NOVEMBER 2020
KIM SHOFF REFLECTS ON AGENCY MERGERS
CYBER SECURITY THREATS
Exclusive Member Magazine
EMPLOYEE TRAINING & DEVELOPMENT
LOOKING OUT FOR THE PLACE THEY CALL HOME Not only does Grinnell Mutual insure homes and rental properties, but we can cover what’s inside, too. Your customers can be confident in their future knowing that we will keep our promise to provide coverage for what’s important to them. Trust in Tomorrow.® To find out more about what we can do for you and your customers, contact Jason Leister, Sales Manager, at jason.leister@grinnellmutual.com.
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grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2020.
NOVEMBER
2020
CONTENTS FEATURED 8
Q&A WITH KIM SHOFF Kim Shoff, CIC, president and owner of Carlisle Insurance Associates, shares her experience with an agency merger, commitment to professional development, and love of the Baltimore Orioles.
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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 # 2020-11, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2020. 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.
CYBER SECURITY THREATS Learn how to protect your agency from the latest cyberattacks.
EMPLOYEE TRAINING AND DEVELOPMENT I A&B’s contracted HR consultant, Mosteller & Associates, gives tips on how to develop a winning team.
MONTHLY 2 3 4 6 13 18 20 21
CHAIR OF THE BOARD’S MESSAGE CLAIRE-IFICATION COVERAGE CORNER NEWS & NOTES IA&B PARTNERS WELCOME NEW MEMBERS PICS & POSTS UPCOMING LIVE WEBINARS
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CHAIR OF THE BOARD’S MESSAGE
A COMMITMENT TO LIFELONG LEARNING There are many traits that insurance producers share – personal drive, intelligence, analytical ability, problem solving, and product knowledge, to name a few. Yet, beyond those skill sets there is another commonality … a commitment to life-long learning, or “career-long learning.” I’m sure you’ve heard it expressed that insurance producers enjoy and make a career out of our profession because it never gets old. No two days are the same, and there is always something new to learn. It is absolutely necessary because as national and worldwide industries continually innovate, property and liability risks and hazards morph into new arenas. Coverage has to adjust, and it’s imperative that we, as insurance professionals, grow in our knowledge.
INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 191 Main Street | Annapolis, MD 21401 800-998-9644 | IABforME.com
BOARD OF DIRECTORS OFFICERS Craig S. Mader, Chair Crofton, MD Richard M. Rankin, CIC, Vice Chair Lancaster, PA
MEMBERS Gregory H. Bennett
Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA E. Stephen Burnett, CIC, ARM Wilmington, DE N. Lee Dotson, CIC, AAI
Wilmington, DE
I’m proud of the role that our association, IA&B, plays in our educational pursuits. Just look to Kevin Amrhein’s monthly columns in this magazine that delve into coverage interpretations. Or review the plethora of continuing education and insurance designation courses that IA&B offers on a weekly basis. Or consider the knowledge that the IA&B staff (here’s to Claire Pantaloni and Don Bankus!) share when we reach out with conundrums.
Andrew Enders, Esq.
Harrisburg, PA
Len Gieseler, LUTCF
Pottstown, PA
G. Greg Gunn, CIC
Lemoyne, PA
Bryan C. Hanes, JD
Hagerstown, MD
Jason R. Hess
Coraopolis, PA
Lisa A. Leach Goth, CIC
New Bethlehem, PA
Our industry is complex, and our jobs are hectic. (Let’s face it – we wouldn’t want it any other way.) But it’s reassuring to know that we can rely on IA&B for smart articles and educational content that keep us apprised of all that’s new and developing.
Christopher J. Miller, CIC
Jonestown, PA
Finally, please indulge me as personally express my condolences to Jerry Milton’s family and thank them for sharing him with us. What he did for IA&B and its educational program development was legendary. He pioneered the insurance educational experience, was innovative, and as we all know, was entertaining! I am proud to have called him a friend. RIP, Jerry. Respectfully,
Michael A. Papa, CIC, MBA Hunt Valley, MD William H. Purdy
Sunbury, PA
Jason Rodriguez
Wilmington, DE
D. Bradley Rosenkilde Jr.
Hunt Valley, MD
Tara S. Silfies, CPCU
Bethlehem, PA
Robert L. Smyrl Jr., CIC
Hatfield, PA
J. Marshall Wolff, CIC, CPCU Easton, PA
NATIONAL DIRECTORS Michael P. Ertel Sr. (PIA) Columbia, MD G. Greg Gunn, CIC (IIABA) Lemoyne, PA
Craig S. Mader Chair of the Board
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Bel Air, MD
NOVEMBER 2020
Diane Hornung Hanby (IIABA) Wilmington, DE
CLAIRE-IFICATION
CLAIRE-IFICATION
IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR Are you a member with a question? Contact Claire to find the answer at 800-998-9644, ext. 604 or ClaireP@IABforME.com.
QUESTION:
I am placing a piece of business through a broker. Why do they keep referring to themselves as the agent and to me as the broker?
ANSWER: Your “broker” is probably right and likely is the “agent.” The adoption of the Producer Licensing statute around 2002-2003 has generated a lot of confusion around what is very basic terminology in our industry. That confusion lingers because of the way we use these terms and can occasionally cause some issues as explained below. First, the law now grants the licensing authority through a single “producer” license. However, the law also recognizes that as a producer, you are acting either as a “representative of the consumer” or as a “representative of the insurer,” which is the new terminology used in the statute. In fact, for each transaction, you are operating under one status or the other.
WITH CARRIER CONTRACT When you have a carrier contract and appointment, that appointment formalizes the fact that you are representing the insurer. You are, therefore, an agent of that insurer (to use the old terminology).
WITHOUT CARRIER CONTRACT When you do not have a carrier appointment and are accessing the insurer through another intermediary, you are acting as the representative of the consumer, and are therefore a broker under the old terminology. This can also happen when: • you use a Surplus Lines broker, a wholesaler, an MGA, or just another producer who happens to have a market you need, or • you are placing business with a carrier that does not appoint agents at all, such as the State Workers’ Insurance Fund (SWIF) in Pennsylvania. You then maintain your status as a representative of the consumer, since SWIF does not authorize you to represent them.
WHY DOES IT MATTER? This is not just semantics. If you do business in Pennsylvania, for every piece of business you write for which you are acting as a representative of the consumer (not appointed), you are required to have an agreement signed by the customer that spells
out the services you will provide and discloses if a fee will be charged and what that fee will be. Whether you charge a fee or not, the agreement must be executed. Failure to do so can cost the agency $5,000 in penalties for each missing agreement in your book. Eighteen years after enactment of this mandate, we still run into agents who are not aware of the requirement or improperly consider themselves to be agents in the transaction and fail to secure the “broker agreement” with their customer. If this is news to you, visit IA&B’s compliance resources and access our sample broker agreement to use with your Pennsylvania business when you’re acting as a “broker.” Then, set a clear process for your staff so that they know when the agreement must be secured.
This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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COVERAGE CORNER
COMPENSATED AND COVERED? AN HO POLICY’S TAKE By Kevin C. Amrhein, CIC The pandemic forced millions to adjust work routines. For too many, it removed work altogether. Some lost full-time jobs. Others gave up lucrative side-gigs due to insufficient demand. Folks will do what it takes to earn. Data show a rise in self-employment efforts and side-gigs that for some will last indefinitely. A few may consider insurance coverage for claims stemming from such activities, most will not. A few will be protected by another entity’s insurance policy, some will not. For those with nowhere to turn, to what extent if any will personal insurance provide cover? In this article, I’ll review ISO’s HO policy forms.
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THE BEST-CASE SCENARIO The insured divulged to you the nature of the income-producing activity and requested commercial insurance which you were able to secure, and now everyone’s happy and could care less about personal lines insurance. Okay, there, I had to say that. Time to move on.
THE LIKELY SCENARIO The insured doesn’t tell you squat about what anyone in his/her household is doing. The insured has not secured nor has access to separate cover for the incomeproducing activity. A claim alleging NOVEMBER 2020
bodily injury, property damage, and/ or personal injury stemming from an income-producing activity is filed against the insured. Now what? The search for coverage begins with the policy’s definition of “business.” In the ISO world, this definition is the same across all HO policy forms. Understanding the two parts of this definition is essential. And now, let us all rise for the reading of ISO HO form language: 3. “Business” means: a. A trade, profession or occupation engaged in on a full-time, parttime or occasional basis; or
b. Any other activity engaged in for money or other compensation, except the following: (1) One or more activities, not described in (2) through (4) below, for which no “insured” receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period; (2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity; (3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or (4) The rendering of home day care services to a relative of an “insured”. Part a. of the definition is where most work-from-home (WFH) exposures are captured. Claims stemming from such activities, whether compensated or not, are subject to any policy limitation resulting from “business.” (The good news for many WFHers is that their actions may still be addressed by an employer’s commercial insurance.) Insurers may use broad interpretations of trade, profession, and occupation to capture virtually any incomeproducing activity. However, such terms are not defined in the policy and will cause disagreement. For example, say the insured is an unemployed restaurant manager (an industry hammered by the pandemic) who agrees to provide a friend with childcare a few days a week in exchange for a few hundred bucks. Does this childcare qualify as that insured’s trade, profession, or occupation? If not, then it’s not a
“business” according to part a. Part b. is where it gets interesting.
PART B.(1) … WHAT THE $%&? Most humans scan first and read later. Thus, your human brain likely scanned Part b.(1) and saw what everyone else sees: $2,000. This earnings threshold is not new – it’s been an ISO standard for years. However, to assume this threshold applies to all income-producing activities is dangerous. Notice that this threshold is connected to activities that took place before the beginning of the policy period. This presents important questions: Was the insured receiving compensation for the activity – childcare, pet care, lawn care, personal care, home care, etc. – in the year prior to the current policy’s effective date? If so, did the insured receive more than $2,000 in compensation for such? If not, part b.(1) does not apply. Further, did such activity begin in the current policy term? If so, then part b.(1) does not apply. (Note that there are other exceptions created in part b. that I won’t address in this article.) In summary, any activity that is not captured in part a. or part b. of this definition is not a “business.” Thus, any limitation in the policy stemming from the term “business” would not apply.
THE “BUSINESS” LIABILITY EXCLUSION AND EXCEPTIONS In the September 2020 edition of Primary Agent, I wrote an article that addresses some HO property coverage concerns when a “business” is involved. You can access that article at issuu.com/primary_agent.
is the primary exclusion for a claim stemming from a “business.” I won’t include the full text of exclusion E.2. here, but unlike the definition of “business,” most agree that this exclusion is clear and broad in its application. There are exceptions worth noting. First, exceptions are made for certain rental exposures. Second, the exclusion does not apply to a “business” that is part-time or occasional and engaged in by a selfemployed insured who is under 21. Continued on page 18
AN HOUR WITH KEVIN Register for a 1-hour webinar. Member Price: Just $25 Earn CE by attending 1-hour webinars with IA&B Education Consultant Kevin Amrhein, CIC. INSURING MODERN TRANSIT RISKS NOVEMBER 19 2 - 3 PM INSURING YOUR SIDE-GIG NOVEMBER 24 2 - 3 PM Register today. IABforME.com/webinars 800-998-9644, option 1
For liability purposes, note that E.2.
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NEWS & NOTES APPLY FOR IA&B EDUCATION SCHOLARSHIP Want to become licensed, earn a designation, or gain CE, but funds are tight? Apply for an IA&B education scholarship by Dec. 1, 2020. IA&B provides over $10,000 in scholarships annually to individuals and member agencies to attend our education courses. Individual scholarships are awarded to those seeking a producer license, CIC designation, and CISR designation. Member agency scholarships are provided for CIC institutes, CISR seminars, and live CE webinars. IABforME.com/scholarships Questions? Contact Melissa Telesha 800-998-9644, ext. 104 MelissaT@IABforME.com
ESTABLISH TELECOMMUTING POLICIES Formalize your agency’s remotework procedures and expectations for staff and agency operations. IA&B now offers a Remote Work Agreement tool – a collection of Word documents which you can customize to meet your agency’s needs. It includes:
• Remote Work Agreement: Sample agreement for applicable employees and their supervisor to review and sign • Remote Work Policy Guidelines: Executive-level overview of telecommuting considerations
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• Remote Work Procedure Checklist: Index for use in conjunction with Remote Work Policy Guidelines IABforME.com/remote_work Questions? Contact: Claire Pantaloni, CIC IA&B VP – Advocacy 800-998-9644, ext. 604 ClaireP@IABforME.com or Don Bankus IA&B Legal & Corporate Affairs Director 800-998-9644, ext. 603 DonB@IABforME.com
MD ADDS ONLINE LICENSING EXAMS Maryland insurance professionals now can take insurance licensing exams online. As of Oct. 1, the Maryland Insurance Administration (MIA) switched its licensing vendor from PSI to Prometric. Prometric offers the ProProctor application for remote testing. It requires a computer (tablets not permitted) with a camera, microphone, and internet connection. For more information on system requirements and to perform a system check, review the MIA Licensing Information Bulletin on the Prometric website. In addition to online exams, Prometric also will operate traditional test centers throughout the state.
COMPLY WITH NEW PA TRAINING REQUIREMENT Carry the Life line of authority in Pennsylvania? Take our live CE webinar, Annuities – Consumer Protection and Suitability, on Monday, Dec. 7 to meet the state’s new annuities training requirement. ABOUT THE REQUIREMENT All producers (residents and nonresidents alike*) who hold a life and annuities license – even if they do not sell annuities – must comply with the one-time training requirement, which took effect Dec. 26, 2018. Producers licensed before the statute’s effective date must meet the requirement on or before the end of their next complete license period. (For example, if your license expired on March 31, 2019, you would have until March 31, 2021 – the end of your next complete license period – to comply.) For those who become licensed after the effective date, the requirement must be met on or before the end of their first licensing period. * If you’re a Maryland or Delaware resident producer and have already completed a similar annuities course, you may want to reach out to your carrier to determine if the Pennsylvania requirement can be waived for you. . IABforME.com/webinars
Prometric.com/Maryland/insurance Continued on page 19
NOVEMBER 2020
When it comes to supporting independent insurance agents, we believe that growth starts close to home. That’s why EMC has offices and representatives across the country — giving you personalized service from a trusted partner who knows the local market. And because we tailor our insurance solutions and loss control services to meet the unique needs of your customers, you can always count on bringing the best products to the table.
www.emcins.com ©Copyright Employers Mutual Casualty Company 2020. All rights reserved.
Q&A with
KIM SHOFF Kim Shoff, CIC is president and owner of Miller Carlisle Insurance Associates Inc., a full-service independent insurance agency based in Carlisle, PA.
Q. When you began with the agency as a receptionist in 1982, did you aspire to stay in the insurance industry? How did your career unfold? A. I started at Gibb-Miller Insurance as the receptionist in 1982. I had no work experience, no knowledge of what insurance was or what insurance actually did, and I lacked good communication skills. I really thought my new job would just be a short-term gig. I didn’t know what I wanted to do. Gene Miller took me under his wing and gave me opportunities and lessons that I didn’t realize at the time were so valuable. I moved from the receptionist to the bookkeeper and then a licensed agent and then onto bigger and better things. Q. Agency founder Gene Miller passed away unexpectedly in 2005, leading to your purchase of the business. Was the transfer of ownership planned? And what did you learn from the experience? A. Gene offered me ownership in the agency and the title of Vice President in 1997. Then in late 2005, when Gene passed away, I had a huge decision to make. I chose to honor Gene’s wishes and take over the agency.
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It was a big growing and learning experience, and I made my share of mistakes and had doubts many times. When Gene was still living and he talked about me taking over the agency one day, he would always say to me, “I will only be a phone call away.” There were many times in those first few years that I really needed that phone call. Q. In 2018, you merged Miller Insurance Associates with Carlisle Insurance Services. What advice would you give to other agency owners who are approaching a merger or acquisition? A. From 2006 to 2017 the agency continued to grow in small numbers. I realized we were becoming stagnate and because we were a small agency, getting appointments with the larger carriers was almost impossible. Skip Hockley [a fellow independent agency owner] and I had conversations over a period of several years. Then we started serious conversations, along with Skip’s son Justin, over a merger. I had taken care of the financial obligation with the 2005 purchase of the agency, and I realized that combining efforts could be very beneficial to both agencies. I think my best advice is to look for the strengths of each
NOVEMBER 2020
person involved and to have very open conversations that address expectations. While the decision to merge took some time, getting to know Skip and Justin made the decision easy for me, and there are no regrets. The fact that Skip reminded me a lot of Gene Miller was a bonus. Q. Nearly everyone on your team holds an insurance designation. Tell us about your commitment to professional development. A. I believe learning is an ongoing process and exposing staff to educational opportunities benefits them and also benefits the agency. As professionals, it is our job to stay educated and to educate our clients. IA&B has been a resource that I have used for many different reasons and will continue to utilize for education and beyond. Q. Tell us about your hometown of Newville, PA! A. I was born and raised in Newville. (I still live in the Newville area but not in town.) I remember as a kid playing
in the alleyways and the playground and walking just about everywhere and feeling safe. There is still only one red light, and it is a dry town. In some ways Newville hasn’t changed much. That is both a good thing and a sad thing. Q. We understand that you’re an Orioles fan. Who is/was your favorite player? And do you have a favorite game memory? A. From the time I was a child, the Baltimore Orioles has been one of my favorite teams. As kids, my brother and I would listen to the games on the radio. I remember going to Memorial Stadium and watching the O’s and seeing Earl Weaver get thrown out of the game. As an adult, I enjoy visiting Sarasota, FL during spring training and going to Camden Yards for games, visiting Pickles Pub, Inner Harbor, and Fell’s Point. I have a whole list of favorite players, past and present, but my all-time favorite would have to be #22, Jim Palmer. Not only was he a great pitcher, but he looked really good in the Hane’s underwear ads. Just saying!
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• You will be the agency of record on all policies
• No initiation or monthly fees • Low to no volume commitments • Standard commission rates • 100% ownership of expirations • A broad mix of standard and niche markets that are state specific
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Contact Tim Wonder, VP - Membership TimW@IABforME.com • 800-998-9644, ext. 351
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CYBER SECURITY
CYBER SECURITY THREATS How to Protect Your Agency By Paul Kapadia Cyberattack. Phishing. Ransomware. Dark web. Cybersecurity and related compliance. These words were not part of general business vocabulary until recent years. Previously, the terms all sounded very techy, and business owners typically avoided dwelling on them unless they were forced to. At best, cybersecurity was considered an issue for corporations with global footprints, never for small businesses. Yet here we are – surely and steadily this vocabulary has made its way into the small-business dictionary as well.
THE REALITY OF CYBER RISKS A recent Travelers survey revealed that more than half (54%) of businesses believe a cyber-attack or data breach is inevitable. The survey also revealed that, while cyber-attacks on medium and large business increased significantly, cyber-attacks on small businesses tripled during the same timeframe.
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Today, cyber risks are a reality that no one can ignore and a greater risk than ever before. In fact, COVID-19 has added fuel to the fire. The pandemic forced changes to normal business processes that were in place for decades and in some cases even longer. And these changes have provided cyber thieves with the perfect opportunity to attack unprotected and under-protected businesses.
NEW TRENDS IN CYBER-ATTACKS A newer trend is cyber-attacks on managed service providers. One successful attack can compromise the security of many businesses and individuals in one shot, making it easy for hackers to access business emails and plant ransomware. Interestingly, these thieves devised a strategy to demand an amount of funds just small enough for businesses to decide not to pursue legal recourse and to settle the ransom to continue doing business. Oftentimes, these crimes are never reported,
NOVEMBER 2020
and victimized businesses adopt a false sense of security, assuming they are safe since they paid the ransom. In reality, many end up being hacked multiple times. Basically, each business has to create their own cyber security fence – depending on their business, business processes, and regulatory-compliance guidelines – to protect the trust of their customers.
CYBER INSURANCE EFFICACY While an increasing number of businesses have a cyber insurance policy to safeguard against losses from these attacks, many executives do not really understand the coverage and compliance requirements. Effectiveness of a cyber policy depends on how an application and regulatory questions are answered. Cyber insurance is not a preventive measure. It is only a recourse to cover losses – presumably all losses, but in reality, it is not that simple (like auto insurance). It has many caveats that one needs to understand and fulfill. The default expectation for any insurance coverage is that the policyholder has taken adequate precautions to prevent the peril. And proof of those precautions is required for any claim and smooth assessment process. Cyber insurance is no different. Policyholders are expected to have all necessary cyber-attack preventative measures in place to secure the cyber insurance coverage. Unless these are effectively established, cyber insurance policies may not be effective in covering losses.
CYBER SECURITY SAFETY NET How secure is your business? The most efficient and cost-effective way to deal with cyber threats is to create security measures based on your business processes. (These measures would also support your case in the event of a cyber insurance claim.) So how can you build this safety net?
SO WHAT DO YOU NEED TO DO? First, know your current state of cyber vulnerability and security. Are you unprotected or under-protected? Your IT service provider – whether in-house or outsourced – has implemented the measures they deem necessary. However, it is a good idea for these to be validated by an independent third party with industry-recognized credentials. (Again, this would also be useful in the event of a claim.)
Secondly, understand the latest security guidelines for your businesses that deal with customer data. For example, California implemented very stringent data security and accountability rules for businesses based on European data security measures (General Data Protection Regulation, or GDPR). Other states have taken note. New York implemented compliance requirements for insurance agencies, and Pennsylvania and New Jersey are following suit. It’s vital to stay up to date on regulatory requirements where you conduct business. Third, get to know all of the nuances of your cyber insurance policy to ensure that your business processes and preventive measures are compliant to your policy guidelines. Finally, consider a customized solution for cyber vulnerability mitigation that addresses your needs. Ideally, engage a firm that specializes in the insurance sector’s particular vulnerabilities, risks, and compliance requirements. They should be able to assess your agency’s security vulnerabilities and provide customized remediation strategies that are best for the Continued on page 18
ASSESS YOUR AGENCY’S VULNERABILITY IA&B members have reported recent ransomware and other cyberattacks. Due to the transition to remote work, our industry is vulnerable to cybercrimes. It only takes one weak point for a hacker to infiltrate your agency. How vulnerable are you? And how can you better safeguard your business? IA&B has partnered with Radiant to help protect your agency. Radiant provides fee-based cyber security vulnerability assessments, conducted by certified professionals. To learn more, visit IABforME.com/Radiant. Or contact: Jason Ernest IA&B President & CEO 800-998-9644, ext. 415 JasonE@IABforME.com
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IA&B PARTNERS PROGRAM
OUR FEATURED PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes Erie Insurance as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.
It’s the rare individual who is motivated by a genuine desire to help others. And it’s the rare company that puts that principle into practice. At Erie Insurance, we’ve been helping people make things right since 1925, working side-by-side with the best independent agents in the business. Our agents and employees are energized by a clear sense of purpose, performing to the best of their ability, because they know the work they do benefits millions of customers’ families and businesses. It’s part of being Above all in SERVICE® and it’s why we’re so committed to the independent ERIE agents who live and work in the communities they serve. On the strength of these relationships, Erie Insurance has risen to become one of the nation’s most respected property/casualty and life insurers.
CHIEF EXECUTIVE OFFICER Timothy G. NeCastro, President and CEO CORPORATE HEADQUARTERS Erie, PA A.M. BEST COMPANY A+ Superior WEBSITE erieinsurance.com
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Insurance Agents and Brokers proudly recognizes Erie Insurance as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization. Today, we’re a FORTUNE 500® company operating in 12 states and the District of Columbia. ERIE has more than 5.8 million policies in force. We’re the 16th largest property/casualty insurer in the United States, based on total lines net premiums written, and the 11th largest homeowners multiple peril insurer and 12th largest private passenger auto insurer based on direct premiums written. Erie Insurance Group is a Barron’s 500 company and has been recognized by Confirmit with an Achievement in Customer Excellence Award in the Voice of the Customer category for claims service.
NOVEMBER 2020
IABforME.com/Partners2020 IABforME.com/Partners
THANK YOU
Erie Insurance’s founding principle is: “To provide our policyholders with as near perfect protection, as near perfect service as is humanly possible, and to do so at the lowest possible cost.” That same principle guides us today.
Thanks to these partners for supporting the independent agent network.
We still adhere to disciplined underwriting, fair pricing and a prudent investment philosophy. We still practice the Golden Rule–treating others as we want to be treated. We still thrive on the ERIE family spirit, employees and agents working together as a team for the good of our customers and the communities we serve. At our core, we still believe the truth in our founder H.O. Hirt’s words:
PLATINUM PARTNERS Acuity Donegal Insurance Group Erie Insurance Farmers Mutual Fire Insurance Company of Marble Insurance Agents & Brokers Service Group Inc. Millers Mutual Group
Success in business is not a matter of tricks or gimmicks… it is just a matter of simple common sense, mixed with just plain decency. - H.O. Hirt Erie Insurance Founder
Penn National Insurance Plymouth Rock Assurance The Main Street America Group
BECOME A PARTNER TODAY Interested in becoming a partner? Please don’t hesitate to contact us. Tim Wonder IA&B VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com
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THE MANY WAYS TO TRAIN AND DEVELOP EMPLOYEES By Karen DiGioia
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NOVEMBER 2020
EMPLOYEE DEVELOPMENT
Follow along as IA&B’s contracted HR consultant takes a deep dive into training and development. From structured training and mentoring, to soft skills training and stretch assignments, there are numerous ways to support and grow your team – and in turn, benefit your agency’s bottom line.
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EMPLOYEE DEVELOPMENT What’s the most valuable lesson that 2020 has taught you? For me, this year has brought to the forefront some “oldies but goodies” about basic hygiene. Wash your hands; cover your mouth when you sneeze – but with your elbow, not with your hands; keep your hands away from your face (not that I wasn’t already doing those things but we can all use a reminder now and then!). 2020 also taught me to be careful how loudly I cheer in the new year when I really have no idea what that new year will bring. But more than anything, I think that 2020 has taught us that there’s more than one way to do almost everything!
Before we cover some of the ways that training and development can be accomplished, let’s talk quickly about the difference between training … and development. Training is about teaching people what they need to know to accomplish the task at hand. Development is about providing people with the opportunity for growth and contribution at a higher level which is geared more toward future, rather than present, performance. Both are important, and both can and should be achieved through a variety of approaches. Now let’s talk about some of the ways training and development can happen.
If you’re questioning if [soft skills training] is truly worth the investment – think about the impact (and expense) of poor communication, bad management, faulty decision making, and inadequate time management. – Karen DiGioia, Mosteller & Associates
We’ve learned that much of the work we’ve typically done in the office can also be done remotely. We’ve learned that, while being face-to-face may be the best way to connect with folks, we can connect without being in the same room. We’ve learned that, when Zoom crashes, there are other options available that will work in a pinch (like Microsoft Teams, or even an “old fashioned” telephone call). We’ve learned that there are many ways to accomplish whatever it is we set out to accomplish. We may be accustomed to one way, but when that one won’t work, there are always other options out there. This is also true with training and development. For the sake of time and wordcount, I’m going to work from the assumption that your agency already has a commitment to training and development of employees – that you understand that an intentional approach to training and development will improve the performance of employees and improve their level of job satisfaction. And in turn, you know that it will increase employee engagement and improve employee retention, ensure that your agency is providing a consistent product and service level upon which your customers can depend, and ensure that you have employees ready to meet the needs of the agency in the future.
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INTERNAL STRUCTURED TRAINING From an internal training perspective, most organizations have some sort of structured training programs in place. This includes “all employee” training such as a structured onboarding program and other “job specific” and “agency specific” training programs. These programs are typically designed for employees who are new to the agency or new to their role. They ensure that your employees approach their work consistently with the same base of knowledge and a clear understanding of agency policies, practices, protocol, procedures, service levels, etc….
EXTERNAL STRUCTURED TRAINING External training (in person or online) may include offerings through IA&B or other insurance training organizations. This training is typically geared toward specific subject matter knowledge and may include training for new agents, licensing prep, compliance, and continuing education. While not agency specific, these training programs can be an efficient and effective way to see that your employees gain industry-specific knowledge and expertise.
NOVEMBER 2020
MENTORING Mentoring can be a great way to develop employees – both for the mentor and the mentee. This method of training and development utilizes internal expertise and links more experienced employees with those who are newer to the industry. Typically, in these relationships, both employees benefit and learn, and it can help to build stronger connections between employees and strengthen the overall team.
SOFT SKILLS TRAINING When you’re thinking about training and development, make certain not to forget “soft skills” training. Communication skills, management training, critical thinking, time management, team building (the list really does go on and on). All of these skills are critical for the success of your employees and your agency, but it shouldn’t be assumed that they “come naturally.” Typically, soft skills training is provided through an external provider. While this generally involves a financial investment, the money spent is generally returned many times over in the form of more effective performance, and increased loyalty and morale. And if you’re questioning if these things are truly worth the investment – take a few minutes to think about the impact (and expense) of poor communication, bad management, faulty decision making, inadequate time management … you get the idea.
STRETCH ASSIGNMENTS Stretch assignments are a great way to develop the talent that you have in-house. By giving employees an opportunity to get involved with work that is outside their job description, you provide the opportunity for development while at the same time increasing the amount of “coverage” the agency has. Especially in smaller organizations, it’s not uncommon for individual employees to hold all the knowledge and expertise in certain areas. What happens when that employee gets sick (one of 2020’s new lessons for all of us that I didn’t mention earlier is that employees should not, under any circumstance, come into work when they are sick!) or goes on vacation (yes, vacations will happen again at some point in the, hopefully, not too distant future), or heaven forbid, retires with limited notice? If you crosstrain employees, you can ensure that you’re never in the vulnerable position of having one person who is the holder of any key piece of knowledge or the only one who can perform a certain task.
So as 2020 winds down and we all get ready to cheer for the arrival of 2021 (and, yes, in spite of what I said earlier, I will be cheering loudly and I’m guessing you will be, too), turn your thoughts to the ways that you will be training and developing employees in the new year. If you haven’t already done so, sit down with each of your employees (in person – socially distanced and wearing masks – or remotely). Talk about their performance over the past year (be reasonable – it’s been a rocky road for most of us) and your plans and their interest in training and development in the new year. The more you train and develop your employees, the more ways you’ll have to do almost anything that comes your way! And if you need to reach me, there’s more than one way to do that, too. Either call 610-779-3870 or email me at karen@mostellerhr.com. As part of your IA&B member benefits, access to HR-related advice and expertise is just an email or a phone call away! Karen H. DiGioia provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm.
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COVERAGE
IA&B Members: Shopping your policies?
Continued from page 5
CONCLUSION Even if coverage is available through the HO policy, better options exist. Personal lines agents should include in all client-communications the need to disclose and examine all income-producing activities by anyone in the household to ensure the best coverage available is reviewed.
IA&B Service Group can help protect your assets. We provide: ▲ Errors & Omissions ▲ Cyber Liability
That’s all for now. Until the next round … cheers! Kevin C Amrhein, CIC, is IA&B‘s 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.
▲ Umbrella ▲ Employment Practices Liability 800-998-9644, option 3 IABforME.com/agency_insurance
CYBER SECURITY Continued from page 11
business. You can choose any service provider, including your existing IT firm if they can implement remediation steps and protect your business. In case you don’t know where to start and who can help, reach out to IA&B. Your association worked on creating a cost-effective option for cyber vulnerability assessment that all can leverage. Stay vigilant. Stay safe! Paul Kapadia is an IT professional with over 25 years experience with software products for insurance, fintech, insurtech, cyber security, technology startups, and Fortune 100 clients globally. Currently Paul is guiding IA&B through its digital transformation journey by leveraging best practices and the latest platforms to derive operational and cost efficiencies. He is also working closely with IA&B to offer products and services that make independent insurance agencies safer, smarter and more profitable. Paul is available to consult with IA&B members today. Contact him at PaulK@IABforME.com.
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NOVEMBER 2020
WELCOME NEW MEMBER Storm & Park Group, LLC State College, PA Have a question about your member benefits? Contact: Tim Wonder, VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com
NEWS
Continued from page 6
PA DISCONTINUES TEMP PRODUCER LICENSING Effective Oct. 19, the Pennsylvania Insurance Department (PID) no longer accepts applications for temporary producer licenses. These licenses were issued beginning in April due to COVID-19 disruptions. The PID ceased temporary licensure now that test centers are operating and online remote testing is available.
DOI ADDRESSES GENDER IDENTITY DISCRIMINATION The Delaware Department of Insurance (DOI) recently revised and reissued Bulletin No. 86 on the Gender Identity Nondiscrimination Act. The purpose of the March 23, 2016 version of bulletin was to provide guidance on implementation of the state’s Gender Identity Nondiscrimination Act, which was signed into law on June 19, 2013.
®
Per the DOI, the purpose of revising and reissuing the bulletin this fall was to: • Reinforce that the Gender Identity Nondiscrimination Act continues to apply to prohibit discrimination in the provision of insurance in any way based on an individual’s gender identity; and • Confirm that, notwithstanding the issuance of a Federal Final Rule, the Department interprets Section 1557 of the Patient Protection and Affordable Care Act (ACA) to prohibit discrimination on the basis of an individual’s gender identity.
HarfordMutual.com
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PICS & POSTS
PICS & POSTS
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NOVEMBER 2020
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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
TRAINING & EDUCATION
UPCOMING WEBINARS
SALES Account Executive: Travis Yaga travis.yaga@theygsgroup.com, 717-430-2021
EDUCATION REMINDER IA&B will continue online-only education through the end of the calendar year. We pledge to provide high-quality education with engaging faculty in formats that prioritize your health.
CYBER ATTACK NOT IF... WHEN YOU ARE ONE CLICK AWAY FROM DISASTER
NOVEMBER 2020 Connect with Other Agents and Get CE Credits Online Register today! 800-998-9644, option 1 IABforME.com/OnlineTraining DATE
TOPIC
TIME
Nov 3
Agent's E&O Documentation
1 PM-4 PM
Nov 3
CISR - Commercial Casualty II
8 AM-4 PM
Nov 4
Ethics and E&O: Synergy, Not Rivalry
1 PM-4 PM
Nov 5
CISR - Personal Residential
8 AM-4 PM
Nov 10
William T Hold: Personal Lines
8 AM-4 PM
Nov 10
Alphabet Soup: D&O, EPLI, FLI & EBL
1 PM-4 PM
Nov 10
Additional Insureds & Certificates
9 AM-Noon
Nov 12
CISR - Personal Auto
8 AM-4 PM
Nov 16
William T Hold: Commercial Lines
8 AM-4 PM
Nov 17-18 CIC - Personal Lines
8 AM-5 PM
Nov 17
CPIA - Sustain Success
8:30-4:30
Nov 17
Functions of Life Insurance
9 AM-Noon
Nov 17
Water Damage Webinar
1 PM-4 PM
Nov 18
Commercial Transportation Exposures 9 AM-Noon
Nov 18
Problem Commercial Liability Claims
1 PM-4 PM
Nov 19
Hour w/Kevin: Modern Transit Risks
2 PM-3 PM
Nov 19
CISR - Agency Operations
8 AM-4 PM
Nov 24
Construction Contracts
9 AM-Noon
Nov 24
Hour w/ Kevin: Insuring Your Side Gig 2 PM-3 PM
PROTECT YOUR BUSINESS NOW CALL 800-998-9644, OPTION 3 21
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