April La Voz by Independent Insurance Agents of NM

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April 2009

"The Voice" of Independent Agents since 1934

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

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

IIANM Staff President/CEO Thom Turbett, CIC VP Of Membership Services Lorri Gaffney Director Of Communications Rachel Sheffield

Features

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

7 Things Every CSR Needs to Know Deductibility of Your IIANM Dues Creating a Sales Environment Consumer Confidence Influenced by Advertising Stability Drives E&O Decisions Another Inconvenient Truth L&H Trends - Before or After - Tax? Contractor License Bond Changes Stick to the Core Technology Tempers Tough Times The Producer Compensation Debate The Paradox of Flood Insurance Coverage Win an iPod Shuffle! Most Insureds have Cyber-Risk Gaps in Their Coverage Education Seminar Review 2008 ACSR of the Year Winner - Deandra Wiggins IIANM/NMM Scholarship Golf Tournament

05 06 10 12 13 14 15 16 17 18 19 20 22 24 25 27 28

Monthly Big I Advantage

Tech Talk Partners Program Company Listings

08 22

Fraud News & Reviews

Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR

Education Edge

Director Of Education Jeff Straight, CIC, LUTCF

April's Clickable Calendar

Odds n Ends

Receptionist / Member Services Associate Renee Trujillo

Advertiser Index

- Click to view Ad -

Allstate Workplace Division

American Mining

Burns & Wilcox

Colonial General Insurance Agency, Inc.

Vice-Chair Alma Franzoy-Capron

Market Finders, Inc.

Secretary/Treasurer Kathy Yeager

NCMIC - Finance Corporation

New Mexico Mutual

Risk Placement Services

Safeco

Transwestern General Agency

Truckers Insurance

2008-2009 Officers Chair Angela Vasquez

National Director Patty Padon, AAI, CIC, LUTCF Immediate Past Chair Sam Conlee Page 2

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

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

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

www.scottsdale.burnsandwilcox.com

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

www.bigimarkets.com

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

RLI Home Business Changes

BIM Webinar Library

Effective 3/1/2009 Home Business Insurance Application, HBP 108 (01/09), is required for all new submissions. Click here to view a copy of the application. Additional applications are available on the RLI portal or IIANM's website, www.iianm.org. Effective 3/1/2009, on new and renewal business, RLI will be offering the option to add a second location to Home Business Insurance policies. Contact Carmen Reese Porter by email, carmen@iianm.org, or by phone 505-843-7231 or 505-999-5804 for more information.

Our webinars are widely attended, but we always have a few members who can not make the timeslot we have scheduled. Those few members inspired the BIM Webinar Library. Below you will find links to recorded webinars previously conducted. This library will continue to grow as more webinars are conducted and recorded. We also offer slides for most presentations which will be available to open in Adobe and print off for future reference. We hope you find the new resources to be valuable. Feel free to contact us with any suggestions or need for assistance at 800.221.7917 x5364 or bigimarkets@iiaba.net. Click here to view the following Webinars: Fireman's Fund Affluent Program RLI Personal Umbrella Chubb Personal Insurance Masterpiece Products & Services

Lend a Helping Hand

Personal Builders Risk Program "Oh by the way Flood"

Be sure to hit "cancel request" on all non-binding submissions.

Student Housing Habitational Program

If you have a submission in Big "I" Markets and your client does not want the quote, do you remember to cancel the request in the system? Please remember to click on "cancel request" for all submissions in Big "I" Markets that will not be bound. Why is it important? First, it is necessary from a workflow standpoint. The underwriter has fulfilled the quote, and it is up to you as a producer to either request binding or close the submission. Second, it frees the underwriter to work on other accounts, thereby reducing the submission turnaround time. The underwriter should only be closing a submission if they are unable to provide a quote for reasons such as incomplete information. Third, by clicking on "cancel request," you are given the opportunity to provide any details you may know regarding why the quote was not taken. With this information, the underwriter may be more effective in placing accounts in the future. Please lend the underwriters a hand and click on "cancel request" if your submission will not be bound. The underwriters will appreciate it. For questions regarding the Big "I" Markets process, contact Pam Andrews at pam.andrews@iiaba.net. Page 4

Coastal Homeowner Program Non-Standard Personal Property Program Worlds Apart®Habitational

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

Things Every CSR Needs to Know

Customer Care should be part of everyone’s job description. But in every organization there are those people – the customer facing people – whose primary responsibility it is to take care of the customer. It’s to them I am speaking today, so be sure to make sure that everyone in your organization has a chance to read this tip. Here are 7 things that I think every customer service person needs to know....

You chose this job, or it chose you. Either way, it’s in your best interest and the best interest of the customer for you to show up and be fully present to the job. Set an intention every day to be the best you can be at your craft. Make it a point to do a little learning about how to get better at it every day. Find joy in doing your job well. Recognize and acknowledge yourself for all the “wins” during your day. (Even if, and especially if your boss doesn’t notice often enough.)

Be proud of what you do. You play an important role in the company’s success. I’m here to remind you that the experiences you provide for the customer could make or break their relationship with the company. Even if parts of the process are broken, even if the wait times are long, even if the customer is upset about some aspect of the company, a great experience with a customer facing person can make up for a whole lot. You have the opportunity to make deposits in the customer’s emotional bank account and keep those customers happy.

You have emotional genius. Being good at customer service requires a great deal of emotional intelligence. In fact, in your job, EQ is as important – and often more important – than IQ. Here’s the neat thing – being in a people oriented position gives you the unique opportunity to practice and even perfect those EQ skills. That’s going to help you in every relationship you have in your life. As you get better at your job, you get better at your life. That’s a bonus!

by JoAnna Brandi

You have a stressful job, but the amount of stress you take home every day is up to you. How you view your job is just as important as how you do your job. If you allow yourself to over dramatize, ‘catastrophize’, get defensive, and take everything personally, you’re in for a tough time. Your body reacts to the perception of danger with primal instincts to fight or flee – both involving a cascade of stress chemicals that can damage your body. You have the power to change how you view any situation – including your job. Find a frame that makes it less stressful and more enjoyable.

You have the opportunity to make the world a better place every day. Whether you deal with 10 customers or 200 customers a day, you have the power to create positive experiences for all of them. When you make your best effort to add sincere care and appreciation to every interaction, you are infusing it with positive energy and vibration. When the customer leaves the interaction with you feeling good they are likely to spread that positive emotion. Emotions are contagious. You have the power to spread positivity and make the world a better place. We all know how important that contribution is these days. Take it seriously and you can make a serious difference in the lives of your customers and every one they touch. Allow yourself to see the ripples of good will and well being you are sending out into the world. Spread happiness and appreciation and you will feel energized. So there you have it – a short story every customer facing, customer caring person should see. Spread the word around and start a lively dialog in your organization by discussing each of the points – and perhaps by adding a few of your own. Caring is contagious – please spread the word…

The customer is not always right. I know you might have a little card that came from the corporate office that tells you they are, but I’m telling you what you already know to be true. They are not always right. Sometimes they are wrong, sometimes they are mean, sometimes they lie, sometimes they drive you crazy. But being right or wrong is not the point. Your job is to be so skillful that even if they are wrong, angry, nasty or just having a bad day, you have the ability to turn a bad situation into a better one. A highly skilled customer facing person is a magician, able to transform and diffuse difficult situations into good ones.

You work in the performing arts. Service is not like a manufactured good. It can’t be made ahead of time and put on the shelf. It happens in the moment, as needed, and it’s all about performance. That makes you the performer. Just like an actor (or a public speaker or trainer for that matter) there will be days when you just don’t feel up to it and you will have to act “as if ” you were. Here’s where your good training comes in. Rehearsal and visualization work to help you prepare for a great performance every time. Think of yourself as an improv artist. Ta-da! Page 5

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

Deductibility of Your IIANM Dues Dues to the Independent Insurance Agents & Brokers of America (IIABA) are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. To the extent that IIABA 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. The non-deductible portion of dues for 2007-2008 is 17.99%. The following is a recap of the non-deductible portion of dues for the past five years: FY 2003-04

Estimated 18.21%

Actual 16.20%

FY 2004-05

Estimated 18.74%

Actual 17.84%

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%

Should you have any questions, please give us a call at 505-843-7231.

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© 2009 Safeco Insurance Company of America, a member of the Liberty Mutual Group, 1001 4th Ave, Seattle, WA 98154. All rights reserved. Safeco and SafecoNow are registered trademarks of Safeco Corporation. The Safeco logo is a trademark of Liberty Mutual Insurance Company.

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

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

The Happy Sound of

a Successful Backup

by G. Barry Klein

Yes, this is another article about backups, but with a little different tack this time. Presented here are a few distinctions you may not have thought about, and some tips and suggestions. "What IS that little bell? I hear it all day long!"

Snapshots

It's a fair question. You know those little, silver-colored bells you see on customer-service counters? The ones you slap with your open palm to call someone who is (hiding) in the back room? That sound is intended to carry a long way. On a good day, my wife will hear it eight or ten times per hour, all the way to her kitchen from my second floor, home-based business office.

There is one major flaw in this whole system. A really good, ASP-based agency management system will cover it, but not a home-grown system like mine, and probably not yours, either. Here it is: When you back up your data, you're backing up what you currently have. What if you delete a file (or mess it up), and don't discover your mistake for a few months? Our solution is "snapshots." Every week, we copy all the critical data to a directory that's dated with that day's date. We have those snapshots going back six years. Last year, I had to go back nine months to find an uncorrupted version of a particular file. I store the snapshots offline, on DVDs.

It's the happy sound of a successful backup. Like the chimes of our grandfather clock, I get used to the sound and don't really "hear" it after a while. Of course, sometimes, the happy "ding" is replaced with a loud and low-pitched "boop." That's the unhappy sound of a failed backup, usually because of an open file in the directory that's being backed up. The importance of backups

Tips Here are the tips and suggestions I've learned from our experiences (and our failures).

I've been thinking a lot about backups lately. That's partly because we have a relatively new, relatively expensive LaCie shared hard-drive. In retrospect, tucking it away on top of a high cabinet wasn't a good idea, considering the hardwood floor six feet below. We thought it survived the fall, but no such luck. We didn't lose any critical data, but we did lose some things that weren't backed up. There's more to life, apparently, than just critical data.

Redundancy: Data isn't safe unless there are multiple copies of it, in multiple locations. Locally, make sure your data is on multiple hard drives. Remotely, use at least two different offline storage services. For local backups, seriously consider a Drobo (drobo.com), a wonderful, scalable device that constantly backs up your data simultaneously on four different drives. For remote backups, alternatives are Mozy, DropBox, Carbonite and Amazon's Jungle Disk. By the time you read this, Google's rumored backup service, GDrive, may be a reality.

Mainly though, we're in the midst of implementing a self-designed document imaging system. Our aggressive schedule is an hour of scanning on our high-speed scanner every evening, followed by shredding everything the next morning, after verifying the backups. We're intentionally giving ourselves no wiggle room, and the entire business will be paperless in three or four weeks. The backups are critical, and we're learning things we hadn't considered before.

Scheduled verification and testing: It is amazing how often we'll check one of our backup systems and find that it isn't current, or, more likely, is missing data. Usually it's because we've set up something new and forgotten to include it in our backup scripts. We have a regularly scheduled weekly backup review as part of our follow-up system, although we're doing it daily while we're in the midst of our imaging project.

Copying vs. syncing For example, there's a difference between copying from A to B and syncing A and B. If you copy from A to B, pretty soon B will be larger than A. Why? Because any files you delete from A - such as the temporary files my assistant creates in her WIP (Work In Progress) directory for each project - are still sitting on B. A true bilateral sync will make the two directories exactly equal, keeping the more current file (or the more current action on a file). Off-site backups Another very important issue is off-site backups. All my data (under 30 GB) resides on two separate drives, and the 5 GB of critical data is on four drives. None of that will matter if the place burns down or all of my hardware gets stolen. So, we use two different offline backup services: Mozy ($4.95/month for unlimited data storage) and DropBox ($100/year for 50 GB of storage). Page 8

Security: One downside to remote data backup is that you never know who has access to your data. Consider encrypting at least the sensitive data, or even all of it, before sending it off to the cloud. This can be as simple as compressing it to a (strong) password-protected ZIP file, or using a program like PGP (Pretty Good Privacy) to encrypt it. If you're on a Mac, you can make an encrypted disk image (dmg) file. Consider other media devices: There are other forms of media besides hard disks on your own hardware and hard disks out in the cloud. If your data (or at least your critical data) isn't too large, you may be able to fit it onto a writable data DVD, or even a thumb drive. We also have a few, bootable USB portable disk drives. Don't put all your eggs in one basket: The more you are willing to spend a small amount of money and put a little effort into setting up some alternative backup methods, the more you're likely to have all of your information there when disaster strikes.

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

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A recent, unpublished study of young and good producers discovered that at least half left their jobs after a short time due to their agencies' poor sales environments. These were certifiably good producers, the kind of people this industry critically needs. I think it is safe to say a new producer costs a minimum of $150,000 the first three years with minimal production, so these are very costly losses and all because of a poor sales environment. What a waste. How can agencies turn this around? A desperately important key, is to understand the difference between being producer friendly and creating a good sales environment. I find that most agencies with poor sales environments are overwhelmingly lax in making their producers accountable for sales - or anything else. A common assumption is that because producers are paid commissions, that commission-based compensation should take care of everything else. It doesn't! Creating a good sales environment requires some amount of discipline, not necessarily a lot, but some.

Creating a

SALES Environment

Producers must follow agency rules and procedures. They must provide staff and companies adequate information. Producers must offer customers all the coverages they need, not just the coverages the producer thinks the customers might buy. This is not asking for too much. These are the basic requirements of the job. If a producer protests these very reasonable requirements because it takes him or her away from making sales, take a look at how much the producer is really selling even without these requirements. I'll bet it won't be much. So, does their argument has any merit? I doubt it. I find good producers, and especially good young producers, usually have no problem with these requirements. They expect accountability. On the other hand, when a new producer sees other producers that do not produce and are not accountable, do you think they perceive the agency has a good sales environment? When producers lack accountability for following agency rules and procedures, especially when these same producers do not produce, then successfully developing young talent is virtually impossible. New producers will not respect their coworkers for long, nor will they respect management. Management will soon lose respect for the producers and the remaining employees will eventually follow. Loss of respect for coworkers and management will flow through the agency like a virus. In addition to the poor environment, the new producers are not able to get the help and guidance they need because the staff is too busy fixing the other producers' problems, and resenting them for it. Producers without accountability sap the energy out of an agency. I've had the opportunity to visit software firms full of motivated people. The energy Page 10

levels are incredible, the environment is overwhelmingly positive even when things are not going well, a team spirit exists, and the can-do attitude is obvious. This is what we should want in our agencies and letting producers run willy-nilly is not going to get us there. Those agencies that create a strong sales environment and successfully develop new producers will be in the catbird's seat. A good sales environment is further enhanced by good mentoring of young producers. We should not expect success simply by giving them the a few tools, pointing them in the right direction, and saying, "Go get 'em Tiger!" I have had the good fortune of reviewing quite a few producer development plans and examining their results. I have seen plans so good a monkey could seemingly by Chris Burand succeed if the monkey would only follow directions and even producers with this advantage usually fail because management was lax. It was reactive, not proactive. Success in these situations was almost 100% dependent on the producer being an incredible self-starter with overwhelming initiative. Agencies rarely hire people of this caliber so it does not make sense to create a plan based on a personality characteristic that does not usually exist. For new producers to succeed, agency management must help these young people find their own style, confidence, and provide pro-active guidance to succeed. Nothing beats success for paving the way for more success. Young people are still growing and are eager to learn. Nothing is more stifling than being in an organization where no one else is growing. When all the other producers have built books of an adequate size to support their living standards, who is a young producer to look up to as a guide for building a book? Developing good young producers and growing an agency through new account sales is the key to an agency's future, and both are dependent on having a good sales environment.

Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@burand-associates.com. NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. 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 - * April 2009

Page 11

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

Consumer Confidence in Financial Firms Influenced By Advertising Source: The Nielsen Company Consumer confidence in the health of financial institutions, including insurance companies, is dramatically influenced by advertising and marketing efforts, says a new study by Nielsen IAG. At a time when some financial institutions are pulling back on their advertising, the survey suggests, that advertising may be one way to regain or retain consumer confidence in financial institutions' brands. When asked about their own banks, insurance companies and investment firms, 55 percent of consumer respondents who said they had seen more advertising for their financial institution reported having "complete confidence" in the financial health and soundness of their financial company and only 18 percent said they had "little or no confidence" in their company. But when it came to those consumers who said they had seen less advertising, only 18 percent had "complete confidence" in their financial company and 45 percent said they had "little or no confidence" in their company. "This research shows that 'out of sight' can mean 'out of business,'" said Richard Khaleel, executive vice president of Nielsen IAG's Financial practice. "The current economic climate makes it more important than ever for financial institutions to bolster confidence among their clients and this study clearly demonstrates the link between advertising and confidence levels. With constant scrutiny on the industry it's clear that taking control of the message in advertising and press can make all the difference for a brand." "This recession is now driven by consumer spending," said James Russo, vice president of marketing, The Nielsen Company. "In 2008, Nielsen data shows that consumer's concerns were around food and fuel. Today consumers are driven by fear aligned to the weakening job and equity markets. Companies that will thrive in this climate of fear are those that manage consumer confidence through the turbulent times. Companies that deliver a message of value will be key to turning around the economy and determining who survives in the months ahead." The study comes as data show year to year reductions in advertising expenditures in the financial services and insurance categories. Year over year ad spending on financial services and insurance was down 13.4 percent in 2008 compared to 2007. The drop off was even sharper (-23.3 percent) for the forth quarter of 2008 vs. the same period in 2007.

More Study Findings The study also found that confidence was linked to age and affluence as well as the amount of risk associated with the financial institution. Page 12

Older adults aged 55-plus and those with assets over $100,000 were more confident than average. Banks fared much better than life insurance companies and investment firms. Overall, a minority of respondents said they had "complete confidence" in their financial institutions: -- Less than 38 percent had confidence in their checking and savings bank. -- Only 28 percent were confident of the company that manages their investment or retirement accounts. -- Only 28 percent had confidence in their life insurance company. When asked what factors would increase confidence in the safety and soundness of their financial institution, respondents cited: -- Seeing regular advertising for that institution (25 percent) -- Receiving regular mail or e-mail offers from that institution (25 percent) -- Regularly seeing internet offers/advertising from that institution (21 percent) -- Reading positive stories in the press about that institution (44 percent) The Nielsen IAG Financial Brand Confidence Study was a national online survey of 5,500 U.S. respondents. Respondents were asked questions about their confidence in the bank where they have their personal checking and savings accounts the company that handles their investments and retirement accounts their life insurance company. Respondents were also asked about the amount of advertising they had seen in the last six months for their financial companies. Finally, respondents were asked about factors that might positively or negatively affect their confidence in these financial companies.

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

Stability Drives E&O Decisions

expectations and will not compel him to change carriers. "Stability is big," Lewis says. "I probably get five to 10 solicitations a year from different markets, but even if anybody could save me 10 to 15% on my premiums, I wouldn't change carriers."

Rate increases take a backseat to carrier experience, commitment to marketplace. As the insurance industry nears the end of the soft market, agency E&O premiums are likely to rise in 2009. However the spike is unlikely to deter many independent agents who are seeking stability when purchasing or renewing their agency's E&O policy --- not the lowest price. Agents are paying closer attention to their E&O carrier's financial stability, are more open to risk management solutions and are actively comparing the many available coverage options, according to Joni Fairbrother, E&O administrator and IAS assistant vice president at Independent Insurance Agents & Brokers of Arizona. "There are a tremendous number of options now, with 15 to 20 carriers in the E&O marketplace," says Fairbrother. "In today's economy, agents are looking at E&O coverage as a long-term investment. Price is important, but agents are also looking for E&O to be one stable area where they won't have a burden." Jeff Lewis, director of Southwest Insurance Brokers, LLC in Phoenix, Ariz., says a recent increase in his agency's E&O premium was consistent with his

Ronnie Tubertini, president of SouthGroup Insurance Services in Ridgeland, Miss., agrees and believes the price is only part of the equation when it comes to shopping for coverage. "In a soft market like we're in today, companies come in and out of the E&O business," he says. "I'm looking for a company that has a lot of experience, and I'm not going to change companies just because my premium increases somewhat." When Mark Priestaf, president of Servant Insurance Services in Franklin, Wis., launched his agency in July 2008, he didn't look for a bargain; instead he sought out an established E&O carrier for coverage. "I didn't shop the market," he says. "For me, it's a trust factor. I hope my clients trust me, so I place the same trust in my E&O carrier."

Veronica DeVore (veronica.devore@iiaba.net) is Big "I" writer/editor.

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

Another Inconvenient TRUTH T

here has been a disturbing trend loss development of older accident years in the workers' compensation insurance industry. As the 'tail' grows for claims over ten years old, adjusters find themselves having to re-evaluate these claims and consider reserve adjustments. So what are the active factors that are lending to the increased costs on these older files? Studies indicate that the growing cost of prescriptions and their possible overutilization on compensation claims has increased significantly. In New Mexico, injured workers receive lifetime medical benefits for their injuries, provided they can show that the need for treatment is still a consequence of their work related injury. As such, certain factors must be considered when setting reserves on these cases, such as age, lifespan, previous injuries, and return to work status. However, there has been an interesting trend within the occupational medicine community to treat workers' compensation patients by employing pharmaceuticals as the primary source for pain management therapy as opposed to other forms of rehabilitation. Studies from NCCI nationally, and data from New Mexico Mutual within the state confirm that the main driver of rising claims costs on cases ten years and older are mostly due to prescription drug costs. In fact, New Mexico Mutual Claims Director, Cecil Rudd, states that his claims staff has to adjust reserves on some of these claims each year to account for the rising medical and pharmaceutical costs. Rudd says that there are two ways to help curb the rising medical costs in the future: aggressive treatment plans from the treating physicians, and the ability to offer a final settlement with the worker. Many medical case studies have been conducted over the years comparing recovery cycles for different patient groups. Among those studies are results comparing average recovery times for injured workers and for non-work related injured people who have suffered similar types of injuries. Time after time, recovery from work related injuries exceeds recovery time for the same non-work related injury. Because of this underlying tendency many doctors choose not to treat these patients because it is so difficult to achieve a positive outcome.

Page 14

By Michael Zambrano Cecil Rudd, Contributor

Because of the challenge injured workers present to occ-med physicians, Rudd sees an opportunity for new pain specialists, therapists, and other work comp providers to fill a widening gap in the medical community. Rudd says that by bringing more medical specialists into the work comp arena, injured workers and medical providers may begin to focus on more proactive recovery plans like work hardening, rehabilitation, and ultimately, independence from the medication that is causing claims costs to rise. The other factor that Rudd says may assist in combating the escalating prescription costs on the older claims is the ability to settle cases with the worker. While workers have lifetime medical benefits under the current workers' compensation statute, their indemnity benefits are limited to a set number of weeks, determined by the type of injury suffered. A recent legislative change which awaits Governor Richardson's signature, would allow the worker and the employer/carrier to settle lingering claims with a settlement offer. The worker could receive a lump sum of money in return for a signed agreement that the employer's obligations are complete. This would relieve the employer/carrier of the burden of maintaining the management of the claim, and might also give the worker some added incentive to get back to work. Through aggressive settlement of cases and addressing effective pain management with new and existing workers' compensation doctors, it's hoped that the trend of escalating claim costs on older case files can be curbed, thus giving workers, doctors, and insurance carriers positive results.

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

L&H Trends

Before or After - Tax?

by Dave Evans

Help your clients make the best choice for their retirement funds.

One of the vexing questions Americans saving for retirement have to consider is whether it's better to save before-tax or after-tax dollars. The answer to this question usually depends on a number of factors the saver needs to review, and one of the most difficult variables deals with income taxation. The question actually contains two parts: 1) will the saver be in a higher, lower or the same tax bracket in retirement and 2) what will the tax rates actually be? The traditional notion is that a worker will be in a higher tax bracket while working and then in retirement, when their income decreases, so will their income tax rate. But, if income tax rates increase, depending on the person's income at the time of retirement, their tax bracket and resulting taxes could be higher than when they were working. It does not appear that income taxes will rise in 2009, but they will go up for families who earn more than $250,000 with the expiration of the Bush tax cuts beginning next year. Also, for people investing in the stock market, the current maximum capital gains rate of 15% will also increase to 20% (or possibly more) in 2011. In fact, if someone is saving on a before-tax basis through a 401(k) plan or IRA or if they are investing in the stock market and believe the recent market decline will result in attractive long-term returns, they will presumably be better off investing through a ROTH IRA or holding the stocks or mutual funds on an after-tax basis than having them taxed at the long-term capital gains rate when they retire. However, if an individual is currently in a high tax bracket and expects to be in a lower tax bracket at retirement, he or she will be better off purchasing the stocks on a before-tax basis through their 401(k) plan or their IRA while they are working.

reality is that higher net worth individuals or those with significant life insurance that is not structured through an irrevocable life insurance trust (ILIT) will have to consult with their accountants or attorneys to consider whether estate taxes will factor in the equation. The reason is that if someone has accumulated a before-tax retirement account such as a 401(k) plan or IRA, they could get with a double whammy: income taxes on their withdrawals while they are alive and income taxes for non-spouse beneficiaries who receive funds after the account holder's death. In addition, the decedent's estate could owe significant estate taxes on the amount being transferred. For some high net worth individuals, the use of permanent life insurance can be a more efficient way to accumulate assets that can be passed income tax and estate tax-free to the beneficiaries. Most Americans will not have to be concerned about estate taxes. However, the decision to save before taxes or after taxes will depend on a number of considerations, and the discussion is made more difficult by the uncertainly of the estate tax exemption and the estate tax rate that may be in effect when they die. Independent agents are advised to have a conversation with their customers to alert them to these issues as they attempt to rebuild their retirement assets.

Most mutual fund company Web sites have retirement planning software that will allow the user to plug different tax scenarios and timeframes. But before a taxpayer focuses solely on income taxes, there is another, more difficult consideration: estate taxes. While most Americans will not have to be concerned with estate taxes, the Page 15

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

Contractor's License Bond Changes by Heather Winkel, Director of Public Outreach, CID In 2008, the legislature passed a CID initiative pertaining to the bonding requirements for construction industries licensees. The initiative repealed the statutory language of NMSA 1978 ยง60-13-49, the statute that requires CID licensees to carry proof of "financial responsibility". As we all know, the current bond requirement for licensing establishes permitting capacity and allows CID to attach the bond for any fines or penalties assessed by the Division. Any funds collected under this statute are deposited into the state general fund and do not benefit either the consumer or the Division. The change in the law is one component of CID's Consumer Protection Legislative Initiatives. The new language, effective July 1, 2009, is tied to written complaints CID's Compliance Bureau receives alleging building code violations; an individual looking to collect monies from the bond must participate in CID's investigation complaint process. In a nutshell, that process includes: establishing that code violation(s) exist; that it is attributable to the contractor complained of; and that the licensee does not or cannot correct the violation. CID will issue a certification of uncorrected code violation to the licensee, bonding company, and the owner of the structure if requested.

Page 16

When the complaint process is completed, the owner of the structure may apply to the surety company holding the bond. The person making the claim must submit a copy of the CID certification of uncorrected code violation, three estimates limited to the cost of repairing the violation, and a copy of the certificate of occupancy for the structure. In addition, the owner must notify CID, in writing, that a claim has been filed. The Division anticipates that payment on the claim can be made only to the owner of the structure for the repair of the certified violation in the amount of the lowest estimate provided by the claimant. The new bonding requirement does not affect CID's authority to take disciplinary action against a licensee. A surety company will notify CID at the same time it pays a claim, and the Division will monitor that particular licensee to ensure it has a bond in place. If the licensee does not provide proof of compliance with financial responsibility, the Division may request approval from the Construction Industries Commission (CIC) to proceed with a Notice of Contemplated Action for failure to comply with the Construction Industries Licensing Act. In the near future, the Division intends to proceed to public hearing in order to obtain comments from interested parties (public hearings are also required by law) pertaining to the rules. For dates, times, and locations, visit the CID website at www.rld.state.nm.us/cid or call Heather Winkel at 505-476-4686.

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

recent article in NU Online noted that Allstate was cutting 1,000 jobs from its life unit over the next two years. This is just a little more than two years after a page one article in the Wall Street Journal (November 24, 2006) announced Allstate's great new sales strategy: life insurance. As I noted in an article I previously wrote regarding Allstate's life insurance strategy, the odds of success were minimal because P&C producers are rarely good life insurance salespeople and Allstate's management's inability to accept this reality and the need to manage life investments differently doomed the effort. Allstate's mistake provides a very big lesson because they violated fundamental strategic planning rules right from the beginning. This lesson can be applied to carrier stability and agency success.

Carrier Stability

Stick to the Core

The probability of success is limited when carriers expand beyond their core competency. This includes endeavors such as line expansion, becoming an agency themselves while remaining a carrier too (which some are contemplating and others have already quietly implemented), huge market share expansion, and so forth. Most such endeavors ultimately fail because they lie outside the company's core competency. The odds of success for all companies decline significantly the further the endeavor is away from the company's core competency. (See Chris Zook's books Profit from the Core and Beyond the Core for an excellent analysis of this issue.)

Life insurance may not seem far from P&C, but it is another world and people with significant experience working with both recognize the gulf between the two. How many truly competent producers have you ever met that can sell P&C and life insurance with significant success? By "significant" I mean the producer has at least $500,000 in P&C commissions and $200,000 in life commissions annually, maybe not the same year, but the producer can regularly sell that much in either line. Such people are more rare than diamonds and this rarity is what makes it so easy to predict that a P&C carrier's effort at significant organic life sales will meet limited success. And buying a life insurance company or a life carrier buying a P&C carrier does not count, because anyone with enough cash or access to enough credit, can buy anything. Shopping in general is not a skill. Shopping well is. How many high quality P&C carriers also have high quality life products? Not many. Some companies will point to how big their sales in both categories are, but that particular metric is meaningless. The key metric for measuring true success is whether the company is organically growing both their P&C premiums and life premiums at a pace that exceeds industry average without underpricing either product, as measured by their combined and operating ratios, while reserving properly. In other words, are both divisions truly winners? Just think about how a number of life operations have severely injured or placed at risk various carriers' P&C operations the last few years. I do not believe the problem is life insurance per se, but the issue is life insurance is outside these carriers' core competency. The measure of profitable growth should also consider leverage. Credit has been so cheap for so long, and by many measures remains cheap today, that many carriers' profits and profit growth owe much to the fact that they Page 17

borrowed huge sums and leveraged themselves to make their operations seem much more profitable than they really were. One form of cheap leverage is insurance premiums, so the possibility distinctly exists that some diversification efforts had little to do with entering new product lines and everything to do with accessing cheap capital. A similar diversion that has led to disaster for a few small P&C carriers is their effort to write surety business. One such carrier recently had the distinction of being the only surety carrier out of the top 100 with a loss ratio over 100% in that line, where the average is usually around 30%. Surety is clearly outside the core competency of almost all small P&C carriers unless they have a long history of such a specialty. Staying near one's core competency is critical for success.

Agency Success These lessons are 100% applicable to agencies. I see many commercial agencies wishing they had a big personal lines book right now, which I completely understand. But to start doing personal lines from virtual scratch does not have a high probability of success because personal lines requires a different core competency than commercial lines. The distance between personal lines and commercial lines is not so far that an agency cannot achieve success if it exerts significant effort, expense, and considerable leadership. Success often alludes commercial agencies though because the different core competencies are usually ignored or misunderstood, which then leads to the mistaken belief that growing personal lines does not require a huge effort and significant expense. This is why so many personal lines departments in commercial agencies are the disregarded stepchildren. by Chris Burand

The same is even more true with benefits departments. Too many P&C agency owners believe benefit sales are easy, require little effort, and no special skills or services. They are correct if all they ever hope to achieve is $200,000 - $400,000 in benefit sales. To do better requires producers that specialize and are experts in benefits. Benefit specific value-added services are also required because every agency is selling the same health insurance policy for the same price, so the agency has to differentiate itself somehow. MMC recently announced an endeavor to expand beyond their core competency. Their plans to expand into much smaller retail commercial accounts is a huge departure. Since they have announced they will initiate this strategy through huge acquisitions, their success should be judged on their true organic growth of the agencies they purchase. The normal measure offered in press releases is that commissions grew by some huge percentage and then in small print they add, "due to x number of acquisitions." The business press does a huge disservice to their readers by inadequately distinguishing organic growth from total growth. Growth due to acquisitions should be totally ignored because anyone can buy business. The real measure will be whether they grow those acquired books or if the books become wasting assets, as is the case for many consolidators. It will be very interesting to watch MMC and see if they can succeed outside their core competency when the vast majority of such efforts fail. The key for greater success is to focus on one's core competency. What is your agency's core competency? What is your agency's core market and core client type? What is your agency doing outside its core? Is it truly successful?

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

Technology Tempers Tough Times

by Veronica DeVore

Technology helps agencies cope with the difficult economy, soft market. In a time of belt-tightening and cost-cutting, technology is helping many independent agencies save some pennies by reducing operating costs and giving producers more time to focus on sales. Many agencies are maintaining or increasing spending on technology products even as they trim budgets in other areas. Having a predictable monthly technology cost, going paperless, integrating phone systems with the Internet, using dual-screen monitors and increasing reliance on Internet and e-mail communication are just a few tech trends helping agencies through the economic downturn, according to Michael Curry, president and CEO of Curry Computer Technologies in Pasadena, Calif. "Agencies are spending more on IT and less in other areas because they realize that technology is there to work for them and make them more efficient," Curry says. "Agencies are putting the money they save through technology back into sales - They're attending sales seminars, increasing marketing expenses and even putting money back into technology to continue the efficiency." John Heinsz, president of Heinsz-Schaefer-Garwitz Insurance Services in St. Charles, Mo., found going paperless enabled his agency to maintain staff despite decreased revenues. His staff transfers the time saved by technology directly to clients.

Page 18

"We're trying to round out accounts, and now we have time to really look at a client's coverage and realize if they're missing something," Heinsz says. Long-term investments in technology are helping agencies to continue to grow, despite difficult economic and market conditions. According to Brian Bartosh, president of the Top O' Michigan Insurance in Alpena, Mich., his agency has grown, despite the odds, because it views technology investments as mandatory expenses. "We felt that technology was an ongoing project," he says. "We've hired new producers and just opened a brand new office. Technology made those things possible because with rising costs, some of our expenses that were thought to be out of control aren't." Bartosh cites live web chat with clients, an electronic receipt process and converting print ads to online banner ads as major cost savers. Automating simple tasks like faxing and mailing frees his staff to focus on communicating with clients. Lisa Parry Becker, co-chair of the Real Time / Download Campaign and vice president of William B. Parry & Son Insurance in Langhorne, Pa., says real time and download features have cut her agency's quoting time in half. "Real time directly affects our ability to go out and sell," Parry Becker says. "Technology is the backbone of our agency, and it gives us a strategic competitive advantage in a difficult market."

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

The Producer Compensation Debate Experts share insights on how to properly compensate producers. One of the most common questions the Virtual University's "Ask an Expert" service receives deals with how much an agency should compensate its producers. Unfortunately, there are probably as many answers as there are agency principals asking this question. Numerous articles have been written about the subject, but there is still no clear, absolute best way to compensate a producer, nor is there a certain commission appropriate for every agency and every producer. Some agencies don't even operate on a commission basis anymore; instead, they use a salary and bonus, or profit-sharing plan.

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The appropriate plan for your agency depends on many variables with seemingly infinite combinations. The following are some suggestions from the VU's agency management experts, including Chris Burand, Judi Newman, Al Diamond and Howard Candage. There are no average renewal commissions that should be paid. The average is 35-40% on commercial and 0-20% on personal lines. The split is anything and everything from 70% new/0% renewal to 20%/20% for commercial. For personal lines, the variance is even greater. The "right" answer depends on the support the producer receives, the kind of business being written, whether the agency or the producer pays expenses, what the producer writes, how much experience the producer has and how big a book the producer has. Anyone who uses "industry averages" is sure to get the answer wrong, and it is indeed difficult to appraise the value of a producer. The key in commercial lines is that the producer must usually produce at least $200,000 in commissions annually for the agency to break even at any split if the producer is paid more than 33% on renewals. On average, most agencies pay between 25% and 30% renewal, but this does not usually include personal lines. Personal lines most often involve a one-time payment (either a set amount like a finder's fee or the first-year commission only). New commission on commercial lines is usually 30% to 40% first-year only. In small to medium sized agencies typical splits are: • Personal lines: 50% new, 25% renewal • Small commercial: 40% new, 30% renewal • Commercial: 40% new, 30% renewal This varies by region of the country; however, it is important for agencies to understand that they can only pay what they can afford. The average spent on producers in the industry is between 30% and 33% of the commission dollar. Some agents pay salaries, some a single commission rate, some split commission with more for new business than for renewal, some pay a base and growth split (e.g., 25% on up to the total commission of the producer last year -- 35% on growth beyond last year's commission). Some new producers are making 40-50% of their new commission and around 20 or 25% of their renewal. The agency that returns 25% ROI after owner-base compensation and sales compensation is doing a good job, and 30% is even better. That means the agency is losing money on new business and, at 25% on renewals, is giving the producer most of the money made. That being said, the remaining 75% includes producer compensation, so 25% on renewals seems fair if that includes the total compensation package plus benefits. If an agency is paying a salary plus commissions and benefits, it could find itself stretched quite thin. To read the entire article, click here.

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

TheFloodParadox of Insurance Coverage The Paradox of

Government as Primary Insurer

By Robert Redfearn, Jr. SOURCE: Insurance Journal

Whether you are an attorney, an insurance agent, adjuster or broker, or an individual insured, when dealing with claims under flood insurance policies, you may be surprised to discover that many things you think you know are wrong, and, particularly for insureds, many things you think you don't know, you are deemed to know. This is a paradox of flood insurance coverage. In this litigious day and age, lawsuits alleging breach of the insurance policies, bad faith, unfair claims handling, unfair settlement practices or negligence by an insurance agent are so common that they are not considered particularly unique or as requiring specialized knowledge by most attorneys practicing in the area of insurance defense. But, until recently, the amount of litigation involving claims under flood insurance policies was fairly insignificant, particularly compared to litigation involving general liability and non-flood related property insurance. However, the widespread flooding recently experienced in the United States beginning with Hurricane Katrina in 2005 through Hurricane Ike in 2008 led to a relative explosion of litigation in which recovery under flood insurance policies or the alleged negligence of insurance agents in procuring or failing to procure flood insurance was a central issue. As a result, attorneys, insurers, insureds and the courts have confronted issues unique and peculiar to flood insurance claims which had not been fully addressed in the past or which were not widely understood. Two of the more significant issues addressed in the flood insurance related litigation are whether all claims related to recovery under flood insurance policies - including claims against insurance agents - are preempted by federal law or whether they are otherwise subject to limitations imposed by federal law. The number of opinions issued since 2005 addressing these two issues illustrates the uncertainty in the answer to these questions. While the judicial decisions have since begun to reach a consensus, the application of that consensus to individual cases still requires some fleshing out.

What makes a flood insurance policy unique from homeowners or commercial property insurance policies is that flood insurance is underwritten by the federal government. In 1968, Congress enacted the National Flood Insurance Act (NFIA) as a means to provide affordable flood insurance to the general public because premiums charged by private insurers had risen dramatically following significant flood losses from hurricanes and other catastrophes. As a result of the NFIA, the U.S. government became the primary insurer against damage from flooding. The U.S. flood insurance program is administered by the Federal Emergency Management Association (FEMA). As administrator of the program, FEMA promulgated the Standard Flood Insurance Policy (SFIP) through regulations published in the Code of Federal Regulations. FEMA regulations also set the terms of the SFIP, its rate structure and premium costs. The SFIPs are issued to the public either directly by FEMA or through private insurers operating as "Write Your Own" (WYO) companies. WYO companies issue the SFIPs in their own names and handle the adjustment, settlement, payment and defense of all claims arising under the flood insurance policies, but the policies remain underwritten by the U.S. government and claims are paid out of the U.S. Treasury. Preemption of Flood Insurance Claims Following Hurricanes Katrina and Rita, many of the thousands of lawsuits filed by insureds included claims asserting various state law causes of action for bad faith claims handling and adjustment of flood insurance claims, and also claims for misrepresentation or negligence by insurance agents in connection with the procurement or failure to procure flood insurance. Accordingly, a predicate issue which the courts had to decide was whether these state law claims were preempted by federal law. Because Louisiana, Mississippi and Texas incurred some of the most signifi-

continued...

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

Subsequently, the Fifth Circuit issued an opinion clarifying that Spence did not hold that none of the available state law claims against WYO companies were preempted by federal law, but only that extracontractual state law claims against WYO companies were not preempted. But, for cases filed after the Dec. 31, 2000, effective date of FEMA's amendment to the SFIP, the Fifth Circuit held that all state law tort claims, including extracontractual claims, arising out of claims handling by a WYO company under a flood insurance policy were preempted by federal law. [Richmond Printing, L.L.C. v. Director Federal Emergency Management Agency, 72 Fed. App. X. 92 (5th Cir. 2003); Gallup v. Omaha Property & Casualty Ins. Co., 434 F.3d 341 (5th Fir. 2005).] Since these pronouncements by the Fifth Circuit, courts have drawn a distinction between state law causes of action arising from claims handling of flood insurance and those arising out of procurement of flood insurance coverage, holding that the former are preempted but the latter are not.

As a result, numerous district courts in the Fifth Circuit have concluded that even if an insurance agent or WYO company makes a representation that is contrary to the provisions of the SFIP as contained in the Code of Federal Regulations, it is unreasonable as a matter of law for the insured to rely on such representation, notwithstanding that the insured may look to the insurance agent as an expert or how confusing the regulations may be. At least one district court outside of the Fifth Circuit has suggested that while constructive knowledge of the SFIP may prevent an insured from asserting misrepresentation as the basis of a contract or estoppel claim against the U.S. government, it should not apply in the context of whether an insured's reliance on the misrepresentation was reasonable for purposes of a misrepresentation claim against the insurance agent or WYO company themselves. [Padalino v. Standard Fire Ins. Co., 2008 WL 4630585 (E.D. Pa. 2008)] However, thus far, courts in the Fifth Circuit do not appear inclined to follow this view.

rance A

gents

One court has noted that "procurement" cases, which are not preempted, "include claims that the insurance agent failed to procure coverage having been asked to do so, or where the agent failed to increase the coverage over time, where the agent failed to recommend flood coverage, and where the coverage had lapsed and the agent had failed to inform the plaintiff of the loss of coverage." [Valerie v. Fidelity & Deposit Co. of Maryland, 2007 WL 2446100, n. 4 (W.D. La. 2007)]

Specifically, most procurement claims allege misrepresentations by the insurance agent or the WYO company about an insured's need for flood insurance or the amount of flood insurance coverage available. The Fifth Circuit has held that insureds have a duty to read and understand the terms of their SFIP, and, even if they do not have a copy of the SFIP, they are charged with constructive knowledge of the terms of the SFIP because it is published in the Code of Federal Regulations. This knowledge is imputed to the insured "regardless of actual knowledge of what is in the regulations or of the hardship resulting from innocent ignorant." [Richmond Printing, L.L.C. v. Director of Federal Emergency Management Agency, 72 Fed. App. X. 92 (5th Cir. 2003)]

However, effective Dec. 31, 2000, FEMA amended the SFIP to provide that "all disputes arising from the handling of any claim under the [flood insurance] policy are governed exclusively by the flood insurance regulations issued by FEMA, the National Flood Insurance Act of 1968 as amended (42 U.S.C. §4001, et seq.) and Federal Common Law." [44 C.F.R. Pt. 61, App. A(1) art. 9 (2001)]

Although these rulings permit state law causes of action to be brought against insurance agents or WYO companies in connection with their procurement of or failure to procure flood insurance policies, at the same time, many courts have issued rulings suggesting that it will be impossible to prevail on most procurement related causes of action.

of Ne

Subsequent courts interpreted Spence as holding that the SFIP and FEMA regulations did not preempt state law tort claims against WYO companies.

What the Right Hand Giveth, the Left Hand Taketh Away

Indep e

nden

t Insu

“Today I Will Broaden My Career In Insurance.”

exico 1511 U Albu niversity quer Blvd q wk: ue, NM . NE (5 8 fax: 05) 843 7102 (505 -72 iian ) 243-3 31 m@ii 36 www anm.o 7 rg .iian m.or g

cant flooding due to hurricanes in the past few years, the Federal Fifth Circuit Court of Appeals and the Federal District Courts within that circuit have issued a number of opinions addressing the issue of federal preemption. In the 1993 case of Spence v. Omaha Indemnity Insurance Co., the Fifth Circuit held that federal common law governed claims under flood insurance policies, but state law provided the statute of limitations for misrepresentation claims brought against the WYO companies that issued SFIPs. [Spence v. Omaha Indemnity Ins. Co., 996 F.2d 793, 796 (5th Cir. 1993)]

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Page 21

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

From the Wild, Wild West to the Best of the Best! IIANM Celebrates our 75th Anniversary in 2009! We would like to invite everyone in the Association to celebrate our collective success in this endeavor, so throughout 2009, we will be announcing a number of fun and informative initiatives to commemorate this milestone year. Every month La Voz will feature a trivia question where the answers can be located on our web site.

! e fl f u h S d in an iPo

W Last month's WINNER!! Carol Edison, Manual Lujan Agencies

This month's trivia question is:

"How Many 'LP McCord National Education Awards' has IIANM Won?"

Email your answers to rachel@iianm.org by April 10, 2009. On April 13, there will be a drawing for the winner from the correct entries. Look out for next month issue of La Voz for your next chance to win!

2009 Company Partners

Diamond

New Mexico Mutual Gold Mountain States Insurance Group Builders Trust of New Mexico / Letcher Golden & Associates

Silver Allstate Workplace Division Cresta Insurance, LLC FirstComp MetLife Home & Auto Page 22

IIANM gratefully acknowledges the following companies, who are our 2009 Company Partners. They have generously agreed to support all our major conferences and events held in 2009. Without their assistance, fees for these events would be significantly higher and/or the quality of programming would be restricted. IIANM's Partners Program is a special program for insurance companies and others who support the Independent Insurance Agents of New Mexico on an on-going basis. Become a Partner! We invite companies to experience the enormous networking, recruiting, and branding opportunities presented by becoming an IIANM Corporate Partner. Our Associate's Partnership program puts supporters' front and center in a meaningful and memorable fashion. Click here for full details and registration form. If you have any questions, please call VP of Membership, Lorri Gaffney at (505) 999-5805 or send an email to lorri@iianm.org. Independent Insurance Agents of New Mexico - www.iianm.org - * April 2009

Fraud News & Review

SOURCE: North American Training Group

Fraud Making News

he National Conference of Insurance Legislators agreed to develop a model law targeting airbag theft and fraud after hearing a report by the coalition’s Howard Goldblatt last week. “Airbag theft and fraud continue to be a problem and public-safety issue, both for consumers and insurers,” Goldblatt told the legislators. The coalition will work closely with NCOIL to draft the model.

he New York state Supreme Court has dismissed a fraud suit by Progressive Insurance against an independent body shop in Bedford Hills. North State Custom Auto had tried to defraud Progressive for repairs of a one-year-old Mercedes that had rolled down an embankment, the insurer argued. Progressive had estimated damage at $26,000 but the shop invoiced for more than $34,000. The family-run North State is one of the few repair shops CL Class certified by Mercedes-Benz in the state. Progressive says it plans to appeal.

od Schaffer shook down restaurant insurers for at least $36,000 with 21 bogus claims for the same broken front tooth, Massachusetts prosecutors charge. The Brookline man chipped the tooth for real when he chomped a piece of plastic in his salad at a restaurant. He collected for the incident but never had the tooth fixed, prosecutors say. Instead, Schaffer allegedly went to chain restaurants with a small object such as a pebble or piece of plastic. He’d order a salad then complain he’d chipped his tooth on the object. Schaffer then used fake names and the original medical treatment estimate for insurance claims. He changed the dates and other info each time, officials say. An insurance-company investigator noticed five suspicious claims that had different names but the same cell-phone number. The Massachusetts fraud bureau investigated, which led to the bust.

committee in the New Mexico Senate quashed a bill adding insurance fraud to the state’s racketeering law. SB 118 would’ve given fraud fighters another tool to target fraudsters, especially larger, more-complex schemes. Also dying was a bill allowing courts to aggregate the amount of stolen money when determining penalties. SB 117 was caught in a logjam in a House committee, and died on adjournment.

ill professional wrestler Michael Taris take a real fall in court? The man kept body-slamming opponents in the ring after lying that he injured himself when slipping on a puddle of coffee on the tiled floor of a 7-Eleven, the state AG charged this week. Taris said he couldn’t work, play with his son, cut grass, or sit or stand for long periods of time after hurting his back, neck and legs. But the injury was a slip-and-fall insurance shakedown for $50,000, prosecutors say. Surveillance video allegedly caught Taris being thrown against the ropes and tossed out of the ring in pro wrestling matches, prosecutors say. Taris also kept working as a male escort and massage therapist. He admitted he’d fallen on hard times—but not the 7-Eleven floor— and needed insurance money to help make ends meet, prosecutors say.

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

FRAUD AND SIMULTANEOUSLY EARN CE CREDITS, VISIT THE BIG

Volume 21 Volume 22 Volume 23

"I" VU FRAUD TRAINING CENTER FOR ON-LINE COURSES,

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

Page 23

LEARN MORE ABOUT INSURANCE

RESOURCES & DAILY NEWS

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

Gaps

Most Insureds Have Cyber-Risk in Their Coverage Have You Discussed this With Your Clients? By: Jack Fries As companies become more dependent on their computer networks for vital data, business continuity and communications, their vulnerability to cyber catastrophes increases. Unfortunately, most companies are operating in a 21st century threat environment with 20th century insurance coverage. The developments in the field of risk management have changed with technology."

attack on a company's network that limits the ability to conduct business, such as a denial-of-service computer attack. Coverage also includes extra expense, forensic expenses and dependent business interruption.

The insurance industry has developed cyber insurance products to help businesses confront the growing number of network security risks that have the potential to shutdown a network, destroy vital data or steal customer information. For example, as the public becomes more concerned about privacy, businesses will become more aware that they are liable if their customers' personal information is compromised. However, only a small number of businesses are reportedly properly insured.

*Breach of privacy due to theft of data (such as credit cards, financial or health related data),

According to a recent Ernst & Young survey, only seven percent of respondents knew they had a specific insurance policy geared to this network and cyber-risk. Nearly a third (33 percent) thought they had coverage they actually lacked. Another 34 percent knew they lacked such coverage, while 22 percent didn't know the answer. Ernst & Young characterized the fact that only 7 percent of surveyed companies had cyber insurance as "astonishingly low, given the risk environment and the fact that general policies don't provide such coverage."

*Rendering of Internet Professional Services, and

Regardless of its product line or service, virtually all major businesses today rely on computer networks to function, but they need to recognize that network security risks are fundamentally different than traditional physical risks like fire. If a hacker or virus shuts down a network or destroys computer software or data, most businesses today have either limited or no coverage. Insurers have excluded these risks from standard commercial policies and are now offering stand alone coverage. Whether your client conducts business over the Internet, stores customer data on servers or simply uses email, it is at risk. By writing policies for network security exposures, the insurance industry is providing: (1) Vital risk transfer for network security exposures; (2) Incentives for network security best practices, including lower insurance premiums; and (3) Improved cyber-risk management and education. Coverage Traditional insurance policies such as standard property and commercial general liability insurance do not adequately deal with the risks of a cyber attack or network security failure. Specialized cyber-risk coverage is available primarily as a stand-alone policy. Each policy is tailored to the specific needs of a company, including the technology being used and the level of risk involved. Both first- and thirdparty coverages are available, including: Loss/Corruption of Data - covers damage to or destruction of valuable information assets as a result of viruses, malicious code and Trojan horses. Business Interruption - covers loss of business income as a result of an Page 24

Liability - covers defense costs, settlements, judgments and, sometimes, punitive damages incurred by a company as a result of:

*Transmission of a computer virus or other liabilities resulting from a computer attack, which causes financial loss to third parties, *Failure of security which causes network systems to be unavailable to third parties, *Allegations of copyright or trademark infringement, libel, slander, defamation or other "media" activities in the company's web site. *Cyber Extortion - covers the "settlement" of an extortion threat against a company's network, as well as the cost of hiring a security firm to track down and negotiate with blackmailers. *Public Relations - covers those public relations costs associated with a cyber attack and restoring of public confidence. *Criminal Rewards - covers the cost of posting a criminal reward fund for information leading to the arrest and conviction of the cyber-criminal who attacked the company's computer systems. *Cyber-Terrorism - covers those terrorist acts covered by the Terrorism Risk Insurance Act of 2002 and, in some cases, may be further extended to terrorist acts beyond those contemplated in the Act. *Identity Theft - provides access to an identity theft call center in the event of stolen customer or employee personal information. Depending on the policy, coverage can apply to both internally as well as externally launched attacks as well as viruses which are specifically targeted against the insured or widely distributed across the Internet. Premiums can range from a few thousand dollars for base coverage for small businesses (less than $10 million in revenue) to several hundred thousand dollars for major corporations desiring comprehensive coverage. Risk Prevention Services As part of the application process, some carriers offer an on-line and/or onsite security assessment free of charge regardless of whether the applicant purchases the insurance. This is helpful to the underwriting process and also provides extremely valuable analysis/information to the company's chief technology officer, risk manager and other senior executives. The Market Recent legislation and regulation such as the Gramm-Leach-Bliley Act (GLB), Health Insurance Portability and Accountability Act (HIPAA) and California's Security Breach Information Act (SB 1386), are also expected to substantially increase potential legal liabilities in this area, increasing the need and demand for cyber-risk insurance coverage.

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

49th Annual Education Seminar II ANMâ&#x20AC;&#x2122;s 15 Hours of Continuing Education for the Insurance Professional

March 11th & 12th The Albuquerque Hilton Hotel

We had another banner year at this past Annual Education Seminar. Thank you to all who attended, we received lots of positive feedback. We were given some terrific ideas for next year and we all hope you had as much fun as we did! We also wanted to take this opportunity to thank all of our wonderful sponsors & exhibitors who helped make this year's Ed Seminar another SUCCESS!

Lunch Sponsors:

Builders Trust of NM / Letcher Golden & Associates, Inc. Mountain States Insurance Group New Mexico Mutual New Mexico Property & Casualty Company Safeway Insurance Company

Break Sponsors: Burns & Wilcox Colorado Casualty / Safeco E&S West / Division of Med James FISIF of New Mexico MetLife Auto & Home National E&S Brokers New Mexico Health Insurance Alliance Risk Placement Services The Republic Group Travelers

Exhibitors: Allstate Workplace Division Big "I" Markets Builders Trust of NM / Letcher Golden & Assoc., Inc. Burns & Wilcox Capital Premium Financing Colorado Casualty / Safeco Insurance E&S West / Division of Med James FirstComp FISIF of New Mexico Gainsco Auto Insurance Market Finders Mass Mutual MetLife Auto & Home Mountain States Insurance Group Nation E&S Brokers New Mexico Mutual New Mexico Property & Casualty Company NIF Group New Mexico Health Insurance Alliance North American Training Group Paul Davis Restoration & Remodeling Premium Financing Specialists Priority Insurance Underwriters Risk Placement Services, Inc. Safeway Insurance Co. The Hartford The Republic Group Travelers Young Agents Organization

You’re not thinking about supplemental insurance right now.

That’s OK. We are. Imagine soaring through the sky without a care in the world. Feels good, doesn’t it? Now imagine a company that’ll help make your benefits package top notch without you having to deal with all the hassles and paperwork. Allstate Workplace Division offers a broad range of supplemental insurance, from life to health to disability. We handle enrollment, process claims quickly and save you tax money with Section 125 qualified plans. So call today and get ready for lots of blue skies ahead. Call 1-444-444-4444 to set up an appointment with one of our Agents. Then kick back, Call to setWorkplace up an appointment with Greg Sandoval. Then kick back, relax and let Allstate relax505-228-4279 and let Allstate Division take care of all your supplemental insurance needs. Workplace Division take care of all your supplemental insurance needs.

Allstate Workplace Division is the marketing name for American Heritage Life Insurance Company, a wholly-owned subsidiary of the Allstate Corporation. All products are underwritten by American Heritage Life Insurance Company, Jacksonville, FL. www.allstateatwork.com

the Year W f o R S C A inne 8 0 r! 20

Jeff Straight, IIANM Education Director, Deandra Wiggins, Woods Insurance, Thom Turbett, IIANM CEO

Deandra Wiggins, ACSR of the Year! Deandra A. Wiggins, ACSR, of Woods Insurance Services in Farmington, NM was named New Mexico's ACSR of the Year. She joined the Woods team four years ago and is the Life and Health Department Manager. Deandra has more than 17 years of experience in the insurance industry and has demonstrated her commitment to continuing education by earning her ACRS Life and Health designation 2008. Wiggins stood out among the candidates for the ACSR of the Year honor because she consistently goes beyond the call of duty. Her professionalism, time management skills, and exceptional work ethic were among the many attributes that were highlighted in letters recommending her for the prestigious award. Wiggins is also honored for her exemplary contributions to her agency and clients by being named agency employee of the month twice in 2008. Deandra lives with her husband and 3 children in Aztec, NM. They enjoy participating in rodeo, 4-wheeling and camping. In 2008, Deandra and her husband adopted a little girl. Her oldest son is graduating from high school this year and races 4-wheelers. Her younger son is involved in high school rodeo and won his age group in bull riding at the San Juan County rodeo. The ACSR program is a nationally recognized designation that provides participants with a strong insurance foundation, customer service skills and the technical knowledge necessary to succeed in today's agency environment. Nearly 15,000 agents and brokers have achieved the ACSR designation, which is available in personal lines, commercial lines or life/health. ACSR modules have been approved in New Mexico for continuing education credit for agents' license renewal. "We encourage agencies to celebrate and recognize their outstanding ACSR employees like Deandra Wiggins," says Thom Turbett, IIANM's CEO. "The personalized service of a CSR can be the differentiating factor for a consumer with many insurance buying options. CSRs demonstrate their commitment to the agency and its clients by earning the ACSR designation."

On-Line CE Self Study Center Is Improved The Learn Center, Virtual University's on line self study training center, has been improved and is ready for your use. The new learn center is much easier to navigate and will provide an alternative for CE courses geared to your schedule. You can take a class at any time from any location you have computer access. If you or your agency are watching your expenses this year, this is an alternative option to meet your annual CE requirement while getting valuable training. The online classes can be found under CE Requirements on the Education tab of the IIANM website homepage. To receive Member's pricing, you will need your login when you register. Click here to check out the course offerings. The other features of the Virtual University, found on the Members Resource tab or the Virtual University tab of IIANM's home page, remain the same. Page 27

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

Golf Tournament 15th Annual Scholarship

May 18th, 2009

Tanoan Country Club

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

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

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

Mail or fax this form back to us:

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

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

Golf Tournament

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

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

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

• • • • • •

Eagle Sponsor $1,000 - $2,500 • • • •

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

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

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

Birdie Sponsor $500 - $999 • • • •

Par Sponsor up to $499

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

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

Fax:

Sponsorship Level Selections:

E-mail: Play as one team

Hole-in-One Sponsor

Willing to play on various teams

Double Eagle Sponsor

Eagle Sponsor

(4 players to include) Name Name Name Name

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

Birdie Sponsor (2 players to include) Name Name

IIANM 1511 University Blvd. NE Albuquerque, NM 87102

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

$100 per person

Fax:

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

Yourself Name Name Name

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

Golf Tournament 15th Annual Scholarship

May 18th, 2009

Tanoan Country Club

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

Nominee’s Phone Number Day:

Night:

Mailing Address (If different from above):

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

Person Nominating:

Company:

Contact Information:

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

www.colonialgeneral.com

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

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

Commercial Lines/Brokerage Department • Preferred BOP

• Property

• Inland Marine

• Professional Liability

• Commercial Liability

• Workers Compensation

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

Transportation Department • Truckers

• Physical Damage

• NB Mexican Truckers

• Local Radius

• Garage

• Intermediate Radius

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

Personal Lines Department • Masterpiece Company

• Standard Company

• Umbrellas

• Stand-alone Liability

• Vacant

• Seasonal

• Dwelling Fire

• Homeowners

Preferred Commercial Lines Division

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

IIANM’s

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

Pre-Licensing Study Materials

Pre-Licensing Classes

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

Study materials are NOT included in class prices.

Property & Casualty Review Class (2 days)

Life & Health Review Class (1 day)

Regular Price: $150 Member Price: $120

Regular Price: $115 Member Price: $90

Instructor: Instructor:

Kitty Leslie Jack Cleary

- April 7 - 8 8am - 5pm - May 12 - 13 8am - 5pm

Instructor: Instructor:

Click here for a full listing of our education program.

Bob Ouellette - April 9 8am - 5pm Manny Mansour - May 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:

)

Signature:

E-Mail:

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

Page 32

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

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

Fax in: (505) 243-3367

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

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

Sunday

Monday

Tuesday

CE ‘ continuing education

Wednesday Thursday Commercial Lines Update 8 CE

P&C Pre-licensing Class

AAI 82/B Commercial Lines 8 CE

Friday

Saturday

L&H Pre-licensing Class

8 E&O Workshop

Classifieds

Page 33

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

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

Earth Day!

Ends n s

April 22

Od d

The story goes that Earth Day was conceived by Senator Gaylord Nelson and his assistant Denis Hayes after a trip they took to Santa Barbara right after the horrific oil spill off our coast in 1969. They were so outraged by what they saw that upon returning to Washington Senator Nelson passed a bill designating April 22 as a national day to celebrate the earth. Earth Day 1970 achieved a rare political alignment, enlisting support from Republicans and Democrats, rich and poor, city slickers and farmers, tycoons and labor leaders. The first Earth Day led to the creation of the United States Environmental Protection Agency and the passage of the Clean Air, Clean Water, and Endangered Species acts. Sen. Nelson was awarded the Presidential Medal of Freedom -- the highest honor given to civilians in the United States -- for his role as Earth Day founder. Now, the fight for a clean environment continues. We invite you to be a part of this history and a part of Earth Day. Discover energy you didn't even know you had. Feel it rumble through the grass roots under your feet and the technology at your fingertips. Channel it into building a clean, healthy, diverse world for generations to come.

Earth day sign put up in an office -- "In honor of Earth Day, anyone asking for help today will be treated like dirt."

Tax Day is April 15

Click on the following links:

• 3 Critical Small Business Tax Mistakes • Small Business Deductions (w/o Receipts) • 25 Easily Overlooked Tax Deductions • Home Business Tax Breaks • 10 Tax Mistakes to Avoid • List of Home Business Tax Deductions

I have come up with the ultimate solution to the earth's environmental concerns. Let's gather up all of the landfill wastes, industrial wastes, nuclear wastes, hazardous wastes, and biomedical wastes and deposit them in some small savings and loan. Then, suddenly they will disappear. ~Jay Leno

A freshman at Eagle Rock Junior High won first prize at his schools Science Fair. In his project he urged people to sign a petition demanding strict control or total elimination of the chemical "dihydrogen monoxide."

And for plenty of good reasons, since it can: 1. Cause excessive sweating and vomiting. 2. It's a major component in acid rain. 3. It can cause severe burns in its gaseous state. 4. Accidental inhalation can kill you. 5. It contributes to erosion. 6. It decreases effectiveness of automobile brakes. 7. It has been found in tumors of terminal cancer patients.

He asked 50 people if they supported a ban of the chemical. Forty-three said yes, six were undecided, and only one knew the chemical was water. The title of his prize-winning project was, "How Gullible Are We?" He was attempting to show how conditioned we have become to alarmists practicing junk science.

Page 33

M on t h

“Gardeners know, and research confirms, that nurturing plants is good for us: attitudes toward health and nutrition improve, kids perform better at school, and community spirit grows,” says the National Gardening Association. See nationalgardenmonth.org for more.

l Garden i oi na

APRIL

Nat

USEFUL TAX TIPS

A Different sort of chemical reaction

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

Insuring New Mexicans @ work for over 17 years

S A F E T Y

T H E

J O B S I T E

PEACE OF MIND @ THE OFFICE SM

CUSTOMER SERVICE @ ITS BEST SM

PO Box 27825 • Albuquerque, NM 87 125-7825 1.505. 345.7260 • toll free 1.800.788.8851 www.NewMexicoMutual.com