Resources Magazine Winter 2017 by resourcesmagazine

NICHE KNOWLEDGE

A PAP policy update KRE coverage basics Healthcare reform implications

INSIDER INSIGHTS

Industry leaders share their perspectives

Dynamics Master Sales Class New Producers:

Do you want to go from a close ratio of two sales out of 10 proposals to a lucrative six or seven out of 10? The new Dynamics Master Sales Class is an amazing event developed and taught by life-changing mentors. Why wait years to figure out on your own the skills we can teach in five days? The acclaimed Dynamics of Selling process has revolutionized the sales careers of a generation of insurance producers—dramatically increasing closing ratios and personal income. While many generic sales programs are available, Dynamics remains the only “insurance specific” sales process developed and taught by active sales leaders in our industry. With a limited class size, The Dynamics Master Sales Class is a career-changing, 5-day program designed to immerse participants in a proven process through practice opportunities and individualized coaching not available in a 2-day format. Included

in the Master Class training is a marketing regimen guaranteed to answer the most frequently asked question: How do I get in the door? This is a limited and unprecedented opportunity to develop dynamic selling skills, marketing knowledge, and a proven sales process—a winning mix that leads to career-building success. Get in on one of the four Dynamics Master Sales Classes scheduled in 2018. The fee for a 5-day session is $1250. Space fills quickly, so REGISTER TODAY! Anaheim/Orange, CA.............................................Mar. 12–16, 2018 New Orleans, LA......................................................... May 14–18, 2018 Indianapolis, IN............................................................Aug. 13–17, 2018 Mechanicsburg, PA............................................... Oct. 22–26, 2018

800-633-2165

TheNationalAlliance.com

Contents FEATURES 8 Giving Back and Paying Forward

IAIP President Linda Luka discusses her passion for education

16 Insider Insights

Wise words from the 2017 National Outstanding CSR of the Year Award winner and finalists

26 Credentials Matter!

How a strategic partnership with FSU benefits students, designees, and the industry at large

36 Hurricanes and Heartache on the Texas Coast

A timeline of storm activity and one agency’s rise to the challenge

COLUMNS 4 KRE Coverage

Chris Christian, CIC, RPLU

TheNationalAlliance.com

NEWS

7 Ask Bettie

The new PROFocus Series: Niche seminars—open to all

40 Texas Strong—A Year of Giving

What can we do after Harvey?

44 Honoring Our Academy Research Associates

Join this group of proud supporters

In the Spotlight

Industry accolades and achievements

inspiration

Up-and-Coming Talent

While it is not unusual to see anywhere from six to eight UCA (University of Central Arkansas) alumni attend a CIC course in Arkansas, it was a first in July when three current UCA students attended the CIC Agency Management Course sponsored by the IIA of Arkansas.

Kidnap, Ransom, and Extortion Policy basics

12 Drive Into the Future

JoAnn M. Clarke, CIC, CRM, CISR, CSRM, CPCU, ARM, AAI, CPIW, ARe

A close look at the ISO 2018 PAP update

Jennifer G. Schul, and Jamie Moser Smith, CIC

28 Telemedicine

An academic perspective on controlling the rising cost of health insurance

32 Recent Executive and Regulatory Action Related to the ACA

Chris Beinecke

An expert’s take on the significance and impact of recent action in healthcare reform

Senior Jeffrey Brantly (left)—an intern with James Greene & Associates Insurance Agency—and juniors Jonathan Wyles and Sarah Luman—interns with Union Standard Insurance Company—are all insurance and risk management majors at UCA. All three students passed the Agency Management exam and earned CIC credit. This allowed Sarah, who graduates in December, to complete the UACIC designation. Jonathan and Jeffrey will both likely complete the UACIC designation this fall, and both plan to complete their CIC designations prior to graduating. alliance@scic.com • 800-633-2165

NICHE KNOWLEDGE

anagement liability insurance is frequently referred to as “executive protection” coverage, which includes the ultimate in executive protection— kidnap and ransom coverage, as well as related coverages, such as extortion and workplace violence coverage. Other forms of management liability insurance protect executives’ personal assets, but kidnap, ransom, and extortion (KRE) coverage can protect executives’ lives, as well as the lives of employees, family, and guests.

Who needs a KRE policy?

One of the more obvious scenarios in which we recognize a need for KRE coverage is when we’re placing insurance on a financial institution risk, as it is easy to comprehend the need to protect banking executives in the case of kidnap or extortion attempts. Any insured whose executives engage in international travel also has a very visible exposure. However, there are many other insureds who can benefit from these coverages. The incidence of kidnapping of adults in the United States is far less than that occurring in more volatile territories, but there are still potentially thousands of abductions per year. (Abductions are not separately tracked from other causes of missing persons in the statistics, so pinpointing a number is not feasible.) Four factors that can contribute to an insured’s attractiveness to potential kidnappers are: • Proximity to the southern border • Opulent lifestyle • Access to large amounts of cash • Lack of visible security measures 4

RESOURCES | Winter 2017

If you contemplate those four attributes, you will probably be able to think of a handful or two of insureds that could benefit from KRE coverage, even if they do not tend to travel outside of the U.S. If you have insureds that travel to volatile areas, whether for business or pleasure, the hazard is heightened. You can check the State Department website for up-to-date information about the risks in any given country to which your insured wishes to travel. The State Department’s link is travel. state.gov/content/passports/en/ alertswarnings.html. Before your insured leaves on any trips to hazardous areas, a KRE policy should be put in place, at least for that trip, if not on an annual basis.

What will a KRE policy do for your insured?

First and foremost, a KRE policy will reimburse the insured for monies paid to ransom a kidnapped person. This coverage is always provided on a reimbursement basis—never “pay on behalf.” However, if the insured cannot quickly acquire the needed monies, a bank will provide a loan based on the KRE policy. In addition to the ransom itself, the policy pays for a multitude of other benefits. They vary by policy, but some of the most common include: • Costs for consultants to assist with negotiations and possible extraction • Repatriation expenses • Medical expenses • Cost of transportation and lodging for the family to be near a suitable location related to the kidnapping situation

BY CHRIS CHRISTIAN,

• Disability/dismemberment coverage for loss of limb or sight • Salary of the kidnapped person (so their family is not disadvantaged, and the insured entity is not expending monies for an employee who is not working) • Salary of replacement personnel (so the insured entity can hire an interim executive while the original one is indisposed)

, CIC, RPLU

Some kidnapping scenarios have gone on for multiple years, so you can see how these additional coverages could be incredibly valuable. In addition to the iconic kidnap for ransom scenario, there are a few variations on the theme, and policies cover these Some variations differently. Some of the common types of nonkidnapping traditional kidnapping are: Express kidnapping—An

insured is abducted, taken to multiple ATMs and forced to withdraw funds until the account limits are reached or all monies have been drained from the accounts. Whereupon, the victim is generally deposited somewhere, relatively unharmed, although often mugged. This can be accomplished in a number of hours and sometimes over the course of a few days.

scenarios have gone on for multiple years, so you can see how these additional coverages could be incredibly valuable.

Detention—A governmental agency

detains an insured for unknown or invalid reasons, refusing to allow the insured to return home.

Virtual kidnapping—The perpetra-

tor obtains the ostensible victim’s phone, or makes sure the victim cannot access his or her phone, and then calls the victim’s family, pretending to be holding the victim hostage. The perpetrator seeks a small, quick ransom, keeping the family member on the phone the

Winter 2017 | RESOURCES

Ransomware attacks generally emanate from malware that is broadly and randomly distributed, and the perpetrators have no idea which of thousands of potential victims will actually click on a malicious link and download the necessary malware. Accordingly, ransomware is generally not a targeted attack, and one would be prudent not to rely upon a KRE policy for coverage, unless this scenario is discussed and coverage agreed to with underwriters.

Workplace Violence

whole time, preventing the family member from reaching the victim to confirm their safety, or lack thereof. The victim in these cases generally does not know anything is going on. He or she may be at a movie, out with friends, or may have been told to evacuate the premises of a hotel, and while the victim is otherwise occupied, the perpetrator attempts to get funds from the family. This kind of kidnapping seems to most often target college students and their families, although any traveling person can be vulnerable.

Extortion

KRE policies also cover extortion. The difference between extortion and ransom is relatively straightforward. In laymen’s terms, ransom is money paid to return what has been taken. Extortion funds are paid to keep that taking, or other threatened event, from happening. Both are covered under a typical KRE policy. 6

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A relatively new addition to KRE policies, workplace Workplace violence coverage violence coverage provides response services should is a relatively an insured entity new addition to Extortion covincur an incident of erage can include workplace violence. KRE policies and threats against Unfortunately, no provides response persons, property, policies appear to buildings, data, provide services services should computer systems, to prevent such an insured entity or intellectual incidents from ocproperty. Extortion curring in the first incur an incident attempts against place. Rather, they of violence in their an insured’s comfocus on counselputer systems, or ing, post-event workplace. threats to release security, and busidata, could be covness interruption ered under a KRE policy (as long as coverages. So, if an insured has it includes computer extortion) or been threatened with workplace under a cyber policy. violence by a disgruntled employee, Please note, however, that the the policy will be of little help in same cannot be said of a ransomensuring that the employee does ware attack. Most KRE policies not act on his or her threats. restrict the ransom coverage to Many KRE policies will allocate abducted persons—not seized a limit to the insured to be used systems or data. Even if this were for security and safety training not the case, coverage most likely and loss prevention. It’s possible would not pertain in a ransomware that this coverage feature could be attack because a KRE policy will used to minimize the potential for usually require that the cause of violence to be manifested, but that loss be a “targeted attack” against will vary by policy. the insured.

The Bottom Line

As you can see, the world of KRE policies is wide and varied. The exposures run the gamut, while policies can have a lot of moving parts and cover just about anything. Identifying insureds that have KRE exposures is the first step to getting coverage in place where it is appropriate. The good news is that coverage, although critical when needed, is not overly expensive, and most insureds will be delighted at the value proposition once you have explained all the benefits of the coverage. n

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.

Do you have a question to “Ask Bettie?” Bettie Duff, Senior VP 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.

Dear Bettie, I heard some “buzz” from other account managers at work about a new update option called the PROFocus Series? What is it exactly, and who can attend? —Charlene Atkins, CISR Dear Charlene, The PROFocus Series is based on the renowned James K. Ruble Specialty Seminars. The Series includes ten seminars: Advanced Risk Management, Executive Risk, Cyber Risk, Contractors, Large Commercial, Financial Institutions, Legal Concepts, Food & Beverage, Healthcare Providers, Truckers I, and the MCIEF Annual Motor Carriers Conference, also known as Truckers II. The PROFocus Series delivers high-level insurance and risk education for industry, insurance, and risk management professionals. These specialty seminars are designed to help you build a niche or specialty business focus and elevate your skills and knowledge. The seminars are taught by nationally recognized faculty. The PROFocus Series is open to ALL interested professionals, and National Alliance dues-paid designees are eligible for update credit. CICs, CRMs, and CPRMs receive one year of update credit for a PROFocus Seminar, while CISRs and CSRMs can receive up to two years of update credit. Each seminar offers a variety of subjects and approaches under the main niche topic. This widens the appeal for those across the spectrum of insurance and risk management—P&C, Life & Health, Personal and Commercial Lines, Agency Management, Risk Management, and Personal Risk Management. We want all insurance professionals to experience these amazing seminars. Beginning in January, all dues-paid designees will experience a savings of $200 on any PROFocus Seminar in the calendar year 2018. —Bettie Dear Bettie, I have received emails advertising some of the PROFocus Series Seminars. Where can I find a description of each seminar available in the series? —Sean Matthews, CIC, CRM Dear Sean, To see a detailed overview of each PROFocus Seminar, visit our new website and click the PROFocus box on the home page. This takes you to the PROFocus Overview Page. Scroll down to find a listing of the seminar topics. As you hover over each topic, a “Learn More” button will appear that will lead you to a description of that seminar. —Bettie

Winter 2017 | RESOURCES

LEADERSHIP

ne of the biggest issues facing the insurance industry is the impending talent shortage. According to the U.S. Bureau of Labor Statistics, almost 400,000 professionals are expected to retire from the insurance industry within the next few years. One person making a difference in bridging the looming professional gap is Linda Luka, CISR, CPCU, CIIP, DAE, AAI, AIS, AINS, CPIA, CLP—recently elected President of the International Association

ReSOURCES | Winter 2017

of Insurance Professionals (IAIP). Involved in the insurance industry for 40 years, Linda’s commitment to recruiting, welcoming, and educating new industry professionals is longstanding. She has mentored, trained, and—by her own admission—learned from the recruits entering the field. Her philosophy is straightforward and farreaching, with strong ties that extend into many areas of the industry. Her history is as instructive as her current activi-

ties are, and the spirit with which she approaches everything that she does is truly an inspiration and a model. Linda Luka is a busy woman. She is the Agent Education Coordinator for West Bend Insurance Company, Vice Chairman of The National Alliance’s CISR Board of Governors, and she has been deeply involved with the InVEST Program for many years. Now, add to her list of distinctions the Presidency of IAIP—how does she find the time to seemingly do it all? “When you have a true passion for what you are do-

ing, you find a way to make it work,” Linda shares. My employer has always been a strong supporter of education. Well-rounded associates make us a stronger organization, and as one of the leaders in the Midwest, West Bend has a long-term vision for our company to have a greater presence in the insurance industry. They also encourage participation in community events. I became involved with Toastmasters, The National Alliance, IAIP, and the InVEST Program as ways to give back to the industry. Of course, my family is also involved in volunteering,

Linda H. Luka, CISR, CPCU, CIIP, DAE, AAI, AIS, AINS, CPIA, CLP and I originally learned that spirit from my parents. It goes back to helping others. You make sacrifices sometimes to get things done, but in the long run, everybody pulls together.” Linda sees being elected President of IAIP as an honor, and she intends to be an ambassador for the organization that has been so important in her own life. “Insurance Professionals is focused on three principles: networking, education, and community service.” Linda explains, “Education is an ongoing event—a continuum. The more information you have, the smarter you become, and that makes you more valuable. IAIP is open to anyone involved in the insurance industry. We provide insurance education, but focus more on leadership skills. For example, our Certified Leadership Program has 17 different courses that include topics such as negotiation techniques, working with others, accounting basics, strategic planning, and other leadership skills essential to professional development.” Linda emphasizes, “IAIP members are leaders both in and out of the office, and our courses complement the technical insurance training provided by The National Alliance. It takes both, so we have offered National Alliance courses here at West Bend for many years. The National Alliance provides the technical insurance skills, and we focus on interpersonal and ‘soft’ skills that help you become wellrounded. These days you must promote yourself and

be your own advocate, and education gives you the confidence to do that. There are few jobs that are guaranteed for life anymore. You have to make yourself valuable, and the more knowledge you have, the more valuable you are.” As Agent Education Coordinator for West Bend, Linda has her finger on the pulse of new trends in education. She has observed a significant change in learning styles. “IAIP started providing webinars, and we’re finding that people want to learn information in shorter snippets. At West Bend, we’re creating five

“We have 850 associates here at our main campus, and as we bring younger trainees into the underwriting world, we’re finding that they are more engaged with social media and their mobile devices. Now we ask them to leave their mobile devices behind and focus for an hour to get through the materials. We also include interactive, hands-on activities because we want them to be able to apply what they’ve learned.” Another difference that Linda sees in the next generation of workers is an intriguing shift. “Millennials view everyone as their

“…education is never wasted. The more knowledge you learn, the more valuable you are. You’re valuable to your current employer, but if you relocate, you have skills, and hopefully designations, that you can take with you. If you’re applying for jobs internally or elsewhere, having designations is important.” to ten-minute video segments, and we intend for some of these videos to be used for client education as well. We’ll always need longer courses—both classroom and online—but we are also going to have to meet the need for shorter, more intensive educational presentations. The dynamics of learning are also changing, so it will be interesting to see how state insurance departments respond to this in terms of adaptability and flexibility.” She notes changes in training parameters, as well.

peer,” she says. “Being at a company for ‘x’ number of years doesn’t really mean much to them, per se. But when you can show them what you know, articulate why they need to do something, and demonstrate what the consequences could be for NOT doing it, then you start to gain their attention and respect.” “I’ve learned things from the younger generation, as well. Sometimes they’ll say, ‘Why would you do it that way?’ and we’ll look at each other and ask ourselves the same question. That creates

an opportunity for dialogue. It allows us to ask them, ‘What do you think would be a better way to do that?’ If we want a different result, let’s look at it with fresh eyes, and we do make improvements based on those conversations.” Another important trend in the industry that Linda points out is the use of social media in interacting with clients. “Social media is playing a bigger role in everything as we go forward, and adapting to your client’s communication style is becoming very important. How often do they want to be contacted, and through which media? The insurance industry sells a promise, so it’s all about building relationships with the client. West Bend partners with independent insurance agents, and nothing happens until an agent develops a relationship with the client. The agent then chooses to place that client with one of their companies. At West Bend, it is important that we differentiate ourselves with our agents. One of the ways that we do that is by offering top-notch education classes. It really sets us apart because we offer courses every year in the states in which we are licensed. It helps the agents remain current with the industry, and staying current with the latest social media options is part of that education.” Linda has worked with the InVEST Program for many years. InVEST is geared to high school students, with the goal of educating them about the insurance and risk Winter 2017 | RESOURCES

LEADERSHIP

management industry. Linda explains, “We talk with the InVEST students, and we invite high school students in the area to visit our campus. They really don’t know what jobs are available in the industry, and how interesting they can be, so we have subject matter experts come in and speak to them about the opportunities on both the company and the agency side. Insurance is not typically ‘on their radar,’ and they tend to think of insurance as involving door-to-door salespeople, so we show them the opportunities available to them throughout the industry.” This philosophy carries over to the work Linda does with IAIP. She says, “One of the things that I always stress—with everyone—is that education is never wasted. The more knowledge you acquire, the more valuable you are. You’re valuable to your current employer, but if you relocate, you have skills, and hopefully designations, that you can take with you. If you’re applying for jobs internally or elsewhere, having designations is important.” Linda’s bottom line is this, “Insurance people are caring people. When you are involved in insurance, you are trying to help clients protect their lives and assets. These days everything is so fast paced. It is important for an agent to sit down with a client, ask them how they are doing, and really mean it. Time is so precious, so when someone is sincere and wants to know how you’re doing and how they can help you, it really 10

RESOURCES | Winter 2017

means a lot. Good communication is critical.” Stressing the importance of building client relationships, one of the courses that she teaches is Ethics. “People joke about having to get ‘more ethical,’ but the sad reality is that there are reasons why the Insurance Commissioners required ethics education originally.” Linda observes, “There are issues and problems in the real world, and we see it every day. As a faculty member, I find that Ethics is one of the hardest classes to teach. Coverages are pretty much defined in the policy, but there are a lot of gray areas in Ethics.” Linda does see generational differences. “I had a class recently that was divided over a case study about getting involved with an account written with a competing agency. The choices were narrowed down to the older group saying, ‘No, you don’t take that account, because that’s a handshake agreement, that’s an unwritten rule—you just don’t do that,’ and the younger people in the class said, ‘What do you mean? There’s nothing wrong with trying to take that account—you absolutely would go after that account.’ And then, after more discussion, the younger group was saying, ‘Why is it unwritten, and why didn’t anybody ever say anything?’ The case study brought up real-world issues, and differing perspectives on those issues, and that’s helpful to everyone. Ethics is a difficult topic because people have differ-

“Insurance is exciting because so many things in the world are affected by it, and that is especially relevant to the new technologies that interest the younger generation. They really don’t understand that the insurance industry is on the cutting-edge of almost everything—drones, driverless cars, all the new technologies. They don’t know about all the opportunities there are in the insurance industry, but once they understand, they become engaged and ask all sorts of questions.” ing opinions, morals, and values. There isn’t always a cut and dried answer, and the fact that something is legal doesn’t always mean that it is ethical. You may need to talk to other people to decide what to do. Sometimes you don’t have all the information and must make assumptions and choices based on the information that you do have. As the situation develops you can reanalyze and make different choices based on the new information. The client sometimes forgets to tell you pertinent information—when you get that information your answers may change.” Linda muses, “There are always differing perspectives. The classic example is the agency owner asking producers to write business with a specific company to earn a trip. The producer informs the CSR to do likewise. What are the dilemmas for the CSR? For the producer? The same thing goes for underwrit-

ers and adjusters. There are opportunities for deception and fraud every day, but it is important that we have these conversations so that people think about these types of situations.” Linda watched IAIP transition from the National Association of Insurance Women into the International Association of Insurance Professionals. She has seen many changes during that time. “I started my career fresh out of high school,” she relates. “I did not go to college because I thought that I was through with learning! I started my career typing policies, and I was encouraged to take some classes. That made me realize how much there was to the industry. I continued taking classes and moving my way up in the company. In 2003, I joined IAIP, and a group of us went to our first international convention in 2005. I remember being impressed by the women who were running that convention, and by my

Linda H. Luka, CISR, CPCU, CIIP, DAE, AAI, AIS, AINS, CPIA, CLP third convention, I decided I wanted to become one of the leaders of the organization some day. Without IAIP, I never would have taken the agent education position I’m in now. I wouldn’t have done a lot of things, because I would have lacked the skills, and the gumption, and the confidence to try it. IAIP empowered me.” She continues, “The people at IAIP have always been helpful and supportive. Knowing that someone has been there and done that, and they have your back and can give you advice, is really encouraging, and it gave me the courage to step forward and just go for it. Glass ceilings remain, but not nearly as many as when I started in this business. It’s rewarding to see women in roles throughout the industry and to know that future generations of women will have the same opportunities that males have always had. I’m proud of the part that IAIP has played in that.” For someone who is thinking about insurance as a career, Linda has solid advice that is based on experience. “Education is one thing that can never be taken away from you—and insurance is a dynamic and challenging career. It’s like I lay it out for the students in the InVEST Program. Insurance is exciting because so many things in the world are affected by it, and that is especially relevant to the new technologies that interest the younger generation. They really don’t understand that the insurance industry is on the cutting

edge of almost everything— drones, driverless cars, all the new technologies. They don’t know about all the opportunities there are in the insurance industry, but once they understand, they become engaged and ask all sorts of questions. Then they begin to understand

that it is an ever-changing and ever-challenging business.” Linda reiterates, “Education is my passion. I don’t want associates coming to the programs that we offer just to fulfill their CE requirement. We conduct National Alliance in-house courses

because I want our agents to be engaged in the classes that they attend. I want them to learn something and to be able to apply it. That’s what makes it a fascinating business—just look at me—40 years later, and more engaged than ever.” n

The Best and the Brightest The National Alliance presented 21 scholarships to IAIP members at the 76th Annual IAIP Convention held in Albuquerque, NM, on June 17, 2017. Each scholarship grants full tuition to one program conducted by The National Alliance. “The National Alliance partners with IAIP to award these scholarships to deserving IAIP members,” Danielle Janecka, Senior VP of The National Alliance, remarked. “These scholarships show our support and desire to encourage the best and the brightest in our industry. All the recipients are dedicated insurance and risk management professionals and have actively demonstrated their commitment to continuing education.” CIC Update Scholarship: Vicie Baldridge, CIC, CRM, CISR, AINS, CPIW, DAE HUB International Insurance Services, Inc. Denver, CO

CIC Scholarships:

Stephanie Cummings, CISR Leavitt Group Insurance Cedar City, UT Nicholas Glaser, CPCU, ARM, ARM-P, ARM-E, AIS, AIC, SCLA, CRIS Liberty Mutual Insurance Waukesha, WI Cheryl Kennedy Special Risks Rochester Hills, MI Natalie B. Sells Lamb Financial Group Conshocken, PA Francoise von Oelffen David Hurst Insurance Agency, Inc. Houston, TX

CRM Scholarships:

Christine Courtney, AIS Employers Insurance Henderson, NV

Angela Hochberger, CIC, CISR Gills, Ellis & Baker, Inc. New Orleans, LA Byron McLean, CIC, CISR Marsh and McLennan Agency LLC High Point, NC

CISR Update Scholarships: Bonnie Lea, CISR, CIIP Tapco Underwriters, Inc. Burlington, NC

Carol A. Weisman, CISR, AIC, ACSR, CIIP Glenn Insurance, Inc. Absecon, NJ

CISR Scholarships: Kelly Bailey Heritage Insurance Clearwater, FL Kaylee Marie Chance Messer-Bowers Company Enid, OK Daynelle Dawn Green Martin Insurance Agency New Orleans, LA Alicia Martin Thomas & Farr Agency, Inc. Monroe, LA

CISR Online Scholarships:

Kimberly R. Cameron, CPIW, CLP Agri-Center Insurance Agency, Inc. Clovis, CA Tannie Courson, CPSR Thomas & Farr Agency Insurance, Inc. Monroe, LA Beverly Jenkins Regional Insurance Services Shreveport, LA Nachole Gillis Howalt+McDowell Insurance, a March & McLennan Agency Sioux Falls, SD Donna Powell Specialty Risk Associates, Inc. Shreveport, LA

CSRM Scholarship:

Diana Meredith, CBIA, CPIA H.B. Cantrell & Co Charlotte, NC

In addition to initiating the CIC, CRM, CISR and CSRM scholarships, The National Alliance and the IAIP work together to encourage the promotion of the Outstanding CSR of the Year Award and promote the sale of publications by The National Alliance Research Academy. Winter 2017 | RESOURCES

POLICY UPDATE

BY JOANN M. CLARKE, CIC, CRM, CISR, CSRM, CPCU, ARM, AAI, CPIW, ARe

ne thing for certain— Personal Lines is not static! We have seen more coverage revisions and more endorsements introduced in the past two years than in any two-year period I can remember since entering the insurance industry in 1974. Next year will be no different, as ISO recently announced the filing of a new Personal Auto Program with a proposed September 2018 effective date. The new program includes revisions not only to the policy language, but also to 27 endorsements! Now, before you get too concerned about how this is going to impact coverage for your clients, let’s look at the big picture: 12

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• Only a few revisions are considered a reduction in coverage for clients. • Several revisions are simply moving exclusionary language from a mandatory endorsement into the policy itself, making it easier to “read” a policy. • Many revisions to current endorsements are needed because of the two points above, or simply for editorial revisions with no impact on coverage. • New coverage endorsements introduced! Let’s look at the significant changes and how they affect coverage for your clients.

Definition of “Newly Acquired Auto”—Under the current form, an eligible replacement vehicle automatically has Part A Liability (and other coverages except Coverage For Damage To Your Auto) until the end of the policy period without notifying the insurance company of the new vehicle. Clients will now have to notify their insurance company within 14 days.

From Endorsements to Exclusions

There are three exclusionary endorsements that will be incorporated into the policy itself, eliminating the need for a separate endorsement.

Learn More, Earn More

Public Or Livery Conveyance Exclusion— In October 2015, the Public Or Livery Conveyance Exclusion Endorsement (PP 23 40) was introduced to reinforce that transportation network services such as Uber, Lyft, etc., were subject to the Public Or Livery Conveyance Exclusions. All Coverage Parts in the 2018 policy will now incorporate the language of the Public Or Livery Conveyance Exclusion Endorsement, and the endorsement will be withdrawn. In the past, the sole exception to the public or livery conveyance exclusion gave back coverage for a share-the-expense car pool. Coverage will now be provided, by way of an additional exception, for the ownership or operation of a vehicle while is it being used for volunteer or charitable purposes. Personal Vehicle Sharing Program Exclusion—The new exclusion is added to all four Coverage Parts and is identical to those previously included in the Personal Vehicle Sharing Program Exclusion

Endorsement (PP 23 16), which is being withdrawn.

Listen to a free podcast about the PAP presented by the author of this article, JoAnn M. Clarke, CIC, CRM, CISR, CSRM, CPCU, ARM, AAI, CPIW, ARe, by going to scic.com/files/auto-policy-form-podcast. Only a few mp3 or scanning this QR code:

Custom Furnishings revisions are or Equipment— The CISR Insuring Personal Auto Prior to 2018, this considered a and the CIC Exposures Course exclusion in the policy Personal Lines Course both reduction in itself only applied to present excellent opportunities pickups or vans. The coverage for Custom Equipment to learn more about the clients. Exclusion EndorsePersonal Auto Policy. Details ment (PP 13 06) was of the new 2018 PAP will be introduced in 2009 to addressed in the CIC Personal Lines revise the exclusion to Course starting fourth quarter 2018. apply to ALL vehicles (not just pickups and vans), but only in in providing coverage for (by not excess of the first $1,500 of custom excluding) many racing situations. equipment. This endorsement lanAfter all, the exclusion only applies guage has been embedded in policy while the vehicle is located in a and the endorsement withdrawn. facility designed for racing and then Racing Exclusion Revised only while competing, practicing, Only one exclusion was revised— or preparing for any prearranged or the Racing Exclusion. The racing organized racing or speed contest. exclusions in Part A – Liability, Part The 2018 change tightens the excluB – Medical Payments Coverage sion, resulting in additional activiand Part D – Coverage For Damage ties being excluded. The exclusion To Your Auto have been generous continues to apply only while the vehicle is inside a facility designed for racing; however, the verb, “participating,” joins competing, practicing or preparing, and the activity, “driver skill training or driver skill event,” joins racing or speed contest. I know of an auto dealership that rents a local racetrack every year and invites customers who purchased a car from them to come drive their new car the way it was designed to be driven. Should a loss occur while involved in this activity, coverage may now be excluded.

New Exclusion

Flying Car Exclusion—Yes, you read it correctly. A flying car! In anticipation of increased popularity of flying cars, an exclusion is added for an exposure that is better insured on a specialty policy. The new exclusion in Parts A, B and

Winter 2017 | RESOURCES

C will apply when an insured is occupying a flying car (or roadable aircraft) and Part D will exclude loss to a flying car.

New Endorsements

Several new endorsements will be available in the 2018 auto program. Full Safety Glass Coverage (PP 33 05)—Coverage is provided, without a deductible, for damaged safety glass on your covered auto. Key Replacement And Related Services Coverage (PP 33 27)— This coverage may come in useful for those of us who lose our key or key fob or have one stolen. (I may or may not have ever lost my key fob. I may or may not have had to pay $400 to replace it!) This new endorsement will pay up to the limit shown in the Declarations for that vehicle, reasonable expenses for services to gain access to your covered auto if the key or key fob is lost or stolen, and the cost of a replacement key or key fob. No deductible applies to this coverage.

RESOURCES | Winter 2017

With an increasing number of dogs and cats riding in our vehicles these days, the Pet Injury Coverage Endorsement may come in handy if there is an injury to our “fur baby”…

Pet Injury Coverage Endorsement (PP 33 31)—With an increasing number of dogs and cats riding in our vehicles these days, this new coverage may come in handy if there is injury to our “fur baby” or “fur grandbaby.” This new endorsement pays reasonable veterinary or cremation/disposal expenses required because of bodily injury or death to a dog or cat owned by the named insured or family member. There must be Other Than Collision and Collision Coverages on at least one vehicle on the policy and the pet has to be inside a vehicle fitting the definition of your covered auto or a non-owned auto at the time of the loss. Coverage is provided, without a deductible, up to the limit shown in the Schedule.

Child Restraint System Coverage (PP 33 30)— Whether a rear-facing safety seat for babies, frontfacing safety seat for toddlers, or a booster seat, this endorsement pays to replace a child restraint system as a result of direct and accidental damage. There must be Other Than Collision and Collision Coverages on at least one vehicle on the policy and the restraint system has to be inside a vehicle fitting the definition of your covered auto or a non-owned auto at the time of the loss. Coverage is provided to replace with

like-kind and quality, without a deductible, up to the limit shown in the Schedule.

Replacement Cost Coverage (PP 33 10)—A coverage that has been available for years by many insurance companies will now be available. This endorsement will pay for a new vehicle with the same specifications as the vehicle being replaced as long as: (1) it is a total loss; (2) the loss occurs within 24 months after the insured becomes the original owner; and (3) the odometer shows less than 24,000 miles. Additional Resident Of Your Household (PP 33 37)—Many clients have individuals living with them who are not a named insured or a family member as defined by the policy. These individuals include roommates, significant others, and domestic staff, such as an au pair. While they are covered as an insured while driving a vehicle on the client’s policy (subject to policy exclusions of course), they do not receive the broad coverage the policy reserves specifically for a family member. Now clients have the option, with this endorsement, to provide resident individuals listed on the Schedule the same broad coverage previously reserved only for a family member. Personal Property Coverage (PP 33 42)—Now personal property coverage can be added to the auto policy. Coverage is provided on an open peril, actual cash value basis, up to the aggregate limit shown on the Schedule. (Note: For the client who does not have a homeowners policy of any type, this is a way to provide property coverage. Howev-

er, it does not provide much needed liability coverage. For individuals who live at home with parents, the Other Sources of Recovery provision may be problematic since coverage may also be available under the parents’ homeowners policy.)

under oath, as often as reasonably required by the insurance company. Recorded statements are now added to the list, so the person seeking coverage may be required to provide more than one recorded statement.

Other Changes

Conclusion

Transportation Expenses Coverage—The basic limits of $20 per day/$600 maximum is being increased to $30 per day/$900 maximum. Higher limits will continue to be available by endorsement. Trailer/Camper Body Coverage (Maximum Limit Of Liability) PP 03 07—A mold exclusion has been added along with a clarification that coverage is not provided on an agreed value basis. Named Non-owner Coverage (PP 03 22)—This endorsement has allowed the client who does not own a vehicle to have a personal auto policy that provides liability, medical payments, and uninsured/ underinsured motorists coverage when using a non-owned vehicle. One of the shortcomings of the endorsement has been the inability to obtain Other Than Collision and Collision coverages. That is now changed! Both of these coverages are now available; however, the most that will be paid is the Limit of Liability shown in the Schedule, subject to the deductible. Part A – Liability Other Insurance Provision is revised to clarify that coverage for a non-owned vehicle, including a temporary substitute vehicle, will be excess over any other collectible insurance except insurance specifically written to be excess over the limits that apply in the auto policy. Part E – Duties Provisions previously required the person seeking coverage to submit to physical exams by insurance company selected physicians and to examinations

As you read about the changes, no doubt you quickly saw several were clearly being made to meet the needs of our changing society. And yes, I am going to use the “m” word—Millennials. Many don’t own vehicles, yet still have the potential for a loss while in a vehicle; they may live at home with their parents, yet they still have the potential for a property loss; and their pets have become family members. In response, the ISO Personal Auto Policy is stepping up and giving you the ability to provide previously unavailable insurance protection for your clients. Note: Individual states may file revisions that change the coverages discussed in this article. n

About the Author: JoAnn Clarke, CIC, CRM, CISR, CSRM, CPCU, ARM, AAI, CPIW, ARe JoAnn is the Personal Lines Academic Director for The National Alliance, in addition to being a National Faculty member and an Educational Consultant. She has been in the insurance industry for over 40 years, with past experience as an agency CSR, a marketing representative for an insurance company, a state regulator, a college faculty member, and the owner of a consulting practice.

President William T. Hold, PhD, CIC, CPCU, CLU Publisher/Senior Art Director Becky Keeling bkeeling@scic.com Editor-in-Chief Carol Crysup ccrysup@scic.com Senior Editor Donna Loughran Department Editors JoAnn M. Clarke, CIC, CRM, CISR, CSRM, CPCU, ARM, ARe, AAI, CPIW jclarke@scic.com Deborah Davis, PhD, MEd, BA ddavis@scic.com Beverly A. Messer, CIC, CRM, CISR bmesser@scic.com Elsa C. Sanchez, CIC, CRM esanchez@scic.com D. Darelle White III, CIC, CPCU dwhite@scic.com jclarke@scic.com Resources is published by The National Alliance for Insurance Education & Research, P.O. Box 27027, Austin, TX 78755-2027, 800-6332165, Fax: 512-349-6194, Internet: 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 © 2017, 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 Winter 2017 | RESOURCES

INSIDER INSIGHTS

National winner Brianne Head, CIC, CRIS (center), is pictured with Dr. William T. Hold, CIC, CPCU, CLU, President, and Danielle Janecka, Senior VP, of The National Alliance.

RESOURCES | Winter 2017

Outstanding CSR of the Year® Competition

e’re pleased to present excerpts from the top five essays submitted for the 2017 Outstanding CSR of the Year® award. Competitors from across the nation shared their insights related to customer service within the industry. From the pool of state winners, we selected four finalists and the national winner. Brianne Head, CIC, CRIS, Director of Client Services with Independent Insurance Group, Inc., of Dallas, TX—this year’s national winner— and the four finalists have been presented with gold pins, cash awards, and more, for excelling in the national competition. See page 23 for a listing of all state winners. The National Alliance extends heartfelt congratulations to each of these deserving professionals.

The essay topic for the 2017 competition: “A friend who is a CSR has come to you for advice about a new customer service job opportunity in an agency in another city. What five factors about the employer and the position would you advise them to consider before accepting the job? Please discuss the most important factor first.”

Brianne (center) is pictured with (left to right) Independent Insurance Group, Inc., President Allen Sparks, Secretary Patrick “Ricky” Locke, Treasurer Chuck Ashton, and Sales Manager Gregg Walther.

THE NATIONAL WINNER’S ESSAY Brianne Head, CIC, CRIS Director of Client Services Independent Insurance Group, Inc. Dallas, TX

ow exciting to be in a position where you are desired, qualified, and the best candidate for the position! The process of considering a job offer is neither cut and dried, nor easy. Having people help navigate the unknown is comforting and a confidence booster when you reach your final decision. I would like to provide some food for thought and present five factors to consider when evaluating an offer of employment. These five factors are 1) culture, 2) benefits, 3) the interview process, 4) the reputation of the company in the industry, and 5) the position—and whether it lends itself to continued advancement. Based upon my experience, the culture of the company is the most important of the five factors listed above. This is the “touchy-feely” portion of a job opportunity. This factor is critical to understand because we spend more time with coworkers than we do with family and friends. Therefore, ensuring the overall office culture and atmosphere align with your personal needs will equate to a happier you. Information lending itself to the culture can be gleaned through several avenues: social media, the interview process itself, and tenure of both

past and present employees can all provide valuable insight. Hopefully, through the interview process, you received cues alluding to the overall culture, such as discovering how personal and professional successes are celebrated, whether management is transparent with the staff (sharing of goals, tracking toward goals, open doors, communication), and their stance regarding work-life balance. A company whose culture aligns with your personal values, beliefs, and needs is the most important aspect to weigh when considering making a change. An old adage alleges that people leave bosses, not jobs. I believe people leave cultures that do not align with personal beliefs, needs, and desires. Another aspect to consider when determining if an opportunity is right for you are the benefits. Salary, relocation assistance, health insurance, disability offerings, time off, educational development, and retirement planning options should all be considered. Understanding the eligibility requirements surrounding each benefit and how the overall benefits package meets your needs is crucial. Many people will negotiate salary, but consider negotiating other benefits as part of employment offer. There is value in discovering if the benefits available are above Winter 2017 | RESOURCES

INSIDER INSIGHTS

and beyond what other likely precede them. Be companies are offering in sure to perform your due the industry, as this prodiligence and investigate vides another insight into the company to determine their culture. An example if what has been presented of an extraordinary benefit to you (both by outsiders offering would be a Safe and through the interview Harbor contribution to a process) checks out, as per401K plan, regardless of ception is reality. Items that whether or not an employee may be of importance are: participates. What is their involvement Reflect on the interview in the industry? Are they process. Did you interview members of any professionthem, just as they were al associations? Are they asinterviewing you? The sisting in attracting the next interview process itself is generation to the industry? very much a What is their two-way street social media and will allow presence? What “A company you to see if is your opinion whose culture their culture, of their website benefits, and appearance and aligns with position align usability? What your personal with your is their stance needs, just as on technology? values, beliefs, they interWhat is their and needs viewed you to current office determine if set-up? Are they is the most you align with team based? important what they deWhat is the laysire in an emout and flow of aspect to ployee. Items the office? What weigh when to reflect upon philanthropic from the interendeavors are considering view process they affiliated making a may be: How with? did they handle The last change.” the interview item I would process? Were evaluate when your questions about the weighing your decision is position and organization to verify your knowledge welcomed? Did you like the and comfort level with the interviewers? Did you get a job description and duties good vibe? What was your as presented. Be certain you initial gut feeling or reacunderstand circumstances tion? Did the interviewers regarding the potential truly answer your questions (or lack thereof) for ador did they talk around the vancement and growth in questions without providing the future. If this was not answers? accomplished through the The industry’s percepinterview process, I suggest tion and the reputation of sending follow-up questions the future employer will to the interviewer to inquire, 18

RESOURCES | Winter 2017

from their perspective, what does the best day and worst day in the position look like. Their answers may be enlightening. If advancement with this company is appealing and important to you, hopefully you ascertained their plans for the future and whether or not they have a history of promoting from within. The time, thoughts, conversations, and issues that surround a potential job change are never easily navigated. It is helpful to know people are in your corner to guarantee you do not forget to weigh the big items when evaluating the offer. Help will always be offered to those who ask. Knowing that a peer respects your thoughts, opinions, and guidance on such important personal matters is a foundation of a strong personal relationship. Thank you for trusting me to weigh in on the opportunity placed before you. Good luck with your decision!

“T

hank you for calling Sullivan Insurance Agency, how may I help you?” Taking a position as a CSR (customer service representative) is much more than answering the phone and being in the office 40 hours a week. Depending on what the employer has in mind, the position could start simple (phone and mail), but as you show strong and positive qualities, you will find yourself creating and

NATIONAL FINALIST

Jennifer D. Fryar, CIC, CISR Account Manager Sullivan Insurance Agency Ardmore, OK

pursuing opportunities and advancing. It is important not to just let the agency interview you, but also to find out what opportunities and support they are going to provide to you to aid in the success of not only you, but your position. Leadership and support from the principal and/or producer is imperative. Without the support and guidance from top management, the opportunity for continued education, the ability to build relationships, provide good service, and grow as a competent CSR is limited. Agencies that invest in their employees and provide the needed resources, make it easier for you and your producer to meet and exceed set goals. In addition to good leadership, an additional advantage is providing a CSR with up-to-date technology to aid in getting the job done. Not all agencies provide up-to-date copiers, printers, agency manage-

Outstanding CSR of the Year® Competition

CPRM, CSRM, and much ment systems, risk manmore. In addition, extending agement systems, benefit on your Bachelor’s degree administration systems, or and pursing a Master’s will additional resources needed not only help you in your to do your job. It is vital the education, but will help you agency you go to work for is become a long-term employalways looking for the latest ee for the agency. and greatest technology that Loyalty, trust, and is going to help you and the honesty are hard to come customers. by today. By simply trying— Upon being offered the doing what you say you’re position and accepting, you going to do—and applying will need to get your insuran ethical quality to your ance license—the first step work will provide rewarding of your continuing educaservice to both the customer tion. Depending on what and yourself. With service your position will be at the comes time management agency, you will need a and organization. One thing property and casualty and/ you will learn early is that or an accident and health lithe life of a CSR is fastcense. Education should not paced, and that there will stop here—it is important be days when the first thing that you continue your eduon your list to accomplish cation and pursue designawill be changed with one tions. Receiving your license phone call. Being organized and designations will assist and thinking in your knowlbeyond what edge and conis being asked fidence when “Insurance (the next step, speaking with is complex; and then the customers and step beyond carriers. Educathus, it is that—the big tion will also essential that picture) will help you and help you retain your customers you continue a positive perwhen assisting to improve severance when with a questhe unexpected tion, filing a on skills, occurs. In claim, working education, and the insurance on a renewal, business, the marketing acbe aware of unexpected will counts, or the the available occur. unknown situWhile beations that will resources.” ing a CSR can arise. Insurance be complex at is complex; times, the relationships a thus, it is essential that CSR builds with customers you continue to improve are incredible. You will find on skills, education, and yourself talking about more be aware of the available than “insurance”—discussresources. There are several ing kids, grandkids, weekdesignations you can pursue end plans, or just providing from CISR, to CIC, CRM,

an ear to listen when needed. Relationships are powerful; customers become good friends and family; gratitude is given and received. Also, being proactive, prompt, motivated, and going above and beyond will earn you the respect of customers and carriers. Eleven years ago, I was offered a CSR position in commercial lines. Having some personal lines experience provided a foot in the door. Being offered the opportunity to work for an agency who invests in me, puts money back into infrastructure, and leadership guiding to the next level of education has allowed me to become more than a data entry clerk. I am now the “go to” employee in the office for Employee Benefits, I train new employees (Property & Casualty and Employee Benefits), and have contributed in the growth our agency, which has led the expansion of our department, in which I directly oversee two employees. The ability to think outside the box, have open communication, and be transparent within and outside the office has lead me to have selfawareness and self-strength in my position. The last bit of advice I would like to provide is to keep an open mind. Do not limit yourself in one field— be open to a wide-range of topics and resources. The CSR position is challenging at times and is a key role in the function and success of the agency. Being a CSR is very rewarding, both on a business and personal level.

he five most important factors of any job, in my opinion, are intertwined with each other. They are all an important part of any new job as they all affect the employee and the agency. To me, the five most important factors are: growth opportunity, reputation, stability, benefits offered by the agency, and turnover of the agency. A likely new employee needs to do their homework on a potential new employer. They need to discuss growth opportunity and how they can meet their personal goals, as well as how they can help the agency to grow. This may mean moving from a customer service representative position to that of an account executive. An example would be how they helped to set up procedures on the use of their

NATIONAL FINALIST

Pamela A. Grimes, CIC, CISR, CPIW, DAE, AINS, CBIA Academic Director VFIS of North Carolina/ Anders, Ireland & Marshall, Inc. Raleigh, NC Winter 2017 | RESOURCES

INSIDER INSIGHTS

find out as many positive current agency’s manageand negative things as they ment system. This will help can about the agency and to show the new employer then decide if this is a place that they know the job they where they would like to have interviewed for, work, or not. and showcase The attheir skills in “Employees tributes of an other areas. The agency’s repucandidate can want to feel tation play into help the agency like they have the stability of to grow by helpthe company. ing to bring a role within If employees new clients to the company are happy and the organizalike where they tion. All these and feel work, they help factors play into like they are the agency ingrowth opportucrease revenue nity for both the contributing and flourish. individual and to their For example, the agency. management The repuemployment.” may not do a tation of any good job of asagency is an imsessing their finances. The portant factor. As a potential potential employee should new employee, the canditalk to people within the date will be associated with company to find out if there this agency, and therefore, have ever been any finanwould want to work for the cial problems and find out best agency around. If the if they have been resolved. agency has a reputation of For example, if payroll has paying their employees well been delayed or paychecks and also taking care of their have bounced because there employees, they normally were financial issues, this are happy and do not want could cause problems for to leave. However, if the pay agency employees as they is low or if management would not be able to meet dictates the way things are their financial obligations. If done, employees have a the agency does not or cantendency to leave as soon as not pay their bills, it could they can find a better job. cause company contracts Employees want to feel like and business to be lost. they have a role within the These are flags to the candicompany and feel like they date that this might not be are contributing to their the right place for them to employment. The potential work. candidate needs to talk to Benefits are an important people who have worked part of any employment. there, along with people The candidate should ask who know the agency, and the agency what kind of current personnel as to how benefits they offer such they feel about the agency. as hospitalization, dental, The candidate needs to 20 RESOURCES | Winter 2017

and/or vision insurance, retirement, and short and long-term disability, and who pays for these benefits. If the employer pays for these benefits, or pays for the majority of them, then the potential candidate may take a lower salary. If the potential employee has to pay for all the benefits themselves, in the long run, they would have less money due to having to pay for the benefits themselves. If the employer pays for the benefits, this will also help them as they could potentially find a better candidate without having to pay out a large salary. Finally, if the agency has a high turnover of employees, this can cause problems as it signals employees are not happy and do not want to work there. The potential employee should talk to people they may know to see if they can find out the answer. It could be that the agency is hiring the wrong people for the job, or there could be an employee that likes to keep things stirred up, or a number of other reasons. They should try to find out what those reasons are and make the decision from there. Most of all, I would tell my friend to go with their gut feeling. If, after all of the above, they felt this was the right decision, then I would tell them to go for it, and would support them 150%. If, however, they had any doubt, I would tell them to weigh the pros and cons, and if they still were not sure, to not take the

job. Most of all, whatever decision they make, I would be happy for them and wish them well.

n 2005, I had the opportunity to move from one city to another for a CSR position with a different agency. There were many factors to consider to determine if it would be the right move for me and my family. Based upon my experience, I would advise my friend to consider these five most important factors when considering a new CSR position in another city. The most important factor to consider is the environment—both outside and inside the agency. Environmental factors to consider outside the agency include: wages, cost of living, availability of jobs in the area, rent, home sales, and schools. Wages and cost of living will tell you how far a dollar goes in the city you are considering. Check on-line to compare the cost of living between the current city and new city to determine what financial impact the relocation will have on your family. Look at not only the availability of jobs within your career field, but your significant other’s career field, as well, to determine how stable the job market is within the city and surrounding areas. In respect to housing— are you going to rent or buy? Do you need a house or an apartment? Do you

Outstanding CSR of the Year® Competition

have friends and family nearby? When moving with children, learning about the school districts in your new city is paramount. Friends, family, and local realtors are well-versed in neighborhood schools and can help match housing with children’s educational needs. Now let’s look at the environmental factors to consider inside the agency,

NATIONAL FINALIST

Demetra J. Ramey, CIC, CISR Account Manager CRS Insurance Brokerage Denver, CO

which include management style, work style, and culture. Does the agency’s management style fit your work style? Characteristics of management styles are their ways of making decisions and how management relates to subordinates. In your interview process, did you determine the management style of the company and if it’s a good fit for you? The managers you work with and the style in which they handle delegating tasks and rewarding their employees can have a significant impact on your happiness

with the position, company, benefits. Will the company and city. offer any of the followDoes the agency fit with ing benefits that may be your work style? Consider important to you? Familythe types of individuals you friendly benefits such as the will be working with inside opportunity to telecommute the company. Is the comor create your own work pany’s culture the right fit schedule; health insurance; for you? Utilize LinkedIn, life and disability insurance; Glassdoor, Twitter, or the relocation reimbursement; company’s website to deterretirement investment plans; mine what type of coworksick, personal and parental ers you will have and the leave; education reimbursetype of culture ment; vacation the company time; and child displays. Ask care benefits “If your yourself if you can all be improposed think it proportant considvides the right erations. If your salary is less environment proposed salary than expected, for you to sucis less than exceed and meet pected, evaluevaluate the your long-term ate the benefits, benefits, in goals. in addition to The next imthe paycheck. addition to portant factor A top-notch the paycheck. to consider is benefits packgrowth opporage may make A top-notch tunity within a lower salary benefits the agency. more palatable. Again, you can Will the empackage may utilize LinkedIn ployer subsidize make a lower to view profiles any of these of various embenefits, and if salary more ployees within so, what perpalatable.” the company. centage? These Do they show benefits can a pattern of help determine career growth within the the level of difficulty of the company or do you see that transition for you and your people tend to work the family. same role for years and then Company reputation is leave for better opportunianother factor to consider. ties? Promotion within a Performing a Google and company can be a strong Better Business Bureau sign of growth. It means search on the company can new employees are hired to help determine its reputareplace promoted ones and tion with clients and the the company is invested public. Talking to underin retaining and rewarding writers and other insurance their talent. peers can help determine Another factor to the reputation the agency consider is the company’s has in the industry. Re-

searching the agency’s reputation can validate the information you may have been given during the interview process. Finally, what do your instincts tell you about the opportunity? As in every other aspect of life, your instincts should be a tool in your decision making process, and it is important to heed them, even when you can not necessarily verbalize them. A negative feeling may be a sign that the new position you are considering sounds great, but doesn’t have something really important to your career. Therefore, if you have a bad feeling about a job offer, you shouldn’t ignore your instincts. Knowing who you are and what is important to you are the first steps on the road to career success and determining whether moving to a new city is the right decision for you and your family. With that—along with the right research and a little luck—you will find yourself in a job you want and never look back!

erhaps one of the biggest career decisions that you can make as an employee is to start a new position in a new city. You have to ask yourself, “Is it worth it?” Besides the non-work aspects of relocation, such as proximity to family and friends, getting around a new neighborhood, and how the move will affect those closest to you, an essential part of Winter 2017 | RESOURCES

INSIDER INSIGHTS

NATIONAL FINALIST

Brenda A. Sells, CIC, CISR CSR Theodore Tunick & Company Saint Thomas, VI

this transition should be to prepare yourself by obtaining pertinent information about the employer and the position, and by educating yourself, not only on the responsibilities of the job, but also on the company itself. Do your homework and research as much as you can about the new company. Who are the leaders within the organization? What is its employment track record? What is the company’s ratio on employee turnover? A sense of employment security with the new company is necessary before taking that leap of faith. What is the company’s mission statement and basic facts? Is the company’s mission statement in line with your core work values? What is the company’s standing with its competitors? What is being said about the company on social media? Social media is a perfect way to meet current employees of the agency who can give you 22

RESOURCES | Winter 2017

in helping the company to insight into the to that of the grow as well. organization’s description of “The term, Do you “fit-in”? Do your day-to-day opthe job that you CSR, is used work ethic and core values erations. are considering, match those of your potenDo the along with the interchangeably tial colleagues? Will you feel math! Is the pros and cons within the comfortable working in your salary being ofof each. new environment? How will fered worth the Does the industry you feel about your work research, time, position offer and can surroundings? Do you feel and expenses career growth? like part of a team or an to relocate? In Will this move encompass outsider? Is the work envia new city, the help further many roles ronment conducive to your cost of living your career? creative and natural abilities affects your botWill this move of customer to shine in your work place? tom-line. Would provide sufservice, such You really won’t know the you have to pay ficient upward answers to these questions more for daily mobility now as account until you are already workliving expenses and in the management.” ing there. Perhaps it would to live in a city future? Can be best to visit the new as opposed to a you take on agency to evaluate your new small neighborgreater rework surroundings. hood? Will the company sponsibility over time Evaluate what made you reimburse or pay for your and grow and learn while want to consider the new expenses to relocate? Is the climbing that corporate job in the different city in salary desirable and can you ladder? You wouldn’t want the first place. Have you live comfortably on a budto uproot your whole life outgrown your life and job get in the new city? Don’t for a company that has a where you currently are? be afraid to ask questions grim-looking future! Ideally, Do you feel that the change about competitive salaries you want to contribute to is necessary in the stage of in that particular city. Based a growing team and comlife that you are, right now? on your calculations, what pany when making this Asking yourself the hard are the pros and cons to level of commitment. Make questions will enable you to consider? sure you let your potential make more informed deciDo I know everything employer know that you are sions about your life and I need to know about the not interested only in your your future happiness. n job? Make sure that you own personal growth, but know everything that you need to know about the job. The term, CSR, is used CALL FOR NOMINATIONS for the interchangeably within the industry and can encompass many roles of customer service, such as account Get the glory for your agency, your team, and for management. Will you just yourself! Nominate a “Star CSR.” Anyone who works be responsible for servicing accounts or will you be in an insurance-related customer service role— required to engage in sales regardless of job title—is eligible to compete. Cash, as well? What volume of gold pins, and honors are bestowed upon the customers will you be asked national winner and finalists. And the nominator of to handle on a day-to-day the national winner receives a $1,000 cash award. basis? Will the accounts be Go to scic.com/nominate for details about how to larger or smaller? Compare nominate and WIN! your current job description

2018 Outstanding CSR of the Year Award

Outstanding CSR of the Year® Competition

Congratulations to each of our 2017 State Winners! Alabama

Nebraska

South Carolina

J. Everett Eaves— an AssuredPartners Gulf Coast Company

Jessica L. Northrup, CIC, CISR, Ellerbrock-Norris Insurance Hastings, NE

Arizona

Maine

Nevada

South Dakota

Arkansas

Maryland

New Mexico

Tennessee

California

Massachusetts

New York

Texas

Tracie L. Rainwater, CISR Wright-Sprayberry Insurance, LLC Sylacauga, AL

Karen A. Cates, CIC, CISR Brown & Brown Insurance of Arizona, Inc. Phoenix, AZ Amanda K. Swift, CIC, CISR BancorpSouth Insurance Services, Inc. Little Rock, AR Cecilia West, CIC, CISR ISU Insurance Services of San Francisco San Francisco, CA

Colorado

Demetra J. Ramey, CIC, CISR CRS Insurance Brokerage Denver, CO

Louisiana

Charisse A. O’Brien, CIC, CISR, CPIW

New Orleans, LA Cassie Fostun F. A. Peabody Company Lincoln, ME

Sarina P. Kowall, CISR, CIIP, DAE Cragin & Pike, Inc. Las Vegas, NV

Laura A. Kellner, ACSR Henry Murray Insurance Annapolis, MD

Kristie L. Ciancaglini, CISR Elite, ACSR Brown & Brown Empire State Syracuse, NY

Michigan

Rachael M. Greenberg, CISR Scarr Insurance Group Seminole, FL

Janet E. Threadgill, CIC Carnal-Roberts Agency, Inc. Lexington, TN

2017 NATIONAL WINNER

North Carolina

Magdalena Choma, CISR DC Insurance Group, LLC St. Clair Shores, MI 2017 NATIONAL FINALIST

Florida

D’one Hanisch, CISR Elite Howalt+McDowell Insurance, Marsh & McLennan Agency Sioux Falls, SD

Judi Vaughn, CISR Kysar Millennium Leavitt Insurance Farmington, NM

Shikena J. Burt, CIC, CISR Insurance Services of New England, LLC Wellesley, MA

2017 NATIONAL FINALIST

Amanda C. Guenther, CISR, AIAM, CIIP C. T. Lowndes & Company Mount Plesant, SC

Minnesota

Anita J. Borgerding, CIC, CISR North Risk Partners Apollo Division Albany, MN

Pamela A. Grimes, CIC, CISR, CPIW, DAE, AINS, CBIA VFIS of North Carolina/Anders, Ireland & Marshall, Inc. Raleigh, NC

Brianne Head, CIC, CRIS Independent Insurance Group, Inc. Dallas, TX

Virgin Islands

Brenda A. Sells, CIC, CISR Theodore Tunick & Company Saint Thomas, VI 2017 NATIONAL FINALIST

(also the VI state winner in 2015 and 2016)

Oklahoma

Virginia

Jennifer D. Fryar, CIC, CISR Sullivan Insurance Agency Ardmore, OK

Nicole A. Noonan The Harvey Insurance Agency, Inc. Gainesville, VA

2017 NATIONAL FINALIST

Illinois

Mississippi

Oregon

Washington

Indiana

Missouri

Pennsylvania

Wisconsin

Kentucky

Montana

Puerto Rico

Wyoming

Brooke A. Miano Brown & Brown of Illinois, Inc., dba Weible & Cahill Lisle, IL Walter E. Beck, CIC Cardinal Insurance Services, Inc. Indianapolis, IN

Ashley Hacker, CRM AssuredPartners NL Lexington, KY Not pictured: Idaho state winner, Danita E. Findlay of Boise.

Dane Capley, CISR BancorpSouth Insurance Services, Inc. Pascagoula, MS

Robin B. Talty, CIC Ollis/Akers/Arney Springfield, MO

Marsha R. Hattel, CIC, CISR, AAI HUB International Kalispell, MT

Anita Hostetler Hanson Insurance Group Covallis, OR

Benjamin L. Moyer, CIC, CISR Franconia Insurance & Financial Services Telford, PA Maria C. Alejandro Estrella, CISR Aon Risk Solutions of Puerto Rico San Juan, PR

Amy Misterek, AINS, CRIS Bell-Anderson Agency, Inc. Spokane, WA

Kathleen A. Grossen, CIC, CISR Tri-Insure, LLC Monticello, WI

Michelle A. Virtue Tegeler & Associates Douglas, WY

Winter 2017 | RESOURCES

Train Your Team with O 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 new-to-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. • Increase customer (and employee) retention with valuable customer service skills. Our programs are known—first and foremost—for their “put-it-to-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. 24

RESOURCES | Winter 2017

Professional Designation Programs CISR

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College students, seasoned professionals, and everyone in between can look to The National Alliance for networking, publications, and dozens of career-building resources. Visit TheNationalAlliance.com for complete listings of topic choices, 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!

Winter 2017 | RESOURCES

STRATEGIC PARTNERS

Credentials Matter! Sometimes it’s WHAT you know. Sometimes it’s WHO you know. And sometimes old adages are extremely apt: You are known by the company that you keep.

he Dr. William T. Hold/The National Alliance Program in Risk Management and Insurance brings heightened academic recognition to the excellence of National Alliance programs, both domestically and internationally. This recognition increases the value of your designations and enhances your professional reputation. As The National Alliance’s relationship with Florida State University continues to expand, the value of your affiliation with The National Alliance will continue to appreciate as a result of this professional partnership. It is truly an alliance for the future that rests firmly upon reputations hard-earned in the past. You may have noticed the ‘1851’ on the FSU seal. A lot of people notice that. They also notice that in July 2017, the Florida State College of Business was awarded the Global Centers of Insurance Excellence (GCIE) designation at the International Insurance Society’s Global Insurance Forum. And they note that the Dr. William T. Hold/The National Alliance Program in Risk Management and Insurance is ranked 4th among public institutions by U.S. News & World Report. Florida State’s online graduate business program—which includes the Master’s in Risk Management and Insurance (MS-RMI) and the Master’s in Management Information Systems (MS-MIS)—is ranked ninth overall and sixth among public universities. These statistics are particularly impressive when you consider that Florida State’s business school is one of the youngest in the nation. 26

RESOURCES | Winter 2017

Like The National Alliance, Florida State has built a solid reputation by offering significant quality and value in its educational programs. Like The National Alliance, Florida State recruits outstanding faculty members who are well-regarded for their knowledge and expertise. And Florida State’s reputation has been enhanced by alumni in the same manner that National Alliance designees are known throughout the industry. In fact, Dr. William T. Hold serves with a distinguished group of industry leaders on Florida State’s Risk Management and Insurance Executive Council, a group that works closely with the risk management program to advocate for the students and program to ensure that the industry has the talent it needs to continue to advance. One of the benefits of this crossfertilization between industry and academe has been Florida State faculty members making presentations at National Alliance programs. Most recently, Dr. Cassandra Cole, department chair and director of the MS-RMI Program, organized a program entitled “Women: The Emerging Entrepreneurial Elite” at the MEGA seminar in Orlando. Florida State faculty members and administrators have also made presentations at the Entrepreneurial Insurance Symposium, an event sponsored jointly by MarketScout and The National Alliance. Through its campuses in Florida, Panama, London, Italy, and Spain, as well as the Florida Catastrophic Storm Risk Management Center and the Center for Risk Management Education & Research, Florida State offers students

diverse opportunities to fully engage in the industry. All business students at Florida State are required to take a course titled “Risk Management in Business and Society” before formally entering the college. Currently, there are close to 300 students in the undergraduate major, and the online master’s program has also experienced significant growth in the last five years. During 2017, ten graduate students were selected as Hold Scholars and awarded scholarships to help defray their college expenses. More than 120 RMI students are members of Gamma Iota Sigma (the professional fraternity for risk management, insurance, and actuarial science majors), and many students participate in the University Associate CIC (UACIC) and/or University Associate CRM (UACRM) programs. To date, 38 Florida State students have earned either the UACIC or UACRM designations. Many students (particularly graduate students) are working in the industry, and all students have an opportunity to engage in industry research efforts and attend industry conferences and competitions. During 2017, the Florida State team placed third in the inaugural PriSim Agency Management Competition, an event that spanned four weeks and required the group to make agency management decisions, including hiring, training, lead generation, advertising, and business segment targeting. Four students made it to the second round of the Spencer-RIMS Risk Management Challenge at RIMS, and five students spent a week at Ludwig

Florida State University

Education. Reputation. Affiliation.

Two Great Academic Institutions. One Great Strategic Partnership. Maximilian University of Munich, where they presented their research as a part of a Catastrophe Risk Management Seminar. The Dr. William T. Hold/The National Alliance Program in Risk Management and Insurance, along with the Florida State Sales Institute and several industry partners, hosted the 2017 Insurance Sales Challenge. Thirty industry professionals served as mentors, judges, and business owners. Risk management and professional sales majors were evaluated on identifying the prospective client’s needs, as well as factors such as professionalism, the ability to build rapport, their understanding of products and services, their presentation, and the ability to think on their feet. When you put it all together, Florida State and The National Alliance are cultivating the RMI leaders of tomorrow by working together today. Credentials do matter, and the partnership between Florida State and The National Alliance is leading the way for insurance professionals across the nation. n Get more details about FSU’s innovative online graduate degree programs: Master of Science in Risk Management and Insurance (MS-RMI)—business.fsu.edu/msrmi Master of Business Administration (MBA)—business.fsu.edu/mba Toll free: 877-587-5540 Email: gradprog@business.fsu.edu

“As a preeminent university, we truly value our partnership with The National Alliance, and we’re grateful to Dr. Hold for his leadership. Our ability to bring faculty, students, and industry professionals together fuels our internationally recognized risk management and insurance program.” — John E. Thrasher, President, Florida State University “Tomorrow is always just one day away, and the future waits for no one. This recognition pushes us to offer integrated solutions to propel the industry forward. Working together we are stronger, our reach is wider, and the effectiveness of our collective efforts is broader. The National Alliance’s strategic partnership with Florida State is pivotal because credentials do matter, and this alliance reinforces the value of education from both an academic and a professional perspective.” — Dr. William T. Hold, CIC, CLU, CPCU, President of The National Alliance for Insurance Education & Research “Leading business schools and academic programs earn their way to the top by recruiting the best faculty and students and matching them with the very best leaders in a given industry. Our partnership with The National Alliance clearly pushes us above and beyond, making Florida State a preeminent destination for risk management and insurance education and research.” — Dr. Michael D. Hartline, Dean, Florida State University College of Business Winter 2017 | RESOURCES

ACADEMIC PERSPECTIVE

Telemedicine: Controlling the Rising Cost of Health Insurance Using Telemedicine Jennifer Schul Jamie Smith

Controlling the Rising Cost of Health Insurance BY JENNIFER G. SCHUL, AND JAMIE MOSER SMITH, CIC

With greater acceptance of the “consumer driven” healthcare model by employers and employees, many additional benefit enhancements are being considered. The following article is a general overview of the history and application of telemedicine, written by two graduate students enrolled in the Florida State University Dr. William T. Hold/The National Alliance Program in Risk Management and Insurance. Future issues of Resources will address benefit topics from the carrier, producer, and academic perspective.

mployee benefit plan premiums are on the rise. Over the last decade, plan premiums have skyrocketed and in 2017 healthcare premiums are anticipated to increase another six percent, putting stress on employers and employees throughout the United States (Miller, 2016). There are a variety of strategies being considered by employers to manage cost including encouraging consumerism, implementing wellness programs, and utilizing technol-

RESOURCES | Winter 2017

ogy. Though there is evidence of the use of telemedicine as early as 1950, and the use of telemedicine has increased dramatically in recent years.

What is Telemedicine?

Telemedicine, which literally means “healing at a distance,” increases patient access to care and medical information by using modern information and communication technologies (ICTs), such as computers, the Internet, and cellphones (World Health Organization, 2010). It was

first suggested in April 1924 on an imaginative cover for the magazine Radio News, depicting a “radio doctor” consultation with a patient not only by sound but also by a live picture, using the interactive video applications in telemedicine (Field, 1996). Today these applications overcome geographical barriers and provide clinical support using various types of ICT to improve health outcomes.

Early Uses of Telemedicine

The first reference to telemedicine in the medical literature appeared in 1950 when the transmission of radiologic images by telephone between West Chester and Philadelphia, Pennsylvania (a distance of 24 miles) was described (cited in Field, 1996). In 1959, clinicians at the University of Nebraska used two-way interactive television to transmit neurological examinations across campus to medical students, and later in 1964, they

established a telemedicine link with the Norfolk State Hospital (about 112 miles away) to provide speech therapy, neurological examinations, psychiatric case consultations, and education and training between specialists and general practitioners (Field, 1996). To assist in urban emergency and urgent situations, Massachusetts General Hospital (MGH) established in 1963 a telecommunications link with a medical station staffed by nurse clinicians at Boston’s Logan Airport (cited in Field, 1996). Using a twoway microwave audio/video link, the hospital physicians were able to provide medical care to airportgoers 24 hours a day (Allan, 2006). Further, in 1965 a ship-to-shore transmission of electrocardiograms (ECGs) and x-rays was reported (cited in Field, 1996), and in 1967, voice radio channels were used to transmit electrocardiographic rhythms from fire-rescue units of the City of Miami Fire Department to physicians at the Jackson Memorial Hospital (Field, 1996). Several federal agencies including the U.S. Department of Health, the Department of Health and Human Services (DHHS), and the National Aeronautics and Space Administration (NASA) supported and initiated various other telemedicine applications in the 1960s and 1970s, one of which was STARPAHC (Space Technology Applied to Rural Papago Advanced Health Care) in 1972. The program, sponsored by the U.S. Indian Health Service, NASA, and the Lockheed Missiles and Space Company, used satellite-based communications to provide medical services to astronauts and to residents of Arizona’s Papago Indian Reservation (Field, 1996). The mobile support units (vans) in rural Tohono O’odham reservation linked patients with physicians in Indian Health Service hospitals located in Tucson and Phoenix. The program lasted until

1975 (CDW Healthcare, 2016; Allan, 2006).

Technological Advances and Telemedicine

The two most significant potential benefits of telemedicine for employers are the reduction in lost time due to illnesses and the reduced healthcare costs…

The high transmission costs were a major reason for the fading interest in telemedicine in the early and mid-1980s; however, with lower costs and improved technologies (with the rise of the internet allowing support for practically all information and traffic needed for telemedicine), the interest began to revive in the early 1990s (Field, 1996; CDW Healthcare, 2016). To stimulate the adoption of electronic health records (EHR) and supporting technology in the United States, the Health Information Technology for Economic and Clinical Health Act (HITECH Act) was created and signed into law as part of the American Recovery and Reinvestment Act of 2009 (ARRA) economic stimulus bill (Rouse, 2014). After the Centers for Medicare and Medicaid Services (CMS) published the final rule on “Meaningful Use” of EHRs in 2010, which offered healthcare providers financial incentives for using EHRs, the adoption of EHR was complete and knowledge of telemedicine began to grow. Even the Patient Protection and Affordable Care Act (PPACA) made use of telemedicine and remote monitoring through the formation of Accountable Care Organizations (ACOs), which are groups of doctors, hospitals, and other healthcare providers, who voluntarily give coordinated care to Medicare patients (CDW Healthcare, 2016). The uses of telemedicine will continue to grow as the majority of providers rank telehealth as a top priority in 2016 (CDW Healthcare, 2016).

Telemedicine Today

So, what does all of this mean for

everyday people who are looking to telemedicine to improve the way healthcare is accessed and received? As you can see, the category of telemedicine is vast and encompasses many types of technology and services. From the employee benefit perspective, let us consider the telemedicine software available for everyday use through mobile devices like cellular telephones and computer tablets. Telemedicine software is readily accessible to download, usually at no cost to the consumer, and provides a much more efficient way of treating many common illnesses than the typical approach of going to a doctor’s office, urgent care, or the emergency room. Once downloaded, the application allows for a request to be sent to a physician for a consultation, after which a physician contacts the patient via video conference for the same face-to-face element of treatment as would be provided through conventional methods. The best part is that the response times average at 30 minutes or less with an average cost of less than $50 (VSee, 2017). With the average cost of a trip to the emergency room coming in at $1,233 and average wait time being four hours, there is no question that the telemedicine software provides an appealing alternative (Barron, 2013).

Benefits of Telemedicine

The two most significant potential benefits of telemedicine for employers are the reduction in Winter 2017 | RESOURCES

(HSA) with a high-deductible health plan (HDHP) is a popular choice among employers as it reduces premiums; as with most types of insurance, increasing the deductible will accomplish this goal of premium reduction. The disadvantage of this of course is the potential out-of-pocket expense the deductible creates. Telemedicine appears to be the perfect solution The use of telemedicine is still quite low to this problem. Not only does statistically, but based on early indications it allow for the and impressive statistics, it may very well be employer to utilize the premium savwhat helps turn our struggling healthcare ings associated system into a more cost-effective, efficient, with the HDHP, but the telemediand patient-friendly healthcare system. cine copays are covered by the 2013 that 90% of the calls they reHSA tax-free (Bradley, 2017). When ceived resulted in a diagnosis and employees are faced with having treatment and that approximately to incur the expenses involved in 53% of those patients would have seeking medical treatment and time had to see a doctor to be treated off at work, many of those emwithout the availability of their ployees will simply opt not to seek telemedicine software. This not treatment at all. Going without only saved the employee time and necessary medical treatment is just money, but the employer did not simply not a healthy, effective, or have to lose the productivity of efficient option. Telemedicine is the employee for the time needed great not only for filling coverage to see the doctor. Allyhealth also gaps, but also for offering a realistic states that employers can see 100% solution for employees to seek the return on investment (ROI) with care they need. as little as 15% to 20% employee Conclusion utilization (Whelpley, 2014). While Given these points, will the use of telemedicine does not eliminate the telemedicine help to control the need for sick days entirely, it does rising cost of health insurance? The reduce the time needed to consult use of telemedicine is still quite low a physician and makes it more statistically, but based on early inlikely that sick employees will in dications and impressive statistics, fact seek medical treatment, which it may very well be what helps turn will in turn likely reduce the duraour struggling healthcare system tion of the illness all together. This into a more cost-effective, efficient, can only be beneficial for both the and patient-friendly healthcare employee and employer. system. The following statistics The use of telemedicine to republished by one telemedicine duce loss of productivity is a direct provider are encouraging: benefit, but the indirect benefit of being able to use it to reduce • After telemedicine services the overall cost of the employer’s were employed by the Veterans healthcare package is worth noting. Health Administration postPairing a health savings account cardiac arrest care program, hoslost time due to illnesses and the reduced healthcare costs that come with product changes made possible by telemedicine services. Forbes magazine reports that an estimated $227 billion per year is lost solely from a loss of productivity due to employee illness absenteeism (Japsen, 2012). Allyhealth, a telemedicine provider, reported in

30 RESOURCES | Winter 2017

pital readmissions decreased by 51% for heart failure and 44% for other illnesses. • The Geisinger Health Plan study found that implementation of a telemedicine program generated about 11% in cost savings during that study period. This led to an estimated ROI of about $3.30 in cost savings for every $1 spent on program implementation. (Iafolla, 2015) Employee benefits demonstrate that an organization values its employees and is willing to invest in them and their health. Engaged employees can participate in wellness programs, resulting in healthier employees and reduced healthcare costs. Even the healthiest employee will experience an illness, but with the aid of telemedicine, employees will have fewer trips to the doctor which allows more time working in the organization. Telemedicine saves both the employer and the employee time and money, and ultimately allows the employees to bring their best selves to work every day; achieving the organization’s overall goal and objective. n References Allan, R. (2006, June 29). A brief history of telemedicine [blog]. Electronic Design. Retrieved from http://electronicdesign.com/components/brief-history-telemedicine. Barron, N (2013, April 30). 5 Emergency room myths busted. Bluecross Blueshield of North Carolina. Retrieved from http://blog.bcbsnc.com/2014/04/5emergency-room-myths-busted/. Bradley, C. (2017, January 05). Telemedicine benefits can help employers cut costs and promote a healthy workforce [blog]. Winston Benefits, Inc. Retrieved from http://www.winstonbenefits.com/ the-employee-benefits-blog/telemedicine-benefit. CDW Healthcare, (2016, October 06). The history of telemedicine. Healthcare Communit. Retrieved from http://www. cdwcommunit.com/news/top-news/ the-history-of-telemedicine/. Field, M.J., (1996). Telemedicine: A guide to assessing telecommunications in health care. Institute of Medicine (US) Committee on Evaluating Clinical Applications of Telemedicine. (2 –

Evolution and current applications of telemedicine). Retrieved from https://www.ncbi.nlm.nih.gov/ books/NBK45445/. Iafolla, T. (2015, August 20). 36 Telemedicine statistics you should know[blog]. eVisit. Retrieved from http:// blog.evisit.com/36-telemedicine-statistics-know. Japsen, B. (2012, September 12). U.S. workforce illness costs $576B annually from sick days to workers’ compensation. Forbes. Retrieved from https://www. forbes.com/sites/brucejapsen/2012/09/12/u-s-workforce-illness-costs-576b-annually-from-sick-days-toworkers-compensation/#73f020175db0. Miller, S. (2016, August 10). Employers project health premium hike of 6% in 2017. SHRM Newsletters. Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/health-premiums-2017.aspx. Rouse, M. (2014, December). Definition HITECH Act. Health IT Tech Target. Retrieved from http://searchhealthit.techtarget.com/definition/HITECH-Act. VSee (2017). Online Doctor Consultation Services. VSee. Retrieved from https://vsee.com/online-doctorconsultation/. Whelpley, A. (2014, August 1). Reduce employee sick days and increase productivity [blog]. AlleyHealth. Retrieved from https://www.allyhealth.net/ reduce-employee-sick-days-increase-productivitytelehealth/. World Health Organization (2010). Telemedicine: Opportunities and developments in member states: report on the second global survey on eHealth 2009. Global Observatory for eHealth Series (Vol. 2, pp. 8–9). Retrieved from http://www.who.int/goe/ publications/goe_telemedicine_2010.pdf.

About the Authors: Jamie Moser Smith, CIC, and Jennifer G. Schul Jamie and Jennifer are both FSU graduate students working toward their Master’s Degrees in Risk Management and Insurance. Jamie began in the insurance industry 18 years ago Smith as a teenager working in her father’s insurance office in central Florida. Throughout that time she has worked in both captive and independent agencies, started a family, and worked to build Schul her own book of business. Jennifer is the Deputy Director of Property & Casualty Product Review for the Florida Office of Insurance Regulation. She earned her undergrad degree in Actuarial Science and Statistics from FSU and began her career with the Office in 2007 as an Actuarial Analyst in the Dwelling Fire and Homeowners area and was promoted to Senior Actuarial Analyst in 2010, and Deputy Director in 2012.

Ruble MEGA Seminars have always been about giving you MORE. More topics, more expert instructors, MORE choices. And now we’re offering MORE MEGAs throughout the year, and MORE ways to attend! In addition to our three popular (and fun!) destination MEGA Seminars—Denver in March, Orlando in June, and Dallas in October—we’re now offering six live, instructor-led online MEGAs throughout the year. Destination MEGAs allow you to create your own 16hour seminar—and schedule—by choosing from more than twenty 4-hour topics, presented over four days in a fun-filled destination city. Mix and match your classtime and leisure time—hit the slopes around Denver; play the day away at Disney World; go bootscootin’ in Dallas! Online MEGAS come to YOU—choose any four of eight 4-hour topics to fit your individual needs and interests. Each instructor-led topic is covered in two 2-hour webinars held on the same day. Skip the travel and enjoy the convenience, right from your home or office. Ruble Seminars are renowned for their top-notch instructors and advanced curricula—and they’re now open to all dues-paid National Alliance designees. Take your pick, and reserve your spot: Destination MEGAs: Westminster (Denver area) MEGA.......................... Mar. 12–15

Online MEGAs: Jan. 11–Feb. 13 Mar. 5–Apr. 20 May 7–June 22 July 2–Aug. 28 Sept. 5–Oct. 19 Nov. 6–Dec. 18

Lake Buena Vista (Orlando area) MEGA...............June 4–7 Richardson (Dallas area) MEGA...........................Oct. 15–18 See detailed agendas and register at

TheNationalAlliance.com Winter 2017 | RESOURCES

LIFE & HEALTH ADVISOR

ACA

Recent Executive and Regulatory Action Related to the

BY CHRIS BEINECKE

The National Alliance and the International Foundation of Employee Benefit Plans have had a strategic partnership for the past eight years, working with agencies in the benefits arena to provide relevant information and programs in a rapidly evolving benefits environment. The author of this article, Chris Beinecke, gave a “Health Care Reform” presentation at the Foundation’s recent 63rd Annual Employee Benefits Conference in Las Vegas.

s September 2017 drew to a close, it appeared that significant legislative efforts to repeal and replace the Affordable Care Act (ACA) were on hold until at least 2018 and would likely be joined by a bipartisan approach to amend and “save” the ACA. Against that backdrop, October 2017 was a busy month for both executive and regulatory action intended to loosen certain ACA requirements, allowing greater flexibility to offer lower cost health insurance coverage options to consumers than is feasible under the existing ACA. Some of these actions are likely to put pressure on the long-term viability of the public insurance marketplace (e.g. Healthcare.gov and state-run insurance exchanges), potentially unraveling a key component of the ACA—if not the ACA itself—forcing Congress to act, and perhaps increasing the chances of repealing and replacing the law. The October action included: 1. Interim final regulations expanding the types of entities that can claim exemption from the ACA’s preventive services mandate to provide women’s contraceptive services; 2. Proposed regulations giving states greater flexibility to estab32

RESOURCES | Winter 2017

lish benchmark plans, beginning on or after 2019, that will enable states to narrow the services defined as minimum essential health benefits; 3. An Executive Order directing federal agencies to consider expanding the availability and use of association health plans, short-term, limited duration insurance, and health reimbursement arrangements; and 4. Executive and agency action ending the practice of paying for cost sharing reduction subsidies for low income individuals without a specific appropriation from Congress.

and Human Services (HHS), Labor (DOL), and the Treasury (the “Departments”) to “consider proposing regulations or revising [existing] guidance” related to expanding the availability and use of association This article focuses on actions health plans, short-term, limited #3 and #4 above, both of which duration coverage, and health reimoccurred on October 12, 2017. It is bursement arrangements. While the possible that additional guidance Executive Order does not literally related to these topics order the agencies has been issued as of to issue regulations the publication date of or change existing Some of these this article. guidance, it is likely the agencies will do actions are Presidential so. This process could Executive Order likely to put take many months, Promoting and the Executive Orpressure on Healthcare Choice der should be viewed and Competition the long-term as a signal of change Across the United rather than change viability of States itself. There are few This Executive Orthe public details available at der directs the U.S. the writing of this insurance Departments of Health

marketplace…

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PRODUCER SCHOOL article, but a high-level summary of the Executive Order’s directives and open issues follows: A. Association Health Plans (AHPs) The DOL was asked to consider ways to make it easier to form an AHP by loosening the existing membership rules under ERISA. The intent is to enable employers that would otherwise have to separately purchase small group insurance subject to a large number of ACA mandates, to pool together and participate in large group insurance or self-insured ERISA coverage that is subject to fewer ACA mandates. This should give the AHPs greater flexibility to offer lower cost coverage and/or a different premium structure than available small group coverage. For example, small group insurance policies

issued in a state must cover all benefits identified as essential health benefits in that state’s benchmark plan. By contrast, the selection of a benchmark plan by a large group insured or self-insured plan merely determines which benefits offered under those plans are defined as essential health benefits for ACA purposes, but the plans are not required to offer coverage for all of the essential health benefits covered under the benchmark plan. Existing ACA guidance also permits large group insured or self-insured plans to select from among any of the available benchmark plans, which provides a sort of compliance continuity for employers with plans covering employees in multiple states. There are several issues that need to be resolved. Insured plans are obviously subject to state

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Winter 2017 | RESOURCES

insurance law and regulation, which is also generally true for selfinsured plans not subject to ERISA. Similarly, self-insured ERISA plans covering two or more unrelated employers are considered multiple employer welfare arrangements (“MEWAs”), which limits ERISA preemption and also subjects the plans to state regulation. This limits the ability to offer an AHP across state lines. It seems likely the administration intends the DOL to circumvent this, perhaps through a determination that an AHP covering employers with strong relational and/ or geographic ties may be considered a single employer plan The clear under ERISA. There intent of the have also been prior proposals related Executive to selling insurance Order is across state lines that would permit policies to enable to select a situs state employers to and receive reciprocity in other states. In offer to current other words, a policy employees sitused in Arizona could be issued in HRAs that neighboring states can be used while only having to comply with Arizona to purchase law. insurance One would expect states will be loath to policies from surrender the authorthe individual ity to regulate insurance issued within insurance their borders, almarket. though this is generally what happens with self-insured ERISA coverage that is not a MEWA. An alternative may be future guidance promoting the formation of insurance compacts between states in which a state would view an AHP as complying with its laws if the AHP complies with the state requirements where the AHP is sitused. Finally, ERISA status also requires the coverage be offered by 34

RESOURCES | Winter 2017

employers to their employees. As a result, it appears that AHP membership could not be expanded to include self-employed individuals if the AHP intends to qualify as a self-insured ERISA plan. B. Short Term, Limited Duration Insurance (STLDI) Under existing law, certain shortterm health coverage is not subject to the ACA. Coverage under a non-ACA compliant short-term health plan does not cause an individual to fail the ACA’s individual mandate requirement as long as the individual is covered by the policy for less than three months. The Executive Order requests the Departments explore expanding the permitted short-term coverage period to less than twelve months. C. Health Reimbursement Arrangements (HRAs) The clear intent of the Executive Order is to enable employers to offer to current employees HRAs that can be used to purchase insurance policies from the individual insurance market. This could be accomplished by either permitting HRAs to integrate with individual insurance coverage for the purposes of ACA compliance—a reversal of current guidance—and/or exempting such HRAs from having to comply with the ACA’s plan design requirements (e.g., this includes the prohibitions on annual and lifetime limits for “essential health benefits”). Interestingly, the AHP and Cost Sharing Reduction Subsidies issues discussed elsewhere in this article may ultimately reduce the number of individual policies available through the public insurance marketplace. Small employers gained the ability to offer the somewhat similar Qualified Small Employer Health Reimbursement Arrangement (“QSEHRA”) as of January 1, 2017. Under the QSEHRA rules, a small employer cannot offer both a QSEHRA and group health plan

coverage. Unlike the QSEHRA, we expect large employers will be able to continue to offer other group health plan coverage in addition to an HRA that can be used to pay for individual insurance coverage. For now, we do not know if a large employer solely offering a premium reimbursement HRA will be treated as having made an offer of coverage for the purpose of the ACA’s employer mandate. If the Departments determine that these premium reimbursement HRAs will qualify as an offer of coverage to current employees either on an integrated basis with individual policies or on a standalone basis, it seems reasonable to believe that certain relief will be provided to employers: 1. Employers shouldn’t be required to determine whether the individual policies integrated with the HRA are ACA compliant. The Departments could also resolve this issue through guidance requiring that the individual policies purchased must be metallic (i.e. gold, silver, bronze, etc., levels) coverage offered through the public insurance marketplace. 2. For ACA reporting purposes (e.g. Form 1095-C), some sort of coding solution similar to the workaround to reflect offers of coverage through multi-employer plans seems likely. Otherwise, it’s not clear how an employer would address issues related to whether the offer of coverage meets minimum value or how to reflect the “cost” of the coverage offered. It is probable that employers will have the option to choose whether their HRAs can be used to pay for individual insurance coverage or exclude this by design similar to the ability to limit an HRA to reimbursing for dental and/ or vision expenses.

Executive and Agency Action Ending Obama Administration Practice for Reimbursing Cost Sharing Reduction Subsidies (CSRs)

The ACA provides for CSRs to help lower the out-of-pocket expenses for individuals who are enrolled in a “Silver Plan” through the public insurance marketplace and whose household incomes are between 100% and 250% of the federal poverty limit. Silver Plan insurers are required to provide these CSRs to eligible enrollees, and the insurers receive reimbursement from the federal government. There has been a lengthy legal dispute regarding whether this reimbursement to insurers requires a specific appropriation from Congress or if they can be paid from other funds. Under the Obama Administration, no specific Congressional appropriation occurred, and reimbursements were paid to insurers out of a more general, discretionary fund. The Trump Administration had threatened this practice throughout 2017 and eventually halted it on October 12, 2017 (through the Attorney General and HHS). The ACA actually requires Silver Plan insurers to provide the CSRs whether they are reimbursed by the federal government or not. Without reimbursement, insurers will either increase premiums to offset cost of CSRs, coincidentally affecting premium subsidies, or exit the public insurance marketplace. While Congress may address the CSR issue through a specific appropriation of funds, the uncertainty facing insurers appears to have already had an effect, as a recent survey from Avalere Health indicates that the premiums for Silver Plan coverage will increase approximately 34% for 2018. n

About the Author: Chris Beinecke Chris is Counsel in the Employee Benefits and Executive Compensation Practice group at Haynes and Boone, LLP, who focuses on the areas of compliance and administrative best practices for health and welfare benefit programs.

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Winter 2017 | RESOURCES

A Timeline of the 2017 Storm Season By the time Hurricane Harvey made landfall in Texas near the RockportFulton area on August 25th, four tropical storms and two hurricanes had already been and gone. None, however, packed Harvey’s punch. A Category 4 storm, Harvey’s winds reached 130 mph. Stalling over the Texas coast for days, Harvey eventually returned to the Gulf of Mexico as a tropical storm. But on August 30th, it made a comeback, this time landing near Cameron, Louisiana. Days of unyielding rain and high-powered winds sent numerous counties into survival mode, displacing millions. In the six days it spent on land, Harvey killed more than 80 people, dumped more than 27 trillion gallons of water, and cost an estimated $75–$190 billion in damages, so far. While Hurricane Harvey performed its encore in Louisiana, another storm grew. Within 24 hours, Tropical Storm Irma became a hurricane. Days later, the National Hurricane Center upgraded Hurricane Irma to a Category 5—its severest rating. With winds reaching or exceeding 157 mph, catastrophe was said to be imminent. On September 6th, Hurricane Irma struck Antigua, Barbuda, St. Martin, Anguilla, St. Kitts, Nevis, the US Virgin Islands, and the British Virgin Islands, before causing further damage and destruction in the Dominican Republic, Cuba, and the Bahamas. Then on September 10th, Irma struck the Florida Keys. Gradually weakening, the storm continued moving northward. By the time Irma fell apart over Tennessee on September 13th, it had killed at least 70 people and caused an estimated $50–$100 billion in damages. On September 18th, Hurricane Maria, another Category 5 storm, devastated the Caribbean island of Dominica. Two days later, Maria became the most powerful storm to hit Puerto Rico in 85 years. Eight weeks after the storm, estimates put the death toll at

RESOURCES | Winter 2017

Photos: Benjamin Griffin and Jeff Buck

he National Alliance’s Chief Innovation and Academic Development Officer, Mitch Dunford, and Video Production Specialist, Ben Griffin, took a trip to South Texas just two weeks after Hurricane Harvey’s landfall. In their travels, the two recorded the hurricane’s devastation as they headed south. They interviewed storm victims and on-the-ground insurance personnel, some of whom had also lost everything themselves, but were working hard to serve their clients in the wake of the storm. In Rockport, Texas, Mitch interviewed Blake McDavid, VP of Sales, and Kenny Cruzan, IT Manager, both of GSM Insurors, a family-owned insurance agency which has been in business in Rockport since 1923.

Learning Harvey’s Lessons— Blake McDavid, VP of Sales, GSM Insurors Blake McDavid has lived in Rockport all of his life and has seen his share of extreme weather. Yet none of it, he says, compares to Hurricane Harvey. “Reports before the storm indicated that Harvey wouldn’t be anything more than a tropical depression. I think one lesson from this experience is to not take anything for granted. Get prepared, get your family prepared, and get your agency prepared. Have a plan in place well before hurricane season. That way, you can act quickly when a weather situation changes.” On the morning of August 25th, Harvey intensified rapidly from a tropical depression to a major Category 3 hurricane. McDavid recalls, “We went from, ‘We’ll stick around and ride it out,’ to ‘We have to get

“…one lesson from this experience is to not take anything for granted. Get prepared, get your family prepared, and get your agency prepared. Have a plan in place well before hurricane season. That way, you can act quickly…” out of town,’ within the span of a few hours. We had an action plan, but once we made the decision to go, so had the rest of the Coast. The highways were flooded with people, the hotels were flooded with people, and we realized that we needed a longer-term plan. We had already booked a hotel, but we knew we might not have a livable place in Rockport to go back to the next day. Luckily, we were able to book for a longer stay out of town—that way we could assess from afar, get back in as soon as we could, and then reassess from within the disaster area.”

McDavid’s agency knows it pays to be proactive in times of disaster. Following an extreme weather event, especially one of such magnitude, establishing oneon-one communication with clients is a priority. “You can never plan 100% for an event like this,” says McDavid. “But we had a backup office location ready to go so we could be up and running within 48 hours of returning to town. We assumed that our buildings would be knocked down—assumed that the worst would have happened.” One thing McDavid says they never anticipated was the personal

more than 51 and damages at $90 billion and rising. Damage was so widespread and severe that some reporters described the storm as “apocalyptic.” This year’s overwhelming and heartrending hurricane season ended on November 30th. In a list of 26 storm names reserved for 2017, only six names are unclaimed. Costs to global insurance and reinsurance sectors is estimated at $190 billion or more. And the personal devastation coupled with personal heroism revealed in this season of hurricanes is extraordinary. Dr. William T. Hold, CIC, CPCU, CLU, President of The National Alliance, expressed it this way, “Hurricanes Harvey, Irma, and Maria are still raw in our memories. Disasters like these rock our foundations physically and emotionally and make us reconsider what is important. So many lost so much in these super storms, with each individual and family affected facing a very real test. We all watched as the touching personal stories unfolded on television before our eyes—millions of people suffering, their lives under threat. It was difficult at times to know how to help. In our stead, there were the first responders, sacrificing their own wellbeing. Soon, there were neighbors and strangers, gallantly helping one another, holding out a hand as a link to safety and life. Then, there were first responders of another kind—insurance agents, claims personnel, brokers, and underwriters who hit the ground running. They were doing what insurance professionals do, but both on an individual and a massive scale, helping rebuild lives and opening a way forward for their clients.” In the stories here, you will read about the individuals and agency representatives who experienced the storms firsthand either as victims, first responders, or both. And you will hear about some of the people at The National Alliance who are dedicated to making this ‘year after’ a season of giving. (See page 40.)

Winter 2017 | RESOURCES

side of their employees’ situations. “What if our employees’ houses are gone? Logistically, where do they go? Most people run to their families who are out of town. For others, because it was a last-minute decision, the hotels are full, and their choices are limited. As a result, we wound up with personnel spread across

McDavid

directly to them on a human level—to our customers, to our employees.” Handling the human side of things, the constant flow of insureds coming through the office turned out to be an unforeseen emotional challenge. “But since we are living it as well,” says McDavid, “we can empathize. We live just blocks away from

“Don’t ever forget the relationship side of your business because in times like these, it’s important for both client and agent. You’re helping your clients emotionally, financially, supportively.”

the state, and we knew we would need them here to respond to the requirements of the community. So getting the office up and running was the first and most challenging task. It was a big help to have key people on the IT side and on the operations side who were mobile. They were initially outside the disaster zone, where they could use cell phones to call our employees and see if they were okay—find out where they were going to be. Then these key people

were able to get back into Rockport, check on employees’ houses and scout the situation.” McDavid recommends, “Go with your plan and then improvise as the situation unfolds.” McDavid has nothing but praise for local residents. “As torn up as our town was, we have been so impressed with the citizens of Rockport

RESOURCES | Winter 2017

and the people in communities nearby—Ingleside, Port Aransas. People came back in really quickly. It was important that our agency be here and that the people see us here—to answer questions, yes, but more importantly, just to be here. We had a lot of people coming in, and they didn’t know what their next step was. They were broken—they were crying, and they’d lost everything. It was important to be here for them—just be here for them and relate

the office. We have a very personal relationship with most of our insureds. Don’t ever forget the relationship side of your business because in times like these, it’s important for both client and agent. You’re helping your clients emotionally, financially, supportively.” All of these elements factor in to making a difference in clients’ lives, helping them to hold on. “We’re working hard to keep ahead of the claims,” McDavid says. “By about

three in the afternoon every day, after starting at six in the morning, we are physically and emotionally drained. Partially just from the workload, but it’s also from the weight of the stories we hear coming from our clients. That is very difficult for us to handle. Many on our staff have lost their homes and everything as well, but they feel so bad for the people coming in. It’s been a bigger emotional ride that we could have ever imagined.” According to McDavid, the response from inside and outside the community has been huge. “Everybody has been amazed at the support we have received locally, statewide, and nationally. We have volunteers who are cleaning up people’s yards, houses, and picking up debris,” observes McDavid. “That has helped so much on the emotional side. When people can go to their damaged homes and not see the downed trees, the storm debris, or shingles and roofing all over the property, it helps their psyche a little bit to have their properties looking more normal. Or they can return to wherever they are staying out of town, feel some relief, and say, ‘Okay, because the yard was cleaned up today, I can begin to see the light at the end of the tunnel.’” It seems that most people in the Rockport area want to rebuild right away. McDavid says, “If people could get their insurance checks tomorrow, they’d be trying to reconstruct their homes. Educating clients that this is a disaster on a wide scale, encouraging them to have patience, and readying them for a realistic rebuilding timeline is important. We

tell them, ‘You are going to hear from your adjuster next, and the adjuster is not going to have a check when they show up at your house. The adjuster will gather information on-site and pass it along to a desk adjuster, and the process will go from there. By that time, services and resources will be back in place.’ That’s been an education process. The phase we’re in now is, ‘Okay, where’s my check?’ I’m excited about that because it means people want to stay and rebuild.” “Agencies need to nurture a relationship with the local government in situations like this,” says McDavid. “Without our relationship with the local government, we couldn’t have come to the assistance of the community as effectively as we have. The local and state groups brought their representatives in and answered people’s questions as quickly as they could. The Texas Windstorm Insurance Association (TWIA) is here and has been very responsive. All the insurance carriers have been good at showing up. Being able to have them on-site is fantastic.”

in person. It chokes me up just now thinking about it,” says Cruzan with tears in his eyes. “I’ve been living it, so it’s pretty tough. I have a hard time talking about it.” At GSM they plan for different kinds of natural disasters, but hurricanes are number one on their list. Cruzan explains, “We have a pretty good disaster recovery plan. We edit it, and we test it about once a year. Hurricanes Katrina and Rita scared us a lot and alerted us to some potential pitfalls. We used to have all of our servers here, not to mention all the computers and hardware. But after Rita, we moved everything off-site to a secure center in Austin, Texas. It’s a full back-up system that we can virtualize in a manner of minutes. So if we have downed servers, we can virtualize not only in the location we are in, but we can also virtualize in several other locations, as well—from the Cloud. That gives us the ability to get up and running quickly.”

up faster than the others. Since that time, we’ve tried to see how we can get that provider. Fiber build-out can take up to 90 days here right now.” Cruzan recalls, “As a stop-gap, we put up some antennas. Luckily, my father-in-law is a builder. We got some construction antennas from him, and I had some wireless antennas configured. We put one on our building and one on the school down the road. We were able to borrow their fiber, and that’s how we have internet. We insure the school district and

A Man with a Plan and a Heavy Heart— Kenny Cruzan, IT Manager, GSM Insurors

…“two weeks in, and we’re probably the only insurance office that is in its original building that has power, water, phone, and high-speed internet.”

Kenny Cruzan has been through a lot in the last two weeks. According to his colleagues, it is thanks to Cruzan that they were able to get back up and running so quickly after the hurricane. But it hasn’t been easy. “It’s been a heavy heartache to see all the destruction,” shares Cruzan. “You see it in the movies, on TV, maybe on the news, but it’s different in real life,

With Hurricane Harvey, the main obstacle that emerged for GSM was a communications problem. “We do have a fiber line here,” says Cruzan. “I expected the fiber line to stay up and running because it’s underground. But in this situation, nothing was available after Harvey hit. Later on, we found out that one fiber provider was back

Cruzan

the county, and they both worked with us to share bandwidth. We’re on an outside secure line, totally separate from theirs. The schools are closed right now, so they don’t really need the bandwidth until they can reopen.” One of the first things GSM got back was cell phone service. The three major carriers reestablished

service at different times, and service blinked off and returned at different times. Cruzan says, “Moving forward, we’ll take our understanding of the little hotspots which we found and our understanding of cell carriers’ coverage into consideration. We actually used all three carriers. My advice is to purchase multiple phones from multiple vendors and have them on hand at all times.” “To be able to conduct business, getting electricity was the number one priority,” Cruzan emphasizes, “and we got the generators set up, and the electricity going. Secondly, we worked on getting our computers up and running. Then we concentrated on internet service so we could access our servers and our data in Austin. Once we had internet, we slowly put the pieces back together, getting more bandwidth and a little more functionality as far as phones go. We started calling customers on cell phones once the cell towers were back up. So here we are,” says Cruzan proudly, “two weeks in, and we’re probably the only insurance office that is in its original building that has power, water, phone, and high-speed internet.” n

Winter 2017 | RESOURCES

National Alliance employees show their support for hurricane victims by wearing their “Texas Strong—A Year of Giving” t-shirts.

irst Came Harvey

Great minds think alike. As soon as Hurricane Harvey hit the Texas Coast, Jamie Morgan, CSRM, Licensee Support at The National Alliance, wanted to find some way to help the victims of the cataclysmic storm. Because The National Alliance is the leading insurance education provider in the U.S., she felt that we could express our leadership through personal service. Dr. William T. Hold, CIC, CPCU, CLU, was thinking along the same lines. As President of The National Alliance—headquartered in Austin, Texas—Dr. Hold wanted to make it possible for employees 40 RESOURCES | Winter 2017

to help the hurricane recovery effort in ways that would have the most impact. He quickly approved Jamie’s idea of “Texas Strong—A Year of Giving” when he saw the t-shirt design for what would become a company-wide campaign to aid those affected by the storm. The City of Austin issued a call for its citizens to create “Welcome Kits” that shelter volunteers could give to hurricane survivors taking refuge in Austin after fleeing their flooded or destroyed homes. The kits were to include towels, blankets, hygiene products, and encouraging cards. National Alliance employees donated over $800 for the kits, and Dr. Hold matched the sum.

Employees worked together to assemble a number of Welcome Kits. When the word came that the shelters had enough kits, National Alliance personnel switched gears quickly, buying toys and other items that could keep children Jamie Morgan

Following three devastating hurricanes, National Alliance team members asked: who were housed in the shelters occupied and engaged. The National Alliance “Texas Strong” team bought games, activity books, toys, and Lego building blocks for the youngsters, as well as soccer balls, multi-player card games, and books for older children. The “Texas Strong” team also sent toys and books to the Texas Coast to lift the spirits of children there who have lost everything. In conjunction with Operation Blue Santa, these gifts were shared with charities in South Texas.

Then Came Irma

Just a little more than a week after Harvey, Hurricane Irma wound its way over the Caribbean, glanced off Puerto Rico, and on September 10, made an impressive charge up the Florida Keys and the Florida peninsula. The National Alliance was scheduled to conduct several courses in Texas, Florida, Puerto Rico, and the Virgin Islands in the weeks that followed Harvey’s and Irma’s rampages. Danielle Janecka, Senior Vice President of The National Alliance, remarks, “The National Alliance had a James K. Ruble Graduate Seminar scheduled in Houston, Texas, on September, 14. We were concerned that the event might not happen, because it was so soon after Harvey. People were still dealing with flooding and getting essential services back. We reached out to all registered participants to express our concern and offer help in rescheduling, since getting to the venue might be a hardship. The resiliency of our participants in the affected area was remarkable. The Ruble Seminar was well-attended, and fortunately, all the instructors

“What Can We Do to Help?” were able to make it, as well.” Tanya Deocampo, Webinar Supervisor at The National Alliance, was just as impressed with participants in Florida who were scheduled to attend online sessions in the days following Irma’s passage. “We were in the middle of an Online MEGA Seminar when Irma hit. We had many more live instructorled webinars scheduled during that week,” Tanya says. “Participants in Florida were sent scrambling with the electrical grid down intermittently and internet services interrupted. We had to ensure that they had viable solutions. We kept in touch with them, reassuring them, letting participants with no internet know they could attend by smart phone if that was an option. We shifted some participants to later sessions so they’d still be able to receive credit, or in the worstcase scenarios, we enrolled them in a different program so they didn’t lose their registration fee. Most found some way to attend, whether it was through the smart phone app, which we talked them through, or by physically relocating to a place with a working internet connection (one woman drove to

her brother’s house in a different part of Florida). What amazed me was how committed participants were to attending the MEGA sessions under such difficult circumstances.” “We reached out Anne Mato all registered rie May, CIC, a Regional VP, participants Loss Control, at to express our Amerisure, was one of the Online concern and MEGA participants offer help in that Tanya worked with in Irma’s rescheduling, aftermath. Amerisince getting to sure is ranked as one of the top 100 the venue might Property & Casube a hardship. alty companies in the U.S., and The resiliency of Tampa, Florida, is our participants one of its 12 Core Service Centers. in the affected Anne Marie area was reports, “I had signed up for the remarkable.” Online MEGA course for my CIC update. I was excited to try out the webinar format and the selection of topics, too. Because of my travel

National Alliance employees donated toys, games, and other supplies for children displaced by the hurricanes.

Winter 2017 | RESOURCES

schedule, the online training environment appealed to me. Unfortunately, Irma intervened and power was out at the Tampa CSC office. Employees who did not have issues with power or internet connectivity were able to work remotely to support business operations. However, my power was out from September 9 through September 13.” Anne Marie contacted Tanya Deocampo to report her outage. After her power was restored later that week, Anne Marie was able to sign in successfully, with Tanya’s help, and complete her sessions.

Followed by Maria

Maria’s eyewall crossed the U.S. Virgin Islands as a Category 5 and caused extensive damage to St. Croix on September 19. Hurricane Maria made landfall on Puerto Rico on September 20. The island’s power grid and much of its clean water supply was destroyed. Ninety-five percent of cell networks went down and communication became impossible. Widescale property destruction took place, and many structures were leveled or made unsafe. The National Alliance conducts courses in Puerto Rico, and some had to be postponed because the damage was so severe. The National Alliance has been in contact with Lilybeth Sosa, CISR, PIA General Manager of Puerto Rico and the Caribbean. Her knowledge of needs

in San Jan has been invaluable. It has been a trying time for National Alliance Account Manager, Carol Ripoll, CISR, who was born in Puerto Rico. She shares, “On September 20, hurricane more than ever, I Maria left devastawould like to be tion throughout my there for my fambeautiful island. My ily and country to husband and I are in add my grain of Texas, and we were very worried sand and help with the rebuilding. since all of our family is in Puerto I may live in the U.S., but Puerto Rico. We felt helpless and desperRico will always be my home. I will ate.” Carol continues, “The worst always have a very special bond part for me was communication. with that tiny 100-miles-long-by-35I stayed in touch with my family miles-wide island in the Caribbean. until Maria hit. After that, five days There is nothing in the world quite passed before I heard from anylike it. Te amo Puerto Rico!” one.” Through Ms. Sosa and the Carol was finally able to speak Ripoll family, The National Alliance with her Titi Wanda, who lives “Texas Strong” team has been able in Carolina, PR, and is one of the to monitor the day-to-day situastrongest people Carol knows. To tion in Puerto Rico and expand its hear her aunt’s voice breaking was giving. Employees have gathered hard. Her aunt told her, ‘This is abdonations and mailed two large solutely devastating, care packages to most of the roads San Juan so far, are blocked, and and the donations “This campaign we can’t find any from the staff keep gives added supplies. It is not coming. Children’s the same island that clothing, school meaning to you left.’ “My Titi’s supplies, diapers, what we do at words broke my foodstuffs, batheart into a million teries, fans, solar The National pieces,” says Carol. lanterns, water puAlliance.” She adds. “Now rification systems,

National Alliance employees assembled “Welcome Kits” containing towels, blankets, hygiene products, and encouraging cards.

RESOURCES | Winter 2017

“The worst part for me was communication. I stayed in touch with my family until Maria hit. After Carol that,Ripoll five days passed before I heard from anyone.”

money, and other essentials have poured in. Jamie Morgan is happy that The National Alliance “Texas Strong” team is making a difference. She says, “This campaign gives added meaning to what we do at The National Alliance. We intend to send more packages to Puerto Rico and other areas throughout the holiday season and into 2018, as we continue our commitment to our Year of Giving.” n

Practical, Applicable, and Always Relevant We are pleased to announce the recent enhancements made to the CISR Personal Lines Miscellaneous Course content (effective for all programs beginning September 1, 2017, except those in Puerto Rico and Hawaii). The National Alliance regularly reviews its courses to ensure they are current and technically accurate, and we listen very closely to what our participants and faculty tell us about any areas that may need to be revised. We are committed to ensuring that the course content always remains relevant to current market conditions and has plenty of practical application examples. To give you an idea of some of the recent changes—we’ve added several practical examples for each policy limitation or exclusion for business, recreational vehicle, and watercraft exposures to help participants

Cream of the Crop

When Insurance Business America magazine recently published its 2017 list of top 100 producers (those who had a personal book of business worth $750,000 or more in net commissions), we were proud to note that 28 of these high achievers had earned either the CIC or CRM designation. Three more are pursuing their CIC, nine had attended a Dynamics Series program, and one was a Producer School graduate.

understand how their clients may be affected. We’ve also revised the format of several recap charts—encapsulating and clarifying important information for the exam as well as for backin-the-office reference. And the Definitions and Exclusions sections of the Personal Umbrella/ Excess Liability topic were revised to focus on those that are new, defined differently than other policies, or are important when determining the coverage provided by the ISO Personal Umbrella Liability Policy. We are confident these changes will better equip you with knowledge you can apply when creating insurance and risk management programs for your personal lines clients. And even if you don’t work in personal lines, the information may apply to your personal situation. Look for upcoming dates and locations at TheNational Alliance.com.

Celebrating Success of New CIC Course

We are pleased to announce the success of the inaugural CIC Insurance Company Operations Course, conducted in San Antonio, TX, Sept. 27–29, 2017! A hearty “thank you” and congratulations is due to all who participated in the development of the curricula and faculty, along with all of the content and supporting materials created for this innovative new course. It was well presented and very well received, as evidenced by high ratings from the 73 participants.

On the Lookout:

ISO Personal Flood

Individuals and families whose homes and personal property have been damaged or destroyed by flooding may discover after the fact that their flood policies do not provide the coverage they may have been relying on: • Coverage for increased living expenses when their flooddamaged home could not be lived in • Replacement cost coverage for their belongings (rather than the actual cash value loss settlement) • Coverage for their contents in a basement • Coverage for their other structures such as a shed or garage Be on the lookout for ISO’s Personal Flood program that will include coverage options for the above. ISO announced this summer that individual state filings are anticipated to begin 4th Quarter 2017.

On a scale of 1 to 10, with 10 being highest, please rate the overall quality of this program:.................................................8.43 How likely is it that you would recommend this program to a friend or colleague?...................... 8.56

In 2018, this unique new update opportunity will be offered in classroom format in many cities across the U.S. and in a webinar format later in the year. Learn more details about the CIC Insurance Company Operations curriculum and register to reserve your spot at TheNationalAlliance.com. Winter 2017 | RESOURCES

he National Alliance Research Academy is proud to have the support of these fine organizations—our Research Associates. We invite you and your organization to join this prestigious list! As a Research Associate, your participation helps to direct and fund the projects and publications of The National Alliance Research Academy. You’re contributing 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 are also invited to participate in cutting-edge research projects, conducted by The Academy, documenting the latest industry trends and innovations. Collectively, we help to “raise the bar” for everyone in our industry. 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. New members in this extraordinary group are always welcome. To learn more about the benefits of becoming an Academy Research Associate (including a 10% discount on all Academy publications), contact Carol Crysup, CISR Elite, at ccrysup@scic.com or call 800-633-2165, ext. 6191.

RESOURCES | Winter 2017

HON OR

Academy Rese American Automobile Association, Inc.

American Agents Alliance

Assurex Global

CRC Insurance Services, Inc.

HR&R Intergovernmental Pool Administration, Safety & Loss Control

ISU Insurance Agency Network

PATRA Corporation

Popular Insurance, Inc.

State Auto Insurance Companies

Alabama IIA

IIAB of Arizona

PIIAC

IIA of Indiana

MIIAB

IIAB of Pennsylvania

PIA of Indiana

Missouri Association of Insurance Agents

IIAB of South Carolina

Kansas Association of Insurance Agents

PIA of Nebraska and Iowa

Insurors of Tennessee

O UR

arch Associates Bancorp South Insurance Services, Inc.

Jerry Montgomery Memorial Research Fund

BB&T Insurance Services

Keystone Insurers Group, Inc.

United Valley Insurance Services

PIA of Connecticut

IIA of Kentucky

PIA of New Jersey

PIA of Virginia & D.C.

Bowen, Miclette & Britt

Marble Box

IIAB of Delaware

PIA of Kentucky

PIA of New York State

PIA of Washington/ Oregon

MarketScout, Inc.

Westwood Trust

USI

Florida Association of Insurance Agents

IIAB of Maryland

IIA of North Carolina

PIA of Wisconsin

Brown & Brown, Inc.

PIA of Georgia

Massachusetts Association of Insurance Agents

PIAA of Ohio

McGriff, Seibles & Williams

Zurich North America

IIA of Illinois

Michigan Association of Insurance Agents

IIA of Oklahoma

ADD YOUR ORGANIZATIONâ&#x20AC;&#x2122;S NAME TO THIS PROUD GROUP Contact Carol at ccrysup@scic.com

Winter 2017 | RESOURCES

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

IntheSpotlight Panel Discussion: “What Keeps Insurance Executives Up at Night?”

Trepaney Elected to Board Allison Trepaney, CIC, a Regional Manager with MMG Insurance, was recently elected to serve a three-year term on the New Hampshire/ Vermont American Red Cross Board of Directors.

Photo: Samantha Fehling of Sami Roy Photography

The PIA of VA/DC hosted a CEO panel discussion titled, “Shiver Me Timbers: What keeps insurance executives up at night?” at their 81st Annual Convention and Trade Fair held in Virginia Beach last June. Panel participants included (left to right) Larry M. Shaw, CPCU, of MMG Insurance, Jerry J. Vollmer of Voldico, John G. Lee, CIC, of Lee-Curtis Freeman Graves & Hall, Dr. William T. Hold, CIC, CPCU, CLU, of The National Alliance, and Richard P. Creedon of Utica National Insurance Group. The convention included a conferment ceremony for 28 CICs, 12 CRMs, 15 CISRs, six CISR Elites, one CSRM, as well as an award presentation to Virginia’s Outstanding CSR of the Year.

Hartstein named President

Jim Hartstein, CIC, CRM, of the Insurance Market, Inc., in Laurel, Delaware, has stepped up to become the new President of the Board of Directors for the United Way of the Lower Eastern Shore.

Socia Recognized

USI Insurance Services, LLC, recently recognized their Sales Executive, Michelle M. Socia, CIC, as their Top New Producer.

RESOURCES | Winter 2017

Harrison Honored

Popular and well-loved CIC National Faculty member James T. “Jim” Harrison, J.D., CIC, CPCU, CLU, ChFC, has retired. Jim was named a distinguished faculty member in 2014 and has been a dedicated supporter of The National Alliance for over 40 years, having served in multiple roles, including CIC/CISR Committee member, Ed Consultant, and Academy and CIC Board member. He was part of the inaugural CIC Institute in Austin, TX, in 1969, and was the first CIC Ed Consultant in Florida beginning in 1974. He also served as the Ed Consultant for the IIAB of PA/MD/DE since 1997. The Florida National Alliance Education Committee will grant all future CIC and CISR scholarships in Jim’s honor.

Shanley Receives Award

Robert C. Shanley, CIC, President of Nicholson Associates in Milford, CT, has received the 2017 Jim Goodman Memorial Lifetime Achievement Award.

TheNationalAlliance.com

Winners in Wisconsin

Several National Alliance designees have accepted leadership positions on the PIA of Wisconsin’s Board of Directors. Serving in the 2017–2018 term, Jodi Cordes, CIC, CRM, of A.F. Glass Insurance Center in Lake Geneva, was elected President; Matt Cranney, CIC, CRM, of M3 Insurance Solutions, Inc., in Madison, was elected Vice President; Sean Paterson, CIC, of Robertson Ryan & Associates in Brookfield, was elected Treasurer. Jeremy Cordova, CIC, of Cordova Agency, Inc., in Merrill, and Michael Keener, CIC, of Keener Insurance in Germantown, were both elected to serve three-year terms on the Board. In addition, CIC/CISR Committee Member, Tracy Oestreich, CIC, CPIA, AU, CPIW, of T4 Insurance Solutions in Jackson, was presented the PIA of Wisconsin’s Professional Agent of the Year Award.

Cordes

Cordova

Cranney

Keener

Paterson

Oestreich

Davis to Be a Leader on National Alliance Academic Development Team We’re pleased to introduce our new Director of Faculty Development: Deborah Davis, Ph.D., M.Ed., B.A., formerly of Texas A&M Central Texas. Dr. Davis brings her considerable energy, talent, and educational resume to evaluating, recruiting, and training faculty, as well as her insights to designing content that informs the way insurance and risk management professionals do business day-to-day. For ten years Dr. Davis was an Associate Professor and for the last three years was Department of Curriculum and Instruction Chair at Texas A&M Central Texas. She shares, “I believe in values-driven practices. I want to bring integrity, imagination, and innovation to everything I undertake, whether it is supporting my faculty or creating new curricula.” Dr. William T. Hold, CIC, CPCU, CLU, President of The National Alliance commented, “Dr. Davis brings high-caliber talent, real-world experience, and clear educational objectives to The National Alliance. Her addition to our Academic Development Team allows us to continue to widen the scope and spectrum of our content and the ways in which we deliver it, empowering insurance and risk management professionals to achieve their highest goals.”

National Alliance Designees Represent!

The PIA of New York recently elected four National Alliance designees to officer positions Ferris on their 2017–2018 Board. Jamie A. Ferris, CIC, CPIA, AAI, President of P.W. Wood & Son, Inc., in Ithica, was named President-Elect. Timothy E. Dean, CIC, CRM, President of Marshall & Sterling, Inc., in Dean Poughkeepsie, was elected Vice President. (Not pictured: David L. Sidle, CIC, CPIA, President and CEO of David L. Sidle Agency, Inc., in Montour Falls, was elected Secretary, and John C. Parsons II, CIC, CPIA, AAI, Executive VP of Parsons & Associates, Inc., in Syracuse, will serve as Immediate Past-President.)

Insurance Business America (IBA) has recognized a number of National Alliance designees with honors in 2017. Andrew L. Eagan, CIC, Sales Manager with Eagan Insurance Company, and Sara Von Tersch, CIC, Senior VP of NFP, were both named to IBA’s Young Gun finalists list. Arthur B. Seifert, CIC, CPCU, RPLU, President of Glatfelter Program Managers, and Sharon H. Emek, PhD, CIC, of WAHVE, both made it into IBA’s Hall of Fame. David S. Kauffman, CIC, CPIA, VP of Lechner & Stauffer, Inc., Insurance, Stacey Owen, CIC, Senior Insurance Consultant with PrimeGroup Insurance, and Tamara Knight, CIC, Executive Agent with Esser Hayes Insurance Group, were all named Top Producer finalists. And Denise Johnson, CIC, CISR, President and CEO of IIA of Oklahoma, was named an IBA Woman of Distinction finalist.

Have YOU been “IntheSpotlight”?

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.

Designees Assume Leadership Roles

Eagan

Siefert

Kauffman

Owen

Winter 2017 | RESOURCES

PRSRT STD U.S. Postage

PAID Austin, TX Permit No. 93

The more you know, the more strategically you can grow… Attention Agency Owners, Managers, and Supervisors: For 30 years, the Growth and Performance Standards (GPS) study has been the leading resource for independent agency benchmarks—information that empowers YOU to make strategic comparisons of your agency’s financial and productivity results to those of peer group agencies. The National Alliance Research Academy is now conducting the survey for the 11th edition of the GPS study, and this is your chance to step up and participate in critical industry research that can help you grow your agency! • Use GPS benchmarks to identify positive and negative variances that will inform your decisions about how to improve the performance of your agency. • Specifically compare income and expense averages, productivity standards, balance sheet ratios, and agency profile measures. • The Academy will complete the financial portion of the questionnaire for you, if you wish. • All data from agency financial statements is maintained by The Academy in a totally confidential manner.

WIN a Scholarship! Participate in the GPS survey to be entered into a drawing to WIN one of 20 scholarships, each good for one online CIC or CRM course! (Scholarships are valued at $430 each.)

50% off! Participants are also entitled to purchase one copy of the new GPS study at 50% off the regular price.

Participate in the survey:

surveymonkey.com/r/T2BL5HP