Primary Agent - January 2024

JANUARY 2024

IA&B MEMBER

RICHARD CORROON SHARES CAREER HIGHLIGHTS

EXCLUSIVE MEMBER MAGAZINE

ALSO INSIDE CERTIFICATES OF INSURANCE CARRIER DOWNGRADES

Commercial | Farm | Agribusiness | Specialty

JANUARY 2024

CONTENTS FEATURED 8

Q&A WITH RICHARD CORROON Richard Corroon, president of IA&B member agency Weymouth, Swayze & Corroon, shares highlights of his career – from starting up the Willis office in Bermuda, to opening his own firm in Delaware.

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CARRIER RATINGS: HAVE THE NECESSARY PROCESS IN PLACE The hard insurance market may trigger carrier downgrades and, perhaps, rehabilitation or insolvency scenarios. Curt Pearsall, on behalf of the Utica National E&O Program, shares strategies for your agency to prepare.

12 JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B YouTube.com/@IA_and_B IA&B Podcasts can be found at:

EXERCISE CAUTION WHEN USING THE E&S MARKET The E&S marketplace plays a vital role in the industry but has different procedures than standard markets. Review seven best practices to reduce your E&O exposure.

MONTHLY 2 CHAIR’S MESSAGE 3 DON’S DISCUSSION

IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

Periodical postage paid at Mechanicsburg, PA and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2024-01, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2024. All rights reserved. No material January 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.

4 COVERAGE CORNER 6 NEWS & NOTES 15 STAFF PROFILE 17 UPCOMING EDUCATION IABforME.com |

1

CHAIR OF THE BOARD'S MESSAGE

E&O CONCERNS IN A HARD MARKET A lot has been said about this hard market – and rightfully so. For some of us, it’s the first we’ve experienced. And for all of us, it’s been a challenge. It’s truly a great leveler in our industry. No matter what lines of business we write, or what types of clients make up our book, we’re all feeling the strain.

The January Primary Agent looks at another repercussion of the hard market – increased errors & omissions exposure.

Customers may drop or reduce coverage to offset premium increases. Agency staff may make mistakes in their haste to remarket policies. Companies may deny claims due to new exclusions – or they may struggle with their own financial stability. All of these, of course, may contribute to an increase in E&O claims.

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

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

MEMBERS Lisa Parry Becker, CPIA

Bill Purdy

Greg Bennett

Kent Reynolds, CIC

Kate Dawson, CPIA

David Rivell, CIC, CRM

Len Gieseler, LUTCF

Jason Rodriguez, CIC

I would be remiss if I didn’t remind you of IA&B’s own insurance agency. IA&B Insurance Agency Senior Director Kevin Hord and his team are uniquely positioned to build insurance programs for independent agencies. And you can take it from me that their customer service can’t be beat!

Bruce D. Kraft, AAI, CIC

Donna Roper

Debra McAfee

Candace Shoupe, AAI, AIC

While we enter this new year with challenges – the hard market one of them – let’s face it with optimism. The independent agency channel is resilient, our agents’ association is supportive, and I’m confident we’ll come through this stronger than ever.

Shayne McIntosh, CIC

Bob Smyrl, CIC

JPI Insurance Associates Dillsburg, PA

Robert L. Smyrl, Inc. Hatfield, PA

Chris Miller, CIC

Michael Thomas

In this issue, you’ll find ways to reduce your agency’s risk by properly handling certificates of insurance (pages 3 and 4), as well as strategies for responding to carrier rating downgrades (page 10). Find more resources at IABforME.com/EOprevention and more tips during upcoming E&O courses (see IABforME.com/education).

Until next time,

Parry Insurance Langhorne, PA

Famous & Spang Associates Aberdeen, MD Ferri Dawson Insurance Murrysville, PA Evans Hauseman & Richard, Inc. Pottstown, PA Arbor Insurance Group Allentown, PA

McAfee Insurance Agency, LLC Wilmington, DE

Miller Insurance Protection Team Jonestown, PA

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

Lighthouse Insurance Svcs Gambrills, MD

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

NATIONAL DIRECTORS Sarah Brown, CIC, CRM, AFIS Chair of the Board

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

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JANUARY 2024

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

DON'S DISCUSSION

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

Are you a member with a question?

Contact Don at 717-918-9204 or DonB@IABforME.com.

that a previously issued evidence or certificate of insurance has changed, do I have a QUESTION: IfdutyI learn to provide an updated form?

ANSWER: Sometimes a producer becomes aware that a previously issued evidence or certificate of insurance contains information which is no longer correct or valid. Examples might include: ▲ A residential real estate closing is postponed for several weeks, so the referenced coverage policy period would change as a matter of course as to the purchaser’s HO coverage; or ▲ A new customer/insured cancels his or her coverage shortly after having placed it via the agency, and the agency has issued certificates as requested; or ▲ A carrier subsequently cancels a policy due to non-pay.

The short answer to the question is that, if not requested to do so, there is neither a duty nor a requirement to unilaterally and independently revise and resend updated forms. There are no regulatory and/or statutory requirements to do so; there is no industry wide duty, express or implied, to do so; and the instructions

for such forms do not include a requirement that producers engage in such a practice.

As has often been said, these forms, while important in both their purpose and content, merely represent a snapshot in time, with the information provided therein intending to evidence applicable information as of the date and time the respective form was prepared and issued by the producer/ agency. Absent a mistake as to applicable information during your initial preparation, your duty as to that form ends with its transmission to the respective recipient, whether the cert holder, mortgagee, loss payee, and/or additional insured, as the case may be.

DANGER OF UNILATERALLY IMPLEMENTING SUCH A PRACTICE On the flip side, there is no express prohibition against engaging in such a practice. So, if out of the goodness of your heart you implement or engage in such a practice, what you end up doing is creating a duty of care which did not previously exist.

IABforME.com |

This means if you unilaterally begin to issue updated forms of your own volition and at no-one’s request, you hypothetically should be engaging in such a practice under all such similar circumstances and as to all insureds or former insureds when you become aware of a change of information.

FINAL THOUGHTS Given the myriad circumstances and unforeseen events which can crop up on a day-to-day basis, be mindful that a solution you choose to implement, especially if it’s repeated, may unwittingly create a duty of care which otherwise may not exist.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice.

Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

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

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CERTIFICATE OF INSURANCE RESOLUTIONS

By Cathy Trischan New Year’s Day is a time for resolutions, with many undertaking to exercise regularly, save money, and spend more time with family and friends. Why not make a few resolutions involving, what has become for many, one of the most frustrating aspects of being an insurance agent – issuing certificates of insurance? Let’s resolve to do the following in 2024!

GET THE INSTRUCTIONS The most commonly issued certificates of insurance are created by the Association for Cooperative Operations Research and Development (ACORD). ACORD 4

publishes a Forms Instruction Guide (FIG) for each certificate it creates.

The FIG can give helpful advice when faced with a decision about how to complete a particular form.

USE THE RIGHT TOOL FOR THE JOB ACORD has a library of forms, each with a particular purpose. For example, the Certificate of Liability Insurance (ACORD 25) should be used only to provide information on liability coverages. For property coverage, ACORD has a separate form, the Certificate of Property Insurance (ACORD 24). And if the requestor is a mortgagee or loss JANUARY 2024

payee, one of the Evidence of Property Insurance forms (ACORD 27 or ACORD 28) is the better choice.

Always use the most current edition of the ACORD form, and do not complete non-ACORD certificates without first checking with your insurance carrier.

MAKE SURE THE INFORMATION IS ACCURATE Confirm that any information included on a certificate of insurance is accurate. Usually, certificates are created by importing information from policies in the agency’s management system.

This information may have been

COVERAGE CORNER manually entered or downloaded from the insurance carrier. While importing policy data is a timesaver, it is important to double check the information before the certificate is finalized. Errors can and do happen and need to be corrected before the certificate is issued.

business. Many states have statutes and/or bulletins from Insurance Departments regarding what can and cannot be done on a certificate.

Many laws apply to any certificate issued for property or operations in the state. Knowing the certificate law of your home state is not enough.

JUST THE FACTS

Some states’ rules are general, stating, for example, that one cannot use a certificate to change policy terms. Others are stricter, prohibiting, for example, any summary of policy language that varies from the precise and complete language of the policy.

Many laws, and the corresponding fines, apply to those who request certificates that violate a state’s rules. Having a copy of the law or bulletin to show the requestor can be helpful. IA&B has created sample letters for member agents to use in challenging certain requests. Visit IABforME.com/certificates-ofinsurance to access them.

Resist the urge to paraphrase, describe, or explain policy coverage.

It is far better to attach a copy of an additional insured endorsement, for example, than to attempt to explain on the certificate how the endorsement functions. Agents are regularly asked to include language that confirms the coverage meets the requirements of a contract or that coverage applies in a certain way.

Push back on these requests, and let the policy language speak for itself.

NOTICE OF CANCELLATION Under most commercial insurance policies, only the first named insured will receive notice of cancellation.

There are a few exceptions, but in most cases, additional interests are not entitled to such notice. Unless a notice of cancellation endorsement is part of the policy, an agent should not state on the certificate that notice of cancellation will be provided.

Remember, too, that if notice of cancellation is to be sent, that responsibility rests with the insurer, not with the agent. Many agents take it upon themselves to notify parties of cancellation which increases their errors and omissions exposure.

STATE CERTIFICATE OF INSURANCE REGULATIONS Understand the certificate of insurance regulations in the states where you and your clients do

AGENCY PROCEDURES Develop and enforce agency procedures regarding certificates of insurance. Everyone in the agency should be doing things the same way. In some agencies, account managers issue certificates, while in others there may be a certificate department. Still other agencies contract with third party vendors to issue certificates. Regardless of who is issuing the document, make sure that person understands enough to know what is acceptable and where to turn for help when faced with a request that seems improper.

Certificates of insurance are a challenge for most agencies.

Resolving to do things the right way, though, is a first step toward helping employees through the process IABforME.com |

and helping the agency minimize its errors and omissions exposure.

Til next time!

Cathy Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS, TRIP is IA&B’s commercial lines education consultant. She works with our CIC and CISR programs, as well as our live CE webinars. Catch her at one of our upcoming courses: IABforME.com/education

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

LIVE CE WEBINAR

|

Learn more from author Cathy Trischan about certificates of insurance during her upcoming webinar.

CERTIFICATES OF INSURANCE HEADACHES AND REMEDIES JAN. 9 11 PM - NOON

CE PA/DE: 1 GEN | MD: 1 PC IA&B Members: $25 (save $30!)

Non-Members: $55

Register today. IABforME.com 800-998-9644, option 1

5

NEWS & NOTES

LAPLACA INSURANCE ANNIVERSARY

IA&B SERVICE GROUP RECOGNIZED

The LaPlaca Insurance team (and their guests) celebrating the holidays in December 2023from right) accepted the award from the Utica team (from left to right): Alex Nix, Lisa Tucker, and Mark Angelucci.

IA&B Insurance Agency Senior Director Kevin Hord (second from right) accepted the award from the Utica team (from left to right): Alex Nix, Lisa Tucker, and Mark Angelucci.

Congratulations to LaPlaca Insurance, which just celebrated its 35th anniversary! The full-service agency is located in Chalfont, PA, in the northern suburbs of Philadelphia.

Following several decades with The Atlantic Mutual Insurance Company, Dave LaPlaca left his post as SVP of Agency Distribution to start his own agency – LaPlaca Insurance. In 1996 his daughter, Anne LaPlaca, joined the agency after spending 10 years traveling the globe for CIGNA International as Director of International Marketing.

Today the agency has seven employees – four of which are family – and $6 million in premium. The LaPlaca Insurance team prides itself on retention, which is currently 95% across all lines.

Is your agency celebrating a milestone anniversary?

Whether it’s five years or 125 years in the business, we want to acknowledge your accomplishment. Email announcements and images to IA&B Public Relations Director Karen Robison at KarenR@IABforME.com.

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Congrats to our IA&B agency team for their recognition at last fall’s Utica National Insurance Group E&O State Conference.

BIG “I” LEGISLATIVE CONFERENCE

>>>>>

IA&B members in Pennsylvania and Delaware: Save the date to join IA&B for the Big “I” Legislative Conference coming to Washington, D.C. on April 10-12. The annual event brings together approximately 1,000 independent agents from across the country to talk with lawmakers about issues important to them and their clients.

IA&B pays for member agents’ registration fee and hotel room. Watch Agent Headlines e-newsletter for sign-up information in the weeks ahead.

Questions? Contact IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 717-918-9214.

JANUARY 2024

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

Above: IA&B member agents making the rounds in Washington, DC in April 2023.

IABforME.com |

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ON THE COVER

Q&A with

RICHARD CORROON Richard Corroon, CPCU is president of Wilmington, DE-based Weymouth, Swayze & Corroon, an IA&B member agency which celebrated its 90th anniversary in 2023.

Q. First and foremost, tell us how you got your start in the industry and how your career progressed. (And inquiring minds want to know your connection to the global broker Willis Group!)

A. As in many insurance families, I resisted entering the industry after graduation, but my father put some pressure on me after my two years in the shipping industry selling cargo space. My grandfather and his brother founded Corroon & Black which grew through mergers and acquisitions and eventually became the U.S. division of Willis Group, so there was a strong foundation in the industry. I am third generation and now have a son who is fourth generation in insurance (and I’m hoping for more)!

Q. Your career has taken you from Lloyds of London in the United Kingdom to a wholesale broker in Bermuda.

What professional accomplishment are you most proud of and why?

A. I was transferred to Bermuda to start up the Willis office in the early ‘90s, and my primary role was to place high excess liability limits for the largest clients in the Willis Group system. The job was fantastic, and I gained a lot of experience dealing with Fortune 100 clients. Lloyds was a fascinating experience, and I was there when brokers still carried a cardboard binder around the market and got individual underwriters to accept a portion of every risk – typically 1-10%. I feel very fortunate to have had these industry experiences, but my proudest accomplishment was starting my own firm in 2000.

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Q. What does your typical workday look like today, as president of Weymouth, Swayze & Corroon?

A. Like every IA&B member, I start my day with the best intention of completing my to-do list, which includes servicing clients, trying to generate new business, meeting with our various markets, etc. However, it seems like no day goes by without some surprise, like a claim, coverage or contract interpretation request, new business opportunity, or some other issue that lands in your lap.

Q. Weymouth, Swayze & Corroon just celebrated its 90th anniversary – a noteworthy milestone. To what do you credit the agency’s longevity?

A. As I often say, if you have a good product and a good reputation, you take care of your customers, you work hard and “show up” every day, you will succeed in this business. Of course, a lot of the credit goes to our founders, including Philip Weymouth Sr. and Jr., and Bruce Swayze, and I have tried to carry on the tradition of both the Weymouth organization (established in 1933) and Corroon & Black (established in 1905). And of course, having a great team is the key because you cannot be around for 90 years without that!

Q. Your agency has relied on IA&B for its E&O insurance for many years. Why does your agency choose IA&B? A. We love the IA&B organization, the product, and the people we deal with. IA&B – along with Westport and Swiss Re – have been our E&O partners for decades.

JANUARY 2024

Q. Thank you for your past service on the IA&B Board of Directors, including a term as chairman of our Delaware association. What about IA&B membership do you value the most?

A. Being able to pick up the phone or go onto the IA&B website and get instant information on any of the unending complicated issues our industry deals with is invaluable. And industry advocacy is always of the utmost importance. My years on the IA&B board were very rewarding, especially being able to spend time with other small business owners. It reaffirmed my belief in the industry and the U.S. economic system.

Q. What keeps you busy outside of work?

A. During Covid, we purchased a home on the Eastern Shore of Maryland, and we have embraced the Chesapeake Bay lifestyle. I also like to ski, play tennis, and hunt. The youngest of our four children is heading off to college next year so we look forward to the “empty nest” phase!

Thank You

Thanks to these partners for supporting the independent agent network.

PLATINUM PARTNERS Acuity Erie Insurance

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3) Marketing, Branding & Websites 4) Political Advocacy 5) HR & Hiring Solutions 6) Insurance for Your Agency

BECOME A PARTNER TODAY

7 ) Industry News

Interested in becoming a partner?

Reach out today.

8) Market Access & Carrier Relations QU E ST IO NS? CONTACT TIM WONDER, IA&B VP-MEMBERSHIP 717-918-9223 | TIMW@IABforME.COM IABforME.com |

Tim Wonder IA&B VP-Membership 717-918-9223 TimW@IABforME.com 9

CARRIER RATINGS: Have the Necessary Process in Place

BY CURT PEARSALL, CPCU, AIAF, CPIA

Rating agencies such as A.M. Best, Demotech, S&P, etc. periodically dissect the financials of nearly every insurance carrier in the marketplace. Ratings can change based on these reviews, so have a process to secure a carrier’s most up-to-date information.

Every agency should have an established minimum financial rating for the carriers they do business with.

While a minimum rating of “A-” using the A.M. Best rating approach is common, consider how your E&O carrier addresses insolvency in the policy form.

Not many carriers are downgraded each year. For example, an agency could have a carrier going from “A+” to “A.” While agency management may want to examine the situation more closely, there will probably not be further action needed. But what would your agency process be if one of your carriers was downgraded from “A-” to “B”?

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WHAT YOU SHOULD DO Identify the clients with those carriers. If the carrier is used by a wholesaler, the wholesaler should be able to provide this information unless it was captured in your agency system.

Give those clients a written notice. Explain the situation and advise the client that the coverage was placed with an insurance carrier that was recently downgraded.

Include the explanation of the rating as provided by the rating agency. For example, in the A.M. Best methodology, a “B” rating is defined as “Fair,” a “B+” is “Good,” etc.

Inform your client you are not able to attest to the carrier’s future status and that there is a potential for the carrier to be unable to satisfy its obligation to pay claims.

A goal of this written document is to educate the client to enable them to make an informed decision on whether

JANUARY 2024

they want to continue or discontinue coverage with the current carrier. Before doing that, be aware that some state laws can restrict or limit oral or written statements about the financial condition of an insurer. If you are unsure about your state’s law, contact your state/trade association. [If you have questions, please contact IA&B at Advocacy@IABforME.com or 800-998-9644, option 4.]

Include language advising the client that the agency is willing to remarket the account to a carrier with a higher rating. Note that there is no guarantee that the premium will be equal to or less than what the client is currently paying or that the coverage will be identical.

The client must decide and communicate in writing what direction they want the agency to take. Some agencies have the choices listed on a document and require the client to check the box that indicates their decision.

WHAT IF ONE OF MY CARRIERS IS PLACED IN REHABILITATION? If a carrier is unable to meet its financial obligations, the insurance department in the carrier’s home state may initiate a process – known as rehabilitation – to try to help them, before taking the stronger action of declaring the carrier insolvent. This action will often be coupled with a rating downgrade.

In general, you will want to take the same steps in the case of rehabilitation as a carrier downgrade, however, carefully review the rehabilitation orders to best inform your clients. The rehabilitation process varies, and specifics are provided by the state department of insurance which include a contact to address further questions or concerns.

In a rehabilitation scenario, it may be in the best interest of the client to keep their coverage in place. However, the client should make this decision after being presented with details of the rehabilitation. For the agent, it is vital to document any interactions with the client and get a signoff if they choose to stay with the carrier.

Curt Pearsall, CPCU, AIAF, CPIA is president of Pearsall Associates Inc. and consultant to the Utica National E&O Program.

IABforME.com |

This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.

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

ABOUT RATING AGENCIES Review your carriers’ ratings at least once a year, including those used by wholesalers you do business with. Ratings are available for free at AMBest.com and Demotech.com.

CUSTOMER NOTIFICATION LETTERS IA&B members have access to two sample letters for agencies to notify customers of company downgrades.

When personalizing these letters: • Do not create a situation that could be deemed “maliciously critical of the [insurer’s] financial condition.”

• Do not make mention of the State Guaranty Fund.

• Do not provide a financial rating organization’s proprietary information.

Simple notification of a downgrade: IABforME.com/wp-content/uploads/2023/11/ downgrade_ltr.doc For agencies with a policy only to do business with carriers above a certain rating: IABforME.com/wp-content/uploads/2023/11/ downgrade-ltr-policy.doc Questions? Contact IA&B at Advocacy@IABforME.com or 800-998-9644, option 4.

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Exercise Caution When Using the E&S Market

BY UTICA NATIONAL Most agencies would not achieve the success they have without effective and diligent use of the Excess & Surplus Lines (E&S) market. Whether the market is hard, soft, or somewhere in between, it entertains varied exposures and plays a vital role in insuring high property values and risks wanting extremely high liability limits.

Using the E&S marketplace presents some significant challenges and issues that can raise the potential for an increase in the agency’s E&O exposure. It is critical to develop the appropriate processes to handle them. Use these best practices to help address more significant issues:

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1 2

JANUARY 2024

Follow up after sending an application to the wholesaler, to make sure they received it and will be able to provide a proposal by a specified date. Periodic follow-up is also a good idea as you get close to that date to verify a proposal is forthcoming.

Compare what you requested in the application to what is provided in the proposal. There is a good chance the E&S market will not provide all of the coverages you requested in the app. Don’t expect the wholesaler to tell what was and what was not included. Have a process in place for this

because as the retailer, it is your responsibility to do the comparison of what was requested and what was provided. The importance of this cannot be overstated.

3 4 5 6

Secure specimen forms from the wholesaler as the E&S market is known for using some unique policy forms that can drastically modify the coverage. Review these forms in depth as they may contain some unique exclusions or limitations of coverage. Many agents include these forms with the agency proposal.

Encourage your insureds to review them to determine any areas of concern.

Don’t advise the client that coverage is bound until the wholesaler tells you it is. Technically, the wholesaler is the agent of record, so retail agents probably will not have any rights to bind coverage unless authorized and approved by the wholesaler.

Have procedures to get coverage bound at or before the inception date. If coverage is bound afterwards, don’t be surprised if the E&S carrier does not honor the effective date of coverage.

Contact the wholesaler far in advance of the desired effective date of coverage to determine if there will be any major differences in the renewal proposal. In the admitted market, carriers are required to provide conditional renewal notices if the coverage is going to be changed. The E&S market is not held to this requirement. You could literally find out days

IABforME.com |

before the desired inception date that some major terms and conditions have changed.

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Check the E&S policy thoroughly to ensure the coverage is what was ordered. It is amazing how many E&O claims could have been avoided by employing a thorough policy-checking process.

TAKEAWAYS The E&S marketplace plays a vital role in the industry but has different procedures than standard markets. Develop the appropriate procedures because these differences present many significant issues and challenges. Following these procedures can play a key role in reducing the chance of problems developing.

This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice, or any other professional services.

Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.

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

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When customers turn to you for insurance needs

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INSURANCE

© 2023 United Fire & Casualty Company. All rights reserved.

STAFF PROFILE

Get to Know …

Michele Quattrocchi, CISR Territory Manager

IA&B start date: I’ve been with IA&B for four years.

Role at IA&B: In my new role as a Territory Manager, my customer base is the eastern part of Pennsylvania. I service our current customers’ E&O insurance, Cyber Liability, and Agent’s Umbrella policy renewals and midterm policy endorsements. I also cross sell to existing clients, contact prospects for new business opportunities, and help with our RLI personal umbrella program’s customer needs.

Best part of your job: Working with our sales team and getting to know our customers on a professional and personal level.

What did you do before working at IA&B? I have been working in the insurance industry for many years, starting with a receptionist position in a family friend’s agency for two summers while in college. I helped my mom run a small family insurance and real estate agency for a number of years prior to starting a family. By the time my sons were in high school, I found myself back in the insurance industry working as a licensed CSR in a midsized agency in York, PA.

What keeps you busy outside of work?

I worked as an artist for a few years and still enjoy drawing and painting when I can. I also enjoy water sports, with stand-up paddleboarding being my latest endeavor. Oh, and I started golfing last year, which has been a lot of fun. I love spending time with my two adult sons and my parents and keeping up with old friends.

You can reach Michele at: 717-918-9203 MicheleQ@IABforME.com

IABforME.com |

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Watch for registration to open by January 31: IABforME.com/womens-conference

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WILLIAM T.

HOLD S E M I N A R S

TO REGISTER ▲ CALL: 800-998-9644, OPTION 1 ▲ ONLINE: IABFORME.COM 16

JANUARY 2024

WELCOME NEW MEMBERS Deerfield Risk Advisors LLC Havertown, PA Heffers Insurance Kingston, PA

EARN CE WITH IA&B

E D U C AT I O N SCHEDULE

Milestone Insurance Agency Inc York, PA

JANUARY 2024

NEW PARTNERS

Register today! 800-998-9644, option 1 IABforME.com/education

LCBA Highview National Insurance

LIVE WEBINARS DATE TOPIC

TIME

Jan 9

An Hour with Cathy: Certificates of Insurance Headaches and Remedies

11 AM-12 PM

Jan 9

Mastering Business Income: Tools & Tips to Keep Insureds Flush

1-4 PM

Jan 10

CISR-Personal Residential

8 AM-3:45 PM

Jan 16-17

CIC-Agency Management

8 AM-5 PM

Jan 17

CISR-Agency Operations

8 AM-3:45 PM

MISSION STATEMENT

Jan 18

1-4 PM

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

All-Things Ethics: Agent Obligations, Standards, Authority and More

Jan 23

Bots, Crypto, Weed and Other Risks You Never Imagined Insuring (But Here We Are)

9 AM-12 PM

Jan 24

CISR-Commercial Property

8 AM-3:45 PM

PRIMARY AGENT

Jan 25

Big Rig, Big Risk: Mastering Trucking Accounts

9 AM-12 PM

Jan 25

E&O: Duties, Laws, Documentation, and Data Breach

1-4 PM

Jan 30

Claims That Will Convince Your Insured to Enhance Their Homeowners Coverage

9 AM-12 PM

Jan 30

Covering Online Fraud and Employees Who Turn Out to Be Crooks

1-4 PM

Jan 31

CISR-Commercial Casualty I

8 AM-3:45 PM

For information about membership or benefits, contact: Tim Wonder, VP-Membership 717-918-9223 TimW@IABforME.com

VISION A thriving independent insurance agent community.

Editor: Karen Robison KarenR@IABforME.com 717-918-9209 Contributing editors: Jennifer Ross, Megan Fioretta, Sarah Haas Sales Account Executive: Nick Heller | 609-273-8493 nicholas.heller@theygsgroup.com

IABforME.com |

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

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