Primary Agent - July 2011 - PA Edition by Insurance Agents & Brokers Service Group Inc

PENNSYLVANIA

ALSO INTHISISSUE: _________________ Member profile: old and new media collide 7 tips for selecting an ad agency

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Contents PRIMARY AGENT MAGAZINE The new marketing mix: Where will you meet your customers? Tried and true marketing? Try tired and failing. The days of finding success from a cookie-cutter set of initiatives have long gone. Marketing savvy today stems from an appreciation of flexibility and variety and an understanding that the customer knows best.

Page 12

Old and new media collide: How the Teeter Group found a marketing balance When April Ressler purchased the Teeter Group in 2004, the agency was on a “maintenance” track. The three-person shop in Altoona, Pa. had a solid but stagnant book of business and an owner who was ready to retire. But Ressler saw growth potential.

Page 18 Tips for selecting a graphic design firm or advertising agency The selection of an individual or firm to handle your marketing is one of the most important decisions a small company can make. Read on for seven tips to save time (and potential expense) when choosing a marketing partner.

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.

Get social with IA&B

Page 23

In every issue 3 4 5 6 8 10

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

17 21 25 28 28 28

IA&B Partners H.R. Headquarters Technology Update Advertisers Index Classified Ads Last & Least

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 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 # 2011-7) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2011. 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.

SPEAK UP! YOUR JOB DEPENDS ON IT! SUPPORT AGENTPAC — your voice IN THE STATE CAPITOL. AgentPAC is your state political action committee and the collective voice of independent agents in the state capitol. Issues that affect your job are at stake, and backing legislators aligned with IA&B’s government affairs agenda depends on your support. Watch for Grassroots Action Alerts prompting you to contact your legislators on specific issues, and consider donating to AgentPAC at a level that speaks (loudly) to policymakers that support our cause.

LEARN MORE AND CONTRIBUTE ONLINE AT IABGROUP.COM/AGENTPAC.

Your voice in the state capitol.

Glance at Events J U L Y

C A L E N D A R

Date

Topic

Location

CISR: Commercial Casualty Course

Reading, Pa.

CISR: Commercial Casualty Course

State College, Pa.

CISR: Commercial Casualty Course

Wilkes-Barre, Pa.

William T. Hold Seminar

Lancaster, Pa.

William T. Hold Seminar

Philadelphia, Pa.

CISR: Agency Operations Course

Pittsburgh, Pa.

CISR: Agency Operations Course

Altoona, Pa.

CISR: Commercial Casualty Course

Lehigh Valley, Pa.

CISR: Commercial Casualty Course

Mechanicsburg, Pa.

CISR: Commercial Casualty Course

Hagerstown, Md.

Insuring Contractors Seminar

Mechanicsburg, Pa.

CISR: Commercial Casualty Course

Baltimore, Md.

Insuring Contractors Seminar

Philadelphia, Pa.

On-Demand: Understanding the NFIP — Available anytime, anywhere you have Web access. Visit iabgroup.com/on-demand

Board of Directors Officers David Rosenkilde, CIC Chair of the Board Reisterstown, Md. Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P Vice Chair of the Board West Chester, Pa.

David B. Rosenkilde Sr., CIC

Chair of the Board’s M

Kathleen M. Glattly, ChFC, CLU, CPCU Immediate Past Chair of the Board Factoryville, Pa.

Members Joyce M. Bailey, CIC, CRM, CPIW Newark, Del. 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. John T. “Chip” Colwell Jr., CIC Corry, Pa. N. Lee Dotson, CIC, AAI Wilmington, Del. John L. Frankenfield Telford, Pa. G. Greg Gunn, CIC Lemoyne, Pa. Diana M. Hornung Hanby, ACSR Wilmington, Del. Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa. Robert S. Klinger, LUTCF Germantown, Md. Michael F. McGroarty Sr. Pittsburgh, Pa. Ann Gallen Moll, CIC Reading, Pa.

Improving the independent agent’s image IA&B’s recent agency-principal survey and Member Agent Panel meetings pointed to the same conclusion: The independent agency system’s image needs a facelift. Roger that. Competition in the personal-lines market is fierce. And, thanks to direct writers’ hefty advertising expenditures and price-based messaging, the public now views insurance as a commodity. Which, of course, equates to a lack of understanding of an independent agent’s value. Hence the desire of members — and the independent agency system, as a whole — to educate the public and adjust consumers’ perceptions. Plans are in the works to chip away at this on a large scale. At the same time, opportunities exist on a micro level, opportunities for individual agencies to differentiate themselves and show their value in their communities. This issue of Primary Agent magazine offers perspectives and tips on doing just that. Read on, and then stay tuned to IA&B in the coming months to learn more about broader campaigns to support the independent agency system. Until next time, Dave

Scott C. Rogers, CPIA* York, Pa. Susan A. Sallada, CIC** Ft. Washington, Pa. David B. Wasson Sr., CIC State College, Pa. James M. Watkins* Dover, Del. King W. “Kip” White, LUTCF Fallston, Md. * IIABA National Director ** PIA National Director

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Member

FAQ QUESTION: Should a change of employer be reported to the Department of Insurance? ANSWER: Indirectly, yes. Every producer has his or her employer information on file with the state regulator. While there is no direct requirement to report a change of employer, the statute requires that a producer’s change of address be reported to the regulator. In Delaware, Maryland and Pennsylvania, the timeframe to report a change of address is 30 days. All three state regulators have interpreted the statute to extend to the business address, not just the mailing or residential address. While absent a separate action the chance of enforcement is likely slim (particularly since most producers will update the information when they renew their license), it is prudent to proceed with the notification within the 30 days allotted. In addition, since many producers choose their employer’s address as their mailing address, they would not receive any communications from the Department of Insurance (unless the mail is forwarded by their former employer).

How to proceed? The simplest way is probably to use the National Insurance Producer Registry at www.nipr.com, Address Change Request feature. There should be no charge for this service.

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!

State News Primary Agent | July 2011

Polishing up the independent agent’s image What does that mean for you? IA&B’s guidance on implementing a national branding campaign, Trusted Choice, along with regional-level, supplemental public relations and marketing efforts – efforts based upon member research.

The value of independent agents is vastly misunderstood. Not to mention under fire by a barrage of direct writers’ pricey advertising campaigns. IA&B member agents report that their image in the public’s eye is of top concern. In fact, a recent study of member agency principals found that 64 percent look to the association for assistance with branding and promoting the independent agency system’s value. And agents echoed that feedback at recent Member Agent Panel (MAP) meetings. (See box below.)

Research

In response, the IA&B Board of Directors named branding and marketing a top priority for the association in the months and years ahead.

Understanding Trusted Choice This nationwide campaign, available to all IA&B members as of Sept. 1, combines national advertising exposure with coordinated, individual efforts at the local level. Trusted Choice is a member benefit spearheaded by the Big “I” national association, to which all IA&B members belong. Member agencies, as well as insurance companies that sell through independent agents, fund the campaign. The campaign provides members with national advertising exposure, including broadcast media buys (see sidebar for upcoming ad flights) and an extensive online and Facebook presence, that direct the public to an agency locator at www.trustedchoice.com. What’s more, members can utilize customizable advertisements, a library of consumer content and syndicated website content feed.

Educating the public on independent agents’ value is key. During the spring 2011 MAP meetings, members used the following terms and phrases to highlight their differentiation points. IA&B’s upcoming marketing and public relations efforts will capitalize on these messages. Advocate

Expert

Professional

Choice of carriers

Guidance

Choice of coverages

Hands on and face-to-face

Claims assistance

Knowledgeable

Reversing the “dumbing down” of buying insurance

Community involvement

More than price

Counseling

More than a policy number

Customized

Personal relationship

Service and advice Trusted advisor Understanding complexities

Taking the next step Look to IA&B for tips on leveraging Trusted Choice. The association will walk members through utilization and supplement the campaign with regional-level public relations and marketing efforts. The goal? To educate the public on who independent agents are and what value they offer – the messages prioritized by members in IA&B’s research. IA&B will supply additional information in the coming months on how best to embrace Trusted Choice and how to support regional efforts to enhance independent agents’ image. In the meantime, learn more at www.TrustedChoice.com/agents.

Tune in for Trusted Choice July advertising schedule on TNT* Dates

Time

July 11-15 July 11-17 July 11-17 July 16-17 July 18-22 July 18-22 July 18-24 July 18-24 July 23-24

6 a.m.-2 p.m. 8-11 p.m. 12-3 a.m. 6 a.m.-6 p.m. 6 a.m.-2 p.m. 5-7 p.m. 8-11 p.m. 12-3 a.m. 6 a.m.-6 p.m.

# of 30-second spots 5 4 5 2 5 2 2 5 2

* The September 2010 through August 2011 cable advertising schedule includes spots on The History Channel, USA, Fox News, The Discovery Channel, TNT and The Weather Channel.

Certificates: new ACORD 25 to be used by July, not May

Word to the wise about life insurance and annuity sales

Agencies not showing the 05/10 version of ACORD 25 on their agency management system have a twomonth buffer. IA&B recently contacted ACORD based on inconsistent reports on the effective date of the new certificate form (05/10 ed. date).

Mind your p’s and q’s — and other designation alphabet soup — when selling life insurance or annuities to seniors. The Pennsylvania Insurance Department recently issued a notice to remind producers what constitutes unfair financial planning practices under Pennsylvania law.

ACORD explained that a form’s publication date and edition date do not always match. The edition date (version printed on the form) is selected before the form is filed, based on when ACORD estimates all states will have approved the form. The form is published after all states have approved it. As a result, discrepancies can occur. In this case, the 05/10 version was not officially published until July 2010, making July 31, 2011 the deadline for use of the new ACORD 25 (05/10). Read more on certificates: www.iabgroup.com/pa/certificates

Simplifying Surplus Lines business Placing some difficult risks is three steps easier thanks to IA&B members' suggestions. The Insurance Department updated its export list to include several risks submitted by IA&B on behalf of members. Export list risks don't require a diligent search (submitting the risk to three different admitted insurers and receiving denials) before placing the business with a Surplus Lines insurer. Read more on surplus lines: www.iabgroup.com/pa/surplus_lines [7]

Prohibited activities include: w Using a professional designation not formally recognized in financial planning or consulting w Making any deceptive or misleading statement about the business of insurance The law also places disclosure requirements and fee limitations on insurance producers engaging in financial planning. Penalties for violation range from loss of license to $5,000 fines. Read the Insurance Department's notice: http://www.pabulletin.com/ secure/data/vol41/41-20/833.html

Preventing Primary Agent | July 2011

ERRORS AND OMISSIONS

THE MIRROR TEST – A SIGNIFICANT ERRORS & OMISSIONS HOTSPOT CURTIS M. PEARSALL CPCU, AIAF, CPIA Curtis M. Pearsall, CPCU, AIAF, CPIA, president of Pearsall Associates Inc. and special consultant to the Utica National Errors & Omissions Program, supplied this article.

While Errors & Omissions frequency is generally down compared to a couple of years ago, this is still an area causing E&O claims. In fact, some E&O carriers believe this is so significant it has the ability to generate enough E&O claims to cause claims frequency to rise.

agency identifies any coverage differences and brings them to the customer’s attention. What could happen? Say you moved the account to another carrier and the coverage was not as broad in some areas. If the customer subsequently suffered an underlying claim that would have been covered by Company A but was not covered or not fully covered by Company B, he very well may question your agency about why the coverage was moved. There is also a good chance of the customer saying that he never would have approved you moving the account if he knew he was giving up coverage. This obviously speaks to the need to document these discussions with your customers.

education programs.

Many commercial and personal lines customers have been looking for pricing reductions in recent years because of the soft market. There has been a tremendous amount of internal remarketing of those accounts to your various carriers to address the situation and ensure you retain the account. For example, if you marketed the account to five other carriers, there is significant potential for there to be differences between the incumbent carrier and the additional markets. When you look to move the account from Company A to Company B to save the customer money on his premium, it is critical your

There are several areas of possible difference: sublimits, the actual coverage grant, specific endorsements, definitions for areas such as

[8]

“who is an insured,” what is excluded on one policy compared to another, and the rating of the carrier. In addition, advise the customer of a change in premium payment handling (agency bill to direct bill) as this could cause some confusion and potentially result in cancellation of coverage. The recommended approach is taking all the carriers you are considering and putting the details on a spreadsheet. Note all pertinent issues, limits, sub-limits, coverage grants, etc. While this will take time, it is crucial to note all differences. Simply moving the account and not advising the customer of the differences could cause you a problem down the road. Some agencies share these spreadsheets with the customer and bring to his attention the detail he needs to be aware of. Most importantly, the customer sees the differences and can make an educated decision. At minimum, the differences

between the expiring policy and coverage from the other carriers you are considering should be brought to the customer’s attention. Get the customer’s written approval, regardless of his final decision. This will be key if an underlying claim occurs and your customer then finds out he didn’t have the coverage he thought. It is fine if your client chose the lower price with the lesser coverage, but get in writing that he realized he was giving up some coverage. Important for all coverages The above scenario can occur even if you keep the account with the same carrier. This is probably more common with Excess & Surplus Lines business because E&S carriers are not required to give a conditional renewal notice if they want to add an exclusion on the renewal. You should still identify any differences on the renewal policy, bring it to the customer’s attention and get his signoff. Due to the nature of E&S, it is best to do this review with the customer before you bind the coverage in case the customer subsequently decides he doesn’t want the coverage. This will help your agency avoid the typical minimum earned premium associated with E&S business. This detailed comparison is important for all coverages. If you write professional liability and/or Directors & Officers, you are aware that no two policies are the same. Thus, there are probably more things to look at. E&O claims have occurred because an exclusion was in one policy but not the other. It is best to identify the differences and bring them to the customer’s attention for their approval, regardless of how subtle you believe the issues to be.

A detailed comparison is needed with these lines of business. Consider asking the respective carriers how they compare with another carrier. They may have a comparison they can share with you or a checklist that identifies many of the issues you must watch for. In addition, there are firms that will perform these comparisons for you for a fee. They are extremely good at what they do and worth the cost.

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The TAPCO Service Pledge

* Available coverages and markets may vary dependent upon risk characteristics.

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For whatever the reason you would switch the coverage from one carrier to another for a customer, make sure it passes the mirror test. Remember, too, to identify the differences, bring them to the customer’s attention and get his written sign off.

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Coverage Primary Agent | July 2011

CORNER

WHY DO I NEED A PERSONAL UMBRELLA?

JERRY M. 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.

We live in a litigious society. You know that. Today, juries and judges don’t think twice about handing out multimillion dollar awards when someone has been seriously injured. You also know that. There is no question that the ownership and use of our autos present us with the greatest personal liability exposure. But our normal daily activities can expose us to the potential of a large liability claim that could threaten our personal assets. One of the best ways to understand the need for a Personal Umbrella policy is to review actual claim examples. Listed below are actual personal liability claims that illustrate the need for higher personal liability limits. Loss #1: A babysitter left a 5-monthold infant unattended in a walker. The infant toppled the walker, struck her head on the floor and suffered

brain damage. The parents of the infant sued the teenage babysitter and her parents. The court awarded the parents $11,000,000. Loss #2: A 28-year-old engineer dove into a friend’s above-ground swimming pool, struck his head on the bottom and, as a result, became a quadriplegic. He sued both the homeowner and the pool manufacturer. The court found the homeowner to be 60 percent responsible and the pool manufacturer to be 40 percent responsible, and awarded $10,000,000. Loss #3: An 18-year-old college student was struck by fraternity paddle during initiation. He sustained facial fractures and blindness in his left eye. The fellow fraternity members and their families were sued. The court awarded $1,300,000.

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Loss #4: The insured’s 18-year-old son was driving his parents’ car to the store with his 19-yearold girlfriend. He left the roadway and hit a tree. The son told the police that another car cut him off, but there were no witnesses, and the girlfriend had no recollection of the accident. She was hospitalized for over a month with multiple fractures and internal injuries and received extensive physical therapy. The Personal Umbrella insurer settled with the girlfriend for the policy limit. Loss #5: The insured hosted a party at his home. Among the guests was a family friend, who was also the insured’s financial advisor. The friend brought his wife, their 2-year-old child and their baby to the party. The insured gave them a jug of spring water to mix formula for the baby. The 2-year-old child also had a drink of the water. Shortly thereafter, both children

became ill. The family left the party and took the children to the hospital. The hospital confiscated the water jug which was found to contain arsenic. An old label was found wrapped around the handle with the words “weed killer” printed on it. The insured had mistakenly given the jug, which was similar to the ones containing spring water, to the family. The baby died and the 2 year old survived after being in critical condition several days. The Personal Umbrella liability limit was paid. Loss #6: A couple hosted a pool party for their teenage children. They did not provide any alcohol, but it was brought by some of the guests and was available. After leaving the party, one of the guests was severely injured in an auto accident, and the injury was attributed to his consumption of alcohol. This case went to the Wisconsin Supreme Court which decided that anyone who sells or furnishes alcohol to a minor is responsible for the minor’s injuries as well as any injuries caused by the minor. The opinion of the court was that the homeowners should have prevented the consumption of alcohol by minors on their premises. Both the Homeowners’ and Personal Umbrella policies responded to this claim. The above losses show the consequences of situations that can quickly exhaust the liability limits of the underlying policies. For less than the cost of a cup of coffee a day, most folks can purchase a Personal Umbrella policy with a limit o f $1,000,000, possibly $2,000,000 or even $5,000,000. Y’all take care!

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Opening up opportunity with personal umbrellas Member agent success story When Nichole Leibensperger took advantage of IA&B members’ access to RLI Personal Umbrella, part of the Market Option Program, sales took off. Within a matter of months, she became the organization’s highest policy-count producer. “The RLI rates are fabulous, and the product is great,” says Leibensperger, owner of Sinking Spring, Pa.-based Chase Insurance Associates. She also touts the product’s stand-alone aspect — which allows insureds to maintain their homeowners’ and auto coverage with their current carrier(s) — and its ability to insure multiple investment properties. Chase Insurance Associates has zoned in on real estate investment clients, and RLI — along with IA&B service — have proved an ideal match. “The staff has been excellent, and the product sells itself,” shares Leibensperger. “Business has exploded.” Editor’s note: Learn more about the RLI Personal Umbrella — and IA&B’s complete Market Option Program — by visiting www.iabgroup.com and selecting “Insurance Products.” Or contact IA&B’s Member Service Center at (800) 998-9644.

MARKETING

The new marketing mix: Where will you meet your customers?

Tried and true marketing? Try tired and failing. The days of finding success from a cookiecutter set of initiatives have long gone. Marketing savvy today stems from an appreciation of flexibility and variety and an understanding that the customer knows best.

Primary Agent | July 2011

t wasn’t so long ago that the marketer’s quiver held a handful of arrows. The skillful often chose some combination of print advertising, radio, broadcast television and cable spots, Yellow Pages ads, direct mail, billboards, special events, telemarketing, press stories — and of course, word of mouth. These were the trusted marketing tools. You could count on them. That was then; this is now, and everything has changed. More accurately, it is changing. Since most of us prefer stability and predictability, we may see what is occurring as something akin to a transition from the old to the new as we look for a new list of trusted tools to emerge. Unfortunately, it may be little more than wishful thinking.

This picture came into abrupt focus one morning when the telephone rang. It was a vendor from a company placing video monitors displaying consumer ads in supermarkets. “As you know, advertisers are trying new ways to get to customers, particularly since many of the traditional techniques are no longer effective,” said the salesperson, who was expressing the deepening dilemma facing companies today. Not only are there no silver bullets, but the bullet supply is running mighty low. Although some may disagree, no one has a corner on the "right answers" today when it comes to marketing tactics. When someone asks if a particular tactic will produce the desired results, there is only one acceptable answer: It all depends on the product or service, the target demographic, the message and, particularly, how the target customers want to be approached.

___________________________________________________________

If there is a message in all this, don’t expect any tactic to last. Everything is temporary. Technology will constantly open the way to new opportunities. ___________________________________________________________

Recent CNN debates with Democratic and Republican candidates are a good example of the profound changes taking place not only in political marketing, but the entire marketing universe as well. Perhaps the most dramatic event took place in July 2007 when 3,300 people posted video questions on YouTube for a Democratic presidential candidates’ debate. It was the

[ 13 ]

________________________________

Not only are there no silver bullets, but the bullet supply is running mighty low. ________________________________

MARKETING

A major shift in thinking about marketing is needed.... Marketers are juggling up to a dozen or more [tactics] at the same time.

first-ever political reality-TV event and what may come to be thought of as a marketing watershed in political campaigning. It may have helped shape the answer to this question: Is voter apathy the fault of the voters or is it a reflection of feeling ignored? The event sent the message that the public wants “real people” to question the candidates. No longer will we accept professional talking heads interposing themselves between candidate and questioner. Even more to the point, the politicos looked painfully uncomfortable that evening as they struggled to come up with “make sense” answers. While this is but one example of the many communication changes taking place today, it illustrates the sea change that’s occurring. To put it as clearly as possible, no marketer can say with certainty how to reach a particular audience as things stand today. If that isn’t enough, there is reason to doubt that the clouds of confusion soon will part and the sunlight of certainty will shine again. This was driven home recently while going over a proposal we were preparing for a prospective client. Although this was a modest-size regional business, we found we were recommending a dazzling array of 11 different marketing tactics.

[ 14 ]

Here are some “thought-lines” when considering an organization’s marketing strategies:

1. All marketing tactics are temporary. The time has come to recognize that there are no permanent solutions. One major soft drink company is changing the design of its cans every 12 weeks in an effort to grab attention, while wine bottles are quickly becoming works of art. The e-mail blast frenzy lasted about a year, about as long as it took to ramp up the spam filters. The question today is always, what’s next? Will Google’s cell phone deliver advertising messages that work with consumers? Should electronic ads be games? And what about mini-social (and micro) networks? How will they fare in letting customers speak with each other about your company’s products and services? If there is a message in all this, don’t expect any tactic to last. Everything is temporary. Technology constantly will open the way to new opportunities.

2. All marketing is essentially experimental. On top of the temporary nature of marketing tactics, they are also experimental. “We’re waiting to see how all this shakes out before we do anything,” says a company president. The words are hauntingly reminiscent of those who announced rather proudly that they would wait to buy a

Primary Agent | July 2011

computer until they were perfected. Today, these same people view their computers as disposable. It all happened in just a few years. Even though there are those, particularly some vendors and ad agencies, that like to suggest that they have “the answer,” it’s clear that all marketing is, to one extent or another, experimental. There are no certainties, no guarantees. What works with one group of customers may not work with another. And some things don’t work at all.

3. Marketing requires an array of tactics. A major shift in thinking about marketing is needed. Rather than bouncing three or four balls at one time, marketers are juggling up to a dozen or more at the same time. The roster may include a blog, a series of eBulletins delivered to particular customer segments, several websites, advertising sequences on Google and Yahoo, personalized direct mail, TV and radio spots, print newsletters, print advertising in selected venues, billboards and a minisocial network, to name but a few. The frustration is felt when someone says, “What about trying billboards?” The marketing concept is finding ways to connect as intimately and meaningfully as possible with individual customers, recognizing that not even three or four venues can deliver your message to your entire universe of customers and prospects.

4. Customers are the only experts. Perhaps the most poignant moment of the CNN TV debate featuring the videoed questions was the one featuring the woman who had lost her hair as a result of breast cancer treatment. Nothing was more real than her question about healthcare.

_________________________________

Today’s customers think less about brands and more about themselves. _________________________________

Al Wittemen, the managing director for retail strategy for Advantage Retail and a marketer for 35 years, points out that today’s customers think less about brands and more about themselves. Even though it should be obvious, it’s ignored more often than not. Wittemen uses prepared foods as an example of consumer behavior. When the customer comes to the supermarket, there is far less interest in picking out a particular brand than there is in picking out dinner for tonight. In other words, “Shoppers are not necessarily looking for high drama. More often, they are looking for relevant solutions to their immediate needs,” he notes. Why did an advertising agency replace a higher-end well-known brand (Xerox) copy machine with a lesser known one (Lexmark)? It’s simpler, faster and more

[ 15 ]

flexible. That’s exactly what Honda, Hyundai and Kia are all about, too. When customers are getting ready to make a purchase today, the first place they go is to the Internet, to look for what others have to say. Among his observations regarding customer behavior, George Colony, the Forrester Research CEO, says that while 100-question surveys might help measure customer satisfaction, there is one question that will do the job: “Would you recommend this product or service to a friend or colleague?” It’s time to forget about the hype and listen to the customers; they’re the experts. The marketing mix today isn’t just in flux; it’s fluid. If anyone thinks it’s time to wait on the sidelines until the parade of possibilities goes by, the competition will have run off with the customers. _______________________________

John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is the author of The New Magnet Marketing and Break the Rules Selling, writes for a variety of business publications, and speaks on business, marketing and sales issues. Contact him at 40 Oval Road, Quincy, Mass. 02170; 617-328-0069; jgraham@grahamcomm.com.

Platinum Profile Insurance Agents & Brokers proudly recognizes Mutual Benefit Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

FEATURED PARTNER Mutual Benefit Group CHIEF EXECUTIVE OFFICER Steven C. Sliver, President and CEO COMPANY LOCATION Huntingdon, Pennsylvania A.M. BEST RATING “A-” (Excellent) WEB SITE www.mutualbenefitgroup.com

here are 175 reasons why agents say they like to do business with Mutual Benefit Group. Its people. People they know by name. There’s Sally, who has been underwriting business in MBG’s Personal Lines Department for 47 years, and Elaine, who’s handled commercial accounts for 33. Patsy has 42 years’ experience in the Claims Department; Joyce has been programming computer applications for 39 years. For 36 years, Shelby’s been handling payments and answering questions about billing. Since 1908, Mutual Benefit has nurtured a relationship-driven corporate culture that provides uncommon support for its employees, who in turn deliver an uncommon insurance experience to agents and policyholders alike. The company enjoys a low employee turnover rate of 6 percent. Seventy-three percent of employees have been with the company five years or more, 30 percent 15 years or more. Mutual Benefit also makes a strong commitment to professional development; in 2010, one-third of the company’s employees completed at least one companyreimbursed education course, with 13 earning a professional insurance credential.

In an industry where expertise is critical and employee turnover is common, agents have commented on how much they appreciate knowing they will reach the same personable, experienced professional each time they call Mutual Benefit. As one agent put it, “In today’s world, it’s very unusual to see any business have the same excellent staff continue to work for them for such an extended period of time as is the case with Mutual Benefit. The people at MBG offer prompt, professional service while never losing sight of adding a little friendly conversation along the way. I couldn’t imagine working in the insurance industry without Mutual Benefit Group.”

As the Insurance Agents and Brokers conducted their fourth Company Satisfaction Index Survey in 2010, Mutual Benefit Group for the fourth time in a row placed among the top three insurance carriers in its area of operation, ranking number two overall in commercial lines and tying for number three overall in personal lines. Mutual Benefit CEO Steve Sliver states, “The survey results reflect our staff’s one-of-a-kind commitment to accessibility and responsiveness as they provide agents with the conscientious service, flexible underwriting, quality products, exceptional claims handling, and technological systems that agents demand and deserve.”

Selecting and retaining top-notch professionals is just one of the ways Mutual Benefit exhibits its commitment to its 250 independent agents and its nearly 100,000 policyholders. Supporting the independent agency system for over 100 years has given Mutual Benefit a unique perspective on the importance of fostering strong business ties with agents. We understand how critical it is to remain accessible to agents, and how important it is to listen to their needs in order to respond in a way that benefits everyone in the business relationship.

As Mutual Benefit enters its second century in the insurance industry with a corporate culture dedicated to building strong relationships, it’s not surprising that “You Know Who we ARE (Accessible, Reliable, Experienced).” We reaffirm our commitment to a strong rapport with agents, a rapport that elicits comments like this: “I treasure my relationship with Mutual Benefit and its many fine people. They always travel the high road.”

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.

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MARKETING

Old and new media collide How the Teeter Group found a marketing balance

When April Ressler purchased the Teeter Group in 2004, the agency was on a â&#x20AC;&#x153;maintenanceâ&#x20AC;? track. The three-person shop in Altoona, Pa. had a solid but stagnant book of business and an owner who was ready to retire.

Primary Agent | July 2011

ut Ressler – who had, and continues to oversee, a book of business with Bedford, Pa.-based Reed, Wertz & Roadman, Inc. — saw growth potential. Within seven years she and her husband, the Teeter Group office manager, expanded the agency’s staff complement, expertise and value. No doubt their progressive marketing strategy is partially to thank.

One of the players Ressler began marketing the agency aggressively in 2004. She relied on billboard, newspaper and television advertising and found success. “We’re one of the players now,” she explains. “Customers think of us. They’ve heard of us.” Then in 2010, Ressler met with her long-time partnered marketing firm, Egan Advertising, as well as Artemis Group, her original website designer, and Magnetic Marketing Unlimited, a firm dedicated to social networking and online marketing. She explained her desire to venture into Web-based marketing and then split her 2011 advertising budget in two — dedicating half to the traditional media that served her well and the other half to website revisions and Internet-driven tactics that she knew had potential.

Ressler’s mixed marketing plan works because she

“My husband and I are in our 30s, and we research everything online,” she admits. “The younger generation goes on the Internet to read testimonials and consider their purchases.”

understands her agency,

Recent surveys substantiate Ressler’s claim. According to Agents Council for Technology, 81 percent of Internet-using adults use the Web to research their options — regardless of whether or not they plan to buy online.

potential customers and

Targeted efforts “Our intention is to get very specific in marketing to certain niches,” she says of the agency’s foray into the Internet, which includes a blog, refreshed website, Facebook presence and YouTube channel. “We have specific products to get to specific buyers.” She began targeting the trucking industry by posting short, informational videos on YouTube. Three additional phases with tactics aimed at particular audiences are scheduled for 2011. Additionally, in the coming months, Ressler and several staff members will rent a production studio in State College, Pa., to create a series of high-quality videos — one for each of the agency’s product offerings. These will be added to the agency website and posted on YouTube. “An upgraded website is important,” shares Ressler. “If a company has an outdated website, consumers think the company is outdated, too.”

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its customers and its

because she has firm objectives in mind.

MARKETING

Despite these efforts, Ressler remains loyal to traditional advertising. A few billboards, continued (albeit scaled back) radio and newspaper advertising and another television commercial round out her 2011 marketing plan. “We haven’t discounted other types of marketing,” she explains. “It’s the mix of all types that seems to be helping us. We’re getting a lot of positive feedback, people are recognizing us, and we’re closing more accounts.”

Words of wisdom Ressler’s mixed marketing plan works because she understands her agency, its customers and its

potential customers and because she has firm objectives in mind. “Each agency has to do what feels right to them,” shares Ressler. “Not every agency has the same goals, and their marketing should reflect what they want to accomplish.” A strictly commercial-lines agency, for example, likely would not find value in launching a Facebook account. And an agency looking to grow its 20-something clientele likely would not put extensive resources into print newspaper advertisements. Ressler also cites the importance of finding reasonably priced yet effective experts to help put the pieces into place.

“It comes down to partnering with good people,” she says, referring to the advertising and multi-media vendors she utilizes. “Good companies helping us through this process have been key. We’re not trying to do it all ourselves.” Learn more about the Teeter Group by visiting the agency’s website: teetergroup.com. Learn more about selecting a graphic design firm or advertising agency on page 23. _______________________________

Karen Robison is public relations director for IA&B.

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H.R.

Primary Agent | July 2011

HEADQUARTERS

PART I: FLSA AND THE PROBLEM WITH PAYING NON-EXEMPT EMPLOYEES A SALARY

JEFFREY W GERHART CEBS, MBA Jeffrey W. Gerhart, CEBS, MBA, provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm. IA&B members have access to HR Solution©, a compilation of products and services to help them establish or improve their human resources program.

But I pay all of my staff a salary, so why would I have to pay any of them overtime? Over the past few months, I’ve talked with a few agency owners about commission payments to inside producers who sell insurance. This discussion has raised my concern about whether there is understanding between paying someone a salary and the Fair Labor Standards Act (FLSA) classifications of exempt and non-exempt employees.

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Most of us equate paying someone hourly as nonexempt and having to pay overtime. Paying a fixed, recurring salary to an employee is generally considered a higher level position that does not carry an overtime requirement. But that is a misunderstanding of and misstatement of fact. In part, exempt and nonexempt classifications have to do with whether an employee is entitled to overtime compensation as defined under FSLA. Overtime is to be

paid to non-exempt employees when they exceed 40 hours of work in a sevenconsecutive-day workweek, at a rate of one and one-half their regular rate. In general, unless meeting specific earnings and/or exemption criteria for executive, administrative, professional or outside sales tests, employees are protected under the act and entitled to receive overtime pay.

Others are based on employers’ misunderstanding of regulations and required payments. The investigator indicated when it comes to paying commissions, bonuses and other recurring lump-sum payments to non-exempt employees, many employers don’t understand the required overtime payment, let alone how to calculate it.

The non-exempt status (meaning not exempt from coverage under FSLA) for overtime payment is without regard to whether the employee is paid hourly or on a salaried basis. Said differently, you may pay a non-exempt employee a salary, but you are still are required to pay overtime as it occurs.

Of particular concern to agency owners is whether the inside producer is properly classified as exempt or nonexempt from overtime compensation. The exempt status earned through the sales exemption test is primarily for outside sales, which likely applies to most of your producers. Inside sales positions, however, have difficulty satisfying the exemption requirements.

I recently attended a seminar where a federal Wage & Hour Division investigator addressed the problems typically encountered when examining employer pay practices. Many of the known violations are industry based and drive investigations.

What should I do? First, determine that your positions are classified correctly as exempt or non-exempt from overtime payments. You can access HR Solution for guidelines to assess your FLSA status, as well as hyperlinks to U.S.

[ 21 ]

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Second, determine whether your nonexempt positions work more than 40 hours in any week. That may mean you need to introduce time records for employees who in the past did not complete them. You will need a way to know when more than 40 hours are worked in a week. Third, if you have non-exempt employees on salary, re-evaluate whether to continue that pay practice. Remember, non-exempt employees, whether salaried or hourly, still are due overtime pay when exceeding 40 hours of work in a week. Fourth, document the types of recurring payments beyond base pay that are given to non-exempt employees. Develop a method by which overtime is determined and the payment is calculated correctly. Work with your payroll resource to insure the system works properly. Editor’s note: The next issue of Primary Agent will illustrate a practical method for calculating overtime for a non-exempt inside producer. In the meantime, visit IA&B’s HR Solution to access guidance on classifying employees under the FLSA. Visit www.iabgroup.com/HR to access (or register to access) the program. Then choose “administrative guide,” “review sections of the administrative guide” and “employee classifications.” Access to HR Solution is included with IA&B membership but is limited to those individuals designated as agency administrators within the IA&B database. To add an agency administrator, contact IA&B’s Member Service Center at 800-998-9644, option 0.

[ 22 ]

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MARKETING

Tips for selecting a graphic design firm or advertising agency The selection of an individual or firm to handle your marketing is one of the most important decisions a small company can make. Read on for seven tips to save time (and potential expense) when choosing a marketing partner.

ften, the choice involves a trade-off between quality and price — or at least between experience and price. Some full-service advertising agencies and graphic design firms are geared to work with deep-pocket corporations and will be beyond a small company’s budget. Many, however, provide excellent service at more reasonable rates.

The following proven steps can help you determine if an ad agency or design firm can serve your needs while fitting within your budget.

1. Ask other smallbusiness owners for recommendations. If an ad agency or graphics firm has performed well for others at a reasonable rate, it’s likely the company will do the same for you. When asking for recommendations, see if you can look at what the agency did. Examine materials such as ads, brochures, websites, directmail pieces, etc. Talk with the business owner to see how well the marketing material performed for him, in terms of revenue or new customers generated. Ask how easy the agency was to work with. Ask about charges. And see if there were any specific individuals at the agency who did a great job.

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2. Before meeting with agencies, prepare by gathering all information they’ll need to make suggestions. These include: your present marketing materials, your goals and timelines, your vision of the image you would like your company to have, your budget, etc. This information will be necessary for an agency to make realistic suggestions and price projections. ______________________________

A one-person shop may do even better work for you than a large agency. ______________________________

3. Ask to see samples of work done for previous or existing clients. The work should resonate with you. If not, you should move to your next interview because

MARKETING

it’s often hard for an agency to revamp the style of work it does, just as it’s difficult for an artist to draw or paint in a style other than what they’ve developed over the years. If you don’t like the way the agency’s ads look, or if their design style doesn’t seem like it would fit with the image you want, keep an open mind. But don’t expect that they’ll be able to change just to suit you.

size from independent entrepreneurs to large, fullservice agencies employing hundreds of writers, designers and account representatives. No

7. Does the person who will be doing your work understand and share the vision you have of your marketing goals? This is probably the

4. Ask about fees. It’s often hard for a creative person or agency to give an exact amount for how much a brochure, logo, ad campaign or other types of work will cost. But you’ll need to know a ballpark figure to determine if you can afford to work with them. When talking about fees, don’t assume that an agency will come in at the low end of an estimate.

5. Visit the agency’s offices. You’ll be able to tell a lot about an agency by how their space feels. It is orderly or is it a mess? Does the staff seem dedicated? Do they have samples of their work on display? Tip: At least once, walk through the offices near the end of the day. People’s true colors come out when they’ve been hard at it for eight hours or more.

6. Ask about the people who will be doing the work on your account. Meeting with the sales manager of a large ad agency doesn’t really give you much information about the people who will be creating on your behalf. Agencies range in

The proprietor of a one-man or one-woman agency, for example, may formerly have been a creative director at a larger agency. He or she may have experience and ability far beyond what you could expect to end up with at a larger agency. Because of your smallcompany budget, a large agency could assign your work to a relatively inexperienced person.

most important factor in the selection process.

Final note: When starting work

The work should resonate with you. If not, you should move to your next interview because it’s often hard for an agency to revamp the style of work it does.

matter how large, however, individuals within the agencies undertake creative decisions and create the final product. For this reason, a one-person shop may do even better work for you than a large agency.

[ 24 ]

with an agency, don’t get locked into a long-term contract. Start slowly and commit gradually. If you’re looking for a new logo, for instance, ask to see sketches before paying a significant deposit. If you’re working with the company to create a brochure, ask to see layout samples and copy ideas before too much time (and expense) goes into the creation.

Source: National Federation of Independent Business, www.nfib.com

Primary Agent | July 2011

Technology U P DATE

COMBAT CYBERCRIME AND PROTECT YOUR AGENCY WITH SIMPLE SECURITY STEPS

DANIELLE JOHNSON

and more sophisticated and not only targets consumers and large corporations, but small to medium sized businesses as well. Single programs against these intrusions are not enough.

Danielle Johnson is the vice president, director of information technology at InsurBanc, which IIABA and the W.R. Berkley Corporation established to assist independent agencies,

phishing and, at a corporate level, computer hacking of customer databases.

An alarming cybercrime now affecting small to medium sized businesses is “corporate account takeover.” This involves cyber criminals penetrating the computer network of a business and spreading malicious software, such as a “keylogger” which records the words typed, Web browsing history, passwords and other private information. This in turn allows them access to programs using your log-in credentials.

Most people are aware of these and protect themselves and their PCs with antispyware and anti-virus software such as Norton or McAfee programs. As an agency owner, you should be alert to the fact that cybercrime is becoming more

If they steal your password and breach your online banking system, the cyber criminal can begin an online session to initiate funds transfers, by ACH or wire transfer, to their accomplices. The accomplices withdraw the money almost immediately.

businesses and consumers with their specific banking needs. Danielle prepared this article for ACT, and she can be reached at technology@insurbanc.com. This article reflects the views of the author and should not be construed as an official statement by ACT.

What is cybercrime? Like traditional crime, cybercrime covers a broad scope of criminal activity and can occur anytime and anyplace. What makes it different is that the crime is committed using a computer and the Internet. You may recognize some of its most common forms such as identity theft, computer viruses and

[ 25 ]

TECHNOLOGY UPDATE

Common online fraud definitions Malware refers to software programs designed to damage or do other unwanted actions on a computer system. Common examples of malware include spyware, keyloggers and viruses. Spyware is a type of malware installed on your computer without your knowledge. It collects small to large pieces of personal information including Internet surfing habits. It can redirect Web browser activity and change computer settings. Spyware is typically hidden from the user and can be difficult to detect once installed without proper anti-spyware tools. Keyloggers, as with spyware, are installed on your computer without your knowledge. It is the action of tracking (or logging) the keys struck on a keyboard, typically in a hidden manner so that the person using the keyboard is unaware that their actions are being monitored. Keystroke logging can record the words typed, Web browsing history, passwords and other private information. This is extremely dangerous in all aspects of computer usage. Viruses are an ever changing and constant threat to all systems. Based on their digital makeup, they can deliver malicious content to your data and systems in an effort to either collect data, destroy data or turn your systems into a machine that spreads the virus or other malware. “Phishing” is the act of obtaining personal information or spreading malware using e-mails, calls, text messages or pop-up messages from what appear to be friends or legitimate banks, retailers, government agencies or other organizations.

Take the first steps to prevent fraud at your agency: Become aware of the latest cybercrimes and how they can access a business’s computer network. An agency should also employ the most up-to-date online security practices on a pro-active basis. Agencies can also take the opportunity to present these online security practices to their clients, as many are also instituting Internetbased online programs at their businesses. Online security practices While no tools or automated software is 100 percent effective, the best solutions to protect your agency are to be well informed and use common sense. Using a multiple vendor, multi-layer approach to system design can significantly reduce your chances of being a victim of cybercrime. To assess the risks associated with a cyber intrusion of your agency’s online systems and critical client data, ask yourself the following questions: 1. Does your agency have a hardwarebased firewall at the network level? 2. Does the network firewall include anti-virus, anti-spyware and anti-spam services along with content filtering and intrusion prevention, detection and real-time reporting? 3. At the individual PC level, does each computer have centrally updated and monitored anti-virus, anti-spyware and anti-spam software loaded? 4. Are your computers set up to automatically update your operating system and applications for the latest available security and critical updates? 5. Do you consider your browser security setting to determine how much or how little information the browser can accept from, or transmit to, a website?

[ 26 ]

6. Does your agency have a security policy in place that includes such policies as disaster recovery, use/storage of passwords, use of social media on work computers, etc.? 7. Does your agency back up critical files in case of an issue that disables your systems? 8. Has your agency identified an individual to review security policies and practices on an ongoing basis? 9. Are you aware of the laws governing the protection of personal information in your state? 10. Do you have cybercrime insurance to protect your data and liability exposure in the event of an intrusion? 11. Does your agency have a training program to educate employees on best practices to avoid becoming a victim? 12. Does your online banking system provide multiple layers of security tools to prevent intrusions into the system such as token-based authentication? Agency principals should consider the types of transactions they conduct within online banking and check with their banking institution for available security enhancements. These are just some of the basic steps an agency can implement to assess and protect itself from cybercrime. Your agency should have a network security assessment and review conducted by a certified information technology firm that specializes in network security. This evaluation will help you to identify the next steps in securing your network and data from unauthorized access and distribution. If your agency becomes a victim If you discover, or even suspect, your agency has fallen victim to corporate identity theft, you should proceed as follows: w Immediately cease all online activity and contact your IT administrator. w Remove the affected computer from the network and any other computer stations involved. w Contact your financial institution to disable online access to the accounts and close affected accounts. You can then open new accounts and reset passwords. w Consult your counsel and your state’s data breach notification law and regulations to ascertain the process you need to follow.*

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w Notify other business partners that may have been affected, such as your insurance carriers. w File a report with the police department. All of the security tips presented here are simply guidelines to aid agencies in not becoming a target for cyber criminals. However, none can be guaranteed 100 percent effective. Editor’s note: For more on security and identity theft, access the member resources at www.iabgroup.com. Simply select “Technology” from the left-hand menu and then “Other resources.” *Read more about data breach notification and other privacy requirements by visiting IA&B’s state-specific resources: Pennsylvania: www.iabgroup.com/pa/privacy Maryland: www.iabgroup.com/md/privacy Delaware: www.iabgroup.com/de/privacy

Classified ADVERTISEMENTS

DISCOVER THE BENEFITS OF A PARTNERSHIP WITH FAYETTE INSURANCE ASSOCIATES Uniontown, PA 15401 Website: www.fayins.com Email: info@fayins.com

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.

When workers’ comp fraud is a drag

If you would like to place a Classified Advertisement, simply

care of the rest.

When Garrett Dalton, a Connecticut correctional officer, claimed a job-site injury, no one batted an eye. He collected thousands of dollars in workers’ compensation. But soon after, his Hannah Montana infatuation got the best of him.

Ad Index

Say what?

fax your ad on company letterhead to (717) 795-8347, and we will take

Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . .20 Brokers Surplus Agency . . . . . . . . . . . . . .IFC, 20 Commonwealth Ins Co . . . . . . . . . . . . . . . . . .IBC Guard Insurance Group . . . . . . . . . . . . . . . . . .27 Harford Mutual Ins Co . . . . . . . . . . . . . . . . . . . .5 IA&B Agent PAC . . . . . . . . . . . . . . . . . . . . . . . . . .3

Dalton donned a dress, wig and heels to balance an egg on a spoon and run a 40-yard dash, among other eyebrow-raising antics, as part of a radio station contest to score Hannah Montana tickets. His cross-dressing stint garnered local TV news coverage though, and someone who saw the report alerted authorities. Besides losing the radio station’s contest, Dalton was charged with workers’ compensation fraud.

IA&B Partners Program . . . . . . . . . . . . . . . . . . .17 Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC MMG Insurance Company . . . . . . . . . . . . . . . . .1 PennPRIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Sources: 11 dumbest insurance fraud cases, Insurance Networking News; ‘Hannah Montana’ high heel run lands officer in hot water, Associated Press

Preferred Property Program . . . . . . . . . . . . . . .22 TAPCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 The Philadelphia Contributionship . . . . . . . . .22

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----------------------------------------------------------------———————------The Last & Least column is dedicated to the industry’s oddities — from creative claims and kooky coverages, to (tasteful) jokes and strange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

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