MD Primary Agent - February 2019 by Insurance Agents & Brokers Service Group Inc

FEBRUARY 2019 | MARYLAND

IA&B BOARD MEMBER

SHANNON LIPNISKIS

ON AGENTS' POLITICAL ADVOCACY

Exclusive Member Magazine

GET INVOLVED IN ADVOCACY EFFORTS HOW TO MINIMIZE CYBERCRIME DAMAGE

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IN THIS

8 ON THE COVER: Q&A WITH SHANNON LIPNISKIS Shannon Lipniskis talks political advocacy, family business, and the Christmas Tree Capital of the World.

14 PROTECT YOUR LARGEST ASSET

Hear from Craig Mader – fellow independent agent and chairman of the IA&B of Maryland Government Relations Committee – on why your political advocacy matters.

18 GETTING TO KNOW IA&B LOBBYIST BRYSON POPHAM

IA&B Lobbyist Bryson Popham’s allegiance to the independent insurance agent community runs deep. Learn how he works for you.

20 GET INVOLVED WITH IA&B’S ADVOCACY EFFORTS

There’s never been a better time to get involved in the political process on behalf of your industry.

IN EVERY ISSUE 2 3 4 6 10 11 12 24 24

Chair of the Board’s Message Don’s Discussion Coverage Corner Technology Update President’s Message Pics & Posts IA&B Partners Education Classified Ads

About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware. Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2019-2, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2019. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

CHAIR OF THE BOARD’S MESSAGE

BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS

YOUR ADVOCACY MATTERS

s I sit down to write this, Congress and President Trump are at a stalemate. The federal government is shut down, which – despite another short-term extension of the debt-ridden National Flood Insurance Program – has placed limits on the issuance of new or renewal flood policies. It’s a mess in Washington, D.C. And things aren’t rosy in the state Capitol buildings across the country either, as deadlocks and partisanship outshine compromise and open-mindedness. Naturally, it’s easy to feel disgruntled about the political process. However, I’m here to assure you that all is not lost. Through my association with IA&B, I’ve seen the power that individual constituents hold when they get involved and advocate for what they believe in. Especially when they act together. IA&B has a robust Advocacy Department, with staff, lobbyists, and member agent volunteers working in concert to protect our interests in the government and with regulators. It’s an effective coalition, but one that would be even stronger with greater involvement. Review page 20 for ways that you can participate. The power of our voice grows exponentially when we work together. Collectively, let’s amplify our message in 2019.

5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

Chair of the Board

John B. Hollister Milford, PA

Vice Chair of the Board

Craig S. Mader Crofton, MD

MEMBERS

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Richard F. Corroon, CPCU Wilmington, DE

Michael P. Ertel Sr.+ Columbia, MD

Len Gieseler, LUTCF Pottstown, PA

G. Greg Gunn, CIC* Lemoyne, PA

Bryan C. Hanes, JD Hagerstown, MD

Lisa A. Leach Goth, CIC New Bethlehem, PA

Shannon Lipniskis Indiana, PA

Elizabeth H. Martin, CIC Millersville, PA

Mark J. Monroe

West Chester, PA

Richard M. Rankin, CIC Lancaster, PA

Best,

D. Bradley Rosenkilde Jr. Hunt Valley, MD

Tara S. Silfies, CPCU Bethlehem, PA

John Hollister Chair of the Board

Robert L. Smyrl Jr., CIC Hatfield, PA

Glenn R. Strachan

Ft. Washington, Md

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, DE

J. Marshall Wolff, CIC, CPCU Easton, PA

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

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Don’s Discussion IA&B Legal & Corporate Affairs Director Don Bankus provided this month’s answer.

QUESTION: I found a great candidate for my agency. I’d like to hire her and get her licensed as a producer, but she was convicted of a misdemeanor DUI when she was in her late teens. Does this prohibit her from obtaining a producer license?

ANSWER: Great question and one that we hear somewhat regularly. The Violent Crimes Control and Law Enforcement Act (VCCLEA) is probably the law that gave you pause when she informed you of her DUI. The VCCLEA is a federal law which prohibits anyone who’s been convicted of a felony for dishonesty or breach of trust from working in insurance, without first having secured prior written consent from the state’s insurance department. It also prohibits you, as an employer, from willfully employing someone who’s been convicted of a felony for dishonesty or breach of trust, without ensuring such consent was obtained. In addition to the VCCLEA, each state’s producer licensing statute addresses issues pertaining to eligibility and suitability of applicants and lists prohibited acts that may preclude licensure.

• Is arrested with a high blood alcohol content, or • Has multiple convictions. Fortunately for you and your prospect, neither the VCCLEA nor the state’s producer licensing statutes contain provisions or criteria that appear to exclude eligibility for licensing simply because she has a misdemeanor DUI on her record. Note that a prospective licensee should never intentionally misrepresent or conceal a material fact when applying for a license. State regulators run a background check when they receive an application, and failure to disclose applicable or required information could demonstrate dishonestly. And that, in and of itself, could be viewed

as an attempt to obtain a license through misrepresentation or fraud – prohibited acts under the producer licensing statute. If you or your prospective employee has any questions regarding this issue, feel free to contact the licensing bureau of your respective state’s insurance department, as follows: Delaware: 302-674-7390 or licensing@state.de.us Maryland: 410-468-2411 or producerlicensing.mia@maryland.gov Pennsylvania: 717-787-3840 or ra-in-producer@pa.gov

While your prospect’s DUI was classified as a misdemeanor offense, a DUI can be classified as a felony if the drunk driver:

Ask our experts!

• Causes serious injury or death to someone,

Contact Don: 800-998-9644, ext. 603 | DonB@IABforME.com | IABforME.com

Have a question? Rely on our team to find the answer.

COVERAGE CORNER

PUZZLING OVER SIDE HUSTLES How to Piece Together Coverage By Kevin C. Amrhein, CIC

f you owned a home in Kissimmee, FL in the late 1990s, I probably cleaned your swimming pool. And no, I didn’t enjoy it. I just did it for the money. I teach a class about insurance concerns for people who engage in various activities for money. During the intro, I ask the students to share about work experiences from their pre-insurance-agent days. In addition to hilarity (you’d be shocked at what some people share), this serves as an effective

reminder to a group of insurance folks that we haven’t always been this way; e.g. trained to see the risk in anything and everything. We did what we did for the same reason our insureds do: because we wanted/needed money. And the honest folks in the group admit that, like our insureds, the thought “do I have insurance for this?” never crossed their minds. Not once.

of traditional employment. Nearly four in 10 of us have a side hustle, earning an average of $686/month, according to bankrate.com.

Yard care. House care. Pet care. Child care. Adult care. These and other “side hustles” are pervasive among Americans looking to earn money outside the scope

It’s not hard to imagine how such activities could (easily?) cause injury or damage property. If so, folks with no protection afforded elsewhere hope

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It is without question that you have insureds (and their household residents) who are doing this stuff and often without a license, training, or access to a general liability policy.

the Personal Liability coverage in the homeowner’s policy will act as the funding mechanism for a claim. For the purpose of reviewing coverage, consider the ISO Homeowner’s 3 – Special Form. (Activities involving the monetization of vehicle use – like ridesharing or package delivery – is a different story for a different day….) You already knew that the word ISO uses to describe monetized activities is “business.” You already knew that the HO-3 has an exclusion for “business” activities. However, some agents don’t know that some claims resulting from monetized activities are covered under Section II – Liability Coverages. The key to finding coverage – or enforcing the exclusion – is understanding the two-part definition of “business.” First, Part a. of the definition includes a “trade, profession, or occupation engaged in on a full-time, part-time or occasional basis.” Is cutting grass on weekends a “trade”? Is babysitting a child once per week an “occupation”? Is cleaning a friend’s office monthly a “profession”? It’s clear that this part of the definition does not adequately address the side-hustle exposure. Part b. says, “Any other activity engaged in for money or other compensation, except…” and then lists four exceptions. The first is worth noting, and I’ll paraphrase it: “One or more activities … for which no “insured” receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period.” This is where the HO-3 addresses the side-hustle exposure in a way that creates confusion for some agents in my classes. By connecting the income threshold to the 12-months prior to the policy period,

it seems ISO is concerned more with continuity than an absolute elimination of coverage for any compensated activity. For example, if the side hustle is lawn care and it started during the current policy year, there’s no compensation during the 12-months prior to the policy period. Unless the lawn care efforts are considered by the Adjuster to be a “trade, profession or occupation,” claims arising from this side hustle are not subject to the “business” exclusion due to that first exception in Part b. There’s further evidence to suggest that ISO is not completely unappreciative of the personal monetization efforts of insureds. For example, even if their activity triggers the definition of “business,” the exclusion has an exception if an insured is “under 21 and involved in a part-time or occasional, self-employed ‘business’ with no employees.” By reviewing the HO-3, you’ve given your insured essential info they need to decide what they should do next. Concerns about coverage may be addressed by adding an endorsement to the HO-3 or quoting a commercial policy. In some cases, injury or property damage caused by the performance

of such activities may be covered by a third-party’s insurance. For example, check out TaskRabbit.com, where folks can download an app, create a profile, and charge customers an hourly rate for numerous tasks ranging from home repair to moving furniture to waiting in line (yes, you read that correctly). According to the website, there is coverage for some claims caused by “taskers.” As an agent, it’s unwise to offer coverage counsel on any insurance policy that you don’t have direct control or knowledge of. Should your insured use such a platform to connect with customers, caution him/her to carefully review any insurance provided. That’s all for now. Until the next round … cheers!

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

LEARN MORE ABOUT COVERING SIDE HUSTLES ATTEND OUR special topic seminar to discover coverage concerns with side jobs and self-employment, as well as what's new with the ISO Personal Auto policy. Coverage for Uber, AirBnB & Other Gig Economy Trends April 16 | Newark, DE July 9 | Mechanicsburg, PA Aug. 13 | Philadelphia, PA Aug. 22 | Pittsburgh, PA Register today. 800-998-9644, option 1 | IABforME.com/education

TECHNOLOGY UPDATE

PREPARE TO BE HACKED How to Minimize the Damage By Jason Gobbel

acking is big business. It’s been estimated that cybercrime will cost the global economy $600 billion this yeari. While some attacks will happen behind the scenes, 93% of them will happen right before your very eyes in the form of phishing attemptsii.

to view an important invoice or past due bill. Moreover, they often appear to come from a trusted sender, or even a coworker. In the past six months, phishing attempts have increased by more than 60%iii, and 22% of employees have clicked at least one phishing link this yeariv.

Phishing is the attempt to obtain sensitive information, such as a password or account number, by impersonating a trustworthy source. These often arrive as emails requesting that you sign in to cloud storage services (OneDrive, Dropbox)

If you do the math, it’s very clear that the odds are not in your favor. While threat prevention and security awareness training are crucial pieces of your cybersecurity strategy, I’d like to give you one more piece of advice: Expect to be hacked.

FEBRUARY 2019

It’s no longer enough to try to keep the bad guys out. We need to shift our focus to understanding what they can access when they do get in, and how we can limit their reach. To do that, we need to understand three key things: What data are we keeping, where are we keeping it, and who has access? It has long been a practice of agencies to keep an indefinite record of every business communication. As these records become digital, hackers gain access to years or even decades of

Remember: What’s convenient for you is also convenient for the hacker. — Jason Gobbel

non-public information, often long after these records serve a business purpose. As a result, The National Association of Insurance Commissioners is proposing that all agencies adopt a strategy for reviewing and purging non-public information that is no longer neededv. I would encourage you to make a list of the type of data you’re collecting, determine how long it’s needed (by regulation, or business process), and make a plan for eliminating as much as possible to reduce your exposure. I tend to find at least three treasure troves of client data in every agency I meet: The agency management system, email, and a shared location such as SharePoint, OneDrive, or a network share. Often, the data stored in email or the shared location is redundant, and only stored there for convenience. Even more alarming, this non-public information is often uploaded to a personal email or cloud account. In fact, 87% of senior managers have uploaded business files to personal accountsvi. Remember: What’s convenient for you is also convenient for the hacker. It’s important to keep non-public information in as few places as possible, so that monitoring and protection can be as focused and effective as possible. And it should never be permissible to store client data on personal accounts.

It’s also important to limit access to non-public information, so that a single breach will expose as little data as possible. Do all employees need access to client payment records? Do commercial lines employees need access to personal policies? There are numerous ways to limit access, and there’s certainly one that will work in your agency. I encourage you to make a list of the roles and responsibilities of your employees. You can use that list to begin building a plan to limit the amount of non-public information that can be accessed and compromised by their accounts. By expecting a security breach, turning our focus inward, and understanding how non-public information is stored and accessed, we can reduce the amount of data that a single breach can expose. Smaller breaches mean less data to sell to the next bad guy, and this hits the hacker where it hurts the most: The wallet. Jason Gobbel is the chief technology officer of Kite Technology Group. Blending a unique background of insurance and technology, he consults with independent agencies across the country on topics of cloud adoption, security posture, and strategic planning. Contact him at jason@kitetechgroup.com.

DATA BREACH INSURANCE It’s not a matter of if, but a matter of when. Cybercrime is a real threat to agencies and customers, and most E&O policies do not cover data breaches. Avoid damage to your agency’s finances and reputation with a solid privacy and data breach policy. Whether you need an endorsement to your E&O or a full-fledged, stand-alone data breach policy, we have options to address your agency and its unique exposures. Contact IA&B Insurance Placement Specialist David Wertz, CPIA, to learn more.

David Wertz 800-998-9644, ext. 506 DavidW@IABforME.com

i McAfee Economic Impact of Cybercrime, Feb 2018 ii Webroot 2018 Threat Report Mid-Year Update, Sept 2018 iii Webroot 2018 Threat Report Mid-Year Update, Sept 2018 iv Webroot 2018 Threat Report Mid-Year Update, Sept 2018 v NAIC Insurance Data Security Model Law MDL-668 vi Virtru Security Insights

Q&A WITH IA&B

SHANNON LIPNISKIS

hannon Lipniskis, agency principal of Hutton-Blews Insurance in Indiana, PA, is a secondgeneration independent insurance agency owner. She serves on the IA&B Board of Directors, as well as the IA&B of Pennsylvania’s Government Relations Committee. Q. You’re on the IA&B Government Relations Committee and frequently attend national legislative conferences. What drives your interest in politics and government? A. I took an interest in politics at an early age. I remember following President Reagan’s second term in office at the age of 10 and continued following presidential politics from then on. Once I entered college, I started paying attention to our state politics as well. Civics, history, and American politics were always my favorite classes. Our country has done so many amazing things, and it’s due to our system of government. It affects everything, so people should be more informed and involved. My youngest son, who is 10, also has taken an interest, and it’s really interesting to get his “take” on things!

Q. Share your thoughts on political advocacy and why it’s important for member agents to get involved. A. Political advocacy can sound scary and time-consuming, but it doesn’t have to be. Even for individuals who don’t have an outside interest in politics, it can be as easy as having a quick conversation with your local representative whenever you get the chance. Maybe they go to your church or you see them at the grocery store or little league field. These are all opportunities to share a concern you have. The more input they get, the better they will understand the impact a certain issue has on a segment of their constituency. And they really do appreciate the input. Imagine having to vote on an issue with very little understanding of what it’s about, let alone how your vote will impact the citizens you represent. They do represent us, so we should make sure our voices are heard! Q. We appreciate your consistent and generous support of AgentPAC, our political action committee. Why do you donate?

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A. Quite simply because that is how the political system works. I may not like it, but until I can change it, it needs supported. Our IA&B political action committee works hard to advocate on our (the agents’) behalf, and it needs our contributions to do it. Candidates who share the concerns of independent agents need our support. Just look at the current threat to our commissions due to [Pennsylvania] tax reform. I’m pretty sure every single independent agent in our state would sit up and take abrupt notice if legislation was passed that applied the sales tax to our commissions. The bigger our AgentPAC fund is, the bigger our voice can be heard on issues like this, and we need to be proactive. After the legislation is passed, it’s too late to react. Q. You followed in your father’s footsteps by becoming an independent agent. Was that the plan all along? If not, what put you on this path? A. I think it was his plan all along but not mine! I helped him out in the office off and on since I was 15, but I had no plans to join him. I actually majored

in criminology for my bachelor’s and master’s degrees and was pursuing a career in criminal justice. I took a sales job for Pier 1 Imports while I job-hunted and really enjoyed it. My dad had an opening and thought maybe since I enjoyed sales there, I would enjoy insurance sales as well. He asked me to give him three years, and if I didn’t like it, then I could move on and he would go to plan B. Needless to say, the rest is history! After one year, I was hooked. Insurance is so much more than just sales. You are always learning because the industry is constantly evolving with what’s going on in our world. More young people should give insurance a try as a career field! Q. You and your brother co-own the agency. What lessons have you learned about successfully operating a family business? A. When my dad was ready to retire, he made one rule for us in order to perpetuate the agency: The business should never ever come between our relationship as brother and sister. And we have always abided by that rule.

Q. You recently acquired another agency. What advice would you give to other agency principals who are preparing for a similar transition? A. Plan, plan, and plan! And communication with our existing staff was crucial. We shared our transition plan with them so that they would know where we would be and why. We are really appreciative of the awesome team we have that keeps the ball rolling so that we are able to take on acquisitions like this. Q. The IA&B Futures Conference for young insurance professionals draws quite a few young women who are new to the industry. What would be your advice to them as they begin their careers? A. There are a lot more women in the industry today, but if you find yourself in a situation where you are the only woman or one of a few, don’t be intimidated.

I would also say that this is a good industry to be able to balance career and family. Some industries are not easy to navigate if you want to have a family and still excel in your career, but I have been able to, and I try to be the kind of employer who enables my employees to do the same. Q. Tell us about Indiana, PA! If we were to visit, what should we expect? And what should we do while we’re in town? A. Well, we are the Christmas Tree Capital of the World, so Christmas time is a great time to visit. We are also the home of Jimmy Stewart, so every November through December we celebrate with the It’s a Wonderful Life Festival. We have a kick-off parade, light-up night with all the businesses on Philadelphia Street, a giant tree, and weekend activities including music, vendors, food, and Santa visits. Philadelphia Street really is picturesque at the holidays, and the parade is my favorite of the year. Our agency sponsors Santa’s House during the festival, and we are thinking of entering a float in the parade next year!

We are very blessed in that we work very well together. We each have different strengths, so we balance each other quite well. We are not just siblings but the best of friends. We respect each other’s opinions, so when we do disagree, we are able to hear each other out and come to a conclusion or compromise we can both live with. It can be a difficult thing to go into business with a relative or even close friend. I’ve seen it go the other way and destroy relationships. But I can honestly say that, as much as I love my job, if I had to choose, I would choose my brother every time.

Don’t shrink or hide. At the same time, have some thick skin. When you are in the business of dealing with the public, you just never know where someone is coming from. To this day I do my very best, but sometimes there are still people that prefer a male voice. Does it make me angry? Yes. But will I let it kill a good account? No. I don’t take it personally, and I hand it off to my brother. And he will do the same with me when he feels he’s not clicking with someone.

Siblings Jay Blews and Shannon Lipniskis are co-agency principals of Hutton-Blews Insurance in Indiana, PA.

PRESIDENT'S MESSAGE

ONWARD & UPWARD: A MESSAGE FROM JASON ERNEST As we get going in 2019, I want to continue to discuss an IA&B initiative – one that is becoming a passion of mine. You will hear a lot about our involvement with the Future Business Leaders of America (FBLA) in the coming months, so I want to explain a little bit more about what this is. First, IA&B has officially become a partner with FBLA, meaning we are working closely with the organization to introduce our industry to high school students. And by our industry, I don’t mean insurance generally. I mean we are exclusively promoting careers in the independent agent channel. Second, we will take the first steps toward recruiting students in 2019. We will work with local schools to determine which students have interest in a career as an independent insurance agent, and we will seek out the best of the bunch. This could lead to job shadowing and internships with our member agencies and, ultimately, to full-time careers in our agencies. Third, we will assist with training and licensing these students. Last year IA&B launched a new education scholarship program – one that has been extremely well received by members. It will continue in 2019. Visit IABforME.com/scholarships to learn more. Finally, we will work with member agencies to make them an attractive employer for this new talent. Young talent will want to work – and stay – in vibrant, winning environments. Please seek me out at JasonE@IABforME.com if you have immediate interest in this initiative. We are looking for volunteers and for agencies that have immediate needs. The success of the program falls on all of us, as we build for the future.

NEW MEMBERS BRUNS INSURANCE SERVICES LLC Erie, PA BUBBY’S AUTO TAGS AND INSURANCE LLC Abington, PA COSAINT INSURANCE PARTNERS LLC Conshohocken, PA HARNER INSURANCE & FINANCIAL SERVICES INC. Harrisburg, PA

KELLY GLASS INSURANCE INC. Lebanon, PA LANDIS AGENCIES Quakertown, PA LEE INSURANCE LLC White Oak, PA M. D. KARSTETTER AGENCY INC. State College, PA PAMELA STERN & ASSOCIATES LLC Mill Creek, PA SECHLER INSURANCE GROUP LLC Somerset, PA SECOND OPINION INSURANCE AGENCY McClellandtown, PA Learn more about membership by contacting IA&B Vice President – Membership Tim Wonder. 800-998-9644, ext. 351 TimW@IABforME.com IABforME.com/membership

Jason Ernest, Esq. IA&B President & CEO

WELCOME

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PICS & POSTS

IA&B PARTNERS PROGRAM

OUR FEATURED PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes Donegal Insurance Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization. We have been providing quality property and casualty insurance protection since Donegal Mutual Insurance Company began doing business in 1889. Over the years, the Donegal Insurance Group has grown significantly and now writes property and casualty business in 24 states. The Donegal Insurance Group enjoys an A (Excellent) rating by the A.M. Best Company.

FEATURED PARTNER Donegal Insurance Group CHIEF EXECUTIVE OFFICER Kevin G. Burke President and CEO CORPORATE HEADQUARTERS Marietta, Pennsylvania A.M. BEST RATING A (Excellent) WEBSITE www.donegalgroup.com

As our operations have grown, we have expanded our ability to provide our independent insurance agents with a comprehensive suite of products. We have developed competitive commercial products that allow our agents to serve a broad spectrum of small, mid-market and larger commercial accounts. We work very hard to provide exceptional products and service in lines of business and markets that we know and understand well. At Donegal, we focus on providing superior technology and outstanding service to our agents and customers. We know that “ease of doing business” has become increasingly important to independent agents. Donegal has invested millions of dollars developing advanced technology that greatly enhances our agents’ and policyholders’ experience in doing business with us. Donegal has long recognized the value of an independent agent in assisting individual and business consumers navigate the insurance-buying process. Every day, we prove our commitment to the independent agency system by distributing our products exclusively through independent

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IABforME.com/Partners2019

agents. We are constantly looking for ways to deliver increased value to our agents and solidify company-agency relationships. We have benefited greatly from the feedback we receive from our regional agency forums, which helps us enhance our products and operations. Much has changed since we started in the insurance business 130 years ago, but one thing remains the same â&#x20AC;&#x201D; Donegal remains firmly committed to delivering a better value to our agents and policyholders. We look forward to mutual success as we work together with our independent insurance agents in serving the insurance needs of our customers.

THANK YOU Thanks to these partners for supporting the independent agent network.

PLATINUM PARTNERS ACUITY Agency Network Exchange LLC BBSI Donegal Insurance Group Erie Insurance Group Farmers Mutual Fire Insurance Company of Marble Insurance Agents & Brokers Service Group Millers Mutual Group Penn National Insurance Plymouth Rock Assurance The Main Street America Group BECOME A 2019 PARTNER TODAY

Donegal Insurance Group now writes property and casualty business in 24 states.

Interested in becoming a partner? Please donâ&#x20AC;&#x2122;t hesitate to contact us. Jess McWilliams Education Senior Director 800-998-9644, ext. 503 JessicaM@IABforME.com

PROTECT YOUR LARGEST ASSET YOUR POLITICAL ADVOCACY MATTERS By Craig Mader

am honored to serve as your chairman of the Insurance Agents and Brokers (IA&B) of Maryland Government Relations Committee. You have chosen to invest in your membership with IA&B, and that should be meaningful to you. Your organization exists to offer you licensing and continuing education opportunities, provide errors & omissions coverage, to provide unbelievable resources, and to protect your insurance business through advocacy at the Maryland State House. We have very effective representation in Annapolis in the State House. Our lobbyist, Bryson Popham, has established and nurtured relationships in the halls of state government and has earned the respect of the governor, the Senate Finance Committee, and the House Economic Matters Committee – the committees that decide insurance issues. State lawmakers know him well, and respect his positions, which protect you. Our Government Relations Committee members volunteer their time to look out

for the interests of IA&B members, and that should earn your support. Believe me, these relationships make a world of difference to you as an IA&B member for the protection of our industry, your livelihood, and the protection of your greatest asset – your business! My greatest frustration is our members’ apparent apathy or the lack of awareness when it comes to understanding the mission of advocacy and supporting your organization’s AgentPAC. Perhaps

some feel that they cannot have an impact, don’t feel politically connected, or feel that they are unaffected. Wrong on all counts! Consider these points: • Your agency and business is likely your largest asset, and the protection of its value is, presumably, a priority to you. • You may think that your friendship or acquaintance with or financial support of your local representative or senator is protecting your position (you could not be more mistaken).

Those whose interests are 180 degrees opposed to yours will fill the vacuum created by your inactivity. — Craig Mader

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• Through IA&B, you have an audience with the government officials who decide issues important to you. • There is an assumption that government makes logical decisions affecting business. • To the uninitiated, it requires money to gain an audience with those who impact your livelihood and the value of your agency. Maryland consistently underperforms in comparison to the other associations in our tristate IA&B organization when it comes to funding our AgentPAC. We need to step it up. Of our $12,500 annual goal, we raise barely half of that amount each year. Certainly you can earmark $500 per year to protect your asset.

SUPPORT AGENTPAC Through a political action committee, IA&B represents and protects your interests in state government. AgentPAC allows you to participate in the political process and is the most proactive and effective tool you have to get involved. AgentPAC contributions help fund candidates who understand our concerns and advocate on behalf of our interests. It brings the collective force of agents throughout Maryland to bear on key legislative elections that determine who controls the flow of public policy from the Maryland State House. Your involvement with AgentPAC can make a difference in our ability to succeed within the political arena and further secure your future. IABforME.com/MdPAC

continued on page 16

IA&B works on your behalf to ensure that Maryland legislators and regulators understand the issues affecting agents. But it is your financial support that helps our message to be heard loud and clear. Please consider contributing. More information at IABforME.com/AgentPAC

continued from page 15 If you have better ideas for effectiveness, we want to hear them. We think we have the right strategies for effective impact on our agency businesses, but we are always open to your input. In fact, let us know if you want to get involved. We have a place at the table for you. To reiterate, you need advocates in our state government who understand your value. In my opinion, you have a very serious interest in how your business is treated. Without your support, we allow the uninformed to chip away at your value as a service professional and the value of your agency. Also, those whose interests are 180 degrees opposed to yours will fill the vacuum created by your inactivity. We battle trial lawyers who are looking for financial advantage and consumer organizations that do not understand your products and would just as soon see direct writers deliver our products. To these folks, you are an unnecessary additional expense to the consumer, so make your voice heard. Finally, as Bryson Popham has stated to our committee, advocacy is not so much the passing of laws that affect our industry, but preventing those laws that can do us harm. Support your AgentPAC for results!

raig Mader is chairman C of the IA&B of Maryland Government Relations Committee, as well as the vice chairman of the IA&B Service Group. He is a partner at Craig S. Mader Insurance Agency in Crofton, MD. Contact Craig at Craig@MaderInsurance.com.

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GETTING TO KNOW IA&B LOBBYIST BRYSON POPHAM Bryson Pophamâ&#x20AC;&#x2122;s allegiance to the independent agent community runs deep. A former independent insurance agency principal (and association member), his passion for politics led him to transition his career. He began representing Marylandâ&#x20AC;&#x2122;s independent agent community in 1982 and, since then, has racked up a number of legislative victories to help preserve our profession and protect our customers. IA&B President & CEO Jason Ernest (left) and Government Affairs Director Lauren Brinjac at a legislative reception with Bryson Popham in Annapolis.

FEBRUARY 2019

Q. Why did you become a lobbyist?

Q. What can agents do to assist your efforts?

A. I was a legislative aide for my local legislator and became interested in how I could influence legislative action.

A. Agent participation is essential to the success of IA&B’s legislative efforts. While legislators are accustomed to dealing with a lobbyist like me, there is no substitute for the views of an agency principal whose business is directly affected by a legislative proposal. If the agent is a constituent of the legislator, the impact is obviously greater. IA&B has been truly fortunate to have a dedicated group of members who will step up when asked to engage in grassroots lobbying.

Q. How did you enter the field? A. I was a principal in an independent insurance agency and a member of PIA [Professional Insurance Agents of Pennsylvania, Maryland and Delaware – a precursor to today’s Insurance Agents & Brokers]. My interest in legislative issues coincided with the PIA’s need for a lobbyist in Maryland. Q. What do you like most about your job? A. Working with the member agent volunteers on the IA&B Government Affairs Committee. These are the people who take time away from operating their agencies to come to meetings, call legislators, and set legislative policy for the association. It’s a privilege to work with them. Q. How long have you represented IA&B? A. Since 1982. Q. What do you consider your greatest accomplishment(s) while representing IA&B members?

At the same time, we should recognize that the world is changing around us, and that the State legislature reflects that world. In 2019, the 188 members of the Maryland General Assembly will be more diverse, both culturally and racially. Almost half of them – 71 in total – will be women. While our greatest strength has always been, and remains, our members who serve their clients in each of the 47 legislative districts in Maryland, we should make a concerted effort to involve more of them, and a greater variety of them, in educating legislators about the value of the services we provide. Only then will we be effective in seeking to influence legislators’ actions.

A. Elected officials are increasingly disconnected from business – especially small business. There are far fewer business owners in the Maryland legislature today than there were 25 years ago, and less than a handful of them are insurance producers. Because they do not know our business, they can be tempted by simple solutions to complex problems, such as cutting commissions when insurance rates increase.

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Our constant challenge is to educate legislators about our business and about the value of our services. This is a collaborative effort between IA&B staff, IA&B members, and myself. I can say with pride that legislators most frequently look to IA&B when they have an issue involving insurance producers.

Contact David today.

Q. What legislative/policy issues do you anticipate will affect Maryland’s independent agent community in the coming year? A. Consumer groups continue to seek the elimination of auto rating factors one by one. To those in the industry, the effect will be obvious: reducing an insurer’s ability to adequately price risk will correspondingly reduce its willingness to write business. The voluntary market will not grow, but the residual market will. The unavoidable result of less competition will be higher insurance premiums for consumers. Insurance agents and companies always seek more competition and oppose proposals that substitute political judgment for economic reality.

IA&B offers coverage that agents need.

For personalized service, CONTACT DAVID WERTZ 800-998-9644, ext. 506 DavidW@IABforME.com IABforME.com/agency_insurance

GET INVOLVED WITH IA&B’S ADVOCACY EFFORTS

here has never been a better time to get involved in the political process on behalf of your industry. One thing is certain: Lawmakers in Annapolis continually make decisions that affect you, your business, and your clients. It’s critical for the independent insurance agent and broker community to have a role in this decision-making process. As the saying goes, “If you’re not at the table, you’re on the menu.” Your input is critical in this process. Although you have a team at IA&B continually advocating on your behalf, we still need your voice. If you would like to join your fellow IA&B members who are involved in the political process, there are several ways to do so. (Note: It’s your interest in the process and knowledge as an insurance professional that are

most valuable; you need not have prior political experience to get started.)

JOIN THE IA&B GOVERNMENT RELATIONS COMMITTEE The Government Relations Committee plays an important role in the association’s advocacy program by providing input to our legislative staff to guide policy development and help shape legislation to benefit the industry and small businesses. Time commitment: The committee meets as necessary during the legislative session – usually two or three times a year. Most meetings are via conference call, but occasionally in person in Annapolis. Learn more and volunteer: IABforME.com/gr_position

FEBRUARY 2019

BE A KEY CONTACT Lawmakers prioritize hearing from their own constituents (those members of their district responsible for voting them into or out of office). If you have a personal relationship with your local legislator and are interested in communicating with him or her about issues important to the insurance agent and broker community, let us know. Additionally, if you have interest in testifying or acting as a resource at legislative or regulatory meetings and public hearings, we’d like to hear from you. To learn more and volunteer, contact IA&B Government Affairs Director Lauren Brinjac at 800-998-9644, ext. 607 or LaurenB@IABforME.com.

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2018 AgentPAC of Maryland Contributors We sincerely thank everyone below for contributing at every level. Your financial support of AgentPAC helps make sure your voice, collectively with other agents, is heard during the legislative process, and helps us as we advocate for ways to strengthen agents’ political interests on key insurance and business issues in Maryland. Learn more at IABforME.com/AgentPAC.

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PRIMARY AGENT EDITORIAL Editor: Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606 Contributing editors: Jennifer Ross, Megan Fioretta, Melissa Telesha

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