May/June - Independent Insurance Agents of Maryland, Inc.

MARYLAND MESSENGER
Legislative Update
MAY | JUN 2014
WE’RE PROUD TO HAVE
EARNED AN A- (EXCELLENT)
FINANCIAL STRENGTH
RATING FROM A.M. BEST.
Chesapeake Employers’ Insurance Company,
formerly IWIF, has served Maryland businesses for
almost a century and currently insures more than
20,000 employers. We look forward to protecting
you and your valued workers.
Adve
Publi
To learn more connect with your local agent
or visit ceiwc.com.
Inser
Ad S
Title:
Formerly IWIF
If you
in err
conta
at (41
table of contents
4.
Chairman’s Message
5.
No Such Thing As a Stupid Question
9.
Ask Pat
10.
A Message from the President
Regarding your Membership
14.
Legislative Update
Session 2014 Adjourns
15.
17.
20.
22.
Life Corner
Tidbits
NOTICE TO BOARD OF DIRECTORS
AND MEMBERS OF IIAM
NOTICE OF GENERAL MEMBERSHIP MEETING
Pursuant to Article IV, Section 8 of the bylaws of the Independent
Insurance Agents of Maryland (IIAM) notice is hereby given that
a meeting of the Board of Directors of IIAM will be held in Glen
Burnie, Maryland at the Association Office, located at 2408
Peppermill Drive, on June 12, 2014, and pursuant to Article III,
Section 1 of the bylaws of the Independent Insurance Agents
of Maryland (IIAM) notice is hereby given that a meeting of the
Membership of IIAM will be held in Glen Burnie, Maryland at
the Association Office, located at 2408 Peppermill Drive, on
June 12, 2014. The Board of Directors meeting will begin at
10:00 a.m. and the Membership meeting will begin at 11:00 a.m.
IIAM OFFICERS 2013-2014
Angela Ripley, CIC, CRM, AIS
Immediate Past Chair
Terry Katz, CPCU
Chair
Michael McCartin, CPCU
State National Director
Jay DukeChair-Elect
Don Grauel, CIC
Vice Chair
Rick Raley, AAI
Director-At-Large
Denise Carnes, CPCU
Past President Rep.
Shelley Arnold, CPCU, AU,
President
ARM, AAI, ACSR, AINS
Markets
THE MARYLAND MESSENGER
INDEPENDENT AGENTS OF MARYLAND, INC.
Education Corner
23.
Accredited Customer Service
Representative (ACSR)
25.
Kudo’s to Maryland’s ACSRs
Editor: Shelley Arnold, CPCU, AU, ARM, AAI
Graphic Designer: Maritza Dintino
Advertising Info: www.iiamd.org
The Maryland Messenger is a monthly publication published
for the exclusive use of regular and associate members of the
Independent Insurance Agents of Maryland. Publication of any
article, letter to the editor or advertisement in the Maryland
Messenger should not be deemed an endorsement by IIAM of
the opinions expressed or product advertised. Questions and
comments should be directed to the editor; Shelley Arnold.
Editorial Office, IIAM, 2408 Peppermill Drive,
Suite A, Glen Burnie, MD 21061
phone 410.766.0600 • fax 410.766.0993
email [email protected] • www.iiamd.org
MAY | JUN 14:3
chairman’s message
Terry Katz, CPCU
As I sit down to write my final message this year as your Chair, the sun is shining and the warm weather has arrived. I
am in Washington, D.C. with fellow members of IIAMD attending the 2014 Big “I” Legislative Conference. The cherry
blossoms are in full bloom and our Nation’s capital is bustling with tourists and lobbyists.
This year I was joined by Angela Ripley, Jay Duke, Michael McCartin, and Lou Novick. We met with Senator Ben Cardin,
Congresswoman Donna Edwards, Congressman Sarbanes, Congressman “Dutch” Ruppersburger, Congressman John
Delaney and Congressman Elijah Cummings to discuss the following topics:
• Terrorism Insurance – urging Congress to pass an extension to the current Terrorism Risk Insurance Act (TRIA)
set to expire on December 31, 2014
• Agent Licensing Reform – supporting passage of NARAB II which would streamline the nonresident licensing
of agents and brokers to allow them to better service insurance consumers. Since both chambers have passed
the legislation with bipartisan support we communicated our desire to have this passed as part of the Terrorism
extension.
• Insurance Regulation – While most of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank) applies to banks, securities firms and other financial institutions, some elements of the law impact the
insurance market. The recently released Federal Insurance Office (FIO) report did not call for full blown federal
regulatory oversight but it does contain proposals that encroach on state regulation of insurance. We voiced our
concerns regarding this and our strong commitment to keeping the oversight of insurance at the state level.
• Tax Reform – although we are encouraged by the ongoing discussions of a tax code overhaul, we voiced our
concern regarding Chairman Camp’s proposed third tax bracket of 35% for some individuals and pass-through
entities since this would be a burden for many of our members.
• Health Care Reform – We voiced our concerns about the Affordable Care Act and the challenges faced by
Independent Insurance Agents. Key issues included the proper regulation and training of the so-called “navigators”
and the defining of full-time employee as an individual who works 40 hours per week, instead of the 30 hour per
week definition under ACA.
As you can see, your organization is busy making sure our industry is well
represented both locally and nationally. So this is a good time to request your
support by making a contribution to InsurePAC. Donations can be made via
our website at www.iiamd.org.
As I complete my term, I would like to express my gratitude for the confidence
you have placed in me as Chair of the Independent Insurance Agents
of Maryland. It has been my honor and privilege to serve this wonderful
organization and work with our professional staff, board members and
executive committee. We are fortunate to have so many individuals working
hard for IIAMD.
Finally, I would like to welcome Jay Duke as our new Chair for the 2014-2015
year and wish him the very best for continued success at the helm of our
great organization.
IIAM MEMBERS JOIN HUNDREDS OF AGENTS ON
CAPITOL HILL FOR VISITS TO THEIR LEGISLATORS
Left to Right: Immediate Past Chair, Angela Ripley, CIC; Incoming
Chairman, Jay Duke; Chairman, Terry Katz, CPCU; Lou Novick
MAY | JUN 14:4
No Such Thing As a Stupid Question
By Richard F. Lund, J.D.,
Vice President, Senior Underwriter, Swiss Re
“There’s no such thing as a stupid question
so feel free to ask whatever you want.” That
is one of the first things you hear from
a teacher, professor or educator when
you go into any learning environment
once you reach the high school level.
As a matter of fact, I say the very same
thing when I’m presenting at an E & O
risk management seminar.
How many times have you been in a
seminar where you’re afraid to ask a question,
because you think it seems so obvious, that you’re
afraid other people will think you’re foolish for
asking it? Trust me, if you are thinking it there
are probably at least three other people who are
thinking the same thing but THEY ALSO don’t want
to ask as THEY don’t want to appear foolish. So, let’s
forget about the risk of appearing foolish and ask
the question! It’s been said that pride goeth before a
fall, so if you fail to ask the question, you may just
be opening yourself up to an E & O claim.
As the risk management coordinator for the
Swiss Re Corporate Solutions/Westport Insurance
Corporation Insurance Agents Errors and Omissions
Professional Liability program,I am asked questions
all the time about any number of E & O subjects.
While I may have answered the same question
many times, I treat each one as if it’s brand new.
The reason is simple: if the person knew the answer,
they wouldn’t be asking and while it may be old
hat to me, it’s new to them. They have never run
across the subject before because they may be new
to the insurance industry, a new agent, a new E & O
insured, or maybe even a more seasoned insurance
veteran.
My experience has been that they are really asking
because something is going on in their business that
could ultimately lead to an E & O incident and they
don’t know what to do.
So what kind of questions do I get asked? The
questions may be simple, complex and anything in
between. While some might be general in nature,
some may also depend on a specific state law or
regulation. I don’t rely on my knowledge alone. I’ll
ask our claims team and insurance experts I know
for their opinion before I provide an answer. Why
do I do that? Because I’m not afraid to ask a stupid
question.
Here are just a few of the most common:
Q: Do I really have to document every
phone call with my customers? I know
which are important and which aren’t.
I’ll remember.
A: Yes, you should document every
phone call, even if it is just a short note. If
your customer is calling you, it’s because
they are having an issue that may or will
involve their insurance policy. Why else would
they be calling? Even if it is something so innocuous
as to ask what are the limits on their policy or what
their premium is, what is the underlying reason
why they are asking? If it is about the limits, have
they had a claim? Why do they need to ask about
that? If it’s about their premium, do they owe it?
Are they trying to reduce it? Are they looking for
another quote? If they call about their auto policy
and ask who is listed on it, why do they want to
know? Little things can mean a lot when it comes to
an E & O claim and consistency. Documentation can
be the key to making it defensible.
Q: I heard at an E & O seminar that I shouldn’t call
my customers who have company direct bill policies
when their premium is due. But I know they won’t
remember to pay the bill if I don’t call them. They
just expect that as part of my customer service. Do
I really have to quit calling them?
A: YES, yes, a thousand times yes. If you haven’t
stopped calling them, stop immediately. But before
you do, send a letter to all of your company direct
bill customers, preferably certified mail-return
receipt requested, that effective immediately you
will no longer be calling them to advise them
when their premium is due. The reason is simple,
by calling them you have created a duty that you
did not otherwise have. The one time you forget
or miss calling is the one time they don’t pay their
premium, their policy is cancelled for non-payment,
they then have an uncovered claim, and they blame
YOU because they didn’t get your call telling them
their premium was due. We recently had a claim
where an agency didn’t call any of their direct bill
customers, except one. It was a big account and they
(con’t on page 6)
MAY | JUN 14:5
(con’t from page 5)
knew that they would only pay their premium
when the agency called them. Of course, the
agency person who was responsible for calling
the customer was on an extended vacation, and
no one called the customer when the premium
was due. The customer received the direct bill
notice of payment, but ALWAYS waited to pay
it until they received the call from the agency.
Since they didn’t get the call, they forgot to pay
the premium, the policy cancelled, they had an
uncovered loss of $65,000 and made a claim
against the agency. The agency is clearly in error
but had they not taken on that duty, they would
not have been responsible. The agency has now
sent a letter to the customer, certified mail, and
return receipt requested, that they will no longer
be notifying them when their premium is due.
Q: Why do you want to send the letter certified
mail with return to receipt requested?
800-226-3224
www.fcci-group.com
INDUSTRY EXPERTISE.
PERSONAL SERVICE.
“At FCCI, we keep our
customers informed.
I get to know agents
and policyholders and
they get to know me,
so they know who
to call for help. They
know I’ll give them
great service!”
A: To document in your file that your client
received the letter advising them that they would
no longer be notified by the agency.
Q: Our office has recently gone paperless, i.e.
we scan and store all documents electronically.
Do we still need to retain the paper files and
documents?
Katrina Turner
Senior Underwriting
Technician
A: No. Once you have scanned and stored the
documents electronically, the original documents
should be shredded and disposed of.
FCCI Southeast
Region
Duluth, Georgia
The underlying question from an E & O
standpoint is whether an electronic copy of
an original document can be used as evidence
when there is a claim, and the answer is yes.
The Uniform Electronic Transactions Act (UETA)
was developed by the National Conference of
Commissioners on Uniform State Laws (NCSL) in
the late 1990’s and has been adopted by all states
except Illinois, New York and Washington, which
developed their own laws regarding electronic
transactions. Among the basic tenets of the law is
that any document that is electronic is the same
as a paper document, and as such, is admissible as
the original of the document. In addition, in 2000
the United States Congress enacted the Electronic
Signatures in Global and National Commerce
Act (E-SIGN) which established the validity of
electronic records and signatures under federal
Now, let’s talk about
your business.
General liability • Auto
Property • Crime • Workers’
compensation • Umbrella
Inland marine • Agribusiness
Surety
Coverage available in 18 states.
© 2014 FCCI
(con’t on page 7)
MM14_Turner_3.75x9.5.indd 1
4/16/14 11:08 AM
MAY | JUN 14:6
(con’t from page 6)
law. The key to remember is that once you create an
electronic record, you should immediately destroy
the paper record. Here is the most recent question
I received:
Q: Our agency is trying to get our arms around
some social media opportunities to help promote our
agency. When we started our website redesign last
year, I recall going through some hoops with our E
& O carrier about what was permissible and what
was not. This year we are crawling into Facebook
and Twitter and wonder about E & O implications,
if any. Do you have any information about that?
A: Swiss Re Corporate Solutions and the IIABA have
a module that specifically addresses Social Media
in the new E & O seminar materials, “E & O Risk
Management: Meeting the Challenge of Change.”
Those materials are available on the E & O Happens
Website. I also went to the E & O Happens website
and entered “social media” in the search tool and
got 30 responses. I did the same thing on the IIABA
website and got 150 responses that are throughout
the website including E & O Happens, ACT and
Virtual University, some of which specifically
reference Facebook and Twitter. I recommend
visiting the websites and taking a look at those that
interest you.
These are just a few of the questions that have
come up in the last year. The first three, I have
been asked several times before and the answers
are readily available on several different IIABA
resources, including the E & O Happens Website,
the Virtual University and the Agents Council for
Technology. As you can see from the last question,
many times I’ll take the subject that is being
inquired, enter it in the search feature on the main
page of the IIABA website or on the E & O Happens
page, and I’ll get numerous results pointing to
different places in all three of those locations where
the answers can be found. The reason I do this is not
necessarily because I don’t know the answer, but
because I want to know if there is a place for you
as an agent and member of the IIABA and a Swiss
Re Corporate Solutions policyholder to locate the
information quickly and then pass it on to you.
So remember, there’s no such thing as a stupid
question. The only stupid question is the one unasked.
A new logo for
a new era.
BERKSHIRE HATHAWAY
GUARD
INSURANCE
COMPANIES
Upon our acquisition
by National Indemnity
Company/Berkshire Hathaway
in October of 2012, a new and
improved GUARD emerged. A year later,
we are pleased to introduce a new logo that
better reflects our ENHANCED GUARD BRAND. As
you can see, we highlight the immense resources available
to us through our ultimate parent as we continue climbing to the
top of our industry . . . while retaining reminders of the steps behind
us – an assurance that the best of our old values still remain.
Join us as we reach new heights: visit www.guard.com/apply
7.5 x 4.625
Berkshire Hathaway GUARD Insurance Companies are rated A+ (“SUPERIOR”) by A.M. Best Company and
specialize in small- to mid-sized accounts – featuring Workers' Compensation coverage in 37 states and
jgs_umbrella_7.4x4.625v1
complementary Businessowner's Policy (BOP), Umbrella, and Commercial Auto products in select jurisdictions.
2012
Umbrella Programs that
Give You More Options
Preferred Property Program gives you broader,
more flexible coverage with a range of limits
Our umbrella liability policies are written by XL Insurance with Chubb Insurance
Group for the excess layer—two of the industry’s most highly rated carriers.
We offer four umbrella limits, with coverage you can rely on.
• $5 to $25 Million in umbrella coverage with up to $50 Million in total limits.
• Hi-Rise apartments up to 35 stories eligible, with higher eligible by referral.
• Excess of D&O, General Liability, Auto, Employers Liability, Employee
Benefits and more.
• Developer-sponsored boards eligible.
Contact us for a quote:
888.548.2465
A subsidiary of
JGS
INSURANCE
[email protected]
www.umbrellaprogram.com
®
Service is our specialty; protecting you is our mission ®
960 Holmdel Road, Holmdel, NJ 07733
XL Insurance is the global brand used by XL Group pic’s insurance companies.
Our XL policies are underwritten by Greenwich Insurance Company.
ask PAT
Dear Pat:
When I heard that the Maryland General Assembly was
finishing its 2014 session, I thought of Mark Twain quote:
“Those that respect the law and love sausage should
watch neither being made.” Quite honestly, I wasn’t
watching what was happening. What did I miss?
Channeling Samuel
Clemens
Dear Mark (yes, I recognized your pen name):
What did you miss? That reminds me of another
Mark Twain quote: “Of all the things I’ve lost, I miss my
mind the most.” But I digress.
Right now, because most laws have not gone into
effect, you have not missed much. However, unless you
think about what the new laws will be, you miss business
opportunities. I name a few (with my apologies to Mark
Twain for my extensive use of his work in this column).
Mark Twain knew about dogs. As he said, “It’s not
the size of the dog in the fight; it’s the size of the fight in
the dog.” Perhaps in line with this thought process, this
year the Maryland General Assembly passed a new state
law that recognized that pit bull owners would not be
singled out (as the Maryland Court of Appeals had held).
Instead, all dog owners would generally be responsible
for their dogs, but could defend any suit brought against
them by showing that the injured party was trespassing,
committing a crime or provoking the attack. This new
law gives every insurance professional the opportunity to
remind their clients need to consider how to deal with
potential animal bite liability. As many policies contain
limitations for injuries caused by certain breeds and/or
animals that have a history of causing injuries, there is an
opportunity that you will not want to miss in discussing
how to best protect your client’s needs.
Mark Twain also said: “Never put off till
tomorrow what you can do the day after tomorrow.”
Patricia McHugh Lambert
Pesin Katz Law, P.A.
901 Dulaney Valley Road, Suite 400
Towson, Maryland 21204
410.938.8800 • 410.339.6759 (direct)
410.832.5628 (fax) • [email protected]
That quote reminds me of all the people who put off end
of life financial planning. The Maryland General Assembly,
however, enacted legislation regarding future recoupling
of the estate tax with the federal exemption. This
legislative reform presents an opportunity for insurance
professionals to encourage people to plan, buy annuities
and life insurance, and to deal with business, farm and
estate succession issues.
Mark Twain also considered the issue of precision
of language. As he said, “the difference between the right
word and the almost right word is the difference between
lightning and a lightning bug.” I know it is a stretch to use
this quote to describe the myriad of technical legislation
in the field of insurance, but I like it so much that I
am forcing it to fit. Recent Maryland law modernized
travel insurance—which reminded me that insurance
professionals have opportunities to discuss with their
insureds ancillary travel issues such as what coverage they
have when personal property is stolen during a vacation,
what coverage limitations there are when a person’s home
is left vacant for more than 30 days due to an extended
vacation, and issues concerning health insurance concerns
when a traveler is going overseas. The Maryland General
Assembly also enacted legislation regarding the sale of
limited lines self-storage insurance by owners of selfstorage facilities. Again, this legislation offers insurance
producers the opportunity to discuss whether they may
need a separate self-storage insurance policy.
So dear Mark/Samuel, you may not have needed
to follow the Maryland General Assembly during session.
But beware of missed opportunities if you do know what
laws are going into effect.
My favorite Mark Twain quote is: “Better to keep
your mouth shut and appear stupid than to open it and
remove all doubt.” With that quote, I will—tongue in
cheek and with a tip of my hat to Missouri bard—end.
Pat
MAY | JUN 14:9
A Message from the President
Regarding your Membership
By Shelley Arnold, CPCU
For the past three years, members have received their dues billings and have been required to add their Trusted Choice
dues to their dues check. This year, because Trusted Choice became mandatory in 2010, we have combined the costs
into the dues and the agency will pay one amount. We continue to encourage agents to contribute to their MAPAC and
the IIAM Education Foundation, both having a space on the dues billing for your contribution. As in the past, your dues
may also be paid online through our website at www.iiamd.org.
Now would be a good time to explain how the dues structure works for both the state and the national association.
When an agency joins IIA Maryland, a portion of their dues is retained by the state for our operating expenses and a
portion of the dues is sent to national for the agency’s membership in IIABA. In 2013, IIAM collected $167,228 in dues
and Trusted Choice income. Of that amount, $75,293 was sent to national, leaving Maryland with $91,935 in operating
income from dues payments. This demonstrates why it is so very important that our member agencies participate in all
of our many programs. You must admit that $91,935 doesn’t leave much wiggle room when our legislative efforts exceed
$30,000 in costs per year.
On March 20, 2014, the IIAM Board of Directors approved an increase in our dues, as well as combining the dues with the
Trusted Choice fees. The entire amount paid for Trusted Choice is sent to the National Association in addition to their
portion of the dues collected. The following changes have been approved by your Board of Directors:
LEVEL
New Dues
(includes Trusted
Choice)
Premium Volume
Previous Dues
Increase
1
$450
Premium volume level: $0-$500,000
$375 + $60 TC
$15
2
$600
Premium volume level: $500,001-$1,000,000
$500 + $60 TC
$40
3
$750
Premium volume level: $1,000,001-$2,000,000
$650 + $60 TC
$40
4
$1000
Premium volume level: $2,000,001-$3,000,000
$825 + $120 TC
$55
5
$1250
Premium volume level: $3,000,001-$5,000,000
$1075 + $120 TC
$55
6
$1500
Premium volume level: $5,000,001-$8,000,000
$1325 + $120 TC
$55
7
$1800
Premium volume level: $8,000,001 and over
New Level
$355
Looking around at other associations including other IIA state associations, our dues structure continues to be a bargain.
One neighboring state charges a $593 minimum with a $4834 maximum. When comparing our dues with all the IIA
states, we are still slightly below average. We are the only state that provides their members with FREE mandatory
(Ethics, Flood, LTC) continuing education credits when done in classroom at our facility. Think about that for a moment
because that alone could help pay your dues. Let’s say you have four employees and your dues will be $600. You and
your employees need flood and ethics and you need the long term care. The standard one hour c.e. at IIAM for members
is $10. You and your staff would utilize 27 credit hours (15 ethics, 10 flood and 2 LTC) resulting is a savings of $270. If
(con’t on page 11)
MAY | JUN 14:10
(con’t from page 10)
Maury, Donnelly & Parr
still located in the heart of Baltimore City
the agency writes a few RLI personal umbrella policies and take the 15% commission (highest being paid in any state),
that would further reduce your membership costs. Keep in mind that of this $600 paid to IIAM, $318 of it will go to the
National. I could continue…but I think you get the point.
The Board of Directors, in March, also approved a new category of membership, ‘Other State IIABA members’. This
category would allow those agencies that are members of other states, i.e. Virginia, DC, Delaware, etc., to become
Maryland state members for a nominal fee. The agency MUST be a member, in good standing, of the state IIA where their
agency is domiciled. This follows the IIABA constitution and state rights within that constitution. This member would
be a state member only (they will already be a national member in their home state) and this nominal fee would provide
them with our special member pricing for all events, as well as include them in our mailings, both electronic and paper.
As I prepared the dues study for our Board, I was impressed at the tenure of many of our agencies and wanted to share,
as well as thank those agencies that have been LONG and STRONG supporters of IIAM. All of the agencies below joined
in 1950 or before. In addition to this list, 8 agencies joined in the 50s; 23 in the 60s; 15 in the 70s; 12 in the 80s and
26 in the 90s. That is 99 agencies that became members in the last century. It also shows that almost 50% of our
membership have been long-term or dedicated members with 14+ years of membership.
Maury, Donnelly & Parr
Ad 1907
(con’t on page 12)
MAY | JUN 14:11
(con’t from page 11)
Rossmann-Hurt-Hoffman’s owners
Left to rigth: Norman Breitenbach (EVP) CIC, Stuart Hoffman (VP) AAI, Jeff Torrelli (VP) CIC,
Larry Hoffman (SVP), Wayne Hoffman (COB), John Hinkle, Jr. (Pres) CIC
Staff at Rossman-Hurt-Hoffman, Inc.
(con’t on page 13)
MAY | JUN 14:12
(con’t from page 12)
Agency Name (Alphabetical)
Date Joined
Number of Years
with IIAM
Avery W. Hall Insurance Agency, Inc. (Salisbury)
May 9, 1944
70
(The) Avon Dixon Agency, Inc. (Easton)
June 30, 1950
64
Crawford Yingling Insurance (Westminster)
September 8, 1938
76
Dukes Moore Insurance Agency (Chestertown)
June 28, 1950
64
Edward L. Sanders Insurance Agency, Inc. (LaPlata)
September 5, 1950
64
Elmer J. Rhody Insurance (Baltimore)
January 1, 1948
66
H.U. Dove & Company, Inc. (Baltimore)
February 26, 1920
94
Harry Cohen Insurance Agency, Inc. (Baltimore)
April 14, 1939
75
Hershberger Insurance Agency, Inc. (Grantsville)
May 15, 1950
64
Mason & Carter, Inc. (Baltimore)
May 2, 1928
86
Maury, Donnelly & Parr, Inc. (Baltimore)
May 30, 1914
100
McFarlin Insurance Agency, LLP (Columbia)
April 25, 1950
64
RCM&D, Inc. (Baltimore)
June 23, 1923
91
Rossmann-Hurt-Hoffman, Inc. (Ellicott City)
July 27, 1911
103
Schmeiser, Schone & Williams, Inc. (Bel Air)
May 1, 1925
89
Workmeister Insurance Agency, Inc. (Cumberland)
April 24, 1950
64
I was overwhelmed at Rossmann-Hurt-Hoffman’s 103 years as a member in good standing of the Independent Insurance
Agents of Maryland. They continue to be strong supporters of IIAM’s programs and services.
A special kudo’s to Maury, Donnelly & Parr, Inc., as well, celebrating their membership centennial. We wish you continued
success for the next 100 years and look forward to your continued support of IIA Maryland.
The association office is currently in the process of scanning and preserving all of the minute books and governance
documents from the past 116 years. The Association was incorporated in 1936, but was a recognized force in Maryland
beginning in 1898. It is interesting and humbling to read the minute books and to recognize agencies and members that
have played such a critical role in our longevity and success. We wish all of our member agencies continued success.
MAY | JUN 14:13
Legislative Update
Session 2014 Adjourns
Senate Bill 456
By Brett Lininger
Insurance - Definition of Premium - Inclusion of Motor
Vehicle Record and Accident History Report Fees
The Independent Insurance Agents of Maryland (“IIAM”)
submitted legislation during the 2014 legislative session
in Maryland to address an issue that has become more
prominent over the past several years. As we all know,
insurers file their premium rates with the Maryland
Insurance Administration (“MIA”). Making up those filed
rates are a wide range of administrative costs associated
with the business of insurance. Within personal lines
automobile insurance, insurers obtain Motor Vehicle
Reports (“MVR”) and accident reports (“CLUE”) to
ascertain the nature of the risk for each applicant for
such coverage. The costs associated with these reports
falls into the category of “underwriting expenses”. In
addition, according to the Motor Vehicle Administration
carriers receive discount pricing to obtain the MVR
records from the various services they may use.
Such underwriting expenses are reflected as part of the
administrative costs that are included in the premium
rate filings made to the MIA. Over the last several
years, however, insurers have been increasingly passing
such costs on to the independent insurance producer.
Making the case to the Maryland General Assembly, IIAM
argued that this practice is not only unfair as a double
dip, but also runs afoul of the Insurance Article. If the
costs associated with such reports are reflected in the
premium rate filings, they should not be passed on to the
insurance producer.
Additionally, the MIA in its written testimony made
clear that producers other than MAIF producers are
prohibited from collecting fees from a prospective
customer to cover the expenses associated with the
aforementioned fees.
Senate Bill 456 sought to rectify this situation by changing
the definition of premium as provided in the Insurance
Article to include “driving record report fee” and
“accident history report fee”. The MIA agreed with
this approach in its written testimony by stating that
“SB 456 would ensure a level playing field for producers
appointed to insurers that also offer the direct purchase
of a policy online.” The legislation was signed into law by
the Governor on Monday, April 14th.
Senate Bill 247 (Chapter 48)/HB 73 (Chapter 49)
Civil Actions - Personal Injury or Death Caused by
Dog - Rebuttable Presumption
In the aftermath of the 2012 Court of Appeals ruling
that deemed pit bulls to be inherently dangerous, the
Maryland General Assembly has tried to rectify the
problems resulting from the unprecedented decision.
The 2014 legislative session marked the General
Assembly’s third attempt to undo the ruling. Senate Bill
247/House Bill 73 was approved this session and signed
by the Governor. The new law provides that in an action
against an owner of a dog for damages for personal
injury or death caused by the dog, evidence that the dog
caused the personal injury or death creates a rebuttable
presumption that the owner knew or should have known
that the dog had vicious or dangerous propensities. The
law further provides that for a jury trial, the judge may
not rule as a matter of law that the presumption has
been rebutted before the jury returns a verdict.
An amendment offered in the Senate provides that the
owner of a dog is strictly liable for any injury, death,
or loss to person or property that is caused by the
dog, while the dog is running at large. The exceptions
to this standard are for when the injured person was
(1) committing or attempting to commit a trespass or
other criminal offense on the property of the owner; (2)
committing or attempting to commit a criminal offense
against any person; or (3) teasing, tormenting, abusing, or
provoking the dog.
The law also provides that in an action against a person
other than an owner of a dog for damages for personal
injury or death caused by the dog, the common law of
liability relating to attacks by dogs against humans that
existed on April 1, 2012, is retained as to the person
without regard to the breed or heritage of the dog.
About the Author:
Mr. Lininger is a Principal in the Government Affairs and
Insurance Regulatory Practices Section in the Law Firm
of Semmes, Bowen & Semmes.
MAY | JUN 14:14
Maryland Moves in The
Right Direction
by Scott Zilber
LIFE INSURANCE
MADE
The Top 10 Most Expensive Places to Die- is an ominous list for any
state to be a part of and Maryland has been on this list for some
time. In fact, until last month Maryland had not made a change
to the Estate Tax in the past 12 years. The current Maryland law
allows for a tax of up to 16% on all estates in excess of $1,000,000.
The current federal law allows for a 40% taxation on estates
in excess of $5,340,000 (indexed for inflation) which is up from
$5,250,000 in 2013. On March 20th legislators in Annapolis agreed
to recouple Maryland’s estate tax exemption with the federal
exemption. The Maryland exemption will increase to $1,500,000
in 2015, $2,000,000 in 2016, $3,000,000 in 2017, $4,000,000 in 2018
and couple to the federal exemption in 2019 ($5,900,000 estimated).
Year
Maryland Exemption
2014
2015
2016
2017
2018
2019
(1)
(2)
easy
Federal Exemption (Estimated)(1)
$1,000,000
$1,500,000
$2,000,000
$3,000,000
$4,000,000
$5,900,000 (2)
$5,340,000
$5,450,000
$5,560,000
$5,670,000
$5,783,000
$5,900,000
Estimated at a 2% annual inflation rate
Coupled to the estimated 2019 Federal exemption
Maryland does still have an Inheritance tax, this is a separate tax of up to 10%. While most close relatives and charities are
exempt from the tax there are many who see this as an undue burden.
Maryland’s recent exemption increase is a step in the right direction. It is hoped that these changes will keep wealthy residents
and business owners in Maryland by taking away the allure of neighboring states that do not tax the transfer of wealth.
The Federal Level
The Federal estate tax exemption and rate have been moving targets for the past decade and a thorn in the side of most
advisors. Clients who chose to start planning for the transfer of their estate were forced to make decisions based on prior
laws that were almost certain to be different at the time of their deaths. On January 1st 2013 the uncertainty ended (for
now) and congress made the federal exemption permanent and indexed for inflation on an annual basis by passing ATARA
(The American Tax Payer Relieve Act of 2012). The exemption was $5,250,000 in 2013 and increased to $5,340,000 in
2014, including a top Estate Tax rate of 40%. If congress had not acted the law would have automatically reverted to a
$1,000,000 exemption and a 55% tax rate.
Year
2002
2006
2010
2014
(con’t on page 16)
Federal Exemption
$1,000,000
$2,000,000
Repealed
$5,340,000
Federal Estate Tax Rate
50%
46%
Repealed
40%
MAY | JUN 14:15
(con’t from page 15)
Portability is now “Permanent”
Portability of the federal estate tax became a permanent fixture with no expiration date when congress pass ATARA on the
first day of 2013.
What is portability?
When a spouse dies, if they did not use their federal exemption and an estate tax return is filed in a timely manner,
the unused exemption can transfer to the surviving spouse. In a case where the first spouse has not used any of their
exemption the portability option can effectively double the estate tax exemption ($10,680,000 in 2014). This option may
allow many couples to simplify their estate planning.
Conclusion
The federal and Maryland estate tax exemptions are always a center of discussion when designing an estate plan for clients. It
is important to make your clients aware of these recent developments. If you have clients who have developed an estate plan
it should be reviewed. It is quite possibly they may wish to take advantages of options that were not available at that time.
Please feel free to contact me with any questions.
As an Associate member of the IIAMD we look forward to working with other members to help them round out their
business by partnering to bring our services to their clients. In 2014 we will continue our Life Insurance Made Easy series in
the Maryland Messenger and continue to offer free life insurance continuing education credits to IIAM members.
For more information contact Scott Zilber at [email protected] or 1-800-729-6007
Scott A. Zilber and Belman Klein Associates, Ltd. are not tax advisors. Use of any information from this article is for
general information only and does not represent personal tax advice either express or implied. You are encouraged to seek
professional tax advice for questions and assistance.
1.
Chesapeake Employers Celebrates 100Th Anniversary
This year, Chesapeake Employers’ Insurance Company,
formerly known as IWIF, celebrated its 100th anniversary
and joins the elite group of companies known as
centenarians.
Established April 16, 1914 as part of the first workers’
compensation system in America, Chesapeake Employers
has served as a continuous, guaranteed source for
workers’ compensation insurance. Today, it is the largest
writer of workers’ compensation insurance in Maryland,
employs more than 400 insurance professionals, and has
$1.8 million in assets.
“It is an honor to lead a 100-year-old organization,”
says Tom Phelan, President and CEO of Chesapeake
Employers. “As we celebrate this milestone, my fellow
employees and I will pay homage to our past and celebrate
a century worth of accomplishments. Now, as in the past,
we remain steadfast in our promise to provide value and
outstanding service to policyholders and ensure timely
benefits for injured workers.”
The company will mark its 100th anniversary with a
IIA Maryland Is Working For You!
Through partnership with Trusted Choice®, the IIA
Maryland is proud to announce the launch of the new
Trusted Choice® Freedom Campaign. The advertising
materials of the campaign showcase independent agents
as a trusted source for consumer insurance needs, by
highlighting an independent agent’s freedom to choose from
more than one insurance provider. The campaign’s official
slogan is “Free to do what’s right for you™”.
With new print and web promotional materials, radio
ads, and advertising packages, Trusted Choice agents
will have the opportunity to promote their agencies
more prominently to the insurance buying public. The
Trusted Choice Agent Resource Center hosts print and
digital advertising materials that Trusted Choice agents of
Maryland can easily customize and use to promote their
individual agencies.
Trusted Choice is now also offering Maryland a state-wide
digital media buy, which include display banner ads which
are shown adjacent to content on eligible webpages across
the internet. The display banner ads are targeted based on
age, gender, web behavior, and of course location. Some of
the sites consumers could see the ads are on You Tube, The
Weather Channel, and Careerbuilder.com, just to name
a few. National and state-wide media buys are very cost
year-long commitment to increased community outreach.
Initiatives that go above and beyond its already robust
community relations program include:
•• $100,000 state-wide grant program to benefit
Maryland-based, charitable organizations that
provide human services. Preference will be given
to nonprofit organizations that help develop the
employability of the clients they serve.
•• Employee volunteerism throughout the state to
give back to the communities that have given rise to
the company’s 100-year-old status.
“Caring for Marylanders is something our employees
are passionate about doing,” says Mr. Phelan. “Through
these initiatives, we will honor the people, communities
and businesses in Maryland that have helped make
Chesapeake Employers successful. I am proud to lead
a company comprised of professionals who dedicate
themselves to service, protection, workplace safety and
helping injured workers.”
2.
efficient, and consumer reach is efficient and easier to track.
Finally, as a Trusted Choice agent, you can take advantage
of the expansion of the Marketing Reimbursement
Program. In the past, agents were reimbursed 50% of
their spend on co-branding efforts when they used the
Trusted Choice logo on business cards, websites, and other
promotional materials. While agents can still take advantage
of the 50% reimbursement for up to $500, the new tiered
format of the program allows agents to get more for their
money in advertising.
Tier 1 remains the same, encouraging agents to cobrand
by utilizing the Trusted Choice logo on marketing, advertising, web, and promotional materials. With Tier 2, agents
are encouraged use the new Freedom Campaign advertising materials to receive an additional reimbursement
of $350. Finally, Tier 3 offers a digital consumer reach of
a minimum 800,000 consumers when agents purchase a
national ad buy for a discounted price of $2,250.
Visit the Trusted Choice Agent Resource Center here:
(www.trustedchoice.com/Agents)
Trusted Choice agents can also read more about the
MRP here: https://cobrand.iiaba.net/link/go/125462974
MAY | JUN 14:17
3.
Long-Serving Big “I” Leader Jeff Yates Retires
Passes ACT executive director baton to Ron Berg.
ALEXANDRIA, Va., — The Independent Insurance
Agents & Brokers of America announced the retirement
of Jeff Yates, a 39-year veteran of the association who
most recently served as Agents Council for Technology
(ACT) executive director. Since 1975, Yates has served in
numerous capacities within the association.
“The Big ‘I’ is tremendously grateful to Jeff Yates for his
innumerable contributions to the association and the
independent agency system,” says Robert Rusbuldt, Big “I”
president & CEO. “Jeff has been an amazing leader, mentor
and industry trailblazer. His countless efforts, dating back to
when he joined the association in 1975 as assistant general
counsel to his service as CEO and his role in developing
ACT, have been instrumental to the independent agency
system. We will greatly miss him on our team and wish him
happiness in his retirement.”
“We are also excited to have Ron Berg onboard to succeed
Jeff as ACT executive director,” Rusbuldt continues.
“Ron has been an active volunteer in ACT from almost
the beginning and is the right person to lead this critical
initiative into the future.”
Yates served in the general counsel’s office from 1975
to 1982 (as executive vice president and general counsel
for most of that period). In 1989, he spearheaded
the association’s move from New York to its current
Exclusive Access
4.
Big “I” members insured through the Big “I”-endorsed
carrier Swiss Re Corporate Solutions have exclusive access
to the “E & O Risk Management-Meeting the Challenge of
Change” desk reference materials on the E & O Happens
website. The topics covered in this publication form the
basis for the E & O seminar available through Big “I” state
associations. Agencies that complete the seminar are eligible
for Swiss Re’s 10% loss control policy credit. The following
sections are available for download at iiaba.net/EOhappens:
• Agency/Carrier Agreements – E & O Considerations:
Review key provisions of agency agreements that
could create potential E & O exposures, and E &
O considerations when accommodating carrier
underwriting guidelines.
• Underwriting Agent Duties: Explore key components
for determining an agent’s standard of care and
grounds for negligence, learning in particular how to
balance legal duties to the customer, with running a
And
bits
headquarters in Alexandria, Va. In 1998 he was promoted
to CEO and first retired in 2000. In 2001 he returned to the
Big “I” to lead the ACT program as executive director. He
has received numerous awards and accolades throughout
his 39-year career. The Big “I” has created a lifetime service
award named in his honor that was presented at the Big “I”
Legislative Conference last April. Yates and his wife, Lauran,
are retiring in Bozeman, Mont. A more detailed timeline of
his service is available on the association website.
New ACT executive director Ron Berg previously worked
with MetLife Auto & Home for almost 20 years, advising
on technology strategies and advocating for effective
Real Time agent workflows. He has long been involved
with industry work groups and associations such as ACT,
AUGIE, the Real Time/Download Campaign and numerous
other user group conferences. Berg earned a degree in
computer science at Alexandria College in Alexandria,
Minn.
“The ACT Committee and members want to thank Jeff
for his years of leadership and for working with so many
dedicated volunteers to grow ACT into such a great
initiative,” says Jim Armitage, ACT chair and vice president
of Arroyo Insurance in Arcadia, Calif. “We are also
delighted to have Ron Berg onboard to succeed Jeff. Ron
has been working with Jeff on the transition for two months
now and is bringing passion, experience, dedication and
fresh ideas to the role to help take ACT to the next level.”
value-creating agency.
• An E & O Claim – 360 degree View: Use sample claims
to identify the exposures that may cause an uncovered
claim in order to deploy your risk management efforts
effectively.
• Agency Defense – Documentation: The two primary
defenses when faced with an E & O claim are
invariable practice and documentation. Learn about
good documentation practices and the advantage of
using disclaimer language.
• E & O Considerations of Agency Operations: Over
time, agencies have adopted operations in response
to changes in carrier capabilities, workflows and tools.
Find out which areas in daily operations may leave the
agency vulnerable to an E & O loss.
Other sections of interest include E & O issues with
certificates, E & O exposures when using social media,
limiting exposures to data breaches and minimizing E & O
exposures from excess and surplus lines.
MAY | JUN 14:18
5.
Young Agents Committee ‘Pays It Forward’ By Raising
Scholarship Dollars For InVEST
Young Agents raise more than $48,000 for high school and
college student scholarships.
ALEXANDRIA, Va., – The Independent Insurance Agents
& Brokers of America (IIABA or the Big “I”) Young Agents
Committee (YAC) raised more than $48,000 this year
for InVEST, a one-of-a-kind financial literacy program that
educates high school and college students about insurance,
risk management and financial services. This contribution
brings the InVEST scholarship fund to a program record of
more than $111,000.
YAC’s primary fundraising vehicle was a successful casino
night fundraiser titled “YAC Gives Back: A Benefit for
InVEST Scholarships” in conjunction with the Big “I”
Legislative Conference and the annual InVEST Silent and
Live auction. This is the fifth year YAC has hosted this
successful event with the support of industry leaders.
“We, as young agents, want to make a difference in the
insurance industry that has treated us so well and we
want to be part of the perpetuation solution,” says Quincy
Branch, national Young Agents Committee chairman
and president & CEO of Branch Benefits Consultants
in Las Vegas. “Young agents understand first-hand the
importance of financial literacy and the InVEST Scholarship
fund. By hosting this fundraiser we are able to help
future independent agents, the next generation of CSRs,
producers and principals find a rewarding career in
insurance.”
Collectively, “YAC Gives Back,” the auction and direct
contributions raised more than $111,000 this year. Auction
items were donated by insurance carriers, agents and
brokers, the Big “I” and its state affiliates, and other
industry organizations. The money goes directly to
scholarships.
“The Big ‘I’ is proud of our young agents and their
commitment to helping the InVEST program,” says Robert
Rusbuldt, Big “I” president & CEO. “Continuing success
of the InVEST program is critical to the future of the
independent agency system and the insurance industry
as a whole. We are grateful that our young leaders are so
committed and generous.”
As a 501(c)(3) educational trust, InVEST benefits from
the support of numerous insurance organizations, hundreds
of agencies, brokers and volunteers. The program provides the
insurance industry with motivated, talented and intelligent
professionals through a support structure of state associations,
board members, national staff, teachers and the many industry
professionals who work in the field as classroom liaisons.
OUR DEEPEST SYMPATHY
IIAM extends their deepest sympathy to the family, friends and associates
of Robert A. Crawley, Jr. A long time resident of Camp Springs, Mr.
Crawley died on February 11, 2014. He and William Thomas founded
the Crawley & Thomas Insurance Agency in Lanham, Maryland, where
he worked until his retirement. He was very active in his community
and a veteran of the US Air Force. Online condolences may be made at
monahanfuneralhome.com. The family has asked that anyone wishing to
make contributions in Mr. Crawley’s name do so to the Parkinson’s Disease
Foundation, 1359 Broadway, Suite 1509, New York, NY. 10018.
MAY | JUN 14:19
1.
Coverages include:
Cyber Crimes
Cyber crimes are the fastest growing crimes in the world.
The cyber attacks are up 17 times since 2009 and this
is primarily because only 1 in 20,000 cyber thieves get
caught. Independent insurance agents collect and store
numerous types of private information on their clients.
This information can range from driver license numbers
to corporate trade secrets. As the agents collect this
information they are required by law to protect it from
the public and to keep it secure. It does not matter if
they keep this information on their computer system or
another 3rd party system, if they collected it - they are
responsible for the breach notification.
The Independent Insurance Agents of Maryland now
offers Data Breach Coverage exclusively to IIAM
members. The Beazley Breach Response® policy was
created & tailored to the needs of independent agents.
Coverage is provided on a Non-Admitted basis through
Beazley syndicates at Lloyds with premiums as low as
$250.00*
•
•
•
•
•
•
•
•
Information Security & Privacy Liability
Regulatory Defense & Penalties
PCI Fines & Penalties
Website Media Liability
Cyber Extortion
Legal & Forensics
Public Relations
Fraud Resolution
As a Beazley Breach Response® policyholder, you will
have access to their Data Security Risk Management
website, www.NoDataBreach.com, which provides risk
management policies, procedures, training
and other tools to help prevent a breach of
confidential data.
To request a quote for your agency,
please complete the applications found
at http://iiamd.org/databreachcoverage
and forward to Carla M. MCGee,
ACSR - [email protected] or
fax 410-766-0993.
* subject to Maryland State Surplus Lines Tax
CONGRATS!
Congrats to Nancy Nicklow, CPCU, of Huff Insurance in Pasadena, for being named the 2014 Maryland
Insurance Advocate of the Year by the US Small Business Association. Nancy will be honored at the 30th
Annual Maryland Small Business Week Awards Luncheon on May 15th. Nancy was nominated for this
award by the Greater Severna Park Chamber of Commerce. Nancy is past Chairman of IIAM, serving in
that capacity in 2003.
KUDOS!
We also wish to extend our thanks to Michael
McCartin, CPCU, and the staff of the Joseph W.
McCartin Insurance Agency in College Park. Mike
and his staff hosted the IIABJ (Independent Insurance
Agents & Brokers of Japan) who were in DC for the
IIABA National Legislative conference in April. About
20 Japanese representatives met with McCartin’s group
for an informal brunch and Q&A.
MAY | JUN 14:20
Commercial Lines:
•
Product Availability
Big “I” Markets (BIM) is the IIABA member’s online
market access program with no fees, no volume
commitments and competitive commissions.

ACE

AIG

Chubb
•
•
•
•
•
•
•
•
•
•

Fireman’s Fund
•
Personal Lines:
•
Affluent 4:1 Package (Four Carriers)
•
At-Home Business
•
Collector Car Policy
•
Event Liability
•
Flood - In, Above & Outside of the NFIP!
•
Marine Insurance

Charter Boat

Mega-Yacht

Performance Boat

Personal Watercraft

Small Boat under 27 feet

Yacht

Non-standard Homeowners or Rental Dwellings
•
Personal Excess Policy
•
Personal Umbrella Policy
•
Recreational Vehicles
•
Stand-alone Fine Art & Valuable Articles
•
Travel Insurance

Vacant Dwelling: Non-standard
•
Vacant Property Program (Admitted)
Online Registration
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Bonds
 Bid
 Contractor
 Performance
 Surety
 Other
Child Care
Commercial Builders’ Risk
Community Banks Business Insurance Program
Cyber Liability
Employers‘ Practices Liability
Environmental Impairment-Pollution Coverage
Event Liability
Fidelity/Crime (Wrap+)
Financial Advisors’ E&O
Flood - In, Above & Outside of the NFIP!
Habitational Markets
 Apartments
 Condo and Homeowner Associations
 Vacation Income Property
Highly Protected Risks
Insurance Company Professional & Business Insurance
Program
Miscellaneous Professional Liability
Mobile Food Vendors
Non-Profit D&O Liability
Outdoor Markets
 Guides/Outfitters
 Rod/Gun Clubs
 Fishing and Hunting Lodges/Plantations
Property Manager E&O
Real Estate Agents / Property Manager E&O
Recreational Vehicles
Restaurant Fine Dining and More - Fireman’s Fund
Stand-alone Fine Art & Valuable Articles
Technology Consultants Prof. Liability
Travelers Select Accounts
 Apartment Pac
 Building Pac
 Business Pac
 Commercial Auto
 Condominium Pac
 Contractors Pac
 Garage Pac
 Office Pac
 Religious Pac
 Restaurant Pac
 Store Pac
 Technology Office Pac
 Workers’ Compensation
Wrap+ Executive Liability for Private Companies
We’ve made it easier than ever to Plug into the Power of Big “I” Markets! Register online today and discover a fresh new way to do business. All
products are only accessible online and coverage is subject to licensing compliance and underwriting approval. To register online you will need your
login ID and password, your agency tax ID number, your agency E&O policy, and your state agency/agent license information (where applicable). Log
on to www.bigimarkets.com today to begin the registration process and start quoting in minutes! Product availability varies by state.
r
e
n
r
o
C
n
o
i
t
a
c
u
d
E
5/6/14
Maryland Rules & Regulations
Shelley Arnold, CPCU, AU, ARM, AAI, AINS, ACSR
9:00 AM - 12:00 PM
5/7/2014
Commercial Liability Insurance for Contractors
Don Dudey, CPCU
9:00 AM - 4:30 PM
5/21/14
Professional Development & Account Mgmt - ACSR
Module #5
Nancy Nicklow, CPCU
9:00 AM - 3:30 PM
5/28/14
Commercial Property Insurance - ACSR 6
Don Dudey, CPCU
9:00 AM - 3:30 PM
6/9/14
Personal Automobile Insurance - ACSR
Module #2
Joe Conroy, ACSR
9:00 AM - 3:30 PM
6/11/14
Commercial General Liability Insurance - ACSR
Module #7
Don Dudey, CPCU
9:00 AM - 3:30 PM
6/17/14 - 6/18/14
Life/Health Pre-Licensing Course
Joe Conroy, ACSR
8:30 AM - 4:30 PM
6/26/14
Commercial Property Insurance - AAI 81C
Don Dudey, CPCU
9:00 AM - 4:30 PM
May/Jun
Business
Printing
Mailings
Design
Greeting Cards
Promotional
Products
Serving Anne Arundel and Surrounding Counties Since 1997
410-729-2111
Wedding
Invitations
MAY | JUN 14:22
ACCREDITED CUSTOMER SERVICE REPRESENTATIVE
(ACSR)
IIAM offers two lines of the ACSR designation program: Personal and Commercial Lines
Each designation line has technical modules that must be completed as well as three core modules. Regardless
of what ACSR designation line you choose, ACSR 4, ACSR 5 and Ethics 311 must be completed.
**Modules do not have to be taken in any specific order or time frame.**
Personal Lines ACSR Program
The Personal lines designation consists of three personal technical modules (1, 2 & 3) and three core modules
(4, 5, & Ethics 311).
Module 1
Homeowners
Homeowners Policy Components; Section I - Property Coverages
& Conditions; Additional Coverages, Perils, Exclusions & Conditions;
Section II - Liability Coverages and Conditions; Endorsements
Module 2
Personal Automobile
Auto Policy Components; Liability Coverage, Medical Payments
Coverage, Uninsured Motorist Coverage; General Provisions; Physical
Damage, Duties of Insured; Endorsements
Module 3
Personal Lines Related
Coverages
Dwelling and Mobilehome; Flood, FAIR, Beachfront and Windstorm
Programs; Inland Marine, Watercraft, Umbrella and Underwriting
Commercial Lines ACSR Program
The commercial lines designation consists of four commercial technical modules (6, 7, 8, & 9) and the three core
modules (4, 5, & Ethics 311).
Module 6
Commercial Property
Property Loss Exposures, Common Policy Conditions; Property
Coverage; Causes of Loss and Coverage Forms; Business Income
Insurance; Flood Insurance
Module 7
Commercial General Liability
Liability Loss Exposures and Legal Liability; Occurrence and Claims
Made Coverage Forms; Coverage A - Bodily Injury & Property
Damage, Coverage B - Personal and Advertising Injury; Coverage
C - Medical Payment; Limits of Insurance, Conditions, Identifying the
Named Insured Under the CGL Form; Endorsements, Ratings, Liability
Forms; Miscellaneous Commercial Liability Insurance
Module 8
Commercial Automobile
Commercial Auto Loss Exposures; Business Auto Coverage Form;
Endorsements and Ratings; Garage and Motor Carrier Coverage
(con’t on page 24)
MAY | JUN 14:23
(con’t from page 23)
Module 9
Commercial Lines Related
Coverages
Workers Compensation and Employer’s Liability Insurance;
Businessowners Policies; Commercial Crime Insurance; Surety Bonds;
Marine Coverage, Commercial Excess and Umbrella Liability
Core modules (Required for both Personal and Commercial lines)
Module 4
Agency E&O Loss Control
Defining E&O Basics, Transferring Agency E&O Losses, Agency Law,
Federal Regulations; Handling New Business to Minimize E&O;
Handling Existing Business to Control Agency E&O; Servicing Business
to Avoid Agency E&O Losses
Module 5
Professional Development &
Account Management
Differentiating an Agency Through Service; Exceeding Customer
Expectations; Increasing Agency Profitability Through Customer
Service; Presenting a Professional Appearance; Creating a
Professional Work Environment; Protecting Customer Privacy;
Professional Communication; Updating Customer Accounts;
Understanding Agency Contracts; Building an Agency-Insurer
Relationship
Ethics 311
Ethical Guidelines for Insurance
Professionals
**Online Course** or classroom
Ethical Behavior; Professionalism; Insurance Professionals and High
Ethical Standards; Ethical Responsibility to Groups; Ethical Dilemmas; Ethical Theories and Decisions-Making Tools; Barriers to Ethical Decision Making; Ethical Guidelines
Program Tuition:
ACSR Program
Members*
Nonmembers
Per Module
$90.00
$180.00
*Must be a member of the Independent Insurance Agents of Maryland to receive member pricing
(Tuition includes exam fee, textbook, handouts and CE filing)
**No discount given if you do not take the exam*
Quick facts about ACSR:
•
The modules do not have to be taken in any specific order
•
There is no time limit to complete the program
•
There is NO mandatory continuing education to maintain the designation. Once you earn the
designation it’s yours to keep.
•
The ACSR program offers waivers for the Accredited Advisor in Insurance Program
MAY | JUN 14:24
Jannalez Alviarez, ACSR
Kudo’s
to Maryland’s
ACSRs
Doreen Armstrong, ACSR
Carrie Arnold, ACSR
Michele Arnold, ACSR
Rachael C. Bannon, ACSR
Gretchen Becker, ACSR
Kathryn A. Bell, ACSR
Donna Bennett, ACSR
Nichole Briney, ACSR
Rebecca Brogan, ACSR
Constance Brooks, ACSR
Emily Bucci, ACSR 2012 ACSR of the Year
Tracy Bungcayao, ACSR
Barbara Burk, ACSR
Tracey Burk, ACSR
Special Thanks
to their
Commitment
to
Professionalism!
Donna Carter, ACSR
Jessica Causey, ACSR
Stephanie Colburn, ACSR
Tasha Connelly, ACSR
Joseph Conroy, ACSR
Lisa Crouse, ACSR
R.Delores Culverwell,ACSR
Janie Cuthbertson, ACSR
Joy Davidson, ACSR
Kathy Dicken, ACSR
Mary Jane Donaldson, ACSR
Whitney Donaldson, ACSR
MAY | JUN 14:25
Colleen Dunn, ACSR -
Marilyn Jacoby, ACSR
2011 ACSR of the Year
Veronica Jobus, ACSR
Cynthia Englar, ACSR
Delois Johnson, ACSR
Stephanie Fairley, ACSR
Janice Johnson, ACSR
Louise W. Feeney, ACSR
Cheryl Jones, ACSR –
Ellen Fick, ACSR
2010 ACSR of the Year
Patricia Fields, ACSR
Linda Jones, ACSR
Stephanie Fischer, ACSR
Kenneth Jones, ACSR
Shirley Foster, ACSR
Ruth Jordan, ACSR
Janet Fritz, ACSR –
Lisbeth Joy, ACSR
2007 ACSR of the Year
Barbara Keller, ACSR
Sharon Gardner, ACSR
ReginaKrason, ACSR
Lois Yvette Gathings, ACSR
Nancy R. Kristofik, ACSR
JoAnn Genovese, ACSR
Rebekah Langford, ACSR
Cindy Gnau, CPCU, ACSR
Allison Lanzi, ACSR
Judith A. Godbey, ACSR
Scott Latham, ACSR
Elizabeth Green, ACSR
Dawn Lechner, ACSR
Shelley Hall, ACSR
Patricia A. Lincoln, ACSR
Kathy Harrington, ACSR
Natalie Lopez, ACSR
Lori Harris, ACSR
Kristen Marquez, ACSR
Kimberly Harris, ACSR
Marla Mayles, ACSR
Stacie Harris, ACSR
Carla McGee, ACSR
Dawn Hensley, ACSR
Ashley Kirsten McGrath, ACSR
Michele Herget, ACSR
Michelle Meyer, ACSR
Elinor Hilliard, ACSR
Carlyn Moles, ACSR
Joanne E. Holmquist, ACSR
Joanna G. Moorman, ACSR
Pippa Horton, ACSR
Kerri Morin, ACSR
Rita Hudson, ACSR
Beverly Morton, ACSR
Darlene Hudson Sauerwein, ACSR
Wanda Muncey, ACSR
Mary Ellen Isennock, ACSR
Valerie Murray, ACSR
MAY | JUN 14:26
Lauri Neubauer, ACSR
Kati Jo Schmitz, ACSR
Angela Openshaw, ACSR –
Alyce Schwallenberg, ACSR
2009 ACSR of the Year
Crystal F. Schwallenberg-Sears, ACSR
Mary Oppitz, ACSR
Tracey Seibel, ACSR
Margretta Palya, ACSR
Christine Shelton, ACSR
Heather Parker, ACSR
Vanessa Simmons, ACSR
Carol A. Patrylak, ACSR
Marcia Slaugher-Brooks, ACSR
Lindsay Payne, ACSR
Kimberly L. Smith, ACSR
Jennifer Petrero, ACSR
Melanie Smith, ACSR
Robert G. Pincus, ACSR
Ruth Spaid, ACSR
Bambi Porter, ACSR
Kate Steele-Walter, ACSR
Elizabeth Pregent, ACSR
Elizabeth Stevens, ACSR
Robin Preston, ACSR
Donna Stolzenbach, ACSR
Phyllis M. Price, ACSR
Danielle Supsic, ACSR
Hugh Purvis, ACSR
Mavis E. Surratt, ACSR
Frank Rapisarda, ACSR
Cheryl Terry, AAI, ACSR
Linda Ray, ACSR
Anne Tiemeyer, ACSR
Vicky Rednagle, ACSR
Jennifer Toepel, ACSR
Rebecca Reed, ACSR
Valerie Townsend, ACSR
Christina Reid, ACSR
Melanie Utterback, ACSR
Lacy Revell, ACSR
Angela Vecchioni, ACSR
Mary Rich, ACSR
Lauranne L. Victor, ACSR
Sharon K. Richards, ACSR
Nancy Walten, ACSR
Christina Robinson, ACSR –
Shelley Warner, ACSR
2008 ACSR of the Year
Nancy Lee Wheeler, ACSR
Rayna Robinson, ACSR
Jennifer Whittle, ACSR
Edward B. Rosenthal, ACSR
Michelle Williams, ACSR
Linda Ruszin, ACSR
Kimberly A. Wood, ACSR
Leslie Ryan, ACSR
Ann Zeh, ACSR
Sharon Sabala, ACSR
MAY | JUN 14:27
DON’T GET BITTEN
BY AN E&O CLAIM YOU COULD HAVE AVOIDED.
Big “I” Risk Management Website
www.independentagent.com/EOHappens
Big “I” members whose agency E&O
insurance is written by Swiss Re through
the Big “I” Professional Liability Program
have access to an exclusive risk
management web site.
Log on today to fish for E&O claims
frequency data, real-life case studies and
analysis, sample client letters, sample
agency procedures, agency E&O self
assessments, podcasts on important
E&O topics, and much more.
DON’T BE ON THE HOOK FOR:
Failing to procure coverage requested by the client
Not adequately identifying client exposures
Failing to provide timely notice of a claim to the carrier
Misrepresenting or not explaining policy provisions
Providing inaccurate information to carriers
Failing to properly add additional insureds or loss payees