2010 July La Voz by Independent Insurance Agents of NM

IIANM Named “Corporate Hero”

CREATED FOR NEW MEXICO BUSINESSES

New Mexico’s Experts in Workers’ Compensation Insurance 3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 •

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Mutual Benefits A Success! IIANM Continues the Mutual Benefits Program! The program is such a success we are continuing it into the Summer. Starting June 1, for June, July & August, you can benefit by submitting applications for new business with New Mexico Mutual and receive even more by putting that business with them. IIANM is pleased to offer this visa gift card program that can benefit you and New Mexico Mutual, the largest financial supporter of IIANM.

Independe Insurance nt Agent ®

With new rates for 2010 and the new Restaurant Program at New Mexico Mutual, the Mutual Benefits program is designed to benefit you when you submit applications for new business. This can be a great Summer with an added bonus! Anyone who binds a policy during this time will also have their name placed into a drawing for $500 in gift cards! The benefits will be distributed as Visa gift cards that you can use yourself, give to your family or anyone else you choose!

Qualifications for Spring Program: • CSR receives $50.00 gift card for five new applications submitted to and quoted by underwriting

Independent Insurance Agent ®

• For a bound policy with premium from $5,000. to $24,999., CSR receives a $25.00 gift card. • For a bound policy with premium from $25,000. to $49,999, the CSR and agent each receive a $50.00 gift card SM

• For a bound policy with premium over $50,000 the CSR and the agent each receive a $100.00 gift card. • Program will run from June 1, 2010 thru August 31, 2010 • Must be a member of IIANM to participate.

trust.

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La Voz

â&#x20AC;&#x153;La Vozâ&#x20AC;? is the official 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.

"The Voice" of Independent Agents since 1934

Features Abundance & Optimism

Major Changes Coming for Your Membership

Big Changes - Bold Moves to Help You

Shedding the Stock

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.

Severability Under the CGL Code

Southern Seminar Registration

IIANM Garners Another Notable Honor

Advertising rates are available upon request.

L&H Trends: Another Warning Light Goes On

IIANM 76th Annual Convention

Agents Fined for Not Having Security Plans

Industry Tid Bits

An Eye Opener

Website Privacy Statements

Virtual Risk Consultant - A "No Brainer" for Most Agencies

Insurbanc: Structure Your Business Plan with FlexLease

Please contact Rachel Sheffield at rachel@iianm.org for details

IIANM Staff President/CEO Thom Turbett, CIC VP Of Membership Services Lorri Gaffney Director Of Communications Rachel Sheffield Director Of Insurance Programs Carmen Reese Porter, ACSR, CISR Receptionist / Member Services Associate Renee Trujillo

2010-2010 Officers Chair Alma Franzoy-Capron

In Every Issue Tech Talk

Education Edge

July's Clickable Calendar

Odds n Ends

IIANM's Partners Program

Advertiser Index

Vice-Chair Kathy Yeager

Acuity

Secretary/Treasurer Scott Jones

American Mining Insurance Company

Burns & Wilcox

Colonial General Insurance Agency, Inc.

Litchfield Special Risks, Inc.

Market Finders, Inc.

New Mexico Mutual

National Director Sam Conlee Immediate Past Chair Angela Vasquez

www.scottsdale.burnsandwilcox.com

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

The

Answer is Your Specialty Insurance Professionals

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

Global Resources. Local Relationships. Albuquerque, New Mexico

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

www.scottsdale.burnsandwilcox.com

Abundance &

Optimism

Take a good look at the state of our motivation.

market? One of our clients is in a market with revenue potential of over $60 Billion! How about the revenue available within thirty miles of your office? We recently estimated the agency commission available in a modest-sized town is $14 Million. What about those major metropolitan areas? $100 Million+? It’s a big country, so what about revenue available nationally?

ow are we feeling about ourselves and the business climate right now? Scarcity and Fear are in the news and we are bombarded with these themes every day. The spin is always on the negative; you can hear the hysterics in the voices of the announcers. Sometimes, we wish at the end of each economic report, they would say “and thousands will perish!”

As sales professionals, we are all faced with pressures from a variety of sources: our companies, bosses, prospects, clients and our internal drive to earn an exceptional living to support our families and communities. One of the terms we like to use when working with sales professionals is Options. Being effective in sales results in having more options in your life – options for creation of wealth, for personal fulfillment and spiritual development. So if we start from the opposite of Scarcity and Fear, we have Abundance and Optimism. Now that sounds better! The reality is that we work in the middle of a gigantic economic machine with an unlimited supply of potential clients and opportunities. We simply cannot get to them all! Our economic machine is larger than we are capable of imagining – what’s a trillion anyway? As tangible evidence of abundance; ask yourself: What is the total amount of revenue available in your

What opportunities for revenue and profit might be available within your specialty? How much of that market do you have now? What is your estimated market share percentage? It’s probably in the single digits. This is good news! It means that you do not have over 90% of the available market - an unlimited supply of clients that buy what you sell and buy repeatedly. They just don't all buy from you yet! This year is a year of renewal, hope and possibility. Put those scarcity thoughts aside for today: there's plenty of business to go around. There really is an unlimited supply. We dare to say that our newsletter subscribers (you) are wealthier and have more potential for wealth creation than 99.1% of the population on the planet. Check that statistic out for yourself. When considering the world stage, your current and future earning power is staggering. Keep in mind, though, that it’s not all about your financials – it’s also about your standards and values. And for those worried about losing their jobs, look out your window. Is it possible that your economic community could absorb one more person with your skills? Don’t wait, take action now. The final thought we want to leave you with is this: Instead of letting scarcity and fear drive your sense of competition and your life, let your inner sense of abundance and optimism take over -- why not work from there? …and a sense of humor is helpful.

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Page 7

The Anderson Agency Report

by G. Barry Klein

"It's déjà vu, all over again."—Yogi Berra Redundancy. Plan B. Maybe it just means being prepared for the unexpected—or sometimes expected— problems that life throws at our normally smooth-running businesses. Usually we think of redundancy in terms of hardware and data, which is where we'll start, but redundancy can also be applied to many other parts of business. Specifically, redundancy means having at least two of any critical parts of your business.

The best local backups won't help you in a fire or theft, so you should have offsite backup. To ensure redundant offsite backup, you really need to use two, unrelated services. For a small business, the cost is as little as $5/ month for each service. In our shop, our data are backed up offsite, every day (and hourly, for critical data) to both Mozy and DropBox. DropBox is a little more expensive, but has the advantage of appearing as a local drive, so I can basically "see" and use all of my data from my notebook, when on vacation, or while at a trade show.

Data Let's do the easiest part first: backing up all your data. The big guys have IT professionals and significant budgets to handle all of this, but data backup can be easier and less expensive for us small-to-medium sized businesses than you might expect. For data, I like to think in terms of local backup and offsite backup. Local backup is critical because hard drives fail. People fail too, such as when someone overwrites or deletes an important file. For the hardware-fail part of local backup, we use a primary RAID (Redundant Array of Inexpensive Disks) device. Ours is a Drobo—which is simply four 1-terabyte drives in an automated enclosure that yields over 2 terabytes of redundant data that will continue, uninterrupted, if one drive fails. And because drives are cheap and (theoretically, at least) a Drobo could fail, our data gets backed up every 15 minutes to a secondary, large drive. To handle the people-fail issue, we make a "snapshot" backup of all our data every Saturday, stored by date, so we can go back several years to find a lost or corrupted file if we have to.

Page 8

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Hardware

Connectivity These days, we are all totally dependent on an Internet connection to conduct our daily business. You, no doubt, have either a DSL line or a cable line to provide highspeed service, and maybe even a T-1 line. But do you have another (redundant) connection, through a different provider? If you're relying on only one provider, you have a potential point of failure. Here's an inexpensive and really cool alternative for you. We've always had both a DSL line from our phone company and a cable line from a local cable company, and also a wireless modem for my notebook. Last year we replaced the wireless notebook modem with a Verizon MiFi unit. The cost of the service was the same ($60/month) but the MiFi provides 3G wireless Internet service for up to five computers, which is more than enough for our small home/office business. (Ironically, when we called to discontinue the cable service, they gave us a sweetheart deal, reducing the price by 2/3, so now we have redundant, redundant connectivity.)

Like us, you probably do most of your work on a desktop computer. Do you have at least one fully-loaded and operational extra machine? If your backup hardware isn't plug-ready, it isn't really redundant, is it? Our operation may be smaller than yours, but here's how we handle it. Because I work remotely a lot, my notebook computer has exactly the same specs and software as my desktop. So, I'm already set up with a redundant machine. When I got my current notebook, we kept the previous one as a redundant backup for my assistant, and whenever my (outsourced) IT guy comes in, he updates all machines, including both notebooks.

Electricity Everything we have runs on electricity. When that's outâ&#x20AC;&#x201D; which periodically happens in our areaâ&#x20AC;&#x201D;all bets are off. We're too small to have a backup power supply (other than UPSs, for short outages). For many businesses, the Plan B for a long power outage is to have people work from home. My office is IN my home, but we do have a Plan B. Don't laugh: it's called Starbucks. Actually, there are two Starbucks, a donut shop, and a bagel shop, all within a short distance, all willing to give us table space if we keep buying coffee and pastries. We have all software on our notebooks, access to our data on DropBox, and we don't need Starbucks' overloaded, insecure wireless because we have our own, secure MiFi.

People Having a well-trained staff, cross-trained to handle each other's desks, is an advantage that larger firms have over smaller ones (like us). Most of my staff is remote, mostly out of the country, and there are at least two people who can do each job. But in the office there is only my assistant and me. She can't do most of what I do, and I don't want to do most of what she does. The Plan B for her is documentation, so the things I need to know to do her job are written down. It's not fun, but I can do it. There is no Plan B for me. If I can't do my job, we're in trouble. Sometimes there just isn't any redundancy available.

IIANM thinks every Independent Agency in New Mexico should have a written disaster plan. IIANM has created an easy to follow Disaster Planning Manual that will provide you with a template to create one for your agency. Click here to print out your own personalized Agency Disaster Plan Manual. (This is a rather large file and will take several minutes to download)

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Page 9

Major Changes Coming for your IIANM Membership Changing the Look and Direction of Our National Association As most members are no-doubt aware, your IIANM membership is a ‘two-fer’: state and national association memberships for the price of one. That is why we have a national director position on our board. As our representative to the national association, I participated in a major debate that will bring big changes for Big I members. The IIABA Spring Board Meeting in Washington DC was a historic event for our national organization. Two changes were voted on and passed that will change the look and direction of our national association for many years to come. First, the national board of directors voted (with a 2/3 majority) to adopt the “All-In” concept of making Trusted Choice participation part of the IIABA membership. What this means is that all members of the Independent Insurance Agents & Brokers of America, (and therefore IIANM) will now become members of Trusted Choice, our national branding campaign. Although states have a choice on when to implement this change, the New Mexico Board recently voted to incorporate the change in January 2011. As a result, when your membership renews in January, member agencies will automatically become Trusted Choice members. Second, as part of the adoption of the Trusted Choice brand, we will have new Big “I” logo’s which will merge the existing Big “I” logo with the Trusted Choice brand logo. One logo will be used as the Big “I” logo, and one logo will be used as the consumer brand. Both logo’s will incorporate the new eagle swoosh in the logo change, and agencies will have the option of using either one or both. Many of you might wonder why these changes are taking place, how it might impact agents, and why all of these major changes by our national association. I’ll do my best to explain. I’m sure that most of you are aware that independent agents have been consistently losing personal lines market share to the direct writers and captive agents since consumers began to turn to the internet to research and often purchase their personal lines products. In fact, independent agent’s market share has dropped by about 5 percentage points since 2004, and our market share continues to drop daily. That translates into billions of dollars in lost personal lines revenue to independent agents. Although IIABA recognizes that we don’t have the financial resources to compete against the “Gecko”, “Flo”, “The Good Neighbor”, “The Good Hands”, e-insurance, and on and on, we do have the power of the local independent agent and the thousands of independent agents around the country. So, that brings me to the Third major topic of discussion and presentation of the meeting; the final steps of implementing a national IIABA program called Consumer Agent Portal, (CAP) using the new Trusted Choice Brand as the foundation for this new national initiative. I think CAP might be one of the more important programs initiated by the IIABA. CAP will use the Trusted Choice branding and provide Independent, Trusted Choice agents with a dominant web presence including an agent locator that will consistently appear in the Top 5 of insurance/auto insurance/home insurance searches on the most popular search engines. CAP will give independent agents a means to compete, regain, build and retain personal lines market share, as well as create a strong consumer brand for independents that will resonate with consumers in such a way that it will drive traffic directly to local independent agents. CAP is being developed now and is an ongoing project still in its infancy. However the IIABA Board of Directors has authorized the initial funding of CAP, and the project is moving forward rapidly. Additional work is now being done to get our company partners on board to support and assist us in this project. There will be much more information on this project as it unfolds, and we will continue to disseminate details as we learn them. As always, if anyone has any questions regarding any of the above topics, or would like to express an opinion as to the direction your national board is taking, I would welcome your input. My job as your National Director is to represent New Mexico, and getting feedback from my fellow agents helps me do my job. I hope you all have a prosperous and fun summer.

Sam Conlee IIANM National Director

Page 10

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Big I Changes:

Bold Moves to help You!

As I reviewed our association’s history I discovered that we have changed the national logo 9 times in our 110 year history. Why? Each time it has been to better define who independent agents are, while at the same time attempting to meet the consumer’s visual approval of the message the logo was sending. As Sam Conlee explained in his article, this is why IIABA and IIANM have approved a new logo for all member use. The two iterations of the new logo are displayed here. As we go forward, we will be supplying you with much more information about how to obtain the new logos and the rules for their use. We will also be giving you detailed information about how to take advantage of your new Trusted Choice membership that will become a member benefit for all IIANM members in January. While we realize that a logo change will be an expense for members to implement, our board agreed that it was important that we…the New Mexico Big ‘I’, be more aggressive in marketing the value of doing business with independent agents. The CAP portal development that Sam briefly explained will be an important tool that our members can use to regain market share in personal lines. It should dramatically clarify for consumers who we are and why we are better. At the same time, it will drive their personal lines business to your agency and our company partners. Do business with your independent insurance agent…your Trusted Choice! The name says it all! Our Board of Directors is very excited about that possibility, and you should be, too. We will be giving you much more information about these bold moves in the coming months, but in the mean time, please don’t hesitate to call the association office if you have questions or comments.

Thom Turbett IIANM President / CEO

1896 - 1900

1956 - 1957

1903 - 1913

1957 - 1966

1913 - 1945

1945 - 1956

1966 - 1987

1987 - 2010

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Page 11

Shedding the Stock Property-Casualty insurers look to bonds and cash over equities.

ecently, A.M. Best reported in BestWeek (“Caution Prevails as Insurers Rethink Investment Strategies”) that insurers appear to be retooling their investment portfolios with a bearish view of the future. Given the drop of the Dow Jones Industrial Average, perhaps those moves may have been prescient. But even had insurers not starting moving away from stocks, the general ability of P&C insurers to pay claims would not have suffered. Regulation of the P&C business has been effective and insurers are not generally exposed to swings in stock markets. Unlike most other industries, the insurance industry is an excellent example of very nearly total transparency. All P&C insurers are required to file standard financial statements with the state of their domicile. These standardized filings make for quick and easy analysis for industry watchers. Based on the aggregation of these figures for all 2,402 P&C insurers, insurers have modest exposure to stocks in general. As the chart below illustrates, investments in stocks average 12.4% of invested assets over the last 20 years and even before the financial crises beginning in the fall of 2008, insurers were below the average of the last 20 years about half of their peak at the end of 1999.

P&C insurers, rather than investing heavily in equities, tend to invest most of their assets in long-term bonds and cash/short term investments. As of the end of 2008, the investment-side of the balance sheet of the average Page 12

by Paul Buse

Source: A.M. Best Aggregates and Averages

P&C insurer—excluding premium receivables and direct investment in affiliates—are 73% long-term bonds and 9% in cash and short-term investments. Expectations are that when industry figures are released for the end of 2009, P&C insurers will have even less equity holdings and more in bonds and cash. The aggregate data to see that precisely generally becomes available from industry sources for the prior year-end in mid to late summer. Paul Buse is president of Big I Advantage®

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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by Bill Wilson

With regard to the first two questions, the current ISO CGL includes severability language and there is no cross-

Severability Under the CGL Policy

Requests for cross liability often come from uninformed third-parties.

liability exclusion. Here’s an example of what the VU faculty said: “The "Cross-Liability" related language was put into the CG 00 01 in 1986. It is found in the form Conditions: 7. Separation Of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and

ot long ago, the Virtual University "Ask an Expert" service received a rash of "cross liability" questions. The term "cross liability" deals with whether or not one insured can sue another insured under a liability policy. Contract requests to provide this coverage under a CGL policy usually arise from ignorance. The questions included: • "I had a certificate request that wanted the policy language to include a severability of interest provision and to remove the cross liability exclusion. I have not seen this before what are your thoughts?" • "I need information about an endorsement under CGL called a Cross Liability Endorsement. Where can I find information about this endorsement? Thanks!" • "We have been questioned by a local attorney concerning the Comprehensive General Liability Policy on a Condominium Association that has 'All Owners of Record' as additional named insureds on the policy. He states that each unit owner is a member of the public and has the same rights as any member of the public to collect under the CGL Policy if they are hurt on the premises of the Condominium Association. We state since the unit owners are 'Named Insureds' on the Policy that they cannot collect damages incurred on the premises owned by the Association and all the members. We feel this is a suit against oneself. Another question we would appreciate your advise on is can this coverage be covered by using a 'CrossLiability' Endorsement on the CGL Policy?"

b. Separately to each insured against whom claim is made or "suit" is brought.” Why people still ask for a "cross liability" endorsement to remove a nonexistent exclusion (unless they want to limit such suits) is a mystery. In fact, some states may have a statutory provision prohibiting the use of crosssuit exclusions in most basic liability policies. In these cases, agents are most likely dealing with attorneys or consultants who either don’t understand or don't even know what they're asking for. They are just looking at an outdated "cheat sheet" that says they should ask for this. To the contrary, a typical cross liability endorsement will insert an exclusion preventing such suits. (See Inter-Company Products Suits endorsement CG 21 41.) This allows the removal of inter-insured sales from the premium base, in return for an exclusion that states that an insured cannot sue another insured. It’s more common to add, via endorsement, an exclusion for cross-liability suits rather than add an endorsement to prevent such suits. Of course, all of this assumes that we're dealing with the ISO CGL form. Let the company underwriter handle this.

Bill Wilson is director of the Big “I” Virtual University. For a response to the last question, go to: http://www. iiaba.net/VU/Lib/Ins/CL/CGL/FacultyCrossLiability.htm

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Page 15

to n a c n co i E x l e e t Ho wM e N , 0 ces u nd , 201 r C s st & 22 In La 1 July 2

oth rb o f ed approv all classes

se s licen

Tentative Classes:

Property & Casualty:

Life & Health:

• A Renewed Look at the Homeowners Policy

• COBRA and FMLA Update

• Agency Management in the Age of Technology

• Health Care Legislation Update

• Ask an Expert – Commercial Lines

• DI Insurance and LTC Insurance

• Ask an Expert - Personal Lines

• New Mexico Health Insurance Options

Ethics hour offered both days.

Click here for class descriptions and to register online!

Kathy Yeager, IIANM Vice-Chair Thom Turbett, IIANM President / CEO Alma Franzoy-Capron, IIANM Chair

IIANM Garners Another Notable Honor According to the Corporation for National Community Service New Mexicans contributed 53.8 million hours of volunteer service in 2008 (the most recent year that statistics are available). On average, our residents racked up 35.2 hours of volunteer service per resident, besting the national average of 34.2 hours. Those facts bear out what anyone involved in the nonprofit world in New Mexico will tell you: Our state and its people are unfailingly generous. That is why the staff and Board of Directors of IIANM are honored to have been named a 2010 Corporate Hero by the New Mexico Business Weekly. We are one of only twelve companies to receive this prestigious award this year. IIANM was honored for our work with the SafeTeen program. We’re exceedingly proud of the community service being performed not just by the IIANM staff, but by insurance carriers, members and agencies across the state. If your company or agency has a special community project that you’ve done, please let us know about it and we’ll feature you in our Community Corner section of La Voz.

Also Awarded:

Adelante Development Center Bank of Albuquerque BHP Billiton New Mexico Coal Charles Stephen and Co. Inc. Charter Bank Mortgage Insurance Clear Channel Outdoor Griffin & Associates Miller Bonded Inc. NM Child Advocacy Networks Sutin Thayer & Browne UnitedHealthcare of NM

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Page 17

by Dave Evans

L&H Trends

As entitlement programs go bankrupt, consumers will need to be more financially self-reliant in retirement.

Another Warning Light Goes On

ichael Tanner, senior fellow at the Cato Institute,

provide guaranteed income streams. One of the difficulties

opened the recent Retirement Industry Conference

in solving for this new equation is that retirement surveys

held by LIMRA, LOMA and Society of Actuaries by outlin-

time and time again indicate that retirees have an aver-

ing the growing problem the American entitlement pro-

sion to annuity products because they do not want to lose

grams are creating for U.S. financial stability. â&#x20AC;&#x153;The present

their ability and flexibility to accelerate withdrawals from

value of our future obligations is more than $100 trillion

an IRA or from their savings. Also, they also do not want

and as the full force of entitlement programs kicks in, it will

to diminish the opportunity to pass along an inheritance to

only get worse,â&#x20AC;? Tanner said.

their kids. On one hand, this sentiment is contradictory to the notion of traditional defined benefit pension plans that

Tanner went on to outline the specific liabilities of the

provide guaranteed income for life (or two lives by selecting

major entitlement programs: Social Security, Medicare and

a joint and survivor option). On the other hand, people want

Medicaid. According to Tanner, Social Security faces un-

to be able to combine their retirement needs with a desire

funded liabilities of more than $15.8 trillion, while the Medi-

to provide a meaningful bequest.

care budget shortfall is as much as $100 trillion. Medicaid, he said, faces the same type of accounting challenges, but it will soon add hundreds of billions of dollars to federal, not to mention state, spending. Collectively, unfunded liabilities will eat up more than 40% of the U.S. GDP by the middle of the century. Can we pay for these programs by raising taxes? Tanner estimated that the U.S. would have to raise both the corporate tax rate and top income tax rate from the current 35%t to 88% and the current 25% tax rate for middle-income workers to 63%.

The insurance industry has tapped into this sentiment by providing Guaranteed Lifetime Withdrawal Benefits (GLWB), which create the security of a minimum income stream for the life of the holder (e.g. 5%), but also allows for upside growth if the underlying investments increase. However, unlike an annuity payment where the remainder resides with the insurance company, a GLWB approach allows for the remaining amounts to be distributed according to the beneficiary.

The implication for American public and independent insurance agents is twofold: The government will have to

The aging of America's population presents some daunting

revise these programs and curtail benefits to some degree.

challenges for current and future retirees. Agents should

As a result, Americans will have to be more self-reliant in

tap into innovative insurance products to meet the needs of

providing for their own financial security in the future. The

this group. While these products have nuances and there

insurance industry is continuing to look at ways to use

are trade-offs, they will be an important piece of the

products, riders and product guarantees/enhancements to

retirement puzzle.

Page 18

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

This year our convention will be held at the beautiful Buffalo Thunder Resort & Casino, in Santa Fe, NM, on September 15th & 16th, 2010.

Agenda

(Tentative)

W ednesday (September 15th, 2010) Morning - 1 pm - Evening -

Annual Board Meeting Golf Tournament (Shot Gun Start) Chairmanâ&#x20AC;&#x2122;s Reception

Thursday

(September 16th, 2010)

Morning -

Breakfast with nationally renowned agency management authority, Chris Burand (2 hours of CE)

Mid-Morning - CEO Panel Lunch -

Past Chair Luncheon with Awards & Induction Ceremony

Afternoon - Tradeshow Evening -

Dinner / Dance (brought to you by, New Mexico Mutual)

Click here for more information. Page 20

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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Insurance Agents Fined for Not Having Written Security Plans

Recent headlines have underscored the importance of agents having written security plans to protect the privacy of their client’s personal information.

ot only could a breach of clients’ personal information devastate an agency’s reputation: it is likely to result in the agency’s having to undertake time consuming and costly actions on behalf of clients whose personal information is compromised. And now there is the very real possibility of incurring a fine. Just as the well managed agency takes specific steps to protect against E&O risk, it also needs to have a written security plan, incorporate the plan into its procedures, train its employees to implement these procedures consistently, and monitor for compliance. In the first case, the Virginia Bureau of Insurance fined an agent $1,000 on September 22, 2009, for not having a written security plan as well as for other infractions. The second case occurred on the Pacific Coast when the Oregon Commissioner fined a non-resident Washington agent $11,000 on October 23, 2009, for failing to have a written security plan and discarding applications containing clients’ personal information in a dumpster without shredding them.

The federal Gramm-Leach-Bliley Act (GLB Act) requires businesses to proactively implement administrative, technical, and physical safeguards to protect customer non-public personal information. Many states have enacted laws and regulations to implement the GLB Act for the insurance industry in their state. Overlay onto these requirements the Security Breach Notification laws that have passed in 45 states and the District of Columbia. We are now starting to see state privacy laws move from the implementation of general safeguards to much more specific requirements. For example, the Nevada law and Massachusetts law (March 1, 2010) specifically require that email containing “personal information” be sent in an encrypted manner. This would include, for example, personal information submitted on commercial applications. The Massachusetts law in addition would require the encryption of personal information contained on laptops and mobile devices because of the higher risk posed that these devices will be lost or stolen. In fact, this law provides a good checklist of specific issues agencies will want to include in their security plans.

State & Federal Privacy Laws What is Covered “Personal Information?” Agents need to be aware of the general business and insurance specific security and privacy laws, regulations and administrative letters that apply to them in states where they hold non-resident licenses or where individuals they insure are residents. For example, the new Massachusetts privacy law which goes into effect March 1, 2010, applies to “all persons that own, license, store or maintain personal information about a resident” of Massachusetts.

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Each agency should review how “personal information” is defined in its various Security Breach Notification and privacy laws. “Personal information” in the Massachusetts law includes first name and last name or first initial and last name in combination with any one or more of the following data elements: (a) Social Security number; (b) driver’s license number or state issued identification

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

card number; (c) financial account number, or credit or debit card number, with or without any required security code, access code, personal identification number or password. Some other states do not require “name” to be an element if identify can be stolen from possession of just the other elements. A threshold question agencies need to ask is: do I even need or want to keep certain categories of personal information? Then it is important to limit access to it to only those employees who need to see it. Finally, what can I do to mask the information when it is viewed on my system, as well as to encrypt it? Other Relevant Federal Laws Agents using credit reports and drivers license information must also be aware of the federal laws governing them such as the Fair Credit Reporting Act, Fair & Accurate Credit Transactions (FACT) Act, Drivers Privacy Protection Act and Identity Theft Red Flags Rule which govern how credit reports may be used and properly disposed of, the limitations on the information contained on electronic credit/debit card receipts, how personal information on MCRs may be used, and who must have a written system to flag potential identity thefts. IIABA members can logon to www.iaba. net (Legal Advocacy tab, “Memoranda & FAQs”) for a good overview of these laws, as well as Gramm-Leach-Bliley. Similarly, if agents are handling personal medical information, they should be very familiar with the strict privacy protections required by HIPAA for that information. Agents should consult their professional advisors as to how new HIPAA requirements for “Business Associates” will affect them when they go into effect on February 17, 2010. They should also be familiar with the new HIPAA Breach Notification Rule (See Legal Advocacy tab, “Memoranda & FAQs”).

charged with working with the agency’s employees to draft and implement a security plan that fits well with the agency’s particular practices and procedures and tracks the relevant state and federal laws that apply to the particular agency. The Virginia Bureau of Insurance has produced an excellent checklist of questions agencies should ask when developing a security plan. Also of interest is a list of categories of confidential information that agencies may want to include in their plans. Agents will find some very helpful resources at the “Security & Privacy” quick link on the ACT site (www.iiaba.net/act) including: • “Protecting Agency Customer Information from Identity Theft” (2006) provides a great overview of the major security risks that agencies face that need to be incorporated into an agency’s security plan. • “Independent Agent’s Guide to Systems Security (2005) includes a selfassessment security checklist and sample security plan. This plan contains a lot of helpful detail in assuring the security of an agency’s systems, but it will need to be updated to track the most recent state privacy laws applying to the agency. • Guidance for using TLS email encryption for sending secure email includes articles, FAQs, a list of carriers supporting TLS, as well as recorded webinars and PowerPoints with detailed TLS implementation notes. ACT’s work to assist agencies in implementing appropriate security measures is ongoing. Currently, its Agency Security Best Practices Work Group is identifying recommended security practices and procedures for agencies to consider in areas such as password management. We expect the group’s report to be published in the first quarter of 2010.

Resources Available to Assist Agencies The Massachusetts Association of Insurance Agents has prepared an excellent prototype Security Information Plan to assist agencies in formulating their written plans in anticipation of their new privacy law, which they have given ACT permission to make available nationally. While this document provides a great starting point, it is important for each agency to appoint a security champion

Source: Jeff Yates is Executive Director of the Agents Council for Technology (ACT), which is part of the IIABA. jeff.yates@iiaba.net

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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www.RPSins.com/scottsdale

Partnership with recognized experts will aide member agencies with complex risk choices.

The Big “I” Markets program announced a partnership with the American Risk Management Resources Network, LLC (ARMR.NET) to provide Big “I” members access to the environmental insurance market place plus world class subject matter expertise in environmental risk management. “This partnership with ARMR.NET is a unique opportunity to help our members deal with difficult environmental exposures as more of their clients need environmental coverage,” says Gary Heiligman, Big “I” Advantage associate vice president. “Big ‘I’ Markets is an effective tool to connect member independent agencies with the expertise in ARMR.NET.” ARMR.NET founder and president, David Dybdahl, CPCU, is a well-known industry expert, having insured environmental risks as intimidating as the containment operations of the Chernobyl nuclear disaster for the World Bank and as common as an underground fuel storage tank. Dybdahl and his 10 specialized brokerage staff have the experience to know the coverage needs of the customer and which insurance provider will likely be the best match for each risk. “The need for environmental insurance is coming from increasingly varied organizations,” says Dybdahl. “As pioneers of environmental insurance, we spent the first 25 years of our careers working on a handful of the most contaminated properties in the United States. High six to seven figure premiums were not uncommon with these risks. We would sometimes work for more than a year to place one policy. But today, along with those risks, we sell with one day turn around a contractor’s pollution liability policy at a $2,500 premium covering the local plumber or HVAC contractor.”

Introducing Pollution/ Environmental Product Dybdahl and others have said that the need for environmental insurance on Main Street will only grow. However, working with environmental insurance can be challenging. “The emerging risks of mold, contaminated drywall and lead-safe work practices has increased our prospect base two hundred fold,” says Dybdahl. “A dirty little secret few know is that environmental insurance policies are not standardized; it is possible to pay top dollar for a policy that basically does not work at all for one customer but that same policy may be the best available coverage for another. A doubling of the number of environmental insurance policies available in the market place over the past two years, combined with rapidly expanding exclusions in virtually all property and liability insurance policies for losses in any way associated with mold or bacteria, lead and contaminated drywall, has created the perfect storm for the insurance agent on Main Street. We help our retail insurance agents efficiently navigate this storm.”

“My fellow agents across the country need access to top notch expertise for environmental impairment insurance policies,” says Jack Sherrill, CPCU, CLU, senior partner of Sherrill & Co. of Savannah, Ga. and chairman of the Big “I” insurance licensed subsidiary that operates Big "I" Markets. “By providing efficient access to ARMR.NET on Big ‘I’ Markets, members now have access to the 100plus pollution-related insurance policies available from the leading insurance companies in the product line.”

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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Independent agents have a say in all this, as a full 22% of consumers went to a multiple-carrier agent. This is a decrease of 3% from the previous year, so the focus on improving agent website functionality is critical, with the inclusion of website comparative rating tools, as well as direct-to-carrier quoting links offered by carriers as agency website add-ons.

Consumer Shopping for Auto Insurance Grows Online by Ron Berg

Independent agents can benefit if they have active Web presence. More consumers are turning to their computers to shop for auto insurance.

When it comes to consumer attitudes on purchasing, independent agents still have an edge.

ComScore’s latest assessment of the online auto insurance landscape reflects continued growth in quoting and purchasing auto insurance online. Most consumers still buy off line, however, and want to deal with a person. Independent agents can continue to succeed in this new environment if they build their own online presence with an engaging website, use social media to develop “fans”, incorporate online consumer quoting coupled with rapid follow up and demonstrate they add value to the process.

A record 2.8 million policies were purchased online in 2009—an increase of 22% from the previous year. For some perspective, only 700,000 policies were purchased online in 2004.

The 2010 comScore Online Auto Insurance Report covers trends regarding online quoting and purchasing, information about customer preferences, agent versus directchannel purchasing, as well as aspects of customer selfservicing and loyalty. For this survey, comScore relied upon input from 1 million U.S.-based consumers, as well as insights from a panel of more than 2,000 U.S. online consumers. Online quoting continues to be the first stop to consumers researching auto insurance. Online quoting increased 21% from the previous year’s survey to 38.8 million quotes submitted online. In 2009, 54% of all consumers went online to get auto insurance quotes, and 72% have gone online to find auto insurance information at some point in their lives. For those shopping online for auto insurance, the biggest increases were between ages 18-24, and 25-34. All age ranges over 35 decreased. The majority (83%) are going directly to insurer websites, versus only 17% going to aggregators and online agencies (Insurance.com, NetQuote, etc.). Of the quotes done on carrier sites, the usual “direct” suspects lead the pack: GEICO (28.8% of all quotes), Progressive Direct (28%), and Esurance (13.8%).

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The opportunity for independent agents lies with assisting the consumer in understanding his/her insurance needs. 78% of consumers are still purchasing offline, and by far the largest reason is that they want to speak with someone who can guide them. 71% listed this as their primary reason for purchasing offline. The key is making it easy for the consumer to find agents on the Web, as well as connecting the consumer to the agency via technology tools like online quoting on the agency website, live chat, online forms requesting agent call-back and using social media. Additionally, more consumers are able to sign all needed policy documents online. A full 82% reported using online tools such as electronic signature in 2009. Overall, consumers are expecting easy-to-use functionality and rapid service. The top four reasons consumers give to have bought through an agent include: wanted real person to visit with or call (38%); have always used an agent (34%); wanted local agent from one company who could help with all insurance needs (26%); agent quoted best price (25%). The top four reasons consumers chose not to go through an agent in making their purchase were: more convenient to use website or 24 hour toll free number (27%); faster to purchase online or through toll free number (23%); got a quote with a toll free number and decided to purchase (23%); prefer website or toll free number (16%). Agents can employ available technology tools to offer the same convenience and speed as the direct carriers, but add on top of that the personal advice and local presence.

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

The majority of consumers are going online to research auto insurance premiums. Agent websites can attract a larger portion of those by improving site functionality with quoting and making their site easy to find with social networking and SEO (search engine optimization). 22% of those in the comScore survey went to local agents to get quotes. 26% of consumers looked online for a local agent, either on a search site or on a carrier’s website. 78% are still purchasing offline. Agents can continue to provide a crucial link in helping consumers find a great price matched with the coverage they need. While the direct giants like GEICO and Progressive Direct still get the most quotes online, the agent-based insurers have the lead in total premiums written. Consumers still put more faith in the agent-based insurers, and they also have the best retention versus direct writers. While the clear trend is toward more online activity without the involvement of an agent, savvy agents can start to divert a lot of this online business by using Internet tools to duplicate the speed and convenience the direct carriers are providing. Agents can now optimize their websites with online quoting and eServicing capabilities and links, as well as attract more traffic using social networking. Including customer self-service functions on agency websites not only provides more customer preference options, but keeps the agency website in the customer’s field of view.

Cancer Health Care Expenses Increase 6 Fold Since 1987

SOURCE: IOWA Agent Newsletter

Are lifestyle choices to blame? More and more Americans are being diagnosed with Cancer according to a recently released study by the Cancer Journal. With an increase in the number of victims comes an increase in health care cost and utilization. In 1987, less than $7 billion dollars were used in treating patients in the U.S, compared to $24.7 billion in 2005, the last year that data was collectively reported. During this same time period a significant amount of cancer treatment has moved out of hospitals into clinics and outpatient treatment centers. The study uses data from national surveys of medical expenses done in 1987 and 2001 through 2005. Some within the health care community and the health insurance industry are blaming, in part, the increase in cancer and health care cost on Americans who seem too often to make unhealthy lifestyle choices. For example it

is reported: The annual healthcare costs specific to obesity-related disease and health issues, all of which are considered preventable, represents about $150 billion or about 12% of our healthcare costs. Smoking-related illnesses account for $96.7 billion in healthcare, or approximately 8% of healthcare costs. Sedentary lifestyles account for 15% of all healthcare costs. It turns out that only 20-25% of the population achieves the recommended 30 minutes of daily physical activity. Further, other preventable conditions aside from smoking make up and additional 40$ of our healthchare costs. In total, all of the above is related to 75% of our healthcare costs, all of which are linked to unhealthy lifestyle choices. Further, 70% of American deaths are attributed to strokes, heart attacks, diabetes and cancer, all of which can be influenced significantly through lifestyle choices.

The Bill for Federal Health Reform is Going to be Much Higher Than Predicted Expect this to become - and remain - the hottest political issue members of Congress will have to address this year. Budget analysts say the health care law will cost more than advertised if Congress funds all of its provisions. The AP’s Ricardo Alonzo-Zaldivar reports: ‘President Barack Obama’s new health care law could potentially add at least $115 billion more to the government health care spending over the next 10 years. If Congress approves all the additional spending called for in the legislation, it would push the ten-year cost of the overhaul above $1 trillion - an unofficial limit the Obama administration set early on. The Congressional Budget Office said the added spending includes $10 billion to $20 billion in administrative costs to federal agencies carrying out the law, as well as $34 billion for community health centers and $39 billion for Indian health care.’ But industry experts are saying that is only half of the story. “Wait until the mandatory changes in coverage are actually calculated and companies pass through huge premium increases to see the real revolt!” The Federal Legislation requires health insurance to cover children until age 26 (even if married), no pre-X, no deductibles or co-pays of preventive health care (i.e. physicals, flu shots, colonoscopies etc...), no life time maximum limit, and higher taxes on the insurance companies. Some industry experts are saying if you think health insurance coverage is expensive now just wait until the full impact of the Federal Legislation is enacted.

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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An EYE OPENER

by Chris Burand

IBM recently released a study that found insurance companies are not providing the products and services customers want, regardless of how satisfied the customers claim to be with their current products. Page 26

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

his seems mystifying at first, but think of it this way: the customers are happy with their Tauruses but they would be happier with a Mustang.

This insight is a valuable opportunity for smart insurance agents, especially in this soft market. IBM surveyed more than 3,000 policyholders and learned that less than 50% know their carriers have any new products and even worse, only 43% believe their company tailors policies to meet their specific needs. Insurance is an easily customized product. Every policy can be and should be customized to each consumer’s needs. Yet, only 43% of consumers believe their policies have been customized and truth be told, I would bet that at least half of that 43% is mistaken. They think their policy has been customized, but it probably has not. Getting to choose your policy limits is not customization. The only way coverage can be fully customized is through the use of coverage checklists. To customize coverage, an agent must sit with a customer and go through each coverage. I understand this means possibly having to explain coverages (which is part of a professional insurance agent’s job the last time I checked). I understand this means taking more time. I understand this means getting to know your customer. I understand this means being a professional rather than an amateur, and I also know a lot of producers prefer the latter because they have bluntly told me so. Beyond the fact that the proper use of coverage checklists significantly decreases E&O exposures and agents that use them properly sell more insurance, IBM’s study points to four more reasons agencies need to adapt to customizing each customer’s coverages. • First, this study, like many other studies, found that younger consumers prefer internet providers versus real insurance agents. The study stated the reason for this preference is that younger consumers are more price conscious and tech savvy. This may be, but another reason is they are more naive and ignorant. They are happy purchasing insurance this way because they have never been educated that insurance should be customized to their needs and therefore, they see all insurance as a commodity, a one-sizefits-all product. I once calculated that more than two million combinations of homeowners endorsements existed. It is probably more now. How can insurance be treated like a commodity, a product without differentiation, when so many combinations of a fairly simple policy exist? Yet the perception is clear, insurance is a commodity. We have allowed our competition to popularize the notion that insurance is such an easy commodity that even cavemen and geckos can sell it. So the ball is in the professional agent’s court. Are you going to custom-

ized coverages as only a human can do, or are you going to sell a common product and compete against a gecko? For those that choose competing against a gecko, you should know that the gecko is winning. Second, in this soft market, do not get comfortable • because you have, say, a 92% retention rate. Make sure the reason your customers are happy with you is because they know they are being offered the best coverages. If they are happy simply because they do not know something better exists, don’t be surprised if you eventually lose them. In this marketplace, someone will soon advise them something better exists by offering better coverages and/or a lower price. In a soft market, agents must sell more insurance to stay even. A great way of doing this is offering clients more coverage through the use of coverage checklists. Provided their business is doing well or they do not have an ARM, they can now afford to purchase more insurance and still save a lot of money. They can get the best of both worlds, but only if the agent acts as a professional and is not trying to mimic a caveman. Third, the IBM study strongly recommends carriers • invest in distribution that bypasses insurance agents. You can bet the carriers are paying attention. It makes sense for carriers to bypass agents if agents are not going to bring anything tangible and extra to the sales process. If young people prefer an internet-based solution, then why use agents if those agents are not going to thoroughly customize their coverages and educate them why they need to look beyond price? Finally, the IBM study strongly recommends compa• nies create more direct communication and knowledge of their customers, including customer direct access to key customer data. The agent should be doing this already. If companies follow IBM’s advice, the opportunity to disintermediate the agency grows. Again, agent disintermediation, or the elimination of the middleman, makes sense if the middleman is not bringing tangible value to the relationship. And if the agent is not bringing tangibly more value, value the customer recognizes, the agent deserves to be eliminated. This study is worth reading. It is available at www.us.ibm. com. When you are done reading it, ask yourself, What am I doing to truly add value? What can I do that my customers need, value, and recognize?

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 - * July 2010

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Website

Statements

Do you have a privacy statement on your website? ou may have wondered if this is important or if it even matters. According to Swiss Re Insurance Company, it does matter. A privacy statement on a website protects the agency in the event of the loss of private information to a third party. It acknowledges that private information is collected and how that information is used and / or shared with others. It tells the user that the agency respects the privacy rights of the individuals who visit the site and acts as a disclaimer for the agency. In some states, having a privacy statement and maintaining the security of the personal data collected on a website is a legal obligation. If your agency collects personal data, your website needs a privacy statement. Sample Web Site Privacy Statement At (YOUR AGENCY NAME), we are committed to protecting your privacy as a visitor to this Web site and as our customer. To our visitors and to our customers, we offer this pledge: (YOUR AGENCY NAME) is the owner of the information, which is collected on this Web site. We will not sell, disseminate, disclose, trade, transmit, transfer, share, lease or rent any personally identifiable information to any third party not specifically authorized by you to receive your information except as we have disclosed to you in this Privacy Policy. Information Collection We will ask you to provide your personal information to us when you enroll for coverage and when you purchase an insurance policy from us. We will also ask you to provide your personal information to us when you send e-mail to us from this Web site. When you enroll for an insurance policy at (YOUR AGENCY NAME), we will ask you to provide your name, home address, mailing address, telephone number and e-mail address. This information will be provided to the insurance company when you purchase an insurance policy so they can establish you as a policyholder. We will maintain a record of your information at the offices of (YOUR AGENCY NAME). so we can provide you with policyholder service. The employees of (YOUR AGENCY NAME) are each required to sign and acknowledge a Confidentiality And Nondisclosure Agreement. Each employee has been instructed on maintaining the privacy of each customer and the importance of protecting the customer’s personal information. When you purchase an insurance policy from (YOUR AGENCY NAME), you will pay the premiums with your Page 30

credit card or personal check. If you use your credit card to pay the premium, your credit card information is deleted from our records after your purchase has been authorized. A transaction number will be provided to you on your Binder Of Insurance. You may use this transaction number as a reference to the credit card purchase. We do not keep a record of your credit card information. If you pay the premium using your personal check, we will keep a copy of your check in your file. When you send us e-mail from this Web site, you will provide us with certain personally identifiable information including your e-mail address. Third Party Links This Web site may contain links to third party Web sites that are not controlled by (YOUR AGENCY NAME). These third party links are made available to you as a convenience and you agree to use these links at your own risk. Please be aware that (YOUR AGENCY NAME) is not responsible for the content of third party Web sites linked to (YOUR AGENCY NAME) nor are we responsible for the privacy policy or practices of third party Web sites linked to (YOUR AGENCY NAME). Our Privacy Policy only applies to information we collect from you while you are at and while you are actively in a session with (YOUR AGENCY NAME). If you should link to a third party Web site from (YOUR AGENCY NAME), we strongly encourage you to review and become familiar with that Web site’s privacy policy. Changes In Our Privacy Policy We reserve the right to change this Privacy Policy without providing you with advance notice of our intent to make the changes. If you have any questions about our privacy policy, please feel free to contact us at: ...

Needless to say, you should use the above information only as a guideline in developing your own web site privacy statement. If your privacy policies differ from the above, then your privacy statement should reflect those differences. As usual, you are best advised to run your completed privacy statement by a qualified attorney to ensure compliance with any state or federal legal requirements. As another example, to review the IIABA web site privacy statement, CLICK HERE. If you would like to review the privacy policies of other agencies, simply Google “insurance agency privacy policy” to get dozens of examples.

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

Virtual Risk Consultant a “No-Brainer for Most Agencies” Decrease E&O exposure and increase sales with this valuable tool. The benefits of increasing sales while lowering E&O exposure have Big “I” members from across the country flocking to purchase the Big I Advantage® Virtual Risk Consultant Powered by Rough Notes (VRC). And those who have purchased it are glad they did. A recent survey of registered VRC users found that 92% were extremely satisfied and would recommend VRC to other agents. Starting at $250 a year, the VRC is an easy-to-use agency resource website offering:

Risk Exposure Analysis Tools:

Commercial and personal risk exposure analysis information at your fingertips with hundreds of industries, including narrative descriptions, minimum coverages and suggested WC, ISO GL, SIC and NAIC codes. The popular “Coverages Applicable” material, customized questionnaires and E&O coverage checklists are also included.

Reference and Proposal Tools:

Reference materials to make sure agency staff understands the product they are selling and help create winning proposals. Included are access to ACORD forms, PF&M and a glossary of insurance terms.

Marketing and Prospecting Tools:

Access to articles on various insurance topics that the agency can share with customers, post on their websites or use to create a client newsletter. There are also hundreds of professionally-written building business letters so you can spend more time selling and less time writing. Gain a competitive advantage by purchasing the exclusive VRC today. Visit www.independentagent.com/VRC to learn more, view a product demo and purchase the tool.

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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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

Jack Cleary Kitty Leslie

Instructor: Instructor:

- July 13 - 14 8am - 5pm - August 10 - 11 8am - 5pm

Instructor: Instructor:

Our 14th Annual Southern Seminar will be held July 21 & 22nd in Las Cruces, NM. Click here for more information or to register.

Manny Mansour - July 15 8am - 5pm Bob Ouellette - August 12 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 - * July 2010

July's Clickable Calendar

Click here for a full listing of our education program.

- Click on a class to register online -

Sunday

Monday

e Offic sed Clo

Tuesday

Wednesday

6 P&C Pre-licensing Class

Thursday

ACSR#9 Comm Lines Related Coverages 8CE Hours

AAI 82B Commercial Lines 8CE Hours

P&C Pre-licensing Class

L&H Pre-licensing Class

CE = continuing education hours

Friday

Saturday

Las Cruces, NM

Southern Seminar 15CE Hours

P&C Pre-licensing Class

E&O Workshop 8CE Hours

Classifieds

Independent Agent Career Center We’ve re-vamped our Job Bank. Looking to fill a position within your agency? Trying to find a job but don’t know where to look? Whether you are looking for somewhere new to share your special skills or an employer looking for quality, professional employees, we are there to lend a helping hand. Click here to take advantage of IIANM’s Career Center. Do you have an agency you’re trying to sell, or in the market to buy one? Check out our Classifieds!

Independent Insurance Agents of New Mexico - www.iianm.org - * July 2010

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As our economy experiences conservative growth, agencies like yours are responding accordingly. InsurBanc Agents' Express Leasing is proud to introduce FlexLease, a product designed to help preserve cash while providing the funds to outfit your business with the latest equipment solution.

10 Executive Dr Farmington, CT 06032 www.insurbanc.com 1-866-InsBanc

Structure Your Business Plan with FlexLease Farmington, CT (June, 2010) - We know these are challenging times. Cash flow is critical, but you need to prepare for future growth and that includes investing in equipment. InsurBanc Agents’ Express Leasing is proud to introduce FlexLease, a product designed to help preserve cash while providing the funds to outfit your business with the latest equipment solution. How it works: • Lease equipment for up to 60 months* • At end of term, buy the equipment outright for 10% of the total financed amount, or • Return the equipment, or • Upgrade to newer technology • Savings potential** - you can save as much as $3,000 throughout the life of the lease by utilizing the Flexlease. Advantages: • Flexibility over equipment obsolescence. If your business plan changes, return the equipment at end of term or upgrade to newer technology • No surprises! With the 10% buyout option, you know what the price will be if you decide to purchase the equipment at lease end. • Keep cash in your business. FlexLease offers a lower interest rate and lower monthly payment than the $1.00 purchase option lease product. To find out about leasing, please visit our website at www.insurbanc.com or contact one of our Relationship Managers at 800-957-0858. Agents’ Express Leasing is a program of De Lage Landen Financing Services, Inc. benefitting InsurBanc clients. Lease financing is subject to lessee credit, vendor, and equipment approval by De Lage Landen. This is not a commitment to lend. Other terms and conditions may apply. *Lease terms are subject to change based on credit approval and equipment type. ** Savings assumes a $250,000 transaction for 36 months and 10% purchase at lease end. Actual savings may vary. Results not guaranteed. Member FDIC Equal Housing Lender

Independence Day facts

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Here are some fun facts to share with your family and friends on the Fourth of July while waiting for the hot dogs to cook on the grill: • Three presidents died on July Fourth: Thomas Jefferson and John Adams in 1826, and James Monroe, in 1831. Calvin Coolidge was the only president born on July Fourth, in 1872. • The Massachusetts General Court was the first state legislature to recognize July Fourth as a state celebration, in 1781. • The first recorded use of the name “Independence Day” occurred in 1791. • The U.S. Congress established Independence Day as an unpaid holiday for federal employees in 1870. It became a federal paid holiday in 1931.

ds News flash:

‘Eat your barbecue, it’s good for you!’

Researchers at the University of Rochester found workers tend to have better moods, more energy, and fewer physical complaints on the weekend.

In what may be the best diet-related health news of all time (at least until scientists discover that beer makes you live forever), a study at the University of Ontario has found antioxidants which can boost the body’s immune system are present in the herbs and spices used for . . . barbecue sauce.

Most enjoy weekends more than work

News of the incredibly obvious? Maybe not. Even people with interesting, desirable jobs reported being happier on Saturday and Sunday, which may suggest that job satisfaction isn’t just a question of pay and status. In the study, 74 adults ages 18 to 62 completed a brief questionnaire three times a day, rating their positive and negative feelings and physical health. From Friday evening to Sunday afternoon, the subjects generally felt greater autonomy and a better sense of connection, whereas their workweek was dominated by feelings of time pressure and external demands. Workplaces that can create a better sense of selfdirection and connection may find that their employees are more engaged and productive Monday through Friday. “To the extent that daily life, including work, affords a sense of autonomy, relatedness, and competence, well-being may be higher and more stable, rather than regularly rising and falling,” the researchers theorize.

The research team analyzed seven different popular sauces and marinades available at supermarkets. The sauces contained herbs and spices as primary ingredients, and included such varieties and flavors as jerk sauce, garlic and herb, roasted red pepper, sesame ginger teriyaki, and others. Cooking reduces the antioxidant effect by about 50 percent, but even after barbecuing, the sauces still contain “significant” levels of antioxidants.

Fire up the grill and get healthy.

What is the essence of America? Finding and maintaining that perfect, delicate balance between freedom “to” and freedom “from.” ~Marilyn vos Savant

a very special thank you to iianm’s partners The following companies have committed to support IIANM events throughout the year:

Diamond New Mexico Mutual is the state’s expert in workers’ compensation insurance and the preferred provider of the Independent Insurance Agents of New Mexico. New Mexico Mutual is recognized as an industry leader in customer service, advocacy, and integrity; providing protection for employees and security for New Mexico’s businesses. Adding three new companies in 2010 to the Group, New Mexico Mutual provides agents a comprehensive portfolio to meet your customers’ workers’ compensation insurance needs.

Gold ACUITY, headquartered in Sheboygan, Wisconsin, is a property and casualty insurer that operates in nineteen states, writes $750 million in premium through over 900 independent agencies, and manages $2 billion in assets. The only company in the nation to be named six consecutive years to the Great Place to Work Institute’s top five mid-sized companies, ACUITY employs 850 people. At Mountain States, we are dedicated to helping protect the assets of our policyholders by providing them with sound, affordable insurance products. We do this through an expanding network of professional independent agents. We believe in sustaining a strong chemistry with our agents and policyholders. It is our prime reason for narrowing our focus to the Mountain States/ Southwest region. The Republic Group offers personal property, dwelling fire, personal automobile and commercial lines of insurance through independent agents primarily in Texas, Oklahoma, Louisiana, Mississippi and New Mexico. Our companies have flexibility to offer the insurance coverage most insureds need, whether for home, automobile or business. Competitive rates and coverages are available for both standard and non-standard risks, which meet our underwriting criteria. Travelers Insurance Company is a National Company serving the needs of our Independent Agents’ all across America, from the East Coast to the West Cost and everything in between, we offer a wide variety of Commercial and Personal Lines products. We have an intimate knowledge of all lines of insurance and can offer solutions that are truly in-synch with the needs of your customers.

Silver

Letcher Golden & Assoc.

Bronze Colonial General Insurance Agency

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Preferred BOP

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Property

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Inland Marine

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Professional Liability

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Commercial Liability

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Workers Compensation

Transportation Department

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Commercial Auto

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Truckers

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Physical Damage

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Commercial Contract

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NB Mexican Truckers

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Local Radius

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Personal Lines

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Garage

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Intermediate Radius

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Professional Liability

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

Personal Lines Department ♦

Masterpiece Company

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Standard Company

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Umbrellas

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Stand-alone Liability

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Vacant

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Seasonal

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Dwelling Fire

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Homeowners

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

You will never pay a fee to access our companies. No volume or binding contracts.

More information can be found about IIANM’s Partner Program by visiting our website at iianm.org or calling Lorri Gaffney at (505) 999-5805.