WE LOVE YOUR BUSINESS! To celebrate we are extending our 5% new business commission program. Bring your business home to New Mexico Mutual and celebrate with a 5% increase in commission on NEW BUSINESS* bound with effective dates through August 31, 2012. We appreciate your business and our partnership! We look forward to providing your clients the opportunity to put their business with a New Mexico company. If you have any questions, please feel free to contact your sales representative.
SM
SM
New Mexico’s Experts in Workers’ Compensation Insurance. 3900 Singer Blvd. NE • Albuquerque, NM 87109 • 505.345.7260 or 800.788.8851 •
www.NewMexicoMutual.com
*Excludes accounts that were insured with New Mexico Mutual in the previous 6 months, short-term policies, rewritten policies, and renewal policies.
“La Voz� is the official monthly e-publication of the
La
o VZ
IIANM's Annual Convention - Welcome to the Big "I"land!
04
From Extreme Heat to Rare Derecho
07
IIANM's Last Chance Seminar - 15 hours of Continuing Education
09
2012 Big "I" Markets Guide
11
Monitoring the MOD
14
Death in an Agency
16
Hot Topics on Capitol Hill
18
Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102. (505) 843-7231. Fax (505) 243-3367. Web site www.iianm.org. This publication is intended to provide accurate and authoritative information on the subject matter covered, but is distributed with the understanding that neither IIANM, nor any contributing author, publisher, contributor or advertiser is rendering legal, accounting or any other professional service and assume no liability whatsoever in connection with its use. Further, the electronic links to our advertisers and/or contributors found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIANM. News items from members of Independent Insurance Agents of New Mexico and the general insurance industry are encouraged. The advertising deadline is the fifteenth day of the month, preceding publication. Advertising rates are available upon request. Please contact Rachel Sheffield at rachel@iianm.org for details
IIANM Staff President/CEO Thom Turbett Vice President of Member Services Consuelo Trujillo Vice President of Insurance Programs Julie A. Franchini Communications Director Rachel Sheffield
"The Voice" of Independent Agents since 1934
Features
Mountain States Insurance Provides Access to A.M. Best "A" Rated Paper 21 Innocent Until Proven Guilty - Allegations Against Agents
23
2012 IIANM Company Partners
24
Trusted Choice Chopper!
26
New Mexico Consumers Pay Higher Auto Insurance Rates
28
In Every Issue Tech Talk
12
ABEN - The Next Big Thing in Continuing Education
19
August's Clickable Calendar
30
Odds n Ends
31
Member Services Associate Renee Trujillo
Advertiser Index 2011-2012 Officers Chair Scott Jones Vice-Chair PJ Wolff Secretary/Treasurer Diana Hobbs National Director Sam Conlee Immediate Past Chair Kathy Yeager
Acuity Burns & Wilcox Hallmark Insurance Company Litchfield Special Risks Lovelace Health Plan Market Finders, Inc. MexiPass Mountain States Insurance Group New Mexico Health Insurance Alliance (NMHIA) New Mexico Mutual Trustco
10 08 17 06 22 15 19 20 11 02 32
Join this fun tournament of insurance professionals and company partners.
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IIANM C
GOLF Sponsored by,
IIANM’s TradeShow is the best way to stay connected to the insurance industry.
“ ” Big sland
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This year, our TradeShow will be held on the afternoon of Sept 20th. Cocktails and hors d’oeuvres will also be served.
Come join the fun, Visit the exhibit booths, Register to win prizes.
Big “ ”sland
I
Sponsored by,
Sponsored by,
D inner & Entertainment
&
w
IIANM’s
agenda
(Tentative)
Wednesday
Convention & Trade Show
September 19th, 2012 All Day - 10 am - 11:30 am - 1 pm - 2 pm - 6 pm -
Registration Young Agents Board Meeting Golf Registration & box lunch Golf Tournament (Shot Gun Start) Poker Tournament Chairman’s Welcome Reception
Thursday September 20th, 2012 All Day - 8:00 am - 9:30 am
78 th Annual
Registration IIANM Board Meeting & Buffet Breakfast
9:45 am - 11:30 am Industry Summit: Changes in Attitude Changes in Aptitude Noon - 1:30 pm Luncheon with Governor Susana Martinez 1:30 pm - 5:00 pm
Tradeshow
5:45 pm -
Past-Chair Reception & Induction Ceremonies
7:00 pm -
Dinner & Entertainment
At the TradeShow, be sure to visit the OCC Trusted Choice®themed custom motorcycle! Designed by renowned Orange County Choppers Paul Sr. and partnered with the Big “I” to raise money for the Make-A-Wish Foundation. The Trusted Choice® episode is set to air on September 17, 2012 on the Discovery Channel.
From Extreme Heat to Rare Derecho Trusted Choice Fund Offers Disaster Aid for Members Do your employees or your agency need assistance with uncovered losses?
What a wild few weeks it has been in the world of weather and disasters for much of the country: Wild fires, record-high temperatures, long power outages, electrifying lightening, a windstorm of epic proportion and little relief in sight! While every agency and its employees likely had insurance coverage for losses incurred in any of these disasters, it is also likely that some items were uncovered. The Trusted Choice Disaster Relief Fund is available to help in those instances. The Trusted Choice Disaster Relief Fund was established by the IIAA Educational Foundation of the Big “I” to assist those who have suffered losses due to natural or man-made disasters. The fund makes cash grants to those in the insurance industry, including Big “I” members, their agency staffs and others, to pay for immediate or ongoing financial needs when other funding sources such as insurance and other grants are not available. It is also used to fill a gap until other funding sources can be accessed, as well as to provide insurance agents with supplies and resources to aid victims and surviving family members in their communities. If you or someone in your agency suffered a loss that meets the fund’s guidelines, please submit a grant application today. Should you have any questions, please contact Madelyn Flannagan.
Click here for the Trusted Choice Disaster Relief Fund guidelines. Click here for an application.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Page 7
PROFESSIONAL LIABILITY COVERAGE IS IN THE DETAILS At Burns & Wilcox, no detail is too small to go unnoticed. To ensure we match your clients with the proper professional liability coverage, we look at every possible scenario. From data privacy to miscellaneous errors and omissions, medical malpractice to architects and engineers, our expertise across a wide breadth of categories makes certain nothing is missed. As an international company, our relationships provide us unlimited access to the broadest range of markets. So if you need to find the right policy in a flash, work with the largest independent wholesale broker – Burns & Wilcox. • Commercial • Brokerage
• Personal • Binding
• Professional • Risk Management Services
Albuquerque, New Mexico | 505.822.0018 toll free 866.643.8538 | fax 505.822.0092 scottsdale.burnsandwilcox.com
Life & Health
Last Chance Seminar 15 Hours of Continuing Education for the Insurance Professional “Last Chance to get your CE hours in a classroom setting before the Sept 30th deadline.
NO TESTING!
Wednesday, August 22
8 am - 9 am Ethics Hour 9 am - 12 pm Life Insurance (3 CE hours)
Thursday, August 23
Friday, August 24
8 am - 12 pm Employee Benefit Planning (4 CE hours)
8 am - 12 pm Upcoming Exchanges / The Impact on Small Business (4 CE hours)
12 pm - 1 pm Ethics Hour
12 pm - 1 pm Ethics Hour
4 pm - 5 pm Ethics Hour
4 pm - 5 pm Ethics Hour
1 pm - 4 pm Cobra Update (3 CE hours)
Location Information: IIANM Building 1511 University Blvd. NE Albuquerque, NM 87102 (The state of New Mexico requires 14 CE hours + 1 hour of Ethics)
Property & Casualty Monday, August 27
8 am - 12 pm Risk Management (4 CE hours)
Tuesday, August 28
Wednesday, August 29
Thursday, August 30
8 am - 4 pm Homeowners (7 CE hours)
8 am - 12 pm Personal Auto (4 CE hours)
8 am - 12 pm Business Income / Comm Inland Marine (4 CE hours)
(ACSR class credit)
1 pm - 4 pm Improving Your Insurance Skills (4 CE hours)
4 pm - 5 pm Ethics Hour
4 pm - 5 pm Ethics Hour
1 pm - 4 pm PL Related Coverages (3 CE hours)
4 pm - 5 pm Ethics Hour
1 pm - 4 pm Commercial Property (3 CE hours)
4 pm - 5 pm Ethics Hour
Page 10
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Did You Know? Big “I” Markets Guide – Like Gold in Your Mailbox! All IIANM member agencies should have recently received the Big “I” Markets Product Guide, a one-stop shopping guide of details on all the products available on Big “I” Markets. Keep the guide handy so when a situation arises for a specific type of market, you can check out what Big “I” Markets has available. If you’re not familiar with Big "I" Markets yet, it’s an Internet conduit for IIABA members to access specialty/niche coverages, program business, and hard-to-find markets. All information for quoting and issuing a policy is efficiently conveyed between IIABA member agents and product providers using exclusive IIABA technology. Big "I" Markets gives IIABA members the advantage of collective distribution power. A pdf version of the new product guide is available on the Big “I” Markets website at http://iiaba.net/webfolder/ na/bia/bim/bim-productguide-combined-final.pdf.
Insurance agents!
You spoke, we listened! New plans and more options now available!
Click here to visit our website.
By Danielle Johnson Director of IT, InsurBanc
“Bring Your Own Device” Opportunities & Risks The consumerization of IT revolution - sparked by the iPhone - has shifted the IT culture so that the users are the ones getting the latest, cutting edge technologies first, and they want to bring those devices to work. ~ PC World Magazine, Tom Bradley “Pros and Cons of Bringing Your Own Device to Work”
The mingling of personal devices into the business environment is now commonplace. Technologists are concerned about how the “bring your own device” (BYOD) trend influences the security of the employer’s network, applications, and data. This article gives an overview of the trend and provides some practical guidance independent agencies can use to manage the BYOD phenomenon. It discusses opportunities and risks presented by BYOD practices, which are driven by the outflanking of business technology by personal technology. What Is BYOD? Many workers today expect the companies they work for to allow them to use their personal mobile devices and personal computers at the office, and/or to provide remote connectivity to the office via personal devices. Technologists dub this trend “BYOD” (bring your own device). Why is BYOD Important? Mobile devices - along with their applications and on-thego Internet access - provide attractive options for speed, connectivity and productivity. Many people wouldn’t think of spending their workday without a Blackberry, iPhone, Android, iPad or other device to access company systems and data. Most important, senior managers want to use these devices and are using their organization’s technology more because of them. Many employees see their own personal devices as superior to those provided by their employers. Employees also tend to believe they are more productive if allowed to use their own devices for work and data syncing between office and home. Thus, BYOD is significant because employee-owned devices are now accessing company systems and being used for work purposes presenting security and privacy concerns to the employer. Page 12
Employers see the inherent value in a more mobile, more connected and more productive workforce. Many employees and managers have no problem connecting and addressing work issues after hours and/or on the weekends. It can be considered a motivational strategy. What Are the Security Risks? BYOD mobility offers access to enterprise data, systems and corporate email. Employees can store and process data and connect to networks. While BYOD may be considered necessary and convenient, this type of connectivity can raise significant data security and privacy concerns which lead to potential legal and liability risks. Consider: 1. The device gets lost or stolen with access to company data and systems. 2. The device contracts a virus or has malware installed that can obtain company logins and data from that device. 3. The personal device user — however good his/her intentions are — can in effect be circumventing company security standards. 4. The company cannot control the use of the personal device should the employee allow children or friends to use the device. 5. The employee may use the device to place files in personal applications in the cloud which may not be secure. 6. The employee plugs a mobile device into the USB port of his or her office computer thereby transmitting a virus to the office desktop. Here are some facts to consider when trying to balance personal device access with security: Employees don’t perceive the risk. Many employees per-
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
ceive the use of their own devices at work as placing no extra burden on technical support. But dealing with any data or system security issue requires know-how and technical resources. Executives perceive the risk, but aren’t fully ready. In August of 2011, a Deloitte webcast poll of more than 1,000 U.S. information technology and business executives found that 28 percent of respondents believe there are unauthorized personal digital assistants (PDAs) and/ or tablets connecting to company systems, especially to email servers. About 87 percent of respondents think their systems are at risk for a cyber attack originating from a mobile security lapse, the poll reported.
original factory state), as a condition of giving access to any of the business’s systems. 9. Place controls over access to and use of the company’s wireless internet. For example: do not broadcast your wireless SSID, restrict access to employees only using MAC address filtering in the router and invoke WPA 2 on the router. Security Solutions If an enterprise is allowing employees to use their own mobile devices, the following security measures should be implemented.
The same poll found 40 percent of respondents are unaware of whether their organizations have strategies or controls to enforce mobile security. Further, it found that only 24 percent of respondents believe that “all devices connecting to my intranet are authorized.” Only 17 percent reported that they monitor for rogue connections.
1. Require strong phone startup PIN which is at least 6 - 8 characters long. If not supported, use the maximum allowed. Reduce the PIN required timeout setting to no longer than 10 minutes.
Malware is on the move. Malware that targets mobile devices is increasing, reported IBM Security Solutions researchers in a fall 2011 whitepaper. Citing an IBM security research report, the whitepaper presented statistics showing that mobile operating systems vulnerabilities tripled from 60 to a projected 180+ from 2009 to 2011.
3. Require and install mobile tracking software/applications which allow online access to track the location of a lost/stolen phone and the ability to perform a lock/scream and/or remote data wipe. Secure employee’s authorization to take these actions on the device if
Enterprise systems and mobile systems are catching up with each other. While many corporations have for years allowed Blackberry-based access to email and other company systems, users are now demanding that iPhone/ Android-based smartphones and tablet computers be provided access to these same services.
the device is misplaced, lost or stolen, as a condition to giving the employee access to the business’s systems and data.
How do you proceed once BYOD is determined necessary? Since there are risks to the mingling of personal devices and work systems, companies must take the lead in assessing and managing the risks so as to safeguard their systems and data. Some simple steps include: 1. Institute a strong written BYOD Policy that is consistent with the organization’s Employee Handbook policies such as the IT Policy and Acceptable Use Policy. 2. Determine which data to protect. 3. Define what devices will be supported. 4. Determine which employees need remote access via personal devices. Do not open BYOD participation beyond those employees that have a strong business reason for mobile access. 5. Define security requirements. 6. Train and educate employees concerning policy and BYOD use. 7. Monitor employee mobile devices for compliance with your organization’s policy. 8. Secure employee’s authorization to “wipe” the employee’s mobile device remotely (restore to the
2. Require specified encryption and anti-malware software on each device.
4. Do not allow “broken”/”rooted”/“jailbroken” devices on your network. These phones have removed limitations installed on the phone by the carrier allowing the user to run apps and files not approved by carriers. This process opens the device up to security risks. 5. Large enterprises monitoring multiple devices and platforms should consider Mobile Device Management (MDM) software. MDM software centrally controls and protects the data and configuration settings for all mobile devices in the network. MDM can also provide a secure document delivery platform and end to end data transmission encryption. The opportunities of BYOD are present — and here to stay. As an analogy, home security is more complex for a bigger house with more entrances and windows. So too is systems security more complicated as smartphones and other remote devices present new entry points to be analyzed and protected. All of the security tips presented here are simply guidelines to aid agencies in diminishing security and privacy risks and managing them. However, none can be guaranteed 100% effective. Danielle Johnson is the VP, Director of Information Technology at InsurBanc, which IIABA and the W.R. Berkley Corporation established to assist independent agencies with their specific banking needs. This article reflects the views of the author and should not be construed as an official statement by ACT.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Page 13
Monitoring
Mod
the
Included in this article is a downloadable chart that provides a timeline indicating what and when certain actions should be taken to avoid surprises at renewal time.
by Bill Wilson
In your agency, I bet it is common practice to review renewals 6-8 months in advance, right? Right! (he says sarcastically) Well, if the workers compensation is experience rated, there are some things that may need attention that far in advance. Such vigilance may save your insured BIG bucks.
An insured's actual workers comp claims are shown in columns 7-9 of the NCCI experience rating worksheet. The amounts shown are based on those reported by stat cards submitted by carriers to NCCI and are usually based on a stat card cut-off date SIX MONTHS prior to the renewal date of the policy. These reported losses include both paid claims and outstanding (open) reserves for both medical and indemnity payments combined. These reserves are typically based on insurer judgment except for paid medical and permanent total disabilities. In column 8 of the NCCI experience mod worksheet, each claim in excess of $2,000 will include either an “O” to indicate that a claim reserve has been established but the claim is still Open, or an “F” to indicate that the claim has been closed with a Final settlement. One of the most common inaccuracies on the worksheet involves reserves. Although carriers must follow up with NCCI by filing subsequent unit stat cards that include open claims, sometimes reserved claims have been closed with little or no payment but the carrier failed to file a corrective stat card or the claim was closed after the stat card cutoff date (I've personally seen claims closed 1-3 days after the cut-off date, fully six months prior to renewal). Therefore, the original reserve amount may still show up on the worksheet with an "O" beside it. Here are several real-life examples: • After reviewing a loss run, an agent discovered that a $60,000 open reserve shown on the worksheet was actually closed prior to the stat card valuation date. The mod on the worksheet was 1.26 and should have been 0.94, but the correction was could not be made until the next reporting period according to NCCI rules. • A $35,000 open reserve was shown on a worksheet with a 1.17 mod. Although the claim had been proven to be fraudulent, the company had failed to file a corrective stat card. The mod was ultimately corrected to 0.89, reducing the insured's premium by almost onethird. • The company never filed corrective stat cards with NCCI on open claims closed as far back as two years ago. When recalculated, the mod dropped from 1.24 to 0.93. Page 14
• A loss was originally reserved at $22,000 almost three years ago and this value was continued on each subsequent stat card even though the reserve was reduced several times. After the valuation date of the last stat card, the claim was closed at $4,800. The mod would have been 1.15, rather than 1.21, but NCCI cannot reevaluate the mod until the next rating period according to their filed procedures. As shown in the first example above, a claim may have been closed PRIOR to the mod promulgation date of the upcoming policy period, but AFTER the date of the last stat report (i.e., six months prior to renewal). According to NCCI, the open claim reserve shown on the stat card will still be included in the mod calculation and shown on the worksheet applicable to the upcoming policy period, even though it has actually been closed. As demonstrated by the last example above, in addition to failure to file stat cards on closed claims, reserve amounts may have been lowered over time, but not changed on the worksheet. Unfortunately, the failure to follow up on open claims may mean that the insured is stuck with a mod that could have been lowered considerably if the claim/reserve was more diligently tracked. Finally, remember that reserves may be based largely on judgment, so it is not inappropriate that a reserve amount be challenged if it appears excessive. If, as the agent, you have reason to believe that a carrier has established a pattern of over-reserving (which some feel happens, particularly in residual markets), keep a file of reserve activity to present to your insurance department, labor department, and/or workers compensation commission. As mentioned previously, a reserve amount cannot be modified on a worksheet, due to judgment reconsiderations, after the stat card has been submitted to NCCI. From a preventative standpoint, open claims should be reviewed at a minimum of 7-9 months in advance of the policy renewal date since such losses are valued on the stat cards at intervals of 18, 30 and 42 months after policy inception. For a complete timeline of what an agent can do (and when) to ensure that open claims are closed by the stat card valuation date, download our “Monitoring the Mod” chart.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2014
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Page 15
smart and it is a good business practice, but it is not imperative. However, if a person dies and the books are poor the agency is not going to sell for full price. Who will pay full price for an agency for which no one knows the true income and the true state of its balance sheet? by Chris Burand
Death in an Agency
I know many readers are thinking these things never happen, but they do. How do you know you do not have similar issues if you have not gone through the process of having your agency valued by a competent agency appraiser? As one client said not long ago, “I did not realize I had so many holes in my data until you valued it and I understand now why you need that information.” Agency Ownership
I have unfortunately worked with the families, estates and partners of several agency owners who have passed away. Most, but not all, of the deaths occurred unexpectedly. In all cases, the person who passed left their families, estates and partners with far more problems than necessary. So my question to you is this, if you passed away tomorrow, would you leave the people around you with unnecessary problems? Agency Value One of the absolutely worst situations I absolutely dread is when I have to tell a family the agency is not worth anything near what the recently passed relative (usually the father) told them it was worth. Agency values are not what they once were. So telling your family they can get two times is wrong and, while possibly innocent, it is still cruel. Get your agency valued using real world values so everyone’s expectations are realistic. Put yourself in their shoes. The income from the agency will be eliminated upon the sale. Will the agency’s sales price be enough to support their standard of living? Being proactive also brings to light things that can be done to increase the value. One of the saddest examples is bad debt. I have seen a number of agency owners die with sizeable accounts receivable that were totally uncollectible and quite old. I have seen these debts total 20 percent, 25 percent, even 30 percent of the agency’s commissions. Even if an agency is worth some high multiple, those bad debts have to be deducted. Another horrible situation is a widow learning that her husband did not really own all the business on the books. He always meant to get around to fixing his producers’ contracts, but died before he did. Also, there have been situations where all the important accounts are written by the deceased and there is no one in the agency to take over those accounts. Those key accounts most likely will not stay with the agency and, therefore, the value is not going to be what the estate may have thought. Or another example: keeping lousy books. It is not imperative for an owner to keep good books and good data. It is Page 16
Do you really own your agency? I have seen a number of situations where the agency’s contracts were so poorly written the agency did not clearly own the business on its books. Maybe the owner knew this at one time and had forgotten because nothing bad had happened. On a day-to-day basis, it didn’t really matter. But when the agency is being valued, especially when it is being valued because the owner has died, it does matter and that is not when anyone wants to discover the problem. As more and more clusters develop and even age, this is going to be a bigger and bigger problem. Buy-Sell Agreements What happens when a person dies with a bad buy-sell agreement with their partner? Unless luck and goodwill are in plentiful supply, nothing good happens. The partner may have been the greatest, most unselfish person on earth, but is his or her family just as unselfish? This is important because at least for a time, the dead partner’s family will be partners too. For example, what happens when the surviving partner realizes the buy-sell agreement poorly defines value? This may leave the door open for the dead partner’s estate to claim whatever value they desire. I have seen, more than once, claims of two times PREMIUMS! It is not always that the other side is greedy; often they are just uneducated about the insurance world. Combine that with grief and a feeling of immense vulnerability, and it may mean they won’t want to settle for a reasonable value. Another great example is where the agency’s balance sheet is poor and the estate’s trusted advisor discovers some rule of thumb that agencies are worth some multiple of commissions, but fails to understand that balance sheet deficits, especially trust ratio deficits, must be deducted. If you have ever tried to buy out a partner at full price while the agency has a trust ratio deficit, you will know how difficult it is to make payroll and other payments. Last But Not Least The readers of this article have the opportunity to fix a wrong before the wrong occurs. The pain survivors feel when a loved one and partner dies is already immense. Why exacerbate it by leaving them a business in a mess? Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@burand-associates.com.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
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Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Page 17
For instance, some of the tax increases on small busiby Ryan Young, Big “I” senior director of federal government affairs.
nesses take effect in 2013; these include the 0.9% increase
Educate Congress on Insurance
The PPACA’s landmark year will be 2014 because that’s
on wages for certain taxpayers and a 3.8% increase on investment income. when provisions will be implemented on guaranteed issue,
Hot Topics on Capitol Hill
the individual mandate, the employer mandate, exchanges and the Medicaid expansion. Implementation of the law is scheduled to wrap up in 2018 with the so-called Cadillac tax, which is a punitive excise tax on high-cost plans.
On the Hill
With almost six years of implementation remaining and controversy surrounding the PPACA still at a fever pitch, the future of the law remains somewhat murky. The Big “I” government affairs team will continue to work on efforts to
Big “I” Releases Updated PPACA Timeline In wake of Supreme Court ruling, Obama Administration moves ahead with implementation.
resolve issues with the law that impact agents and brokers most directly.
In light of the recent ruling by the U.S. Supreme Court and the complex nature of the Patient Protection and Affordable Care Act, the Big “I” government affairs team has released an updated implementation timeline with highlighted provi-
Battle Lines Drawn on Tax Debate Congress debates competing plans as August recess nears.
sions of the law. As the timeline reflects, the biggest change to the law has been the Supreme Court’s ruling on the Medicaid expansion. The court’s decision did nothing to affect any of the
As members of Congress prepare their parting shots in the remaining days before the August recess, debate over the future of the tax code has been the topic du jour in both
provisions of the law already implemented, and going for-
legislative bodies.
ward it only made changes to the way the Medicaid eligibil-
The Senate voted last night on competing plans offered by
ity expansion to 133% of poverty level will be implemented
each political party, with the House scheduled to follow suit
in 2014.
next week. As part of an advocacy effort on this issue, the
Among the many provisions already in effect are the so-
Big “I” signed onto a small business coalition letter asking
called Sept. 23 reforms from 2010, which include requiring plans to allow young adults up to age 26 to remain on their parents’ plans and the prohibition of consideration of
the Senate to extend all current tax rates, while working toward passage of an overhaul of the tax code next year. An identical letter will be sent to the House next week when
pre-existing conditions of children. Also, the medical loss
it considers proposals.
ratio regulations have been in effect since Jan. 1, 2011 and
At issue is the fact that current individual tax rates, as well
have led to significant cuts in agent compensation. There
as rates on capital gains, dividends and estate taxes, are
are also several other provisions of interest already in ef-
due to increase dramatically at the end of the year to levels
fect such as new restrictions on flexible spending accounts
not seen in more than 10 years.
and the first steps toward filling in the “doughnut hole” for
For example, the top individual tax bracket will increase
Medicare Part D beneficiaries.
from 36% to 39.6%, and, in reality, this top rate will be
The structure of the PPACA is such that many of the most
40.5% when tax increases from the new health care law
consequential portions of the law have yet to be implemented.
are added.
Page 18
Taxes on capital gains are due to increase from current level of 15% to 20%, and add another 3.8% increase on top of that for individuals earning more than $200,000 or $250,000 for joint filers due to the PPACA. Rates on dividends will increase from 15% up to ordinary income tax levels. In addition, estate taxes are once again due to increase from the current rate of 35% with a $5 million exemption, to a 55% rate with a $1 million exemption. Last night, the Senate voted on two differing plans. The Democrat plan, which narrowly passed but has no chance of passing in the Republican-led House, would only extend current tax rates for those taxpayers earning less than $200,000 ($250,000 for joint filers) and raise taxes on the top two individual income tax brackets. For these same higher income taxpayers, capital gains and dividend taxes will be increased to Clinton-era rates. In addition, it would allow the estate tax rate to reset to the punitive 55% rate with a $1 million exemption. The Republican Senate plan, which failed on a partyline vote, would have extended all current rates and exemption levels avoiding a tax increase during this difficult economic time. Next week, the House is scheduled to vote on a two-part plan by Republican leaders. The two part plan proposes to extend current tax rates for one year and set up an expedited procedural process for a wholesale overhaul of the tax code next year. Both bills are expected to pass the House, largely along party lines. Despite this flurry of action in Congress, the debate over the tax code is unlikely to be resolved before the presidential election. On the other hand, the slumping economy and skyrocketing deficits will likely put pressure on Congress to address this issue before the end of the year
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during the lame-duck session or early next year. The Big “I� government affairs team continues its efforts toward short-term passage of an extension of all current rates and exemption levels, while also working toward an overhaul of the tax code next year that addresses both
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individual and corporate tax rates for the long-term.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Page 19
Mountain States Insurance Group is pleased to introduce a new suite of property enhancement endorsements. The following are some highlights of our Premier Endorsement. Contact your underwriter for more details and pricing. ADDED COVERAGES Business Income & Extra Expense Actual Loss Sustained – Up To 12 Months $250,000 From Dependent Properties $50,000 Expanded Blanket Limit $250,000 Accounts Receivable Valuable Papers and Records (Other then Electronic Data) Debris Removal Outdoor Signs not Attached to Buildings Expanded Crime Blanket Limit $25,000 Employee Dishonesty Forgery or Alteration Money and Securities Money Orders and Counterfeit Money Credit Card Invoices Computer Fraud Computers, Media & Electronic Data - In One Policy Year $100,000 Foundation $25,000 Lock Replacement $2,500 Covered Crime Reward $10,000 Brands and Labels $25,000 Business Personal Property - Seasonal Increase 25% or $50,000 INCREASED LIMITS Outdoor Property $25,000 Tree, Shrub or Plant $2,000 Pollutant Cleanup & Removal $25,000 Ordinance or Law Coverage $250,000 Property of Others $25,000 Property Off-Premises $25,000 Fine Arts $25,000 Sewer & Drain Backup $25,000
Stable – Secure – Permanent 28 PagePage 20
www.msig-nm.com - 505.764.1400 5051 Journal Center Boulevard N.E., Albuquerque, NewMexico 87109 Independent Insurance Agents ofAgents New - www.iianm.org - * August Independent Insurance ofMexico, New Mexico - www.iianm.org - * 2012 August 2012
Mountain States provides access to a.m. best “a” rated paper Mountain States Insurance Group has entered into an agreement with National Specialty Insurance Company (NSIC) (A.M. Best rated “A” size VIII carrier), an affiliate of State National. The agreement will allow Mountain States to utilize NSIC Paper to underwrite risks that require “A” paper.
In addition, the facility will be limited to a $10 million annual premium cap. Therefore, quality renewal accounts will be given first priority when evaluating what may be placed in this facility. That’s not to say we will not place new business in this facility, only that selected renewals will get priority.
Access to NSIC will occur through Rocky Mountain National Insurance Services (“Rocky Mountain”), a wholly owned Managing General Agency (MGA) of the Mountain States Insurance Group. Mountain States Insurance Group will provide all underwriting, billing, and claims services for Rocky Mountain. Thus, you will continue to work with the same underwriters, claims professionals, and support staff at Mountain States that you have grown accustomed to working with over the years. The business written on behalf of NSIC will be reassumed by Mountain States under a quota share reinsurance agreement, so Mountain States is ultimately retaining all the risk for the business placed with NSIC.
We should note that Rocky Mountain will be paying the same agent commissions on NSIC Paper that we pay today for business placed with Mountain States. However, accounts written on NSIC Paper will not be included for profit sharing purposes. And so that there are no surprises, utilizing this facility will generally result in a higher cost for the insured – approximately 10% to 15% above the rates utilized by Mountain States Mutual Company and Mountain States Indemnity Company. This is to enable us to pay the costs of utilizing this facility.
The primary purpose for utilizing this “fronting” facility is to provide our insured’s who require A.M. Best Rated “A” paper, the option to continue working with and receiving service from their friends at the Mountain States Insurance Group. While we believe that Mountain States Insurance Group’s Paper is still financially strong and stable at B++, we do realize that certain accounts cannot obtain waivers which would allow them to continue utilizing Mountain States. Thus, we wanted to provide an acceptable option so that those accounts will remain with the Group that they have done business with for so many years.
We intend to use the “fronting” facility as a bridge only until we can get our A.M. Best “A” rating back. That is our goal, that is what we are working hard to accomplish every day, and that is where we want to be sooner, rather than later. Should you have any questions, please feel free to contact your Mountain States underwriter or to call Troy Baldwin at (505)764-1474. Thank you for your continued support.
This facility has certain restrictions. Chief among those restrictions is that we cannot offer workers compensation business on NSIC Paper. What we can offer are the following lines/limits of coverage: • Property - $10 million per location • Primary General Liability • Primary Automobile Liability • Umbrellas - $5 million limit • Inland Marine - $5 million limit • Businessowners Policy Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
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s . m e smi ile. fe v . o l e le. feeelltthheelov AWARDS & RECOGNITION AWARDS & RECOGNITION TOp RANkED ppO IN NEW MExICO NCQA’s Private Health Insurance Plan TOp RANkED ppO IN NEW MExICO Rankings, 2011-2012 NCQA’s Private Health Insurance Lovelace Insurance Company,Plan Inc. Rankings, 2011-2012 4-STARInsurance RATING Company, Inc. Lovelace Center for Medicare & Medicaid Services 4-STAR RATING Lovelace Health Plan Center for Medicare & Medicaid Services BEST plACES TO WORk Lovelace Health Plan Modern Healthcare Magazine for 2011 BEST plACES TO WORk Lovelace Women’s Hospital Modern Healthcare Magazine for 2011 Lovelace Westside Hospital Lovelace Women’s Hospital ROADRuNNER RECOGNITION Lovelace Westside Hospital Quality New Mexico ROADRuNNER RECOGNITION Lovelace Women’s Hospital Quality New Mexico Lovelace Westside Hospital Lovelace Women’s Hospital BREAST IMAGING CENTER Of ExCEllENCE Lovelace Westside Hospital College of Radiology BREAST IMAGING CENTER Of ExCEllENCE Lovelace Women’s Hospital’s Diagnostic College of Radiology Imaging Center Lovelace Women’s Hospital’s Diagnostic Only hospital in Albuquerque recognized as Imaging Center TOp pERfORMER ON kEy QuAlITy MEASuRES Only hospital in Albuquerque recognized as The Joint Commission TOp pERfORMER ONHospital kEy QuAlITy MEASuRES Lovelace Westside The Joint Commission Only hospital in New Mexico Lovelace Westside Hospital CARf ACCREDITED IN SIx pROGRAMS Only hospitalRehabilitation in New MexicoHospital Lovelace CARf ACCREDITED IN SIx pROGRAMS GET WITh ThE GuIDElINES Lovelace Rehabilitation Hospital STROkE SIlvER pluS pERfORMANCE AChIEvEMENT AWARD GET WITh ThE GuIDElINES American Heart Association/STROkE SIlvER pluS pERfORMANCE AChIEvEMENT AWARD American Stroke Association American Heart Association/ Lovelace Medical Center American Stroke Association BEST plACES WORk Lovelace Medical TO Center New Mexico Business Weekly for 2011 BEST plACES TO WORk Lovelace Health Plan New Mexico Business Weekly for 2011 Lovelace Health Plan LHP 976-0112 LINC 483-0112
things just keep getting better. things just keep getting better. A few years back, we began telling you that you’re going to
loveyears Lovelace. we didn’t just you tell you we began toto show A few back, But we began telling that–you’re going you. We made commitment to change the way healthcare love Lovelace. Butawe didn’t just tell you – we began to show is delivered just here in Albuquerque, the whole you. We made not a commitment to change the but wayinhealthcare state. Wenot made commitment to hard but workinand is delivered justahere in Albuquerque, the providing whole quality to recruiting the best and to state. We healthcare, made a commitment to hard workemployees and providing providing affordable, accessible plans to businesses quality healthcare, to recruiting the health best employees and to and individuals. providing affordable, accessible health plans to businesses and individuals. Our commitment is showing results. Today, Lovelace Health System is proudisto be recognized by these independent Our commitment showing results. Today, Lovelace Health organizations. But not finished. Ourindependent focus remains on System is proud to bewe’re recognized by these bringing theBut best health to you. And giving you even organizations. we’re notcare finished. Our focus remains on more to about Lovelace day.giving you even bringing thelove best health care to every you. And more to love about Lovelace every day. It’s proof positive that we’re changing the way healthcare delivered. It’sisproof positive that we’re changing the way healthcare is delivered.
Lovelace Health System, Inc. • Lovelace Insurance Company Lovelace Health System, Inc. • Lovelace Insurance Company
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exceptional care for
Innocent Until Proven Guilty Allegations Against Agents Swiss Re Panel Counsel Attorneys Share Most Common Accusations I DID WHAT???? When an allegation of a wrongful act is made against an insurance agent, the claimant must support his assertion with evidence. It’s important for agents to remember that until each statement is proved, it is only an allegation. We surveyed Swiss Re panel counsel attorneys for the most common allegations made against insurance agents. Taking these allegations into consideration, agency procedures should be reviewed to ensure that risk management efforts are accurately focused. Properly documented files are an agency’s best defense in a courtroom. Be sure your files provide a clear and understandable timeline of all the interactions with your customer.
Most Common Allegations Against Agents Failure to procure appropriate coverage or adequate limits Failure to advise of policy exclusions or limitations (coverage gaps) Negligent determination of inappropriate property values Failure to advise about coinsurance penalty Negligent misrepresentation of coverage Failure to handle claims properly causing carrier denial Breach of fiduciary duty Exceeding binding authority or binding an unacceptable risk (Carrier claim against agent) Failure to properly handle coverage for additional insureds and certificate holders Holding themselves out as an expert or risk management specialist Failing to explain audit provisions in policies
Reminder: Free E&O Risk Management Course on August 2 IIANM is offering a free E&O Risk Management seminar at the IIANM office on Thursday, August 2, from 9 am to 4 pm. The seminar qualifies for 8 hours of continuing education and doesn’t require an exam! BONUS: Swiss Re/Westport Insurance and Fireman’s Fund have approved this course for premium credit on your E&O renewal. The number of required participants is based on agency staff size. Contact Julie Franchini at Julie@iianm.org or 505-999-5802 to determine your agency attendance requirement. If you haven’t registered yet but plan to attend, please contact Julie by August 1st.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
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THANK YOU
2012 independent insurance agents of new mexico
Partners Program
SOURCE: IA Magazine July edition
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Trusted Choice® Chopper! Orange County Choppers unveils bike for Discovery Channel show; chopper to raise funds for Make-A-Wish.
Lights, camera, ACTION! Agents, Big “I” staff and others got a sneak peak at the Trusted Choice® custom chopper during filming for the Discovery Channel series, “American Chopper.”
their families through difficult times. In addition to meeting Fetty in 2008, Teutul has granted about 50 wishes over the past 10 years.
Orange County Choppers founder Paul Teutul, Sr., whose company built the bike, unveiled the chopper at the public event at Waterfront Park in Alexandria, Va., near national office headquarters.
“This is very exciting for me. I’m honored that Trusted Choice asked me to be part of this,” Teutul said, also joined on stage by Make-A-Wish CEO David Williams and Trusted Choice President Bob Rusbuldt.
The bike, which will tour the country over the next year, will raise money for the Make-A-Wish Foundation of America, a nonprofit that grants wishes to children with life-threatening medical conditions. Trusted Choice will also share progress of the chopper build next month on Facebook.com/TrustedChoice as part of its fundraiser for Make-A-Wish before the episode airs in September.
“Trusted Choice is kind of like Orange County Choppers. We build a bike suitable to your needs, and they also insure your needs to your needs,” he added. “They stand behind their product, and they assign an agent strictly for you. To me, your word is everything.”
Sixteen-year-old Wish Kid Jake Fetty introduced Teutul on stage before the 150-person crowd. Fetty’s wish of meeting Teutul was granted four years ago at the OCC headquarters in Newburgh, N.Y., and he was invited to participate in today’s event. “Paul Sr. actually did me a favor [in New York] and let me touch one of the bikes. That was amazing,” said Fetty, who is legally blind and diagnosed with astrocytoma and hypopituitarism. “[Paul Sr.] is a very nice fella. I had a very great time up there,” he added. The Make-A-Wish Foundation grants wishes to children with life-threatening medical conditions to help them and
Raising money for Make-A-Wish is a fitting cause for independent agents, who are “there in the greatest time of need for people,” Rusbuldt said. “What do independent agents do if your house burns down? They’re there to make it whole,” he said. “They’re there to instill confidence and hope in their clients and customers, and that’s what Make-A-Wish does.” Both Trusted Choice and Orange County Choppers have been supporting Make-A-Wish, which created the opportunity for the two organizations to come together for the fundraiser. The chopper, which reflects the design elements of the Trusted Choice logo and brand, will appear at various insurance industry events during the year. It will be raffled off in the fall of 2013, with proceeds benefiting Make-A-Wish.
In addition, the bike will be featured on an “American Chopper” episode, which is expected to air Sept. 17 on the Discovery Channel (check your local listings). Leading up to the episode, progress of the bike build will be shared with fans on Facebook.com/TrustedChoice. For every post that is shared from the Facebook page during August, Trusted Choice will donate $10 to Make-A-Wish. The campaign is similar to one that Trusted Choice ran last July to raise awareness for the brand and more than $170,000 for Make-A-Wish. Trusted Choice encourages Big “I” member agencies and supporter companies to promote the sharing of the Trusted Choice Facebook page, which will help raise money for Make-A-Wish while increasing the reach of the Trusted Choice brand and Facebook page. Support from agents and brokers is critical to achieving fundraising success and increasing the visibility of the Trusted Choice brand.
New Mexico is one of the first in line to display the Trusted Choice Chopper. Jake Fetty, 16, first met Orange County Choppers founder Paul Teutul, Sr., four years ago after he was diagnosed with astrocytoma and hypopituitarism. Teutel Sr. had "let me touch one of the bikes. That was amazing," recalled Fetty, who is blind.
Be sure to stop by our Industry TradeShow on September 20 at the Hard Rock Casino & Resort.
Photos: Victoria Goff
Jake Fetty talks on stage with OCC founder Paul Teutul, Sr. (left), Bob Rusbuldt, Trusted Choice® president, and David Williams, Make-A-Wish CEO (right).
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
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New Mexico Consumers Pay Higher Auto Insurance Rates as a Result of Court Decisions
Al Berryman, New Mexico State University Tim Query, New Mexico State University
The uninsured motorist part of an auto policy provides coverage for damages caused by a motorist who is both uninsured (or underinsured) and legally liable to the person insured. Consumers in New Mexico pay some of the highest rates in the country due to high costs as a result of several court cases. These decisions include allowing ‘stacking’ the limits of each insured vehicle, requiring punitive damages, not requiring physical contact with a vehicle (phantom vehicle) to be shown, and retroactively changed the rules for selecting policy limits. Turmoil continues in New Mexico regarding the uninsured motorists’ and underinsured motorists’ coverage (UM/ UIM). A New Mexico Supreme Court decision in Fall 2010 focused on what constitutes a legally binding refutation of UM/UIM coverage. The Court changed the requirements for securing a lawfully valid rejection through rulings based on two cases: Progressive Northwestern Ins. Co. v. Weed Warrior Services and Jordan v. Allstate Ins. Co. In Weed Warrior, the State Supreme Court held that an insurer may not exclude UM/UIM coverage equal to the policy’s liability limit unless it has made the offer to the insured, and the insured, through a positive act, rejected the coverage. In addition, the Court held that the decision of the insured to purchase UM/UIM coverage in an amount less than the policy’s liability limits serves as a rejection of the maximum amount of UM/UIM coverage available. The Jordan case is actually three consolidated cases. In Romero v. Progressive, the Court concluded that even though the declarations page of the policy delivered to insured motorists listed the amounts of liability and the UM/UIM coverage provided, the policy must explicitly indicate that higher UM/UIM coverage has been rejected. In Lucero v. Trujillo, Progressive Halcyon’s website was used by the insured to buy insurance. The website had pull-down menus that matched optional coverages available to the applicable price quotation. The Court held that an online application for an insurance policy doesn’t allow for meaningful deliberation about the decision to accept or reject coverage, and the Court noted that there was no evidence the insurer delivered the policy and declarations pages to the insured. The court also noted that the website included a description of uninsured motorist coverage and offered choices of limits and premiums, and recognized that this was a “commendable system of offering meaningful choices to its insureds.” Finally, the Court held that the insurance company should have provided a policy that clearly indicated to the insured that a portion of the entitled UM/UIM coverage had been rejected by the insured. Page 28
In summary, the New Mexico Supreme Court created a four-part test for securing rejections of uninsured motorist coverage. The test requires an insurer to: 1. Offer the insured UM/UIM coverage equal to his or her liability limits. 2. Inform the insured about premium costs corresponding to the available levels of coverage. 3. Obtain a written rejection of UM/UIM coverage equal to the liability of limits. 4. Incorporate that rejection into the policy in a way that affords the insured a fair opportunity to reconsider the decision to reject. To ensure conformity with this four-part test, the Court held that if an insurer fails to meet the requirements for securing rejections of UM/UIM coverage, the policy will be restructured to provide UM/UIM coverage equal to the policy’s liability limits.
Changing the Rules Ex Post Facto This decision has attracted the attention of insurance companies and regulators because the Court decided not to limit the holding to prospective applications. In other words, the decision may apply to policies that were issued prior to the date of the opinion. As noted by the Court, New Mexico follows a general presumption that new guidelines inspired by a judicial decision in a civil case apply retroactively. However, the presumption of retroactive application in association with a new rule can be surmounted through selective prospectivity or pure prospectivity. [For more details on this process, including the three-factor test used by the Court, see “Securing Valid Rejections of Uninsured/Underinsured Motorist Coverage in New Mexico,” by Kilpatric and Moore, Federation of Regulatory Counsel, Inc. Journal, Vol. 22, Fall 2011.] As an analogy, consider the recently completed NBA Finals. What if the Rules Committee had decided that shots made beyond 23 feet, 9 inches now count for two points instead of three, and a dunk shot was now worth one point. Game strategies for the future would change dramatically, and the skills of certain players would increase or decrease in value. However, if the rules applied retroactively to the 2012 NBA Playoffs, the results of the games already played may have changed, even to the point of crowning a different NBA Champion.
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
Impact on Auto Insurance Coverage in NM What impact will this have on various stakeholders in New Mexico? Generally, increased uncertainty from an insurance company’s perspective will force it to increase premiums to cover added unknowable risk exposure. During some market underwriting cycles, it can even cause availability of certain coverages to decrease significantly. Insurers desire an environment in which risk exposures can be reasonably quantified by actuaries. It’s one thing to change the terms of a contract going forward, but applying these changes to policies issued and priced under the ‘old rules’ allows policyholders to be reimbursed for claims when they didn’t pay the premium for the applicable coverage. Intuitively, one would expect the UM/UIM loss experience to increase, which will affect every driver in New Mexico. As a percentage of their household income, insured motorists in New Mexico already pay meaningfully more than insured motorists in neighboring states for UM/UIM coverage. According to the National Association of Insurance Commissioners (NAIC), New Mexico has the 7th highest UM/UIM loss per insured vehicle—a rate roughly twice the national average. As usual, the chief cause for a very high UM/UIM loss cost is the frequency of claims reported. Figure 1 illustrates the bodily injury (BI) or property damage (PD) of claims per 1,000 insured cars in New Mexico and neighboring states. As shown here, the odds of reporting a UM/UIM claim in New Mexico for a single year are better than the probability of reporting such a claim in the other three states combined. Figure 1
Figure 2
Source: Property-Casualty Insurers Association of America, based on NAIC Annual Statement 2009 data and Insurance Research Council, 2007 auto injury closed claims database.
The ruling will create an even larger burden to those who purchase insurance because they will be subsidizing nonpurchasers to an even greater extent. The New Mexico courts have shown an unusual interest in trying to force consumers to buy high limits of uninsured motorist coverage. This may be due to a misunderstanding of the nature of this coverage. The courts seem mistakenly to view this as a liability type of coverage. Uninsured motorists is a ‘first party’ type of coverage similar to collision. Consider the case of a 70-year-old retiree who has Medicare and a Medicare supplement. He is living on Social Security and his retirement assets. He has adequate income, but a limited budget for insurance. He has the choice of buying high limits of uninsured motorist coverage or an umbrella liability policy. He does not have to worry about medical costs or loss of income, so he can easily predict the economic costs of an UM accident. However, he cannot predict the cost of a future liability claim. His real concern is to protect his assets. Clearly, his priority should be on the umbrella liability policy. The fundamental purpose of insurance is to reduce uncertainty.
Conclusion
Source: Property-Casualty Insurers Association of America, based on NAIC data.
In the category of unintended consequences, the Court has raised the specter of future unforeseen claims being filed against insurance companies for an indeterminate amount of time. Attorneys already are standing ready to assist in reopening tens of thousands of previously settled claims. As seen in Figure 2, UM/UIM BI claims involving attorneys cost about triple the amount of non-represented claims.
Perhaps more than any other state, the judicial branch of New Mexico government has expanded its influence over the insurance industry to the point of micromanaging the industry by addressing issues normally handled by insurance regulators. The most recent rulings are part of a long pattern of broad interpretations that have expanded coverage of UM/ UIM in New Mexico. These include pronouncements allowing payment under UM coverage without proof of physical contact from another car and decisions permitting stacking of UM/UIM coverage from multiple policies. Although protecting consumers is a primary objective of insurance regulation, it requires a balanced approach. Creating an environment that causes the cost of automobile insurance premiums to boost the percentage of uninsured motorists while simultaneously increasing the financial hardship of responsible automobile ownership is a suboptimal solution. This article first appeared in the New Mexico Business Outlook published by the Economics Department at NMSU
Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
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2012 August
Sunday
Monday
Tuesday
Wednesday
Clickable Calendar Click on class title to register
Thursday
Friday
Saturday
A Practical Guide to Agency E&O Risk Management
1
5
6
ABQ: ACSR 7 Commercial Liability
ABQ: ACSR 8 Commercial Auto
Roswell: Business Income/ Inland Marine Roswell: Commercial Property
Roswell: Personal Auto Roswell: PL Related Coverages
8CE hrs
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8CE hrs
8
P&C
13
14
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AAI83C Agency Management Tools
8CE hrs
9
L&H
Pre-licensing Class
12
8CE hrs
Pre-licensing Class
SafeTeen Movie Premier “No Exceptions”
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Life & Health Track 22 23 24
25
15
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“Last Chance Seminar” 15CE hrs
CE Committee Meeting
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“Last Chance Seminar”
15CE hrs
Classifieds
Property & Casualty Track 26 27 28 29 30
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New Mexico’s Job Bank Looking to fill a position within your agency? Trying to find a job but don’t know where to look? Whether you are looking for somewhere new to share your special skills or an employer looking for quality, professional employees, we are here 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!
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When ants move in... Try these safe eviction treatments Most of us don’t want to share a home with ants, but we don’t want to douse the place with insecticide either. Keeping your sinks and counters dry and clean is a good start. Here are a few natural treatments to keep ants at bay: • Cinnamon: Place a few cinnamon sticks anywhere you spot ants crawling into your house. The pleasant odor will send ants away. (Garlic cloves work as well, though you may not enjoy the scent as much.) • Vinegar: Spray some apple or white vinegar on areas where ants have set up shop. • Black pepper: Sprinkle a little pepper when you see ants. Watch where they run to, and treat that area as well to prevent them from returning. • Mint: The scent of mint can disrupt ants’ sense of smell. Plant mint outside, especially near doors and windows, and place a few mint leaves in and around your windows.
You know what we're talking about — those bright, plump, fresh, ripe items that basically call your name as you walk through the aisle of a grocery store or past a farmers market stand. Summer’s produce is a collection of food that is illustrious and beautiful, and is comprised of some of the most prized cooking ingredients in our kitchens. Fruits and vegetables are so luscious and tempting during the summer that it's hard to wait to get your hands on them.
n dy Ca
Sum
ets Are Full o k r a fE M ye er
But what should you do when you actually do get this bounty into your kitchen? Click Here to See Easy Recipes and Tips for This Summer's Produce. Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy. ~Norman Vincent Peale
Paul Bosland, a renowned chile expert at New Mexico State University in Las Cruces, NM has been elected president of the American Society for Horticultural Science. The university says Bosland will take over the position at the society's July 31 meeting in Miami. Bosland co-founded NMSU's Chile Pepper Institute and serves as its director. Bosland also co-chairs the New Mexico Chile Pepper Conference, one of the world's largest events dedicated to the chile pepper. Bosland says he's excited to lead the society and will work to attract more international and nontraditional members.
Homeowners Catastrophe Insurance Trust
Your preferred homeowners clients deserve the broadest possible coverage for their homes and personal property. As an active member of IIANM, you have the original -- the very best such program available to you right now. The HCIT Difference in Conditions (DIC) policy supplements basic homeowners coverage by providing protection for catastrophic losses, including FLOOD and EARTHQUAKE.
Just contact:
Trustco, Inc. - HCIT Program Administrator
2063 East 3900 South Ste. 100, Salt Lake City, UT 84124 1-800-644-4334 / Fax: 801-278-9051
www.hcitins.com
Bobbi Phillips / bobbip@hcitins.com Eric Kingdon / erick@trustcoinc.com
Ex IIAN clusiv e M Dis Membe cou nt! r Now that you’ve narrowed down your candidates... Get the most out of every interview and hire more people like your top performers. When it comes to employee hiring, our consultants can help you with everything from evaluating your most promising applicants to redesigning your current selection system. You will learn what qualities are needed for success with your company, how to determine if someone has them and how to hire right the first time. How Can a Personality Assessment Help Me Hire the Best? With the Caliper Profile, our consultants can provide you with a clear, accurate picture of an individual’s strengths, limitations, motivations and potential. Then, these results are compared to our unparalleled database of information about the qualities it takes to succeed in virtually every position, as well as the information you provide about your corporate culture, your management style and the responsibilities of the job. From here, our consultants can tell you if an individual is a natural fit for that position. This is what we call “job-matching.”
Calculate the cost of turnover Independent Insurance Agents of New Mexico - www.iianm.org - * August 2012
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