Resources Magazine Winter 2016 by resourcesmagazine

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Contents FEATURES

ALLIANCE NEWS

Employment Practices Liability

The Sun Never Sets

By Chris Christian, CIC, RPLU

CRM curriculum updates, the new online MEGA Seminar, and the 2017 Dynamics Series

Human resources malpractice coverage

Explore Your New Options

We’re expanding the CIC Program

The Introductory Series

Caring & Competency

28 Academy Research Associates

An interview with Jules O. Gaudreau Jr., CIC, ChFC—NAIFA President 2015–2016

Investing in the future of our industry

36 The Denver MEGA Seminar

By William J. Hold, CRM, CISR

Generational Insights

By Julia Kramer, SPHR, SHRM-SCP

Ask Bettie

Industry insights and breathtaking views!

An open letter to Millennials

In the Spotlight

Designees represent The UACIC and UACRM Programs foster new talent in the insurance and risk management industry. Shown here, nine students who participated in the UACIC program at the University of Central Arkansas were in attendance this past September at the CIC Personal Lines Institute in North Little Rock. How exciting to see so many graduates of the UACIC program together at one institute, taking their next step toward career success! For more information about the UACIC and UACRM programs and how YOU can invest in the future of our industry, go to scic.com/academy.

L to R: Hunter Schroeder, CIC; Lisa Tanner, CIC; Kevin Cecil, UACIC; Courtney Morgan, UACIC; Chase Williams, Jason Pollard, Chase Pledger, CIC; Taylor Horton, UACIC; Garet Philbrook, CIC

COLUMNS

FEATURE

Coverage Corner

The three “Rs” and high net worth homeowners By Dennis Phillips, CIC

22 By the Numbers Hiring the Right Person the First Time By Jon Persky, CPA, CIC, PHR, and Jenny Foster, CIC

We b s i t e : TheNationalAlliance.com

Outstanding CSRs

Excerpts from the 2016 national winner’s and four finalists’ essays National Faculty member Patrick Deem, CIC, and 2016 Outstanding CSR of the Year national finalist (and 2008 national winner), Lisa Manley, CIC, CISR, CPIA, CWCC, PRIS

EMAIL: alliance@scic.com

Phone: 8 00-6 3 3-2 165

This article is the third in a series by Chris Christian and is provided for educational purposes only. The information presented is necessarily brief and paraphrased and is not legal advice. If any of the information here conflicts with specific policy language, the policy language holds.

4 Resources | Winter 2016

BY CHRIS CHRISTIAN, CIC, RPLU

ne of the most straight forward ways to think of Employment Practices Liability (EPL) is as “malpractice” coverage for the human resources department. Human resources malpractice puts the employer and involved individuals at risk of violating regulations and incurring resultant regulatory scrutiny and action, as well as attracting civil suits based on a variety of causes of action. In this article, we will review EPL exposures, why EPL coverage should be part of the insured’s program, some interesting coverage features that can help you tailor coverage to your insured’s needs, and the benefit of risk management services provided by the industry. This information will provide you with many cogent talking points for discussion with your insureds and prospects, as well as outfit you with additional insight for your negotiation of terms with underwriters.

Employment Practices Liability Exposures In spite of an insured’s best efforts to treat people fairly and to follow all applicable laws, there can be gaps in awareness, lapses in judgment, bad advice received, needed advice not sought, and sometimes just plain bad luck, all of which can result in an employee, or even a customer, bringing a claim against an employer. All of these uncertainties—along with changes in regulations which have made employment litigation profitable for the plaintiff bar—have led to the development of a robust Employment Practices Liability Insurance industry over the last 20+ years. There are tens of thousands of claims per year, and well over a billion dollars of premium in the U.S. insurance marketplace providing coverage for those who choose to insure their exposure. Still, there are

many insureds that do not carry EPL coverage, or that have only a few thousand dollars of bare-bones coverage provided through an endorsement on their combined Commercial Property and CGL package policy. As the EPL marketplace has developed, many other lines of business have rolled out exclusions to make it very clear that they do not cover this type of allegation. Some insureds believe that their workers compensation policy should cover EPL claims, while others believe their CGL policy will cover such claims. Still others believe their employees are “like family” and will never bring action against them, or that they’re too small to be a target. All of those theories are fine, until there is actually a claim, at which time the insured will be very surprised and disappointed to find there is no coverage. This can be especially disastrous for smaller insureds, as they can least afford to have an uncovered claim.

Offering EPL Coverage That Fits Your Insureds’ Needs It is a simple matter to offer EPL coverage to insureds, and no matter how many times they say they’re not interested—or even if they have a low-limit endorsement on their package, it would be prudent to offer robust coverage at least annually. Many carriers are willing to provide ballpark pricing based on nothing more than the insured’s full-time and part-time employee count. These ballpark prices assume adequate policies and procedures and no claims or circumstances, so they are subject to change upon completion of a full application. Once an insured figures out that carrying EPL coverage is a good idea, you may find that the employer has specific needs that require more than a basic policy. A no-frills policy will cover

Learn More, Earn More A two-hour EPL subject will be taught as part of the NEW CIC Commercial Multiline Institute. For an in-depth study of these issues, the James K. Ruble Executive Risk Seminar is an excellent resource. Debuting in the coming year is Jon Persky’s and Jenny Foster’s new book, Hiring, Managing, and Compensating Insurance Agency Personnel, which demonstrates the exposure (see more details on pages 22–25). Another National Alliance Research Academy publication that features EPL is Executive Liability Insurance (shop scic.com/ store/publications.html).

Once an insured figures out that carrying EPL coverage is a good idea, you may find that the employer has specific needs that require more than a basic policy. wrongful termination, discrimination, and sexual harassment claims brought by employees. But your insured may have independent contractors, interaction with the public, concerns about wage and hour violations, or several other areas of interest that require digging a bit deeper into the offered EPL policies to be sure they fit the insured’s needs. Here is a sampling of policy features that can be distinguishing factors from one policy to another: Retaliation Coverage Many policies do not include “retaliation” in their definition of employment-practices wrongful acts, and only mention it as an exception to workers comp and similar exclusions. Retaliation claims constituted over 44% of the EEOC charges in 2015—the highest percentage category in the entire menu of charges brought. To provide proper retaliation coverage for an insured, a policy should include retaliation within the definition of covered employment practices wrongful acts. If retaliation is a defined term, it should include any exercise of the employee’s civil rights, and not be limited solely to retaliation that violates whistleblower laws. Wage and Hour Coverage Insureds are often concerned about the exempt/non-exempt classifications of their employees, and the potential for unpaid overtime being assessed against them. There are some markets which will provide a defense coverage sublimit for wage and hour violations and just a small handful that will also provide coverage for insurable damages. Availability of this coverage varies by jurisdiction and industry. Continued on page 6. Resources | Winter 2016

Employment Liability Practices…continued from page 5. OFCCP Coverage Insureds that are doing business with the federal government are subject to the oversight of the Office of Federal Contract Compliance Programs (OFCCP), which is a subdivision of the Department of Labor. The OFCCP acts like a mini-EEOC and enforces affirmative action and equal employment opportunity requirements. Some EPL policies will include an investigation or audit by the OFCCP in the definition of a “claim.” For those insureds that are government contractors, this claim trigger is of the utmost importance. Immigration Investigation Defense Coverage If your insured is in an industry that typically has a high percentage of transient or visa-holding workers, the insured will be at a heightened risk of being subjected to investigations by immigration enforcement agencies. Immigration coverage will provide defense for investigations related to employing or harboring illegal aliens. Employee Data Privacy Coverage There is a growing trend by EPL carriers to add some kind of coverage (generally sublimited) for the breach of employees’ data. This may or may not be an enhancement to the insured’s program. One could argue that breach of employees’ data is an “employment-related invasion of privacy” (often a covered workplace tort), and in the absence of an employee data breach endorsement, the insured may have had access to the entire policy limit for such a claim. However, with an employee data breach endorsement, there is no question that the breach is covered, which is a good thing.

If the insured absolutely refuses to purchase a cyber policy (which will generally provide more robust coverage for the employee data breach exposure), having this endorsement on the EPL policy may come in handy. Read the endorsement and its restrictions and sublimits carefully, and keep in mind that it is rarely a substitute for an actual standalone data breach (“cyber”) policy. Notice to Executive In addition to coverage features such as the above, there is one recently developed housekeeping provision that is extraordinarily beneficial—notice of a claim being “made” only when certain persons become aware of it. Many EPL claims have fallen victim to late report problems because those with knowledge of a claim did not also

EPL Risk Management Services The last thing we will have time to touch on in this article is the availability and use of risk management services provided by carriers in the EPL industry. EPL exposures generally respond very favorably to prudent and considered action, and an insured that seeks advice before terminating or reassigning an employee, laying off part of the workforce, addressing disputes in the workplace, and so on, will generally have a better outcome than one that shoots from the hip. Carriers have long recognized this and have offered risk

EPL exposures generally respond very favorably to prudent and considered action, and an insured that seeks advice…will generally have a better outcome than one that shoots from the hip. know there was an EPL policy to which the claim needed to be reported. Also, EEOC investigation notices often arrive in the mail and are dealt with by clerical personnel who do not recognize them as a claim. This type of late report is not intentional on the part of the insured. The industry has created a solution to this late report issue by reframing when a claim is “made” into being that time at which the Human Resources manager, general counsel, risk manager, exec-

About the Author: Chris Christian, CIC, RPLU Chris Christian is a member of The National Alliance National Faculty. She stumbled into insurance in 1985 as a temporary worker in a bank-owned agency and got hooked on the delightful mix of legal concepts, contracts, sales, and services that comprise the industry. She has specialized in professional liability since 1991, working on the carrier and wholesaler sides. In addition to her daily practice of the art and science of wholesale brokering, Chris is a frequent contributor to industry publications, speaker at events and educational seminars, and the author of Cyber Insurance Basics, available on Amazon.

6 Resources | Winter 2016

utive officer, or similar level personnel become aware of the claim. (Policy language varies.) This substantially diminishes the threat of late report and is a significantly favorable wording development.

management services to their insureds. These services range from online articles, to assistance with employment manuals, to hotlines staffed by labor attorneys or human resources consultants. Unfortunately, the utilization rate of these valuable services hovers around 10% of policyholders. Unless 90% of policyholders never need any advice or assistance, it would appear that most insureds are missing out on the benefits of these free services. Unnecessary claims, money spent on paid services, and less efficiency in the human resources management environment are all consequences of this under-utilization of risk management services provided by carriers. As you can see, there are a lot of intricacies to the EPL industry as well as much room for growth. The coverage is here to stay, and should be a staple in commercial insureds’ programs. n

Updates on new opportunities and hot topics The National Alliance is developing to help you stay competitive, today and tomorrow.

What’s New in the CRM Program in 2017

2017 Dynamics Series

The risk-management industry is changing fast, demanding that professionals at all levels constantly pursue new knowledge and update their skills. Those who are committed to continuing education are looking for innovative risk and insurance industry concepts that provide a competitive edge.

Get ready for the 2017 schedule for the Dynamics Series. The dates are set, so you can plan to re-energize your interpersonal and professional skills. The programs in the Dynamics Series give you an advantage when it comes to acquiring and retaining customers.

Lifelong learning, as a result, must be strategic, blending industry fundamentals and emerging trends to create maximum value for individuals looking to grow their careers and benefit their organizations. In response to these evolving needs, the academic team at The National Alliance is hard at work refreshing and revising the curricula within the Certified Risk Manager (CRM) Program. The five CRM courses are Principles of Risk Management, Analysis of Risk, Control of Risk, Financing of Risk, and Practice of Risk Management. The revisions to Control of Risk and Practice of Risk are being implemented first. These courses are being updated and restructured to broaden and deepen the discussion of risk management concepts. More realworld examples and practical-application exercises are being developed for inclusion in both courses.

Control of Risk

The updated and revised CRM Control of Risk course will open with an in-depth discussion of risk control fundamentals and techniques. The course will focus on risk control and mitigation treatment of Human Resources, Property, and Liability exposures. Cyber threats are an evolving and growing concern as hacking and data breaches present a pervasive and growing threat. Cyber risk, a top-ten global risk concern, is given special attention in the revamped Control of Risk course. A pertinent discussion of traditional and innovative fleet risk-control techniques is included and is centered on practical solutions for risk managers. Other timely issues that are focused on are Crisis and Disaster Planning and Claims Manage-

ment; these topics have been updated and expanded.

Practice of Risk Course

The revised version of the CRM Practice of Risk course begins with an overview of the risk management process and risk management concepts. The roles of the risk manager and the risk management team are defined. Technology tools and Risk Management Information Systems available to risk managers are examined and explored. Reputation and brand management, another emerging global risk concern, is considered, and the discussion revolves around recent, major risk failures that have resulted in tarnished reputations. This topic involves different risks and concerns and the likelihood for potential fallout in related business areas.

These programs were developed and are taught by the industry’s most successful sales professionals—the best in the biz! They’ll help you transform your approach and ignite your career. No matter what your niche in the business, there is a sales training program that is just right for you. Past attendees rate these exceptional programs as the most effective training opportunities available anywhere, citing greater self-confidence, increased income, and vastly more satisfying careers.

New topics in this course include the growing issues of International and Multinational Risks and Compliance and Governance.

We offer in-house Dynamics, too! Find more details at scic.com/courses/ dynamic_series.

New Ruble MEGA Online Classroom Seminar CICs, CRMs, and CPRMs now have the option to complete their annual update in an Online Classroom MEGA Seminar! Participants experience the same high quality and standards as the regular classroom MEGAs, including the expert faculty, with the convenience of the web! This new online option retains the hallmark of all MEGA seminars—CHOICE—and allows you to satisfy your update requirement by selecting from a list of eight or more topic choices the four 4-hour sessions that interest you most. CIC Board member, Brad Borneman, CIC, had this to say: “I am excited to try the online MEGA for my CIC update. I like the fact that you are not committed to being out of the office for days on end. The flexibility of picking the four topics that will most benefit me and being able to spread them out—four hours here, four hours there—is ideal.”

Dynamics of Selling Jan. 23–24..............Long Beach, CA Feb. 16–17................. Richmond, VA Apr. 6–7................... Indianapolis, IN May 16–17.....................Milford, MA June 20–21................Las Vegas, NV July 20–21.............. Philadelphia, PA Aug. 8–9..... Burr Ridge (Chicago), IL Sept. 25–26........................... Duluth (Atlanta area), GA Oct. 12–13..............Rancho Cordova (Sacramento), CA Nov. 8–9............................ Dallas, TX Dec. 4–5......................Nashville, TN

Dynamics of Sales Management June 26–27........................ Tampa, FL July 13–14......................Houston, TX Nov. 8–9......................... Phoenix, AZ

Dynamics of Company/ Agency Relationships May 9–10............. Walnut Creek, CA Sept. 14–15...............Plymouth, MA

Resources | Winter 2016

YOU ASK WE DELIVER!

he National Alliance is rolling out its expansion plans for the CIC Program in 2017 and 2018! This is the most wide-reaching change to the CIC Program in its forty-seven-year history. Emerging issues are transforming the educational needs of those on the front-lines of the insurance and risk management communities. The changes to the CIC Program are in response to input from you—our designees and our participants—continuing The National Alliance’s tradition of “You ask—we deliver!” To provide additional learning opportunities, more update options, and more flexibility, Commercial Multiline (CML) and Insurance Company Operations (ICO) are being added to the roster of CIC institutes. To complement these additions, the Commercial Property and Commercial Casualty Institutes have been updated and expanded, as well. And, in keeping with our proud tradition, all of these new and revised offerings are packed with current, practical information that can be applied immediately.

Two New CIC Institutes in Phased Rollout Anticipation and excitement are growing as word spreads about the new CIC curricula. The phased rollout began with two packed, pilot-classroom

8 Resources | Winter 2016

Commercial Multiline Institutes held in Texas and Montana in late 2016. On-site evaluation feedback from participants in the October pilot CML Institute in Richardson, Texas, was enthusiastic. One attendee said, “This is one of the best courses I have ever taken.” Another person working toward the CIC designation related, “I feel like for the first time I understand commercial crime coverages. The instructor was awesome!” A CIC said, “I love the multilines opportunity!” Another added, “A great program—I was engaged and enjoyed each speaker— and thank you for the expanded cyber.” One CIC enthused, “Top-notch speakers all three days; I give CML all tens.” The CIC Commercial Multiline Institute will be implemented nationwide in January, 2017, and our licensee-partners across the U.S. will have the option of offering it at that time. The CIC Commercial Multiline Institute will be accessible in the online-classroom format beginning in 2018. The existing CIC Commercial Casualty and Commercial Property Institutes were both modified to coordinate with the release of the new Commercial Multiline Institute. Some topics were moved into CML, while others were updated and expanded. The Commercial Multiline

Institute focuses on developing issues that are critical to today’s marketplace from both property and casualty perspectives. Participants in this institute will increase their knowledge of coverage opportunities with these topics: • Cyber Exposures and Coverage • Businessowners Policy (BOP) • Commercial Inland Marine Concepts and Coverages • Employment Practices Liability Insurance • Excess Liability/Commercial Umbrella Coverages • Crime Coverages and Endorsements

CIC Insurance Company Operations Institute The CIC Insurance Company Operations Institute will be introduced in test markets in October, 2017, and become available across the country in January, 2018. ICO will be released in online-classroom format in late 2018. ICO will explore in detail all the functions of an insurance company and the roles performed by its employees. ICO topics include pertinent content material such as claims, underwriting, marketing, distribution, policyholder and agent services, product management, technology, reinsurance, and actuarial

CIC Expansion Overview We have expanded/updated the Commercial Casualty and Commercial Property institutes; over the course of 2017–2018, Commercial Multiline and Insurance Company Operations will be added, for a total of seven institutes; participants must pass their choice of five of the seven 20-hour courses listed below to earn the CIC designation.* 1) Personal Lines (Available in online classroom format) 2) Agency Management (Available in online classroom format) 3) Life & Health (Available in online classroom format) 4) Commercial Casualty—Expanded/Updated (Available in online classroom format)

• Business Automobile Coverages and Endorsements..................................... 6 hrs. (expanded from 4 hrs.)

and executive management. Selection strategies that companies use to choose their business functions will be covered, as well.

• Additional Insureds Concepts and Endorsements........................... 2 hrs.

Expert Advisory Committees

• Workers Compensation and Employers Liability............................. 4 hrs.

Two unique, advisory groups assembled to design and develop the Commercial Multiline and the Insurance Company Operations Institutes and to update and expand the Commercial Casualty (CC) and Commercial Property (CP) Institutes.

• Commercial General Liability Concepts and Coverages........................... 8 hrs. (expanded from 6 hrs.)

5) Commercial Property—Expanded/Updated (Available in online classroom format) • Commercial Property Coverage Forms and Endorsements..................................... 8 hrs. (expanded from 6 hrs.) • Commercial Property Causes of Loss Forms and Endorsements.......................... 4 hrs. (expanded from 2 hrs.) • Equipment Breakdown (Previously optional)................... 2 hrs. (now a part of every CP institute) • Time Element Coverages and Endorsements (Business Income)............. 6 hrs. (expanded from 4 hrs.) 6) Commercial Multiline—NEW in 2017 (Will be available in online classroom format) • Businessowners Policy (previously optional; now includes a discussion of Business Liability)............................. 2 hrs. • Commercial Inland Marine Concepts and Coverages............................................ 6 hrs. (expanded from 4 hrs.) • Cyber Exposures and Coverage (Previously optional)................................... 4 hrs. (expanded from 2 hrs.) • Employment Practices Liability (previously optional)....................... 2 hrs. • Excess Liability/Commercial Umbrella Coverages........................... 2 hrs. • Crime Coverages and Endorsements (Previously optional)................................... 4 hrs. (expanded from 2 hrs.) 7) Insurance Company Operations—NEW, coming late 2018 (Will be available in online classroom format) The curriculum is not yet finalized, but may include Executive (Strategic, Distribution, Compliance/Internal Controls, Reinsurance), Claims, Policyholder/Agent Service, Technology, Product Management, Actuarial, Accounting and Finance, Underwriting/Premium Audit. *Remember, to earn the CIC designation, you have the option to take five CIC institutes OR choose four CIC institutes + one CRM or CPRM course.

“I feel like for the first time I understand commercial crime coverages. The instructor was awesome!”

Both Advisory Committees are comprised of National Alliance Board members, faculty, state educational committee members, topic experts, agents, and National Alliance Academic Directors. In addition, the ICO Advisory Committee includes heads of insurance companies. In fact, many industry experts were so excited about the proposed expansion of the CIC Program that they volunteered to be a part of the committees.

How Will It Work? Currently, there are over 31,000 CIC designees across the United States and some 37,233 people working toward the designation. In response to the needs of both designees and participants, The National Alliance’s restructured CIC Program will now consist of a total of seven institutes. Participants will still be required to take only five institutes and pass the exams within five years to earn the designation, but they will now be able to make selections from a menu of seven CIC institutes. As an alternative, participants Continued on page 10. Resources | Winter 2016

Explore Your New Options… continued from page 9. can mix and match, selecting four CIC institutes, plus one CPRM or one CRM course of their choice as their fifth option. While current CIC designees are not required to take the new or revised courses, these new institutes present excellent update options.

Why Restructure CIC? When it first began in 1969, the CIC Program was designed for individuals who worked in small, independent agency settings. Now, individuals not only have agency operational roles, but they also have more responsibility in sales and in the management of both small and large accounts. Many participants have important functions in sizable insurance companies, which adds another layer of complexity and knowledge requirements. Additionally, today’s agency and company professionals often diversify and choose to focus on specific areas—personal lines or commercial, agency management or insurance company operations, life and health, or a combination of these. Industry experts indicate that there is a great need for a solid understanding of the topics included in Commercial Multiline, Commercial Property, and Commercial Casualty, because a large amount of referral business and revenues are now generated in these areas. The CIC Commercial Casualty and Commercial Property Institutes have been expanded and revised to accommodate and respond to these trends and the increasing complexity of excess liability, commercial general liability, and workers compensation coverages. Beverly Messer, Senior Vice President of Academic Development at The National Alliance, commented, “Collectively, we recognize the need for keeping our flagship CIC Program strong and relevant. We firmly believe that expanding CIC to give insurance and risk management professionals more customizable options to earn and update the CIC designation will answer market challenges and move the program forward with the continued standard of excellence our participants expect.”

10 Resources | Winter 2016

Mix and Match for Customizable Learning Designees, their employees and coworkers, and other participants will benefit from a diversified, customizable education and designation path. They will be able to align their course selections with their particular work focus. This versatile curricula allows for more self-

directed choice to fit participants’ exact needs, providing a practical, nimble education that raises the level of competence across the board—it’s good for the employer, good for the agency or company employee, and it’s very good for clients! Remember, to earn the CIC designation, participants take five of the seven insti-

Commercial Focus (with LH and RM)—Agency Personnel • CIC Commercial Casualty • CIC Commercial Property • CIC Commercial Multiline • CRM Principles of Risk Management • CIC Life & Health

Commercial Focus— Company Personnel • CIC Commercial Casualty • CIC Commercial Property • CIC Commercial Multiline • CIC Insurance Company Operations • CRM Principles of Risk Management

Personal Lines Focus (with or without High Net Worth)—Agency or Company Personnel • CIC Personal Lines • CPRM Personal Client Risk Management • CIC Agency Management • CIC Insurance Company Operations • CIC Life & Health

Traditional All Lines—Agency or Company Personnel • CIC Commercial Casualty • CIC Commercial Property • CIC Commercial Multiline • CIC Personal Lines • CIC Life & Health

tutes, or they may choose to take four CIC institutes, plus one CPRM or CRM course. The chart below shows the different combinations of courses from which participants may choose, depending on their area of business focus.

Looking Back—Looking Forward Dr. William T. Hold, CIC, CPCU, CLU, President of The National Alliance,

made these observations, “For the last forty-seven years, we at The National Alliance have had two very simple, but important, goals. The first is to provide excellent programs of practical value to insurance and risk management practitioners who are working for companies or in the agency ranks. Our second goal has been to provide recognition and offer value to designees and participants

Commercial Focus (No LH or RM)— Agency or Company Personnel • CIC Commercial Casualty • CIC Commercial Property • CIC Commercial Multiline • CIC Agency Management • CIC Insurance Company Operations

Commercial Focus— Agency Personnel

High Net Worth Personal Lines Focus—Clients Include: Entrepreneur,

Doctor, Business Owner

• CIC Personal Lines • CPRM Understanding Coverage Differences • CIC Agency Management • CIC Commercial Casualty • CIC Commercial Property

• CIC Commercial Casualty • CIC Commercial Property • CIC Personal Lines • CIC Agency Management • CIC Insurance Company Operations

Relevancy requires that we continually expand and revise the programs we offer to fit the careers that people actually have. Education should track with an

This versatile curricula allows for more self-directed choice to fit participants’ exact needs, providing a practical, nimble education that raises the level of competence across the board…

• CIC Commercial Casualty • CIC Commercial Property • CIC Commercial Multiline • CIC Agency Management • CRM Principles of Risk Management

Traditional All Lines—Agency or Company Personnel

who demonstrate their commitment to continuing professional education. Forwarding this second goal means that we continually review and modify our curriculum and the way the curriculum is presented—whether in a classroom or online.

individual’s career goals and not the other way around. Our academic team of experts tailors the curricula to the needs of the participant, not our needs as the provider. That’s a big difference in educational approach. We recognize that people, our participants and designees, make the difference. The designations are a reflection of those who have achieved them. Our goal is to continue to attract the best people in the insurance and risk management community. To date, we have done an unparalleled job—in cooperation with our participants—in creating a global alliance of professional education with a far-reaching scope. The National Alliance provides over 145,000 participants around the world insurance and risk management programs.” The restructuring of CIC is the result of listening to our designees and participants. Years of planning and development have culminated in these innovative, new institutes—Commercial Multiline and Insurance Company Operations—providing fresh update opportunities and a flexible CE track. n

Resources | Winter 2016

COVERAGE CORNER

BY DENNIS PHILLIPS, CIC

The Three “Rs” and High Net Worth Homeowners HO Policy Coverage for Renovation, Remodeling, and Restoration Projects

n the last edition of Resources, the article, The Three “Rs”—Renovation, Remodel and Restoration, explained how a renovation, remodel, or restoration of a client’s home can potentially reduce the client’s recovery from their insurance company should a property loss occur. We are continuing this discussion, now focusing on how the Three “Rs” impact coverage provided by a homeowners policy designed for high net worth clients.

Loss Settlement in the High Net Worth Space Most insurance companies specializing in the high net worth market include a generous loss settlement provision in their homeowners policy. Should a covered loss occur, the policy agrees to pay the actual replacement cost of the home— “whatever is takes”—without regard to the dwelling limit on

Learn More, Earn More Attend the CPRM Understanding Coverage Differences Course to learn more about the property and liability coverages differences between mainstream policies and those designed to specifically meet the unique needs of affluent and high net worth clients. CPRM (Certified Personal Risk Manager) is the newest designation program of The National Alliance; its purpose is to train the insurance and risk management communities to better serve the high net worth and affluent client. The program contains a unique combination of risk management, technical expertise, and account development.

12 Resources | Winter 2016

the policy. This is a coverage advantage in policies designed for the high net worth client. Of course, in return for this coverage advantage, the home is required to be insured for 100 percent of its replacement value, as determined, and/or agreed to, by the insurance company. Recognizing that a renovation, remodel, or restoration project can be large or small, complex or simple, lengthy or shortlived, extravagant or inexpensive, it has the potential to substantially increase the replacement value of a home. In turn, it increases the amount the insurance company would be obligated to pay. Therefore, because of its generous loss settlement provision, the HO policy includes an additional requirement. The client must notify their insurance agent when there is a renovation, remodel, or restoration project to their home that EITHER increases the replaceThe threshold may be ment value of the home above a specified threshold OR causes either a percentage of the the client to move out of the dwelling limit, such as home for any period of time dur5 or 10 percent, or it may ing the project. If the client fails be a dollar amount, such to notify their agent in either of as $500,000. these situations, a significant penalty or limitation may apply. What is the limitation or penalty? Depending on the policy language, limitations and penalties may include: 1. Changing the loss settlement for the dwelling from “actual cost to repair/replace” to “replacement cost less depreciation;”

A project may be of such a size and scope that the insurance company is unwilling to continue the homeowners policy as it is currently written.

2. Limiting coverage to the Coverage A dwelling limit; and/ or

approval, but that is better than a client getting the nasty surprise of a larger deductible applied to a partially covered loss.

3. Applying a higher deductible.

High Net Worth Homeowners Policy with a Course of Construction Endorsement

This could result in a client unknowingly retaining all or part of a loss. Let’s look at an example. Cody and Ella have their home insured for $2,000,000. They had not notified their agent of the recently completed $250,000 renovation project before they experienced a large fire loss. The renovation increased the replacement value of their home in excess of 10 percent of their dwelling limit, which is the threshold in their policy. The loss settlement provision could state that the damage to their home will now be settled on a depreciated basis instead of replacement cost. The loss could also be limited to the dwelling limit instead of “whatever it takes.” In addition, a higher deductible could apply. These could be expensive limitations or penalties for Cody and Ella. We can all agree that this becomes an unpleasant situation not only for the client, but also for the insurance professional and the insurance company. To avoid this, what can be done? If the agent and/or insurance company is notified, these limitations or penalties could be avoided. In many policies the limitations or penalties do not apply if the insurance company gives its written consent for a situation such as this. So a good rule of thumb is that whenever a renovation, remodel, or restoration is going on, be sure to let the insurance company know. There may be hurdles to jump over to gain

A project may be of such a size and scope that the insurance company is unwilling to continue the homeowners policy as it is currently written. The insurance company may be willing to continue the client’s current homeowners policy if a Course of Construction endorsement is added. Of course, this option is only available when the client tells you about the project before it takes place. Underwriting Considerations There are several factors the insurance company considers before agreeing to continue coverage this way, including: Timeline. The length of a project will have a bearing on the insurance company’s decision. This varies, but generally, a short-term project such as three months or less is acceptable, while a longer project is not. Complexity. A renovation such as a “facelift” involving painting and new carpet/hardwoods or even new kitchen appliances and countertops is usually not a big deal. But a remodel with walls being knocked out or other structural changes may not be acceptable. Cost. This will generally be tied to the complexity. Expensive projects usually aren’t simple, nor are they completed quickly. A project increasing the replacement value by more than 10% of the current dwelling value will probably place your client in the insurer’s “we’re not interested in continuing coverage” category. Continued on page 14.

Resources | Winter 2016

The “Three Rs” and High Net Worth Homeowners…continued from page 13. Occupancy. A renovation, remodel, or restoration that requires the client to move out for a period of time can render the project undesirable to the underwriter. Contractor. On most projects—especially larger ones—the carrier will be more comfortable and willing to provide coverage when an experienced contractor and/or architect are involved. Loss Control. The risk control/mitigation methods applied during the project can also have a bearing on the insurance company’s willingness to provide coverage. Methods taken to reduce the frequency and/or the severity of a loss can help to make these situations more attractive to the insurance company. For example: • Using insured and bonded contractors (provides possibility of subrogation) • Motion-activated exterior lighting • Fencing and locked gates • On-site security (for larger projects) • Fire extinguishers in plain sight throughout the home • Use of metal cans and cabinets for storing oily rags and flammable materials • Securing building access as early as possible • Active fire and burglar alarms as soon as practical • Securing valuables when the home is occupied during construction Let’s go back to Cody and Ella. Instead of a renovation, let’s say they plan to completely remodel their kitchen and master suite. Walls will be moved to increase the size of both rooms, with the entire project lasting three months. After you provide information to your underwriter about the size and scope of their project, the insurance company agrees to continue coverage as long as a Course of Construction endorsement is added to their homeowners policy.

Course of Construction Endorsement The Course of Construction endorsement applies for the duration of the project and can affect both the coverage and the premium. Typical changes made by the endorsement include: • Removal of all credits currently applied • Application of a surcharge to the total premium • Revision to the loss settlement provision by excluding coverage to the dwelling in excess of the dwelling limit (such as Extended Replacement Cost Coverage) • Increased deductible Periodic inspections by the insurance company may be required throughout the project. Upon completion, the insurance company typically obtains a new appraisal for the home to determine the revised replacement value of the home, which would now include the value of the remodel. Once the new replacement value is determined, the dwelling limit is increased accordingly.

14 Resources | Winter 2016

When The Underwriter Says “No” There will be times when the insurance company is unwilling to continue coverage on a homeowners policy. There may be concern with the changing value of the dwelling over the course of the project. Coverage needs to be written for the correct limit, but selecting this limit can be like

The risk control/mitigation methods applied during the project can also have a bearing on the insurance company’s willingness to provide coverage. Methods taken to reduce the frequency and/or the severity of a loss can help… hitting a moving target due to delays or cost overruns that frequently occur. In addition, hazards are introduced by a construction project; workers fall off ladders; children wander onto the premises and get hurt; oily rags spontaneously combust and flammable finishes ignite; burglars steal stuff! For all these reasons, a Builders’ Risk Policy may be the only option.

Conclusion We want our clients to understand the importance of notifying us in advance about their upcoming renovation, remodel, or restoration. Early notification gives us time to learn about the size and scope of the project, enabling us to address the factors considered by underwriters when they determine whether or not to provide coverage. n

About the Author: Dennis Phillips, CIC Dennis is an Assistant VP with Wells Fargo Insurance in Atlanta, GA, where he manages the accounts of about 100 high net worth personal lines clients. He began his insurance career in 1982 and for the past 30 years has focused exclusively on insuring affluent and high net worth families. Dennis is also a faculty member for CIC Personal Lines Institutes and the CPRM Understanding Coverage Differences Course.

Dear Bettie, We have some new employees in our company who are unfamiliar with the industry. Does The National Alliance have any programs designed to help newbies get oriented? —Linda Corbin, CIC Dear Linda, The National Alliance’s Introductory Series is designed for individuals who are starting out in the risk management and insurance industry. These introductory courses provide novices with the beginning fundamentals on the following subjects: • Property & Casualty Insurance

• Employee Benefits

— Commercial Lines Coverages

— Overview of Benefits

— Personal Lines Coverages

— Retirement Plans

Do you have a question to “Ask Bettie?” Bettie Duff, Senior Vice President of Customer Care, has been with us more than 35 years and is the person to contact for information on just about anything related to operations and procedures. Email your questions to: bduff@scic.com.

— Health Care There are a total of ten courses in the series, and they follow the development guidelines and basic structure of all The National Alliance’s online courses, including structured learning objectives, interactive exercises and self-quizzes, customized course print-outs, course narration, and access to National Faculty and course mentors. Linda, because I feel so strongly about the benefits of these courses, I encourage you to enroll your new employees right away, so they can get off to a good start with a solid foundation of understanding and increased confidence. These courses also lay the groundwork for future success. For example, we have found that participants who go through the Introductory Series before taking the Certified Insurance Service Representative (CISR) online courses have up to a 14% higher pass ratio than participants who have not taken the Introductory Series courses. And, in recognition of their efforts, when a participant completes four Introductory Series courses, they earn a framable certificate, which is valued by employers and the insurance community at large, and provides a real sense of accomplishment. —Bettie

Resources | Winter 2016

EXPERT PERSPECTIVE

Caring and Competency An Interview with Jules O. Gaudreau, Jr., CIC, ChFC NAIFA President, 2015–2016

ules Gaudreau is a lifelong learner and student of the insurance business. He is currently President of The Gaudreau Group, a multiline insurance and financial services agency founded in 1921 and headquartered in Wilbraham, Massachusetts. He has served on a number of industry boards and advisory committees, including the Massachusetts Association of Insurance Agents (MAIA)—an association partner of The National Alliance. He recently concluded his term as President of the National Association of Insurance and Financial Advisors (NAIFA). We were able to talk with Jules about his career, his role as President of NAIFA, and how education has made an impact on his life and business. 16 Resources | Winter 2016

The National Alliance (TNA): How did you get into the insurance business? Jules Gaudreau (JG): I graduated college in 1983 and was determined to go to law school, but I needed a little bit of time off before I embarked on that journey. So I interviewed with several companies, and at the time, the major-league sales organization was IBM. They had the best sales training and were the pros in business consultation. I was offered a position in London with IBM and was scheduled to start in September. While I was waiting for that position with IBM to begin, I spent some of the summer months getting introduced to insurance. Come September, I was doing “well enough” selling life insurance, so I decided to stay with it and not take the IBM job in London. After a couple of years selling life insurance, I decided to join my father, Jules, and his twin brother, Julian, who were second-generation agency owners. Their agency was primarily personal lines. After working there for two years, I came in one day to pay an auto insurance premium, and I overheard them talking about selling the agency. I mentioned that I might like to buy the business. And amazingly enough—I ended up buying the business! The business started out

with me, my father, and my uncle, but ever since, we have been adding an employee a year. Today, we are an organization of 35 people and offer a full suite of commercial, personal, and employee benefits risk management and insurance solutions. TNA: When you purchased the agency, what was going on in the industry? JG: At the point when I got into the industry everyone was predicting that the insurance agency ranks would reduce to about 6,000–7,000 insurance agencies within a few years! The situation in 1990 appeared to be that, eventually, few or no independent agencies would exist. Obviously, the predictions of our demise were greatly exaggerated, and I suspect that the same thing is happening now. I think our challenges today are a little different and slightly greater. Back in the nineties, the pundits saw what was happening with direct writers, and it was considered a foregone conclusion that they would put

“…many agencies are improving their competencies by attending programs like CISR, CIC, and CRM. This educational push is making them better at what they do. If you don’t offer anything but price, then the lowest price is always going to win.” independent agents out of business. What everyone overlooked is the desire of consumers to deal with people whenever they can. I believe, if all things are equal— price and coverage-wise—that consumers would prefer to buy from a human being, rather than over the Internet. As long as agents are able to provide a competitively priced product, I do believe there will always be a place for the independent agency. There have been a lot of mergers and acquisitions in recent years, and many of these agencies that have made changes have adopted new technologies, as well. In addition, many agencies are improving their competencies by attending programs like CISR, CIC, and CRM. This educational push is making them better at what they do. If you don’t offer anything but price, then the lowest price is always going to win. We have consistently looked at Continued on page 18.

Resources | Winter 2016

Care and Competency things as multidimensional. Price is only one dimension. Coverage or contractual language, convenience, and service expectations are other dimensions that have important roles in creating value; it can’t just be chasing price. This approach, or thought process, has always worked for us. This is something that I have believed in for 25 years. I have watched a lot of other agencies sell their businesses, because they don’t see any other way out. I think it is hard to invest in yourself, your business, and your colleagues. It takes courage—because

…continued from page 17. investment plan that stops working when you do. Life and disability insurance are the fundamental basis of all financial plans. NAIFA was founded in 1890, in Boston, Massachusetts. Today, there are over 40,000 members from all ranks of organizations. In serving as the President of NAIFA, I was proud to support and enhance the organization. The mission of the organization is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.

TNA: What does education mean in your life? JG: In this business, we must all commit to lifetime learning! Consumers and clients want to know, first and foremost, that you care. Once they know you care, then they are very interested in knowing if you have the competency to do a good job on their behalf. It is vital that you have the two critical components of that relationship: caring and competency. I have always felt that designations are important because they en-

“In this business, we must all commit to lifetime learning! Consumers and clients want to know, first and foremost, that you care. Once they know you care, then they are very interested in knowing if you have the competency to do a good job on their behalf.” everyone wants to tell you about the demise of the independent agency. The agencies that have made changes, embraced technology, and focused on providing a value to their clients are thriving! TNA: What is NAIFA and how did you get involved with them? JG: I have always been involved with Big I of Massachusetts. In fact, my family had been members for two generations before me. I joined NAIFA to become better at building my life insurance and financial services practice—which includes disability, long-term care, annuities, and retirement-planning techniques. The National Association of Insurance and Financial Advisors (NAIFA) is the largest association of people who are in the financial services business. It is primarily composed of insurance-based financial advisors. At NAIFA, we believe that a financial plan without insurance is nothing more than a savings or

18 Resources | Winter 2016

During my tenure, one of the biggest NAIFA initiatives was to work diligently with the Department of Labor to address concerns we had with the DOL’s draft Fiduciary Rule (naifa.org/advocacy/federalissues-positions). Because of NAIFA’s work, this rule was modified from its original version after the initial review process. However, compliance is still very problematic for agencies and individual advisors. This rule essentially makes anyone working with retirement financial products a fiduciary. This, in turn, requires a new level of fiduciary liability, errors and omissions liability, and a compliance burden that will be very hard for smaller agencies and advisors to satisfy. In addition, it will restrict the affordability of individualized advice and guidance to only those clients with larger account sizes. NAIFA and other parties have filed lawsuits against the DOL to try and stop the implementation of the Fiduciary Rule.

hance your professional persona. I became a CIC and ChFC, and recently, I completed my fourth CRM course, because I really believe that being a risk management consultant is going to be very important in the future. Beyond providing insurance brokerage and placement services, this is where we can really set ourselves apart. I have always advocated for increased professionalism and competency in our organization. We are very proud to have a number of CISRs, CICs, CRMs— and we even have some taking the new CPRM program in our agency. In fact, my son, Jules Gaudreau III, has recently joined our agency. He has just completed all his licensing exams and will begin his journey of becoming a lifetime learner by beginning the CIC program in the next twelve months. Every day you wake up is a school day! That is the way I have always approached this business! For the first 20 to 25 years of my career, I read an hour every morning on

some aspect of insurance. It was Resources magazine, Million Dollar Roundtable magazine, the NAIFA magazine, Advisor Today, or books on insurance. This was every day— seven days a week—even on vacation, until I really became an expert on various aspects of insurance. TNA: Where do you think the agency market is headed over the next five to ten years? JG: I think, for our market, it is going to move more into the consultative arena. Consumers, who will buy the lowest limits and basic statutory coverages, will probably buy insurance on the Internet. If independent agencies cannot find a way to do this more cheaply, then we will not get that business. On the other hand, there will be more consumers, people in families and businesses, who will want and value a consultative, risk management approach. We must continue to harness technology, because people want a quick and easy way to make modifications or to get answers to their questions. There will be more applications of service centers by carriers, which I think is a valuable offering, if done correctly. Agencies need to get out of the mindset that making mortgagee changes, switching vehicles, or executing other small policy changes is not what people pay us to do and that too much time is spent on these activities. Clients pay us for our insurance knowledge—to help

them discover their real exposures and find the best way to resolve those issues. It is only a matter of time until consumers will be able to go to a bidding site, upload their insurance information, and get a “bid” on their insurance. This will all be algorithm- and technology-driven, with no human interaction. So there might be a day when agents “spec” insurance for a fee, and then the consumer will go to a website and get pricing and placement for themselves. I predict that a third of the market, in the next three to five years—particularly in personal lines and small commercial—will go online to a site like eBay and ask for a bid on their insurance! Technology is just one of the challenges that independent agencies will have to deal with in the near term. There are other more significant issues, as well, so we must be willing to grow and to continue to learn. Also, we must be involved in our industry’s future and use our grassroots advocacy strength to push for legislation that will best serve consumers. There is a retirement crisis brewing in our country, leaving large parts of the population financially unprepared. We, as caring, competent professionals, need to find a way to provide educated advice and support for those who are trying to ensure the financial security of their families for the future. n

About the Interviewer: William J. Hold, M.B.A., CRM, CISR William Hold is the Senior VP of Marketing and Sales at The National Alliance. He works with carrier representatives and agency associates in creating education and training paths. William and his team work to ensure that insurance and risk management professionals have the knowledge and skills necessary to meet their clients’ needs. William also serves on the board of trustees for Gamma Iota Sigma—the international business fraternity for students of insurance, risk management, and actuarial science—as well as the advisory board of the University of Oklahoma’s Insurance and Risk Management Program.

President/Publisher William T. Hold, PhD, CIC, CPCU, CLU Editor-in-Chief/Senior Art Director Becky Keeling bkeeling@scic.com Department Editors Mary I. Husk, CIC, CRM, CPCU mhusk@scic.com Beverly A. Messer, CIC, CRM, CISR bmesser@scic.com D. Darelle White III, CIC, CPCU dwhite@scic.com Elsa C. Sanchez, CIC, CRM esanchez@scic.com JoAnn M. Clarke, CIC, CRM, CISR, CSRM, ARM, ARe, AAI, CPIW jclarke@scic.com Editor Donna Loughran Contributing Designer Chuck Lickert Resources is published by The National Alliance for Insurance Education & Research, P.O. Box 27027, Austin, TX 78755-2027, 800-633-2165, Fax: 512-349-6194, Internet: www.TheNationalAlliance.com, email: alliance@scic.com. At present, Resources is available to dues-paid Certified Insurance Counselors (CICs), Certified Insurance Service Representatives (CISRs), Certified Risk Managers (CRMs), Certified School Risk Managers (CSRMs), Certified Personal Risk Managers (CPRMs), and affiliates of The National Alliance Research Academy. Entire contents Copyright © 2016, The National Alliance for Insurance Education & Research. All rights reserved. Material in this publication may not be reproduced in any form without permission. Authorization to photocopy items for internal or personal use, or the internal or personal use of specific clients, is granted by The National Alliance, provided that the following words are included on any copy: “Reproduced from Resources with permission of The National Alliance for Insurance Education & Research.”

Resources is designed to provide accurate and timely information in regard to the subject matter covered. It is published with the understanding that the publisher is not engaged in providing legal, accounting, or other professional services. If legal advice or other expertise is required, the services of a competent professional should be sought. The publisher has taken all reasonable steps to verify the accuracy and completeness of information contained in Resources. The publisher may not, however, be held responsible for any inaccuracies or omission of information in any article appearing in Resources. The National Alliance Standards of Conduct: scic.com/about/Standards_of_Conduct

Resources | Winter 2016

Train Your Team with Our National Alliance Programs offer prestigious designations and career development for all insurance and risk management professionals. As a National Alliance designee, you already understand the value and pride of obtaining a professional insurance or risk management designation. Reaching far beyond mere CE requirements, your commitment to life-long continuing education is a symbol of your dedication to your customers, your employer, and yourself. What will be your next move? Dozens of National Alliance education opportunities await you and your team. Pursue an additional designation to broaden your repertoire; let us help train your producers and bring your newto-the-industry employees up to speed; reduce your E&O risks by training your team; fine-tune your sales culture for profitable results; stock your reference library with top-notch reference materials and publications; and increase customer (and employee) retention with valuable customer service skills. Our programs are known—first and foremost—for their “put-itto-use today” practicality, as well as their affordability and accessibility. Some provide the best networking value when presented in a classroom setting, while many others maximize convenience with a choice of classroom or online formats; and the majority of our programs can be customized for in-house group training. All are taught by practicing industry professionals, using regularly-updated curricula. The National Alliance now offers five highly respected and internationally recognized professional designations: • Certified Insurance Counselor (CIC) • Certified Risk Manager (CRM) • NEW Certified Personal Risk Manager (CPRM) • Certified Insurance Service Representative (CISR) • Certified School Risk Manager (CSRM)

20 Resources | Winter 2016

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Certified Risk Manager

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(CIC) Designation Program 20-Hour Classroom or Online Topics (choose any five institutes)

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• Personal Lines • Commercial Casualty • Commercial Property • Agency Management • Life & Health • NEW in 2017: Commercial Multiline

• Principles of Risk Mgt. • Control of Risk • Analysis of Risk • Financing of Risk • Practice of Risk Mgt.

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(UACIC) Designation Program (2 parts of CIC)

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• Personal Client Risk Mgt. • Understanding Coverage Differences • Evaluating and Protecting the Lifestyle • Practical Application of Personal Risk Mgt. • Winning the Business

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Publications, websites, and career assistance: • The National Alliance Research Academy (publishes books based on industry research) • Knowledge Alliance (irmka.scic.com) • Careers For Life (CareersForLife.com) Visit TheNationalAlliance.com for complete schedules, details about our programs, and to register for your next update. And remember to recommend National Alliance programs to your team members, friends, and colleagues!

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TheNationalAlliance.com Call toll-free: 800-633-2165 • Email: alliance@scic.com

Our Licensed-Partner Organizations Certified Insurance Service Representative (CISR) Designation Program Classroom or Online Topics (choose five of nine courses) • Commercial Casualty I— CGL, Additional Insureds • Commercial Casualty II— BAP, WC, Excess Liability • Insuring Commercial Property • Insuring Personal Auto Exposures • Insuring Personal Residential Property • Personal Lines Miscellaneous • Life & Health Essentials • Elements of Risk Mgt. • Agency Operations

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Pass all nine CISR courses

Certified School Risk Manager (CSRM) Designation Program 8-Hour Classroom or Online Topics • Fundamentals of Risk Mgt. • Measuring School Risks • Handling School Risks • Funding School Risks • Administering School Risks

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• Dynamics of Selling • Dynamics of Sales Mgt. • Dynamics of Company/Agency Relationships

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In many states, The National Alliance partners with professional state organizations to present certain CE programs in that state. We appreciate these licensee organizations and their spirit of cooperation as we work together to bring the number one insurance and risk management continuing education programs to their areas. Alabama IIA, Inc. IIAB of Arizona, Inc. IIA of Arkansas PIIA of Colorado, Inc. PIA of Connecticut, Inc. Florida AIA PIA of Georgia, Inc. IIA of Illinois IIA of Indiana, Inc. PIA of Indiana, Inc. Kansas AIA IIA of Kentucky, Inc. PIA of Kentucky, Inc. PIA of Louisiana, Inc. Massachusetts AIA Michigan AIA Minnesota IIAB Missouri AIA Montana Insurance Education Foundation IIA of Nebraska PIA of Nebraska & Iowa PIA of New Jersey, Inc. PIA of New York State, Inc. IIA of North Carolina Ohio Insurance Agents Association IIA of Oklahoma PIA Western Alliance Insurance Agents & Brokers of PA, MD, & DE PIA of Puerto Rico and the Caribbean IIAB of South Carolina Insurors of Tennessee TASBO Utah AIIA PIA of Virginia & DC PIA of Wisconsin, Inc. Wisconsin Association of School Business Officials Washington Association of School Business Officials Association of Wyoming Insurance Agents

Resources | Winter 2016

BY THE NUMBERS

BY JON PERSKY, CPA, CIC, PHR, and JENNY FOSTER, CIC

Hiring the Right Person the First Time HR Survey Results

he National Alliance Research Academy has just completed a new publication called Hiring, Managing, and Compensating Insurance Agency Personnel, authored by Jon Persky, CPA, CIC, PHR, and Jenny Foster, CIC. To supplement the material in this book, The Academy surveyed independent insurance agency owners. A total of 744 agency owners, office managers, and other agency associates with human resources responsibilities participated in the online survey. This is the first of two articles which present some of the survey findings; this article presents results related to the hiring process and the next article (in the 2017 Spring issue of Resources) will provide results relating to performance evaluations and the termination process.

Finding Candidates In the old days, employers seeking job candidates would write a “want ad” and place it in the local newspaper. They

Learn More, Earn More Take the CIC Agency Management Institute to understand the process of managing personnel, including following legal guidelines, establishing appropriate job descriptions, setting interviewing practices, giving performance appraisals and evaluations, and overseeing termination procedures. A must-have for every company and agency is Jon Persky’s and Jenny Foster’s NEW book, Hiring, Managing, and Compensating Insurance Agency Personnel, published by The National Alliance Research Academy (details on page 25)—to be released in 2017 (shop scic.com/store/publications.html).

22 Resources | Winter 2016

would “post and pray” that someone would respond. If the ideal candidate missed reading the newspaper that day or was from out of town, the lost opportunity costs were enormous. Thanks to the Internet, posting an advertisement in a newspaper has become obsolete. Less than 30% of respondents to our survey use newspaper advertising. While print ads and job boards are not dead (yet), there are now many more ways to reach and engage potential candidates. The Internet, as well as social media, are just some of the tools you should consider to drive candidates to apply for a position. How do you find job candidates?

All

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+

Networking

62% 55% 61% 65% 61% 73%

Internet advertising

42% 25% 36% 39% 53% 59%

Employment agency

34% 19% 25% 35% 38% 51%

Social media

31% 17% 30% 28% 39% 45%

Newspaper advertising

28% 29% 30% 32% 28% 20%

Competitors’ websites

4% 2% 1% 4% 6% 8%

Other

22% 23% 22% 14% 26% 24%

Slightly more than one-third of survey respondents offer recruitment bonuses to their staff. Do you offer your staff a recruitment bonus?

All

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+

Yes

35% 15% 17% 24% 52% 70%

65% 85% 83% 76% 48% 30%

In most states, an employer can conduct a background check before extending an offer of employment; however, some state laws do not allow these checks until there has been a conditional offer of employment. Of employers who offer recruitment bonuses, most wait until the new employee has been in the position for a certain length of time before paying a bonus to the referring employee. When does the recruitment bonus get paid?

All

On or before new employee’s first day of work

Within the first 3 months of employment

35% 38% 27% 52% 26% 37%

Within the first 4–6 months of employment

39% 43% 41% 26% 40% 41%

In month 7, or later

20% 14% 18% 23% 28% 15%

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+ 5% 14%

If none of these reasons compel you to action, consider a standardized response to be a common professional courtesy. You never know when you may run into a candidate in the future. This candidate could also be a potential future client. What if the person you ignored is later hired by one of your carriers, and you have to deal with them on a regular basis?

Checking Out the Candidate

Less than one-third of agencies have a jobs or an employment section on their agency website. Does your agency website have a jobs or employment section where candidates may apply?

unflattering terms to others. Worse yet, a candidate who is not selected to move forward still has the right to allege a wrongful hiring practices lawsuit against you if they feel you have passed them over based on any factor other than their qualifications (such as being in a protected class).

Agency Size: Number of Employees All 1–5 6–10 11–20 21–50 51+

Yes

30% 10% 11% 15% 36% 84%

70% 90% 89% 85% 64% 16%

Once the agency starts receiving resumés or employment applications, the employer must determine whom to interview. Approximately one-third of agencies always reply to candidates they have no interest in interviewing, while another third never responds to candidates in whom they have no interest. Do you respond to job applicants whom you have no interest All in interviewing?

Employers often use the term “background check” to describe a process that can include a variety of screening tools, including criminal history record checks, credit reports, motor vehicle reports, reference checks, and drug testing. In most states, an employer can conduct a background check before extending an offer of employment; however, some state laws do not allow these checks until there has been a conditional offer of employment. Employers should check with their employment practices attorney or state labor department for restrictions or adopt the most conservative practice of only running background checks following a conditional offer. Approximately one-third of agencies don’t run background checks, whereas over 40% hire a third-party to run the check. How do you conduct background checks All on job applicants?

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+

We hire a third-party to run the background check.

41% 29% 33% 35% 49% 60%

Agency Size: Number of Employees

We do the background check ourselves.

26% 34% 25% 24% 24% 23%

1–5 6–10 11–20 21–50 51+

None—we do not obtain background checks.

33% 37% 41% 41% 27% 17%

Always

33% 37% 28% 31% 32% 40%

Sometimes

35% 29% 35% 36% 41% 35%

Never

32% 34% 37% 33% 27% 25%

Continued on page 24.

Employers often wonder why they should bother with “thanks, but no thanks” responses. Failure to respond may discourage candidates from applying to future job postings. The spurned candidate may also talk about your agency in

Resources | Winter 2016

Hiring the Right Person…continued from page 23. For agencies that conduct background checks, this next chart shows items that are typically verified prior to employment. All survey respondents

Which items do you verify prior to employment?

Always Sometimes Never

Professional licensing

75%

18%

Prior employment verification

70%

26%

Professional references

69%

27%

Criminal background check

53%

16%

31%

Social media

38%

40%

21%

Education

37%

38%

25%

Motor vehicle report

27%

29%

43%

Credit report

22%

55%

Various surveys show that approximately 14 million people, approximately 10% of the U.S. workforce, abuse alcohol and/ or drugs. From an employer standpoint, drug and alcohol abusers: • Take more time off, • Are less productive, • Pose an increased risk for workplace accidents, and • May increase workers’ compensation costs and health insurance premiums.

Even if the applicant accepts your verbal offer, the acceptance of the position should be considered tentative until you receive a signed offer letter back from the new employee, as well as a signed non-piracy, non-solicitation agreement, if applicable. The Americans with Disabilities Act (ADA) imposes some requirements on employers regarding employee use of drugs and alcohol. Under the law, employers cannot ask applicants about substance abuse treatment or counseling received for prior illegal alcohol/drug use, but employers may ask about current illegal use of drugs. The majority of states have laws related to drug testing, so consult with your employment law attorney. Approximately eight out of ten agencies never drug test job candidates.

24 Resources | Winter 2016

Do you require drug/ alcohol testing of job All applicants?

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+

Always

14%

Sometimes

7% 6% 8% 5% 7% 8%

Never

79% 86% 88% 87% 75% 59%

18% 33%

Agencies that perform drug screenings generally base their testing on the job description and/or whether or not the job requires driving. How do you determine which job applicants to test for All drugs/alcohol?

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+

Job requires driving

45% 25% 33% 40% 38% 50%

Job position

43% 63% 66% 40% 38% 40%

Other

18% 13% 22% 20% 25% 10%

Testing the Candidate To help improve the odds of hiring the right candidate, consider pre-employment testing. Pre-employment tests typically fall into four categories: 1. Insurance knowledge tests 2. Skills tests 3. Behavioral tests 4. Cognitive tests With the exception of sales skills, approximately half of the survey respondents indicated that they always run personality, behavior, computer literacy, cognitive, or insurance knowledge tests on candidates. For what attributes do you test job candidates?

All survey respondents Always

Sometimes

Never

Personality

60%

23%

17%

Behavior

50%

25%

Computer literacy

48%

30%

21%

Problem-solving skills

48%

30%

23%

Insurance knowledge

46%

33%

20%

Let’s say you’ve interviewed the candidates, checked their backgrounds, and selected the one who you think is the best fit. Now it’s time to make a job offer. Begin with a verbal job offer and state that you will follow-up with a written letter or email that will include more detail. Even if the applicant accepts your verbal offer, the acceptance of the position should be considered tentative until you receive a signed offer letter back from the new employee, as well as a signed non-piracy, non-solicitation agreement, if applicable.

Nearly six out of ten respondents indicated they always provide a written offer of employment letter to new employees. When hiring, do you provide an Offer of Employment letter? All

Agency Size: Number of Employees 1–5 6–10 11–20 21–50 51+

Always

58% 45% 46% 51% 70% 84%

Sometimes

15% 19% 15% 16% 16% 11%

Never

27% 36% 40% 33% 13% 5%

Hiring, Managing, and Compensating Insurance Agency Personnel is a 350+page human resources primer that covers and includes: • best practices for hiring, managing, and terminating employees • HR law summaries that directly impact agencies • a sample employee handbook • sample job descriptions • guides for compensation of producers and staff n

About the Authors: Jon Persky, CPA, CIC, PHR, and Jenny Foster, CIC

Get the book that guides you through the challenges of hiring the right people, effectively managing their performance, and compensating them strategically. Hiring, Managing, and Compensating Insurance Agency Personnel—published by The National Alliance Research Academy and coauthored by Jon Persky, CPA, CIC, PHR, and Jenny Foster, CIC— does all that, and more. Compiling survey results from over 700 industry participants, this 350+ page HR guide delivers valuable insider information on: • How to determine the type of employees you need and how to find them • Tips on how to interview candidates • Checking out a candidate’s background • How and what to test candidates for

Jon is the President of Optimum Performance Solutions, LLC (optperform.com), an insurance agency consulting firm providing valuation, merger and acquisition, agency perpetuation, strategic planning, and marketing and retention services to insurance agencies nationwide. Jon is the author of Starting, Buying, Selling and Perpetuating Insurance Agencies as well as Hiring, Managing, and Compensating Insurance Agency Personnel, both of which are published by The National Alliance. He is also a National Faculty member and CIC Mentor for The National Alliance. Jon can be contacted at 813-835-7337 or jon@optperform.com.

• Guidelines on how to terminate employees

With over 20 years in human resources and 14 years as a licensed broker in both property and casualty and life and health insurance, Jenny Foster served as the Senior Employee Benefits Advisor and Human Resources Manager for Seattle-based agency, EHL Insurance (now Brown & Brown of Seattle), for nine years. She has served on the board of her local SHRM (Society for Human Resources Management) chapter and most recently served as an Associate Faculty member for The National Alliance, for whom she presented nationally. Jenny can be contacted at 360-621-1981 or jennyfoster.consulting@gmail.com.

• Performance evaluations

• Federal employment laws • How to handle HOT topics, including marijuana use, gender identity, and social media issues • What motivates employees • How to compensate and incentivize employees In addition, you’ll receive many customizable sample forms and lists, including: • Employment applications • Offer of Employment letter • New employee checklist • Non-piracy agreements • Termination checklist • Job descriptions • Employee handbook …and many more!

Resources | Winter 2016

Dear Millennials, Let me start by saying, “You rock.” You’re well educated, technology savvy, team-oriented, and environmentally focused. You’re ready to take on the world with your boundless enthusiasm, energy, and creativity. Many of you are hardworking, helpful, and respectful of your fellow human beings. You’re in the prime of your youth, between the ages of 12 and 34, with big ambitions and limitless self-confidence. As we say in the South, you’re “all that and a bag of chips.”

About the Author: Julia Kramer, SPHR, SHRM-SCP Julia has over 26 years of executive-level leadership, organizational development, and human resources experience, with specific expertise in leading and managing organizational and behavioral change. Currently, she is Executive VP and Chief Organizational Performance Officer/Director, BXSI ThinkHR/AdvantageHR Consulting with BancorpSouth Insurance Services, Inc.

26 Resources | Winter 2016

And while I hate to be a downer, there’s a flip side to this shiny bright coin. Baby Boomers across the land, those between the ages of 56 and 73, talk about you all A LOT. And while they may agree that collectively you have many positive attributes, they typically have a less favorable impression of you at work. Words and phrases like entitled, self-centered, and unrealistic frequently come up in conversation. Exhausting, spoiled, and disrespectful say some. Internet-dependent and lack of work ethic round out their list of most challenging Millennial attributes. You might now be thinking, in Millennialspeak, “WTF?”—which loosely translated into Boomer-ese is “what gives?” You might even decide this letter is not worth reading. But before you unplug, let’s talk about how Boomers exasperate and challenge you, too. You may have—once or twice—thought a Boomer out of touch,

tech-clueless, and old-fashioned. Maybe you’re awed by their lack of app-intelligence, social media skills, and greenconsciousness. You may have jokingly or secretly called a more senior co-worker “ancient” or “elderly” or, and this one makes my Boomer hair curl, a “geezer.” Stay with me here; we do have our differences, but all is not lost. Most Boomers and most Millennials genuinely want to figure out how to happily work together, as do most Traditionalists and Gen Xers. In my travels, when I talk to groups of insurance and other business professionals about generational differences in the workplace, there’s lots of interest in this topic. In fact, How to Survive a MultiGenerational Workplace is my most frequently requested presentation. Nearly everybody in every generation pays attention. Why? Because we’re all trying to figure out what makes the other three generations tick. We’re like a typical family—sharing the same experiences, but viewing them from radically different perspectives. Let’s start with the generation that is chronologically closest to you, but miles apart in terms of work preferences: Generation X. Gen Xers, those between the ages of 35 and 55, are sometimes less engaged in the milieu due to their collective independent nature. Xers were the first generation to experience dualincome families and high levels of divorce. They were frequently “latch-key kids,” required at a young age to return home to an empty house. As a result, they’re self-sufficient, resilient, and adaptive and don’t really understand what the generational fuss is all about—until paired with a Millennial. Then all sorts of heck breaks loose. Autonomous and aloof Xers and face-time-focused Millennials mix about as well as a whole milk latte and lactoseintolerance. Better to let the Xer focus on work and pair the teamwork-preferring Millennial with the maternal/paternal Traditionalist. The Traditionalist generation—those between the ages of 74 and 91—are preparing for imminent retirement. As the founding fathers and mothers of many of our agencies, they want to know they’re

leaving the company in good hands. They want everyone to get the work done and get along, because they consider everyone who works with and for them family. They think Boomers may be too hard on the youngsters. Older Boomers are right behind Traditionalists in terms of retirement, but younger Boomers still have a decade or two to go on the job, and they want that time to be constructive and rewarding. They know you and your older Gen X “siblings” are the future (whether they like it or not), and so they spend considerable resources on understanding how to attract you to their places of work, how to keep you engaged and productive, and how to balance your ambitions with the current economic reality of doing more with less.

Dinnertime at my house, with my two Millennial sons, then five and seven, went something like this: “Mom, what’s for dinner?” “Let’s see, my darlings, I have steak and fish sticks. Which would you prefer?” “Can we have chicken?” “Well, sure, I’ll run to the store and get some. Do you want rice or potatoes?” “I want rice! I want potatoes!” “Then I can make both. Not a problem, my sweets!” We won’t even talk about vegetables and dessert. I think you catch my drift. So you see, dear Millennials—you are my children, our children, our nieces, and our nephews. We were your teachers, your coaches, and your scout leaders. We have no reason to question why you are openly opinionated, overly confident, and overtly entitled. We shouldn’t be

proximity to the boss didn’t mean open access to the boss—we went through the secretary, knocked on the door, and requested admittance. We respected and nurtured hierarchies at work, because climbing to the top of the pyramid was our American dream, all the while inverting the pyramid at home. Millennials, we’re not asking you to change who you are, because the more we understand you, the more we enjoy working with you. We’re just asking you to understand us, too. We ask you to take a look at this road you’re on and realize that it’s a two-way street. We’re here to help you get started; we want you to join us on this journey, and we want you to enjoy moving forward together. Let’s keep talking (or emailing or texting).

“…we’re all trying to figure out what makes the other three generations tick. We’re like a typical family—sharing the same experiences, but viewing them from radically different perspectives.” Millennials, let’s talk a minute more about Boomers, because they’re helping you the most in terms of employment and career success, and at the same time, are complaining about you the loudest. Let’s talk about why they sometimes think you are a problem to be solved. Boomers grew up during a time of great cultural change and great opportunity. They didn’t suffer through the Great Depression, but their Traditionalist parents did, and it had a huge effect on how Boomers were raised. Many Boomers grew up in households in which saving—not spending—was the first commandment. Some were haunted by childhood memories of parental job loss, economic failure, and income disruption. As a result, we Boomers vowed never to be unemployed, never to have to count pennies, and never to “deprive” our children. We became the most competitive generation in the workforce, focused on success, upwardly mobile, and making sure our children were enjoying a life filled with attention, opportunities, and power in our child-centric homes.

annoyed by your expectation that those in authority should include you in discussions and decisions, should value your opinion, and that time, attention, praise, feedback, and rewards should be plentiful and expedient. And yet… And yet, we do question, and we do get annoyed, because—wait for it—our work personality was the exact opposite of our home personality! While we took a backseat to our children’s needs at home, we were in the driver’s seat—or looking for a way to unseat the current driver—at work. Our measure of success included long work days, nights and weekends, all without positive feedback that we’ve taught you to value and expect. We were rarely praised at work and that was just fine; our recognition came in the form of a “hierarchy of things.” As we moved up the ladder, we moved from open workspace to shared office. A private, windowless office was followed by a corner office with a window. Furniture morphed from laminate to wood and from pleather to leather. Proximity to the boss was indicative of our status. But

Let’s keep learning about how leveraging the diversity of generations in the workplace makes us all better, smarter, and more successful. The following quote by scientist Sebastian Thrun sums up what every generation knows—that one day there will be another generation moving into and changing your space—a generation that takes your advances and discoveries and inventions for granted. Thrun said, “I’m really looking forward to a time when generations after us look back and say how ridiculous it was that humans were driving cars.” One more parting thought: you might want to start learning about Generation Z, also called the Homeland Generation. Right behind you at age 11 or younger, they’ll grow up fast and will enter the workforce in less than a decade. They’ll be yours to nurture and develop. We know you’ll do a great job. Sincerely,

—A Baby Boomer Resources | Winter 2016

All Risks

American Agents Alliance

Assurex Global

Bancorp South Insurance Services, Inc.

Disabled Veterans Insurance Careers

HR&R Intergovernmental Pool Administration, Safety & Loss Control

HUB International

Hylant

MarketScout, Inc.

McGriff, Seibles & Williams

PATRA Corporation

Velocify

Westwood Trust

Zurich North America

AAA, Inc.

Calhoun, Thomson & Matza, LLP

Keystone Insurers Group, Inc.

Marble Box

United Valley Insurance Services

USI

IIAB of Delaware

Florida Association of Insurance Agents

INDEPENDENT INSURANCE

AGENTS OF INDIANA

PIA of Georgia

IIA of Illinois

IIA of Indiana

MN Independent Insurance Agents & Brokers Association

IIAB of Maryland

Massachusetts Association of Insurance Agents

Michigan Association of Insurance Agents

MIIAB

Missouri Association of Insurance Agents

PIAA of Ohio

IIA of Oklahoma

IIAB of Pennsylvania

IIAB of South Carolina

Insurors of Tennessee

28 Resources | Winter 2016

lease join us as we take this opportunity to thank our Research Associates. We invite you and your organization to join this prestigious list!

BB&T Insurance Services

Bowen, Miclette & Britt

Brown & Brown, Inc.

CRC Insurance Services, Inc.

Inspirus, LLC

ISU Insurance Agency Network

Insurance Technologies Corporation

Jerry Montgomery Memorial Research Fund

Popular Insurance, Inc.

Selective Insurance Group, Inc.

State Auto Insurance Companies

Synergy Comp Insurance Company

Alabama IIA

IIAB of Arizona

PIA of Indiana

PIA of Nebraska and Iowa

Kansas Association of Insurance Agents

PIA of New Jersey

PIIAC

IIA of Kentucky

PIA of New York State

PIA of Connecticut

The National Alliance salutes our Research Associates for all of the ways they make us better—from generous annual contributions to their considerable expertise and leadership.

PIA of Kentucky

IIA of North Carolina ADD YOUR ORGANIZATION’S NAME TO THIS PROUD GROUP

PIA of Virginia & D.C.

PIA of Washington/ Oregon

PIA of Wisconsin

As a Research Associate, your participation will help direct and fund the projects and publications of The National Alliance Research Academy. You’ll contribute to our efforts to recruit into the industry new, more qualified, careeroriented students through the University Associate CIC (UACIC) and University Associate CRM (UACRM) programs at institutions of higher learning. You will also be invited to participate in cutting-edge research projects, conducted by The National Alliance Research Academy, documenting the latest industry trends and innovations. Collectively, we help to “raise the bar” for everyone in our industry.

Contact William Hold at wjhold@scic.com

New members in this extraordinary group are always welcome. To learn more about the benefits of becoming an Academy Research Associate (which includes a 10% discount on all Academy publications), please contact William J. Hold, CRM, CISR, at wjhold@ scic.com or call 800-633-2165, ext. 3325.

Resources | Winter 2016

Meet the National Finalists and Winner of the

This year’s essay topic was: “Many in our industry came

Ms. Kelly Danielle McGowan, CISR Elite, into insurance by chance, but Executive Commercial Lines CSR with NBT– have built a career by choice. Mang Insurance Agency in Norwich, New York, is the 2016 national winner of the Outstanding How did you come into the CSR of the Year Award—the most prestigious industry, and what are four honor available to insurance customer service reasons you stayed and built representatives. We also proudly recognize the a career?” four national finalists: Robyn Henslin, CIC, CISR, of Cobb Stecker Dunphy & Zimmerman, Inc., in Middleton, WI; Elizabeth Manley, CIC, CISR, CPIA, CWCC, PRIS, of Assured Partner NL, in Lexington, KY; Kelsey Purvis, CISR, of Ross & Yerger Insurance, Inc., in Jackson, MS; and Linda Wright, CIC, CRIS, of Rooney Insurance Agency, Inc., in Tulsa, OK. Eloquently evidenced in these five professionals’ essays, their perseverance, commitment, and creativity has placed them in the spotlight of the industry’s recognition. In addition to the selection of Kelly McGowan as the national winner, the four national finalists were chosen from a particularly competitive field of applicants. The National Alliance receives hundreds of candidate nominations from across the United States and the Virgin Islands to be placed in consideration for the Outstanding CSR of the Year. Entrants share their unique perspectives and relate their own special insights into the world of front-line customer service. Five finalists are chosen from the field of participants who compete in a state-level essay contest. The national winner is chosen from those five finalists by a blue-ribbon panel of judges.

Both the National winner, Kelly McGowan, CISR Elite, and the Texas winner, Tiffanie Parker, CIC, CISR, API, were recognized at the recent conferment ceremony in Houston, TX.

Ms. McGowan received a cash award of $2,000 as the national winner. She also received a distinctive gold and diamond lapel pin and will have her name inscribed on a sculpture on permanent display at The National Alliance headquarters in Austin, Texas. A scholarship will be awarded to her employer, NBT–Mang Insurance Agency for participation in any National Alliance program, and Kelly will serve on the panel of judges for the 2017 award. For nominating the national winner, Angela Mattice, also of NBT– Mang Insurance Agency, received $1,000. In addition, a $500 cash award and a gold and garnet lapel pin was awarded to each of the four national finalists. Excerpts from Kelly’s winning essay, as well as those of the four finalists, appear on the following pages. The 2017 essay topic will soon be announced, and nominations are now being accepted. For details, go to:

TheNationalAlliance.com/csr_award

30 Resources | Winter 2016

National Winner Kelly D. McGowan, CISR Elite NBT–Mang Insurance Agency Norwich, NY

any in the industry came into insurance by chance but have built a career by choice. For some, their roots were placed by friends or relatives in the business. For many others—like me—the roots weren’t in place until well after the job offer was on the table. As college drew to a close, I still didn’t know what I wanted to do and ended up being hired as an insurance CSR. I took the job so I could pay my bills—and here I am, 15 years later. I could speak for hours on money or flexibility, but the reasons I have turned insurance into a career are simple: challenge, people, opportunity, and necessity. Loving a good challenge is the first reason I have made insurance a career. If someone ever doubted me, I’d find a way to not only prove them wrong, but also to exceed any expectations they had. In our line of work, we deal with an extremely diverse range of personalities and situations, and no two days are the same. We encounter irate clients—the figurative fires that need water as we’re walking out the door, and the logistical nightmares that can leave us close to tears. I will do all of this and more with a smile on my face, knowing full well that this inevitably leads to satisfaction in a job well done at the end of the day. The challenges will never cease, but as my experience grows, neither will my ability to rise to the occasion of every challenge that is put in my path. People are my second reason, because they account for some of the most challenging situations we encounter every day. However, with the right mind-set they can quickly become the most rewarding. Knowing my clients and selling them the appropriate products, based on their needs, is a very powerful tool. Knowing which one of their kids just graduated college and having a conversation about that, with

a focus on their life, rather than on their insurance coverage, is powerful beyond measure. We are in the people business. We have to know our people, and we have to commit to them on every level. Their trust and respect for me, as their CSR, is built not only on my knowledge, but also on my compassion for them as a person. The third reason for my career choice is opportunity. Learning about our clients and their needs presents us with more than just a chance to hold a dialogue. Insurance is filled with op-

the functions of our job descriptions. Becoming a necessity is something that we should all strive for. Only then will you know you’re exactly where you’re meant to be. In closing. I want to mention the word “choice.” I’ve come into insurance by chance, and turned it into a career by choice. The challenges, people, opportunities, and feeling of necessity are the reasons I have transitioned my choice from job to career. But within each of those reasons, lie choices as well. We can choose to rise to the

“Insurance is filled with opportunities to better oneself—to grow exponentially.” portunities to better oneself—to grow exponentially. We have the ability to learn anything we wish, as long as we can embrace the potential each opportunity holds. The first opportunity I had was to become a licensed insurance agent. In taking this step, I inadvertently stoked the fire I have deep inside for learning, and I can keep that fire going every day through numerous opportunities. Knowing which opportunities to look at and which to put back on the shelf for another day is half the battle, but the fulfillment that accompanies an opportunity discovered and conquered is a feeling unparalleled.

challenge, or shun it. I rise to it. We can choose to embrace people or stay at arm’s length. I embrace it. We can choose to search for opportunity or remain stagnant. I search for it. And we can choose to become the necessity or treat our job as the necessity. I am the necessity. n Read the National Finalists’ essays, starting on page 32.

Necessity is the final reason I have made insurance a career. Necessity is not about money, fancy clothes, or expensive cars. It’s not even about putting food on the table. I can get those things working anywhere. Instead, it’s about turning yourself into a necessity. It’s a good feeling to know that you are needed, that your skill set is valued, and your above-andbeyond approach is irreplaceable. We come to work every day to do our jobs, to perform

Resources | Winter 2016

Essays of the 2016 Outstanding CSR of the Year National Finalists.

National Finalist Robyn Henslin, CIC, CISR Cobb Stecker Dunphy & Zimmerman, Inc. Middleton, WI

am fairly certain that most of my peers, with many years (even decades) of experience in the insurance industry, did not start out with the aspiration to build a career in it! I’m one of the many who “chanced” upon insurance, and I couldn’t be happier that I “chose” it as a career. Many moons ago (don’t like to think of how many), I started my journey into adulthood and employment in retail, and then ventured into banking. I advanced rather quickly from a clerical, loan processing position to a branch manager of a savings and loan. Banking is where I “chanced” upon insurance.

I continued working for the savings and loan, learning more about insurance and honing my customer service skills, until after my first son was born. From there, I switched to part-time and transitioned from banking into a position working part-time at the insurance agency that had been the partner of the savings and loan. Once there, I accepted a full-time role as commercial lines support for clients with operations that included long-haul trucking, all the way to environmental engineering, and everything in between. I enjoyed the unique challenges and continued learning opportunities that these different clients presented. My work with this agency continued for several years through the birth of son number two, in both a part- and full-time capacity. Eventually, I took a full-time position with the same agency, which had grown through merg-

“To ensure I could meet the ever-changing and complex needs of my clients, I continued seeking more knowledge and expertise by obtaining my CIC designation—a very proud moment!” As the savings and loan Branch Manager, I had the chance to round-out my client relationships by offering annuities and renters insurance. I needed to get licensed as an insurance agent with the state to do so. In those days, there was no pre-licensing course, which left me the challenge of learning the material on my own. My boss at the time, simply handed me a book on life and health insurance, a second book on property and casualty insurance, and a third on insurance law. I was instructed to “read them, memorize them, and pass the test.” Fortunately for me, I passed each of the four sections and obtained my insurance licenses. Step one was completed towards my eventual career!

32 Resources | Winter 2016

ers and acquisitions, as a Commercial Lines Customer Service Representative. After 15 total years with my first agency, expanding my insurance knowledge, improving my skills, and earning my CISR designation, I made the “choice” to have a career in insurance. I took on a new challenge at a new agency, and accepted a position as a Commercial Account Manager. As such, I became the primary, day-to-day contact for clients ranging from a $5M revenue roofing company to a $200M revenue ice cream manufacturer (that facility tour was awesome!). To ensure I could meet the ever-changing and complex needs of my clients, I continued seeking more knowledge and expertise by obtain-

ing my CIC designation—a very proud moment! Ten years later, on to the next (and best, by far) chapter in my personal and professional life: I accepted a position with my current agency, Cobb Strecker Dunphy & Zimmerman. They supported my decision to relocate to Silt, CO, on the beautiful Western Slope of Colorado! I now get to enjoy the geography I love, while working remotely for and with the most complex clients and knowledgeable staff of my career. I may have fallen into insurance by “chance” all those years ago, but made it my career “choice—and have successfully been doing so for 25+ years— for the following reasons: 1. Challenges & Opportunities I am continually challenged to learn more and refine and expand my skill set. I am able to utilize what I have learned to make insurance and the operations thereof “user friendly,” inside and outside the agency. During my tenure, I have had many opportunities in the various agencies, to go beyond my “business card title” and be part of training/transition teams for both internal changes (computer management, systems, front-end scanning, etc.) and external client presentations (new access tools, prospecting meetings, etc.). The chance to utilize my strengths is rewarding. 2. Relationships The relationships I have formed and the support that I have received over the years, from my coworkers, agency owners, and clients, is a key reason that insurance became, and continues to be, my career choice. Being a part of those trusted relationships makes me a better person and makes me strive to do better. There is give and take, ups and downs, and good and bad with all of these interactions. However, with a positive attitude and a sense of humor (on both sides), they are mutually beneficial. Without the relationships and support, what I do would be just a job. 3. Education & Learning The ever-present availability of education and betterment opportunities. Tak-

ing advantage of continuing education, working for and obtaining designations, working with agents to design insurance programs for clients, assisting my agency and coworkers to improve procedures, etc., are all examples of opportunities I have utilized to expand my knowledge and deepen my connections. Every interaction within the scope of my day is a learning opportunity, if I am open to it—and I am!

4. Personal Benefits My insurance career has provided me with the means to support myself and family! Security and benefits, which are not afforded to everyone, and for which I am grateful, have allowed me to plan and save for the future. At this point in my career—which is now has less time ahead than behind—the opportunities that have been afforded to me have allowed me to position myself to be able

to work from the place in which I plan to retire, while continuing to be a vital, valued, and respected member of my team.

National Finalist

vital part of its success. Our industry offers something for everyone, that is respective agency personnel—from receptionists, service staff, producers, and management with adjusters, to consultants, risk managers, marketing

there—from one of your peers, a mentor, or a teacher—when you need it. Further, the opportunity to obtain prestigious and well-respected insurance designations that demonstrate knowledge and proficiency in certain areas of our

Elizabeth Manley, CIC, CISR, CPIA, CWCC, PRIS Assured Partner NL Lexington, KY

nce upon a time, there was a young girl whose life was full of hopes and dreams of success and great things to come, but never in a million years did she dream of it being related to the insurance industry. She graduated high school in three years as valedictorian of her class, then further received a diploma in Accounting after completing a two-year program at a technical school. Growing up in a rural area, job opportunities were few, but luckily, she landed a job in a small, local agency that specialized in personal lines insurance. She became their bookkeeper initially, but was most intrigued about what the agency was selling and what they were doing every day to help people. Consequently, she had to become part of it! She had to have it! She obtained her property and casualty license, quickly excelled in sales and service, and developed an unbelievable passion for taking care of customers. The world of insurance had opened up and was at her fingertips… Yes—that girl was me, and 32 years later, here I am, still passionate and in love with my clients! The reasons I’ve stayed and made this my career are endless, but I will elaborate on four of the main ones that come to mind…

Professional Development/ Advancement: I realized early on that every position, whether it be within the agency or insurance company, is an intricate,

Without the “chance” meeting all those years ago, or any one of these four reasons above, I would not have “chosen” insurance as my ever-changing, challenging, and very satisfying career. n

“The multitude of courses and materials available—both online and in the classroom— offered by The National Alliance, are unsurpassed… They have helped me tremendously to develop over the years and to stay abreast of the most up-to-date coverages and forms.” representatives and underwriters from the carrier aspect. The sky is the limit! There is room and freedom for advancement, salary adjustments based on performance and expertise, with the opportunity for growth to branch out into something new, if desired…I absolutely love that!

Continuing Education: I love that I can learn something new every day while I am at my desk. The multitude of courses and materials available—both online and in the classroom—offered by The National Alliance, are unsurpassed. I have taken full advantage of those. They have helped me tremendously to develop over the years and to stay abreast of the most up-to-date coverages and forms. I’ve always loved the fact that help is out

industry is inspiring. I feel such a sense of pride and accomplishment for the ones I’ve earned! My current employer of 17 years encourages and supports my continuing education, so that has certainly helped solidify my career choice.

Stability/Versatility: While we live in an ever-changing environment, insurance is one thing that has remained a necessity and in demand since it first came into existence. I take comfort that there is stability in my profession. With that said, client needs are ever-present, and our industry has a solution to fulfill those needs. We are challenged daily to protect and restore assets and property for individuals and their livelihoods. The beauty is that there are so many facets of Continued on page 34.

Resources | Winter 2016

Continuation of national finalist Elizabeth Manley’s essay. coverage available, we can shape, mold, create, and manuscript policies and endorsements that will enable us to deliver exactly what our clients want. That versatility equals satisfaction. I have built my career and thrived, based on this concept.

Client Relationships: Lastly, but most importantly, the reason I have stayed in the insurance swimming pool for so long is the ultimate satisfaction I get out of helping others every day. I treasure the friendships and client relationships from every

National Finalist Kelsey Purvis, CISR Ross & Yerger Insurance, Inc. Jackson, MS

hoice—not circumstance—determines success. While most in our industry came into insurance by chance, I decisively chose to join and build a career in the challenging and rewarding industry of insurance. When I attended risk management conferences as a college student, I saw the professionals in this

walk of life I’ve built over the years. I don’t see numbers—I see people. I can laugh with them, or cry with them, and they know my concern is genuine. I am their problem solver. The trust and confidence they have in me and their dependency on my expertise, so they can rest easy, is why I am here. At the end of the day, I want to make a difference and thoroughly enjoy the personal touch that, all too often, is forgotten in a complacent society. In conclusion, I must say that the insurance industry has been good to me. It has blessed me with a lifetime of se-

In my opinion, there is one thing that separates this industry from other industries—people—in that insurance is a people-driven industry. In what other industry will a client be willing to pay more for a product when they can find it on the Internet or elsewhere for less? Because we give added value, and we have the opportunity to provide more than just a product. Clients are purchasing the team behind the policy. Whether it is the instructors, mentors, coworkers, or clients, some of the best people in the business world are in insurance. Those who are truly committed to their career place a significant value in their work.

“I chose to pursue and build a career in an industry that challenges me to apply efforts to a rewarding role.“ industry at work and immediately respected their knowledge and work ethic. As I witnessed these professionals working as a team to apply outstanding analytical and communication skills to a forward thinking industry, I realized I wanted to be a part of this sector. It is no coincidence that the reasons I chose to join the insurance industry are the same reasons that led me to further build my career in this industry.

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We all know THAT guy who raises his/ her hand when an instructor asks the ever-so-repeated question, “Who wakes up in the morning and is eager to go to work?” While this question is often asked to start a discussion about financial stability being the sole reason for going to work each morning, I can’t help but think to myself, “I do.” Why is this? Because, I consider my work as meaningful work. As a customer service representative in this industry, I

curity, stability, and wonderful experiences in various positions. I am where I am meant to be. My coworkers are like family. We are an incredible team who accomplishes great things. So, from a girl who started out 32 years ago full of hopes and dreams, I still have the passion and can’t wait to get to my desk tomorrow, to answer my phone with a smile, and say “How can I help you today?” That, my friends and colleagues is what I call a “career,” and what I define as true success. n

am fully aware that one is responsible for so much more than a polite voice that attends to daily needs and provides accurate results in a timely manner. I firmly believe it is a duty and privilege to make a positive impact on the customers we serve. In the insurance business, the impact is calculated and the result is high-retention rates. Although many view those in the millennial generation as higher risks in the workplace, the insurance industry seems to perceive them as an opportunity. There will always be a need for insurance, since the evolution of the economy is inevitable, and there is no cap for personal growth. Further, ongoing education and training are encouraged and needed. When an industry not only welcomes, but encourages, forward-thinking individuals, personal goals and opportunities are endless. “Go into the world and do well. But more importantly go into the world and do good.” (Minor Myers, Jr.) Insurance has not only provided the opportunity for financial success—it uses that strength to “do good.” I love that this industry promotes community involvement and charitable contributions, industry-wide. Through various organizations in which I am encouraged to participate, I have had the opportunity to volunteer and be a part of doing good things that impact the lives of others. Finally, I chose to pursue and build a career in an industry that challenges

Continuation of national finalist Kelsey Purvis’s essay. me to apply efforts to a rewarding role. I enjoy contributing to an industry that has the people, meaningful work, personal growth, and philanthropic goals, as does this one. Qualities like these

National Finalist Linda Wright, CIC, CRIS Rooney Insurance Agency, Inc. Tulsa, OK

t’s true—there’s no need to sugarcoat it. Most people enter the insurance field by chance. Our childhood aspirations didn’t include jobs in the insurance profession. We wanted to be doctors, nurses, firefighters, policemen, teachers, or astronauts. Despite this, once in the insurance world, many of us ended up staying and building insurance careers by choice. My first job in insurance was as a receptionist for a small independent agency in Tulsa, Oklahoma. I had been laid off from my job working for a real estate development company and needed a steady income and medical insurance for my family. Before I knew it, I was being trained to help out in the personal lines department. When an opening came up as an assistant in commercial lines, I was offered the position. Shortly thereafter, the agency had an opening for a commercial lines CSR. When offered the promotion, I initially protested saying that I didn’t have enough knowledge to do the job. They assured me everything would be fine and encouraged me to take it. I reluctantly agreed and spent the entire holiday weekend teaching myself to manually rate coverages. As they say, the rest is history. There are several reasons why I chose to stay in the insurance profession. First, this business is never dull. Over the past few decades I’ve seen a lot of changes in the insurance field. I’ve experienced both hard and soft markets. I’ve witnessed the rise and fall of the oil industry, which took insureds and commission dollars along for the ride. I remember when our little agency acquired its first fax machine. Initially, the

are the reason this sector continues to evolve and grow. Because of the influence this industry has on me, personally, I have developed into one of those hard-working risk management profes-

sionals that I once admired. “Giving yourself to others is the most important thing,” according to Michael Milken. “When you give, you get something in return.” n

“No matter how much you think you know about insurance or how many years you’ve worked in this business, there is always more to learn…” owner of the agency wanted nothing to do with “that newfangled machine!” I can still recall using a computer mouse for the first time and utilizing the old DOS operating system, now affectionately referred to as “the dark side.” There is always something different: changes in laws, and even new perils to cover. For example, twenty years ago, nobody thought about cyber liability, and our insureds scoffed at the offer of earthquake coverage for their properties in Oklahoma. Now these coverages are extremely important to our clients. Secondly—and I know it sounds cliché—I really enjoy helping my clients. Whether it’s a customer who just bought a new vehicle and needs an auto insurance card, an insured who needs help understanding a premium audit, or a contractor who can’t get onto their jobsite until they get a certificate of insurance, it is rewarding to be able to help them. When one of my insureds suffers a loss, such as a fire or an auto accident, it’s great to be able to reassure them and assist them with their claim. Even though it’s my job, they are always so appreciative when I can take care of whatever they need at that moment. The third reason I stay in this profession is my love of learning. No matter how much you think you know about insurance or how many years you’ve worked in this business, there is always more to learn and another designa-

tion to earn. My first designation was Certified Insurance Counselor (CIC) in 2001. Several years later I earned the Construction Risk Insurance Specialist (CRIS) designation. I’m now working to earn both the Certified Risk Manager (CRM) and Chartered Property Casualty Underwriter (CPCU) designations, concurrently. Last, but not least, I love this business because of the relationships I’ve built with my insureds. They are more than just clients—they’re my friends. For instance, I loved recently hearing that one of my clients had a new grandchild, and enjoyed being able to attend the ground-breaking of another insured who has worked for years to build a new state-of-the-art childcare facility for underprivileged children. Those personal connections are one of the many things that make my job worthwhile. While I fell into this career accidentally, I stayed because there is never a dull moment. My thirst for knowledge is well-suited to the insurance profession, given that continuing education is not only encouraged, but required. I enjoy being able to help my clients and value the strong personal relationships I’ve built with them over the years. At the end of the day, what career could be better than that? n

See the back cover of this issue of Resources for details about the NEXT Outstanding CSR of the Year Award.

Resources | Winter 2016

Destination: Denver Ruble MEGA Seminar March 13–16, 2017 • Westminster, Colorado

Combine Industry Insights with Breathtaking Views!

etwork with colleagues and leading experts in the insurance and risk management community while taking in the mountainous beauty of Colorado! Reconnect with peers, get in touch with what’s going on around the country—while participating in America’s most advanced insurance CE. Whether you attend all of your classes in two days so you can sightsee and relax, choose to space your classes out during the week, or take extra courses above and beyond your required 16 hours—the price is the same. Make this year’s educational update a journey to remember!

Just a Few Classroom Highlights • Property & Casualty Insurance Topics – Additional Insureds – Commercial Property – Commercial General Liability – Cyber – Employment Practices Liability • Risk Management Topics • Life & Health Topics • Ethics • Colorado Homeowners

…and much, much, more!

Why Choose a MEGA Seminar? • Fulfill your annual update while you renew your friendships. • Meet new colleagues who share your career focus. • Enjoy sessions that are the most current, relevant, and practical in the industry.

Colorado’s Magical Allure With the best ski slopes and the most amazing views in the Rockies just a couple of hours away, out-of-towners may want to schedule some time for fun outdoors. And if the mountains don’t appeal, consider a trip to historic downtown Denver to enjoy world-class sports, performing arts venues, the Denver Art Museum, or even a tour of the U.S. Mint. Star Wars™ lovers—take note! During the week of the Denver MEGA Seminar, The Denver Art Museum will be exhibiting Star Wars™ and the Power of Costume, with a display of more than 70 hand-crafted costumes from the first seven Star Wars™ films. Visit denverartmuseum.org.

Your Hotel You’ll enjoy a first-class hotel with all the extras so you can combine comfort with learning. Perched among the Rocky Mountains, the Westin Westminster is conveniently close to many metro Denver attractions. The Westin Westminster 10600 Westminster Blvd. Westminster, CO 80020 303-410-5000 Single/double accommodations: $149; cutoff date is February 17, 2017. Hotel parking is complimentary for all attendees; internet access is included in the guest room rate. James K. Ruble Seminars are exclusively for dues-paid CICs and CRMs. View the full MEGA Seminar agenda at:

• ROI! The fee for four days of sessions is $430, and that now includes your state CE registration fee. Beyond your required 16 hours, you may attend as many additional sessions as you wish and never pay an extra cent.

Online Ruble MEGA Seminars In addition to our three celebrated classroom Ruble MEGA Seminars (Denver in March, Orlando in June, and Dallas in October), two Ruble MEGA Seminars will be conducted ONLINE in 2017. Satisfy your update requirement by selecting the four 4-hour sessions that interest you most, from a list of eight (or more) topic choices. The date ranges for these two seminars are Mar. 20–Apr. 6 and Aug. 28–Sept. 24. Specific agendas and faculty are still being determined and will be posted to our website.

36 Resources | Winter 2016

TheNationalAlliance.com

JoAnn Dickinson, CPA, CIC, LUTCF 1955–2016 It is with deep sadness that we inform you that JoAnn Dickinson, CIC, LUTCF, CPA, of San Antonio, Texas, suddenly passed away Sunday, October 9, 2016. She began her 27-year teaching career with The National Alliance on June 1, 1989. As a member of the National Faculty, JoAnn lectured for both CIC institutes and CISR courses, as well as James K. Ruble Seminars, on a variety of topics, in addition to being a mentor for both the CIC and CISR Programs. JoAnn began her insurance career with Aetna Life & Casualty in 1975, where she was a Brokerage Supervisor in the Life Division. In 1980, she went to work with Financial Advisory Services of Texas, and in July of 1990, she formed Dickinson Planning Services—an independent accounting, insurance, and financial planning firm—and added tax and estate planning to her realm of expertise. JoAnn earned the CIC and LUTCF designations in 1987. In May 1990, she earned her BBA degree in Accounting from the University of Texas at San Antonio, and in 1991 she was licensed as a CPA by The Texas State Board of Public Accountancy. JoAnn also served as a moderator for the Life Underwriter Training Council’s Multi-Line Skills Course. She lectured for numerous state insurance organizations in the area of tax, insurance, estate, and financial planning topics. She served on the Board of Directors of the San Antonio Association of Life Underwriters, as treasurer of the San Antonio Fire and Police Pensioners Association, and as a member of the San Antonio Chapter of the Texas Society of Certified Public Accountants. She was recognized in her community for her contributions to several charitable organizations, and she volunteered her time at a local senior center. We’ll remember JoAnn’s enthusiasm and bright smile, her love of teaching, and her strong support of The National Alliance and its programs. We extend our sincerest condolences to her family.

The National Alliance’s Certified Personal Risk Manager (CPRM) designation program will take you sailing into new territory. Learn the ropes of serving the high net worth and affluent client with a unique combination of risk management, technical expertise, and account development. CPRM courses present intriguing new update options for CICs and CRMs and a fresh perspective on risk management. • Personal Client Risk Management • Understanding Coverage Differences • Evaluating and Protecting the Lifestyle • Practical Application of Personal Risk Management • Winning the Business: The Art of Presentation

Listen to outstanding faculty members discuss topics related to their areas of expertise in archived recordings of The National Alliance’s FREE WEBINAR SERIES at irmka@scic.com. • The Risks of Hyperconnectivity—The Internet of Things • Uncertainty:Underwriting Unmanned Aerial Vehicles • Cyber Crime—What You Need to Know • Additional Insured Endorsements in the CGL Policy • Construction Defects and the ISO CGL …and many more. Resources | Winter 2016

A Collection of Success Stories and Press Clippings from Around the World

IntheSpotlight Gathering of Industry Leaders Photo: Eileen Blumenthal

Dr. William T. Hold, CIC, CPCU, CLU, President and Co-founder of The National Alliance for Insurance Education & Research, and Kathleen Zortman, President of Property & Casualty for QBE North America, attended the 10th annual Entrepreneurial Insurance Symposium held September 7–8, in Dallas, TX. The National Alliance partners with MarketScout to present the symposium designed to showcase speeches, panels, debates, and presentations from industry experts and entrepreneurs.

Big “I” Welcomes CICs to Leadership Team The Big “I” recently elected three CICs to its leadership ranks during its Fall Leadership Conference in Chicago. Vaughn Graham, CIC, CPCU, AFSB, President of Rich & Cartmill, Inc., headquartered in Tulsa, OK, was named Chairman-elect; John Costello, CIC, VP and Construction Practice Leader at First Niagara Risk Managment, Inc., in Rochester, NY, was named At-large Executive Committee member; and 2015–2016 Big “I” Chairman Randy Lanoix, CIC, President of Lanoix Insurance Agency in Lutcher and Brusly, LA, will serve as Immediate Past-chair.

38 Resources | Winter 2016

Graham

Costello

Lanoix

Spalding’s Lifetime Achievement The PIA of Michigan conveyed a Lifetime Achievement Award to Robert M. Spalding, CIC, CPIA, LIC, former owner of the Spalding Insurance Agency, Inc., of Perry and East Lansing, MI, in recognition for his years of service to the association and insurance industry. Robert—a strong believer in education—was a member of the first group in Michigan to obtain the CIC designation (1979). He has been active in the PIA of MI since 1977, and served as President of PIA National from 1995–1996. While five generations of Spaldings work or have worked at the Spalding Insurance Agency, Robert and his son, Jon, have the distinction of being the only father-son duo to have served as Presidents of PIA National.

A Pinnacle of Pride One of our speakers for the CPRM Program, Doug Johnson, CAIP, of J. Smith Lanier & Company, in Loganville, GA, was presented with the Pinnacle Award at the Aviation Insurance Doug Johnson (left) receiving the Association’s (AIA) Pinnacle Award from AIA President annual conference in David Sales. Miami, FL. “The AIA Pinnacle Award is the most prestigious award given by the AIA. Recipients have demonstrated that their career achievements exemplify the standards and goals of the Association and have gone above and beyond the call of duty,” said AIA President David Sales.

PIA National Installs Kuhnke Dennis D. Kuhnke, CIC, CPIA, of Robert Ryan & Associates, Inc., in Milwaukee, WI, was installed as PIA National’s new Secretary/Assistant Treasurer during the group’s September Board of Directors meeting in Omaha, NE.

TheNationalAlliance.com

Passion Recognized Kristen Day Peed, CIC, CRM, AAI, RPLU, Director of Corporate Risk Management with CBIZ, Inc., in Cleveland, OH, was recently named to Business Insurance’s list of 2016 Women to Watch. Kristen served as the President of her local RIMS chapter from 2014–2015, and still serves on their Board of Directors. She visits colleges and moderates a panel that speaks to students about choosing insurance and risk management as a career. She mentors students, as well, and serves on the Advisory Council for University of Akron’s newly formed Risk Management and Insurance certification. In her own words: “I don’t wait on the sidelines for someone to ask me to join a project—I readily raise my hand and volunteer for new assignments in which I feel I can offer value or learn from the experience.”

Designees Deck the Halls PIANY presented Robert J. Ryan Jr., CIC, President of Ryan & Ryan Insurance Brokers, Inc., of Kingston, NY, its HVRAP Distinguished Service award at their annual Hudson Valley Regional Awareness Program in October. At the same event, Steven D. Lyon, CIC, CRM, CPCU, ARM, AAI, CRIS, AIS, of Lyon Consulting Services, LLC, in Pompton Plains, NJ, hosted presentations of “What’s New in Personal and Commercial Lines” and “25 Potential E&O Issues. Steven is a CIC National Faculty member and Education Consultant for The National Alliance. PIANY recently elected as its new President John Parsons II, CIC, CPIA, AAI, Executive VP of Parsons & Associates, Inc., in Syracuse, NY. PIANY Director Justin Fries, CIC, CPCU, CPIA, and immediate past President Eugene Sandy, CIC, have both been selected by the New York State Insurance Fund to be a part of its Producer Advisory Council. Fries is Principal of Garber Atlas Fries & Associates, Inc., in Oceanside, NY, and Sandy is the Director of Marketing for the Millennium Alliance Group, LLC, in Syosset, NY.

Wood Champions Insurance Education at Every Turn Dr. David Wood, CRM, CPCU, was named by Insurors of Tennessee the new Martin Chair of Insurance at Middle Tennessee State University. Dr. Wood is a member of the CRM National Faculty, an Educational Consultant, a CRM Mentor, a past Academy Board member, and a UACIC professor. Dr. Wood is also a former Joseph F. Freeman Professor of Risk Management & Insurance at Appalachian State University.

Risk All Stars Risk & Insurance® has named two National Alliance designees to its list of 2016 Risk All Stars: Carlos David Dezayas, CISR, Senior Manager—Corporate Risk Management at The Kraft Heinz Company, and James Colorado Robertson, CRM, Assistant Director—Risk Management at Louisiana State University.

Ryan Parsons

Lyon

Parsons

Fries

Dezayas

“Risk All Stars stand out from their peers by overcoming challenges Robertson through exceptional problem solving, creativity, perseverance, and passion” stated Anne Freedman, Managing Editor of Risk & Insurance.

New Horizons Leigh Anne Strickland, CIC, CLCS, and Ashley Alexander, CISR, have both joined the ranks of Anderson Benson Insurance & Risk Management in Nashville, TN—Leigh Anne, as a partner in business management and sales and Ashley as an account manager specializing in commercial Alexander Strickland lines.

Have you been “IntheSpotlight”?

Sandy

To submit an item for editorial consideration, send article with photo to: The National Alliance/Resources, P.O. Box 27027, Austin, TX 78755-2027, or email bkeeling@scic.com.

Resources | Winter 2016

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