,” said Glattly. “Participants were thrilled to walk away with actual resources and strategies to develop their perpetuation plans, and we, as a Board, are ecstatic that we could make that happen for our members.”


IA&B Financial Reports IA&B remains in good financial health with strong reserves; continues to provide and expand programs, products and services to meet members’ needs, and is poised for future growth. However, due in large part to investment losses, the organization experienced a combined $425 thousand decrease in net assets during fiscal year 2008/09. The accountants’ review for the fiscal year, which ended March 31, is on file at IA&B headquarters. These statements are a summary of that report. Combined member equity decreased $1.110 million to $5.429 million, on $8.351 million of total assets and $2.922 million of total liabilities. Combined net operating loss after depreciation and taxes was $(246) thousand on total revenues of $5.813 million and total expenses of $6.059 million. Additional losses incurred related to pension accounting changes and investment loss, resulting in a combined change in net assets of $(1.110) million.

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ASSOCIATION AT WORK

Straight talk Commissioner Ario touches on hot topics with IA&B Board

Above, Left to right: Ron Gallagher, Deputy Insurance Commissioner; Buc Cawley, IA&B Service Group Immediate Past Chairman; Joel Ario, Commissioner; Kathleen Glattly, IA&B Service Group Chairwoman

Pennsylvania Insurance Commissioner Ario paid his second visit to IA&B within two years when he spoke at the Board of Directors meeting. The executive committee member for the National Association of Insurance Commissioners discussed topics of national concern: health care reform, state versus federal regulation and the role of the agent.

Left: Pennsylvania Insurance Commissioner Joel Ario talks health care, federal regulation and more with the IA&B Board.


Primary Agent | December 2009

Health care Ario opened his presentation by speaking candidly about the need for health care reform, pointing out that the U.S. system is twice as expensive as any other nation’s. “In the early part of this decade, [health care] costs started rising to double digit rates again,” he said. “If you look at it since 2000, the health care sector has roughly doubled. It now takes almost 16 percent GDP. If we don’t do something about cost, it’ll be 20, 25 or 30. At some point the system is going to collapse on itself.” The commissioner expressed how dire the situation is and why it is vital current talks lead to reform at the federal level. He then shared a positive – the common ground that the president and both sides of Congress can agree upon: elimination of preexisting condition exclusions and of health-status rating.

____________________________ “If we don’t do something about cost, … the [health care] system is going to collapse on itself.” ____________________________

Regulation “I think the prospects of federal regulation are much less today than they were before the last election,” said Ario, who noted a paradigm shift from efficiency to effectiveness in Washington, D.C. The commissioner also discussed modernization of the system and called for uniformity. “There is no reason why every state has to have a separate process to do non-resident license approvals,” he continued, then touting the National Insurance Producer Registry. “The system ought to be, if you have a resident license, you’re in good standing. Then you can go get a license in any other state through a one-stop-shopping, electronic clearinghouse.”

Agents’ role Next, Ario discussed the Internet and its role in the insurance marketplace, admitting the associated challenges while encouraging producers to adapt. “You have to know what’s out there and show your value added on top of that,” he said. Then the commissioner drew a comparison to Internet stock-trading companies, which customers initially flocked to before recognizing their own lack of expertise and returning to their brokers. Finally, Ario spoke of commission disclosures and his colleagues’ “war path[s].” He said that his opinion of disclosure requirements has shifted through the years as he learned more about the issue. “[Commission] is a piece of the product,” he said, explaining that disclosing advertising fees and executive salaries is as founded as sharing commissions. “I’m not a fan of new rules about commissions.” Commissioner Ario followed his address with a question-andanswer session. Board members shared independent agents’ concerns on policing Internet sales, the potential repeal of McCarran-Ferguson and commissions relative to company insolvencies.

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____________________________ “I’m not a fan of new rules about commissions.” ____________________________


2009-2010 IA&B Leadership IA&B Service Group Chair Kathleen M. Glattly, CPCU, ChFC, CLU, AIM DGK Insurance & Financial Services Factoryville, Pa. IA&B Service Group Vice Chair David Rosenkilde, CIC ABCO/ICS Insurance Services Inc. Reisterstown, Md. IA&B Service Group Immediate Past Chair Robert J. “Buc” Cawley, AAI Robert J. Cawley Agency Wexford, Pa.

Kathleen M. Glattly, CPCU, ChFC, CLU, AIM

David Rosenkilde, CIC

Chair of Board DGK Insurance & Financial Services Factoryville, Pa.

Vice Chair of the Board ABCO/ICS Insurance Services Inc. Reisterstown, Md.

Delaware Association of IA&B Chair John S. Yasik, CIC Poland & Sullivan Insurance Inc. Newark, Del. Delaware Association of IA&B Vice Chair Diana Hornung-Momot, ACSR Thomas J. Hornung & Associates Wilmington, Del. IA&B of Maryland Chair Linda A. McCann, AAI, CPCU, CPIW Bay Shore Insurance Inc. Salisbury, Md.

Robert J. “Buc” Cawley, AAI

Norman F. Basso, CPCU

Vincent D. “Chip” Boylan, Jr., CPCU

Immediate Past Chair of the Board Robert J. Cawley Agency Wexford, Pa.

E.K. McConkey & Co. Inc. York, Pa.

Willis of Maryland Inc. Rockville, Md.

Henry “Butch” Bradley Jr.

Timothy P. Burris

M. Scott Clemens, CIC, CPCU, CLU, ChFC

The Pennoyer Group Inc. Crofton, Md.

Sausman Insurance Agency Thompsontown, Pa.

John T. Fretz Insurance Agency Souderton, Pa.

John T. “Chip” Colwell, Jr., CIC

G. Gregg Gunn, CIC

Rossbacher Insurance Service Corry, Pa.

Gunn-Mowery LLC Lemoyne, Pa.

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

IA&B of Maryland Vice Chair King W. “Kip” White, LUTCF American Insurance Fallston, Md. IA&B of Pennsylvania Chair Norman F. Basso, CPCU E.K. McConkey & Co. Inc. York, Pa. IA&B of Pennsylvania Vice Chair Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Francis Hall Insurance & Risk Management Services West Chester, Pa. IIABA National Director William D. Schneider, CPCU, ARM Henderson Brothers Inc. Pittsburgh, Pa. IIABA National Director James M. Watkins Pfister Insurance Inc. Dover, Del. PIA National Director Susan A. Sallada, CIC Universal Service Agency Inc. Ft. Washington, Pa.

Francis Hall Insurance & Risk Management Services West Chester, Pa.


Linda A. McCann, AAI, CPCU, CPIW

Michael F. McGroarty, Sr.

Thomas J. Hornung & Associates Wilmington, Del.

Bay Shore Insurance, Inc. Salisbury, Md.

McGroarty & Bradburn Insurance, Inc. Pittsburgh, Pa.

Scott C. Rogers, CPIA

Susan A. Sallada, CIC

William D. Schneider, CPCU, ARM

The Glatfelter Agency York, Pa.

Universal Service Agency Inc. Ft. Washington, Pa.

Henderson Brothers Inc. Pittsburgh, Pa.

Robert A. Walbeck, CIC

David B. Wasson, Sr., CIC

James M. Watkins

R. E. Walbeck Agency Inc. Homer City, Pa.

Wasson Insurance Agency Inc. State College, Pa.

Pfister Insurance Inc. Dover, Del.

King W. “Kip” White, LUTCF American Insurance Fallston, Md.

John S. Yasik, CIC Poland & Sullivan Insurance Inc. Newark, Del.

2009 – 2010 Board of Directors

Diana M. Hornung-Momot, ACSR


Platinum Profile Insurance Agents & Brokers proudly recognizes The Travelers Companies, Inc. as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization. FEATURED PARTNER The Travelers Companies, Inc. CHIEF EXECUTIVE OFFICER Jay Fishman, Chairman & CEO COMPANY LOCATIONS EXECUTIVE OFFICES: New York, Hartford, Conn., Saint Paul, Minn. LOCAL OFFICES: Pittsburgh, Pa., Philadelphia, Pa., Blue Bell, Pa., Wyomissing, Pa., Mechanicsburg, Pa. and Hunt Valley, Md. A.M. BEST RATING A+ (superior)**

“Travelers values the 13,000 agents around the country who sell our policies. We are all dedicated to helping consumers find the right insurance to meet their specific needs. Travelers appreciates the continued partnership and commitment to providing the highest level of customer service.” – Kirk Larsen, Regional President

ravelers is one of the largest providers of property casualty insurance products in the United States. Our diverse portfolio of offerings includes a wide range of coverages for both personal and commercial customers. A Fortune 100 company, Travelers has 33,000 employees and 2008 revenues of approximately $24 billion.

T

In business for more than 140 years, Travelers has been an industry leader from the start. The company wrote the first auto policy in 1897 and has continued to lead the industry in the development of innovative products

and services. From identity theft coverage to wedding insurance, we pride ourselves on offering products that are in-synch with our customers’ evolving risks. We also offer discounts for growing sub-segments like hybrid car owners and coverage enhancements for commercial properties to upgrade to green building materials and systems following a covered loss. While delivering all the capabilities of a national carrier, Travelers possesses a unique local expertise that enables us to adapt our innovative products, services and technology to specific local market needs. We think nationally and act locally. For example, through a state-dedicated product and pricing team, we can take our products and generate rates specific to the unique characteristics of a state, a county, a city and even a zip code. Our team comprises underwriting, claims and service employees who work through our six offices in Maryland, Delaware and Pennsylvania, and are all familiar with the local needs and wants of our agents and insureds.

We are committed to supporting our more than 13,000 independent agents across the United States in many ways. Agents who partner with Travelers have access to our marketing program and tools, accessible via state-of-the-art Web sites. Travelers also offers a wide range of customer acquisition programs, including print ads, public relations tools and direct mail pieces. Represented by the red umbrella, Travelers is one of the most recognized insurance brands in the country. Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance in-synch with evolving risks. For more information on being in-synch, visit www.travelers.com.

**A.M. Best’s rating of A+ applies to certain insurance subsidiaries of Travelers that are members of Travelers Insurance Companies pool; other subsidiaries are included in another rating pool or are separately rated. For a listing of companies rated by A.M. Best and other rating services visit www.travelers.com. Ratings listed herein are as of October 20, 2009, are used with permission, and are subject to changes by the rating services. For the latest rating, access www.ambest.com.


Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers. Thank you for your continued sponsorship.

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

PLATINUM LEVEL

BRONZE LEVEL

Berkley Mid-Atlantic Group Erie Insurance Group Harleysville Insurance Insurance Agents & Brokers Service Group Inc Millers Mutual Group Millville Mutual Insurance Co Mutual Benefit Group Penn National Insurance Selective Swiss Re The Main Street America Group Travelers Utica National Insurance Group

AAA Insurance

GOLD LEVEL

Insurance Alliance of Central PA Inc

Ohio Casualty Progressive

Keystone Insurers Group Inc

help you succeed in the insurance industry.

DO YOU SEE YOUR NAME? To become an IA&B Partner, choose the sponsorship package that matches your commitment of support. Contact the Member Sales Center at (800) 998-9644, (717) 795-9100 or visit us online at www.iabgroup.com to get started.

SILVER LEVEL Aegis Security Insurance Co American Mining Insurance Co Cumberland Insurance Group Donegal Insurance Group Frederick Mutual Insurance Co Harford Mutual Insurance Co Juniata Mutual Insurance Co MMG Insurance Company Private Client Group PSBA Insurance Trust The Motorists Insurance Group Westfield Insurance Zenith Insurance

Agency Insurance Company Allied Insurance Briar Creek Mutual Insurance Company Builders Insurance Group Capitol Insurance Company Chubb Group of Insurance Companies Companion Property & Casualty Group Countryway Insurance Company Encompass Insurance Foremost Insurance Group Friends Cove Mutual Ins Company Goodville Mutual Casualty Company Grange Insurance Companies Hanover Fire & Casualty Insurance Company Insurance Placement Facility of PA Lebanon Mutual Insurance Company Mercer Insurance Group Merchants Insurance Group Mercury Casualty Penn Millers Insurance Company Penn Prime Municipal Insurance PMSLIC Insurance Company Reamstown Mutual Insurance Company Rhoads & Sinon LLP Rockwood Casualty Insurance State Auto Mutual Insurance Company TAPCO Underwriters Inc The Brethren Mutual Insurance Company The Mutual Service Office Inc The Philadelphia Insurance Companies Tuscarora Wayne Mutual Insurance Company UPAC Insurance Finance Primary Agent December 2009


Primary Agent | December 2009

Technology U P DATE

BILL MURRAY Bill Murray is IT risk, security & compliance manager for

INFORMATION SECURITY CONCERNS IN HOTELS AND HOTSPOTS

Westfield Insurance, which runs a blog where the major part of this article was originally published. Bill can be reached at WilliamMurray@westfieldgrp.com. For more information about ACT, visit www.independentagent.com/act or contact Jeff Yates, ACT Executive Director at jeff.yates@iiaba.net. This article reflects the views of the author and should not be construed as an official statement by ACT.

More and more of us are using our computers while we are on trips and are making use of the wireless hotspots that are popping up everywhere. I want to discuss some risks associated with connectivity in these environments and offer some simple things that you can do to reduce these risks.

Avoid imposter hotspots Most hotels and wireless hotspots offer a number of wireless access points to connect to. Each one will appear separately in your wireless network list. You should check with the establishment you are at as to which ones are “official” and which ones are not. Many times scammers set up an

[ 30 ]

access point named something similar to those provided by the establishment. These rogue access points can be set up to perform a classic manin-the-middle attack known as an “evil twin” to forward all your traffic to a real access point and simply capture everything you are doing online. Another scam is to offer you access at an additional fee.


Watch for peeping Toms

Avoid neglect

When entering your ID and password in public places, take extra care to watch for people looking over your shoulder. “Shoulder surfing” it is sometimes called. It does happen.

Don’t leave your laptop sitting all alone when you get up and get another coffee or cheeseburger. It may not be there when you get back to your seat. Same goes for USB drives. It is pretty easy to swipe them without notice.

Prefer wires

Create codes

Wireless connectivity can be implemented securely, but if you have a choice between a wireless access point and plugging your laptop into a network jack, choose the network jack.

Encrypt your hard drive and USB drives, or at least sensitive data or subdirectories on them. If the unthinkable happens and your laptop is lost or stolen, let the most significant thing the thief gets be the laptop. It may sound like a hassle, but losing $1,000 on a laptop is a whole lot better than a case of identity theft for you and any other people whose information you have stored. Same goes for information about where you live, your children, relationships you are in, etc. Any of this information could be used against people you care about.

Set up shields It is important to have your personal firewall turned on and configured with a restrictive rule set when attached to nontrusted networks. What I mean by a setting a restrictive rule is simply configuring your firewall to allow only software you trust to access the Internet and to block all other software and network traffic. Anti-virus software should also be enabled, have real-time protections turned on and be configured to download anti-virus signature updates automatically. These are relatively simple things to do.

Westfield regularly publishes a blog containing practical security tips for agents and other industry participants at www.infosec.westfieldinsurance.com. See also the “Security & Privacy” section of the ACT Web site at www.independentagent.com for additional information on agency-security issues.

Jump through hoops If you are doing work for your company, and it has VPN (Virtual Private Network) capabilities, you may be safer connecting to the Internet this way. It may sound strange – connecting to the Internet to connect to your company to connect back to the Internet – but your company has protections in place to block malicious traffic, attackers and Web sites. If you establish an encrypted VPN tunnel to them and surf through their network to the Internet, you are adding a few controls that can protect you. Find a hiding spot Keep your laptop powered off when you leave it in your hotel room. Lock it in the safe if it will fit. If you just lock the screen (control alt delete), there are vulnerabilities that could be exploited while you are not there to gain access to your software and data.

Make Our Experience, Your Advantage. The Harford Mutual Insurance Companies 165 years experience in Commercial Lines Join our team today. Contact us to learn more:

www.harfordmutual.com 800-638-3669 The Harford Mutual Insurance Companies 200 North Main Street Bel Air, Maryland 21014-3544

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Classified ADVERTISEMENTS AGENCY MANAGER Manage and grow mid-size agency, primarily personal lines, located in Southeast PA. Equity position with eventual purchase opportunity. Send resume in confidence to: Editor #202, PO Box 2023 Mechanicsburg, PA 17055.

SOUTHEAST PA PRODUCERS & AGENCIES Professional agency since 1926 located in Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at (215) 375-8600, Ext. 119.

If you would like to place a Classified Advertisement, simply fax your ad on company letterhead to (717) 795-8347, and we will take care of the rest.

Ad Index Commonwealth Insurance Co . . . . . . . . . . . . . .3 Cumberland Insurance Group . . . . . . . . . . . . .19 EMC Insurance Companies . . . . . . . . . . . . . . .IFC General Casualty . . . . . . . . . . . . . . . . . . . . . . . . .1 Harford Mutual Insurance Co . . . . . . . . . . . . . .31 IA&B Series Ads . . . . . . . . . . . . . . . . . . . . . . . .IBC IA&B Partners Program . . . . . . . . . . . . . . . . . . .29 Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC Millers Mutual Group . . . . . . . . . . . . . . . . . . . .11 Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .32 Preferred Property Program . . . . . . . . . . . . . . .32 [ 32 ]



In Pennsylvania 2307 Menoher Boulevard • Johnstown, PA 15905 814-255-7878 • 1-800-452-0297 • Fax: 814-255-6010 In Maryland 111 Warren Road • Suite 1B • Cockeysville, MD 21030 410-628-1744 • 1-800-759-7779 • Fax: 410-628-6914 In Ohio 635 Park Meadow Road • Suite 206 • Westerville, OH 43081 614-794-0800 • 1-800-701-5587 • Fax: 614-794-0840 In West Virginia 706 Bluestone Road • Beckley, WV 25801 304-253-5147 • Fax: 304-253-5060

interstate-insurance.com


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