September's Issue of La Voz by Independent Insurance Agents of NM

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

"The Voice" of Independent Agents since 1934

Independent Insurance Agents of NM

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.

Features

o VZ

Convention Registration!

CE Deadline Looming Ahead

To Bundle or Not To Bundle

Bank on It!

Agents Oppose Shifting Cancelation Notice Responsibility

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.

Dodd-Frank / A Year Later

Young Agents Are Going Over the Edge

Great Brands Can Rise Above

Advertising rates are available upon request.

Your Horoscope for 9-22-11

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

If Producers Could Produce

The HO Policy and Power Surges

Did You Feel That?

Unitrin Changes Name to Kemper

National Debt Ceiling (&Other Economic Musings)

Ask An Expert: Abusing the Pollution Exclusion

IIANM Staff President/CEO Thom Turbett Vice President Lorri Gaffney Director Of Communications Rachel Sheffield Insurance Programs Administrator Julie A. Franchini Member Services Associate Renee Trujillo

2010-2011 Officers

In Every Issue Education Edge

September's Clickable Calendar

Odds n Ends

IIANM's Partners Program

Advertiser Index Acuity

Chair Kathy Yeager

American Mining Insurance Company

Vice-Chair Scott Jones

Burns & Wilcox

FUSA Insurance Agency

Secretary/Treasurer PJ Wolff

Litchfield Special Risks, Inc.

Market Finders, Inc.

National Director Sam Conlee

New Mexico Health Insurance Alliance (NMHIA)

New Mexico Mutual

Immediate Past Chair Alma Franzoy-Capron

Risk Placement Service

Trusto/HCIT

Agenda

IIANM’s 77 th Annual Convention & TradeShow (Tentative!)

September 21st & 22nd, 2011 Hard Rock Casino & Resort Hotel Albuquerque, NM

Wednesday (September 21st, 2011) 9:30 am -

Annual Board Meeting

11 am -

Young Agents Board Meeting

11:30 am -

Golf Registration & box lunch

1 pm -

Golf Tournament (brought to you by, Mountain States Insurance Group) (Shot Gun Start)

2 pm -

Poker Tournament

7 pm -

Chairman’s Reception

Thursday (September 22nd, 2011) 8 - 9:15 am -

Industry Breakfast

9:30 - 11:30 am -

“Why Independents are the Next H O T Brand” presentation

Noon -

Past Chair Luncheon with Awards & Induction Ceremony

2 - 6 pm -

Tradeshow (brought to you by, The Republic Group)

6:30 pm -

IIANM Partner’s Cocktail Mixer

7:30 pm -

Dinner & Entertainment (brought to you by, New Mexico Mutual)

IIANM Contact:

Lorri Gaffney lorri@iianm.org 505-999-5805 800-621-3978

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 5

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

September 30 Deadline! th

We at IIANM are hoping that everyone is having a great start of the fall season. It's hard to believe that the end of September is almost here! Don't forget, you will need to have all of your Continuing Education credits (15 hours) complete by September 30th.

I know I know... you've been putting it off, but the deadline is fast approaching.

But dont panic! IIANM is here for you and we've put together some easy, affordable and convenient options for you to choose from: •

CE Correspondence Books:

Keep your license current by taking one of our correspondence courses. Each course in our library is written by industry experts and provides you with the full NM state CE requirements, including 1 hour of ethics. Visit IIANM's Bookstore to order ____________________________________ •

Ethics Only:

Missing the required ethics hour? For your convenience, we offer a one hour dvd you can rent. The whole office can view it. Order Ethics Video ____________________________________ •

Online CE Courses:

Our cutting edge online services make it possible for today's insurance professional to get the critical training and required CE hours you need, while at the same time offering you valuable assets for your educational portfolio. Visit the Big "I" Virtual University Learn Center

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 7

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

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

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

General Liability

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Inland Marine

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

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

Survey says satisfaction with price is now lower among auto insurance customers who bundle policies.

by Tyger Danger

atisfaction with price among auto-only insurance customers is now comparable to levels once reserved for customers who bundled auto and homeowners policies according to a new study from J.D Power and Associates.

“For the first time, satisfaction with price is higher among unbundled customers than among bundled customers,” says Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Customers have come to expect a discount for holding multiple policies with their insurer, and it appears that the positive effect of this discount has become diluted.” Five factors were taken into account when measuring customer satisfaction with auto insurance companies: interaction, price, policy offerings, billing and payment and claims. Among auto insurance customers, the study found an increased satisfaction for customers who have their homeowners policy with another insurer or who only have an auto policy, compared to satisfaction among auto insurance customers who have their homeowners policy with the same insurer. “I disagree,” says Mike McCartin, president of Joseph W. McCartin Insurance, Inc. in Beltsville, Md. “Generally speaking, the client base I deal with wants all their insurance in one place. People who have their auto and home policies through one carrier may research online and get a lower quote for one somewhere else and then think their other policy is going to stay the same if they change the other one. Well, that’s just not the case.” According to Bowler, 58% of customers bundle their auto and homeowners policies with the same insurer. Bundling additional products with auto insurance is also on the rise this year, causing discounts for multiple policies to be viewed as the most prevalent discounts among customers, along with discounts for being a safe driver. “While discounts for multiple policies and discounts for being a safe driver are more prevalent, there isn’t a huge

INSURANCE BUNDLE

To Bundle or Not to Bundle

effect on satisfaction when customers receive these discounts,” Bowler says. “In comparison, accident forgiveness, ticket forgiveness and claims-free discounts are less common in the marketplace and have a dramatic impact on satisfaction—each creating a lift in satisfaction with discounts.” Overall satisfaction increased this year due to an improvement particularly in billing and payment and interaction factors, according to the study. Emerging trends in customer service include: • More than 80% of customers who interact with their insurer through its website were able to complete their entire interaction online. • Customers who purchase their policy through a call center representative tend to use the insurer’s website as a complementary channel for service needs and interact with their insurer nearly as often through the call center as through the website. • Customers who use emerging technologies (such as email, online chat or smartphone apps) as complementary channels to their purchase channel are significantly more satisfied than are those using only their purchase channel to meet their service needs. This increase in satisfaction is more pronounced among agent-serviced customers who use these emerging technologies. Michelle Rupp, principal at NRG Seattle, says emerging technologies are important, especially in Seattle, but emphasizes the value of personal customer service. “Everyone wants to use websites but they also know what the dangers are, in that you have to self-serve,” Rupp says. “No matter how brilliant the website is, you have to understand what you’re buying. People can go through websites and do it that way [but] whether they’re getting quality results, they don’t know”.

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

auto rs ne eow hom policies le e ip mult nt forgiv ide ss e n acc give t for ticke ims-free cla ounts disc

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Created by agents for agents, InsurBanc delivers services tailored to their needs institutions. We asked the top executives at InsurBanc to update us on key developments at the bank and to explain how InsurBanc is responding to the needs of agents in today's economic climate. Listen and learn

by Elisabeth Boone, CPCU

ny independent agency owner who has tried to explain the nature of his or her business to a lender likely has experienced a fair degree of frustration. Lending officers often are unfamiliar with the cash management patterns in independent agencies; and when it comes to financing acquisitions and perpetuation, bankers have difficulty understanding the measures used to establish agency value. For many agency owners, finding a lender that can grasp and accommodate their needs has seemed like the impossible dream. Proving that dreams can come true, 10 years ago the Independent Insurance Agents and Brokers of American (IIABA) and W. R. Berkley Corporation opened InsurBanc, a full-service federally chartered bank that offers a full menu of business and personal financial products and services that are designed specifically to meet the needs of both retail and wholesale agencies. On the business side, InsurBanc provides funding for acquisitions and perpetuation, working capital, producer development, equipment leasing, debt refinancing, and owner-occupied real estate investments. Also available are checking and money market accounts, business savings accounts and certificates of deposit, premium trust accounts, and health savings accounts. Personal banking products include checking, money market, and savings accounts; CDs; retirement accounts; residential mortgages, home equity loans and lines of credit, as well as other lines of credit; and credit cards. Online banking is available for both business and personal accounts. With hundreds of customers nationwide, InsurBanc is a thriving institution that is drawing high praise from agency owners as it refines and expands its offerings to address emerging needs. Based in Farmington, Connecticut, InsurBanc is run by a team of experienced banking professionals. A profile of InsurBanc appeared in the October 2006 issue of Rough Notes. A lot has changed since then, for agencies as well as financial

Page 10

"Throughout our history, we have continued to stick to our principles of delivering quality financial services to independent agents," says David Tralka, president and chief executive officer of InsurBanc. "We do that by communicating with our clients and listening to what they tell us, and responding with customized solutions. We aim to be nimble in creating and delivering those solutions. "Over the last couple of years, we've continued to build improved cash management systems using a sophisticated technology platform," Tralka says. "We've also introduced Agents' Express Leasing to help agents finance computer hardware and software as well as other office equipment and furniture. In addition, we've rolled out a much more economical and user-friendly business credit card. At the same time, we continue to fulfill our core purpose, which is to provide capital for acquisition and perpetuation," Tralka says. The 2008 collapse of Wall Street and the ensuing severe recession dealt a harsh blow to many financial institutions, and some did not survive. InsurBanc not only weathered the storm, Tralka says; it actually thrived. "We have prospered through the financial crisis, and we continue to do so," he says. "We're a very well capitalized institution, and we have great customers and a great industry. By sticking to what we know and being mindful of the pitfalls around us, we were able to navigate InsurBanc through the worst of the crisis. "The competitive landscape for banking changed dramatically during that period," Tralka remarks. "Many banks either went out of business or were acquired, or they stayed in business but significantly curtailed their lending programs. "The impact on agencies was twofold," he explains. "First, they had a tougher time obtaining credit; at InsurBanc, we never stopped lending, and in fact we grew our lending business. Second, agency owners began to look closely at where they were keeping their deposits and running their cash. As a result, there was a flight to quality, with agents looking for more stable institutions. InsurBanc was a beneficiary of that trend, so in hindsight, the financial meltdown was actually a good thing for well-capitalized institutions like ours." What's more, Tralka comments, "We are a national platform, so today we are doing business with agencies in the South, the Southwest, and the far West, whereas five years ago we might have been seen as primarily a Northeastern institution. Developing relationships with agents beyond the East Coast has been a significant factor in our growth."

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

An agency culture As noted earlier, InsurBanc is a joint creation of the Big "I" and W.R. Berkley and was formed to address the specific financial needs of independent agencies and MGAs. To fulfill that mission, says Robert Pettinicchi, executive vice president and chief lending officer, "InsurBanc operates its business in a manner and with a culture remarkably similar to that of its agency customers." First, he says, "As an agency does with its insureds, we try to understand our clients' needs and tailor solutions to fit those needs. We don't take a 'one size fits all' approach to providing financial services. We work with our clients to help them solve their problems and achieve their goals, whether it's to expand their business, acquire another agency, bring in and finance new producers, or manage their cash flows," Pettinicchi says. "Agents feel comfortable with us because we speak their language," he continues. "We understand how they generate revenue, how they establish value for their agency, and how their financial needs differ from those of other businesses." The cash management patterns in an agency, which are unlike those in businesses that sell tangible products, are a prime example of such a difference. "The majority of our clients have a commercial insurance operation in their agency, and they do the billing and collection for that business," says Mary Grazen, InsurBanc's executive vice president and chief operations officer. "They accumulate a lot of cash that they can use for investment. We talk with the principals about their operational cash flows, financial goals, and risk tolerance, and we also discuss any relevant regulatory requirements in their particular state," she explains. "As Bob has said, we look at each agency individually to understand what it does and how it operates," Grazen continues. "We assign an analyst to each client so we can learn the specifics of its operation, and, based on our findings, we recommend the appropriate products and services. Those typically include an operating account, a trust account, and an investment account." What's more, Grazen notes, "We have a state-of-the-art online banking capability, which allows the agency to move money electronically in a variety of ways. For example, the agency can move money in batch for commission disbursements to its producers. We customize online banking options so the agency can increase revenue and reduce costs where possible, and in general improve efficiencies within its office. "Our agency clients see InsurBanc as a welcome change from their former bank relationship because we focus on helping them improve their profitability," Grazen asserts. "We treat our clients the same way they treat theirs: listening and then providing high-quality, personalized service." M&A support For many agency owners, trying to explain to a traditional lending officer the measures used to establish the value

of an agency for purposes of merger or acquisition is an exercise in frustration. Because its people understand the unique principles of agency valuation and the concerns of agency owners who seek to sell or merge their own business or acquire another agency, InsurBanc can take frustration out of the equation, Pettinicchi says. "We provide financing for mergers, acquisitions, and perpetuation, and our goal is to create a sustainable, workable transaction on reasonable terms and make it work for all parties," he says. "There are no hard and fast rules about agency valuation, and no multiples that are valid in every situation," he explains. "We sometimes see a disconnect between agency owners and potential buyers about what agencies are worth, with an owner hanging on to what the agency may have been worth a couple of years ago. It's the same thing that's being experienced by home owners who bought when the market was at its peak and can't accept the fact that the house they paid top dollar for is now worth a lot less," Pettinicchi observes. "Agency owners in this situation may decide not to sell now because they think the value will go back up when the market hardens." No one knows when agency values will start to recover or to what extent, Pettinicchi comments, "but we do believe there's a significant amount of pent-up demand. We've certainly seen fewer deals over the last year, but we expect activity to increase as older principals begin to plan for retirement and seek perpetuation solutions." Pointing to another trend on the merger and acquisition front, Pettinicchi says, "We see that the large, publicly traded brokers are buying agencies of smaller size more often than they typically have. They pay a good price for the agencies they acquire, and the acquisitions immediately create value for them. The downside of this trend is that someone internally doesn't get to buy the agency because it was sold to a big broker. "On the bright side, the people who weren't able to buy the agency they worked for are starting their own agencies, and the agency business is an amazingly resilient and dynamic field," Pettinicchi declares. Now at the 10-year mark, InsurBanc is the financial institution of choice for a growing number of independent agency owners across the country. For agents who want a banking partner who understands their business and listens to their concerns, InsurBanc may be the solution. To Robert Pettinicchi, the reason for InsurBanc's success is simple: "Banking is not a commodity, any more than insurance is a commodity. So our approach is in tune with the mindset of independent agency decision makers." Reprinted from the May 2011 issue of Rough Notes magazine

www.insurbanc.com

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 11

Agents Oppose Shifting Cancellation Notice Responsibility Survey reveals agent workflow and E&O concerns.

ore than 60% of agents say most carriers they work with insist that agencies send notice of cancellation to certificate holders, according to a recent survey by the Big “I”. The survey gauged trends in cancellation notices for certificate holders as well as agent perception of related workflow and E&O concerns. “We wanted to know whether insurers are assuming this responsibility or pushing it onto their agents,” says Bill Wilson, associate vice president, Big “I” Virtual University. “For years, we have always encouraged agents to stay out of the cancellation process, whether insureds, additional insureds, or anyone else.” When it comes to sending out advance policy cancellation notices to certificate holders, the survey found that agents perceive no one is taking the lead. 76% of agents say they never send out such notices, and 51% of respondents said the carriers they represent don’t do it either. More than 90% of respondents said they would “disagree” or “strongly disagree” with being required to provide notice of cancellation to certificate holders and retain proof of delivery.

by Diane Rusignola

When carriers do send out a cancellation notice to a named insured, almost 64% of respondents said their agency “sometimes” or “often” does not get a copy well in advance of the termination date. “One of the most disturbing things about the survey is that when cancellation notice is sent by an insurer to a named insured, the agency often or sometimes does not get a copy of that notice,” Wilson says. “If insurers expect agencies to give advanced notice of cancellation to certificate holders as often required by the contracts insureds sign with third parties, how is that possible if almost two-thirds of the time the agency is not copied promptly on cancellation notice to named insureds? Needless to say, this creates a huge E&O exposure for agents." To view the .pdf survey results, click here.

Displaced clients?

Supporting nM BrokerS! We’re here to help you SuCCeeD!

Find us at NMHIA.com or call 800-204-4700.

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

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Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Dodd-Frank: A Year Later

by Wes Bissett

Not much has changed in New Mexico, because the vast majority of surplus lines placements here do not involve multi-state risks.

ne year ago, Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), a sweeping financial services restructuring and reform package that responded to the global financial crisis of recent years. Buried within the 800+ pages of the bill were a series of potentially significant surplus lines insurance reforms that took effect in July. Agents and brokers who operate within the non-admitted insurance arena should familiarize themselves with these provisions and perhaps alter existing business practices where appropriate. One of the traditional criticisms of surplus lines regulation is that the analysis and decisions of the most appropriate and relevant regulators are too often replicated, second-guessed and even contradicted by officials in other jurisdictions. The surplus lines reforms contained in Dodd-Frank attempted to eliminate much of this unnecessary duplication and redundancy by embracing a single state regulatory approach. The federal law requires other jurisdictions to respect the requirements and conclusions of the insured’s home state and specifically provides that “the placement of non-admitted insurance shall be subject to the statutory and regulatory requirements solely of the insured’s home state.” Dodd-Frank clearly specifies that any person placing a surplus lines policy need only comply with the placement requirements that exist in the “home state” of the insured. This means, for example, that only the surplus lines licensing, diligent search, disclosure, eligibility and all similar placement requirements of the home state should apply. Brokers will want to determine the jurisdiction that qualifies as the home state—a term that is defined within Dodd-Frank—in any particular transaction in order to achieve compliance with the appropriate laws and requirements. In most instances, the home state will be where an entity maintains its principal place of business or where an individual principally resides. The reforms also address and streamline state diligent search requirements. The diligent search laws of the insured’s home state will continue to apply in many instances, but Dodd-Frank eliminates the need to perform the search if the insured qualifies as an “exempt commercial purchaser” and certain other conditions are met. Specifically, surplus lines brokers will no longer be required to satisfy state due diligence search requirements for transactions involving an “exempt commercial purchaser” if (1) the broker discloses to the buyer that the desired insurance coverage “may or may not be available from the admitted market that may provide greater protec-

tion with more regulatory oversight” and (2) the purchaser subsequently requests in writing that the broker access the non-admitted market. A detailed definition of “exempt commercial purchaser” is contained in the law. The reforms also address the collection and distribution of surplus lines premium taxes and attempt to simplify what has often been a confusing and complex challenge for surplus lines brokers. Dodd-Frank addresses this problem by again embracing single state regulation and permitting only the home state of the insured to require the payment of premium taxes in connection with a surplus lines transaction or direct non-admitted placement. The statute leaves no ambiguity about the intended goal and provides that “[n]o state other than the home state of an insured may require any premium tax payment for non-admitted insurance.” In order to ensure proper compliance, surplus lines practitioners will need to review the tax payment and reporting rules of the home state regulator. The vast majority of surplus lines transactions are single state placements, so the new Dodd-Frank tax provisions will only affect multi-jurisdiction transactions. Dodd-Frank acknowledges that states may enter into interstate compacts or agreements in order to allocate premium taxes for multistate surplus lines risks, but participation in such a system is not required by the law. Two interstate alternatives—the Non-admitted Insurance Multistate Agreement (NIMA) and the Surplus Lines Insurance Multistate Compliance Compact (SLIMPACT) —are under development, but neither is operational at this time. So far, six states have expressed a desire to participate in the NIMA system (although no tax payment clearinghouse has been established), and nine states have enacted the necessary statutes to join SLIMPACT, including New Mexico (although that interstate compact will not be fully operational before January 2013). The implementation of these nationwide surplus lines reform measures may create confusion and raise questions for agents and brokers in the short term, but they will hopefully simplify regulation and institute greater interstate consistency over time. In order to better understand these reforms, surplus lines practitioners are encouraged to review the relevant provisions and definitions contained in Dodd-Frank. In addition, many state insurance departments have or will soon issue bulletins and other guidance regarding the implementation of these new surplus lines reforms. The National Association of Insurance Commissioners has also developed a model bulletin to assist regulators with their state-specific information, and a copy of that document is available here.

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 15

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Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 17

Great Brands Can Rise Above Whether it’s difficult economic situations or even war, a brand promise can survive.

by Dave Evans

ith so much negative press about the economy and the recent largest drop in the stock market since 2008 and the downgrading of the United States’ sovereign debt to AA+ by Standard & Poor’s, for starters—can the power of a brand overcome negativity? When it comes to the power of a brand to influence human behavior, perhaps the best example, on a global basis, can be found in an incident dating back during World War II. The story begins on Okinawa, Japan,, which saw some of the fiercest fighting of the war. Both sides suffered a high number of casualties. During one of the battles on a beach, a young American soldier fell wounded. As he laid there trying not to lose consciousness, he saw a Japanese soldier standing over him who was getting ready to bayonet him. The American soldier later said he did not know why he did what he did next. He was weak from blood loss and blacking out, but he raised his right hand in a familiar sign—the universally recognized Scout sign of three fingers. Then, he lost consciousness, expecting never to awake. He did wake, though.

と殺すこ剣との銃のの 3本私が私不明に貴重、に意識弟きとた私は兄を行っした。。拶挨し解た私にとを理指とのこっるだウト者であ・スカの偵察イー私は本のボる。私私は日弟であでき兄がは達ことす殺た。私弟を勇敢に者の兄対しての偵察に位く兵私の単。傷つたない。いては傷つい私の国戦い、なる。にの員た戦闘あな士は非中世の。の士、続くの武儀礼に Bushido 交社武士をようなられたけ騎士のつ傷リ決してのアメ武士はは実質しれそすばらい。と私に殺さなこをる害の傷士でああなたカの兵は私な薬をい敵。は満足私い、憎、念よい時た。残運! より看護し幸ン。のジャかった偵察者持たなは達多分私では、う。で会おボリー

Page 18

When he returned to consciousness, he was in an American field hospital. His wounds had been dressed, and in his pocket was a note written in Japanese. He found someone to translate the note and it read: “Dear you, When I went to kill you with my bayonet, you unconsciously saluted me with three fingers. I understood you are a brother Scout. I was a Japanese Boy Scout. We are brothers. I cannot kill my Scout brother. You fought bravely against my unit, and you were wounded. Soldiers who are injured become non-combatants. My country follows Bushido, the Samurai’s Code of Honor, like your knights in the Middle Ages. Samurai never kill injured Samurai. It is amazing that you are a real American soldier, a bitter enemy to me. I nursed your injury. Sorry, I did not have satisfactory medicines. Good luck! In better times, maybe we would have met at a Scout Jamboree.” The note also bore the name and address of the Japanese soldier who, instead of taking his life, had spared it and tended to his wounds. When the war ended, the young American was assigned to the occupation force. He tried to locate his Japanese friend and discovered that he later died in the fighting on Okinawa. But his family had survived, and the American became their friend and helped them in every way he could during his time in Japan. When the family asked why, the solider explained what had occurred, and showed the note, which he still had. The people were so touched by this story that they erected a monument: the "Unknown (Scout) Soldier" monument located in Yokohama, 20 miles from Tokyo. The Boys Scouts are not merely a brand. Rather they have embraced a culture of service for over a century utilizing a merit system . Scouting is not limited to the United States, which is clearly pointed out by the actions of the Japanese soldiers. Great brands are built on a consistent message of service. Make sure your agency fulfills its brand promise.

Grow With A National Brand

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Your Horoscope for 9-22-11: Today you will experience the beginning of a paradigm shift.

Have there been events that you look back upon that changed your life in a significant way, but at the time you didn’t realize it? If you are an owner of an independent insurance agency we’re predicting that September 22nd, 2011 will be one of those days for you, but only If you have the foresight to pencil it into your calendar. Do it right now: 9:30 am to 11:30 am, Hard Rock Casino in Albuquerque. In those two short hours, you will receive information that will not only lift your spirits, but will likely be a game changer for your agency. Are you tired of all the bad economic news you’ve had to endure in the last three years? Are you tired of seeing or hearing a GEICO ad every 13 minutes? Do you worry about the fact that 72% of American consumers have used the Internet to research or buy insurance? Are you beginning to believe the predictions that the independent agency system is slowly dying? Well then we have news for you…there has never been a better time to be an independent agent! Take a few hours away from the office on September 22nd to learn why. You owe it to yourself, and to all of those smug competitors who think independents are a dying breed because we are becoming irrelevant with consumers. What have you got to lose? It’s only a couple of hours of your time. It’s a potential game changer. It’s free!!

Why

Independents

are

the

HOT

brand

& Forging Ahead Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 19

If Producers Could

Produce

by Chris Burand

How much wood would a woodchuck chuck if a woodchuck could chuck wood? Or for agencies, how much production could a producer produce if a producer could produce?

his is neither a rhetorical, nor a cynical question. It is a serious question. The answer to which a huge proportion of agency owners and managers have neither good answers nor expectations. A few months ago I gave a speech on this subject. An agency owner came up to me during a break and asked to clarify something I said. He said, “So, you’re saying a producer needs to generate at least $150,000 just to break even in the best case scenario?” I said that in the best case scenario, $150,000 commission might be break even. His response, “$150,000 commission? I thought you meant $150,000 premium! Hah! $150,000 commission isn’t possible in five years or even 10 years. It took me 20 years to build a $150,000 commission book! Your standards are ridiculously high!”

More recently, an agency owner told me he was “proud” of his producers who, on average, had 10 years of experience and wrote only $150,000 each. That is far below the norm and yet it is far better than what the owner in the previous example thought possible. According to the new Producer Profile by the National Alliance Research Academy, the average commercial producer has between $300,000 and $350,000 commissions. It varies by age, location, experience, agency size, and other factors, but the overall average is $300,000 to $350,000. Should an agency owner be proud of producers who are not even doing half of the industry average? So how much production can a producer produce if a producer can produce? Before going further, let me clarify the question by stating that it does not matter how much new business a producer generates. New business only matters relative to retention, so both metrics combined or a net new measure can be used. Another agency owner expects all of his experienced producers to grow their books by at least $50,000 annually, even in this soft market. The producers are doing it, too. These producers’ books all exceed $500,000 commission. How much can a producer write at $50,000 net new annually before reaching a reasonable capacity? Well, if the average is $300,000, then on a normal curve, good producers should achieve $500,000 without much stretch. Agency owners like the gentleman who thought $150,000 is unrealistic are really saying, without realizing it, that they know their producers can’t produce. So the question is no longer, “How much can a producer produce if a producer can produce?” The question now is, “How much can a producer who can’t produce, produce in my agency?” Agency owners are often defensive when presented with proof their producers cannot really produce. They know their producers can’t produce, but they are not going to admit it to anyone, much less themselves.

Page 20

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

I have even seen owners spend hours trying to dig up research or calling everyone they know to get someone to tell them their producers are OK. Every reader knows that if you call enough people, especially company people who want your production, you will eventually get someone to tell you that your producers are good, even if they are not. For some reason, many agency owners desperately prefer to maintain denial.

ty because the agency lacks a true sales management culture? Then it’s your job to fix this, which is easier said than done. But every solution starts with one small step. What is the first step to fixing this? Even if fixing sales management is overwhelming, remember, by doing so you have a huge competitive advantage over all your competitors who are still sticking their heads in the sand and denying reality!

If your producers really can’t produce, are they really producers? If not, why continue to employ them? If your This behavior is rampant in this industry. Can you think producers really can produce, how much can they really of any other situation (other than government) where produce if you have good sales management and high, someone would say they’re proud of producers producing though realistic, expectations and goals? less than half normal? Is an NFL running back getting 50 percent fewer yards than average going to last long? Is an outfielder batting .125 going to last long? Is a CEO who Chris Burand is president of Burand & continually fails to grow his firm and/or loses money going Associates, LLC, an insurance agency conto last long? How many people in other sales professions sulting firm. Readers may contact Chris last when their sales are less than half normal and not at (719) 485-3868 or by e-mail at chris@ even improving? How many other burand-associates.com. managers are going to defend, like a wild female animal protecting her NOTE: None of the materials in this aroffspring, sales people who barely “How much can a ticle should be construed as offering legal get to 50 percent of average as sucproducer who can’t advice, and the specific advice of legal cessful?

produce, produce in my agency?”

These producers just may be in the wrong job and/or the agency is doing a horrible job of managing their sales effort and training. If it is the former, why defend someone who is failing in a job they should not be in anyway? If it is the latter, then the agency should fix it. If they really are good producers but their numbers just don’t show it, management should be able to fix it.

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.

So, readers, if you know your producers are not making the grade, what are your emotions? Are you angry at me, the author, for suggesting unrealistic expectations? If so, chances are, you’re either in denial or your agency is mismanaged. If you are reading this and recognize $500,000 is feasible if your producers really can produce, then what are you doing about it? When I say $500,000 is feasible for a good producer, I am not implying that all producers have to be good. If you have a bunch of “B” producers all doing $350,000 to $450,000 of their own business, you are in far better shape than most of your competition (excluding large agencies and brokers). But if your producers are all average or worse and you know it, what is the agency’s true future without improvements? Are you reading this thinking that your producers are good producers but they haven’t been given a truly fair opportuniIndependent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 21

Power Surges The

HO Policy &

What to do when things light up.

Recently, I was contacted by an agent whose client was solicited by his power company to purchase insurance for power surge and lightning. As a commercial lines agent, he knew that power surges aren't covered by most standard commercial property policies, but he wasn't sure about homeowners policies. So, is this coverage needed or not? A Florida agent asks, “My client called saying he received a ‘stuffer’ in his monthly Florida Power and Light (FP&L) bill offering insurance against power surge and lightning. What coverage does the typical homeowners policy provide for power surge, and should my client take the offer from FP&L?”

've received several inquiries like yours. FP&L has an arrangement with an admitted carrier to provide this coverage. When I called the phone number to get more information (I got to play consumer!), I spoke with a representative of that company who accurately answered the questions I posed. Incidentally, I checked the Florida Department of Insurance web page and found that person to be properly licensed and appointed. Of course lightning damage to the building and personal property is covered in all homeowners policies. The standard ISO 1991 HO-3 policy covers personal property for damage caused by "artificially generated electrical current." In plain talk that's power surge. A limitation though is, "This peril does not include loss to a tube, transistor, or similar electronic component." In the new Homeowners 2000 program, the 2000 HO-3 language adds the following as not covered: "...electronic components or circuitry that are part of appliances, fixtures, computers, home entertainment units or other types of electronic apparatus." In today's "high tech" homes a good amount of personal property contains these excluded items and costs for damage could add up quickly. Keep in mind too, this limitation of coverage applies to personal property only and not to building property. Thus, items such as a built-in range, central air conditioning system, or home alarm system would not be subject to the limitation and would be covered for "power surge" claims. There is a relatively easy way to avoid the tube, transistor, Page 22

and electronic circuitry problem, and you get a gold star for having remedied the problem on the policy of your particular client. By adding the HO 00 15 endorsement (Special Personal Property Coverage)to the 1991 HO-3 form, the limitation for all the electronics is eliminated. In the Homeowners 2000 program, the HO 00 15 will not be supported any longer, but the re-introduced HO-5 form will serve the same purpose. The additional premium for the HO 00 15 or the HO-5 is just 10% of the base premium -- a darn good deal in my book and you can bet I have it on my own policy! In the HO-6 form you can use the HO 17 31 and HO 17 32 for "special" coverage to the personal property and building. Under Homeowners 2000, even those with an HO-4 can now get the "special" coverage with the HO 05 24. As far as whether the client should purchase the coverage, that's an individual decision. According to the FP&L flyer, the cost for $2,000 of coverage is $5.00 per month and $5,000 coverage is $12.50 per month, with higher limits available. One advantage of the FP&L coverage is it would cover the homeowners policy deductible (there is no deductible on the FP&L coverage) and it may save your client from ever having to submit a claim under his homeowners policy. Another advantage is those clients who don't have access to "special" coverage under their homeowners policy (not all companies provide it) would be covered for damage for the tubes, transistors, and electronics excluded by the policy. It's just a matter then of letting the client decide if the additional costs of the FP&L policy are worth the benefits received. Now that you're informed, you can "surge" ahead and answer client questions better! Note: For a more detailed article on both power surges and power failures in personal and commercial lines, click here.

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Did you feel that?! If you think that an earthquake can’t happen in your part of the country, think again. The 5.9 earthquake that hit Virginia and the 5.4 quake on the New Mexico/Colorado border in August were vivid reminders that Mother Nature can be unpredictable and costly. Natural catastrophes can expose your agency to costly E&O claims. That is why as an insurance agent you need to have all the resources available to protect your clients as well as yourself. The potential E&O exposures that insurance agents could face from natural catastrophes were discussed in the recent webinar ‘Avoiding E&O Claims from Catastrophes’. The webinar included valuable stats on catastrophic events from Dr. Robert Hartwig from the Insurance Information Institute and key considerations that agents should be thinking about when offering insurance to their customers. Click Here to access this valuable webinar, or Swiss Re policyholders can also go to www.iiaba.net/eohappens to access the webinar from the Home tab along with other earthquake resources and agency risk management tools. Remember, it takes an uncovered loss to create an E&O claim for your agency. While you have your customers’ attention take this opportunity to inform them about their current limits and protection (or lack thereof) for earthquake coverage and document your file accordingly. Click here for information on earthquake coverage from Trusted Choice (www.trustedchoice.com) that you can use as the basis for sharing with your customers. The Insurance Information Institute also provides plenty of information on relating to earthquakes at www.iii.org.

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trust. Page 24

acuity.com

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Unitrin Changes Name to Kemper Unitrin, Inc. (UTR) proudly announces its new name -Kemper Corporation -- effective Aug. 25, 2011 and will begin trading on the New York Stock Exchange under the KMPR ticker symbol that day. “Kemper is a legendary name in the insurance industry, and it offers an opportunity to create a unified brand for our family of companies and a strong platform for continued growth and expansion,” said Don Southwell, Chairman, President and Chief Executive Officer. The company purchased the Kemper personal lines business in 2002, and this segment now represents the company’s largest business unit with just under $1 billion in total earned premiums in 2010. For marketing purposes, this unit will become Kemper Preferred, effective August 25. The holding company will incorporate the Kemper name in many of its other business units over time. “Since the Kemper acquisition, we have looked for opportunities to leverage the value of the Kemper brand throughout our organization,” Southwell added. “When we had the opportunity to purchase the name outright in mid-2010, we jumped on it.”

the Kemper name over Unitrin among consumers surveyed. While the company name will change, the commitment to customer service will remain strong. The company’s subsidiaries work through about 10,000 independent agents and 2,600 career agents who know the company’s products and understand how to find the right fit for a wide array of customers. Customers who choose to purchase their insurance directly on-line can do so via Unitrin Direct or iMingle®, an industry first that uses social networking to enable customers to link their policies with friends. “We view our rebranding as an investment in the company,” said Dennis Vigneau, Senior Vice President and Chief Financial Officer. “Over time we expect to see benefits in terms of overall growth and increased shareholder returns.” Unitrin is a diversified insurance holding company with subsidiaries that provide auto, homeowners, life, health and other insurance products for individuals.

In fact, the name change closely aligns with the corporate changes over the last five years. The company has worked to redefine itself from a holding company with an eclectic portfolio of companies and investments to a straightforward insurance provider with more than $8 billion in assets. Unitrin was established as a holding company after its spin-off from Teledyne in 1990. “The Kemper name fits who we have become as a company,” Southwell continued. “It allows us to bring together all of our approximately 7,000 employees under one banner that reinforces our position as a straightforward company that delivers personal service and financial excellence in all of our interactions.” After purchasing the name, the company immediately began a top-to-bottom study of its brands, assisted by third-party research, to explore how best to use the name more aggressively. The Kemper brand name, its attributes and recognition remain strong, with about a 30 percent greater awareness of Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 25

National Debt Ceiling and Other Economic Musings by Dave Evans

The country is just starting to deal with the issue of a $14+ trillion debt.

ell, the national debt ceiling crises has been averted – at least for a while. In retrospect, this entire episode means that the country is really just starting to deal with the issue of a $14+ trillion dollar debt. Most importantly, this issue will most likely frame the debate for the 2012 presidential election. As expected, the talking heads and political pundits are discussing the outcome in political terms – who won, who lost? And, that’s too bad. So while this issue has everyone’s attention, a national discussion should commence to really understand the demographic forces that will greatly influence our country’s ability to deal with its finances. First, with longer life expectancies and the still higher than average increase in medical costs, programs like Social Security, Medicare and Medicaid are not sustainable based on current and future anticipated revenues. Further, our economy continues to lumber along with anemic growth. Just last week the Gross National Product (GDP) data was released (including a downward revision of first quarter 2011 GDP to just 0.4% and second quarter GDP growth of just 1.3%). To make matters worse, unemployment remains stubbornly high – above 9% - in what is being termed a “jobless” recovery. As the second quarter corporate earnings season winds down it is quite apparent that for the most part the S&P 500 companies’ earnings are healthy - but it is due to their profits from their international business. So U.S. companies continue to hire abroad due to lower labor costs and the fact that their global customers are growing and U.S. companies want to be located near their customers. Continuing with some pessimistic economic news, The Wall Street Journal’s analysis of the pharmaceutical industry indicates that due to expiring patents some 50,000+ good paying jobs were lost in 2010, and Merck announced job reductions of up to 13,000 jobs on top of the 17,000 job cuts that they had previously announced. Even badly needed infrastructure projects like the Golden Gate bridge repair work have been outsourced. Next month, the last four of more than two dozen giant steel modules — each with a roadbed segment about half the size of a football field — will be loaded onto a huge ship and transported 6,500 miles to Oakland. There, they will be assembled

Page 26

to fit into the eastern span of the new Bay Bridge. The assembly work and the pouring of the concrete road surface will be done in California. California state officials say the state saved hundreds of millions of dollars by turning to China. Lastly, in an interview last week legendary investment manager Jim Rogers said that he is bearish on the U.S. economy and that Japan had two “lost” decades of economic growth by propping up their ailing businesses. Rogers also said that the U.S. has now experienced their first “lost” decade and that we should learn from Japan’s mistakes or we will follow them. So where does all this leave independent insurance agents? It requires each agency needs to develop a strategy for dealing with stagnant economic growth which means that while workers comp rates may firm, payrolls may not pick up. And, that Americans will be hanging on to their cars longer (lower auto insurance premiums) and that for the most part, housing values will not rebound to a significant degree in the near future (although replacement costs will continue to go up as the dollar remains weak and commodity prices continue to rise). Essentially, agency principals need to consider what their agency needs to do (regardless if the market does start to harden) and it starts with defining their target markets and then devise (and spend) funds on an aggressive marketing plan. Many have heard the expression that “a rising tide lifts all boats”. The converse of that observation is that in a stagnant or declining economy, the aggressive firms will take market share – because it’s a zero sum game – from less aggressive competitors. The latest example is Barnes & Noble and Borders book stores which filed for bankruptcy protection last week. Barnes & Noble adapted to evolving consumer reading preferences by promoting eReaders like the Nook. Borders failed to capture this market and that was the final straw in a series of management errors. While the U.S. economy has shown amazing resilience over the years, it will take bold measure by entrepreneurs to ensure their companies success into the future. Now is the time to look at emerging consumer preferences and position the agency to meet those shifts – embracing technology and social media to stay ahead of the curve.

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Big “I” Markets

Hunts Down

Outdoor Markets

Partnership with Markel opens door to insuring sportsmen Big “I” Markets was created primarily to offer member agents access to specialty niche markets that they otherwise might not want, need, or could not find access to through a direct carrier appointment. The recent expansion of new markets fits that strategy perfectly. Big “I” Markets, in partnership with Markel Insurance Company, is pleased to introduce its new niche program for Outfitters & Guides, Rod & Gun Clubs (includes shooting clubs) and Hunting and Fishing Lodges & Plantations. Marketed through Big “I” Markets, this outdoor insurance program is available on a licensed and admitted basis in all states except Alaska and Hawaii.

Program Features and Coverage Highlights: o Liability limits available: $300,000 occurrence/$900,000 aggregate $500,000 occurrence/$l million aggregate $1 million occurrence/$3 million aggregate o Property insurance forms available are Basic, Broad, and Special. Deductibles start at $1,000. o Inland Marine coverage for insureds’ and customers’ personal property, equipment, etc. o Excess liability limits to $5 million, umbrella, business interruption, and equipment breakdown. o No liability deductibles.

www.bigimarkets.com

Abusing the pollution exclusion VU Fa

culty

A contractor was hauling an oil tank on his flatbed trailer to a disposal site. The tank leaked a small amount of oil onto the road and a motorcycle in back of the truck slid on the oil, injuring the driver. The insurance carrier denied the loss based on the pollution exclusion. Do you agree? We don't and here's why.... "The insurance carrier denied the loss based on the pollution exclusion on the business auto policy, citing exclusion B item 11. My argument is that the intent of the claim is to exclude damage caused by pollutants and that had the liquid leaking been honey or ice cream, or even water for that matter, the claim would have been paid. "They responded that while they agree that 'the fact pattern with this claim is not your typical claim to consider the pollution exclusion,' that 'there is no case law to refute the intent of this exclusion, we must rely on the wording on the policy.'" "I can't believe that this type of claim has never come up before and been challenged. Can you give me any assistance here? Thanks for your help." If they want to address case law, it is the insurer's obligation to produce the case law that SUPPORTS the exclusion. Liability coverage is akin to "all risk" or named exclusions property insurance...the burden of proof is on the insurer, not the insured, to produce evidence to support an exclusion. Our consensus is that this denial is not in keeping with the spirit of the pollution exclusion, as the VU faculty comments below demonstrate. Faculty Response This is living proof that a little bit of knowledge is dangerous. "Pollution" didn't cause the motorcycle rider to fall... the negligence of the insured who allowed oil to leak from Page 28

his vehicle onto the roadway caused the loss and this would be so if he was leaking water, extra virgin olive oil, or CocaCola. The adjuster needs to use an exclusion, not an excuse. Faculty Response If some materials had fallen off the trailer and caused the accident, there would be no issue of coverage. This is the same type of loss. The BI or PD did not occur because of irritation or contamination by the material within its potential nature as a pollutant. Just because a substance might meet the definition of "pollutant" doesn't mean that every loss involving that substance triggers the pollution exclusion. You have to look at the verbs in the exclusion, not just the noun. Nothing was "polluted." This is no different than the lady who slips at a grocery store because of wet detergent on the floor. Faculty Response The company is stretching the intent of the pollution exclusion. Of course it might take a court to change their mind. The ISO BAP excludes BI or PD arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of "pollutants" that are, or that are contained in any property that is being transported by the covered auto. The company is probably relying on this wording. I have always felt that the pollution exclusion dealt more with environmental impairment; however the company can rely on the strict interpretation of the wording. I'm assuming the company's policy reads like ISO. Your insured might have to get an attorney to get this resolved. Faculty Response How is the industry treating slips and falls arising out of oily spots in parking lots? Parking lots often have uneven surfaces arising from the parked vehicles causing depressions in the pavement over time. Oil leaks on the curved surfaces are often slick - particularly after a rain. There are lots of losses from this exposure. How are they treated?

Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Faculty Response Not every state court would agree with the insurer's decision. I think most would disagree from what I have seen in past VU discussions. I assume the injured party will sue your insured. The insurer will need to defend and pay any damages awarded by the court, defend under a non-waiver of rights (where the cost of defense is paid but they can still deny payment of damages), or seek a declaratory judgment from the court that they do not owe any defense (your insured would hire a lawyer out of their own pocket to show the insurer did owe a defense). During the course of that, the court should decide the issue of coverage. Faculty Response The BAP defines "pollutants" as follows: "Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

Homeowners Catastrophe Insurance Trust

The exclusion applies to BI or PD "arising out of" a "pollutant." The BI or PD did not arise out of the pollutant within the context of being an irritant or contaminant. This is the equivalent of a slip and fall and the coverage denial is a ludicrous distortion of the intent of the exclusion. Faculty Response To me, the very nature of the pollution exclusion (assuming ISO wording) is that the loss "arises out of" the pollutant as an irritant, contaminant, etc. I think a loss like this is comparable to an actual claim where a lady slipped in a puddle of Clorox that had spilled from a bottle that had fallen off a shelf in a grocery store. The injury didn't arise out of the substance's unique nature as a pollutant. I can't say, though, that I have any case law on this. The pollution exclusion, within the definition of "pollutants" requires an irritation or contamination. How did the oil irritate or contaminate to cause the BI/PD? Answer: It didn't. The claim denial was a far greater irritation than the "pollutant."

Your preferred homeowners clients deserve the broadest possible coverage for their homes and personal property. As an active member of IIANM, you have the original -- the very best such program available to you right now. The HCIT Difference in Conditions (DIC) policy supplements basic homeowners coverage by providing protection for catastrophic losses, including FLOOD and EARTHQUAKE.

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Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Page 29

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 Classes Study materials are NOT included in class prices.

Property & Casualty Review Class (2 days)

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Click here for a full listing of our education program.

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- October 13 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:

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Page 30

)

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

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

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

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Independent Insurance Agents of New Mexico - www.iianm.org - * September 2011

Are your office study materials up-to-date? IIANM offers results-driven, study materials for Property & Casualty and Life & Health pre-licensing. We have helped thousands of candidates start successful careers. We can help you too. Our total package for exam preparation includes a License Exam Manual that matches the state outline and Drill & Practice test banks.

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September 2011

Clickable Calendar

Click on class title to register

Sunday

Monday

Tuesday

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Thursday

Friday

1 4

e Offic sed Clo

P&C Pre-licensing Class

Saturday

3 10

L&H Pre-licensing Class

IIANM's 77th Annual Convention!

Continuing Education

Classifieds

N e w M e x i c o ’ s Jo b B a n k Looking to fill a position within your agency? Trying to find a job but don’t know where to look? Whether you are looking for somewhere new to share your special skills or an employer looking for quality, professional employees, we are there to lend a helping hand. Click here to take advantage of IIANM’s Job Bank. Do you have an agency you’re trying to sell, or in the market to buy one? Check out our Classifieds!

Odds n

Ends Veggie Space Mission The U.S. space shuttle fleet may be retired, but space science is still going strong

From time to time, take a look at how far you’ve come already in your career and your life. You’ve changed more than you realize, and recognizing your success will spur you on to further progress.

- A Japanese scientist and astronaut hopes to grow cucumbers on the International Space Station as part of an ongoing effort to study how future space explorers will grow their own food for long-term space missions. One of his partners on the ISS, a Russian cosmonaut, similarly plans to try growing tomatoes in zero gravity. It has all the makings of a truly

out-of-this-world salad . . .

Before the iPod, there was the Theatrophone The mp3 player may have revolutionized how we listen to and buy (or don’t buy) music, but it’s just the latest in a long line of technological innovations designed to bring music to everyone. One of the first was the Theatrophone. Originally reported in Scientific American in 1892, the Theatrophone was popular in Paris as a way to allow music lovers to place a phone call to a theater and listen to live music. The devices were set up in hotels, cafes, and restaurants, and they could also be installed in one’s home. The Theatrophone Co. placed microphones in Parisian theatres that transmitted music back to a central office, where it was sent out to music lovers willing to pay 50 centimes for five minutes of music. A “wicket” on the front of the device displayed the name of the theater whose music was being broadcast. Even in the 19th century, it seems, people didn’t like being too far away from their music.

Males are better drivers? If driving knowledge is any indication

of driving habits, men are better drivers than women. 1 in 4 women failed the GMAC Insurance National Drivers Test (27.2 percent versus 13.6 percent for male). Overall, males out-performed females with an average score of 80.2 percent versus 74.1 percent for females. Click here to view the GMAC Insurance Study

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