New Mexico Mutual is proud to announce
that we can now take care of your Ticketing Information
Now boarding your out-of-state workers’ compensation clients... From now through March 31, 2011, qualify for Southwest Airlines gift cards by using our new program. Give us a look! $500 Southwest Airline Gift Card Drawing • For an out-of-state application submitted, the agent/CSR name will be placed in the drawing once. • For any out-of-state policy that is bound with premium less than $25,000, the agent/CSR name will be placed in the drawing twice. Bind it with us! $100 Southwest Airline Gift Card • Qualify by binding any out-of-state account (can include any new New Mexico business premium towards the premium goal) with premium of $25,000 to $49,999. $250 Southwest Airline Gift Card • Qualify by binding any out-of-state account (can include any new New Mexico business premium towards the premium goal) with premium of $50,000 to $100,000. $500 Southwest Airline Gift Card • Qualify by binding any out-of-state account (can include any new New Mexico business premium towards the premium goal) with premium over $100,000. The preferred workers’ compensation insurance carrier of the Independent Insurance Agents of New Mexico, New Mexico Mutual wants your business! Just submit a completed Accord application, loss runs and emod worksheet to your underwriter and we’ll take it from there. Fact information for New Mexico Mutual Out of State Program Midland Management Corporation/PMA Companies – AM Best Rating - A- VIII Submission requirements Accord Application Loss Runs – 3 to 5 years E-mod Worksheet
Underwriters for out-of-state program Evelyn Symonds Renee Pagan reneep@newmexicomutual.com evelyns@newmexicomutual.com 505-343-2827 505-343-2852
Requirements to bind Signed Accord Application Down Payment Direct bill from Midlands Management Corporation
W c
customers with out-of-state exposure.
*
All states are eligible for Other States Coverage Program except the “monopolistic states” of North Dakota, Ohio, Washington and Wyoming.
We are now where your clients need us to be.
SM
SM
www.NewMexicoMutual.com • 1-800-788-8851
“Experience The Litchfield Difference”
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We Write In The Following States:
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•Atlantic Casualty
•Carolina Casualty Ins. Co. •Century Surety
•USLI
•Century Surety
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•Markel/Essex
•Lloyds
•Scottsdale Ins. Co.
•Maxum Specialty Ins. Group
Classes •Longhaul
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•Contractors
•Wreckers
•Garage & Dealers
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General Liability, Commercial Property, Commercial Inland Marine, Pollution Liability, Professional Liability, Directors and Officers, Liquor Liability, Commercial Umbrella/Excess Liability. Written Classes: Manufacturers, Oil & Gas, Contracting Risks, Habitational, Mercantile, Vacant and many more!!
New Mexico Cheryl Bishop Cindy Hudson Denise Whitfield Melissa Shafer
888-767-9005 cheryl@lsrinc.org cindy@lsrinc.org dwhitfield@lsrinc.org mshafer@lsrinc.org
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Or mlquotes@lsrinc.org
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"The Voice" of Independent Agents since 1934
“La Voz� is the official monthly publication of the
Independent Insurance Agents of NM
La
VoZ
IIANM's Annual Continuing Education Seminar
07
GAO Report Underscores Critical Problems of Flood Ins. Program
09
Do You Really Want an Honest Opinion?
13
7 Tips for Selling More in a Tough Economy
14
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.
Agents & Brokers Can Buy Broadcast Media Too
17
Thank you to our 2010 INSURPAC Contributors
18
Principles & Partners Breakfast Scheduled
20
Advertising rates are available upon request.
Community Corner - Kitty Leslie, ABC Member of the Year Recipient
21
PAP vs. BAP
23
AM Best Report: Industry Profits Continue, Challenges on Horizon
25
2011 Annual Scholarship Golf Tournament Scheduled
26
Deductibility of IIANM Dues
27
IIANM Convention Has Been Officially Scheduled
28
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.
Please contact Rachel Sheffield at rachel@iianm.org for details
IIANM Staff President/CEO Thom Turbett, CIC VP Of Membership Services Lorri Gaffney Director Of Communications Rachel Sheffield Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR Receptionist / Member Services Associate Renee Rivera
2010-2011 Officers
Features
In Every Issue Tech Talk
10
Education Edge
29
March's Clickable Calendar
30
Odds n Ends
31
IIANM's Partners Program
32
Advertiser Index Acuity
12
Chair Kathy Yeager
American Mining Insurance Company
27
Vice-Chair Scott Jones
Burns & Wilcox
22
Colonial General Insurance Agency, Inc.
16
Litchfield Special Risks, Inc.
04
Market Finders, Inc.
24
National Director Sam Conlee
Neff Risk Services, Inc.
06
New Mexico Mutual
02
Immediate Past Chair Alma Franzoy-Capron
RPS - Risk Placement Services
08
Trustco - HCIT
15
Secretary/Treasurer PJ Wolff
15
15H Page 6
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
HeadsUp!
Mark your calendars for our upcoming continuing education seminar. Get all of your required 15 hours of CE credits in a classroom setting.
IIANM’s 51stAnnual EducationSeminar
AlbuquerqueHilton WednesdayMarch 23 & ThursdayMarch 24, 2011
5Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hour Download class descriptions and registration form.
Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hours 15Hour Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Page 7
www.RPSins.com/scottsdale
GAO Report Underscores Critical Problems of
FLOOD INSURANCE PROGRAM
Source: AM Best
A
ccording to a new report from the U.S. Government Accountability Office, the National Flood Insurance Program (NFIP) remains structurally unsound and poor management practices are exacerbating its problems.
While the NFIP plays an important role in limiting the damage and financial impact of floods, it is in no position to repay $18.5 billion borrowed from the Treasury Department to cover claims from Hurricane Katrina or other 2005 hurricanes, much less future catastrophic losses, according to the GAO report. The NFIP is intended to be funded with premium dollars from policyholders, but as created by Congress and managed by the Federal Emergency Management Agency, it is "by design" not a sound operation, the GAO determined. "Also, weakness in NFIP management and operations, including financial reporting processes and internal controls, and oversight of contractors place the program at risk," according to the GAO. The NFIP is badly in need of wholesale reforms at its core, said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies. Subsidization of rates encourages irresponsible development, Grande said, as does a policy that bars the program from denying insurance on the basis of frequent losses. The GAO report found that just 1% of policies account for 25-30% of claims. The NFIP is subject to other limitations private insurers are not: it cannot build a capital surplus, may not reject high-risk applicants and is subject to statutory limits on rate increases. "Until we have rates that match the risk, you're going to subsidize bad behavior," he said.
While the NFIP made the GAO's annual list of high-risk government operations, as it has since 2006, the picture is not entirely negative, the GAO found. FEMA has taken steps to strengthen the program, including increasing the number of policyholders and implementing a new process for overseeing contractors. FEMA has reduced its Treasury debt by $850,000 since August 2009. "Unless these operational and management issues are addressed, FEMA risks ongoing challenges in effectively and efficiently managing NFIP, including its management and use of information, data, and technology," according to the report. The GAO is scheduled to issue a detailed report on management and operational challenges facing the NFIP in March. While the NFIP's troubles are not new, "This report is another important reminder that Congress needs to address the issue and pass a longer-term extension that focuses on the needed fundamental reforms," American Insurance Association spokesman Blain Rethmeier said. The NFIP is authorized only through Sept. 30, and insurers are hoping to avoid the rolling gaps and extensions that characterized 2010. With the electoral defeats of the top Democratic voices for including windstorm coverage in the program, some are optimistic of a long-term deal. President Barack Obama signed a one-year extension of the NFIP into law after Congress failed to pass comprehensive reauthorization legislation. Several expirations had caused brief lapses in the flood program.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Page 9
The Anderson Agency Report
Your Phone Will
Change Your World Small agents must spend their technology money wisely. We can’t afford to make a lot of expensive mistakes on devices that either fall out of favor in the marketplace too quickly or turn out to be more hype than substance. We also can’t always buy the brand new toy at top price when it is first introduced. That said, we should be sure not to allow this parameter to make us fall significantly behind the curve of progress.
learning by the book, I looked for the manual and found only a short book containing about 25 pages that offered little or no help.
When PDAs were first introduced, I became a proud PalmPilot owner, learned the graffiti, and synchronized with my contact list, and even took notes in a mobile environment. I believed I was on top of the world.
Smartphones
Then the world changed. Smartphones came along and, still proud of my achievement with the PalmPilot, I limited my selection to something that was progressive but compatible with what I knew in the past, so I selected the Palm Treo.
The former PalmPilots and smartphones used to retail for about $300 with a minimum service plan and an optional Internet access plan. The new model is a discounted price on the phone but mandatory unlimited Internet connection time. The vendors have figured out the key to a long-term revenue stream is in the online usage, not in the hardware device. So, you now have to pay $30 per month for Internet data for the rest of your life… but it’s worth it.
The first disappointment was the disappearance of graffiti, newly replaced by a keyboard that was too small. Synchronization was tricky at best and a known flaw of the new platform that never improved. However, it otherwise seemed to work, so I held on for several years until I really needed a new phone. The right time to investigate current state-of-the-art devices is when you really need a new device. Only then can you make an intelligent, affordable decision. After several consultations with industry friends and doing a lot of online research of user reviews, I decided upon the new HTC Droid. (Notice the new paradigm of relying upon other product users to influence your purchase decision!) The Droid represented an entirely new platform—and it reminded me of the experience of changing management systems. After a couple of weeks of using it just as a phone, I decided to sit down and figure out what features would be really useful. Since I am from the old school of Page10
An online resource yielded a 250-plus-page manual that I promptly printed. Save yourself the time and paper! I learned that playing with the new tool is more effective and rewarding than wrestling with the old paper manual.
If you don’t already own a smartphone, here is why these new phones will change your world.
GPS navigation Throw away your Garmin Nuvi GPS that was such a big hit three years ago; the new phones have multiple GPS navigation applications with the same voice-directed commands of the Garmin or Magellan. It has a feature that allows you to select directions for driving or walking, and Google Navigation will even keep track of your current location in the event you want your friends and family to be able to know exactly where you are. If you’re a remote mountain hiker, this might be of special benefit. Finally, you don’t even need a keyboard to enter the location you are searching for. Merely speak the address and the Droid gets it right Gadgets If you’re searching for something in the dark, there’s a built-in flashlight integrated with the circuitry for the camera flash. The camera adds better quality and includes video
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Life-changing implications capability. With a 2 GB on-board micro SD card that can be upgraded as easily as changing cards, the number of photos you can take is almost unlimited. Eight-gigabyte cards were on sale this holiday season for as little at $14.95! Voice dialing Want to call a friend without using the contact list? Just hit voice dial and speak the person’s name—the phone will find and dial the contact. News If you missed the morning news, click on a variety of news sources including embedded videos of some of the top stories. Turn the Droid 90 degrees left and the portrait display automatically converts to landscape orientation for a wide-angle view; turn back clockwise to return to portrait view. The only direction it doesn’t automatically re-orient is upside down! Radio An on-board FM radio feature allows connection to an array of stations almost as diverse as Sirius. If you have family members in multiple cities across the country, you can default the Droid to provide you instant scroll access to the current and future weather reports in multiple cities. Shopping services A Voice Shopper allows you to speak the name of something you are looking for and Google Shopper accurately identifies the product and instantly displays multiple sources for the product. It is absolutely amazing in its accuracy. Just for fun, I spoke the product “diaper pins” because I had recently spent more than two hours looking at retail stores to attach my auto seat covers with no luck. The Droid instantly displayed 10 alternative sources. One more touch of the screen for either an online or local purchase instantly displayed the address of the local Target that had these in stock.
So, why will the new phone change your life? All of these applications are available to your customers, who are migrating to these more sophisticated devices on a daily basis. To be competitive, your future business platform will require that you can provide access and service on this new platform. We will also need to define a service cultural model to cause consumers to want to deal with a live person, while providing as much technology-based selfservice as the customer will demand. When I can scan the barcode of a product in the store and instantly identify other locations with the same product at a lower price, what will keep me in the current store and cause me to execute the purchase there? When mobile access websites and social networks will allow us to get instant feedback and personal reviews from others who have used products and services, will you have enough distinctive positive reviews to capture the customer of tomorrow? Vendors of all products will need to define a new personal, customized service brand that will cause price not to be the first priority. Competitive price comparison will ultimately become instant across retail boundaries. We need to work with company partners now to aggressively enter this new and exciting marketplace, which will change the way everyone thinks about everything retail. Riding this wave will create many new and exciting opportunities. Holding back will cause us to get caught in the undertow of the crushing wave and drown. So, get surfing today!
Nobody Understands Me
Social media A Facebook application allows you to access your Facebook account and send mobile updates or check up on your friends. Are you starting to get the idea? These applications are all FREE and represent only a small diversity of what is available through Droid applications. The keyboard, if and when you think you need one, is embedded in the screen display, which smartly knows when you need to access it.
Ed Higgins, CPCU, is an active agency principal with over 28 years of experience. He is also an agency technology workflow consultant. He can be contacted at ed@edhiggins. com or 800-453-8917.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Page11
trust.
acuity.com
Do you really want an honest opinion?
T
he Wall Street Journal (July 19, 2010) had a fascinating article regarding the troubles at Boeing and their new 787 aircraft. The article stated, "In its quest to get the beleaguered 787 Dreamliner program back on track...Boeing has turned to an unlikely source: engineering icons from its past. " The article noted that the direct communication used by these very experienced engineers ruffled some feathers because they required that every component and every product actually had to work and they had to work well. Egos are at risk when someone suggests a person's work is inadequate. When a company or an agency begins protecting egos first and producing quality products and services second, the firm's future is doomed. Similar to Boeing's situation, I have found that facts can be very damaging to egos in agencies. It's always interesting to me how so many people get upset at facts. Facts are like rocks. Facts are inanimate objects without a conscience and without an agenda. Yet, many people become furious when presented with facts that do not support or, even worse, contradict their desired beliefs. They rationalize every which way possible trying to show their desired imaginary world is right and the facts are wrong. It's hard to argue with people who desire to live in an imaginary world. Some of the happiest people live in imaginary worlds. Some even thought they were successful because they were able to borrow ever larger sums of money without any more income. Some politicians even believed they could write a health care law that is contradictory to itself, other laws and common sense while providing everyone with better health care and costing the populace less money. No amount of facts are strong enough to break through their imaginary world. The trouble is that sometimes even agency owners' identities are too tightly entwined in their imaginary world. To accept facts about their agency means letting go of whom they think they are. If anyone has ever gone through the process of letting go of an illusion, it is painful. Once through the pain and once re-built again on a much stronger foundation called reality, it is like being reborn. Life becomes so much easier because when a person has to protect a fragile ego and when a person is deeply insecure, the focus is only on surviving. The focus is not
by Chris Burand on thriving—and thriving is a whole lot more fun! So the next time you feel the hairs on the back of your neck going up because someone is challenging your beliefs, think about what they are really saying. Do their facts support their point? Are you willing to listen to someone that really wants to make your agency work like a well-tuned machine? Or are you going to get your back up like some of the younger staff at Boeing?
NOTE: The information provided in this newsletter is intended for educational and informational purposes only and it represents only the views of the authors. It is not a recommendation that a particular course of action be followed. Burand & Associates, LLC and Chris Burand assume, and will have, no responsibility for liability or damage which may result from the use of any of this information. Burand & Associates, LLC is an advocate of agencies which constructively manage and improve their contingency contracts by learning how to negotiate and use their contingency contracts more effectively. We maintain that agents can achieve considerably better results without ever taking actions that are detrimental or disadvantageous to the insureds. We have never and would not ever recommend an agent or agency implement a policy or otherwise advocate increasing its contingency income ahead of the insureds' interests. A complete understanding of the subjects covered in this newsletter may require broader and additional knowledge beyond the information presented. None of the materials in this newsletter should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this newsletter. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Page 13
by John Chapin
for
Selling More
Tips
in a Tough Economy
Y
ou hear it everywhere you go: “Sales are down because of the economy. My customers simply aren’t buying as much.” There are some people out there saying the economy doesn’t matter, it’s what’s going on in your own head that matters. While it’s true that what goes on in your brain is always more important than outside circumstances, the economy is still what’s affecting many businesses. If yours is one of them, put the following seven ideas into practice and you’ll find that the affect on you will be minimal, and in fact, you may notice no change or even a positive one. 1) Don't let the economy be your excuse. After a tough day or some difficult sales calls, it’s easy to use the economy as an excuse. If you do, people will hear it in your voice and you’ll sell less. This attitude also leads to working less. In a down economy, when salespeople should be increasing their calls and activity level, the average salesperson cuts calls by 37%. The answer? Use the down economy as a warning and motivation to work harder and smarter, not as an excuse to back off. If you back off, business will go down, if you work harder and smarter, business will improve. As the saying goes “When the going gets tough, the tough get going.” 2) Get better at selling. When there are fewer sales opportunities and prospects, you must do better with the ones you have. The way to do this is to get better at selling. Read books, listen to tapes and CDs, watch DVDs, become a sponge and absorb everything you can get your hands on. Using this strategy has helped many salespeople improve to the point where they actually sold more in a so-called down economy than they sold when times were good. Now is the time to improve your skills; constant and consistent learning is the best way to grow your sales. 3) Keep a good attitude. Your attitude is your most important sales tool in your arsenal; you have to keep it sharp. Now is not time to read Page 14
the front page of every newspaper and watch every newscast. Our brains are like computers “Garbage in, garbage out.” What you should be doing is putting as many good ideas as possible into your brain. Pick up anything that is inspirational, motivational, positive, and upbeat and use it to keep a good attitude and stay focused. Be positive and persistent. In addition to putting good ideas into your brain, surround yourself with positive people and stay away from negative people. 4) Prepare for the price objection and build value. People are focused on price more than ever these days. Prospects and customers will do everything they can to commoditize vendors and simply go with the lowest price. Thus it is very important that you build value. What are your primary benefits? How are you, your company, and your product better than the competition? Are you local; is your long-term cost less, can you respond to service calls faster? You need to accentuate your primary benefits, make them as powerful as possible, and provide proof in ROI Models, testimonials, and the like. Finally, come up with some solid responses to the price objection. 5) Build relationships. The relationship with the salesperson is the number one reason people give for doing business with a particular company. We’ve all seen it happen, you make an overwhelming case for your product versus the competition and yet, the prospect still buys from your competitor because they’re golf buddies. Relationships are extremely important, in most cases more than anything else, so you need to focus on not only staying in touch with and keeping your name in front of customers and prospects, but also on taking that next step and building solid relationships. 6) Go back to the basics. Now is the time to increase the personal touch. Make more face-to-face visits to customers, send handwritten notes, stop by occasionally simply to say “hello”, and drop off the proposal in person instead of mailing or e-mailing it. Your objective is to touch the customer more often on a more personal level at a time when your competitors are calling less and being less personal.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
7) You are completely responsible for your success.
John Chapin is an award winning speaker, sales trainer, coach, and co-author of the gold-medal winning "Sales Encyclopedia" a comprehensive how-to guide on selling. "Sales Encyclopedia" is written for sales professionals in all industries at any level of experience. Utilizing more than 21 years of sales experience and as a number one salesperson in three industries, John co-founded Complete Selling Incorporated, a company helping salespeople significantly increase their sales results.
Five years from now you and your career will arrive somewhere, the question is: Where? If you decide that something outside of you, such as the economy, is responsible for your success or failure, you give away control of your destiny and your ultimate success. The way to change that is to remember that your success is up to you, you own it, and you control it. Provided you have solid goals and strong enough reasons why you need to get there, you will arrive where you decide to arrive, regardless of the economy, or anything else for that matter. Reminding yourself that you are 100% responsible for your success keeps your success under your control and within reach.
If you would like access to John's free white paper on what it takes to be successful in sales along with a monthly newsletter, you can visit John's website at http://www. completeselling.com For permission to reprint, or to reach John, email him at johnchapin@completeselling. com.
If you put the above tips to work, you will see an improvement in business, perhaps a significant one. Many people have found that as a result of the above tips they are doing more business now than they were when the economy was good. What are you capable of if you really set your mind to it and get to work? The sky is the limit, so stay positive, work hard, work smart, and dream big.
Homeowners Catastrophe Insurance Trust
Your preferred homeowners clients deserve the broadest possible coverage for their homes and personal property. As an active member of IIANM, you have the original -- the very best such program available to you right now. The HCIT Difference in Conditions (DIC) policy supplements basic homeowners coverage by providing protection for catastrophic losses, including FLOOD and EARTHQUAKE.
Just contact:
Trustco, Inc. - HCIT Program Administrator
2063 East 3900 South Ste. 100, Salt Lake City, UT 84124 1-800-644-4334 / Fax: 801-278-9051
www.hcitins.com
Bobbi Phillips / bobbip@hcitins.com Eric Kingdon / erick@trustcoinc.com
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Page 15
Colonial General Insurance Agency
Commercial Lines/Brokerage Department 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. Our Property and Casualty business includes:
♦
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 possible. For additional information contact your underwriter.
Transportation Department
♦
Commercial Auto
♦
Truckers
♦
Physical Damage
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Commercial Contract
♦
NB Mexican Truckers
♦
Local Radius
♦
Personal Lines
♦
Garage
♦
Intermediate Radius
♦
Professional Liability
With 2,500 active producers under contract, Colonial General operates in eight states throughout the South-West. Our offices are located 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.
Please contact our Utah office for all your Transportation needs! P.O. Box 571770, Murray, Utah 84157 Phone: (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 P.O. Box 14770 Scottsdale, AZ 85267 8475 E. Hartford Drive, Suite #100 Scottsdale, AZ 85255 Phone: (480) 991-7889 Wats: (800) 848-8860 Fax: (480) 948-1394 www.colonialgeneral.com
You will never pay a fee to access our companies. No volume or binding contracts.
Agents & Brokers . a l o C a c Co
Whether you opt for radio or TV, there are some negotiating and buying rules to keep in mind as well:
W
hen we think of top brands, we think TV. Because in a world where consumers are blasted with 1,500 advertising images per day, television is the medium that trumps the rest. It is bold, widespread and in your face. And having your business appear on TV gives it an undeniable air of success. But there isn’t an independent agent in the country with Coke’s ad budget, so is TV still viable or worthwhile for you? Yes, and yes. Indeed, with three-quarters of the U.S. having access to cable TV, it is more cost-effective than ever. And these tips from the experts will help make your broadcast buy an even greater success. Before we start, however, let’s broaden the scope here to include radio as well as TV, since both are powerful media options. The first thing to consider when deciding whether or not to hit the airwaves is your target audience. As part of your initial branding development, your agency already should have decided which market segment(s) you wish to reach. Because broadcast reaches such a wide and diverse audience, it is best used by advertisers needing to reach a large base of consumers across a broad geographic area—hence its popularity with car, beer and fast-food advertisers. So, if your target is significantly broad—most homeowners or small and medium-market business owners, in a large marketing area—then broadcast is an effective means of reaching those potential customers. If your target is narrower—either by category or geography, consider a more cost-effective medium, such as direct mail. Once you’ve settled on broadcast, the next question, then, is whether to choose radio or TV. Click on each link for more info: • •
Can Buy Broadcast Media Too
Television advertising Radio advertising
For both TV and radio: • Ask for value-added bonuses, such as announcermade plugs, visibility at station-sponsored events, and listener research. • Check the demographics in your specific program choices to ensure you’re getting the listeners you want. Stations can tell you fairly accurately which areas you are reaching and the socio-economic profile of its listeners. • Track and measure. Make sure the TV or radio stations actually run the ads you’ve scheduled, when you have scheduled them. And, like all advertising campaigns, measure your return-on-investment through multiple vehicles. Ask new callers where they heard of you; use different phone numbers or contact names for different stations or programs. • To access the Trusted ChoiceSM radio and TV spots, visit the Agency/Company area of www.TrustedChoice. com/agents. (Use your IIANM log-in to enter site) All of these considerations can be a burden for an already busy business owner, so consider hiring an advertising professional to help you with ad production, planning and buying. The typical ad agency will charge 15% of the total ad buy, plus fees for production, which you’d have to pay anyway. But if you are serious about making an impact with broadcast, it is likely money well spent. One last note on the Trusted ChoiceSM spots. By using (and tagging) these professionally made spots that already have appeared on national network and cable TV as part of IIABA’s media buy, you can position your agency as part of something huge—and at very little cost. Think about it.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
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Independent Insurance Agents of New Mexico 2010 InsurPac Contributors
surPac) to advocate for agents on a handful of issues. They need our help to strengthen these existing relationships, and now develop relationships with 96 new members of the U.S. House and 13 new members of the U.S. Senate. Some of the issues that our federal government affairs team is currently working on include: • Introduction of NARAB II legislation, which would effectively create one-stop producer licensing for nonresident licenses, while maintaining the system of state regulation. • Rolling back provisions of the health care law, specifically as it relates to agents & brokers. The new Medical Loss Ratios (MLRs) are already squeezing agent commissions by as much as 50%. Big “I” legislation would carve agent commissions out of the MLR calculations since agent compensation is a 100% pass-through and not issuer revenue.
I
n the most recent election our federal Political Action Committee (InsurPac) disbursed over $1.7 million and had an amazing 93% victory rate, winning 248 of the 265 races in which it played. This is a remarkable achievement and affirms that we can be extremely proud of InsurPac, and what it does on a daily basis to protect our membership. Our federal government affairs team is already leveraging their congressional relationships (developed via InPage 18
• Reauthorization of the National Flood Insurance Program, and protecting it from being cut entirely. The following people from New Mexico stepped up last year and contributed to InsurPac. We hope you will consider joining them this year, along with the 6,500 agents nationwide who supported InsurPac in 2010 with donations ranging from $20 to $5,000. As agent donors, they understand that an investment in InsurPac is an investment in the future of our business.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
THANK YOU Berryman, Al / New Mexico State University / $150.00 Bundy, Gail / First Santa Fe Insurance Services, Inc / $250.00 Burke, William / Burke Insurance Group, Inc. / $2,500.00 Conlee, Sam / Wells Fargo Insurance Services USA, Inc / $250.00 Dove, Casey / Colorado Casualty / $25.00 Downey, Roger / Downey & Company / $500.00 Drake, Brandon / AVI Risk Management - Insurance Brokers / $25.00 Drake, Christie / AVI Risk Management - Insurance Brokers / $25.00 Fortner, Bill / AVI Risk Management - Insurance Brokers / $1,000.00 Fortner, Heather / AVI Risk Management - Insurance Brokers / $150.00 Franzoy-Capron, Alma / Leavitt Group Southwest, Inc. / $500.00 Garrison, Bart / High Country Agency, Inc. / $250.00 Hobbs, Diana / Millennium Insurance Agency LLC Insurance / $100.00 Jones, Scott / Brown & Brown - Albuquerque / $150.00 Kluckman, Genevieve / Daniels Insurance / $50.00 Leavell, Carroll / Leavell Insurance, Inc.-Hobbs / $150.00 Lujan, Joe / Manuel Lujan Insurance, Inc. / $100.00 Lujan, Manuel / Manuel Lujan Insurance, Inc. / $100.00 Martinez, Rebecca / New Mexico Mutual / $25.00 Padilla, Diana / New Mexico Mutual / $25.00 Portillo, Gabe / Berger Briggs Real Estate & Insurance Inc / $100.00 Sevier, Connie / Western States Insurance Group Inc. / $100.00 Shaffer, George / Market Finders, Inc. / $500.00 Sims, Gary / J S Ward & Son, Inc. / $100.00 Sims, Sara / J S Ward & Son, Inc. / $100.00 Stagner, Sarah / Western States Insurance Group / $25.00 Turbett, Thom / Ind Ins Agts of New Mexico Inc / $500.00 Vasquez, Angela / Carlsbad Insurance Agency / $300.00 Vidal, Bruce / Carney-Vidal Insurance Agency / $250.00 Wagoner, Adam / Kysar Insurance Agency, Inc. / $250.00 Williams, Chris / Western Assurance / $250.00 Yeager, Kathy / High Country Agency, Inc. / $150.00 Total NM : 32 $8,950.00
Investment in InsurPac is an investment in the future of our business.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
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Principles & Partners Breakfast Scheduled Our first 'Town Hall' style meeting, which brought together key insurance agency personnel and their company counterparts, was groundbreaking in many ways. It resulted in an important agreement on how Certificates of Insurance should be handled in New Mexico. We hope to achieve a similar result with our second such event, which will deal with an equally troubling issue. Please save the date!:
Topic: Uninsured Motorist Where: IIANM Building Date:
May 10, 2011
Time:
8:30am - 10:00am
Please send rsvp to lorri@iianm.org
New Mexico Mutual The Republic Group Mountain States Insurance Group ACUITY Philadelphia Insurance Companies Union Standard Allstate - Workplace Division
Allied Insurance Colorado Casualty Letcher Golden & Associates MetLife Auto & Home Safeco Insurance Safeway Insurance Colonial General Insurance Agency Travelers Westfield Insurance
For more information about becoming an IIANM Partner, please click here.
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Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Hub International Southwest Employee & IIANM Instructor Recognized as 2010 Member of the Year by the Associated Builders & Contractors Albuquerque, NM, February 15, 2011: Hub International Southwest, a leading insurance brokerage firm, announced today that Katherine (Kitty) Leslie, Client Executive, was recently named as the 2010 Member of the Year of the New Mexico chapter of the Associated Builders and Contractors Inc (ABC), a national association with 77 chapters, representing all specialties within the U.S. construction industry, comprised primarily of firms that perform work in the industrial and commercial sectors. ABC’s New Mexico (ABC NM) chapter is a business development association, leading safety education and training, premier apprenticeship and political advocacy and policy impact for local construction businesses. This award was presented last month at a reception held by the association at the El Pinto Restaurant in Albuquerque. Ms. Leslie, a 30 year insurance veteran with niche expertise in construction risks, is a six year member of ABC NM chapter. She was selected as a winner based on several factors including her involvement as Membership Committee Chair, during which time the local membership doubled and the chapter received national awards high retention rates. She currently serves on the Excellence in Construction, Membership and Safety Committees. Kitty is licensed in all lines of insurance in New Mexico including Property & Casualty, Surety, Life & Health, as well as a licensed Insurance Consultant holds several insurance designations including Certified Insurance Counselor (CIC) and an Associate in Risk Management (ARM) from the Insurance Institute of America. She is a past president of Insurance Women of Albuquerque and currently sits on the Advisory Board of the Assistance League. She has been teaching Current Events, Ethics and new agent licensing classes for Independent Insurance Agents of New Mexico since 2002 and represents Hub Southwest in their National Healthcare Focus Group.
“We are extremely proud of Kitty for being recognized for her dedication and achievements by this well-respected association,” said Randy Perkins, Albuquerque Office Leader and Chief Sales Officer, Hub International Southwest. “When it comes to client service and attention to detail, Kitty sets the bar very high and is a great representation of the talented team we have built at Hub.”
Congratulations to the Manuel Lujan Agencies, and to New Mexico Mutual, who were recognized in this weeks “New Mexico Business Weekly” as two of New Mexico’s Healthiest Employers.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
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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
PAP vs. BAP:
Which is the Best?
find it difficult to get a CUP issued with a PAP as underlying coverage.
A
n agent asks, "Recently we have had several personal lines customers ask to transfer their personal vehicles to their business auto policies. In both cases, the businesses are solely owned by our personal auto customers, but they are incorporated. The business auto rates are less (at this time) than the personal rates. We are strongly discouraging this transfer, and have explained the problem with titling, registration, ownership, etc. We would like the experts' opinions on the coverage advantages/disadvantages of personal auto vs. business auto with DOC." Answer: This question often comes up when insureds (e.g., an artisan contractor with a pickup truck) have the option of insuring autos under either a Personal Auto Policy (PAP) or a Business Auto Policy (BAP). While there is no definitively correct answer, often the PAP is a superior way to insure the exposure if the vehicle is personally owned. Again, which form is most appropriate for an insured depends on the particular circumstances. When comparing prices, be sure you're comparing apples with apples by selecting the same coverages. Make sure the BAP is priced with the appropriate coverage symbols, along with UM/UIM and medical payments, plus PIP if applicable. Also make sure you're comparing the same limits and don't forget the need for umbrella coverage. You're probably going to find generally broader coverage and a cheaper price for a Personal Umbrella Policy (PUP) vs. a Commercial Umbrella Policy (CUP) as long as the PUP covers business use of autos. In addition, you might
Neither policy even talks about registration or title specifically but physical damage is like all property or inland marine policies. The "insured" must have an insurable interest in the property. PAP eligibility is contingent upon "ownership" (as are "acquired autos," unless leased) — however, the ISO Personal Auto Manual does not define "ownership" because this is a legal issue that will vary from state to state, depending on statutory criteria or case law. The same is true for the BAP. Why this is important deals not only with eligibility, but also autos acquired during the policy period. In one instance, like the question cited above, you might have an auto owned by an individual that would like to cover it under a business auto policy of their wholly owned corporation. In another situation, you might have a corporately owned auto that the person wants to cover under a PAP. Both of these scenarios are addressed by separate articles on the Virtual University. Using the latter situation as an example, if the corporation acquires a new or replacement auto, is it automatically covered by the PAP? The PAP covers acquired autos when "you" become the owner (or acquire it under at least a six month written lease)...the problem is "you" is defined to be the named insured (an individual, not a corporation) and resident spouse. You don't have to be a rocket scientist (or underwriter or adjuster) to see that this presents a problem. It would be easy to conjure up many scenarios where these types of issues can present problems. So, no matter what course you take, be sure to consult with the insurer to make sure that claims and coverage are what you expect them to be. To read the entire article, please click here. If you do not know your Big "I" website user name and password, email rachel@iianm.org to request your login.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
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A.M. Best Report: Industry Profits Continue, Challenges on the Horizon
T
he U.S. property/casualty industry continues to trudge through a difficult cyclical market plagued by persistent competition, rate decreases in practically all commercial lines, weak macroeconomic conditions, excess capacity and above-average catastrophe activity, as reported in a special A.M. Best Report. Here's a recap of the report:
• A.M. Best Co. estimates net premiums written (NPW) increased approximately 0.5% to $429.8 billion in 2010 from $427.5 billion in 2009, driven primarily by personal lines price increases and marking the first year-over-year increase in NPW since 2006. • The industry‘s underwriting performance deteriorated in 2010, as unusually high catastrophe-related losses—driven by increased frequency of low-severity perils, additional underwriting losses in the mortgage and financial guaranty segments and weaker results in the core commercial lines segment— took a heavy toll on overall underwriting results. • A.M. Best estimates the industry’s overall net investment gains increased approximately 34% to $56.9 billion in 2010 from $42.4 billion in 2009, benefiting from a $16.4 billion swing in realized capital gains, which offset a continued decline in investment income. • A.M. Best estimates the U.S. property/casualty industry will recognize net favorable loss reserve development on prior accident years of approximately $8.9 billion for 2010, representing the fifth consecutive year of prior year reserve redundancies and further eroding the industry’s overall loss reserve position.
• The U.S. property/casualty industry’s policyholders’ surplus position is estimated to be up by 9.5% to approximately $583.4 billion at year-end 2010 from $532.6 billion in 2009. • Mergers and acquisitions (M&A) provide for alternative growth and a viable means of utilizing capital, but current low valuations may impede future acquisition activity. Additionally, while M&A typically involves seasoned business, comprehensive due diligence on loss reserves and the quality of the book is essential for a successful merger. • A.M. Best has maintained a stable outlook for the personal lines and U.S. reinsurance segments, but the outlook for the commercial lines segment has been revised to negative from stable because of an anticipated sluggish economic recovery, continued price deterioration, erosion in reserve levels and higher accident year combined ratios. • Over the next 12 months, the U.S. P/C industry will face increasing headwinds that will pressure operating performance and capital levels for many industry participants; nevertheless, A.M. Best does not expect an overall turn in the market over the near term.
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
Page 25
Scholorship Golf Tournament It’s not the lottery program, but it is a ‘lotta money’! Each year IIANM and New Mexico Mutual team up to raise scholarship money for individuals and families who have suffered from a work related accident. Preparation is now in progress for our 17th Annual Scholarship Golf Tournament which will be held on May 9th, 2011 at the beautiful Tanoan Country Club at 10801 Academy Road NE, Albuquerque, NM 87111, (505.822.0422). Over the years, our Annual Scholarship Golf Tournament has raised $270,000 for scholarships to deserving recipients. Our organizational efforts and your charity have enabled a lot of people to attend college that may not have had a chance, otherwise. We began in 1995 by awarding one $10,000. scholarship. Since that time the tournament has grown beyond our wildest expectations!
• If you know someone that you would like to nominate for the $10,000 scholarship, please click here for a nomination form. • To sponsor and/or attend the golf tournament, click here for your registration form.
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Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
“insurance from people who know mining”
We offer Workers’ Compenasation Insurnace for:
c c
Coal mines: surface and underground coal truckmen
c c
quarries sand and gravel digging
c c
other types of mining mining related risks
For more information, contact Bryant Brown, V.P. Marketing • 1.800.448.5621, x 249. 3490 Independence Drive • Birmingham, Alabama 35209 WWW.AMERICANMINING.COM
Deductibility of IIANM Dues / Lobbying Percent By federal law, we are required to provide each of our members with the following disclosure regarding their 2009-2010 dues. Dues to the Independent Insurance Agents of New Mexico (IIANM) are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. To the extent that IIANM engages in lobbying, the portion of the dues that relate to lobbying expenses is not deductible as an ordinary and necessary business expense. This law was enacted in 1993, effective January 1, 1994 [Section 13222 of the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993)]. The non-deductible portion of dues for 2009-2010 is 21.37%. The following is a recap of the non-deductible portion of dues for the past six years: FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10
Estimated Estimated Estimated Estimated Estimated Estimated
18.74% 18.51% 22.98% 25.16% 18.23% 17.72%
FY 2010-11
Estimated 21.92%
Actual Actual Actual Actual Actual Actual
17.84% 18.88% 24.93% 17.99% 17.35% 21.37%
Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
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IIANM’s 77th Annual Convention Where: Hard Rock Casino Albuquerque When: September 21 & 22, 2011 Look for your registration form... coming soon.
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Independent Insurance Agents of New Mexico - www.iianm.org - * March 2011
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 Study materials are NOT included in class prices.
To see a list of what is available and to purchase your study materials online, click here.
Property & Casualty Review Class (2 days)
Life & Health Review Class (1 day)
Regular Price: $150 Member Price: $120
Regular Price: $115 Member Price: $90
Instructor: Instructor:
Kitty Leslie Jack Cleary
- March 8 - 9 8am - 5pm - April 12 - 13 8am - 5pm
Click here for a full listing of our education program.
Instructor: Instructor:
Manny Mansour - March 10 8am - 5pm Manny Mansour - April 14 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:
)
E-Mail:
Signature:
) Go on-line: www.iianm.org or E-mail: jeff@iianm.org
Give us a call: (505) 843-7231 (800) 621-3978
Mail in: 1511 University Blvd. NE Albuquerque, NM 87102
Fax in: (505) 243-3367
March Clickable Calendar
- Click on a class to register online -
Sunday
Monday
Tuesday
Wednesday
1 P&C Pre-licensing Class
2 P&C Pre-licensing Class
Thursday
Friday
AAI 83A Principles of Agency Management 8 CE hrs
3
Saturday
4
5
L&H Pre-licensing Class
6
7
8
9
10
11
12
13
14
15
16
17
18
19
24
25
26
51st Annual Education Seminar! 15 CE hrs
20
Classifieds
27
21
28
22
23
29
30
31
New Mexico’s Job Bank 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. Click here to take advantage of IIANM’s Job Bank. Do you have an agency you’re trying to sell, or in the market to buy one? Check out our Classifieds!
od
ds n e n
ds
On St. Patrick's Day - Wednesday, March 17 -millions of
Live and learn You’re never too young to start learning about life, or too old to stop. Here are some words of wisdom from people of all ages that nearly everyone can relate to: • I’ve learned that our dog doesn’t want to eat my broccoli either. (Age 7) • If you want to cheer yourself up, you should try cheering someone else up. (Age 14) • I’ve learned that silent company is often more healing than words of advice. (Age 24) • If someone says something unkind about me, I must live so that no one will believe it. (Age 30) • The greater a person’s sense of guilt, the greater his or her need to cast blame on others. (Age 46) • I’ve learned that motel mattresses are better on the side away from the phone. (Age 50)
people will don green and celebrate the Irish with parades, good cheer, and perhaps a pint of beer.
• Regardless of your relationship with your parents, you miss them terribly after they die. (Age 53)
But few St. Patrick's Day revelers have a clue about St. Patrick, the man.
• You shouldn’t go through life with a catcher’s mitt on both hands. You need to be able to throw something back. (Age 64)
Click here to read National Geographic’s article that answers these questions: • Who Was the Man Behind St. Patrick’s Day? • 2010 St. Patrick’s Day Shamrock Shortage • No Snakes in Ireland • St. Patrick’s Day: Made in America? • Wearing Green, Dyeing River Green on St. Patrick’s Day • Pint of Guinness on St. Patrick’s Day
• I’ve learned that whenever I decide something with kindness, I usually make the right decision. (Age 66) • I’ve learned that even when I have pains, I don’t have to be one. (Age 82) • I’ve learned that I still have a lot to learn. (Age 92)
New Mexico’s Legislature is considering a bill that would impose stricter monitoring and license renewal standards on older drivers. In addition to a vision exam, Senate Bill 125 would subject drivers 75 years and older to tests of their reflexes, reaction times, motor skills and coordination. and may include other physical or mental examinations at their license renewal. Additionally, the bill would require a driver to renew the driver’s license at no cost every two years from age 75 to 84; every year, from age 85 to 89; and every six months from age 90 and thereafter. Sen. Peter Wirth, D-Santa Fe, said the requirement would help to determine older drivers’ fitness to operate a motor vehicle or motorcycle safely upon the highways. Typically, drivers must renew their license every four or eight years.
awardwallet.com Say “bon voyage” to keeping track of frequent-flier miles, car-rental rewards, and credit-card points. Sign up with this website, which aggregates and securely monitors all your accounts for free. You can also opt to receive the site’s e-mail notifications when any of your balances change or points are about to expire, so you have a chance to redeem them. HELLO, trip to St. Maarten!
More information can be found about IIANM’s Partner Program by visiting our website at iianm.org or calling Lorri Gaffney at (505) 999-5805.