February La Voz by Independent Insurance Agents of NM

With most versions of Adobe PDF there are tabs running along this side. If you click on'PAGES', it will bring up thumbnail pictures of every page in La Voz, allowing you to jump ahead or easily find any page.

La Voz â&#x20AC;&#x153;La Voz is a monthly publication of the Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102. (505) 843-7231. Fax (505) 243-3367. Web site www.iianm.org. This publication is intended to provide accurate and authoritative information on the subject matter covered, but is distributed with the understanding that neither IIANM, nor any contributing author, publisher, contributor or advertiser is rendering legal, accounting or any other professional service and assume no liability whatsoever in connection with its use. Further, the electronic links to our advertisers and/ or contributors found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIANM. News items from members of Independent Insurance Agents of New Mexico and the general insurance industry are encouraged. The advertising deadline is the fifteenth day of the month, preceding publication. Advertising rates are available upon request. Please contact Rachel Sheffield at rachel@iianm.org for details

IIANM Staff President/CEO Thom Turbett, CIC VP Of Membership Services Lorri Gaffney

Features

Click on the title & it will take you directly to that page.

Do You Really Need a New CSR? Strategies to Enhance Agency Performance in 2009 A Sobering Reversal in Small Business Growth 2009 Annual Convention Incentive Marketing Tip of the Week L&H Trends: A Frank Conversation About LTC Insurance Analyzing Attorney Concentrations & Tort Spending Facing Tough Times Big "I" Responds to GAO Report NM Leads Nation in Uninsured Drivers Win an iPod Shuffle! Legislative Mixer Invite Was the Credit Crisis an Unforeseen Event? Farmers Rebrands to Foremost Name IIANM Education Seminar Class Schedule & Registration Seminar Sponsor & Exhibitor Form The Value of Employees IIANM/NMM Scholarship Golf Tournament

03 07 11 12 14 15 16 17 18 19 20 20 21 22 23 27 29 31

Monthly Big I Advantage

Director Of Communications Rachel Sheffield

Industry Tidbits

Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR

Tech Talk

Fraud News & Reviews

Director Of Education Jeff Straight, CIC, LUTCF

Education Edge

February's Clickable Calendar

Receptionist / Member Services Associate Renee Trujillo

Odds n Ends

2008-2009 Officers

Advertiser Index

- Click to view Ad -

American Mining

Chair Angela Vasquez

Burns & Wilcox

Vice-Chair Alma Franzoy-Capron

Colonial General Insurance Agency, Inc.

Market Finders, Inc.

Secretary/Treasurer Kathy Yeager

National Lloyds Insurance Company

NCMIC - Finance Corporation

National Director Patty Padon, AAI, CIC, LUTCF

New Mexico Mutual

Immediate Past Chair Sam Conlee

RPS

Transwestern General Agency

Page 2

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Do You Really Need a New CSR? D

etermining workload capacity and the need for additional staff is one of the most difficult jobs of the supervisor or manager. The decision to hire additional staff must be based partly on objective criteria, as well as subjective criteria. Here are some suggestions for evaluating your agency's need for additional staff:

Is everyone working to capacity already? People always feel overworked, and most of us expand our work to fill the time we have available. A combination of objective data and subjective evaluation must be used to determine workload capacity of current staff. Evaluate current workloads using data. Keep in mind that there are no 100 % foolproof statistics that will tell you when people are working to capacity. A job is more than numbers. Statistics are best used for comparison purposes between people performing the same job. Also, the best statistics are generated in-house over time, not borrowed from a survey or another agency. Data measurements of workloads can involve the number of accounts serviced, number of automated transactions, volume of commissions handled, account retention rates or any activity captured by the automation system. The same data may not be meaningful for different positions. For instance, number of accounts serviced is a better measure in personal lines than in commercial lines. Again, a comparison of data among employees may be the best approach. This type of report is helpful especially in determining who is rounding accounts and who is not. But the data may not tell the whole story. A particular CSR may be overburdened with non-standard business or walk-in applicants. Data should always be questioned for plausible explanations of the results. Data collected in surveys outside the agency may be helpful in determining overall agency performance, but has limited utility in evaluating the performance of individuals. If anything, such data offers a beginning point for determining the data you want to capture in your own operation. One good source is the IIABA Best Practices Study. The data can be obtained on-line at no charge. Note that this study measures volume of commissions handled by CSRs and allocates their time to different account activities. Separate data is provided for personal and commercial lines. Evaluate current workloads subjectively. Data will never replace your responsibility to monitor the activities of your employees. Even without the numbers, you can probably identify the hardest working and most effective employees in your agency. However, a more formal system for exercising your judgment will provide a better basis for evaluations and merit pay increases. One way to evaluate workloads subjectively is to interview those who interact with the employee to determine their opinions. This activity also identifies communication problems that can result in poor customer service. You can interview producers, managers and company personnel who work with the individual. Page 3

Another method is through audits of the employee's work. It is best to use a form that will provide some comparisons between employees. Your goal in auditing work output is to compare the employee with an average you have in mind. With changes in automation and personnel, that average may change, so that auditing should be a regular activity. Be sure employees know that you are auditing their work and how these audits benefit the agency. During the audit you are looking for work output that indicates that the employee is managing accounts, not just policies, generating revenues, not just pushing paper and that they are enhancing the agency's image with customers by providing efficient, timely service. Workload evaluation is one way to determine if your agency has excess capacity, and may not need additional staff.

Can reorganization increase capacity? Sometimes old methods of organization don't serve the current environment in which people work. For instance, automation has radically changed our workflow and interactions with people. If you still split your account service using the alphabet, you may want to consider the efficiencies associated with other account organization, such as: - new accounts vs. renewals - account size, with designated persons working on largest accounts - geographic location of the customer - rotational service based on when the call comes in The last method of servicing accounts is being used with more regularity in personal lines. Customers calling into the agency to make some change to their insurance are given to the first CSR available, who makes the change in the computer. Rotational servicing saves time and has even allowed some agencies to cut back on the work force and focus on full staffing during peak hours. Account service can also be organized by function resulting in some economy of work force. For instance, it may be time to consider a separate claims department or marketing department in commercial lines. Account development could be assigned to one group of people who pursue account changes at renewal. continued.....

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Hold producers to higher standards. Sometimes account service staff assume responsibilities typically belonging to producers. CSRs who are very good at working with customers, and knowledgeable about coverages, tend to catch a lot of work from producers who are trying to focus on new business. As manager, you don't want to kill the incentive to producer business, but you want to be sure that sales expenses don't end up being paid as office overhead. Clearly defined roles of CSRs and producers may eliminate the need to hire additional administrative staff. In the interests of fairness and E&O loss control, the services provided by CSRs to producers in the office should be a matter of office policy and not up to each producer to decide. Upgrade automation. In recent years, automation has had a big impact on office efficiency. One CSR estimated, several years ago, that a simple computer upgrade to an internal fax capability saved her two to three hours a week. What efficiencies are you missing out on by putting off that computer upgrade? Do you need to make a more aggressive attempt to collect customer e-mail addresses? Have you implemented upload and download with all your companies that have that capability. Get your staff involved in ways to improve efficiency with better utilization of the computer.

Consider how training might improve efficiency and/or revenues. People avoid what they don't know and focus on what they do know. If a CSR doesn't understand umbrella applications, he or she won't quote umbrellas. People who are not comfortable with their people skills will avoid confrontations even at the expense of a customer. Training increases confidence levels and decreases barriers to effective and efficient work. For some employees additional training on the agency management system could result in a huge savings of time. You can assess the training needs of each employee and construct a meaningful education program aimed at agency goals. Refer to our Training Needs Checklist for a method of determining training needs.

The Training Needs Checklist is also located on our web site, under "Member Resources", "Agency Business Resources", "Management".

Source: IIAT InfoCentral

We’re Serious About Our Relationships When it comes to premium financing, we take our business seriously at NCMIC Finance Corporation. And it starts with the relationships we build. We understand that one size does not fit all when it comes to premium financing. That’s why we spend time understanding exactly what you and your insured need before offering solutions. At NCMIC Finance Corporation, you’ll work personally with our experienced staff who will provide: • Premium financing that meets and exceeds your customers’ expectations • Custom solutions – even for smaller insureds or niche markets • Flexible plans that can include reduced down payments and extended terms • State-of-the-art software, next-day funding and web-based account management • Credit Card Processing also available for your agency and your insureds business • Online payments for your customers

Contact Lisa Logan or Roger Miller at

1-800-600-9250

Discover for yourself what makes NCMIC Finance Corporation different from the rest. You’ll realize that we don’t just talk about building great relationships – we do it.

www. nfcfinanc e. com

WWW.AMERICAN-SUMMIT.COM WWW.NATLLOYDS.COM

WWW.NATLLOYDS.COM WWW.AMERICAN-SUMMIT.COM

gvanek@natlloyds.com ckirk@natlloyds.com

fcarr@natlloyds.com rjames@natlloyds.com bpage@natlloyds.com

klauritzen@natlloyds.com dwharton@natlloyds.com

For a full description of the products highlighted on this page, click on:

www.bigimarkets.com

IIABA and IIANM are ideally positioned to create an electronic bridge between product providers and independent agencies. IIABA has the technological expertise, systems and industry contacts; IIANM has local marketing and educational ability, as well as close relationships with agents. Together IIABA and IIANM can bring product providers to agents’ desktops and make agents aware of what products are there and how to take advantage of them. You will need to log-in in order view more information. Please contact Rachel for your log-in information.

Did You Know?

Eagle/Travelers/Personal You are just a few steps away from gaining full access to Travelers portfolio of personal lines products. If you qualify, you will have the opportunity to become an approved member of the Eagle Agency, the Big "I" program designed to help smaller agencies gain access to a brand name carrier with minimal production requirements. Once your agency reaches a premium volume of $300,000, you have been in the Eagle Travelers program at least three years and have maintained an acceptable loss ratio (at the sole discretion of Travelers) your agency will have the opportunity to "graduate" to a direct contract with Tavelers.

What is Eagle Agency? Eagle Agency is a program created exclusively for IIABA members. It gives Big "I" member agencies easy access to top-rated companies with low volume commitment and light fees. This program fosters agent development of personal lines products and can lead to a direct company appointment based on volume and loss ratios. Member agents receive access to online underwriting information including: motor vehicle reports, CLUE reports and insurance scoring. Online Company access also is provided so risks may be underwritten and bound in the Eagle agent's office. There is no charge for this, with the exception that there may be a charge for a larger than normal number of MVRs under the "Report Shared Cost Policy." (see Addendum to the Big "I" Markets SubProducer agreement below). Eagle agents retain ownership of all the business placed through Eagle Agency. After a three-year involvement with the Eagle Travelers program, if the book of business is large enough and profitable, Eagle agents will have the opportunity to receive a direct contract with Travelers. Eagle Agency offers competitive commissions on new and renewal business. Commissions equate to approximately 10 percent.

Your time and money are important, so we are finding ways to help you save both. IIANM is proud to support our members and has teamed up with FedEx to help boost your bottom line. As a IIANM member, you are now eligible to receive valuable discounts of up to 26% on select FedEx® shipping services. Best of all, there are no costs and no minimum shipping requirements to take advantage of this great new member benefit. IIANM members can now save: - Up to 26% on select FedEx Express® U.S. services - Up to 20% on select FedEx Express international services - Up to 12% on select FedEx Ground® services - Up to 10% on select FedEx Home Delivery® services Click here and enter passcode ZFT3SF to start saving now. If you have additional questions, please call 1-800-MEMBERS (1.800.636.2377, 8 a.m6 p.m. EST, M-F) to speak to a dedicated member representative. Within 7 -10 business days of your enrollment, you should receive a Welcome Kit from FedEx which contains detailed information about your shipping rates. Once you have enrolled in the FedEx savings program, your discounts will automatically be applied to your FedEx account number and you can enjoy these great savings every time you ship. *FedEx shipping discounts are off standard list rates and cannot be combined with other offers or discounts. Shipping discounts are exclusive of any FedEx surcharges, premiums or special handling fees and are not available to package consolidators. Eligibility for discounts subject to FedEx credit approval. Eligible services subject to change. Base discounts on FedEx Express® 15-21%. An additional 5% discount is available for eligible FedEx Express shipments when you ship online at fedex.com. Discounts are subject to change.

Click here for the full details.

Click here to see a list of all our non-insurance products and services member benefits.

Page 6

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Enhance

Strategies to

Agency Performance in 2009

Agencies can improve business by maximizing their resources

nsurance companies constantly strive to improve by focusing on the right people and developing them to take on multiple responsibilities. In this tough economy, making the most of company resources has become more important than ever. But as each year progresses, it's easy to fall back into old habits and make poor performance decisions. In looking ahead to 2009, resolve to focus less on past performance issues and more on how to improve and make the most of what you have. Here are some resolutions to enhance the overall performance of your agency: 1. Make more accurate personnel decisions. In the war for talent, obtaining the best insurance employees is not an easy task. In today's economy, insurance companies are looking to expand job descriptions and utilize resources to the fullest extent. Ensuring you have the right people capable of taking on that challenge will help you make more cost-effective decisions. • Determine the competencies and key skills required to do the job effectively. • Develop a detailed job description that is accepted and agreed upon. • Create a structured interview process that utilizes an in-depth personality assessment to help you determine whether a person would fit in with your insurance company's culture. 2. Build the most productive team. Even if you have productive employees, they may not work together in the most meaningful way. You want to make

Page 7

sure your team members understand each other, learn how to resolve conflicts more constructively and play to their strengths. • Analyze the personalities of your team and see where potential clashes could occur. • Participate in team-building exercises and development programs to help your team play to its strengths and work on areas of limitation. • Engage in conflict resolution techniques. 3. Identify and develop top performers for key positions. Part of being an effective manager is knowing what drives your employees so you can help them reach their full potential. By understanding individuals' strengths and motivations, you can help create a customized, in-depth developmental plan for your agents, customer service representatives and salespeople. • Focus on what else your insurance employees can do for your company by looking at their potential and delegating new responsibilities. • Look within your company for promising agents and representatives who have displayed leadership skills but are currently in other positions. • Incent top performers and recognize achievements. • Replace fear with confidence during difficult economic times by serving as a sounding board for employee concerns and helping ease tension within the workplace. Patrick Sweeney is president of Caliper, a global human resources consulting and assessment firm.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Challenges and Opportunities Ahead The Insurance Journal has produced a series of interviews on the topic of "Managing an Agency in a Troubled Economy". InsurBanc's chief lending officer, Robert Pettinicchi, is featured in this three part series that is now being aired on Insurance Journal TV. The segments are intended to provide insurance agencies tips and information on how to navigate their agency through these turbulent financial times. Click the following links: Managing an Agency in a Troubled Economy: How Agents Can Get Credit When They Need It Smart Cash Management Pays Off An Agency's Best Investment Acuity to Add New Mexico Coverage for Independent Agents Acuity of Sheboygan, Wis., announced it will begin writing business in New Mexico. The expansion into the New Mexico marketplace is planned for mid-2009. Acuity is a property and casualty insurer that operates in 18 states, writes $800 million in premium through 900 independent agencies, and manages $2 billion in assets.

Join your peers on Capitol Hill for the Big "I" Legislative Conference & Convention. The Big "I" Legislative Conference & Convention will be held April 30-May 1 in Washington, D.C. and we want you to attend! This is the premier event for independent agents offering a chance to visit your state legislators and educate them on issues important to the independent agency system. The bipartisan lobbying team will brief you on insurance regulation, agent licensing reform, natural catastrophes, health insurance distribution and taxes before you join your peers on Capitol Hill to meet with legislators. The Big "I" knows the economy is on everyone's mind and will address challenges and opportunities head-on at the general session. Stephen Dubner, rogue economist and co-author of the New York Times bestseller Freakonomics, will show you how economics is the study of incentives, or how people get what they want or need when others want or need the same thing. The state of the insurance industry and the association will also be addressed by Big "I" Chairman Brett Nilsson and by a CEO panel. Topics of discussion will include the national economy, the property-casualty underwriting cycle, technology and other opportunities and challenges for the independent agency system. The insurance carrier CEO panel, moderated by Big "I" President & CEO Bob Rusbuldt, will include: Ramani Ayer, CEO of The Hartford; Ted Kelly, CEO of Liberty Mutual; Glenn Renwick, CEO of Progressive; and Bob Restrepo, CEO of State Auto. V Visit www.independentagent.com for up-to-the minute scheduling information. Register early and save 10% on registration fees by using the code EARLY09 at checkout.

Property/Casualty Payouts Hit $25B in 2008 New Mexico Legislature Weighs Insurance Fraud Bills Source: Insurance Journal

The New Mexico Legislature is evaluating two insurance fraud bills this session. Both SB 117 and SB 118 were introduced by Republican Sen. Carroll H. Leavell. SB 117 would allow courts to aggregate six months of false insurance claims when determining the penalty. According to bill text, if the agent, broker, solicitor, examining physician, applicant or other person's fraud results in a potential loss to the victim insurer, $250 or less is considered a petty misdemeanor; more than $250 to $500 is considered a misdemeanor; more than $500 to $2,500 is considered a fourth degree felony; more than $2,500 to $20,000 is considered a third degree felony; and more than $20,000 is considered a second degree felony. "If 10 or more fraud violations occur within any consecutive six-month period, the amounts of purported or potential losses resulting from the violations may be aggregated to determine the penalty," bill text states. SB 118 would expand the crime of racketeering to include false application, claim or proof of loss with respect to insurance. Page 8

U.S. property/casualty insurers are expected to pay out $25.2 billion in 2008 property losses, the fourth highest annual total in a decade, according to new data released Tuesday from an industry group. The 37 catastrophes, defined as events with $25 million or more in insured property losses, include hurricanes, severe weather, winter storms and tropical storms, said the Insurance Service Organization's Property Claim Services Unit (PCS). Hurricanes caused the largest amount of loss, currently estimated at $13.3 billion in insured damage. Severe weather events -damaging winds, large hail, tornadoes, and flooding -- caused an estimated $10.5 billion. Winter storms caused $1 billion in losses, and two tropical storms caused $300 million. The state of Texas far surpassed all other states with $10.2 billion in insured losses. Louisiana, Minnesota, Ohio, and Georgia rounded out the top five with losses ranging from $1 billion to $2.2 billion.

BIG "I" Urges President Obama To Focus On Regulatory Problems And Not Abandon What Works Click here to view the letter that the Big "I" dispatched to President Obama.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Keeping Track of Miscellaneous Stuff Your brain may be forgetful, but a Personal Information Manager isn't.

by G. Barry Klein

Stuff. Miscellaneous data- it's the digital flotsam and jetsam of our electronic lives. We need to keep track of it, and we can't trust our memories to do it.

Phone numbers You have an electronic address book, right? Statistically speaking, you probably use Outlook. Additionally, you likely have a built-in address book in your cell phone, which probably (hopefully?) syncs with your computer's address book. Yet, if you kept every phone number you ever used or came across, your address book would soon be so bloated that it would become useless. So, where would you keep a phone number that you may not need for another year or two? Passwords, receipts Do you use a password manager, such as Roboform on a PC or 1Password on a Mac? Great' but where do you store the ID and password for your password manager? On Web sites, you can't always rely on the everpresent "Forgot your password?" link, because you're out of luck if it asks for both your username and e-mail address and you can't remember both, exactly. And what about IDs and passwords that are not Web-based, and maybe not even digital? In addition to passwords, what about receipts? We get receipts for the physical things we buy, as well as for any piece of software or service we sign up for. Keeping track of it all So, how to you keep track of miscellaneous - so-called "unstructured" data? Programs that help you keep track of digital stuff are generically called Personal Information Managers (PIMs). These programs have been around almost since the beginning of the personal computer. I've been keeping track of digital stuff, electronically, since the 1980s, but I actually have paper versions going back to the 1960s. The current product that I use on my dayto-day Mac is called Yojimbo. It's always up in a window, and I'm in and out of it 10-20 times each day. There are now Web-based PIMs, in addition to the many established computer-based programs. Below is one Web, one PC, and one Mac recommendation, followed by some ideas and suggestions on usage, but you can find many others by simply doing a Google search for "personal information manager" (use the quotations in your search). Evernote The newest class of PIMs is Web-based services. If you haven't yet tried and signed up for a free Evernote account, I recommend it. You'll have a lot of fun with it. Steve Anderson reviewed it a few months ago, and it is growing rapidly, with rave reviews. It makes a great addition(but not replacement) to a computer-based, heavy-duty PIM. In addition to the limited free version, Evernote offers a paid, enhanced service. There are also downloadable desktop versions for PC, Mac, iPhone, and Windows Mobile. If you have two or more versions, they sync over the Web. The most unique feature is the ability to drag-and-drop photos, Web sites, PDF files, and more into Evernote. Evernote will also do Optical Character Recognition (limited, but works reasonably well), which allows you to search for words in the photos as well as the text you've typed or imported. Want to remember that particular bottle Page 9

of wine? Just snap a photo of the label and drop it into Evernote. As handy as Evernote is, it's a lightweight application. I use it, but only as a convenient way to store photos of things I want to remember. I wouldn't put any critical data into it, because 1) it is Web-based (read: inherently insecure) and 2) it doesn't support encryption. Even with Evernote, you should seriously consider a disk-based, heavy-duty PIM. Info Select 7 and Yojimbo For your desktop and/or notebook computer, I use and recommend Info Select 7 for a PC and Yojimbo for a Mac. Info Select has been around for more years than I can count, originally as Tornado Notes in its DOS version (am I dating myself?). Although still lightning fast, even today it retains some of its older look and feel. There are, frankly, probably very good and more modern competitors. Still, I keep Info Select and renew the $50 annual license for updates, simply because I have so many years of miscellaneous data in it. (I've been a Mac user for several years now, but every Mac I have still runs Windows XP Home, so I can quickly and easily find old data, if I need it.) Note: If you're running Windows on multiple machines, you might want to search for a PIM that does automatic syncing; I have to sync Info Select manually. For the last few years, all my miscellaneous data - a prodigious amount goes into Yojimbo, which is exclusively a third-party (not made by Apple) Mac product. Like Evernote, it lets me drag-and-drop PDF documents, photos, and Web pages into it, although it does not do OCR. Most importantly and this is critical - it allows you to encrypt entries. Do not consider any PIM for your primary usage unless you can encrypt individual entries. Creative uses So, what are some of the creative ways you can use a PIM, in addition to storing all the miscellaneous data that doesn't fit into your agency management system? Sensitive data - In my case, I store credit card information for almost all of my clients. In your case, you might store Social Security numbers, driver's license numbers, and birthdates: the holy trinity of identity theft. Workarounds - How many times have you searched and scrambled to solve a "unique" problem, such as an obscure function in Excel, and said, "Wow, I'll sure remember this next time," only to have to do it again five months later? You solved it before, but now don't remember how. Each time I solve a problem like that, I make an entry in my PIM that starts with "How to." (Examples: "How to have a hyperlink that isn't blue and underlined" and "How to back up Google Gmail") Personal profiles of important people - Remember Harvey Mackay's 66-question customer profile form? While I've never come close to getting all 66 items about a customer, my PIM is a good place for me to accumulate bits of information about business associates. My brain is terribly forgetful, but my PIM isn't.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Underwriting and Brokering from our Scottsdale, Seattle, Casper, and Boise locations Accounting and Claims handled from our Scottsdale location Proud Members of AAMGA, NAPLSO, PLUS and Various State Independent Agency Associations Excellence in Service Relationship Driven

Property Programs General Liability Professional Liability Excess & Umbrella Transportation Inland Marine Garage Liability & Physical Damage Personal Lines

AND MORE! Become an RPS Broker!

Call our Marketing Directors at 480-860-5555

www.RPSins.com/scottsdale

Strength of a National Network Providing Local Expertise

8700 East Northsight Blvd., Suite 100., Scottsdale, AZ 85260

www.RPSins.com/scottsdale www.RPSins.com/scottsdale

A Sobering Reversal in

Small Business Growth

Independent agencies are diversifying business, focusing on sales to cope with growth challenges.

recent survey by the National Small Business Association (NSBA) indicates a rough road ahead for the growth of small businesses. Independent agencies are responding to a national downward trend in small business revenue by diversifying their books of business and ramping up sales.

is a major provider of marine coverage and insures the 475-member Maine Lobstermen's Association. However, the agency also offers a variety of personal and commercial lines products which it markets to its loyal marine customers as a way to diversify and build business.

The NSBA survey reveals a complete reversal in business growth between August and December 2008. In August, 48% of small businesses reported revenue increases and 30% cited decreases, while in December those numbers were essentially reversed at 38% and 45%, respectively. Whereas 57% of those surveyed in August expected their businesses to grow in revenue in the next year, only 31% projected growth when asked the same question in December.

Keith Kaetterhenry, president and owner of Baer Insurance Services, LLC in Madison, Wis., also believes a diverse book of business is essential to continued agency growth. His agency is projecting 14% growth in the coming year and saw 11.4% growth in 2008, only slightly below its original goal of 12-13%. Kaetterhenry attributes this success to the wide variety of products offered by his agency.

Due to the soft market, many independent agencies already experienced revenue challenges prior to last summer and did not see the fluctuation in profits that has affected other small businesses in the last six months. Mark Gandolfo, operations manager of Smithwick & Mariners Insurance, Inc. in Falmouth, Maine, says his agency's growth outlook has not changed much since August' revenue is still projected to be flat or up only slightly. "Costs are continuing to rise, and just maintaining the agency puts a damper on profitability," says Gandolfo. "We are also finding that customers are eliminating some insurance coverage to save on premiums."

Indep e

nden

t Insu

rance

Agen ts of

New M

exico 1511 U Albu niversity quer que, Blvd. N NM wk: E (5 8 fax: 05) 843 7102 (505 -72 iian ) 243-3 31 m@ii 367 www anm.o rg .iian m.or g

Gandolfo's agency is responding to growth challenges by stepping up production and relying on its existing customer base. Smithwick & Mariners

"You want to be knowledgeable in every area, but if you get your book of business too heavy in one area, you could struggle in today's market," Kaetterhenry says. Both Gandolfo and Kaetterhenry emphasize the importance of a single factor to business growth - hard work. Gandolfo says his agency is constantly on the lookout for the best products and has committed itself to excellent customer service, while Kaetterhenry views prospecting new clients as key to his agency's success. "This marketplace requires more activity," says Kaetterhenry. "We're always looking to increase revenue, but it's not going to happen sitting still." Veronica DeVore (veronica.devore@iiaba.net) is Big "I" writer/editor

â&#x20AC;&#x153;Today I Will Broaden My Career In Insurance.â&#x20AC;? Now you can increase your technical knowledge and show professionalism by working on an insurance designation. IIANM offers convenient professional designation programs that keep independent agents on the leading edge:

Turn Your Career Goals Into Reality!

For more information, please visit us here.

Accredited Customer Service Representative

Page 11

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

2009 Annual Convention We would like to encourage as many people as possible to attend the celebration of our 75th Anniversary at the Inn of the Mountain Gods in Ruidoso, NM on October 1st and 2nd, 2009. As an added incentive and to thank our loyal members, we have budgeted money to pay for one full convention registration for each member agency, as well as every past Chair and Lifetime Achievement award winners.

Please fill out this form and get it back to us as soon as possible: YES! I will attend IIANM's 75th Annual Convention, October 1-2, 2009. I will commit to registering for a hotel room at the IIANM corporate rate in return for one complimentary registration to the convention. I understand that the registration does not include golf. (This is over a $300 value)

Name: Agency: Date:

Return to: Lorri Gaffney - Fax: (505) 243-3367 or lorri@iianm.org

Denim&

Diamonds Page 12

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

www.colonialgeneral.com

Colonial General Insurance Agency, Inc. Founded in 1985, Colonial General Insurance Agency, Inc. is a wholesale General Agency providing quality insurance products to the Independent Insurance Agent. Colonial General specializes in both standard and non-standard business, and writes Property and Casualty business including Commercial Auto, Commercial Contract, Personal Lines, and Professional Liability. With 2,500 active producers under contract, Colonial General operates in eight states throughout the southwest with offices in Murray, Utah and Scottsdale, Arizona. Most of all, we pride ourselves in our friendly customer service and our ability to help our producing agents with their many insurance needs.

P.O. Box 14770 Scottsdale, AZ 85267-4770 8475 E. Hartford Drive, Suite #100 Scottsdale, AZ 85255 Phone: (480) 991-7889 Wats: (800) 848-8860 Fax: (480) 948-1394 www.colonialgeneral.com www.colonialgeneral.com

Commercial Lines/Brokerage Department • Preferred BOP

• Property

• Inland Marine

• Professional Liability

• Commercial Liability

• Workers Compensation

Avoid monthly or annual membership fees, use Colonial General for your Preferred Business Owners Policies. We have several markets available to give you the best quote. For additional information contact your underwriter.

Transportation Department • Truckers

• Physical Damage

• NB Mexican Truckers

• Local Radius

• Garage

• Intermediate Radius

Please contact our Utah office for all your Transportation needs. P.O. Box 571770, Murray, Utah 84157 (801) 562-1188 *Wats: (800) 594-8900 Fax: (801) 562-2218 * Toll Free Fax: (800) 332-9285

Personal Lines Department • Masterpiece Company

• Standard Company

• Umbrellas

• Stand-alone Liability

• Vacant

• Seasonal

• Dwelling Fire

• Homeowners

Preferred Commercial Lines Division

You will never pay a fee to access our companies. No volume or binding contracts. Contact John Weber at (800) 848-8860 x278 for additional information.

Marketing Tip of the Week:

Understanding the decision to shop renewals J.D. Power's research significant to E&O purchases. J. D. Power & Associates recently conducted a study on consumer motivations for personal automobile insurance purchasing decisions. The study addressed brand awareness and shopping incidences across the country and examined those who shopped and switched carriers versus those who shopped and remained with their incumbent provider. While the study addresses personal lines purchases, a lot can be garnered from this research applying to your members' purchases of insurance agency E&O insurance. The next few Insurance News & Views State News "Marketing Tip of the Week" articles will share some insights from this research with emphasis on what can be applied to our agents' lines of business.

As the graph from J.D. Powers & Associates indicates, it is not uncommon for satisfied policyholders to obtain quotes for alternate programs. The encouraging news is that of the 34% who sought competitive quotes, 20% remained with the carrier, along with the 64% who were satisfied enough to renew without shopping their coverage. For state associations, this reinforces the need to provide service superior to all others to keep the â&#x20AC;&#x153;non-shopperâ&#x20AC;? bucket as large as possible.

Page 14

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

L&H Trends

A Frank Conversation about

Long-Term Care Insurance

Involving dependent family members can make addressing difficult issues easier.

ne of the most difficult aspects of being an insurance professional is educating customers about the financial realities of unfortunate life events. Whether the discussion centers around what happens when an uninsured or underinsured motorist seriously injures you or what kind of standard of living dependents will have in the event of the customer's premature death, it can sometimes be an awkward issue. However, as financial sales professionals have learned, rather than trying to sell a product, it is better to begin the conversation with, "Have you considered what would happen in the event of your death, disability, etc.?" Quite often the response is a vague answer, such as, "Social Security, or my company life insurance or disability insurance." Seasoned financial services producers know that when an individual is unwilling to have an honest discussion about these types of possibilities, it is often useful to have an interested party involved, such as a spouse. Long-term care insurance may be the most important topic in which to include a spouse. First, despite all of the discussion in the media, there are still many people who believe Medicare covers long-term care needs. Second, those who know Medicaid is the government program that provides benefits may not know the income and asset criteria that must be satisfied in order to qualify for benefits. In instances where the customer does not want to consider the topic in a meaningful way, it's important to have his or her spouse there as well as any adult offspring who may one day provide long-term care.

Page 15

The discussion should also include the following statistics: • About 44.4 million Americans (21% of the adult population) act as caregivers. • An estimated 17% or 18.5 million households in the U.S. contain at least one caregiver who provides care to someone age 50 or older. • 83% of caregivers are related to their care recipients. • A typical caregiver is female (61%) and spends an average of 20 hours or more per week providing care to someone age 50 or older. • The average age of all care recipients older than 50 is 75. • More than half of care recipients (55%) live in their own homes. • More than nine out of 10 care recipients age 50 or older take prescription medication. A more inclusive conversation with the prospect's dependents will quite often result in a difficult dynamic and outcome. When money is an issue in purchasing long-term care insurance, the adult children may be quite open to helping to pay for the coverage. When the client has significant means to pay the premium, but is unwilling to, point out that Medicaid will only pay after assets are "spent down" and can also lien the estate at the time of death to recover paid. Many times the adult children may be hoping for some inheritance for the grandchildren's college expenses. Having meaningful LTC protection can allow affluent individuals to make lifetime gifts to pay for college expenses. Independent agents need to have these types of conversations to help their clients achieve meaningful objectives - and they'll thank you for doing it.

Dave Evans (dave.evans@ iiaba.net) is a certified financial planner and IA l-h contributing editor.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Analyzing Attorney Concentrations and Tort Spending More lawyers means more spending.

ecently, Insurance News & Views looked at the dramatic difference between the United States and other economies with respect to the cost of pursuing litigation and payment of damages. One of the factors reviewed was the concept of "loser pays." Another important factor driving legal spending could be described as "build it and they will come" or, in this case, "legally educate and people will sue." As shown by the graph below, the U.S. stands apart from other developed countries in per capita spending, at $992 per person, and in the number of attorneys per 100,000 people at 378. This compares to a sample of Western European countries where tort spending per capita is significantly less and where the number of lawyers per 100,000 people is 1.5 to five times fewer than in the U.S.

The correlation between tort spending and the number of lawyers appears very strong. Insurance agents might also be interested that, based on the recently completed Agency Universe study, the U.S. has about 112 independent agents per 100,000 people compared with over 3.5 times as many attorneys. With law schools in the U.S. increasing by an average of a 1.25 new schools per year and nearly 45,000 law school graduates each year, tort liability reformers are watching the situation closely. The new Obama administration combined with a democratically-controlled Congress could result in new avenues for litigation, and litigation is predicted to be on the rise as evidenced by a recent Wall Street Journal editorial entitled "Trial Lawyers Bonanza, Off and Suing with the 111th Congress." Paul Buse (paul.buse@iiaba.net) is president of Big I AdvantageSM and a licensed p&c agent.

Page 16

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

FacingToughTimes Jobs data confirms payroll downturn, agency staffing challenges.

he latest numbers from the U.S. Bureau of Labor Statistics come as no surprise to independent agencies facing significant payroll and staffing changes. The data shows insurance industry payrolls have decreased in four of the past five months, with agent and broker jobs down 1% since Nov. 2007. A recent survey by The Conference Board confirms that payrolls have been on a steady downslide and are not expected to improve in the near future. Approximately 36% of survey respondents in the insurance industry say they made changes to their salary increase budget as of Oct. 2008, and 67.4% of respondents who made changes say their decision was due at least in part to the financial crisis. Robert Padula, CEO of Gencorp Insurance Group Inc. in Greenwich, R.I., says his agency had to lay off 5% of its staff in late 2008 and is heading into 2009 with a flat salary budget. Instead of waiting out the storm, Padula's agency is implementing aggressive changes to its business model and book of business. "We went through a re-organization and changed a business model we've been using for over a decade," says Padula. "That led us to a more productive model requiring less staff. We are also focusing more on the mid-market commercial lines area, which is more productive than our previous focus on small commercial lines."

Kathy Zack's agency has also overhauled its budget in recent months, cutting everything from advertising to kitchen supplies. According to Zack, president of Cornish, Zack, Hill & Associates, Inc. in Southfield, Mich., the agency has been able to keep all of its 20 staff members by reducing hours and cutting payroll by 15%. Some aspects of Zack's agency's employee budget were purposely left intact to maintain high levels of service and performance. "We have not discontinued good morale programs for employees, and we've kept a very solid community spirit," says Zack. "A staff that cares about each other is more willing to take a pay cut than watch co-workers walk out the door." If there is a silver lining to the payroll downturn, it lies in the larger talent pool now available to those who are hiring. When his agency was in a position to add staff recently, John Robins, co-owner of Robins Insurance Agency in Richmond, Va., says he had more experienced candidates available because of layoffs at other agencies. "We're now better staffed with better people," says Robins. "Good people are always in demand, even in a downturn. Our employees are our most valuable resource." Veronica DeVore (veronica.devore@ iiaba.net) is Big "I"writer/editor.

" I started my own business selling good luck charms to all of the unemployed people in the park." Page 17

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Big "I" Responds to GAO Report on Financial Regulatory Reform Report fuels OFC debate.

he U.S. Government Accountability Office (GAO) recently released a report providing a suggested framework for modernizing the U.S. financial regulatory system. The GAO released this report to help policymakers better understand existing problems and to assist them as they craft and evaluate reform proposals. The report's outline for evaluating regulatory reform proposals discusses insurance only in passing, but proponents of an optional federal charter (OFC) seized upon the GAO's brief mention of OFC as support for their cause. However, even a cursory reading of the report finds that the GAO does not recommend that OFC be debated but only says that it could be considered by Congress. The Big "I" firmly believes that once OFC is studied fully through the prism of the recent financial services market turmoil, it will be clear that it would only promote a race to the bottom and result in haphazard deregulation to the detriment of consumers. The Big "I" therefore believes that a comment

Birmingham, AL 35266-0847

(800) 448-5621 www.cghinsurance.com www.cghinsurance.com

in the GAO study that there could be 'unintended consequences for state regulatory bodies and for insurance firms as well' from such a system is fair warning that an OFC would create many more problems than it would allegedly solve. IIABA believes that during the consideration of regulation reform, policymakers must recognize that there are areas where existing regulatory regimes have and continue to work well for both consumers and the marketplace. Specifically, the state-based system of insurance regulation, while in need of targeted reforms, has served both consumers and the market well, particularly in comparison to federal regulation in a number of other industries. As the reform debate heats up, IIABA will continue to fight against efforts to create OFC and instead will work in support of tangible efforts that would improve state insurance regulation. Margarita Tapia (margarita.tapia@iiaba.net) is Big "I" director of public affairs.

Nobody Knows the Mining Industry Better!

Workers’ Compensation

Rated A- (Excellent) by the A.M. Best Company

Page 18

S AND & G RAVEL P ITS • L IMESTONE Q UARRIES R OCK Q UARRIES • C OAL M INES O THER T YPES OF M INING Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

New Mexico leads nation in UNinsured drivers; numbers likely to rise amid recession

study released Wednesday by an independent property-casualty insurance research group says the recession will likely trigger a sharp increase in uninsured motorists on U.S. roads by 2010.

The study found a strong correlation between the percentage of uninsured motorists and the unemployment rate. Based on current national unemployment rate projections, the study says, the percentage of uninsured motorists is expected to rise from 13.8 % in 2007 to 16.1 in 2010.

The Malvern, Pa.-based Insurance Research Council released its latest uninsured motorists study with data showing New Mexico and Mississippi leading the nation in 2007. More than one in every four motorists in those two states hit the road without insurance. The five states with the highest uninsured driver estimates were New Mexico (29 %), Mississippi (28 %), Alabama (26 %), Oklahoma (24 %) and Florida (23 %). The five states with the lowest uninsured driver estimates were Massachusetts (1 %), Maine (4 %), North Dakota (5 %), New York (5 %) and Vermont (6 %).

"An increase in the number of uninsured motorists is an unfortunate consequence of the economic downturn and illustrates how virtually everyone is affected by recent economic developments," said Elizabeth A. Sprinkel, senior vice president of the IRC, in a news release. The five states with the highest unemployment rates were Michigan, Rhode Island, South Carolina, California and Oregon. All ranked higher than New Mexico and Mississippi in unemployment in November 2008, the latest statistics available. But David Corum, a spokesman for the IRC, cautioned against comparing data from state to state. "We looked at countrywide trends in unemployment and countrywide trends in uninsured motorists. We didn't look at how states with different unemployment rates vary," Corum said. "But I think most people would conclude as economic conditions worsen, unemployment grows, and those people directly affected have to make some tough choices, and unfortunately some of them may decide to go uninsured." An increase in the national unemployment rate of 1 percentage point is associated with an increase in the uninsured motorist rate of more than three-quarters of a percentage point, according to the study. The study also did not look at state auto insurance laws, Corum said, "because some states have them but don't enforce them, and other states have what appear to be weak ones but enforce them very vigorously." The IRC examined data collected from nine insurers representing approximately 50% of the nation's auto insurance market. The study contains recent statistics by state on uninsured motorists claim frequency, bodily injury liability claim frequency and the ratio of uninsured motorists to bodily injury claim frequencies. It also estimates the percentage of uninsured drivers nationally and by state from 2005 to 2007. A rise in uninsured could mean increased premiums for insured drivers. "Most people who are insured have uninsured motorists coverage, and that protects them in the event they are hit by someone who doesn't have insurance," Corum said. "So obviously, that does increase the cost of insurance for those who are insured."

Page 19

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Win an

!! e fl f u h S d iPo

From the Wild, Wild West to the Best of the Best! IIANM Celebrates our 75th Anniversary in 2009!

We would like to invite everyone in the Association to celebrate our collective success in this endeavor, so throughout 2009, we will be announcing a number of fun and informative initiatives to commemorate this milestone year. Every month La Voz will feature a trivia question where the answers can be located on our web site. This month's trivia question is:

In which three cities did the founding members of the Association reside?

You are invited to attend IIANM & New Mexico Mutualâ&#x20AC;&#x2122;s

Legislative Mixer

Thursday, February 12, 2009

5:00 pm â&#x20AC;&#x201C; 8:00 pm Inn and Spa at Loretto 211 Old Santa Fe Trail Santa Fe, NM 87501 Cocktail & Hors devours begins at 5:00 pm. No RSVP necessary

lorri@iianm.org for more info

Limited Room Block - Reserve Your Room Today!

Email yourt answers to rachel@iianm.org by February 13, 2009. On February 16th, there will be a drawing for the winner from the correct entries. Look out for next month issue of La Voz for your next chance to win!

Please mention that you are with the Independent Insurance Agents of New Mexico the receive the special rate of $129 per night!

1/800-727-5531 for reservations For more information, please contact Lorri Gaffney at (505) 999-5805, (800) 621-3978 or lorri@iianm.org.

Page 20

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Was the Credit Crisis an

by Chris Burand

Unforeseen Event? Event

went digging into old issues of my favorite magazines to learn if the credit crisis was unforeseen and therefore whether all these executives', bankers', financiers, brokers', and politicians' excuses for their poor performance had credibility or whether they are just trying to avoid taking responsibility for their companies' and organizations misery.

So what did bankers do with all this cheap and easy money? They talked people and companies into borrowing more money! "Egging borrowers on are bankers, who sometimes admit to lending amounts, as a multiple of underlying cash flows, that are against their better judgment." The result of all this very easy and cheap money is a necrosis. Private equity funds were almost having banks force free money on them. The borrowers could not let the money just sit, so with a lot of debt, they overpaid tremendously for firms and forced those firms that did not want to sell to borrow trillions of dollars to buy back stock to jack up their stock price or make overpriced acquisitions. Banks were not alone in financing these deals. Pension funds were huge players too. The sad fact that so many retirees are now hurting should not be blamed any more on "unforeseen market gyrations." It should be blamed on greedy pension fund managers.

I only had to find one article from The Economist's September 23rd, 2006 issue. The Economist ran a special report titled "The Credit Markets; Business is being reshaped by a massive borrowing binge, but much of it is unseen, unregulated and little understood." In fact, the title says it all. The article gives many examples of companies that were making much larger acquisitions than they ever could have made historically, simply because they could borrow so much more money in ways that possibly did not even show up on their balance sheets, thus permitting much more debt to be borrowed and for that debt to be much more at risk. The article also stated the following warnings:

"...as the debt and derivatives markets have grown out of all recognition, they have moved increasingly into the shadows. Regulators worry that some of the complex financial instruments conjured up around the lending and borrowing of money "worth trillions of dollars" may sow the seeds of the next financial crisis.

"Central bankers and supervisors increasingly worry about the risks to financial stability that may be lurking in the complex debt instruments dreamt up by the finance industry. One of their biggest concerns is how much danger there may be to regulated banks from the faceless institutions they now do much of their debt trading with: hedge funds." They quoted our new Secretary of the Treasury, Timothy Geithner, from a speech he gave on September 14, 2006 in Hong Kong, "The same factors that may have reduced the probability of future systemic events, however, may amplify the damage caused by, and complicate the management of, very severe financial shocks. The changes that have reduced the vulnerability of the system to smaller shocks may have increased the severity of the larger ones." Was that ever an understatement! He went on to suggest that banks may not fully understand all the positions of a hedge-fund counterparty before lending to it since hedge-funds are not required to divulge this information. Think about this. While a lot has been made of mortgage companies giving mortgages to individuals with no provable income, at least there was a house as collateral. In lending to hedgefunds, the banks did not know if they had ANY net collateral! Page 21

This article clearly reveals that we had a top regulator that saw the problem years ago. We had journalists that saw the problem developing. We even had bankers who clearly knew they were making loans they should not have been making (kind of like some insurance companies now writing risks for far too low of a price against their better judgment). In fact, financiers had coined a phrase for it, "I'll not be here and you'll not be here when these deals blow up, so let's just get the deal done." But it happened anyway.

"And then wham! This thing just came right out of left field."

Just because the herd is running toward a cliff but they haven't gone over yet, it is not safe to assume they will never go over. It is just a matter of time and because turning the herd before it goes over the cliff is unlikely, one has to have the personal courage to cut out early, sit on the side while others are making money, protect one's assets, and build for the opportunities that will be very present once the herd goes over the cliff. A lot of personal courage is required too because as George Bernard Shaw wrote, "The power of accurate observation is commonly called cynicism by those who have not got it." Going forward, if you want to avoid going over the cliff, the key is going to be to make your agency as efficient as possible so that you can generate the cash required to invest in growth. If you can borrow money for this investment, then you are better off provided your balance sheet is strong and your agency remains in trust. I am not sure acquisitions per se are the best strategy because so many agencies that will be selling are wasting assets. Organic growth is going to be much less expensive for well-managed agencies because more accounts and more key employees will be in play than at any time in a decade. Is your agency ready to take advantage of this unique opportunity?

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Farmers Rebrands to Foremost Name Brand consolidation will streamline products, services for independent agents. Farmers, one of the largest insurers in the U.S., is rebranding its independent agency business under the Foremost Insurance Group and will make Foremost the company's sole brand for independent agents. Farmers, a wholly owned subsidiary of Zurich Financial Services Group, acquired the Michigan-based Foremost Insurance Company in 2000 and has since been offering products to independent agents through both brands. The decision to place all business under Foremost was made in order to better serve the independent agent force, according to Jack Hannigan, senior vice president & chief marketing officer of Foremost independent agency operations. "Farmers insurance group has been undergoing a distribution strategy review for the last year, and that came off a lot of research with customers and agents," Hannigan says. "In the last few years, we've acquired several companies that were heavily independent-agent based...this is the culmination of all that work." Hannigan says consolidating to one brand will not only streamline product offerings, but will also benefit agents from an operations standpoint.

Page 22

"By simplifying the relationship with the Farmers organization under one brand, everything gets easier because we have fewer companies and fewer appointments to go through," he says. "There's also a single agency agreement, rather than the multiple agreements that exist today...and a single agency representative who oversees a particular agency so they have one source to go to with issues." Foremost will also offer a single agency portal and a profit-sharing program for qualifying independent agents beginning in 2010. All products currently available to IAs under the Farmers brand, including F.A.C.T., Bristol West, Foremost Insurance Group, Zurich Marine Specialty and Zurich Small Business, will be consolidated into the Foremost brand. Farmers will replace the Foremost brand on specialty lines sold by Farmersexclusive agents. The full transition to Foremost is expected to take a few years, according to Hannigan. However, transitioning of Farmers' auto and home products in the eastern U.S. has already begun. The launch of auto products under the Foremost name will begin next month, with homeowners products following in May. Michelle Payne (michelle.payne@iiaba.net) is IA's managing editor.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

E l d a u u c n a t n i A o n 9 S 4 e m s ’ inar M N A I 15 Hours of Continuing Education for the Insurance Professional th

From the Wild, Wild West to the Best of the Best Celebrating 75 Years of Independents in New Mexico

elcome to the Independent Insurance Agents of New Mexico’s 49th Annual Education Seminar! This seminar is designed to specifically meet the annual continuing education requirement for licensed NM insurance agents. We encourage you and your staff to join us on March 11th & 12th, 2009 at The Hilton Hotel in Albuquerque. This two-day program offers educational opportunities, a great Trade Show with over 30 exhibitors, and provides a venue for industry professionals, agents, CSRs and company representatives to network.

For those of you who have not attended before, this is how it works: We will be featuring 20 classes, taught by various instructors. Choosing your classes is much like making selections from a menu. You may choose to take all your classes within one track (i.e. commercial lines only) or you may choose to mix and match tracks so you can take advantage of the wide variety offered. The entire program is approved for both the P&C and L&H licenses, so you may attend any class you like. If you have any questions about registering, instructors, hotel accommodations, or anything else, please call Jeff at (505) 999-5802 or (800) 621-3978. This is an event you don’t want to miss!

Career Track (Menu of Classes)

Commercial Lines

Personal Lines

Agency Management

Employee Benefits

Young Agents / Professional Development

March 11

March 12

8:00am - 12:00pm

1:00pm - 4:00pm

8:00am - 12:00pm

1:00pm - 4:00pm

4 Hours of CE

3 Hours of CE

4 Hours of CE

3 Hours of CE

Commercial Line’s Related Coverages

Bonds 101

Certificates of Insurance & Additional Insureds

Business Income & the ISO CPP

Jack Cleary

Paul Martin

Betsy Carlson

Manny Mansour

Risk Management for Personal Lines

FEMA’s Basic Flood Insurance Course

Personal Lines Round Up

Myths & Misconceptions Personal Lines

Bob Zettel

Tammy Goodman

Paul Martin

Jack Cleary

Organizing Your Agency for the 21st Century Jack Fries

Building an Effective Insurance Office Team Teresa Cross

Strategic Alliance Program for the P&C Agency

Insurance Fraud Is it on the Rise?

Jim McDaniel, Sharon Stark, Roy Cavazos

Alan Rackstraw

The Impact of Wellness Programs on Premium Rates

New Mexico Health Care Legislation

Pre-Tax Health & Retirement Plans

Anne Sperling

Linda Parker

Dealing with Difficult Clients (& others)

Maximizing Relations with Current & Future Customers

Teresa Cross

It’s All About Me! (and everyone else)

Jack Fries

Ready - Aim - Fire! Goal Setting, Planning & Leveraging Time

Patty Padon

JoDee Martinez

Group Health Insurance Carole Henry Gloria Vigil

Jim Campbell

Commercial Lines

Commercial Lines Related Coverages, Instructor: Betsy Carlson, CIC, RPLU, ASLI March 11, 8 to 12 noon 4CE Hours Betsy will discuss Related Commercial Lines Coverages: DIC, Ordinance of Law, Hired/Non-Owned Auto, Fiduciary, Travel Accident, Intellectual Property, Cyber Security, D&O, and EPLI to assist agents in protecting clients from excluded perils in standard insurance policies. This class will identify the exclusions and what policy form is appropriate to cover the exposure. It will give you practical tools to identify companies offering coverage and estimated premium. Bonds 101, Instructor: Manny Mansour, LUTC, AAI March 11, 1 to 4 pm 3CE Hours Need to sell bonds but just don’t know enough about them to feel comfortable? The objective of this class is to give you the basic knowledge needed to be comfortable in selling and working with surety bonds. This class will cover Surety basics, risk and responsibility, understanding the contract, obtaining surety credit, and reducing subcontractor financial risk. Additional Insured’s & Certificates of Insurance, Instructor: Jack Cleary, CPCU, ARM

March 12, 8 to 12 noon 4CE Hours This class will discuss types of insureds such as Named Insured, Additional and Miscellaneous Insureds under the CGL, Commercial Auto, Umbrella, and Workers Compensation policies. Other topics include: Intercompany Products Suits, Separation of Insureds, Subrogation among Insureds, Cross Liability, Additional Insured Endorsements, Application of Exclusions to Insureds, Forms of Business Organizations, Ownership and Insurance Problems, and Discontinued Operations Problems.

Business Income and the ISO CPP, Instructor: Paul Martin, CPCU (w/ IIAT)

March 12, 1 to 4 pm 3CE Hours This course will give you a thorough review of the use of the ISO business income forms to treat customer’s business interruption exposures. The class will show you how to determine the amount of insurance needed for business income and extra expense. Also, learn how to prepare illustrations which avoid your insured’s confusion about the available options.

Personal Lines

Risk Management for Personal Lines, Instructor: Bob Zettel, CIC, CPCU, ARM, AU March 11, 8 to 12 noon 4CE Hours In this course you will learn the most common loss exposures of personal lines clients and the various methods for identifying those exposures. You will learn to determine the best risk management technique beyond just insurance to address each exposure. Finally you will participate in a case study.

FEMA’s Basic Flood Insurance Course, Instructor: Tammy Goodman March 11, 1 to 4 pm 3CE Hours At the end of this course, you will have a basic understanding of the National Flood Insurance Program (NFIP) to be able to share with your clients. You will understand the general rules, review policy coverage, provide basic rating information and program eligibility. This course satisfies the one time 3 hour FEMA flood training requirement that New Mexico adopted in September of 2006. Personal Lines Round Up, Instructor: Paul Martin, CPCU (w/ IIAT) March 12, 8 to 12 noon 4CE Hours This fast-paced workshop is designed to provide you with exposure and coverage reviews for these key areas in personal lines – personal auto policy, watercraft insurance, homeowners liability, condo policies, as well as the common law obligations agents have to customers and companies. Myths & Misconceptions - Personal Lines, Instructor: Jack Cleary, CPCU, ARM March 12, 1 to 4 pm 3CE Hours Many clients face exposures not properly covered by a homeowners or personal auto policy. This class will analyze and explain common misconceptions in personal lines policies such as “Students away from home,” “Husband & wife as named insured under auto policies”, and “Uninsured motorists’ problems and issues with recreational vehicles”.

Agency Management

Organizing Your Agency for the 21st Century, (Achieve more production & profit from your present staff .) Instructor: Jack Fries March 11, 8 to 12 noon 4CE Hours This course is designed for agency owners, officers, and Managers. The primary goal is to assist management in organizing insurance agencies to grow profitably into the 21st century. Since the independent agencies of the 21st Century will face competition from direct writers, non-traditional direct writers and the Internet, they must focus their attention on structuring their agency in such a way as to provide their clients with above average customer service. The course explains how an agency can combine small commercial lines and personal lines servicing into one unit to better serve the customers. It goes on to describe exactly how to eliminate paper and how the structure of the agency must be altered to accommodate these changes.

Building an Effective Insurance Office Team, Instructor: Teresa M Cross, Ph.D. March 11, 1 to 4 pm 3CE Hours Unless we learn how to work together more effectively, Insurance agencies cannot be effective or competitive. In these changing times, we must learn to use the wisdom, vision and intelligence of EVERY member of the agency. Every individual must become an “entrepreneur” who is interested and involved in the process of managing the office. This interesting and exciting workshop uses several video segments which further enhance the learning experience.

Strategic Alliance Program for the P&C Agency, Instructors: Jim McDaniel, Sharon Stark, Roy Cavazos

March 12, 8 to 12 noon 4CE Hours Looking for new sources of income? Many P&C Agencies leave money on the table and their clients unprotected because they don’t understand how Life and Health products can be used with their commercial accounts. Learn how Life, Disability Income and Long Term Care products can be used with existing clients to improve your account retention and your bottom line.

Insurance Fraud - Is it on the Rise? Instructor: Alan Rackstraw, Chief Prosecutor, NM Insurance Fraud Bureau

March 12, 1 to 4 pm 3CE Hours As fraud fighters know, insurance schemes tend to spike when the economy heads south. Alan Rackstraw leads a team of fraud investigators as they discuss Health Care, Auto, Homeowners, and Business fraud. Find out what is the cost of fraud, how to identify it, and steps you can take to reduce fraud in your agency.

Employee Benefits

Group Health Insurance, Instructors: Carole Henry, AVP Underwriting and Gloria Vigil, Marketing Manger, Lovelace Health Plans March 11, 8 to 12 noon 4CE Hours The purpose of this class is to take an in depth look at Group Health Insurance including the basic concepts. The discussion will include the features and benefits of the various Health plans and how they are underwritten and priced. Additionally, it will investigate the impact that New Mexico regulations have on pricing and underwriting for small employer groups. The case studies will look at underwriting submissions and common mistakes which are made. New Mexico Health Care Legislation, Instructor: Anne Sperling, CSA, LPRT

March 11, 1 to 4 pm 3CE Hours Anne will be discussing the 2009 Legislative requests made by the Legislative Health and Human Services Subcommittee. She will discuss the comprehensive health care reform strategy. Anne will also be discussing how the requests turn into statute and how the state will move forward based on the legislative outcome. She will also weave the national health care discussion into the NM discussion.

Pre-Tax Health Plans, Instructor: Linda Parker

March 12, 8 to 12 noon 4CE Hours The purpose of this class will be to investigate the tax impact on Health and Retirement benefit plans and how you can add value for your clients. Linda will demonstrate that the agent doesn’t have to know everything about the various plans an employer could offer. However, they should have an idea about the benefits and where they can create a team of experts to bring added value to their clients.

The Impact of Wellness Programs on Premium Rates, Instructor: Jim Campbell March 12, 1 to 4 pm 3CE Hours This class will provide you with information to communicate to clients proven ways to mitigate future rate increases by addressing the factors which cause the increases. Specifically, you will learn how to create added value for your clients by reducing needs for employee health care utilization. The result will be greater client good will, loyalty and retention.

Young Agents/Professional Development

Working with Difficult Clients and Others, Instructor: Teresa M Cross, PhD March 11, 8 to 12 noon 4CE Hours This workshop addresses a universal need and is based on the work of organizational psychologist, consultant and author, Robert Bramson, Ph.D. Dr. Cross uses a variety of clips from popular movies and TV shows to demonstrate the way difficult people behave and how others generally respond to them. This is an entertaining, yet effective seminar that helps people to use the strategies that have been shown to be most effective in dealing with these frustrating personalities. Maximizing Relationships with Current & Future Customers, Instructor: Jack Fries

March 11, 1 to 4 pm 3CE Hours This seminar is directed towards Customer Service Representatives, Agency Salespeople and Account Managers. The program begins with a checkup of agency marketing and sales activities. It provides information regarding prospecting activities as well as, and analysis of prospecting and sales methodology. It also provides information that will allow the agency staff to better understand and address their client’s needs. The program will also provide tools that will enable agency personnel to establish and measure individual goals.

It’s All About Me! (and everyone else), Instructor: Patty Padon, AAI, CIC, LUTCF, AFSR March 12, 8 to 12 noon 4CE Hours Why is it you like one type of person over another type? Do you cringe when told you’ll have to work with someone on a special project? Discover what type of person you are and learn to appreciate differences and avoid conflicts with others. This class will help you become a better communicator while you discover who you are. “Ready - Aim - Fire!” Goal Setting, Planning and Leveraging Time, Instructor: Jo Dee Martinez

March 12, 1 to 4 pm 3CE Hours In this program you will learn to identify the difference between dreams and well-stated goals and how to strategically plan and tactically execute the goal processes. You will develop sales or professional strategies and goals based on where you are and where you want to be. Also, you will learn tactics to leverage time to achieve goals. Time management is about being more efficient in your use of time, but leveraging time is about using time more effectively, to achieve goals. You will learn to identify time wasters and tactics for dealing with them. You will also learn how to allocate time for your strategic goals and plan activities based on peak productivity periods.

E l d a u u c n a tion Semin n A 9 4 s ’ M ar IAN th

Registration Form 15 Hours of Continuing Education for the Insurance Professional

hank you for choosing IIANM to provide you with quality education for the year 2009. Please fill out this form and return it to the address below before classes fill up. Please photocopy and complete a separate form for each registrant. Select a morning and afternoon class for both days of instruction to receive your full fifteen hours of continuing education. If you have any questions regarding the registration process, please call Jeff Straight at (505) 999-5802 or (800) 621-3978. Cancellation Policy: Cancellations received after Friday, February 27, 2009 will be assessed a $50 cancellation fee. Cancellations received on or after Friday, March 6, 2009 and ‘no shows’ will forfeit the registration fee altogether. A substitute is always welcome, with no extra fee, but prior notification would be appreciated. Non-Member Price

Entire Seminar One Full Day One Half Day Ethics Only

   

IIANM Member Price

$240 $140 $75 $45

$200 $105 $70 $35

Includes:

Two Full Days of Instruction - Ethics (15 hours of NM CE) One Full Day of Instruction - Ethics (8 hours of NM CE) Four Hours - AM Class / Three Hours - PM Class - Ethics included after PM session

Thursday - March 12, 2009

Wednesday - March 11, 2009  AM Course :

 AM Course :

 PM Course :

 Ethics

Attending Wednesday’s TownHall Luncheon?  Yes or  No

Thursday: Lunch on your own

Please note: The room temperature may vary, please bring a sweater

Full Name:

Method of Payment (Please note that full payment must be received with Registration Form in order to secure class reservation)

First Name for Badge:

 Bill Our Agency (For Members Only)

Agency / Company:

 Charge my credit card (VS, MC, AMEX, DISC):

Address:

Amount: $ ___________ (all prices include sales tax)

City, State, Zip: Telephone: Fax:

*All fees include sales tax.

 Check Enclosed (Payable to IIANM)

(

Card No.: _____________________________________

(

) )

Exp. Date: ______________

Authorized Signature:

E-Mail:

P lease R eturn this R egistration F orm and Payment to : I I A N M , 1 5 1 1 U ni v ersity B lv d . N E , A lbu q uer q ue , N M 8 7 1 0 2 - F a x ( 5 0 5 ) 2 4 3 - 3 3 6 7 Seminar Location & Accommodations:

The Albuquerque Hilton 1901 University Blvd. NE Albuquerque, NM 87102 Phone (505) 884-2500 or (800) 274-6835

Group Name: Group Rate: Hotel Cut-off:

Independent Insurance Agents of New Mexico (IIANM) $100 - single / double February 17, 2009

al E u d n u n c a A t i o 9 n Semin 4 s ’ M N a IA th

Sponsor & Exhibitor Form

15 Hours of Continuing Education for the Insurance Professional

Albuquerque Hilton Hotel March 11th & 12th, 2009

Please provide this information as you would like it listed in programs and publications and return by February 27, 2009 to be included in our printed material.

Contact Name:

Send checks payable to: IIANM

Organization:

P.O. Box 25447 Albuquerque, NM 87125

Street Address: City, State & Zip:

or fax Credit Card payment info to: (505) 243-3367

Phone:

Total Amount $

E-mail:

CC#

Please list who will be manning your Booth: Will they attend Thursday’s Luncheon? Y / N

Exp Date: Signature:

Y/N Y/N

Y/N

Circle Your Level:

Any Contribution

For Donations Only

Thursday lunch guest

$640 Exhibit Booth & Lunch Co-sponsorship Courtesy Sign Indicating Sponsorship

$265 Exhibit Booth Only One Thursday lunch guest

Exhibit Booth & Break Co-sponsorship Courtesy Sign Indicating Sponsorship

Recognition given at Seminar

$475 -

$320 Break Co-sponsorship Courtesy sign indicating sponsorship

Thursday lunch guest

Introducing our New

artners

2009 Program

We invite companies to experience the enormous networking, recruiting, and branding opportunities presented by becoming an IIANM Corporate Partner. Our Associate’s Partnership program puts supporters’ front and center in a meaningful and memorable fashion. If you’re interested in more information, please click here (if you are viewing this online) or if you have any questions, please call VP of Membership, Lorri Gaffney at (505) 999-5805 or send an email to lorri@iianm.org

Fraud News & Review

SOURCE: North American Training Group

By Jim Quiggle - Coalition Against Insurance Fraud

IS NATION'S DEFLATING ECONOMY INFLATING INSURANCE OFFENSES?

ith America's sagging economy threatening to remain a train wreck deep into 2009 and possibly beyond, fraud fighters are concerned that many kinds of insurance schemes will spike as stressed policyholders try to bilk insurers to help bail themselves out of a financial corner. Some insurance crimes already are spreading. Others could flare up before long, investigators say. More will be known as case data percolate up from the mean streets. That can take months, but here's what's happening so far: Auto schemes provide the clearest proof that more fraud is on the march. The coalition surveyed a dozen states and other locales around the U.S. early last September. Anxious drivers increasingly are torching vehicles or sinking them in waterways, then lying to their insurers that someone stole them, the data revealed. The trend was detailed in the Fall issue of Fraud Focus. Vehicles still are disappearing. Several updates: Giveups are taking off in Florida. Miami's police chief recently reported an increase in vehicle giveups (see sidebar), and the crime is spreading elsewhere in the state. "Florida is where we're seeing pressure," says John Sargent, director, SIU, of MetLife's property-casualty unit. Vehicle giveups in New York soared up to a third in 2008, the state fraud bureau says. Utah also remains a hotspot, news reports say. Police, for instance, recently found a burning pickup on a desolate road in Utah County. The owner couldn't make payments after going on reduced work hours. Giveups now are spreading in Wisconsin. The National Insurance Crime Bureau receives three to five inquiries a week about suspicious vehicle thefts, but only around three a year normally. One vehicle was stuffed with newspaper then burned in a park-ride lot. So many vehicles were dumped into a quarry near Milwaukee that they were stacked on top of each other. Insurers on alert Desperate consumers also are torching homes-seeking an insurance bailout from foreclosure or general financial distress. The coalition ignited national headlines after revealing the first signs of this trend in late 2006. Homeowners keep being arrested, though the trend likely won't reach the viral levels of vehicle giveups. Still, the threat remains large enough that MetLife is on alert. "As a precaution, any home fire in excess of $25,000 is being reviewed by the investigative unit," says Sargent. But knuckleheads keep trying anyway. Several months behind in mortgage payments, Matthew Peffley recently received four years for burning down his Ohio City, Ohio home. He was seen hightailing out of town minutes before the place ignited. More home policyholders also claim that "poof" expensive possessions suddenly vanished. Knowing people's tendencies in this economy, MetLife says it's looking more closely at claims for "lost" or "stolen" possessions.

To read more on Fraud Convictions, Verdicts, Government Updates & Related News,click the following links and check out last months editions of NATG Fraud News WEEKLY:

Volume 14 Volume 15 Volume 16 To receive this publication directly, simply email your request to rlippman@fraudeducation.com

Coming Soon!

"We're seeing a lot of mysterious disappearances that we hadn't seen before", says MetLife's Sargent. "It's an easy claim to file. You don't even have to say it was stolen. You just have to say "I lost my $4,000 diamond ring." It's tough to disprove. Workers comp schemes are another potential problem area. Will more battered businesses illegally try to avoid paying full premiums? Employers hide workers in shell companies, for instance, or lie to their insurer that employees in high-risk jobs such as roofing are low-risk clerks. One premium scheme can steal tens or hundreds of thousands of dollars a year. Many cons are part of America's vast underground economy, often illegally denying immigrant laborers vital comp coverage. "There's not anything different right now. Do I expect to see more people go to the underground economy route? The answer is yes. Those who were afraid to cross the line might do so because of the economy," says Neil Johnson, assistant vice president and manager of Liberty Mutual's premium-fraud investigative unit. "How much or how many? Only after we get their books and investigate do we know the true extent of premium fraud." Health benefit theft On the health-care front, at least 44 million Americans have no coverage. With unemployment and business closings rising, more distraught consumers may try to steal health coverage. "I certainly think that if the economy gets worse and people keep losing their jobs then we'll probably see more enrollee fraud. Either stolen medical identities sold outright or someone has a relative who lost a job and the enrollee lets them assume their identity," says Louis Saccoccio, executive director of the National Health Care Anti-Fraud Association. But the stolen money pales next to the bigger-dollar frauds by crooked medical providers, Saccoccio says. "Whether insurers will put more resources into enrollment fraud, I doubt it," he notes. "It depends on the dollar amount they see." Fake health coverage also is rearing its head, but is unlikely to spread as virulently as it did eight years ago, Saccoccio adds. "The potential is there. We've recently seen some cases, the cheap deals where you get health coverage for $50 a month. But folks are more aware of that and are on guard," he says. America's full fraud picture still is taking shape, but MetLife's Sargent speaks for many fraud-fighting colleagues. "Our investigators are busier than last year. Investigations are up across the board," he says. "In this economy, people who otherwise are honest and trustworthy now are taking desperate actions because they misguidedly think they're protecting their families." Sidebar: Economy could drain fraud-fighting resources While the sagging economy promises to inspire more insurance schemes, many fraud fighters will have fewer resources to clamp down on wrongdoers. Fraud probes by the FBI, for example, may be further scaled back as the agency deploys hundreds of agents to look into financial skullduggery stemming from America's economic meltdown. The FBI already has sharply reduced the agents assigned to white-collar crime to focus on fighting terrorism. Federal insurance-fraud prosecutions dropped 75 percent from 2000 to 2007. Police departments also may backpedal. In a survey of 200 police departments, 45 percent say the meltdown had affected their ability to reduce crime and nearly 40 percent say their budgets have shrunk. Not great timing. Miami police, for example, say economy-driven insurance schemes such as illegally dumping unwanted vehicles is growing. "We are starting to see middle-class people getting arrested for insurance fraud because they can't afford the lifestyle they have become accustomed to," Miami police chief John Timony recently told Reuters.

LEARN MORE ABOUT INSURANCE FRAUD AND SIMULTANEOUSLY EARN CE CREDITS, VISIT

THE BIG "I" VU FRAUD TRAINING CENTER FOR ON-LINE COURSES, RESOURCES & DAILY NEWS Page 28

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

The

Value

of Employees

by Chris Burand competitive edge dulled, no amount of great employees could maintain high profit margins. IBM is a good case study of such a situation from the '70's and '80's. SAS has left nothing to chance. For example, their turnover rate is only 4% versus an industry average of 20% which saves them $85 million per year. This same measure is absolutely applicable to insurance

agencies. Our study of more than 100 agencies shows the average staff

any years ago, before my insurance career, I had the opportunity to use software developed by SAS. It was great software, relatively easy

to use and powerful. SAS is possibly the largest privately owned software

tenure, excluding bookkeepers (who seem to stick around forever regardless of how good or bad the agency, or the bookkeeper may be) is only about 5 years. Rough estimates from HR firms suggest that every new hire

company in the world.

consumes at least 50% of wages in training cost and lost productivity. With

I was reminded of my great experience with their software as I read an ar-

five CSRs at an average of $35,000 each, an average agency is spend-

ticle ("Face value, Doing well by being rather nice," The Economist, Decem-

ing $17,500 on turnover alone every year. What if you could reduce that to

ber 1, 2007) about SAS regarding not their software, but their relationships

$5,000 and then split the difference with employees on additional benefits?

with their employees and I am now even more impressed. Their accomplish-

An agency with, say, three commercial and two personal lines CSRs, prob-

ments can definitely be applied to insurance agencies.

ably generates around $1,000,000 in commissions. $17,500 is almost an

First, becoming a SAS employee is very difficult. They are very careful about

extra two percentage points of profit! That is a huge improvement!

who they hire and because their reputation is so good, they always have

Fourth, SAS keeps their employees interested and challenged. High quality

plenty of applicants. While most agency owners believe this applies to them too, I really only know a handful of agencies who truly have such fantastic

employees that are going to find ways to grow the agency are going to want to be challenged. They will be bored if they have to do the same thing every

reputations. These agencies have the awards and the newspaper and magazine articles to back them up, and they also have plenty of high quality applicants awaiting an opening in their agencies.

day. Do your people want to be challenged or do they want to just put in their time and get the basic job done? There is nothing wrong with the latter and most agencies need such people, but if too many employees are like that,

Second, their benefit package is phenomenal. Snacks are free and the

just how strong is the agency's growth engine?

cafeteria food is subsidized. The headquarters has sports facilities, subsi-

What does your agency do to keep your employees challenged? What do

dized childcare, early schooling and a primary healthcare center that is free. This health care facility does not cost SAS money. In fact, they figure they

you do to keep your employees learning new skills? New knowledge? What are you doing to help your employees grow as people? Of course, this is not

save millions every year in their health insurance premiums. They have a wellness program too which has contributed to additional cost savings from employees rarely taking sick days.

necessarily an employer's responsibility. It is just something one of the most successful private companies does. SAS may be a very large company in a totally different field than insurance,

Obviously, most agencies cannot afford all these benefits. But if you could

but their success is undeniable and insurance agencies can directly apply

afford one or two, would your ability to attract high quality employees

their philosophy. I personally know three agencies that are blazing this path

improve?

within their own markets and they are growing organically a minimum of 8%

Third, SAS has measured the benefits of their superior employee rela-

in a very soft market while maintaining world class profit margins. And these

tions. Many companies have attributed much of their profit to treating their

are not small agencies that can grow 8% much easier than large agencies

employees exceptionally well only to painfully realize that their high profit

today. This model does require hard work and leadership from management.

margins were the result of some other competitive edge and when that other

But, the rewards are incredible.

Page 29

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

www.marketfindersnm.com

Phone: (505) 822-8711 Fax: (505) 822-1165 Toll Free: (800) 530-8711

New Mexicoâ&#x20AC;&#x2122;s Locally Owned Managing General Agency Since 1977 Representing some of the most financially strong and innovative insurance companies in the specialty marketplace!

Top-Tier Markets For:

Commercial / Public Auto General Liability Property / Vacants Garage / Dealers Liquor Liability Special Events Inland Marine Directors & Officers Liability Professional Liability / E&O Commercial Umbrella Watercraft / Motorcycles / ATVs Personal Umbrellas Homeowners Mobile Homes Dwelling Fire / Vacants At Market Finders, Inc., our mission is to professionally provide quality specialty markets and service to the Agents of New Mexico.

Market Finders, Inc.

4910 Alameda Blvd NE - P.O. Box 90280 Albuquerque, NM 87199

Page 20

www.marketfindersnm.com

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2008

Golf Tournament 15th Annual Scholarship

May 18th, 2009

Tanoan Country Club

Preparation is in progress for the New Mexico Mutual and Independent Insurance Agents of New Mexico’s 15th Annual Scholarship Golf Tournament which will be held on May 18th, 2009 at the beautiful Tanoan Country Club at 10801 Academy Road NE, Albuquerque, NM 87111 This event is designed to fund college scholarships for deserving candidates. Since we are set up as a ‘C-3’ charitable organization, your contributions are entirely tax deductible. We are asking that you contribute to this very worthwhile cause by way of monetary donations, gifts, sponsorships or participation to help us make a dream come true for a worthy nominee. NMM & IIANM are also soliciting nominations for this years recipient. If you are interested in nominating an individual, please contact Cecil Rudd at (505) 343-2823. The scholarship will be awarded at the reception immediately following the tournament. Your participation is vital to the success of our scholarship program. See the reverse side of this for a registration form. Your contributions and registrations should be mailed to the address below. Registrations may be faxed to (505) 243-3367. Should you require additional information, please contact Lorri Gaffney at (505) 999-5805 or 800-621-3978.

Upon Completion of Play: Recipient Award Presentation / Dinner / Golf Awards - Special prizes for: Hole-in-One, Closest to the Pin, Longest Drive, and Numerous door prize giveaways.

Tournament Details: Registration begins at 11:30 am Pick-up box lunches at 12 noon Tee-off at 1:00 pm

Mail or fax this form back to us:

Registration Deadline: May 15th, 2009 Includes: Golf, Lunch & Dinner/Award Presentation $100/per person

IIANM Attn: Lorri Gaffney 1511 University Blvd. NE Albuquerque, NM Fax: (505) 243-3367

Golf Tournament

15th Annual Scholarship May 18th, 2009 Tanoan Country Club

Hole-in-One Sponsor $5,000 or more... • • • • • •

Full Page Ad in La Voz Recognition Plaque Full Registration for Four Players Hole Sponsorship and Recognition Sign Recognition in Event Program Listing an Appreciation Sign at Event

• • • • • •

Eagle Sponsor $1,000 - $2,500 • • • •

Full Registration for Four Players Hole Sponsorship and Recognition Sign Recognition in Event Program Listing an Appreciation Sign at Event

Company / Agency Contact: Company / Agency Name: Address: City, State & Zip: Phone:

Double Eagle Sponsor $2,500 - $5,000 1/2 Page Ad in La Voz Recognition Plaque Full Registration for Four Players Hole Sponsorship and Recognition Sign Recognition in Event Program Listing an Appreciation Sign at Event

Birdie Sponsor $500 - $999 • • • •

Par Sponsor up to $499

Full Registration for Two Players Hole Sponsorship and Recognition Sign Recognition in Event Program Listing an Appreciation Sign at Event

• Recognition in Event Program • Listing an Appreciation Sign at Event

Fax:

Sponsorship Level Selections:

E-mail: Play as one team

Hole-in-One Sponsor

Willing to play on various teams

Double Eagle Sponsor

Eagle Sponsor

(4 players to include) Name Name Name Name

Please fax this form back to: (505) 243-3367 Attn: Lorri or mail to:

Birdie Sponsor (2 players to include) Name Name

IIANM 1511 University Blvd. NE Albuquerque, NM 87102

Par Sponsor Individual Registration Form: Golfer: Company / Agency Name: Address: City, State & Zip: Phone:

$100 per person

Fax:

Your Desired Team: This is for team assignments only! A separate registration form is required for each player. We will try our best to honor your requests. Questions may be directed to Lorri Gaffney at 999-5805. Registration deadline is May 15, 2009.

Yourself Name Name Name

E-mail: Method of Payment: Bill Agency (for Members Only) Check Enclosed (payable to IIANM) Credit Card Name: #: Exp. Date:

Golf Tournament 15th Annual Scholarship

May 18th, 2009

Tanoan Country Club

Recipient Nomination Form Name of Scholarship Nominee: Nominee’s Relationship to Injured Worker: Name of Injured Worker: Place of Employment: Nominee’s Address:

Nominee’s Phone Number Day:

Night:

Mailing Address (If different from above):

Why do you recommend this nominee for the NMM/IIANM Scholarship? (Please attach another page if more space is needed)

Person Nominating:

Company:

Contact Information:

Please return this completed nomination form no later than April 24, 2009. NMM / IIANM Scholarship Attn: Cecil Rudd 3900 Singer NE Albuquerque, NM 87109 (505) 343-2823 Fax: (505) 345-3451

www.scottsdale.burnsandwilcox.com

Who has the ability to handle all your specialty insurance needs?

The

Answer is Your Specialty Insurance Professionals

Professional Liability Umbrella & Excess Employment Practices Commercial Property Products Liability General Liability Commercial Auto Personal Lines

Global Resources. Local Relationships. Albuquerque, New Mexico

(866) 643-8538 / (505) 822-0018 / fax (505) 822-0092 scottsdale.burnsandwilcox.com

www.scottsdale.burnsandwilcox.com

IIANM’s

EducationEDGE Insurance Education Programs in New Mexico are critical to a successful and profitable career in the insurance industry. Every year, we offer exciting opportunities to expand your professional horizons. All of these education programs are designed to help insurance agents thrive in the most competitive of marketplaces. The pre-licensing classes are designed to be a review for the state licensing examination. We recommend that students be familiar with the study material prior to attending class.

Pre-Licensing Study Materials

Pre-Licensing Classes

To see a list of what is available and to purchase your study materials online, click here.

*Study materials are NOT included in class prices.

Property & Casualty Review Class (2 days)

Life & Health Review Class (1 day)

Regular Price: $205 Member Price: $165

Regular Price: $170 Member Price: $135

Instructor: Instructor:

Kitty Leslie Kitty Leslie

- February 10 - 11 8am - 5pm - March 17 - 18 8am - 5pm

Instructor: Instructor:

Click here for a full listing of our education program.

Bob Ouellette - February 12 8am - 5pm Manny Mansour - March 19 8am - 5pm

The FINE PRINT: IIANM reserves the right to cancel/reschedule classes. Please call ahead to verify when classes will run. Decisions will be made three days prior to class. Cancellations received after 5 business days, will be assessed a $50.00 cancellation fee. Cancellations received on or after deadline and ‘no shows’ will forfeit the registration fee altogether. A substitute is always welcome, with no extra fee, but prior notification would be appreciated.

Class Name/Date: Full Name:

Method of Payment:  Bill Agency (Members Only)

First Name for Badge:

 Check Enclosed (Payable to IIANM)

Agency / Company:

 M/C  Visa  Disc  Amex

Address:

Amount:

(all prices include tax)

Card No:

City, State, Zip:

Exp. Date:

Telephone: ( Fax: ( Send in your registration:

)

Signature:

E-Mail:

) Go on-line: www.iianm.org or E-mail: jeff@iianm.org

Page 35

Give us a call: (505) 843-7231 (800) 621-3978

Mail in: 1511 University Blvd. NE Albuquerque, NM 87102

Fax in: (505) 243-3367

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

February's Clickable Calendar - Click on a class to register online -

Sunday

Monday

Tuesday Homeowners (ACSR #1) 8 CE

P&C Pre-licensing Class

Wednesday Thursday Professional Development (ACSR #5) 8 CE

Commercial Liability & Auto (AAI 82/A) 8 CE

P&C Pre-licensing Class

L&H Pre-licensing Class

Friday

Saturday

ce Offi sed Clo 15 16

Classifieds

CE ‘ continuing education

Page 36

Where Will You Find Your Next Great Hire? Looking to fill a position within your agency? Trying to find a job but don’t know where to look? Whether you are looking for somewhere new to share your special skills or an employer looking for quality, professional employees, we are there to lend a helping hand. The staff at IIANM knows that “Teamwork Makes Us Stronger” and we want to help all interested individuals find that perfect fit. Click here to take advantage of IIANM’s Job Bank.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

What? No emu? Over the centuries, our presidents have kept a wide range of pets - some by choice, others thrust upon them by well-meaning diplomats from across the world. Which of these animals never called the White House home? Alligator Lion Silkworm

Whitehouse 101 • Before he became president, Lyndon Johnson was a teacher at a small school in South Texas. • Before he became president, Woodrow Wilson was president of Princeton University. • Only one president was a preacher -- James Garfield. • Did you know that William Howard Taft is the only President who served as both President and Chief Justice of the Supreme Court? • President John F. Kennedy won a Pulitzer Prize in 1957 for his collection of essays, Profiles in Courage. • Both George Washington and Jimmy Carter were farmers before they became president. • The "S" in Harry S. Truman's name isn't short for anything. The President was named after both of his grandfathers, Anderson Shippe Truman and Solomon Young. The initial honors them both. • The first public reading of the Declaration of Independence took place in Philadelphia -- where the bell now-known as the Liberty Bell rang out to call the city's population together on July 8, 1776. • On July 9, 1776, General George Washington gave an order for the Declaration of Independence to be read to his army. • The Statue of Liberty was a gift of friendship resulting from the diplomatic relationship between the United States and France. • President Lincoln owned only one home during his lifetime -- in Springfield, Ill. • President Jefferson spent more than 40 years designing and building his home in Charlottesville, VA known as Monticello. The President admired classical architecture and incorporated this style into his home. • President Richard M. Nixon was offered a position as a player's representative to the Major League Baseball Players Association in 1965. He declined, stating that he was needed in politics. Nixon served as President from 1969 to 1974. • George H.W. Bush played first base on the Yale University team that twice reached the finals of the College World Series. • Grace Coolidge, wife of President Calvin Coolidge, could often be found keeping a perfect scorecard while watching baseball games in the presidential box. • In 1915, Woodrow Wilson became the first President to attend the World Series, where he and his fiance, Edith Gault, made their first public appearance since announcing their engagement. The President insisted on paying for his own tickets. Page 37

Bald Eagle Monkey Zebra

Elephant Owl

Hyena Pygmy Hippo A. Monkey

• In 1787, just four years after the end of war with Great Britain, 55 delegates gathered in Philadelphia to replace the Articles of Confederation. The Constitutional Convention led to the creation of the U.S. Constitution, which was signed on September 17, 1787. • On December 7, 1787, Delaware became the first state to ratify the Constitution. • The first day Congress conducted business under the Constitution was April 6, 1789. On this day, members of Congress counted the votes of the electors, who unanimously elected George Washington as the nation's first president. • In order to amend the Constitution, three quarters of all states must vote in favor before the proposed amendment becomes law.

200th Anniversary of Lincoln's Birthday Abraham Lincoln was born on Feb. 12, 1809, making this year the 200th anniversary of his birth. To mark the occasion, the U.S. Mint is going to release four new pennies. The fronts of the new pennies will have the traditional profile of Lincoln; the backs will each feature a design commemorating an area of his life. One will depict a log cabin (the type of home in which Lincoln lived as a youngster); one will show him taking a break to read while working as a rail splitter (one of his jobs before entering politics); another will feature Lincoln in a standing pose beside the state capitol in Springfield, Ill. (where Lincoln served as a legislator); and the last will feature the image of a half-built U.S. capitol (its state when Lincoln was inaugurated as president in 1861). The U.S. Mint will also release a Lincoln commemorative silver dollar. In addition, the Lincoln Bicentennial Commission in Illinois is helping teachers to coordinate the simultaneous reading of The Gettysburg Address by the state's schoolchildren on Feb. 12. The commission is also encouraging Illinois churches to toll their bells on this day, as well as asking the state's businesses to put "Happy Birthday Abe" signs on their marquees. More than 15 other states have similar Lincoln commissions to honor and remember the nation's 16th president.

Independent Insurance Agents of New Mexico - www.iianm.org - * February 2009

Don’t miss this opportunity to inform your clients about New Mexico Mutual’s FREE claims and safety seminars

Your employee just had a serious work injury. What do you do now? Find the answer to this and other important questions. Our claims professionals will educate you on compensation claims topics that you as an employer need to know.

Topics Include: • How to File a Claim • Accident Investigation and Fraud • Selection of Medical Care • Payment of Disability Benefits • Return to Work Programs • The Claims Reserving Process

You need to attend New Mexico Mutual’s FREE oil and gas industry safety seminar. Topics this year are focused specifically on the leading sources for on the job injuries and what may be done to maintain a safe and healthy work force. There will be plenty of valuable information and resources for you to help keep your employees safe and your insurance costs down.

Topics Include:

Seminars are 3 hours long with refreshments provided. Albuquerque Wednesday, Nov. 5, 8:30-11:30 New Mexico Mutual Office 3900 Singer Blvd NE

3 PERSPECTIVES ON NEW MEXICO’S OIL AND GAS BUSINESS.

Santa Fe Thursday, Nov. 6, 8:30-11:30 Santa Fe Community College 6401 Richards Ave.

To register for either of these seminars and for more information, go to www.NewMexicoMutual.com Click on the ‘workshops’ button on the home page, then click on ‘safety workshops’ or ‘claims workshops or call Michael Baldwin at 343-2831

PO Box 27825 • Albuquerque, NM 87125-7825 505.345.7260 • 800.788.8851

• Major Loss Sources... an Insurer’s perspective • Strategies for Preventing on the job injuries • It’s happened, someone is hurt... keeping the cost down through RTW

Seminars are 2.5 hours long with refreshments provided. PRESENTERS: Jim Lindsey, CSP, ARM, CIE, CRIS, CHSP Loss Prevention Manager; New Mexico Mutual Carol Walker, MS NM OSHA Consultant; Oil and Gas Safe Site Coordinator Patricia (Trish) Salazar Provider Relations Manager; New Mexico Mutual Farmington Wed., November 19, 2008 1:30 - 4:00pm Courtyard by Marriott 560 Scott Ave.

Artesia Wed., December 10, 2008 1:30 - 4:00pm Artesia Country Club 2751 Richey Rd.