March 2012 La Voz by Independent Insurance Agents of NM

â&#x20AC;&#x153;La Vozâ&#x20AC;? is the official monthly publication of the

"The Voice" of Independent Agents since 1934

Independent Insurance Agents of NM

a L

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 Vice President Lorri Gaffney Communications Director Rachel Sheffield Insurance Programs Administrator Julie A. Franchini Member Services Associate Renee Trujillo

2011-2012 Officers

Features

o VZ

2012 IIANM Company Partners

Why Do Independent Agents Need Mountain States?

Apples to Apples - Common Errors in Remarketing Accounts

Get Your 15 CE hours - IIANM's Spring Seminar

Free Events at Spring Seminar

RLI - Announces New Underwriting Guidelines for New Mexico Risks

The Truth Behind Self-Insurance Expenses

Deductibility of IIANM Dues

10 Easy-To-Avoid Advertising No-No's

Keys to Teamwork

The Homeowners "Vehicle" Peril

How to Recruit a Producer

IIANM & NMM 18th Annual Scholarship Golf Tournament

Nine Tips for Keeping Your Goals & Objectives on Track in 2012

In Every Issue Tech Talk

ABEN - The Next Big Thing in Continuing Education

March's Clickable Calendar

Odds n Ends

Advertiser Index Acuity

Chair Scott Jones

Burns & Wilcox

Market Finders, Inc.

Vice-Chair PJ Wolff

MexiPass

Mountain States Insurance Group

New Mexico Health Insurance Alliance (NMHIA)

New Mexico Mutual

Risk Placement Service

Trustco

Secretary/Treasurer Diana Hobbs National Director Sam Conlee Immediate Past Chair Kathy Yeager

THANK YOU

2012

independent insurance agents of new mexico

Partners Program

IIANM’s Company Partner

SPOTLIGHT

by Bill Davis, President & CEO of Mt. States Insurance Group

Mountain States Insurance Group recently had

Why Do Independent Agents Need

Mountain States?

its A.M. Best rating adjusted to a B++ (Good) with a stable outlook from its previous rating of A- (Excellent) with a negative outlook. This decision by A.M. Best was driven by poor underwriting returns over the past four years, largely due to construction defect claims in Colorado, and the continuing effects of an economic downturn since 2008. A.M Best’s action is in no way related to our capitalization level or Mountain States’ ability to meet its insurance commitments, nor its future business prospects. There is no danger of our not being available and fully capable of honoring our obligations to both you and your clients.

In fact, Mountain States is very well capitalized and maintains very modest balance sheet leverage, with $77.5 million in policyholders’ surplus compared to $37.6 million in net written premium. Thus, our net written premium to policyholders’ surplus ratio is a mere 0.5, lower than the Property and Casualty Industry average of 0.7 and better than any of our direct competitors. Our net leverage ratio of 1.9 and overall liquidity ratio of 171.6 are significantly better than the industry average of 2.9 and 145.6 respectively, and those levels are better than any of our competitors.

Mountain States is the only independent, full service insurance company in the Southwest. We have been a fixture in Albuquerque since 1937 and best represent the small independent voice that is still needed and highly valued in New Mexico. We have stood by our Agents and their customers for 75 years, providing the personal local service that bigger insurance companies struggle to match. Our independence and future success is needed so that New Mexico businesses have a local option they can rely upon to provide their insurance needs.

We cannot possibly be everything to everybody - we understand that. That is why we have competition and why we work every day to provide competitive products and comprehensive service levels. But there is no denying that we have been, and will continue to be, an important and necessary part of the insurance options available in New Mexico. We will be here servicing our community long after some of our competitors leave the scene.

In closing, Mountain States remains a financially strong organization, employing great people who make sound, common sense decisions every day. We trust you will agree. Our recent underwriting performance has resulted in a setback for us, but we have taken actions to correct that problem. And now we look forward to providing many more years of service to our State, our local community and to our Agent partners. We remain confident that you will continue to support us as we continue to do what we have always done.

Mountain States Insurance Group 5051 Journal Center Blvd NE Albuquerque, NM 87109 www.msig-nm.com

The phrase “apples to apples” often comes up when comparing coverage. And it is guaranteed you will hear it again if you remarket an account and your customer ends up with an uncovered loss.

E&O Issues and Advice:

APPLES toAPPLES by Charles Phillips

hether you remarket an account at the request of your customer (shopping for price), due to the carrier (nonrenewing policyholder or exiting a business) or out of the agency’s necessity (i.e. have agency contracts with different carriers), the first thing that will happen if a loss is not covered by the new policy will be determining whether it was covered by the prior policy. If it was, you can bet that your customer will contend that he wanted “apples to apples” coverage. As we know, no two policies are exactly the same and so a true “apples to apples” change is rare. Agents can, however, avoid some common errors and take measures to help eliminate errors and omissions (E&O) claims. Any time you remarket the account, there should be some benefits for your insured. Be familiar with all the differences in the new policy and advise your customer. Don’t assume that a difference, especially anything that means a reduction in coverage, is not important to your customer. Notify customers of all changes and let them make the decision. Finally, document your file - preferably with a signed declination from your customer or a letter confirming a conversation in which all changes were discussed and agreed on. Here are some common problem areas in remarketing an account: • Apply for the correct coverage. While this might seem obvious, you might be surprised at how many times agents just send in an old application (with potentially incorrect information on it). If there are specific coverages that you know will be necessary, make sure you bind or request those (i.e. liquor liability or assault and battery coverage for a bar). • Make sure limits are the same or greater. When remarketing an account, make sure that you offer the same or greater limits (including any sub-limits). Make sure deductibles are the same or less.

Common Errors in Remarketing Accounts • Check the exclusions. This is an area fraught with perils. Every carrier has different exclusions. If the new policies exclude something that was not excluded previously, highlight it for your customer and let it be part of their decision. This is definitely an area that you should document. Your recollection of a discussion about what might appear to be an innocuous exclusion at the time will certainly be different from a customer’s recollection when the exclusion keeps a claim from being covered. • Know the financial stability of any new carrier. Make sure the new carrier is financially stable. This is especially true if you are forced to take a customer from the admitted market to the non-admitted market or to a carrier that is not covered by a guaranty fund. You can bet that if the new carrier has insolvency problems (and the old one is still stable) there will be a resulting claim. • Look for other issues that may affect coverage. The new carrier may have insured to value requirements or different ways it handles coinsurance. For certain types of policies, be aware if you are switching between claims made and occurrence policies. Remember that when remarketing an account, you will never find the exact “apples to apples” coverage. Be aware and move with caution. Always maintain good communication with your customer and document your file. Keep an Eye on the Details Want to avoid E&O problems caused by remarketing an account? Don’t overlook the details. Are all of the application specifics up to date? Make sure that all the same buildings, locations, vehicles, personal property, etc. are covered. This is especially important if the previous policy had midterm changes. Don’t just rely on a list that was given to you at the last renewal. Match the coverage that was in the prior policy and all endorsements. And while it is always good to check on values at each renewal, it is especially important to check values at remarketing time. With autorenewals and direct bill policies, you might have a pretty good defense if your customer did not request to increase a limit. The argument loses some steam if you remarket the account, especially if you take it upon yourself to initiate the remarketing effort. By remarketing, you may have taken on additional duties under the law. —C.P.

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 9

Get a jump start on obtaining your required 15 hours of continuing education! No testing! Welcome to the Independent Insurance Agents of New Mexico's

52nd Annual Spring 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 21st & 22nd, 2012 at The Albuquerque Sheraton Airport Hotel. This two-day program offers educational opportunities, a great Trade Show with industry exhibitors, and provides a venue for industry professionals, agents, CSRs and company representatives to network.

Career Tracks

DayONE March21

DayTWO March22

morning

afternoon

morning

afternoon

Commercial Lines

Cyber Liability

Boiler & Machinery

(Itâ&#x20AC;&#x2122;s Not What It Used To

Business Income ---------Commercial Inland Marine

Commercial Property

Betsy Carlson

Paul Walden

Jeff Straight

Personal Lines

Personal Auto

PL Related Coverages

Mobile Home Personal Umbrella HB Business

Flood

Jeff Straight

Bob Pratte

Jack Cleary

Business/Insurance Technology Agency Management

&Health

Life

Ethics

Agency Optimization

C.A.P. Presentation Making Technology (Consumer Agent Portal) Work For You

Websites Decoded

Doug Johnston

Paul Martin

Ted Baker

Risk Management & Insurance

Improving Your Insurance Skills

E&O / Loss Control

Disaster Planning & the Insurance Marketplace

Chris Krahling

Jack Cleary

Bob Pratte

Upcoming Exchanges & the Impact on Small Business Owners

COBRA Update ---------Latino Health Solutions

Employee Benefit Planning

What You Donâ&#x20AC;&#x2122;t Know About Life Insurance

Carole Henry

Dr. Carlos Assante

Joan Buckner

Michael Stark

4:00pm - 5:00pm

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

TWO FREE EVENTS at Spring Seminar! Our Principals & Partners series last year was such a hit that our Board of Directors wants to offer more bang for your membership buck! This year at the Annual Spring Seminar, we are therefore offering two freebees:

1. Do you remember when agency management systems were predicted to be the next big innovation? The early adapters created a huge competitive advantage for themselves, and the agency owners who resisted the message were eventually swallowed up by it.

We believe the CAP Project will be a similar

paradigm shift. We are really excited about this initiative, and we want you to be, too. Like it or not, Internet marketing is the way most business will come to you in the future and learning how to do it is a skill that every successful agency will need to know. Begin that process by attending the CAP presentation at Seminar, free to anyone who doesn't need CE. Pencil in Wednesday afternoon, March 21st, 1 to 4 pm at the Sheraton Airport Hotel. Seriously...every insurance agency principle needs to hear this presentation, so just let us know if you would like to attend.

2. On Thursday, March 22nd, we are hosting a free Principals & Partners Luncheon at Spring Seminar from noon to 1 pm. The subject will be the growing uninsured motorist crisis in New Mexico. At this event, we will present a panel of experts to discuss the latest developments, including out of control rates and a growing concern that umbrella markets will be affected, as well. If you are registered for any classes on Thursday, we will automatically sign you up!

We will also unveil an industry public relations campaign designed to bring New Mexico back to the mainstream. Please plan on attending this important event at the Sheraton Airport Hotel, because we need everyone on board if we hope to fix our U/M laws.

Charles Philips is VP of Claims & Liabilities at Westport Ins. Corp.

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 11

Steve

Anderson.com by, Steve Anderson

Waterproof your Gadgets

Our electronic gadgets can be quite sensitive, especially to getting wet. on't you wonder every time you walk out into the rain what would happen if your

new iPhone got wet? I've often wondered if there was a better way to protect it from water without having to encapsulate it in some bulky case. While I wouldn't take it swimming, it would be great if there was a solution in case I dropped it in water at some point. That hasn't been possible, until now. the phone being dropped into a glass bowl of water, and it Liquipel is a company that will waterproof your iPhone

continued working. The person even pushed the buttons,

and other gadgets. The process they use is a special-

and the phone seemed to have no evidence of any dam-

ized coating in the form of a vapor. You mail your device

age at all. This could potentially be a huge breakthrough

to them and they put it into a chamber and fill it with the

in waterproof technology, and with the gel patent pending,

vapor, which then bonds at the molecular level to protect

we could soon be seeing this technology used on every

the phone. Since vapor is so small, when the process is

conceivable gadget.

finished you can't see or detect the coating, which makes it perfect for phones. The coating gets into everything,

You can get your iPhone completely waterproof for $59.

inside and out. This means not only is your phone water-

For an extra $10, Liquipel will complete the treatment for

proof on the outside, but also on the inside where all the

your device within two hours of receiving it. If you can't live

vital components of your phone reside. This means there

without your phone for a few days, expedited delivery is

will be no visual alterations to your iPhone (or other device)

also available for an additional cost.

whatsoever. With Liquipel the days of worrying about your phone dropA video demonstration of a Liquipel-coated iPhone shows Page 12

ping into the toilet are a thing of the past!

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Stay Safe Online Google has launched a new consumer education campaign called Good to Know. It is designed to teach anyone who uses websites and other online tools about safety, security and data management. There are four parts included: • Stay Safe Online: Tips and advice for staying more secure online. • Your Data on the Web: How data makes websites more useful. • Your Data on Google: How Google uses information to help make a better experience. • Manage Your Data: How to best manage your information.

ach section contains additional information about various topics which might include instructional diagrams and videos. For example, under Your Data on the Web additional topics include discussion of Cookies and IP addresses. Much of the information is Googlefocused, like how to manage what information Google stores about you and your online activities. For most people this can be very helpful as they understand how they can control their Google account information. Google calls Good to Know its "biggest-ever consumer education campaign." Both online and traditional ads highlight security tips like using Google's 2-step verification and checking websites for secure HTTPS connections. This is a great tool to let your current customers and prospects know about. Personal data management, privacy, and potential identity theft are important topics to keep in front of your current clients as well as prospects. Google Good to Know http://www.google.com/goodtoknow/

Tech Support and Training from Microsoft Almost every agency interacts daily with at least two main Microsoft products: Windows and Microsoft Office (which might also include the new Office 365). But getting help when you run into a problem with either product can be difficult. The do-it-yourselfers generally rely on a Google search, asking friends or family, or going to online forums where you can post your questions. Otherwise, getting help has primarily been available through your local IT Consultant who installed the software. Getting tech support from Microsoft directly has been geared for companies with multiple licenses and premium support contracts from Microsoft. A new option is now available from Microsoft called Answer Desk. Designed for "the rest of us," it provides fee-based support for a variety of Microsoft customers and products. Support categories include: Premium Software Support, Virus Removal and Protection, Advanced PC Tune-Up, and OneHour Personal Training. Much of the support looks like it's about $99 for an hour of support -- give or take. Next time you need help with a Microsoft product, you should check out Answer Desk from Microsoft. The money spent just might be worth the time you save in finding the right answer quickly. Microsoft Answer Desk www.AnswerDesk.com

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 13

trust.

Page 12 Page 10

acuity.com

Independent Insurance Agents of New Mexico - www.iianm.org - * March Independent Insurance Agents of New Mexico - www.iianm.org - * 2012 March 2012

IIANM’s Market for Stand-alone Personal Umbrellas Announces

New Underwriting Guidelines for New Mexico Risks EFFECTIVE 4-1-12 FOR NEW BUSINESS AND 6-1-12 FOR RENEWALS, RLI WILL NO LONGER OFFER LIMITS HIGHER THAN $1,000,000 ON PERSONAL UMBRELLA POLICIES IN THE STATE OF NEW MEXICO.

RLI’s decision is based on recent rulings made by the

NM Supreme Court which broaden the scope of Uninsured/Underinsured Motorist coverage in our state. RLI introduced its Excess UM/UIM endorsement for PUPs in 2011, but the company is now concerned that court rulings regarding auto coverage could seep into umbrella policies. RLI will continue to offer the Excess UM/UIM endorsement at $1,000,000 but will no longer write umbrella limits above $1,000,000 on New Mexico risks, regardless of whether or not the Excess UM/UIM endorsement is attached. What to Expect on New Business: Application PUP 276NM (04/12) is mandatory for all new PUPs in New Mexico with effective dates of 4-1-12 and later. Please discard any old applications in your office. The new app can be accessed through the IIANM website, the RLI portal, or by clicking here. If we receive other versions, they will be returned with a request to complete the updated application. What to Expect on Renewals with Limits of $1,000,000: Policies with limits of $1,000,000 will be handled routinely at renewal. A renewal questionnaire will be mailed to the insured 70 days prior to expiration, with a due date 45 days prior to expiration. If RLI does not receive the completed questionnaire by 35 days prior to expiration, a non-renewal

notice will be mailed, along with a copy of the renewal questionnaire that was originally sent. If the insured submits an acceptable questionnaire prior to expiration, the policy will be renewed. The only change will be the absence of higher limit options on the renewal billing that RLI sends to the insured after receipt of the completed questionnaire. What to Expect on Renewals with Limits over $1,000,000: RLI will directly communicate this change to policyholders with limits over $1,000,000 by mailing the NM Renewal Cover Letter 70 days prior to expiration. We recommend that you notify your insureds of the limit change before they receive RLI’s notice. Along with RLI’s explanatory letter, the insured will receive the required non-renewal notice and a renewal questionnaire, which the insured can complete if they choose to renew the policy at the $1,000,000 limit. If they do not return the completed renewal questionnaire, coverage will lapse on the expiration date. Alternative Market - Anderson & Murison As IIANM members, you have access to the Anderson & Murison Personal Excess Policy through Big I Markets. The PEP is a stand-alone personal umbrella policy in the admitted market that has been designed to meet the diverse needs of your insureds. The acceptability guidelines are broad, and the rates are competitive. We are currently in discussions with Anderson & Murison on ways to make their PEP an easy alternative for your displaced RLI insureds. We’ll update you when details are available.

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 15

RISK RISK

ISK

RISK

When it comes to individual and group self-insurance of all types, the main lure is saving money. Self-insured workers’ compensation and health insurance are the most popular, with the majority of states having regulations allowing their formation. Third-party administrators (TPA’s) and even regulators in some of these states perpetuate the belief that money will be saved on lower administrative expenses and/or better experience (less claims).

The Truth Behind Self-Insurance Expenses by Eric Egeland, CPCU, AU President, Capacity Consulting, Inc.

RISKunder the bus right about now, but they are not the

ou might be expecting me to throw TPA’s or regulators

secret we are talking about. Most TPA’s and regulators have their hearts and expertise in the right place. They truly believe self-insuring is a better option and sometimes it certainly IS a better option. Further, most regulations require some level of feasibility study showing that a self-insured program will work before they allow its formation.

RISK

But before you attempt to form or become a self-insured, let’s examine what actually makes up the expenses and why they can be lower, but aren’t guaranteed to be lower.

Lower Administrative Expenses K S I R Insurance premiums consist of two pieces: claims expenses

which are the actual dollars used to pay a claim, and the expenses directly attributed to that particular claim. For a workers’ compensation claim they might include independent medical exams or surveillance on an injured worker suspected of committing fraud. The other half of the premium is the underwriting expenses. This is the operational overhead of the insurance company and includes things like building expense, reinsurance, and the salaries for the underwriters, claims adjusters, loss control, administrative and executives that do all the work for the insurance company.

RISK

K S I R

The theory is that a self-insured, even if they have to pay a TPA to do all the insurance “stuff”, will have lower underwriting (operating) expenses than the big insurance company. The problem is, the TPA has the same types of expenses as an insurance company. Even if the self-insured decides to “self-administer”, they have to hire people and buy or build systems to handle billing and claims, just like an insurance company or TPA. The self-insured also has to pay the same types of outside expenses an insurance company does. Regulatory fees/taxes, excess insurance (improperly called reinsurance), actuarial rate studies, and some form of collateral typically satisfied by a bond or letter

RISK

Page 16

of credit. The collateral mirrors an insurance company’s surplus requirements. The other theory or “marketing sizzle” that is often used is that self-insurance excludes the profit layer that insurance companies build into their pricing. That theory as a marketing concept gets shot down when you look at the facts. According to NCCI, the combined ratio (profit) statistics for private carriers; only two of the last 21 years (1990 to 2010) were profitable. 1995 had a ratio of 97 meaning they made three cents on every dollar of premium charged; 2006 was 93. If you do a simple average for the 21 years you get 109. This means the industry has lost an average of 9% a year for the last 21 years. Oh, and your TPA is absolutely making a profit. Many will argue that self-insuring is actually more expensive just based on the lack of economy of scale alone. On the other end of the spectrum, a large group that shares these expenses or a large individual self-insured that already has its own building, risk management team, and tons of cash, does have the potential to save money. It is not my intent to debate the possibility that operating costs for a self-insurance plan can be less expensive. Every individual and group self-insured is different and a proper third party feasibility study can help predict profitability. But when it comes to a blanket statement, let’s call operational expenses between standard insurance and self-insurance a draw.

Lower Claims Expenses This area is completely different and where things get interesting. I will ruin the build up and get right to the point. If an insured thinks they can get their employees to get hurt less or make smaller and less frequent claims… then they can absolutely lower their claims expense. But this is easier said than actually accomplished.

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Many regulators actually focus on this area as the main place to save money by self-insuring. The self-insured workers’ compensation group regulation in Georgia and Hawaii for instance, requires all members to be part of one association. The theory is that the members are all in the same club and the group will pressure individual members with poor claims history to institute a better safety program or return-to- work program. This is a fantastic theory and does work for smaller associations, but most large associations have little influence over their members, and they don’t have the resources or wherewithal to identify the perpetrators of high rates anyway. All that said, it works if an association can pull it off and herd the cats (members) to all care about their safety and losses.

Adverse Loss Experience We discussed the potential to lower your claims from what might “normally” be expected or historically have occurred. But those not in the industry need to understand that claims can spike above what is expected. Self-insurance means what it says… you are responsible for those expenses whatever they may be.

involved in safety and wellness from the top down. They should pay attention to their losses. If they are a member of a self-insured group, they need to be responsible for themselves and other members. They should question and have their TPA reviewed (the good ones like it). And they should take the time to understand their state’s selfinsurance regulations or hire a 3rd party to explain it. If they do all this they might just see the real benefit of self-insurance, consistent and predictable insurance costs. Eric Egeland, CPCU, AU is the president of Capacity Consulting Inc. who provides strategic consulting for multiple industries including insurance, real estate, education, energy, and internet. He has personally created ten successful start-ups, including seven insurance groups, and has consulted on hundreds of projects, closures, startups, plans, assessments, turnarounds, and r eorganizations. He can be reached at ericegeland@capacityconsultinginc.com and by phone at 845-430-1347.

If losses are above what is expected in a self-insured group, the members can be assessed the difference. Groups are typically joint and severally liable with one another. This means all members are responsible for an assessment even if it was largely caused by a small sub-group. There are protective “caps” that can limit the damage but the potential still exists.

So Is There a Benefit? The entire purpose of this article is realistic expectations. That is the truth behind self-insurance expenses. If a company chooses to self-insure, they are choosing to retain their risk of loss. This is inherently, well… risky and not for everyone. There is no guarantee that it will cost less in the long run. And a business should not go into it assuming they will save money without any extra effort on their part. Instead, they should go into it knowing they are now responsible for their own destiny and they should take extra measures to ensure they do fare better than being insured by a standard insurance company. They should make sure management is Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 17

Risk Placement Services, Inc.

We cover the west with only the best! With multitudes of office locations to choose from,

Knowledge. Relationships. Trust and Confidence.

Excess & Umbrella

placing a call with us will put you on the fast track to providing the best solution for your clients.



Underwriting and Brokerage from six locations

Garage Liability & Physical Damage

(Casper, Boise, Denver, San Francisco, Scottsdale and Seattle)

General Liability



Accounting and claims handled in Scottsdale

Inland Marine



Proud members of AAMGA, NAPLSO, PLUS and various State Independent Agency Associations

Personal Lines



Excellence in service



Relationship driven

For information about becoming an RPS broker call our Marketing Director at:

480.860.5555 SCOTTSDALE

www.RPSins.com/scottsdale

Professional Liability Programs Property Transportation and More! 8700 East Northsight Blvd., Suite 100 Scottsdale, AZ 85260-3671

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

Deductibility of IIANM Dues / Lobbying Percent By federal law, we are required to provide each of our member states 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 2010-2011 is 22.19%. The following is a recap of the non-deductible portion of dues for the past six years: FY 2005-06 Estimated 18.51% Actual 18.88% FY 2006-07 Estimated 22.98% Actual 24.93% FY 2007-08 Estimated 25.16% Actual 17.99% FY 2008-09 Estimated 18.23% Actual 17.35% FY 2009-10 Estimated 17.72% Actual 21.37% FY 2010-11 Estimated 21.92% Actual 22.19% FY 2011-12 Estimated 22.83% Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 19

Bridge the gap between your clients’ exposures and their protection.

It starts with the breadth of our product knowledge. And extends to our unparalleled access to markets. At Burns & Wilcox, our experts possess the resources to protect your clients against any risk. From Property to Excess, Professional to Environmental, we can handle your clients’ exposures no matter what industry they are in. Plus, our quick quoting capabilities can grant them protection in no time. That way, if a mistake does happen, it will be water under the bridge. Albuquerque, New Mexico | 505.822.0018 toll free 866.643.8538 | fax 505.822.0092 scottsdale.burnsandwilcox.com Page• 20 Independent Insurance Commercial • Personal • Professional • Brokerage • Binding • Risk Management ServicesAgents of New Mexico - www.iianm.org - * March 2012

Easy-to-Avoid Advertising

NoNo

’s

When done well, advertising can have the impact of making you appear to be a bigger player than you are - it can establish or enhance your credibility as a serious business.

to cut it for a professional, modern look. If you can’t afford a full-service ad agency, hire a competent, local designer.

7. Not Showing Your People... or Customers.

emember the saying that if your doors are open, you should be advertising. Silence is not an option; if you are not advertising, the competition will be defining your brand for you. To get the most for your advertising buck, avoid these 10 no-no’s:

1. No Plan. If your firm doesn’t have an advertising plan, the ad sales reps are still glad to take your money. Start out with a modest plan, but have a plan. That plan should include specific target audience sets.

2. No Budget. Best Practices agencies typically budget 2 to 3% of revenue for advertising and promotion. You can’t just run a couple of newspaper ads and expect results. 3. No Customer Contact. Don’t advertise to strangers unless you have a top-notch, tested, consistent plan to reach out to your current customers. 4. No Clear and Pre-tested Messages. Why

dream up slogans and ad copy on your own? You can draft copy, but let your employees - and some customers - provide feedback first. Leverage the language contained in the Trusted Choice Pledge of Performance - remember you’re communicating to the consumer exactly the things they say they want in an insurance counselor!

5. No Unified Look to All Materials. Your dollars

work harder - and your brand communications are more consistent - when all your creative materials have the same look and feel.

Customers can’t remember what’s in their BOP policies, but they sure remember their CSRs and agency owners. Feature them in your ads. Go a step further; Find very special clients willing to talk about your agency in TV, radio or print ads. That depicts true partnerships.

8. No Staying Power. Agency owners often get discouraged when they don’t see immediate results from advertising. Remember, it takes at least a two-to-three-year commitment. If your ads are good, there will be a cumulative effect over time. Be patient. 9. “Spray and Pray”. This is the worst offense of all,

and it’s perpetuated by ad sales reps. “We’re having a summer special,” the radio rep will tell you. “You get 100 ads for only 100 bucks.” What a deal, right? Not if the ads are running different weeks, days and times - and you can’t get him to tell you how many drive-time spots you’ll get. Like anything else, you get what you pay for in the advertising business.

10. Not Tracking Results. You must put someone in the agency in charge of benchmarking your calls and referrals and tracking results each quarter of your campain, or campaigns. Trusted Choice® national advertising is running TV ads two weeks out of every month, so its a great time for agents and brokers to take their agencies out to the media. And remember to check out www.trustedchoice.com/agents for more branding and advertising tips.

6. Do-It-Yourself Design. Okay, so someone on

staff has some artistic talent, but that’s probably not going Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 21

MOUNTAIN STATES INSURANCE GROUP A NEW MEXICO TRADITION



75 YEARS AND GOING STRONG 

With the ongoing support of our loyal agents, we continue to do what we do best. Our Marketing Reps are here to help you find the right fit for your clients. RETAIL/WHOLESALE

HOSPITALITY

MANUFACTURING

SERVICE

CONSTRUCTION

RESTAURANTS

Furniture Stores Hardware Stores Building Materials Dealers Grocery Stores Auto Accessories

Luxury Hotels Franchised Hotels/Motels Bed and Breakfasts Conference Hotels Inns

Sign Manufacture Machine Shops Metal Goods Manufacture Concrete Products

Packaging Auto Body and Repair Shops Janitorial Tire Sales and Service Water Companies

Electrical Contractors HVAC Contractors Glaziers Metal Building Construction

Cafés & Bakeries Delicatessens High-end Dining Family Style Restaurants Franchised Restaurants

Garage Door Installers Landscapers

Pam Kaufmann 877.558.8719 pkaufmann@msig-nm.com

Troy Baldwin 800.274.1051 tbaldwin@msig-nm.com

MOUNTAIN STATES Insurance Group®

Stable. Secure. Permanent. Page 20

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Producer and Staff Management

by Ronnie Slone

s y Ke to Teamwork

Our working definition of team work is as follows: Teamwork: "Groups of employees who have at least some collective tasks and where the team members are authorized to regulate mutually the execution of these collective tasks (Delarue, 2003)."

Key #1 - Accountability

Accountability entails the procedures and processes by which one party justifies and takes responsibility for its activities. There is personal accountability AND workplace accountability along with 'how' they coexist.

Key #2 - Leadership

Leaders should not think of themselves as simply Producers, CSRs, etc.; but rather as "team leaders." Thinking of yourself strictly in relation to your job title places you in a position of traditional authority based solely on respect for the position, not as an individual capable of leading. Every individual is responsible for contributing to the team's efforts. Success resonates throughout the team - a team can outperform any individual's efforts. Strong leaders recognize that when success results, the bar must be raised. When it's not, passion will wane, and productivity will be atrisk. Of course, this will be a challenge in and of itself, but if a company doesn't grow, it dies.

Key #3 - Managing Your Environment

It's all about the environment! Everyone sets the tone; everyone understanding the expectations, and the team working together to create a healthy workplace relationship is how one can manage their environment. It seems that today's casual business environment has endangered civility, professional courtesy, and regard for others, leaving rudeness, disrespect, and other inappropriate behaviors in its wake...seek out opportunities at work to practice this skill.

Key #4 - Setting the Expectations

Clearly define what you need from those around you. Regular meetings, open-door policies (to convey ideas, etc) and so on are needed to establish a baseline for what you need from your team and vice versa. A workplace devoid of expectations is like baking a cake with no flour. With the main ingredient missing, it will never make it to the end result you want.

Key #5 - Yours, Mine and Ours: Managing a Healthy Workplace Relationships

Manifesting proper emotional intelligence in building relationships brings about many advantageous results for the individuals and the connection they are creating. Professional relationships are strengthened because there is understanding and open communication among coworkers.

Key #6 - Temperature Check! There are three (3) levels:

1) Cold - "I can do it; I don't have to play" (on the TEAM that is) 2) Lukewarm - "I play nice, but I won't contribute either" 3) Hot - "I AM a team player"

Key #7 - Reflective Practitioner

Think of all that has been discussed thus far as your "personal toolbox". Like a construction worker, you will always wear your tool belt in case a situation arises. Keep that in mind as you go through your day. Do not forget your toolbox at home! As you get more comfortable in your assertive, positive, and more effective self it will become easier and the toolbox of teamwork that you have will become apart of you and your everyday routine. Concluding Point:

Picture a well-oiled machine. The parts run smoothly. The movement of the machine is done in one fluid motion. Think of you, your co-workers, and your organization as one big machine. Operate in your daily lives and workplace as you are a vital part of the machine - because you are.

Ronnie Slone is the Founder/President of The Slone Group (www.TheSloneGroup.com). Ronnie has extensive experience in management and operations, human resources, training and development, and professional staffing. Readers may contact Ronnie at ronnie@theslonegroup.com.

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 23

Specifically, here's what happened with the TV set and the insurer's logic for denying the claim (Note: The agent is a friend of the TV owner who's insurance is written by a direct writer.): A friend had a TV set in the back of his pickup truck. While driving down the road, he hit a bump and the TV set fell out and was destroyed. The insurance company denied the claim.

ulty

ac UF

the homeowners “vehicle” peril

his is not going to be as simple as I had hoped. The policy says personal property is covered on a named perils basis and lists "Vehicles" as one. The insurer is saying that the wording is vague and they have guidelines for claims in this state and say there must be an impact (wreck or whatever). According to the adjuster, they used to be very liberal in the interpretation of "vehicle" damage, but then studied what other companies were doing and paying, and set guidelines for which were more limited than before. She agreed that it is somewhat vague and that they would not deny the claim if they felt an insurance department complaint would reverse it. She said she would have the local claims office manager give me call after she discussed it with him. He called me and said it was not covered. However, if the truck HIT the TV or another car hit the TV after it fell off, it would be covered. The main cause of the claim was poor packing and not caused directly by the truck.

faculty response: I just looked up something in National Underwriter's FC&S Bulletins. The first example they use, as a covered claim under the "Vehicles" peril, is "clothes dryer fell off pickup while driving down the highway." I don't have your policy, but look under the covered perils section. If it lists "vehicles," then I believe it's covered. Does it say, "The damage must result from the personal property colliding with the vehicle?" I doubt it, so the carrier should pay the claim.

Page 24

faculty response: By the company saying "it's vague" they in effect cooked their own goose. Lessons from "Insurance 101" state that any ambiguity in an insurance contract is always resolved in the favor of the insured. The company, in admitting the policy is vague/ambiguous, just bought the claim. I can send you hundreds of cases that start out by the judge saying, "When a policy condition can be construed as ambiguous then the benefit must go to the insured since they did not have a part in drafting the contract."

faculty response: I looked at the commercial property form and it says this: Aircraft or Vehicles, meaning only physical contact of an aircraft, a spacecraft, a self-propelled missile, a vehicle or an object thrown up by a vehicle with the described property or with the building or structure containing the described property. This cause of loss includes loss or damage by objects falling from aircraft. Obviously under a commercial property policy we do NOT have coverage for your claim because the form requires physical contact between the property and a vehicle. That language ain’t in the personal lines form and if the company had intended such to be the case they should have put that wording it. They didn’t. The form is ambiguous, so the client wins. Tell ‘em to cut the check.

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

faculty response: Statement: "According to the adjuster, they used to be very liberal in the interpretation of 'vehicle'" damage, but then studied what other companies were doing and paying, and set guidelines for which were more limited than before." Response: What do the "claims practices" of other companies have to do with what their CONTRACT says? Statement: "She agreed that it is somewhat vague and that they would not deny the claim if they felt an insurance department complaint would reverse it." Response: Imagine what a first-year law student could do with this statement! Statement: "He called me and said it was not covered. However, if the truck HIT the TV or another car hit the TV after it fell off, it would be covered. The main cause of the claim was poor packing and not caused directly by the truck." Response: As I understand it, the peril says simply "vehicles"...where does it require impact with a vehicle? If that's what's covered, why not have the peril say "impact with a vehicle?" They even admit it's vague. Poor packing(?)...isn't that like saying if the TV burned up in a fire, the real cause was failure to encase it in a fireproof enclosure? It appears, through their own admissions, that these folks have slipped their head into a noose...all that's needed is for someone to pull the rope tighter.

faculty response: If the TV had just been setting in the middle of a room, nothing would have happened to it. It was in a truck, then fell off and was damaged...seems like the truck is the only difference in the situations. If the TV was on a table in the middle of a room, there was an earthquake, and the TV ended up smashed on the floor, I'm willing to bet the company would say it was the earthquake (particularly since it's excluded). Poor packaging and human stupidity have nothing to do with it. The contract says it covers damage caused by "vehicles." It doesn't say it covers damage caused by "the impact of a vehicle with the object." The auto policy defines "collision" to be "the upset of 'your covered auto' or a 'non-owned auto' or their impact with another vehicle or object." This policy makes it clear that coverage is only provided if there is physical contact with the ground or IMPACT with another vehicle or object. The HO policy makes no such distinction. All their HO form says is "vehicles"...period. They admit that it's vague. If they only want the peril to apply to impact with vehicles, why doesn't the contract say that? Let them pay the claim, then change the contract wording to eliminate the ambiguity?

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 25

How to Recruit a Producer by Jim Caragher

s an insurance agent/broker, your business depends on your producers -- are most of yours over 50? How will you solve the aging producer problem in your agency? Hire new producers, of course, but how? Recycling another agent's producer can be difficult and expensive and the potential candidate pool is small. Converting a company underwriter or claim person works occasionally, yet far too often technical insurance knowledge is an overrated criterion for producer success. Our experience and the large potential candidate pool suggest that agents need to go outside the insurance industry to successfully recruit new sales talent. Outside the insurance industry, there is no magic formula for a successful producer candidate. The ideal candidate depends on what the agency is willing to invest and risk -in time and money. Fresh-out college graduates can work and are the lowest initial cost. They also pose a high failure risk because they lack business maturity and face validity, that is, they look too young to be taken seriously by business insurance buyers. We found the producer failure rate with "fresh-out" hires intolerable for most of our agency clients. The ideal new producer. We've learned - though 10+ years of experience - that the ideal producer candidate is a successful business-to-business (B2B) sales person from outside the insurance industry. The best predictor of future sales success is past sales success. It doesn't really matter what product or service they sell, though it helps if the product is fairly complex with a long sales cycle. What matters the most is that they know how to prospect and sell to business owners. Agents need to find B2B sales reps with experience generating leads, making cold calls and beating sales quotas. It's a bonus if they can bring in a natural prospect pipeline. For example, we recruited a medical device sales rep for an agency's medical professional liability practice; this new producer doesn't know insurance yet but he knows every orthopedic surgeon in his state.

structured behavioral event interviews. Structured means that you follow a sequence designed to give you information upon which to evaluate candidates objectively against the key success criteria. Behavioral event means you uncover examples in a candidate's past where they demonstrated the skills and abilities that you seek. Pre-employment testing. Sales and insurance industry aptitude tests offer an agency principal valuable insight into a prospective employeeâ&#x20AC;&#x2122;s demeanor. The IIABA endorsed Caliper product is a good, relatively inexpensive tool. We use the Myers-Briggs Type Indicator profile to confirm (or challenge) our interview conclusions about the candidate's personal characteristics. We use the Strong Vocational Interest Inventory & Skills Confidence Inventory to gage a candidate's fit for the producer career. We use other statistically valid tests, when necessary, to assess cognitive ability or sales call reluctance. The key to testing is to not over-weight test results in your hiring decision. What industries and companies should you recruit from? No cookie cutter answer. We have found successful candidates from diverse backgrounds. Seek sales reps coming from employers with demanding hiring standards, formal sales training programs and great foundation "starter" sales jobs. What industries should you avoid recruiting from? Again, no universal answer. We have found that some

Look for the "right stuff". Along with B2B sales experience, we look for 7 key selection criteria for new producers: drive to achieve, relationship skills, cognitive abilities, work ethic, verbal skills, career desires and compensation fit. These criteria are best assessed through a series of

Page 26

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

pharmaceutical sales reps lack the necessary prospecting skills and experience ("pharma is for farmers, not hunters") and sales reps in quick-buck, transaction-driven financial services, like mortgage broking, often don't fit the producer career. What will an agent need to pay a new producer? To hire sales stars from other industries, the agent has to commit to a reasonable, typically guaranteed starting base salary. Candidates need to understand that this is a commission-based career and they will need to validate as soon as possible; they also need a base salary to meet their cash flow requirements as they start to build a book of business. Depending on the candidate's situation and the agent's appetite, we suggest a starting salary budget of $35,000 to $70,000. Like most things in life, you will get what you pay for. Pay less and accept a lighter experienced sales rep, a higher failure risk and a slower, less certain validation path. Pay more and you generally get a proven sales star that can confidently transition to selling insurance to their past clients. Beware a compensation "point of no return": if someone earns a six-figure income selling in another industry, it's hard to convince them to invest in themselves and take a short-term pay cut in order to make the transition into selling commercial insurance.

ful business people and build a clientele. Industry stability. Insurance demand is much more even than other industries and sales reps prefer an industry where the customers don't disappear during difficult economic conditions. Opportunity to make big six-figure income long-term. Emphasize the building of a book of business and the huge income upside from residual commissions. Uncapped income potential. Many other sales jobs have caps on commissions, which great sales people detest. Investing in new producers is critical to an agency's organic growth. Hiring new producers is an important but risky endeavor so you need to manage the process with discipline to achieve the benefits in increased agency commission revenue, higher agency valuation and successful agency perpetuation. Jim Caragher is CEO of CIB Group Services (www.cibgroupservices.com), a company 100% dedicated to helping agents recruit and develop the next generation of producers. Readers may contact Jim at (973) 300-2478 or by email at jimc@thecibgroup.com.

Other lessons learned for successful producer recruiting: Location fit is a critical consideration. Building a book of business takes a long time; it's critical that a producer wants to live and work where your agency is located. Be wary about hiring a producer without deep local roots. The best candidates are often passive, i.e. candidates not actively looking for a new sales job. These folks need to be treated like gold. They need to be recruited; they will not find your agency! Be deliberate - but move quickly - when interviewing. We recommend an agency meet with a candidate several times and include many people in the process, such as other producers. Your agency's interview process must maintain momentum and move quickly from stage to stage (think in days, not weeks) or you will lose star candidates. Recruiting a producer is a bi-directional sale. While you vet the candidate, you need to spend an equal amount of time and effort recruiting them to your agency and the career opportunity that you offer. The best candidates have lots of sales career opportunities to consider. You need to sell them. How do you sell candidates on the commercial insurance producer career? When we talk to B2B sales reps in other industries, the biggest lures of the producer career opportunity are: Consultative, trusted advisor B2B sales. Great sales people want to sell an important product/service to power-

Caliper Organizational Management Webinar Library Available to Big "I" Members Need to brush up on hiring skills? Need advice on maximizing the effectiveness of your limited staff? Wondering how companies are making it through difficult economic times? Caliper, the Big "I"-endorsed provider of employee hiring and development resources has a library of recorded webinars on such topics. Free and typically one hour in duration, they feature academics and business leaders sharing their insights, experiences and secrets for success in achieving personal and organizational goals. Below is a sample of the webinar topics available to you. Click here to access either the full recordings or presentation slides. • How Effective Leaders Think Strategically and Make Winning Decisions • Uncovering the Leader Within: How to Find Your True North • Are You Ready to Start Hiring? How to Bring on the Right People and Make Sure They Succeed • The Three Things You Need to Do to Improve Your Managers and Teams • How to Get New Employees Up to Speed—Faster! • Leading Through Tough Times • How Are Top Companies Selling Through These Tough Times?

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012 Page 25

...and many more.

page 27

Registration Deadline: May 2nd, 2012

18th Annual Scholarship

Golf Tournament

Includes: Golf, Lunch & Dinner/ Award Presentation

$100/per person

Plan to attend the New Mexico Mutual and Independent Insurance Agents of New Mexico’s 18th Annual Scholarship Golf Tournament which will be held on May 7th, 2012 at the beautiful Four Hills Country Club. 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. Your contributions and registrations should be mailed to the address listed on the right. 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 or email lorri@iianm.org.

May 7th, 2012

18th Annual Scholarship

Golf Tournament

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

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

Company / Agency Contact: Company / Agency Name: Address: City, State & Zip: Phone: Fax: E-mail: Sponsorship Level Selections: Hole-in-One Sponsor

Play as one team Double Eagle Sponsor

Willing to play on various teams Eagle Sponsor

(4 players to include) Name Name Name Name Birdie Sponsor (2 players to include) Name Name

Please fax this form back to: (505) 243-3367 Attn: Lorri or mail to: IIANM 1511 University Blvd. NE Albuquerque, NM 87102

Par Sponsor Individual Registration Form: $100 per person Golfer: Company / Agency Name: Address: City, State & Zip: Phone: Fax: E-mail: Your Desired Team: Method of Payment: 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. Bill Agency (for Members Only)

Registration deadline is May 2, 2012.

Yourself Name Name Name

Check Enclosed (payable to IIANM) Credit Card Name: #: Exp. Date:

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012 Page 25

page 29

Nine Tips for Keeping Your Goals and Objectives

on Track in 2012

by John Chapin

By the time you’re reading this we are already well into 2012 and you have a pretty good idea as to what kind of year it’s shaping up to be. If you made New Year’s Resolutions or otherwise set some professional and personal goals for the year, how are those working out?

f you’re like most people you’ve had at least one or two moments when your determination and resolve have been tested. While studies show that many New Year’s Resolutions and goal setting exercises fail, the good news is: making your goals and resolutions a reality is entirely up to you. If you are driven, determined, and dedicated to making your goals and resolutions happen, barring some unforeseen catastrophe, they will happen. So whether you’re on track, off track, or somewhere in between, here are some steps to take that will give you your best chance at hitting the mark in 2012.

actions, get the same results; success leaves clues.

Nine Ideas for Getting and Staying on Track to Success

6) Know the benefits. What will you get, or more importantly, what will you become if you achieve this goal? How will you and your world be better off? How will those around you be better off? What are the ultimate payoffs of your goal personally, professionally, and otherwise?

1) Commit for to your goal or resolution for 30 days. As you probably know, it takes 30 days to develop a habit. The problem is that most of us aren’t consistent for at least 30 days in a row. Maybe we committed for seven days and then took two days off, back on for five, off for two more, on for six, etc. In order to make the habit, you have to do it for 30 days straight. 2) Start small. Rarely do we change our lives significantly overnight, typically it takes one small step followed by another and another until we wake up one day 6 or 12 months later and we notice a dramatic change. Start with one small step and build each day, this approach helps to build momentum and prevents us from getting overwhelmed or discouraged by taking on too much too soon. 3) Remove temptation. If you are trying to eat better, remove all the junk food from your house. If you are trying to spend less time on social media or with e-mail, limit the frequency and amount of time you can spend on each during the day. Remove items and set rules as when you can partake, if ever, in certain activities that are getting in the way of what you are trying to accomplish. 4) Associate with role models. Birds of a feather do flock together. If you want to be a top salesperson, hang out with top salespeople, if you want a successful relationship, hangout with people who have successful relationships. People who are successful in the areas you want to be successful in take certain actions to make it happen. What are those actions? Take the same

5) Write it down. Writing out your goal(s) every morning and seeing them at least twice a day can dramatically increase the possibility of making them a reality. The more you see a goal, the more it is impressed upon your subconscious brain and the more your goal is impressed upon your subconscious brain, the more your brain will work on the goal to help you achieve it. Put your goal(s) somewhere you will see it every day. The best places are: on your bathroom mirror, in your car, and on your list of items to get done during the day.

7) Know the consequences if you don’t follow through. What will the cost or pain be if you don’t achieve this goal? How will you suffer personally, professionally and otherwise? Will it negatively affect your health, your self esteem, your career? What will the negative affect be on those around you and your relationships if you don’t achieve this goal? 8) Keep the end result in mind. What is your ultimate vision for yourself, for your life, and for the world around you? How will achieving this goal help make this vision a reality? Keep your overall objective in mind and remember why you adopted this goal or resolution to begin with. Imagine how you’ll feel when you achieve it. 9) Remember: The only thing that can stop you, is you. What are you capable of if you set your mind to something and determine nothing will get in your way? Pretty much anything. What stops people isn’t the difficulty of achieving the goal or making the resolution stick, what stops people is they lose the resolve to consistently do what needs to be done every day. You have to consistently do what must be done, whether you feel like it or not, that’s how you reach success. Set a goal, develop a plan for its achievement, then follow these steps and make it happen. Life is 90% mental, the only thing between you and where you want to go is in your head.

John Chapin is an award winning sales speaker, 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 sales and find their motivation. 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

Page 30

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

INTRODUCING

The Next BIG Thing in Continuing Education!

The Agents and Brokers Education Network (ABEN), founded by state associations of independent insurance agents, is dedicated to bringing highly relevant, interactive, and professionally produced continuing education programs to independent agents in the most convenient and economical ways possible. ABEN's Live Webcasts will stream professional instructors right into your office, along with related course material. You can follow along with the presenter’s powerpoint, submit questions, take notes, get full access to written materials, and you have the ability to ask questions and chat with other students.

CE WEBINARS!

High quality continuing education for independent insurance agents, brought to you via live streaming video.

Additionally, ABEN’s help desk is standing by 24/7 to assist you, should you encounter any difficulty with the technology. With ABEN courses you get the benefit of best information out there, with the convenience of internet technology and the full educational experience you can only get through ABEN’s platform.

For more information and to view course listings click here

Independent Insurance Agents of New Mexico - www.iianm.org - * March 2012

Page 31

2012 March Clickable Calendar

Sunday

Monday

Tuesday

Click on class title to register

Wednesday

Thursday

1 8 CE

P&C

Pre-licensing Class

CE Committee Meeting

Friday

Saturday

AAI

82/A Commercial Liability

L&H

Pre-licensing Class

Spring Seminar Sheraton Airport 15 CE

Classifieds

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!

d s

And you thought insurance was boring...

n En d

Not all policies cover things like water damage or auto collisions. Take a look at some of the more offbeat items that someone, somewhere, decided to insure:

• Bruce Springsteen’s voice. The rocker’s voice is insured with Lloyd’s of London for $5.7 million. • Ilja Gort’s nose. Owner of the Chateau la Tulipe de la Garde winery in France, Gort insured his olfactory organ for $7.1 million with a policy that prohibits him from skiing or boxing. • Gennaro Pelliccia’s tongue. Pelliccia, the chief taster of coffee for the U.K.-based coffee chain Costa, had his tongue insured for $16 million.

• America Ferrara’s smile. In a publicity stunt, Aquafresh White Trays took out a policy on the actress’ smile for $10 million.

What am I doing here?

(In this room, that is)

We’ve all walked into a room and immediately forgotten what we were looking for, right? Don’t worry—you’re not losing your mind or your memory. According to experiments conducted by a Notre Dame psychology professor, the reason is that walking through a doorway creates an “event boundary” in your mind. In one of the experiments, subjects were asked to move an object from one room in a “virtual environment” to another, or to transport an object the same distance without crossing through any doorway. The participants tended to forget more after moving through the doorway, suggesting that it acts as a kind of barrier that obstructs the ability to retrieve thoughts made in a separate area. Other experiments in actual rooms reinforced the findings.

Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. ~Steve Jobs

• Santa’s beard. Santa Claus performer Brady White insured his white beard for an undisclosed amount of money in 1992. • Troy Polamalu’s hair. The Pittsburgh Steelers player had his locks covered by Head and Shoulders for $1 million. If you happen to catch a leprechaun, you may be in luck. But be very careful—he’ll promise you anything if you set him free, including all his gold, but leprechauns are famous for their cunning and will likely trick you out of any treasure they offer.

Mo Hit Me Baby One

re Time!

Don’t snooze. Get up immediately

when your alarm wakes up. If necessary, place your alarm across the room so you have to get up in order to shut it off. Drink a glass of cold water to get your system started right away.