Maryland Primary Agent - February 2016

JANUARY FEBRUARY 20162016 | PENNSYLVANIA | MARYLAND

E-SIGNATURES SIGNED, SEALED, DELIVERED, THE TECHNOLOGY IS YOURS

MONITORING WEBSITE SECURITY

OUR NEW

BOPprime GIVES YOU

more TAILORED COVERAGE

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MILLERS’ NEW BOPprime: IN DE, DC, PA, OH & MD AVAILABLE NOW EXPECTED FOR UNDERWRITING: IN VA STARTING FEBRUARY

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Our upgraded system reduces time and speeds up the process. Our underwriting tools give you greater ability to offer better coverage and/or lower premiums. We give you a BOP to offer coverage that others won’t.

Get even more details at

millersinsurance.com/evenmore 800.745.4555 Rated A- (Excellent) by A.M. Best Rated A Prime (Unsurpassed) with Demotech ©2016, Millers Mutual Group, Harrisburg, PA

IN THIS

ON THE COVER 10

ELECTRONIC SIGNATURES Broader acceptance of e-signature technology is creating greater expectations for usage among customers and agents.

ALSO 16

MONITORING WEBSITE SECURITY Security of the websites you and your staff frequent – and of your own agency’s website – is paramount to protecting your business.

IN EVERY ISSUE 2 3 4 6 8 20 IBC IBC IBC

Chairman of the Board’s Message Ask Our Experts Preventing Errors & Omissions Coverage Corner State News IA&B Partners Advertiser’s Index My Events Classified Ads

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 # 2016-2, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

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Copyright 2016. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

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CHAIRMAN OF THE BOARD’S MESSAGE

STRENGTH IN NUMBERS

T

INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

here’s strength in numbers. And while most of us, as small-business owners, don’t have numbers on our side within our agency, together — we’re 1,400 IA&B member agencies strong – we do. That’s the beauty of an association.

We don’t need to know all of the answers, or to have all of the resources, or to be everywhere at once. We can pull our membership dues and rely on the resulting association resources.

This issue of Primary Agent magazine focuses on tips for small-business owners and, in the process, highlights a few of the many ways that IA&B membership can benefit you and your agency.

I encourage you to give this issue a read and to visit IABforME.com to learn more about what your association has to offer. And the next time you face a roadblock (no matter what hat you’re wearing: business owner, insurance agent, employer) look to IA&B’s staff and resources for assistance.

The value of membership is yours for the taking. Are you taking advantage of it? n

Chair of the Board

Robert S. Klinger, LUTCF, CPIA Vice Chair of the Board

Michael F. McGroarty Sr. Immediate Past Chair of the Board

Diana M. Hornung Hanby, ACSR

MEMBERS E. Stephen Burnett, CIC, ARM Wilmington, Del.

Richard F. Corroon, CPCU Wilmington, Del.

N. Lee Dotson, CIC, AAI Wilmington, Del.

Michael P. Ertel+ Columbia, Md.

Bryan C. Hanes, JD Hagerstown, Md.

John B. Hollister Milford, Pa.

Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.

David C. King Lancaster, Pa.

Best,

Douglas A. Loesel, CPCU Erie, Pa.

Crag S. Mader

Gambrills, Md.

Ann Gallen Moll, CIC

Robert S. Klinger, LUTCF, CPIA Chairman of the Board

Reading, Pa.

Mark J. Monroe

West Chester, Pa.

Joseph R. Pastor, CPCU, AAI Oil City, Pa.

Richard M. Rankin, CIC Lancaster, Pa.

April E. Ressler, CIC Altoona, Pa.

Scott C. Rogers, CPIA* York, Pa.

Glenn R. Strachan

Ft. Washington, Md.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.

J. Marshall Wolff, CIC, CPCU Easton, Pa.

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

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FEBRUARY 2016

Ask Our Experts This month’s answer was provided by Don Bankus, our legal affairs manager.

Question: Where can I go to find out if a company is licensed to do business in my state?

Answer:

W

hile the process varies slightly for each of our three states, simply go to the respective Department of Insurance website and follow these directions: DELAWARE: • Visit: http://www. delawareinsurance. gov/departments/berg/ authorizedcompanies.shtml • Click the “list of companies” link.

• Download and review the Excel spreadsheet of companies that are admitted, approved, and/or authorized to conduct business.

• NOTE: The spreadsheet is updated quarterly (March, June, September and December). If in doubt about changes, contact DOI BERG Resources at (302) 674-7330.

MARYLAND: • Visit: https://www.apps. insurance.maryland.gov/ CompanyProducerInfo/ • Choose “An insurance company” from the list of items to search for and then click “next.”

• Select the line of authority and click “next.”

• Review the list provided (which is updated weekly) one page at a time, or search by company name or NAIC number.

PENNSYLVANIA: • Visit: https://www.insurance.state. pa.us/dsf/gfsearch.html • Click on the first letter of the name of the company you wish to search, or type the company’s name or NAIC number and click “search.”

• The information in the Pennsylvania database is updated weekly.

These state databases include company status (active or otherwise), NAIC number, mailing address and phone number, and lines of authority.

The lists do not include eligible surplus lines insurers.

HOW TO DETERMINE IF A CARRIER IS LICENSED IN MULTIPLE STATES The National Association of Insurance Commissioners (NAIC) maintains a database of these carriers.

• Visit: https://eapps.naic.org/ cis/index.do • In the right column, type the name or NAIC number of the company and click “Find a company.”

• Choose the “licensing” link to the right of the company name.

• NOTE: It’s unknown how often the NAIC database is updated, so it may be wise to use the NAIC database in conjunction with the previously referenced states databases. n

Have a question? Ask our experts!

Rely on our experts to answer your most perplexing questions. Visit the Ask Our Experts section of IABforME.com (find the link in the website footer) to submit your question and review answers to other frequently asked questions. Or email your question to us at IAB@IABforME.com. We look forward to hearing from you.

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PREVENTING ERRORS & OMISSIONS

IS YOUR AGENCY “ALL IN” FROM AN E&O PERSPECTIVE?

By Utica National E&O Program

A

s the NFL’s regular season wound down, some teams developed a rally cry of “all in!” For these teams, that motto symbolized a commitment to give it all they had and do their best to achieve the standard of excellence. That commitment was a pledge to each other and to the team as a whole. Reflecting on that motto and its symbolism, an “all in” philosophy could easily apply to insurance agencies and their commitment to achieving, among other things, a high standard of excellence in Errors & Omissions loss prevention.

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With a new year underway, it is common to reflect on ways of improving agency operations over the next 12 months, including a commitment to E&O loss prevention. While oftentimes there are references to agencies that made “mistakes,” in actuality, agencies don’t make mistakes. People do. Thus, for your agency to have a strong commitment to doing the right thing, it takes every staff member to be “all in” to demonstrate that commitment. This starts with every staff member having a healthy respect for E&O and expressing a personal

FEBRUARY 2016

commitment to the agency and to fellow team members – and with management showing its commitment.

SUPPORT, RESPECT AND FEEDBACK Without management setting the tone and “walking the walk,” – that is, being “all in” – it will be extremely difficult for the agency to achieve the E&O standard of excellence. From an E&O perspective, the best agencies are those where management sets a clear, concise message and lays out its expectations of

the agency. Management that is involved and frequently interacts with the staff helps ensure an awareness of agency issues. Listening to the staff, respecting their thoughts and providing feedback helps staff members grow – and wise management knows that when the staff grows, the agency grows. To show support, it is common for management to attend E&O classes. That’s called leading by example.

For the various levels within the agency, each staff member should be firmly committed to doing the right thing and make certain they possess the necessary technical and sales knowledge. In some respects, an agency is like a chain – it is only as strong as its weakest link.

For example, if there are 10 people in the agency but only nine are “all in,” it may be easy to determine where the greatest E&O claims potential rests. The commitment of each staff member should be to themselves and to the agency as a whole. This applies to producers, account executives, accounting staff, file clerks, claims staff, receptionist, etc. They must be committed to performing each task promptly and professionally, and to clearly and openly treating customers with respect.

Among the key tasks is documentation.

It is crucial that conversations are fully documented in the system and, where appropriate, documented back to the customer to address any potential misunderstandings. You are committed to providing your customers and your carriers with honest and correct information. All staff must do this ethically and to the best of their ability – in other words, showing that they are “all in.”

IDENTIFY OPPORTUNITIES Agencies must reflect back on 2011 and identify opportunities to strengthen the commitment to Errors & Omissions.

Areas to consider include: Regularly scheduling staff meetings – These are a great tool to ensure open and solid communication. Take a portion of each meeting for education on some topic. This could be a technical subject, discussion of a new carrier form or new underwriting guidelines, or possibly to address customers’ questions. Using the time to reinforce agency procedures and expectations such as documentation will contribute to consistency and growth. To enhance the E&O culture, look for each staff member to provide, at the meeting or in a subsequent conversation, thoughts on what they could do better to reduce the chances of the agency facing an E&O claim. This type of feedback is powerful and beneficial.

Educating your customers – Help your agency’s customers gain a better understanding of insurance matters, terms, etc. This will no doubt result in customers who feel respected. Consider using a printed or electronic newsletter to communicate this information.

Combining this with an accountrounding campaign will definitely result in increased sales. It is obviously better to tell someone what is and what is not covered before they have a loss, as opposed to telling them afterwards.

Procedural review – Are some procedures in need of updating? This could be a terrific opportunity to achieve gains in efficiency and professionalism, especially if it has been some time since they have been reviewed. A positive procedure to enhance the E&O culture involves including a cover letter when

sending a policy to a customer. This letter should advise the customer to read the policy, and contact the agency promptly if there are any questions about the policy or if the customer wishes to make any changes. This letter can play a significant role in the defense of the agency should a claim develop.

Attending an E&O loss control seminar – These can be extremely beneficial in educating the staff and enabling them to benefit from E&O guidance from a trained E&O professional. These classes are filed for continuing education credit, providing an additional benefit.

Because most E&O carriers provide a loss control credit for attending these classes, this can also help save money on the agency’s E&O. A STRONG COMMITMENT How would you respond to the question, “What is your agency’s E&O commitment?” Good Errors & Omissions results don’t just happen.

They take a strong commitment from every staff member – so look for 2016 to be a year with an “all in” E&O commitment. n

The Utica National E&O Program supplied this article. Our IA&B Sales Center is the exclusive agent for the Utica E&O program in Delaware, Maryland and Pennsylvania. For questions regarding this article or your E&O coverage, contact IA&B at 800-998-9644 or IAB@IABforME.com.

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COVERAGE CORNER

DRIVE OTHER CAR ENDORSEMENT VS. INDIVIDUAL NAMED INSURED ENDORSEMENT

By Jerry M. Milton, CIC

B

usiness owners love to play games with their autos. They title all autos, including those used by family members, in the name of the business.

They want to combine their personally owned autos with the company-owned autos and insure all of them under the Business Auto Policy. They usually do this for tax purposes. Autos in the name of the business – tax credit. Insurance in the name of the business – tax credit.

These situations present you, as their agent, with a challenge. If not handled

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correctly, there could be gaps in the coverage for the business owners and their families.

SITUATION NO. 1: ALL AUTOS ARE OWNED BY THE COMPANY Neither the business owner nor any family members own an auto. Therefore, none of them have a Personal Auto Policy. The company has a Business Auto Policy. The business owner and family members are relying on the Business Auto Policy to cover their personal activities.

FEBRUARY 2016

The business owner and family members are covered under the Business Auto Policy for the use of any of the company-owned autos since they are permissive users.

However, they are not covered for any auto they personally rent or borrow. The auto must be owned, hired or borrowed by the company (named insured).

Solution: Add the Drive Other Car Coverage – Broadened Coverage For Named Individuals endorsement (CA 99 10) to the Business Auto Policy. This endorsement provides coverage for the

scheduled individuals when they rent or borrow autos. The spouse of a scheduled individual is automatically covered if he or she is a resident of the same household.

It does not cover any auto owned by the scheduled individual or spouse.

The coverages that can be provided are Liability, Medical Payments (firstparty benefits), UM/UIM and Physical Damage. The coverages purchased for each individual will apply to a non-owned auto rented or borrowed by that individual.

Policy for the use of any of the companyowned autos since they are permissive users. However, they are not covered for the ownership or use of any of the personally owned autos or for any auto they personally rent or borrow. The auto must be owned, hired or borrowed by the company (named insured). In addition, The Business Auto Policy does not cover an employee using an auto owned by that employee or a member of the employee’s household.

Are there any disadvantages? Yes!

Solution: Add the business owner as a named insured on the Business Auto Policy. The business owner will be an insured for any covered auto – owned, hired or borrowed. The business owner’s family members will be covered while using any of the company-owned or personally owned autos since they are permissive users. However the family members are not covered for any autos they personally rent or borrow.

This endorsement is not “family member” coverage. It applies to scheduled individuals only. What about children who are not scheduled and become licensed during the policy year and the insured fails to notify the insurer? What about minor children?

The Business Auto Policy is on the hook for any losses incurred by the business owner or family members in their personal activities. What could be the impact on the Business Auto premium?

Could their personal losses involve the company’s Excess Liability policy?

The best solution is to convince the business owner to transfer the ownership of at least one auto from the company to the business owner and purchase a Personal Auto Policy. Unlike the Business Auto Policy, the Personal Auto Policy is a “family” policy.

SITUATION NO. 2: ALL AUTOS OWNED BY THE BUSINESS OWNER ARE SCHEDULED ON THE COMPANY’S BUSINESS AUTO POLICY Neither the business owner nor any family members have a Personal Auto Policy. They are relying on the company’s Business Auto Policy to cover their personal activities.

The business owner and family members are covered under the Business Auto

Solution: Add the Individual Named Insured endorsement (CA 99 17). In order for this endorsement to be attached, the individual named in the Declarations must own a private passenger auto (includes a pickup or van not used for business) that is covered for Liability under the Business Auto Policy The Business Auto Who is An Insured provision is modified to include the business owner’s spouse and family members for the use of any non-owned

auto unless the auto is owned by the family member or furnished or available for their regular use. If any auto of the private passenger type owned by the business owner is covered for Physical Damage, the coverage will apply to a non-owned auto.

Unlike the Drive Other Car endorsement, the Individual Named Insured endorsement is a “family-member endorsement.” However, as with the Drive Other Car endorsement, the Business Auto Policy is on the hook for any losses incurred by the business owner or family members in their personal activities.

Again, the best solution is a Personal Auto Policy.

When they’re playing games, our insurance policies don’t always match up with the game they’re playing. No matter what you do, the Business Auto Policy is not a Personal Auto Policy. n

Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He also serves as our education consultant, working with our CISR, CIC and continuing education programs. Catch him at one of our upcoming seminars: IABforME.com/MyTraining.

WHEN THE BAP AND PAP COLLIDE HEAR MORE from Jerry Milton on the intersection of the Business Auto and Personal Auto policies when he headlines our February Power Hour on the topic. As always, our members-only Power Hour webinars are free, but registration is required.

IABforME.com/PowerHour

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STATE NEWS

ALABAMA ANTIIMMIGRATION LAW IMPACTS NON-RESIDENT LICENSEES As of mid-December, all new and renewing resident and non-resident Alabama applicants and licensees are required to provide either proof of U.S. citizenship or lawful presence in the United States.

STATE OF THE AUTO, HOMEOWNERS’ MARKETS Maryland’s private passenger automobile insurance and homeowners’ insurance markets remain competitive. The Maryland Insurance Administration (MIA) released its annual findings on the effect of competitive rating on the state’s insurance markets in 2014.

For private passenger automobile insurance, the MIA asserted that the number of competitors in the market and Maryland Auto’s (formerly known as MAIF) declining market share indicate that the “moderately concentrated market” remains competitive.

Similarly for homeowners’ insurance, the MIA found the number of competitors and the small market share for the residual market are indicative of a competitive market.

The Maryland Insurance Commissioner is required to report on the effect of competitive rating on the market each year. This stems from the Insurance Reform Act of 1995 which permitted insurers to use rates for certain lines of property and casualty insurance without the commissioner’s prior approval – a self-regulating system referred to as “competitive rating.” insurance.maryland.gov

WHERE’S WALDORF? WHERE YOU‘LL FIND OUR CISR SEMINARS TO PROVIDE a convenient option to agents in southern Maryland, we’re now scheduling CISR courses in Waldorf!

• CISR Commercial Casualty II – April 20 • CISR Personal Auto – Nov. 15

Per the Alabama DOI, applicants for a non-resident license from Maryland (and a handful of other states) cannot comply by submitting a copy of their driver’s license but must provide an alternative proof of citizenship or lawful presence.

WHAT PROMPTED THE CHANGE? The Alabama DOI is implementing this requirement to comply with a much maligned, highly controversial, and often litigated anti-immigration law which was passed by the Alabama legislature in 2012.

One positive to this story: Per Alabama statute, the need to provide proof of citizenship or lawful presence will be a one-time requirement.

ALDOI.gov

IABforME.com/CISR

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HOW DO I COMPLY? New and renewal applicants should continue to apply for licensure of an Alabama non-resident license in the customary manner. After applying for licensure, applicants will be required to submit proof of citizenship or lawful presence by going to the applicable Alabama DOI webpage and uploading proof of citizenship or lawful presence.

Documentation must be received by the Alabama DOI within 10 days of application for licensure.

FEBRUARY 2016

FEDS LESS LIKELY TO MEDDLE IN INSURANCE REGULATION

INSIGHTS ON MED MAL, WORKERS’ COMP MARKETS

Concerns about the Federal Insurance Office (FIO)’s reach continue to be quelled. The office recently appointed new representatives to its Federal Advisory Committee on Insurance (FACI), including Maryland Insurance Commissioner Al Redmer Jr.

Review the status of the state’s medical malpractice and workers’ compensation (WC) markets courtesy of Commissioner Al Redmer’s recently released annual reports.

FACI is tasked with providing advice and recommendations to assist the FIO in carrying out its statutory authority. As a reminder, the DoddFrank Act triggered the creation of the FIO … and subsequent concerns about infringements on state-based regulation of insurance. However, the appointment of Redmer – who is a proponent of state-based regulation, as evidenced by our interview with him that ran in the October 2015 Primary Agent magazine – is a reassuring move.

In December 2013 the FIO presented to Congress its long-anticipated (and nearly two-years-overdue) report on modernization and improvement of insurance regulation. It also calmed the nerves of many by calling for the continued state-based regulation of insurance and, when necessary, federal involvement. Specifically, the report recommended support of the National Association of Registered Agents and Brokers Reform Act (NARAB II), which passed Congress in January 2015 and was considered a victory for independent agents.

MEDICAL MALPRACTICE REPORT HIGHLIGHTS Market share • Seventy insurer groups wrote medical malpractice in Maryland in 2014. This number has remained relatively stable.

• Two companies – Medical Mutual and MCIC – wrote over 60 percent of medical malpractice premiums in 2014.

Claim frequency • Changes in data collection methodology contributed to the significant increases in claims between 2005 and 2014.

• Claims did increase sharply between 2010 and 2013 (when data was collected uniformly), an uptick driven primarily by cardiology claims. However, in 2014, overall claim data decreased to a number close to 2010.

(CEIC) – wrote nearly 65 percent of the market in 2014.

• CEIC was the largest writer, accounting for almost 24 percent of the market in 2014.

• Hartford Fire and Casualty Group had the second largest share of the market at 11.6 percent.

Loss costs • The National Council on Compensation Insurance Inc. (NCCI) filed a 5.3 percent decrease to premium loss costs for 2016.

• The impending change stems primarily from improved claims experience, flat loss ratio trends and an increase in indemnity and medical benefits.

The statutorily mandated report, which also includes a synopsis of relevant 2015 legislative changes, is delivered each year by the commissioner to the Joint Committee on Workers’ Compensation Benefit and Insurance Oversight. insurance.maryland.gov

EASTERN SHORE LEGISLATIVE RECEPTIONS

The General Assembly intervened in the medical malpractice market following drastic premium increases in 2003 and 2004. Since 2005, the insurance commissioner has been required to collect data and report on the market each year.

State lawmakers are better informed on our legislative priorities thanks to two recent receptions on the Eastern Shore.

We teamed up with NAIFA Maryland and MAHU late last year to host a handful of senators and delegates for events in Salisbury and Wye Mills.

WORKERS’ COMPENSATION REPORT HIGHLIGHTS Market share • The top eight WC insurance groups – including the Chesapeake Employers’ Insurance Company

The receptions allowed producers to meet and greet with their elected officials in a casual environment. It’s events like these that build the relationships necessary for effective advocacy, so thanks to those who attended.

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ELECTRONIC SIGNATURES

SIGNED, SEALED, DELIVERED, THE TECHNOLOGY IS YOURS 10

FEBRUARY 2016

When it comes to adopting e-signature technology, there’s typically a great deal of hemming and hawing in our industry. How exactly does it work? Is it legally binding? Will my customers feel comfortable using it? How will my carriers respond?

S

ome issues – how the technology works; the legality of electronic signatures — are clear. Others, such as carrier acceptance, remain less certain (although carrier implementation and acceptance appear to be increasing steadily). Either way, the fact remains that there is a great deal to gain from adopting e-signature technology. Think: increased efficiency and productivity and decreased costs and errors.

What’s more, usage is catching on in other industries. Even the IRS announced last summer that it will expand the use of electronic signatures for individual income tax returns. And with that broader acceptance comes greater expectations for its usage among customers – and agents.

GAUGING COMFORT LEVELS The Agents Council for Technology (ACT) Customer Experience Work Group recently released its Consumer Insurance Journey Recommendations. Among them? To support consumers who increasingly want to use electronic signature technology when purchasing insurance.

According to the work group’s recommendations: Common e-signature protocols must be accepted and implemented by all companies and agents. The time savings for agencies can be enormous, and consumers expect this type of service for applications, coverage rejection and other forms.

While the desire to use e-signature technology certainly isn’t unique to younger generations, younger generations as a whole tend to have a higher initial comfort level with the technology … not to mention a different expectation for speed of service.

,

By IA&B staff

“Millennial consumers don’t want to wait for a packet of paper to be delivered to them by mail,” shared Marcia Berner, ACE Chief Membership Officer at ACORD, in an interview with Rough Notes magazine. Adopting electronic signatures is a key component in competing with the direct writers whose seamless technology workflows appeal to young consumers.

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The same could be said for Millennial agents. The topic recently came up for discussion in our IA&B Futures Program for young agents, where some members expressed frustration over agencies’ slow adoption of the technology.

As Cal Durland, CPCU, director of industry relations at ACORD told Rough Notes: “Agents want to close the sale when the customer is in front of them.” E-signature technology is the tool that allows them to do that. What’s more, the leading e-signature platforms accommodate mobility by allowing access through a mobile browser and with apps for iPad, iPhone and Android devices.

UNDERSTANDING WHAT’S AT STAKE By and large, agents who use e-signature technology report positive outcomes: from selling more and communicating faster, to satisfying efficiency-conscious consumers and eliminating unneeded follow-ups. E-signature provider DocuSign recently quantified the benefits to its new insurance industry customers: sales improved by 15 percent, retention improved by 5 percent, and signing rate increased by 20 percent.

INS AND OUTS OF E-SIGNATURES IT TOOK over a decade for technology – and the manner in which the vast majority of insurance agencies are willing to conduct their daily business – to catch up with the intent and practicality of federal and state laws.

But now many insurance customers, agents and carriers are beginning to embrace e-signature technology.

Learn more about the process, including how to comply with disclosure and consent requirements, by reviewing our online resources.

IABforME.com/electronic_transactions

“When you add up the time savings and multiply that by the number of documents sent daily that require signature,” said Steve Anderson, CIC, president of The Anderson Network, in a LinkedIn post, “significant productivity and expense reduction can be achieved.”

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FEBRUARY 2016

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

For information call (877) 234-4450 or visit auw.com/us.

Š2016 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best.

Insurance plans protected U.S. Patent No. 7,908,157.

It will only be a matter of time before conducting transactions electronically becomes the norm, rather than the exception.

From a carrier perspective, ACT compiled a list of individual companies’ quantifiable successes – successes that trickle down to benefit agents and customers as well: • $10 cost saving per transaction • 61 percent increase in productivity • 81 percent reduction in document errors • 97 percent reduction in turnaround time

LOOKING AHEAD The e-signature method of transacting business in the insurance industry is not going to be a trend; it will be the wave of the very near future. Given the enhancements and advancements in technology and the resolution of the validity and enforceability of electronic transactions in the court systems, it’s expected that it will only be a matter of time before conducting transactions electronically becomes the norm, rather than the exception. n

Beyond these benefits, there are those of ensuring documents are in good order, filled out completely, and stored securely, in turn, reducing E&O problems.

IDENTIFYING ROADBLOCKS First, the good news: Electronically signed contracts and documents have the same legal, enforceable status as traditional written agreements, meaning e-signatures carry the same weight as “wet signatures.” The federal Electronic Signatures in Global and National Commerce Act (commonly known as E-SIGN) and state-enacted Uniform Electronic Transaction Acts established that “a document or signature cannot be denied legal effect or enforceability solely because it is in electronic form.”

PITTSBURGH I-DAY

WEDNESDAY, MARCH 30TH, 2016 Doors Open at 8:00 AM You Must Be Registered to Attend.

I-Day Events Kick Off on Tuesday for the Presidential Dinner and The Main Event on Wednesday Including CE, Exhibits, Luncheon with Speaker, Panel Discussion with Industry Leaders, and Cocktail Reception.

Now the less than favorable news: Some carriers (and their number is dwindling) insist that signatures be obtained with paper and ink. This is despite the fact that, technically, use of electronic signatures does not require carriers’ approval.

While agents are encouraged to abide by their company partners’ direction, there is an ongoing effort to educate carriers about the benefits – and legality – of e-signature technology. Already (at the time of this writing), 13 of the top 15 U.S. insurance carriers are customers of the e-signature provider DocuSign.

And in a few cases, regional carriers are making use of their own proprietary e-signature platforms.

For a list of carriers that have confirmed their acceptance (or refusal) of electronically executed documents, visit IABforME.com/electronic_transactions/carriers.

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FEATURED LUNCHEON

SPEAKER

Dale Beatty served in all positions of a Field Artillery Unit until 2003 when he was selected to become the full time National Guard Readiness NCO for the Statesville Unit. SSG Beatty was deployed to Iraq in 2004.

Visit www.insclubpgh.com or Call The Club Office (412.489.5626) to Register, Exhibit, Advertise, or For More Information

FEBRUARY 2016

ost there when it matters most there when it matters

Competitive In today’s crowded marketplace, Donegal remains highly competitive in price and product offering.

Price – Personal and Commercial Lines rates consistently among the most competitive in the state.

Product – Superior products with enhanced coverages.

And Donegal agencies benefit from a total compensation package that’s one of the best in the industry.

Remaining competitive in price, product and agency compensation… another way Donegal is “There When It Matters Most.”

To learn more visit www.donegalgroup.com or call Rick Kelley at 800-877-0600.

FEBRUARY 2016

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MONITORING

By Steve Anderson, CIC

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WEBSITE SECURITY FEBRUARY 2016

Security of the websites you and your staff frequent – and of your own agency’s website – is paramount to protecting your business. On the following pages, Steve Anderson suggests some tricks of the online trade: products that gauge the security of websites and whether they’re infected by hidden malware.

TEST A WEBSITE’S SECURITY We all access a variety of websites every day to do our banking, interact with friends on various social platforms, and to buy various products. You also access multiple insurance company websites.

It might take a couple of minutes to complete the full test. Once completed, the site will receive an overall grade along with a detailed report. While the detailed report likely will have much more information than you need, the grade is a quick indicator on that particular website’s security.

Have you ever wondered how secure the site you are using is?

There is an easy way to find out.

A secure website is the first line of defense to protecting you online. Avoid using sites that don’t have the best security – especially for any sensitive transactions.

SSL Labs is a collection of documents, tools, and thoughts related to secure socket layer (SSL) security. The site was created to help any Internet user better understand how well SSL is deployed on a website.

SSL Labs is a non-commercial research effort, and they welcome participation from any individual and organization interested in SSL. To test a website’s security, follow these steps: 1. Go to https://www.ssllabs.com/ssltest 2. Type the website address (the domain name) into the box.

3. Some sites you might want to include are your bank, an insurance company, your brokerage account, or Facebook.

4. Put a check in the little box that is under the testing box: “Do not show the results on the boards.” This will prevent the site’s information from showing up publicly.

BEWARE OF WEBSITE “INFECTIONS” Your organization’s website is an extension of and a part of the brand you create. There are not many things worse than having someone navigate to your website and receive a warning that “The Website Ahead Contains Malware!”

The damage to your brand and your credibility will be hard to repair.

Google’s Safe Browsing technology examines billions of URLs (website addresses) per day looking for unsafe websites. Every day, thousands of new hazardous sites are discovered. Many of these are legitimate websites that have been compromised. Below you’ll see an example of the weekly notification email I receive for each site monitored.

5. Click SUBMIT.

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There are not many things worse than having someone navigate to your website and receive a [malware] warning…. The damage to your brand and your credibility will be hard to repair.

These hazardous sites fall into two categories, both of which threaten users’ privacy and security: 1. Malware sites contain code that can install malicious software on users’ computers. Hackers can use this software to capture and transmit users’ private or sensitive information.

2. Phishing sites pretend to be legitimate while trying to trick users into typing in their username and password or sharing other private information. Typical examples are web pages that impersonate legitimate bank websites or online stores.

Malware sites install malicious software on users’ machines to steal private information, perform identity theft, or attack other computers. When people visit these sites, software that takes over their computer is downloaded without their knowledge.

I subscribe to the Sucuri premium service that: • Regularly monitors five of my websites with automatic checks for malware and blacklist status every four hours.

• Ensures that there is no malware, malicious javascripts, malicious iframes, suspicious redirections, Blackhat SEO spam and link injections on my website.

• Checks to make sure these sites are not on blacklisted site lists maintained by Google, Norton, Phish tank, AVG, Opera browser, SiteAdvisor, Sucuri Malware Labs, Yandex, and ESET. A blacklisted website when visited, shows a warning that it is not safe to browse the landing site.

Here is an example of how a blacklisted website looks like in Google Chrome:

Attack sites are used by hackers to intentionally host and distribute malicious software. Compromised sites are legitimate sites that are hacked to include content from attack sites.

Your agency should make sure your website is frequently scanned to check for malware or other malicious code that has been inserted into the site without your knowledge.

The solution I use for my websites is Sucuri (https://sucuri.net), a web-based application that automatically monitors websites to detect malware and any unauthorized changes to these websites.

Sucuri provides me with a one-stop solution for DNS, WHOIS, SSL, and other malware attacks on my websites. It also provides real-time analytics and monitors any changes to your web server files, DNS, WHOIS, and SSL settings.

Sucuri is one of those services I use and pay for that I hope I never need. It is kind of like buying insurance, isn’t it?

Sucuri does provide their online malware scanner (for websites) to the general public for free (limited access). The online free website scanner provides a detailed examination of your website files, malware status, blacklist status, and the URLs scanned from your website. These free services are limited.

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Your website is a valuable tool to engage the online consumer.

Making sure your website is safe for visitors is even more important. It is worth investing a little bit of money to ensure your peace of mind. n

Steve Anderson, CIC, authored this content, which originally appeared as his TechTips. Steve is an authority on insurance agency technology, productivity and profitability – and the presenter of our 2016 webinar series on agency management systems and vendors (IABforME.com/AMSwebinars). Check out his free weekly newsletter, “TechTips,” and other resources for the insurance industry at steveanderson.com.

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PARTNERS PROGRAM

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 help you succeed in the insurance industry.

PLATINUM LEVEL

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ACUITY

Aegis Security Insurance Co

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ARI Insurance Companies

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Auto-Owners Insurance Company

Insurance Agents & Brokers Service Group Inc

Bailey Special Risks Inc

Liberty Mutual Insurance

Briar Creek Mutual Insurance Company

MMG Insurance Company

Conemaugh Valley Mutual Insurance Co

Millers Mutual Group

Countryway Insurance Company

Mutual Benefit Group

Encompass Insurance

Penn National Insurance

Foremost Insurance Group

Swiss Re

GMI Insurance

The Main Street America Group

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Keystone Insurers Group Inc

Progressive Westfield Insurance

Lebanon Valley Insurance Company Merchants Insurance Group

SILVER LEVEL

Mercury Casualty

Access Insurance Company

Millville Mutual Insurance Co

American Mining Insurance Co

PennPRIME Municipal Insurance

Cumberland Insurance Group

Reamstown Mutual Insurance Company

Farmers Mutual Insurance Company of Western Pennsylvania

Rockwood Casualty Insurance

Frederick Mutual Insurance Co Juniata Mutual Insurance Co

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Lackawanna Insurance Group

State Auto Mutual Insurance Company TAPCO Underwriters Inc The Motorists Insurance Group

MAPFRE Insurance

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PSBA Insurance Trust

Travelers

Selective

Tuscarora Wayne Group of Companies

The Philadelphia Contributionship

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FEBRUARY 2016

CLASSIFIED A DV E R TI S E M E N TS

My Events

SOUTHEAST PA PRODUCERS & AGENCIES

February & March 2016 DATE TOPIC

LOCATION

FEBRUARY 2016 2

CISR Personal Lines Miscellaneous

Bethlehem, PA

2

William T. Hold: Choices for Commercial Coverage

Philadelphia, PA

3

William T. Hold: Choices for Commercial Coverage

Newark, DE

3

CISR Personal Auto

Mechanicsburg, PA

16-18

Property & Casualty Licensing Study Course

Mechanicsburg, PA

17

William T. Hold: Condominium Concepts & Coverage

Hagerstown, MD

23-25

Property & Casualty Licensing Study Course

Allentown, PA

24-27

CIC Personal Lines Institute

Harrisburg, PA

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

Contact Ray Reinard at 215-357-8600, Ext. 119.

If you would like to place a classified advertisement, please contact Laura Gaenzle at Laura.gaenzle@theygsgroup. com or (717) 430-2351.

MARCH 2016 1-3

Life & Health Licensing Study Course

Mechanicsburg, PA

3

CISR Personal Lines Miscellaneous

Philadelphia, PA

8

William T. Hold: Condominium Concepts & Coverage

Mechanicsburg, PA

14-15

James K. Ruble Graduate Seminar

Ellicott City, MD

16

CISR Agency Operations

Pittsburgh, PA

16-19

CIC Commercial Casualty Institute

Wilmington, DE

30

William T. Hold: Choices for Commercial Coverage

York, PA

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