Philip A. Colclough, Jr.

IIAV NEWSLETTER
111 years in the news
Independent Insurance Agents of Virginia, Inc. - The Virginia Association of Insurance AgentsSM
iN THIS ISSUE...
Pg. 2�����2008 VIRGINIA CPP TOP 10
WRITERS
Pg. 3�����VAPAC STATEMENT
��������������2009 YOUNG AGENTS
CONFERENCE
Pg. 4�����AIP & AIAO STARTING IN SEPT.
��������������ORDER AAI SELF STUDY &
RETAKE EXAMS ONLINE
��������������NEW MEMBER BENEFIT:
FLEXSYSTEM
Pg. 5�����BUYING OR SELLING AN
AGENCY OR BOOK OF
BUSINESS?
��������������NEW MLIS DESIGNATION
Pg. 6�����IIAV EDUCATION CALENDAR
Pg. 7�����SCC SETS HEARING ON
WORKERS' COMP.
��������������HOUSE PASSES NFIP
EXTENSION
Pg. 8�����VOLUNTEER WITH VAIA
��������������LRT US HELP YOU WITH YOUR
HIRING NEEDS
��������������WHY AIAO?
Pg. 9�����IIAV TECHNICAL FORUM
��������������INSURANCE COMPANY RAPPED
OVER ADS
Pg. 10���FOSTERING HOPE IN
UNCERTAIN TIMES
��������������CONGRATULATIONS TO OUR
NEWEST ACSRS
Pg. 11����IIAV OFFERS A PLETHORA OF
ONLINE TRAINING TOOLS
Pg. 12���IIAV PAST PRESIDENT
Pg. 14���ACSR SPOTLIGHT
��������������PROGRESSIVE NAMES KAREN
BARONE ITS AGECNY BUSINESS
NATIONAL DISTRIBUTION
LEADER
Pg. 15���CONSUMERS INDICATE
HOMEOWNERS WOES
Pg. 16���STUDENT HOUSING MARKET
AVAILABLE
Pg. 18���FROM THE DESK OF...
CONTACT INFORMATION
Independent Insurance Agents of Virginia
8600 Mayland Drive, Richmond, VA 23294
1-800-288-4428 / 804-747-9300
Fax: 804-747-6557
[email protected] / www.iiav.com
IIAV does not necessarily endorse any of the
companies advertising in this publication or
the views of its writers.
September 2009
► Aon E&O Claim Second Largest Ever
By Paul Buse ([email protected]), President of Big "I" Advantage® and a
licensed p-c agent
On July 24, Federal Judge Louis Pollak of the U.S. District Court for the Eastern
District of Pennsylvania upheld a December jury award against Aon for an agency
errors & omissions claim. The award was in favor of United National Insurance
Company, which Aon was using for program business for U.S. residential and
commercial construction contractors. Many agents may recall the problems in the
1990s and early this decade caused by a large numbers of construction-defect
lawsuits. The recent Aon verdict appears to find its proximate cause in that trend.
In upholding the December jury award of $24 million, Judge Pollak also enforced
the addition of $8 million of post-judgment interest calculated at the weekly
average of one-year constant maturity treasury yield from the time of original
judgment. As evident in the graph below, even without interest, the verdict of $24
million is the second largest E&O claim according to the running tally of large
lossesAon
maintained
the Big
“I” Professional
Liability
E&O by
Claim
Second
Largest
EverCommittee (PLC). The
graph Multi-million
also shows other
claims
that
have
made
the
record book,
dollar claim highlights important PLC’s
changeunofficial
in insurer-agent
relationships.
and member agents should be aware of the high-dollar potential of agency E&O
claims.
After reviewing the claim information, Mark Wolf, assistant vice president of Big
“I” Professional Liability, noted that the claim highlights not only the fallout from
construction defects claims, but more importantly, the trend agencies are seeing
in insurance companies suing insurance intermediaries they work with.
“Whether we are talking about a mega-broker like Aon and a reinsurance
placement on program business it was doing, or more simply an insurer that paid
a claim that then sues its appointed agency for exceeding their binding authority,
we are seeing this sort of thing happen more and more often,” says Wolf.
(coninued on next page)
(continued from page 1)
In the past, it was very unusual for a carrier to sue one of its agents when the company paid a claim it would not have paid
without the agent’s error. Times and relationships have changed. Agents can expect that if their mistake causes a carrier
to pay a claim it would not have otherwise paid, the carrier will consider suing the agent or agency to recover damages.
These types of claims can come from the agent exceeding binding authority, failing to comply with underwriting guidelines,
providing incomplete or inaccurate information, withholding information, misrepresenting coverage provided by the policy or
failing to provide the carrier with timely notice of a claim.
Claims data from Swiss Re, parent company of Westport and a participating insurer in the Big “I” Professional Liability
Program, is represented in the graph below and
shows claims by insurers against their agents.
As you can see, the average claims payout when
a carrier sues the agent is $31,700, nearly 10%
higher than the average of $28,755 when the
customer makes a claim against them. Moreover,
while only an estimated one in 10 claims is the
result of an insurer suing their agent, there is a
clear trend toward more of these sorts of claims.
For more information on the Big “I” agency E&O
program, contact Linda Loving ([email protected])
or visit www.independentagent.com/eo.
Article reprinted with permission from IIABA
Insurance News & Views, 8/6/2009. ■
Rank
Company
Dir. Written Prem.
1
Travelers
$122,562,117
► 2008 Virginia CPP Top 10 Writers
2
Nationwide
58,179,871
By Joe Hudgins ([email protected]), IIAV Vice President of
Industry Relations
3
Hartford
57,750,603
4
Erie
56,400,639
5
Zurich
44,997,161
6
Factory Mutual
44,417,148
7
Liberty Mutual
42,314,406
8
Cincinnati
41,457,265
9
State Farm
32,749,059
10
Chubb
31,189,620
11
Assurant
24,448,091
12
Fireman’s Fund
23,807,898
1
13
Harleysville
21,691,457
14
Allstate
19,106,809
15
USAA
17,647,017
16
Continental
17,587,913
17
Auto Owners
17,162,567
18
Philadelphia Ind Ins Co
16,598,423
19
Selective
15,725,706
20
Hanover
This month’s installment of company market share highlights
the top 20 writers of CPP business in Virginia for 2008. As you
can see from the chart, Traveler’s is #1; their DWP represents
13% of the state total. The next closest is Nationwide with 6%
of the total. However, Virginia’s share of the CPP business
nationwide is only 3%. That is a bit surprising given our state’s
low unemployment (in 2008) and strong industry and industry
support business activity in our major population areas.
To add a little perspective to all of the numbers, the companies
in the top 20 write just over 75% of all CPP business in
Virginia. 133 companies reported premium activity on this line
in their 2008 annual statements. That leaves 113 companies
competing for the remaining 25% of the business.
Frankly, I was a bit surprised at some of the companies in
the top 20. I would never have guessed that USAA would be
#15. Anyway….the good news is that the independent agency
companies dominate the top 20. ■
2
15,677,593
Total Top 20, Va.
$721,471,363
Total All Companies, Va.
$961,730,604
Total All Companies, National
$34,088,876,000
► VAPAC Statement
VAPAC is the state political action committee which collects funds from the general membership for
distribution to candidates who have a proven interest in and support for insurance legislation; it studies
voting records and accepts contribution recommendations from the Legislative Committee.
$100 contribution received by Phil Hager Insurance, Moneta, in August, 2009. ■
► Networking, Sales Training, and Fun, Oh My…2009 IIAV Young Agents Conference
Where do networking, sales training, and fun all collide into one? At the 2009 IIAV Young Agents Conference taking
place October 22-23, 2009, in Fredericksburg, Virginia. If you are looking to increase your knowledge base in sales and
technology make sure you signup for this conference. If you want to network with top insurance companies, then make sure
to sign up for this conference. And if you
want to do a little of both and have lots
of fun, then you know what you need to
do - Sign Up For The 2009 IIAV Young
Agents Conference.
Independent Insurance Agents of Virginia
2009 Young Agents
Conference
Registration for the 2009 IIAV Young
Agents Conference is available online by
visiting www.iiav.com. Don’t miss out on
this great event!
Thank you to our 2009 sponsors and
exhibitors:
October 22-23, 2009
Fredericksburg Hospitality
House
♦ Sponsors:
Register at www.iiav.com under Events
GREAT AMERICAN
Program Highlights:
♠ Team Challenge Course and Outdoor Climbing Wall
♣ Creating Sales with Technology
How to use technology to increase revenue.
♥ Dale Carnegie Sales Training
♦ Dinner & Casino Event
♠ Interactive Trade Show
Agents will be able to visit with approx. 40 company reps.
8/26/09
Thank You Sponsors:
Grand Conference Sponsors—
Media Sponsor—
Insurance & Financial Advisor
Sponsors—
Berkley Mid-Atlantic Group
Central Insurance
Colony Group
Commonwealth Underwriters
Guard Insurance
Hanover Insurance Group
Harleysville Insurance Company
Imperial A.I. Credit
Jackson Sumner & Associates
Loudoun Mutual
The Main Street America Group
Robin Harman & Associates
Sagamore Insurance
VFSC
For more
information,
visit
www.iiav.com.
Anyone
can attend!
Berkley Mid-Atlantic Group, Central
Insurance, Colony Group, Commonwealth
Underwriters, Guard Insurance, Hanover
Insurance Group, Harleysville Insurance
Company, Imperial A.I. Credit, Jackson
Sumner & Associates, Loudoun Mutual,
The Main Street America Group, Robin
Harman & Associates, Sagamore
Insurance & VFSC.
♦ Media Sponsor: Insurance & Financial
Advisor
♦ Exhibitors: Advanced Restoration,
First National Brokerage Corporation,
Great American, Insurpac-Young Agents,
Imperial A.I. Credit, Insurance & Financial
Advisors, Jackson Sumner & Associates,
The Main Street Group, Markel Corp,
Penn Millers Insurance Company, Prime
Rate Premium Finance, ServiceMaster &
Travelers. ■
3
Imperial A.I. Credit
► AIP & AIAO Starting in September
September is not only the start of the school year, it is also the kick off of two IIAV designation
programs; they are the Associate in Insurance Production (AIP) and the Associate in Insurance
The Big “I” Virginia
doesn’t
endorse
justStart
anybody!
Agency
Operations
(AIAO).
the school year off right by taking steps to enhance your career
potential.
“Excellence in customer service is one of our absolute requirements for IIAV endorsement
and that’s why we endorse Imperial A.I. Credit for insurance premium financing.”
♦ Associate in Insurance Production (AIP): Looking to enhance your sales skills or figure out which
-- Robertstyle
N. Bradshaw,
Jr., is
MAM,
& CEO
of selling
bestIIAV
for President
you? Then
you should look into the AIP program. The AIP program teaches
the full psychology of the sale, from negotiation skills and time management to relationship building
Imperial A.I. Credit and
has teamwork.
become the largest
premium
finance
company
in are part of this program. Class size is limited to 15
Monthly
goals and
sales
reporting
North America by building
a
foundation
of
close
working
relationships
with
so make sure you get your seat reserved today. Class starts September 10, 2009!
its agency partners. Our strength lies in our people. Doing business with us
is easy, whether
it’s standard
financing
or providing
expertise
for more
♦ Associate
in Insurance
Agency
Operations
(AIAO):the
Are
you in line
to take over an agency, thinking about purchasing or
complex
transactions.
an agency or one day running one? Then the AIAO program is just for you. This dynamic program is designed to provide
insurance
agency
owners, producers and managers with the planning, sales and service expertise necessary to build
Benefits
include:
successful
independent
agency operations. Position your agency for continued growth and success. This comprehensive
✰ World class service
curriculum
is
designed
for
those who seek the tools and strategies that will allow their agencies to be attractive business
✰ Local IAIC representative
partners
for
top
national
and
regional agency carriers. Class starts September 24, 2009! ■
✰ Flexible financing terms
The Independent Insurance
Agents of Virginia does not
give its endorsement lightly!
✰ Agency development programs
Partnership that goes way beyond the numbers.
► AAI Self Study and Retake Exams Can Be Ordered Online
To learn more about the benefits of working with Imperial A.I. Credit,
You can now order AAI Self contact
Study Books
AAIat
Retake
exams online.
Justat
visit
www.iiav.com, under education or click
Shane and
Powers
540-246-9331
or via email
[email protected].
here. All AAI self study includes textbook and segmented exam. CE cannot be earned through self studying AAI. Self study
can be combined with AAI classroom to complete the designation. Retake exams will only be sent to a supervisor who7.24.09
can
administer the exam. If you have any questions please contact Kristina Preisner at [email protected]. ■
Save an average of $300 per employee in payroll taxes
Save an average of $300 per
while they take home more pay.
employee in payroll taxes while
they
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more
pay.
Save
an take
average
$300
per
FlexSystem is an IRS Code Section 125 Cafeteria Plan that enables employees to pay for
eligible expenses on a pre-tax basis—an instant savings of nearly 30% for the employee. For
you? Benefits costs are
controlled
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paythat
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IRS Code
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dollar employees
of employeetoparticipation.
pay for eligible expenses on a pre-tax
employee in payroll taxes while
they take home more pay.
basis — an instant savings of nearly 30% for the employee.
HOW DOES IT WORK?
For you? Benefits costs are controlled without restricting choices,
and you
payIRS
lessCode
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for every
dollar
of
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set-up,
employees
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check processing,
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predetermined benefit accounts through salary reduction. When
employee participation.
a qualified expense
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the employee submits a request
For employers, FlexSystem
offers real
advantages
For employees, FlexSystem means real savings,
and receives reimbursement. With on-line administration and
real fast
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it
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• All-inclusiveHow
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industry place funds in • Toll-free customer
service—including a separate line for
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• Exclusive VeriFlex process for substantiation of requests for reimbursement
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FlexSystem’s
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• Mirror-imaging
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• Instant account status availability on-line or
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• All-inclusive fees — no additional charges or hidden fees
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• Enrollment or re-enrollment on-line from the
8.17.09
• Requests
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submissions
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privacy or
of for
your
home
[email protected]
1.800.288.4428
• FlexSystem has a funding arrangement unique to the industry
For more information, please contact Danny Mitchell, VFSC at
4
• Exclusive VeriFlex process for substantiation of requests
For employers,
FlexSystem offers
for reimbursement
real advantages
• Electronic transfer of client funds to FlexSystem — no more
cuttingfees
checks
• All-inclusive
— no additional charges or hidden fees
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any insurance
or other employee
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• FlexSystem
has to
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arrangement
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fax, or
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• paper,
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claim
(debit) card for seamless
real-time
payments
• Instant account status availability on-line or
on FlexSystem’s voice response system
• Enrollment or re-enrollment on-line from the
privacy of your home
► Interested in Buying or Selling an Agency or Book of Business?
Independent Insurance Agents of Virginia is pleased to announce a brand new feature
on the www.iiav.com website permitting IIAV member agencies to post their interest of
either buying or selling an agency or book of business.
Matching agency buyers and sellers hasn’t always been easy, timely or convenient.
This has now changed. Effective immediately, you can post your interest in either
buying or selling on our website. It is fast and easy, and through December 31, 2009 it
is absolutely FREE.
To view existing postings or to post your agency’s interest, simply go to our website, www.iiav.com. After logging in (if you
don’t remember your member login User Name or Password, simply call our offices and ask for Kathy Davis or Danny
Mitchell), click open the Member Resources section. A drop down window will offer additional choices. Select Agency
Buyers and Sellers.
Follow the instructions to add your Agency’s posting either as an interested Buyer or Seller. Here is how four of our member
agencies have already posted their interests.
If you are an Agency seeking a Buyer and don’t want to publicly announce it, you may more discretely post your interest
or simply view
potential buyers
and contact them
directly.
For more
information about
this new member
benefit please
contact Danny
Mitchell (dmitchell@
iiav.com) at 1-800288-4428. ■
► New Designation Being Offered By Big “I”–Management Liability Insurance Specialist (MLIS)
We are delighted to announce that the Independent Insurance Agents & Brokers of America has decided to join with RIMS
in supporting the Management Liability Insurance Specialist (MLIS) certification. Now Big I members enjoy the same 10
percent discount as do RIMS members off the already low course fees.
The MLIS program consists of a two-part curriculum that was designed specifically for insurance agents, brokers, and risk
managers.
♦ Part 1 is comprised of three basic- to intermediate-level courses that cover the fundamentals of all types of professional,
E&O, and D&O liability insurance.
♦ Part 2 consists of four courses that focus on the specific nuances of directors and officers liability, employment practices
liability, and fiduciary liability exposures and insurance.
Completing the seven-course curriculum qualifies an individual to use the MLIS certification for 24 months. To maintain the
certification, the MLIS certification-holder must complete only 3 hours of approved professional or management liability
insurance continuing education credit during the initial 24 months and every 12 months thereafter. This requirement can be
satisfied through just one additional online CE course or by attending approved seminars and conferences held by IRMI or
IIAV. ■
5
Sign up for classes & events - online at www.iiav.com. To register at member
prices, you MUST enter your member id and password. If you do not have this
information, please call IIAV at 1-800-288-4428.
IIAV UPCOMING CLASSES
September - October 2009
I
IAV offers many different types of
classes to meet your education needs…
Designation Courses:
ACSR: Gives CSRs the technical
expertise to maintain a competitive edge.
AIP: Learn the art of selling, negotiating,
time management and relationship
building.
AIAO: Are you going to be taking over an
agency soon? Learn how to operate and
manage an agency efficiently.
AAI: Increase commissions and improve
your insurance knowledge.
CRIS: Learn about the insurance and
risk management needs of construction
projects and contractors.
AISM: Improve communication, learn how
to motivate, build teamwork & provide
leadership. Great for both new and
experienced supervisors & managers.
AIAM: Covers the full psychology of
customer relationship and workflow
management.
AFIS: The nation’s only insurance
designation on agricultural risks.
Pre-Licensing Classes: Property &
Casualty and Life & Health licensing will
be offered in Charlottesville, Chesapeake,
Richmond, and Woodbridge.
Webinars: No need to travel outside the
office with Wednesday Lunch-n-Learn
webinars. The CE comes right to your
desk.
All Over Virginia-Webinars:
September 9 (11:30-1:15): Traps & Tricks of Commercial Property Policy, 2 P&C
September 15 (11:00-12:00): Presenting the Quote, Closing the Sale, Referrals & Follow-up
September 23 (11:30-1:15): Lessons Learned from E&O Claims, 2 P&C
September 29 (11:00-12:00): Improving Sales Skills, Sales Talk & Sales Goals
October 7 (11:30-1:15): Product Liability-Who’s Responsible & Why?, 1 P&C, 1 L&R
Chesapeake:
September 15 (8:30-5:00): ACSR Mod 4 - Agency E&O, 8 P&C/L&H*
Sept. 28-Oct. 2 (9:00-4:30): P&C Pre-Licensing
October 5-7 (9:00-4:30): Life & Annuties Pre-Licensing
October 8-9 (9:00-4:30): Health Pre-Licensing
Eastern Shore:
October 8 (9:30-11:30): 2009 Virginia General Assembly. 2 L&R
October 8 (12:30-2:30): Rental Car Issues - Personal & Commercial
October 8 (2:30-4:30): Misunderstood Homeowners Issues
Lynchburg:
September 10 (8:30-5:00): AAI 81 A - Principles of Insurance, 8 P&C/L&H
Manassas:
September 17 (8:30-5:00): ACSR Mod 9 - Commercial Lines, 8 P&C
September 18 (8:30-5:00): AAI 83 C - Agency Financial Management, 8 P&C/L&H
September 24 (8:30-5:00): ACSR Mod 1 - Homeowner, 8 P&C
September 30 (8:30-5:00): CRIS - Property Insurance for Contractors, 8 P&C
October 7 (8:30-5:00): ACSR Mod 7 - Commercial Liability, 8 P&C
October 8 (8:30-5:00): CRIS - Commercial Auto, Surety, CIPS & Misc. Lines, 8 P&C
Norfolk:
September 24 (8:30-5:00): CRIS - Comm. Auto, Surety, CIPS & MIsc. Lines, 8 P&C
October 6 (8:30-5:00): CRIS - Workers Comp. for Contractors, 8 P&C
Richmond:
September 3 (9:00-12:00): Intro to Insurance Workshop
September 10 (9:00-4:30): Associate in Ins. Production (AIP) Begins, 20 P&C/L&H
September 14-18 (9:00-4:30): P&C Pre-Licensing
September 16 (8:30-5:00): CRIS - Comm. Auto, Surety, CIPS & Misc. Lines, 8 P&C
September 23 (8:30-5:00): ACSR Mod 4 - Agency E&O, 8 P&C/L&H*
September 24 (9:00-4:00): AIAO Day 4 - Consultative Relationships & Sales, 5 P&C/L&H
September 25 (9:00-4:00): AIAO Day 3 - Brand Development & Marketing
September 30 (8:30-5:00): AAI 82 A - Commercial Liability, 8 P&C
October 1 (9:00-12:00): Off-Campus Student Housing
October 1 (1:00-3:00): 2009 Virginia General Assembly, 2 L&R
October 1 (9:00-12:00): Off-Campus Student Housing
October 7 (8:30-5:00): CRIS - Workers Comp. for Contractors, 8 P&C
Roanoke:
September 16 (8:30-5:00): CRIS - Property Insurance for Contractors, 8 P&C
September 30 (8:30-5:00): ACSR Mod 4 - Agency E&O, 8 P&C/L&H*
October 1 (8:30-5:00): AAI 82 A - Commercial Liability, 8 P&C
October 8 (8:30-5:00): CRIS - Workers Comp. for Contractors, 8 P&C
Warsaw:
October 6 (9:30-11:30): 2009 Virginia General Assembly. 2 L&R
October 6 (12:30-2:30): Rental Car Issues - Personal & Commercial
October 6 (2:30-4:30): Misunderstood Homeowners Issues
Woodbridge:
Sept. 28-Oct. 2 (9:00-4:30): P&C Pre-Licensing
October 6 (10:00-12:00): Developing Building R/C Vaules
For questions on classes, please contact IIAV at 1-800-288-4428. A full schedule
of classes and registration information can be found at www.iiav.com.
*This class may qualify your agency for a loss control credit through IIAV’s Westport
and Firemen’s Fund E&O programs.
VAIA’s Intro to Insurance Workshop:
Next Date: September 3, 2009
Come discover the many opportunities that exist within the insurance industry. Learn the basics of insurance and interact
with insurance professionals. Various careers in insurance - underwriters, regulators, claims adjusters, agents, loss control,
and customer service reps will be highlighted.
6
► SCC Sets Hearing On Workers’ Compensation Premium Level Adjustments
The State Corporation Commission (SCC) has scheduled an October hearing to consider a request filed by the National
Council on Compensation Insurance, Inc. (NCCI) to adjust the premium levels charged for workers’ compensation
insurance.
Workers’ compensation insurance provides medical care and wage replacement benefits to injured workers. Almost all
Virginia employers are required to carry the coverage.
NCCI has proposed an increase in the overall premium level for the industrial, federal, surface coal mine, and underground
coal mine classifications in both the voluntary market and assigned risk plan. The proposed changes, which would become
effective on April 1, 2010, for new and renewal workers’ compensation policies, are as follows:
Schedule showing proposed workers' compensation premium increases
Class
Voluntary Market Loss
Costs
Assigned Risk Rates
Industrial
+3.0%
+1.1%
“F” (Federal)
+4.4%
+4.1%
NCCI, a Florida-based rate service
organization, represents insurance
companies licensed to write workers’
compensation insurance in Virginia.
The SCC hearing on the proposed changes
is scheduled for 10 a.m. on Tuesday, October
Coal Mines (Surface)
+17.6%
+18.1%
20, 2009, in the Commission’s second floor
Coal Mines
+1.7%
+4.2%
courtroom located in the Tyler Building, 1300
(Underground)
East Main Street, in downtown Richmond.
Anyone wishing to speak at the hearing as a
public witness should arrive by 9:45 a.m. and sign in with the Commission bailiff. Press Release ■
► House Passes National Flood Insurance Program Extension
By Margarita Tapia ([email protected]), Big “I” director of public affairs
On July 30, 2009, the U.S. House of Representatives passed the National Flood
Insurance Program (NFIP) Extension Act of 2009, H.R. 3139, which extends the
program until March 31, 2010. The NFIP is currently set to expire on Sept. 30, 2009.
The Big “I” praised the temporary extension as a significant and welcome development
for the millions of homeowners and small businesses who count on the NFIP as a safety
net in the event of flooding. If the NFIP is allowed to expire, millions of consumers will
be left vulnerable the next time a flood devastates a community.
Recent years have provided far too many examples of the destruction left behind by floods that highlight the urgency and
importance of updating the NFIP. The Big “I” strongly supports a long-term reauthorization that contains significant reforms,
especially an increase in maximum coverage limits and the addition of optional business interruption insurance.
Earlier this year, President Barack Obama signed an extension just hours before the program was set to expire. The most
recent extension should provide Congress ample time to continue working on long-term improvements to the much-needed
program. Under the 110th Congress, the Flood Insurance Reform and Modernization (FIRM) Act of 2007 made progress in
the House and Senate. The legislation would have extended the program for five years and would have made significant
and needed reforms to help put the program on sound financial footing. The effort is expected to move forward once again
under the current Congress.
The Big “I” strongly believes that homeowners and businesses need both higher coverage limits and business interruption
insurance to adequately insure their property. The association is optimistic that as Congress will include these reforms
in legislation as it considers a long term reauthorization and looks forward to working with the Obama administration and
Congress for a more permanent solution.
Article reprinted with permission from IIABA Insurance News & Views, 7/31/2009. ■
7
► Volunteer with VAIA and Help the Next Generation become Insurance Savvy
According to InVEST, every 7 seconds a baby boomer celebrates a 60th birthday. So that means by
the time you are done reading this article, about 5 insurance professionals have turned 60. How does
your agency or company compare?
If you are looking to help bring top talent from the next generation into the insurance industry, consider
becoming more involved with Virginia Association of Insurance Agents (VAIA). VAIA has a variety of
volunteer opportunities that will allow you to not only help out the insurance industry, but also the community where you
live and work. You can volunteer as a guest speaker, as a career fair representative or volunteer your time to teach at the
Insurance Career Institute. If you are interested in becoming a VAIA volunteer, you can signup online by following this link
or by contacting Kristina Preisner at [email protected]. ■
► Let Us Help You With Your
Hiring Needs
AIAO−Associate
Need new hires or maybe a temporary
position filled? IIAV and VAIA are here
to help with your employment needs.
Whether you are looking to fill a full
time, part time, temporary or internship
position IIAV and VAIA are here to help.
♦ VAIA’s Career Opportunity
Board: Posting a job or internship
is affordable, quick and easy on
VAIA’s Career Opportunity Board.
All postings can be done online at
http://www.insurancecareerinstitute.
com/postings.htm. The prices for
posting a job are as follows and help
VAIA attend career fairs throughout
the state to spread the word about
career opportunities that exist in the
insurance industry. Help VAIA recruit
the next generation by posting today.
♦ Job posting (1 career
opportunity): Price: $50 for 3
months
♦ Internship posting (1 internship
posting): Price: $25 for 6 months
♦ IIAV’s Agent’s Choice Staffing:
Agent’s Choice Staffing Services
is focused every day on finding the
right person to support our clients
– wherever they have needs and
wherever they are located in the
Commonwealth of Virginia. We know
that no two insurance agencies
are identical. Let us tell you about
our flexible approach to solving
your requirements and how we can
support you in the development of
your most important asset – your
human capital. 1-800-288-4428 ■
8
in Insurance Agency
Operations
IIAV’s AIAO focuses on Strategic Planning,
Sales Training & Customer Service.
Why AIAO?
The AIAO program is
recommended for:
• New agencies
• Agencies that
want to grow to the
next level or
• Next generation
of leadership within
the agency.
•••
Attend all eight days
to earn the AIAO
designation.
• Create vision & a strategic business plan for your
agency.
• Learn how to motivate your staff and create a “team”
environment.
• Create a sales cuture & customer focused employees
within your agency.
This dynamic program is designed to provide
insurance agency owners, producers and managers
with the planning, sales and service expertise
necessary to build successful independent agency
operations.
Position your agency for continued growth and
success. This comprehensive curriculum is designed
for those who seek the tools and strategies that will
allow their agencies to be attractive business partners
for top national and regional agency carriers.
For more information about the AIAO Designation
Program and IIAV’s educational resources,
please visit our website:
www.iiav.com
8600 Mayland Drive, Richmond, Virginia 23294
Phone: (804) 747-9300 Toll Free: (800) 288-4428
Fax: (804) 747-6557
7/27/2009
► IIAV Technical Forum – See Recent Posting Below on Additional Insured Status on CGL
Policies:
You can stay up to date with coverage issues on various lines of business. In the past, IIAV
would send out via emails or newsletters important coverage changes to everyone in your
organization. IIAV Technical Forum is a resource that keeps you up-to-date and allows you to
and discuss coverage changes with other insurance professionals. Once you join the Technical
Forum, you will receive emails when an insurance issue is raised that is time sensitive and an
email once a week summarizing any issues/comments posted within that week. Of course, you
can follow a discussion as comments are posted.
In order to participate you do need to join and be accepted by IIAV - open to members only and invited guests( ISO,
NCCI, VAIP, VPIA) In lieu of sending mass emails out to the entire membership, we can target the individuals within the
organization that wish to be kept up to date with coverage issues. Join today. www.iiavtech.groupsite.com
This was recently posted on IIAV’s new Tech Forum:
♦ Verify AI Status for Upstream Parties under Blanket Endorsement: The standard ISO blanket additional insured
endorsement for adding project owners or other contractors as additional insureds on commercial general liability policies
(CG 20 33) may not provide the expected coverage to upstream parties beyond the hiring party. CG 20 33 grants AI
status to a person or organization only when "you and such person or organization have agreed in writing in a contract
or agreement" to provide such status. A strict reading of this endorsement would limit the reach of AI coverage to parties
with whom the named insured has a direct contractual relationship, which would not include upstream parties that have
no contract with the named insured. For example, if a subcontract requires the subcontractor to name the general
contractor (who hired the subcontractor) and the project owner as additional insureds, this endorsement will trigger AI
status for the general contractor but, according to some courts, not for the project owner since there is no contractual
relationship between the two. This is almost certainly not what the subcontractor expected.
Many nonstandard blanket endorsements are broader, extending AI status to anyone to whom the named insured
contractually agrees in a written contract to provide such status, without requiring a direct contractual relationship. Some
nonstandard endorsements even drop the "written contract" requirement. Prudent contractors (or their agents/brokers)
should examine the language of their automatic AI endorsements carefully and take necessary steps to ensure that they
will afford coverage consistent with their contractual obligations. This may be done by adopting nonstandard language,
by asking the insurer to clarify in writing that it does not intend to use the wording of CG 20 33 to avoid triggering AI
coverage for upstream parties, or by using scheduled endorsements to add upstream parties. The latter approach is
subject to human oversight, which a blanket endorsement is designed to avoid.
Reproduced with permission of the publisher, International Risk Management Institute, Inc., Dallas, Texas, from IRMI
Construction Risk Manager Newsletter, copyright International Risk Management Institute, Inc. Further reproduction
prohibited without permission of IRMI. To subscribe to this free newsletter service, visit http://www.irmi.com/newsletters/
■
► Insurance Company Rapped Over Ads
By Bill Kenealy, IDDMagazine.com
New York-based American Medical and Life Insurance Co. (AMLI) has been fined by the New York State Insurance
Department.
The company was accused of failing to cover claims under policies that its advertisements said provided full coverage for as
little as $5 a day. American Medical and Life Insurance Co. sells policies in 38 states and the District of Columbia.
The company agreed to pull the advertisements and to stop selling its partial coverage policies in New York.
According to the Associated Press, John Ollis, president and CEO of AMLI said in a statement that the company no longer
does business with the “marketing entity” responsible for the advertisements. ■
9
► Fostering Hope in Uncertain Times
By Kristina Preisner ([email protected]), IIAV Education Marketing Coordinator
It was a humbling experience that took place on Monday, August 17, 2009, at Congressman Eric
Cantor’s Career Fair. As I drove into the parking lot of Clover Hill High School a little more than an
hour before the actual career fair, I could see a line already forming. First thought was, well maybe
these are exhibitors waiting to get in and the door is still locked. I soon realized though that this line of
professionally dressed individuals in the summer heat was waiting to get inside to find new jobs. Some
people had already been there since 7:30 a.m.
Once finished setting up Virginia Association of Insurance Agent’s booth the anticipation started,
wondering how many people would be there and interested in an insurance career. There was never a
moment of silence once the doors opened. From open to close we talked to over 150 people learning
about their background and what they were looking for now. Some had waited two hours in line just
for a chance to hand out a few resumes in hopes of making new contacts or actually securing a job. The career fair was
originally scheduled till 1:30 p.m. but was extended till 3 p.m. due to the volume of people there.
Overall, it was a great experience and a great way for VAIA to establish a connection with the community of Richmond, as
well as a way for VAIA to promote its Career Opportunity Board. We even met individuals interested in starting a new career
in insurance. Some of the individuals are now going to attend VAIA’s free “Intro to Insurance” workshop on September 3,
2009.
VAIA needs help educating individuals on its mission of increasing awareness on insurance literacy and career opportunities
within the industry. Simple things like posting a career opportunity on the Career Board or letting a friend know about VAIA
programs or volunteering your time as a guest speaker, greatly helps VAIA. When resources are combined great results
can be accomplished. If you would like to get more involved with VAIA please contact Kristina Preisner, kpreisner@iiav.
com.
Virginia Association of Insurance Agents is a 501 (c)(3) non-profit education foundation with the mission to provide
insurance education and training programs to facilitate awareness of insurance literacy and career opportunities within the
industry. VAIA was founded by the Independent Insurance Agents of Virginia in 2004. To learn more about VAIA visit www.
insurancecareerinstitute.com. ■
► Congratulations to Our Newest ACSRs
♦ Ms. Melissa A Parks, ACSR, Bankers Insurance of Wytheville
♦ Ms. Barbara Flowers, ACSR, Bankers Insurance of Danville
The ACSR designation recognizes the knowledge and dedication customer service representatives bring to the Insurance
Industry. They assist agents in researching and providing the best combination of price, coverage and service to their
clients. ACSRs have more product knowledge, better selling and account rounding skills and are highly prepared to provide
clients with outstanding service. ■


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
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







10
► IIAV Offers a Plethora of Online Training Tools
So, you don’t want to drive to a class or maybe your schedule conflicts with class times? Then why not look into taking the
courses you need online. IIAV offers numerous different CE courses and training tools online to help meet your diverse
needs.
♦ Webinar Wednesday Lunch Series:
Time: 11:30 a.m. to 1:15 p.m. (various Wednesdays)
Price: $45-$49 person/session (pricing depends on webinar)
These webinars are interactive and give the participant the ability to “raise their hand” or put their question in writing at
any time to get clarification on a subject. Participants are randomly called upon by the instructor to share comments or
answer specific questions.
♦ Tuesday Webinar Sales Tips-Personal Lines Series:
Time: 11:00 a.m. to 12:00 p.m. (various Tuesdays)
Price: $70 person/session
Would you like to compete for new business on something other than price? This five part webinar series will provide the
training for your personal lines staff to explain and promote what makes you different from other agencies and the Direct
Response carriers. Your staff will improve their ability to prospect, sell and retain clients. You will learn how to develop
accurate sales information that will allow you to grow your agency. If you are a personal lines CSR, producer, supervisor
or account manager this program is for you.
♦ Virtual University:
Time: Whenever you like but you have 90 days to complete the course
Price: Free to $100 per session
The Virginia Learn Center is on the forefront of insurance education, offering a customized online learning platform that
allows you to track your progress and take courses to meet your unique learning requirements. Beginner, intermediate, or
advanced, designations or required training, the VU has classes for you just in time, anytime. Whether it is new employee
training course, ACSR or E&O, it’s all at the VU!
Agent’s Choice Staffing Service
♦ Fraud Training Center:
We have partnered with IIAV to provide top notch customer servic
Time: Whenever you like but you have 90 days to complete the course
policyholder relations specialists and licensed insurance agents to s
Price: Approximately $50 per session
Matthew Frazer · [email protected] · Toll Free (800
The Big "I" Virtual University Fraud Training Center offers comprehensive Anti-Fraud educational tools that put resources
Charlottesville (434) 970-1818 · Culpeper (540) 825-1140 · Richm
and information at your disposal to train insurance professionals to recognize and combat fraud effectively. The course
content provided satisfies state requirements for both fraud and continuing education credits. Furthermore, these
We have
alltraining
the tools
to recruit,
courses provide insurance professionals convenient, engaging and superior
quality
that both
enhancesscreen
career and test
development and increases productivity.
give you the best option for your new team
♦ Essentials for CSR’s:
Time: Whenever you like but you have 90 days to complete the course
Price: $65 per session
“Essentials for CSR's” is an ondemand solution to one of the biggest
challenges facing independent
insurance agents today, training
customer service staff to create
efficiencies and improve job
performance. The modules are
interactive, combining sight and sound
to enhance retention and shorten the
learning curve. Topics include verbal
communication, E&O loss prevention,
customer management, business
writing and negotiation skills. The
twelve e-modules are available on-line
and do not require time away from the
office. ■
Let Us be your Partner
in Helping to Build your Agency.
We have all the tools to recruit, screen and test
candidates to give you the best option for your
new team member!
For more information, visit
www.AgentsChoiceStaffing.com
or contact Matthew Frazer, President
([email protected])
toll free at 1-800-288-4428
11
► IIAV Past President Philip A. Colclough, Jr.—1980-1981
By Danny Mitchell ([email protected]), IIAV Membership/Marketing Director
This is the tenth in our series of conversations with former leaders of Independent Insurance Agents of Virginia. If you
missed the previous articles you may find them on our website:
♦ Gerard Story
♦ Daniel J. Arris, AAI
♦ Charles M. Morrison
♦ George D. Griffith, Jr.
♦ John L. Sim
♦ Robert K. Nein, CPCU, CLU
♦ Daniel J. Peacock, CPCU
♦ Ralph Snead
♦ Bobb Dennis
By all measures, Phil Colclough enjoyed a successful insurance career.
From Woodbury, New Jersey—just south of Philadelphia—Philip A. Colclough, Jr.
must have always had his sights set southward. He’s a soft spoken, yet, imposing
gentleman and it is not hard to imagine him in his youth donning a College of William
& Mary football uniform. He earned a scholarship to play football as a linebacker for
the Indians of William & Mary in 1953. So off to Williamsburg he went. With a degree
in Business in 1957, Phil graduated and moved to Richmond taking an advertising
job with the Ruben H. Donnelley Company. While in Richmond, Phil met Marilyn who
had graduated from the University of Virginia and was at Medical College of Virginia’s
School of Nursing. The following April they were wed.
Colclough’s affiliation with the advertising company was short-lived as he needed to
fulfill an ROTC obligation. He now belonged to the United States Army and Fort Sill,
Oklahoma was his new home. Even though he really wanted to go to jump school, he “landed” in the artillery division.
After training at Fort Sill, Phil, with Marilyn at his side, was sent to Panama. At Fort Kobbe in the Canal Zone, Colclough
participated in the Army’s only Jungle Warfare Training School.
The Colclough family was growing. Now with his obligation to the Army satisfied and with two young children, Phil and
Marilyn moved back to Richmond in 1960. A headhunter who was as Phil describes “a friend of a friend” called him about
a job with the Insurance Company of North America. Coincidentally, Phil had interviewed and tested with INA for an
underwriter position while in college. What Phil really wanted was a position as a Field Man. Once again, he interviewed
and tested with INA and was offered a Field Man position either in Harrisburg, Pennsylvania or Richmond.
Phil opted for the Richmond territory. At that time, there were two casualty Field Men serving the Virginia agents. Phil was
assigned the vast southside territory handling agents from Williamsburg to the Beach, the Shenandoah Valley and from
Charlottesville to Bristol.
In 1963, Colclough was offered the opportunity to join Jamison & Gore, Inc. (now a part of Partlow Insurance Agency, Inc.)
in Winchester with part ownership in the agency. He left INA and moved to Winchester. The agency grew steadily in both
personal and commercial lines. Phil recalls that he began working with the local “Welcome Wagon Lady” by offering a gift
from the agency to new homeowners. A gold and black tie-box style package with a carving knife and an empty slot for the
accompany carving fork was part of the welcome kit. Inside the box, Phil had a message that if the new community arrival
would permit him to quote the auto, home or life insurance, the agency would provide the matching carving fork. Phil said
this was a very successful campaign. In fact, it helped him win a trip to Disneyland in 1964. The agency had built an office
building and the staff had grown to six.
Five years later, Colclough was hungry for an environment with a larger opportunity to sell commercial accounts. With the
equity he’d earned with the agency, Phil, Marilyn and his four children moved to Alexandria. He began considering positions
with large agencies and brokerage firms and entertained jobs in Richmond, Philadelphia and New York. An old colleague
who handled the life business with INA, Ben Pettee, suggested to Phil that he talk with a friend of his with an agency in
Alexandria who was seeking a producer. For two hours one Friday evening in October of 1968, Phil met with agency owner,
Tom Field. This was promising, and the following Saturday, they met for three more hours, and the following Monday
morning Colclough began working with the Smith-Field Insurance Agency. Phil recalls that at that time the agency had one
full-time and one part-time employee. Thirty years later, the agency had grown to 40 employees.
(continued on page 13)
12
(continued from page 12)
The other agency principal was Charles Henry Smith. Smith had invested one
dollar—yes, one dollar—in the agency in 1960. His business was real estate and he
actually had no hand in the operation of the agency. Seventeen years after his one
dollar investment, he sold his interest for over $250,000.
Phil relished this new environment and did what he did best . . . developing a strong
sales force. Tom Field handled the management of the firm. In 1998, Field was 65
and wanted to retire. Colclough wasn’t ready to buy him out, and they negotiated
with Pat Woody at Givens & Williams to buy the agency. This was a great match.
Givens & Williams had a lot of inside personnel but not a lot of salespersons. At the
time of the sale, Smith-Field Insurance Agency had grown to a volume of $20 million. The terms of the sale were focused
not only on the value of the agency at the time but also on new production. Shortly after the sale to Givens & Williams, the
agency was purchased by BB&T.
Phil stayed on until July, 2001.
Northern Virginia is the home to many national associations, and Phil worked many of them. Commercial business was
his forte and he developed insurance programs for groups such as the International Sign Association, Auto Recyclers
Association and International Bottled Water Association. One of his sons, Phil, worked with him in the agency. However, he
now works with Prince Wood Insurance Services, Inc. in Woodbridge.
The Independent Insurance Agents of Virginia has meant a lot to Phil. While in Winchester, he ran for a position on the
Board of Directors, but had to give that up upon moving to Alexandria. He served as IIAV President from 1980-1981 and
followed Steven Lester, Sr. as president of the Virginia Financial Services Corporation, IIAV’s for-profit arm.
Colclough recalls that during his term as IIAV President the encroachment of banks into the insurance arena was at the
forefront and he worked hard to forge serious talks with Professional Insurance Agents with a merger of the two associations
in mind.
Making great industry friends was a tremendous benefit of becoming involved with IIAV. Some of those friendships also led
to business opportunities. Phil and others, including Dan Arris with Brown-Arris-Langhorne, Inc. of Virginia Beach, jointly
pursued offering principally commercial insurance products through banks. They worked with Crestar Bank and the Virginia
Bankers Association as well.
So what’s in store for Phil now? His eyes are still focused southward. He and Marilyn have a condo in Naples, Florida
and actually spend half the year there, leaving Virginia every October and returning in May. The warm temperatures of
Central America must have suited him and Marilyn well. No one should be surprised to one day soon learn that they’ve
permanently moved to Naples. Phil won’t deny that the year-round lure of the Florida weather, not having to deal with
upkeep on a large lawn, and a golf course within walking distance might be too much of a temptation to pass up.
Yes, Phil’s insurance career was successful. However, for every significant business accomplishment to talk about,
Colclough will eagerly share two more about his loving family. In addition to his son, Phil, the oldest daughter, Kim,
specializes in computer software programs and works for Logistical Management Inc. near Tyson’s Corner in northern
Virginia. Daughter Karen with 2 children is in real estate management in Roswell, Georgia, and the youngest son, David,
resides in Vero Beach, Florida and is assistant general manager for large country club.
A walk through the Colclough home will inevitably stop in two places. One is a plaque on his den wall acknowledging Phil’s
“hole-in-one”, the holy grail of golf. More significantly, is a stop in front of his living room fireplace over which hangs a family
portrait of Phil, Marilyn their kids, and seven grandchildren. After 51 years of marriage, Phil would much rather talk about
his family than this career.
When asked to reflect on the insurance business, family, career path, Colclough’s response: “I’d do it all over again.”
Surely he would. But Phil likely couldn’t do it any better. ■
13
► ACSR Spotlight—Doris Brown
Not many people can say they have been with the same company for 50 years, but Doris Brown of
McCaleb-Metzler Insurance Agency can say that. Doris was born and raised in a farming family.
Starting off in Elwood, New York, on her family’s farm and then continuing with them when they moved
to Melfa, Virginia after she graduated high school. Here in Melfa, Doris has called home ever since.
She began working at McCaleb Metzler Insurance Agency in 1959 when she walked into the office
with two children in her arms to pay her automobile insurance premium. While in the office, Doris
said to Mrs. McCaleb, wife of the owner, Mr. Walter McCaleb, "You look like you need some help",
and they both said, “We do”. A week later Doris started working at the family owned agency doing
short-hand for Mr. McCaleb and putting insurance policies together. On May 16, 1972, Doris became
a Resident Licensed Virginia Agent. In November 1981, she successfully completed the Professional Selling Skills Course
from Continental Insurance Company. She then went on to get her Commercial Lines ACSR in June 1989 and her Personal
Lines ACSR in February 1991. All of Doris’ hard work has not gone unnoticed. In August 1990, she was appointed Agency
Employee of the Month from Continental Insurance Company. Now, Doris works part-time at McCaleb-Metzler Agency
renewing commercial lines policies.
Earning the ACSR designation has been very beneficial to Doris. The ACSR courses taught her
to be more aware of the customer’s overall needs, helped from an E & O standpoint and allowed
Doris to feel like she was giving her customers the information necessary to make decisions for their
insurance needs. Doris’s favorite part of working in insurance is the interesting people she gets to
meet and that the industry is constantly changing. When she first started working everything was
done manually, including typing policies. Now everything is done over the computer.
Helping out the community is also very important to Doris. She is a Sunday school teacher at Oak Grove United Methodist
Church Group which has the oldest continuous existing Sunday school in America. Doris also helps out with various other
church groups. From 1985 to 1993, Doris served as Melfa town clerk. She is a life member of Melfa Volunteer Fire &
Rescue Co. and she just finished crocheting an afghan for the benefit of Parksley Eastern Shore Railroad Museum.
Outside of work and the community, Doris enjoys crocheting, walking, watching NASCAR and spending time with her family.
She has two children, a daughter and son. Her daughter is a massage therapist, and her son worked in the HVAC business
for 27 years. Doris also has two grandchildren. Her grandson is a senior at ODU and her granddaughter is in her second
year at JMU.
If someone in your office goes the extra mile, nominate them today for ACSR Spotlight at www.iiav.com. Nominations must
be submitted by an agency principal, manager, or supervisor working at the employee’s agency or company. ■
► Progressive Names Karen Barone its Agency Business National Distribution Leader
Karen Barone has been named Progressive’s National Distribution Leader for its Agency Business. Progressive is the
largest writer of auto insurance through independent agents in the country based on premiums written. Barone will lead
Progressive’s efforts to help its more than 30,000 independent agencies profitably grow their businesses.
“Independent agents are critical to our success and play a key role for consumers shopping for insurance,” Barone said.
“Agents provide us with the largest possible retail network; my job is to make sure we’re offering them the product, prices,
and tools they need to grow with us. I promise to bring my experience and my passion to the position and to be our
independent agents’ #1 advocate.”
Barone’s new responsibilities include maintaining and advancing Progressive’s leadership role in agent technology which
aims to make it easier for agents to sell and service policies. She will also lead Progressive’s sales organization which helps
agents develop marketing plans to win new customers and retain existing ones in an increasingly competitive marketplace.
Barone joined Progressive in 1990 as a manager trainee. Most recently, she was the Central Region Personal Lines
General Manager, a position she assumed in September 2007. In that role, she was responsible for the Company’s
personal auto product in 14 Midwest states. She has also served as a customer service supervisor, claims representative,
product analyst, state product manager and regional marketing director. Press Release ■
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► Consumers Indicate Homeowners Woes
By Veronica DeVore ([email protected]), Big “I” writer/editor
Dropped coverage, late claims payments and lack of coverage options plague many consumers
when it comes to homeowners insurance, according to a recent survey by Consumer Reports.
Agents are in a unique position to address these issues with clients and often find a lack of
understanding about the content of the policy at the heart of customers’ concerns.
While 73% of the 10,500 survey respondents were satisfied with their homeowners policies and
rates remain low overall, many customers also indicated room for improvement in key areas.
The survey showed that excellent coverage can be too expensive or difficult to obtain because
the carriers rated most highly for claims satisfaction (Amica, Chubb and USAA) largely offer high-end policies or cater
to exclusive groups. Many respondents also reported claims problems with some major carriers such as Allstate and
Travelers, and 21% of those surveyed said they had faced delayed claims payments. According to Tobie Stanger, senior
editor at Consumer Reports, customer dissatisfaction can stem from a lack of understanding about what’s actually in the
policy.
“It’s not really clear how many people totally understand what’s covered and not covered,” says Stanger. “That’s true of
windstorm deductibles, when people get notices in the mail, don’t read them, and may be surprised at the coverage. But, a
lot is also covered that people may not be aware of, and it’s useful for the agent to be able to communicate that.”
Jon Love, an agent at A to Z Insurance Solutions in Tampa, Fla., says a major challenge for agents right now is finding ways
for insureds to keep essential coverages, such as wind, even as customers look to save as much money as possible.
“People are desperate, and insurance is something people look at to cut costs,” says Love. “We try to find other ways to get
their premium down, such as higher deductibles and windstorm mitigation discounts.”
Love also counsels insureds on coverages they need but hesitate to accept because of the cost. Sinkholes are a major
issue in his area, and the coverage terms have become complex since the state of Florida divided the coverage into
separate categories for “catastrophic ground collapse” and “sinkholes.” Love says he always spells out to customers very
clearly what could happen to them and their home if they drop or fail to add essential coverages.
On the other hand, Consumer Reports’ survey indicates that some insurers are scaling back coverage without customers’
consent, imposing higher windstorm deductibles or cutting coverage for mold and dog bites. While many coastal states
such as Florida and North Carolina continue to struggle with adequate coverage options as carriers pull out of some areas
entirely, Mike McCartin, a partner at Joseph W. McCartin Insurance in Beltsville, Md., says dropped coverage is extremely
rare in his area and usually only occurs as a last resort.
“The two most recent cases I can think of were related to dogs, where people refused to get rid of dogs after biting
incidents,” says McCartin. “What we’ll see going forward is that carriers have become aware that their losses are on the
rise, so they’ll be a little more aggressive in pursuing properties that need to be inspected and in asking people to make
repairs and maintain the house.”
McCartin says he works with homeowners to make sure they have met the requirements for coverage, especially if the
home has had prior claims. According to Stanger, the agent’s ability to explain complex coverages led Consumer Reports to
suggest in its survey results that consumers contact an independent agent for advice on their homeowners insurance.
“Suggesting that customers go to an independent agent is a change (for Consumer Reports),” says Stanger. “I don’t recall
that we’ve said to go to an independent agent before; in the past, we made more of the direct writer.”
Article reprinted with permission from IIABA Insurance News & Views, 8/13/2009. ■
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► Student Housing Market Available
Student housing has traditionally been a difficult class to place in the standard
market. Big “I” Market’s target market, whether located in an urban, rural or
coastal location, includes accounts that are well-managed, well-maintained and
controlled by experienced owners and management personnel. Any property with
updates in the last 30 years is eligible.
Management―The property owner/manager must have a minimum five
years experience in renting to students and should be located in close proximity to the property. Property owners and
management personnel should exercise a high level of supervision and security to provide students a safe place to live. The
depth of the property owner’s management skills and experience is reflected in the pricing of the overall risk.
Security―Security is one of the most important issues in student housing. All exterior doors must be locked as well as the
individual unit. The immediate grounds should contain adequate lighting inside and outside of the building to minimize the
potential of criminal behavior and unnecessary loitering. Experienced property owners will not allow roof access by students
and will visit the property regularly to monitor daily activity.
Limit of Liability Restrictions and Deductible Requirements―Student occupancy has a higher rate of building
vandalism and “hard living” damage to structures. Big “I” Markets requires a separate $2,500 tenant vandalism deductible
to limit its participation in a loss situation involving tenant vandalism. It restricts its business owners liability limit to
$1,000,000/$2,000,000.
Restrictions:
♦ No porches or balconies more than 20 feet from the ground
♦ No fraternities or sororities
♦ No roof access by students
♦ Must have locked exterior and interior doors
♦ No working fireplaces or wood-burning stoves
♦ Must be well-lit inside and outside
To access this market, attend Richmond class on October 1…visit www.iiav.com under Education and then calendar for
more information. ■
► Harford Mutual’s New Director of Marketing & Business Development
Harford Mutual of Bel Air, MD, is pleased to announce that Jeffrey S. Rink has joined the Harford Mutual
team as Director of Marketing and Business Development. Jeff has over twenty years of insurance
experience working in various underwriting, marketing, sales, and management roles. Jeff’s extensive
commercial lines experience will help Harford Mutual enhance its brand and increase market share while
maintaining current profit levels. Jeff is a graduate of McDaniel College in Westminster, MD and a long time
resident of Harford County, MD.
Harford Mutual writes Commercial Lines Property and Casualty business in Virginia, Maryland, Delaware, Pennsylvania,
New Jersey, Tennessee, North Carolina and the District of Columbia. Press Release ■
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► The Hanover Launches New Insurance Option to Protect Family Members in Virginia
Assisted Living Facilities
The Hanover Insurance Group recently announced the availability of a new product offering
that can extend homeowners coverage to provide insurance for family members in assisted
living facilities.
The coverage is more important than ever as the population of people residing in such
facilities continues to grow—today far exceeding 1 million residents throughout more than
36,000 facilities nationwide.
Assisted living care coverage—which can be added to new and existing Connections® Home policies— is a smart option
for customers who have spouses, parents or children living in assisted care facilities. Highlights include:
♦ Coverage available for more than one relative; with a separate charge for each
♦ Affordable premium for each named person
♦ Personal property protection up to $10,000 and includes hearing aids, eyeglasses, false teeth and dentures, contact
lenses, media alert devices, walking aids and wheelchairs that may be lost or damaged
♦ Personal liability coverage limits of $100,000 or $300,000
♦ Additional living expenses coverage of $500 per month up to $6,000 if the facility operation is suspended or it is not fit
to live in as a result of a covered loss.
The introduction of assisted living coverage kicks-off the company’s “Think Hanover” program, a series of product, service
and technology investments that The Hanover is making in its personal lines business in 2009. “Think Hanover” is the
tangible embodiment of the company’s unwavering commitment to being the best total account writer with an unrivaled
sales and service experience for its partner agents.
“While our coverage is not just for seniors, we expect that the number of people who need assistance with daily living will
grow significantly as the baby boomer generation ages,” said Marita Zuraitis, president of The Hanover’s property and
casualty companies. “This unique and affordable coverage is just another tool The Hanover is offering to help our agent
partners differentiate themselves in the marketplace by offering their customers valuable protection that they may have
otherwise gone without.”
“The investments and enhancements we plan to make in our personal lines business this year are further indications of our
excellent financial position and our steadfast commitment to being the best partner for independent agents. Now, those are
great reasons to ‘Think Hanover,’” Zuraitis noted. Press Release ■
17
From the Desk of...
September 2009
the President & CEO
► And We Can Do More!
♦ Last year IIAV returned over $65,000 in commissions to its
membership through product access programs we support.
♦ According to CE submissions, IIAV is by far the largest provider of education
regardless of format.
♦ IIAV’s outreach program to high school and college students is without equal.
♦ IIAV is virtually alone in member and industry representation before the legislature.
♦ IIAV has some of the best qualified industry professionals working daily in support of our members.
♦ The IIAV website has some of the most useful resources available to the busy industry professional and provides 24/7
access and help for almost any question that might come up.
But we need to and can do more. Frankly, however, I look to you, the IIAV member, to help us chart our future course. Is
there something that IIAV is not doing or is not concentrating on that you believe is critical to our programs and industry?
After all, you are the boss and IIAV exists to help you and your agency.
One of the areas I believe we need to do a better job of is driving the consumer to the independent agent. I truly believe
that the services that an independent agent provides are too good to be true. Talk about an expert resource! I’m absolutely
positive that many people and businesses think you need to pay a fee to take advantage of the services of an independent
agent. Anecdotally that’s exactly what some students believe.
I’m less concerned about a lizard taking business away from us as I am concerned that people just forget that the services
of an independent agent are available in the first place. But should we and how do we get our message out?
I spoke with one agent who didn’t want to advertise because they wanted to be selective about who they targeted for
providing services to. Is this your business model? Should IIAV work to promote the services of the independent agent in
the first place? For a long time I’ve had the idea in the back of my head that we should target a particular season – such as
hurricane season – and through a coordinated media campaign advertise that consumers should get prepared for hurricane
season by seeing an independent agent for an insurance audit. “Make sure you’re prepared!” Perhaps this is even a
coordinated effort that our company partners would like to participate in.
So what’s your opinion? Is this an important program for IIAV to embark on? Is it worthwhile? Or are there other efforts
that you believe we should be concentrating on? I look forward to hearing from you.
Sincerely,
Robert N. Bradshaw, Jr., MAM
President & CEO ■
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