June 2014 - Associated Risk Managers

AN
Message
from the New
Chairman
IN THIS ISSUE
Priscilla Hottle
ARMNEWS
Introducing: ARMI Agency................ 2
ARM Regional Reports...................... 3
ARM Regional Reports...................... 4
Anniversary Celebrations.................. 5
ARM National Conference — April 29 – May 1, 2014...................... 6
Did You Get Your Extra 2%
Commission?..................................... 8
Flood Insurance Program
Changes............................................ 9
Biking for Bob................................. 11
In Memoriam.................................. 12
A little more than a month ago, ARM International spent three days together in beautiful
Alexandria, VA. While the rain kept us inside, our time was filled with great business discussions,
networking, education and information on a number of products and resources. We were
fortunate to have Bob Bradshaw, President of the Independent Agents of Virginia, and Charles
Symington, IIABA’s Senior Vice President of Government Affairs, speak to us about the legislative
issues impacting our industry and our own agencies today.
This year’s ARM National Conference was outstanding, thanks to the hard work and dedication
of Scott Spangler, ARM Executive Director, and Rose Marie Rigoni. Our final evening together
(sponsored by RPS) was cruising the Potomac River on the Dandy viewing the beautiful
Washington monuments! Scott and Roe — many thanks — fantastic job! Joel and Dave — as
always, we appreciate your partnership, your support and your generosity.
You have an outstanding team of ARM members in leadership positions — a top notch Board of
Directors, committed and forward thinking State and Regional Executives, talented Committee
Chairs and Committee Members… all looking to enhance the ARM value for all of our members.
Introducing ARMI Agency!
Independent agents working together to stay independent.
ARM members now have one more way to compete in the ARM market: ARMI Agency. The
newly branded ARM entity, a wholly owned subsidiary of ARM, was voted into the ARM network
early this year. ARMI Agency will offer new programs and new products to ARM members.
Danny Gleason, ARM South director, is ARMI Agency’s first president; look for exciting things to
come through ARMI Agency.
We need your data!
In order to develop the programs you want to sell, provide you with specialty products
branded for ARM, and examine our volumes in total with carriers to maximize and enhance
our relationships, we will annually request your overall premium volumes through your State
Executives. We ask for your support and complete response to these requests so that ARMI
Agency can do the best job possible for all of us!
ARM Programs, Products & Services!
Our past Chairmen have all urged you to USE OUR ARM PROGRAMS! I continue the message...
All of our programs may not work in your Agency, but many of them will! ARM is not just another
market in your agency, it’s an organization that you own and in which you have a financial
investment. When possible, choose ARM programs and products first!
We are finalizing plans for our 2015 Conference and will communicate them to
you once complete. In the interim, don’t hesitate to call 540.351.0862 or email me
[email protected] with any suggestions, recommendations and new ideas. As
your Chairman, I hope to hear from you.
No. 24 June 2014
www.armiweb.com
Priscilla Hottle
Introducing: ARMI Agency
Independent agents working together to stay independent.
ARM members now have one more way to compete in the
market: ARMI Agency.
The purpose, he says, is to try give ARM a vehicle to bring
national contracts into place. He cites one company ARM
does business with. “We do about $12 million nationally,
but it’s all segmented into regional contracts. By bringing
the total in together, we can do better regionally.”
The newly branded ARM entity, a wholly owned subsidiary
of ARM, was voted into the ARM network in February
2014. ARMI Agency is a vehicle under which various carrier
contracts across the country are gathered and managed.
From new programs to new products, ARMI Agency makes
it easier to move business through the ARM network.
Gleason was the driver of the new agency, says Priscilla
Hottle, newly elected ARM Chair. “Danny was very
instrumental in bringing this to the table.”
The concept came about late in the summer of 2013. Before
the ARMI Agency formation, members would ask for a
program or product and then have to wait for the national
board to approve the request, which took time.
As such, Gleason was appointed president. Other officers
include Mary Pursell, vice president, and Dick Simmons,
secretary-treasurer.
Now that ARMI Agency is operational, Hottle sees a number
of benefits. “It’s a way for us to give more value to our
members, but also to really strengthen our organization
and allow us to leverage our strength with national and
multi-regional contracts,” she says.
Now with ARMI Agency, new business is managed faster
and with a singular focus on making sure agents have the
products and programs they need to compete. Programs
and products from across the country will now be under
the ARMI Agency banner, making program maintenance
easier.
Another benefit of the ARMI Agency entity is the chance
to create more awareness around the ARM banner. Case
says plans include developing relationships with carriers
and making ARM part of their vocabulary. “They know who
we are as individual agents, but I don’t think most carriers
realize how big of a factor we are in their agency book,” says
Case.
Immediate past ARM Chair Brenda Case says another real
benefit of ARMI Agency is the ability to locate and grow
programs that have wider-than-regional appeal. Because
many of the programs have been developed at the regional
level, often there was no knowledge or crossover into other
ARM regions. “As regional directors would meet and talk,
they realized some of their programs would have wider
appeal. But we didn’t have a structure to support that,” says
Case.
As ARMI Agency becomes a more integral part of the
ARM network, its founders are excited over the new
opportunities the Agency will present. “There are exciting
things to come. You’ll be hearing more,” says Hottle.
“As we chewed through this we realized we needed an
ARMI Agency. We needed a function that all of us would
be involved in — executive directors, member agents, and
partners — to get together, brainstorm, and work out all
these things,” she adds.
Also, Case wants to remind agents that their voices matter.
“We heard you,” says Case to ARM agents. “We asked for
your input. You gave it. This is exactly in response to that
input.”
Danny Gleason, ARM South director and ARMI Agency’s
first president, says ARMI Agency is working toward
consolidating current contracts under the Agency
management model. “We’re trying to create something of
value by taking small steps and building a good foundation,”
says Gleason.
As we chewed through this we realized we needed an ARMI Agency.
We needed a function that all of us would be involved in — executive
directors, member agents, and partners — to get together,
brainstorm, and work out all these things.
— BRENDA CASE
2
ARM Regional Reports
ARM of Illinois
ARM of Northeast
Gary Semmer
John McLaughlin
Five member agencies from the ARM of Illinois region
attended the recently held ARM National Conference in
Alexandria, VA. Once again, thank you to Scott Spangler and
Roe Rigoni of ARM Partners for hosting another enjoyable
and successful conference.
We are pleased to announce that ARM of Connecticut is
celebrating 30 years as an ARM state. On June 28, 1984,
a group of agents in Connecticut joined ARM. While the
agents have changed throughout the years, the core
philosophy remains the same: “Sharing ideas and creating
goals with likeminded independent insurance agents.”
Today, ARM CT has nine agents in their cohesive group,
meeting monthly to continue sharing ideas and creating
new goals.
In other news, ARM of Illinois has brought two new services
to our membership. ARM Illinois and the Iroquois Group
entered into a joint market agreement in April offering the
following services to Illinois members: The ARM/Iroquois
Aggregation Platform opens market alliance opportunities
to members to leverage smaller books of business with
Iroquois carriers in the hope of securing profit sharing
revenue, and; the Market Access program, which opens up
new carrier markets to ARM of Illinois members. Currently,
ARM of Illinois has nine members that have completed the
sign-up process and another nine members committed to
the program.
Another milestone in the region: Davies and Associates
celebrates 50 years as a family-owned independent
insurance agency. Located in Murray Hill, NJ, they have
served the community for 50 years under the direction of
the Davies family. Ted Davies is principal and current ARM
NJ president.
Congratulations to both groups!
Our annual regional meeting is September 16 and 17 at the
Mohegan Sun Resort and Casino, and offers an opportunity
to meet with and network with fellow members and also
with partners that we all do business with. Save the Date!
After 15 years of dedicated service, Executive Director Bob
Pegg is leaving ARM of Illinois to pursue other opportunities.
We thank Bob for his contributions to ARM of Illinois and
ARM National, and for his commitment to helping ARM
grow. We wish Bob the best as he moves forward.
REGIONAL
REPORTS
3
ARM Regional Reports
ARM of Ohio
ARM of Virginia
Terry Quested
Dick Simmons
It’s been 40 years since ARM Ohio was formed and became
a national ARM Chapter. Then, our first account in the
Special Programs was school risks (buses) begun August 1,
1974 —coincidently the same year this Executive Director
started in the insurance industry for a Lloyd’s of London
broker.
ARM of Virginia was well represented at this year’s National
meeting. I’m proud to announce that nine of our eleven
members attended the event in support of our own Priscilla
Hottle, who was installed as the new ARM Chairman. As
the host region for this year’s event, we were happy to see
the weather finally cooperate for our dinner cruise on the
Potomac. One hundred people attended the cruise.
Our summer meeting is August 21 and will be held at
Hilton Hotel, Polaris Parkway, Columbus. Over 25 invited
carriers, brokers and vendors have the opportunity to
network with representatives from all member agencies.
The event is preceded by the Weaver McFadden Memorial
Golf Tournament, recognizing two accomplished members
whose presence will never be forgotten.
As to the Annual Meeting, it highlighted data collection
as a hot topic, and new programs for pool services and
payroll company partnering were introduced. The array
of speakers was once again impressive. Thanks to all our
vendor partners. As usual, it turned into another eat-a- thon
with lots of good food.
We are happy to extend a warm welcome to our newest
ARM Virginia member... Denise Lloyd of D. H. Lloyd &
Associates! With the agency’s membership, ARM Virginia
has now expanded our footprint into the District of
Columbia.
Cyber insurance awareness continues to grow, and
ARM agents are signing up for the Cyber Insurance and
Risk Management certification course. Information and
resources available at http://armcybertech.blogspot.com.
Congratulations to Russ Davies from Andres O’Neil & Lowe
Insurance in, Bryan, Ohio, who was elected to the ARMI
Board of Directors.
Plans are now confirmed for the Fall ARM of Virginia
meeting, to be held October 16 (Thursday) at the Boars
Head Inn in Charlottesville. Save the Date!
We are pleased to announce our newest Member agency,
Surance Corp., Galion, Ohio. Agency Principal Kevin
McElligott assumed the ARM Shareholding from exiting
member, Midland Service Corporation, where he has
worked for nearly 20 years. Midland Service, led by Charles
Walker, was a founding member of ARM Ohio in 1974.
Charlie’s contributions to ARM span four decades and
cannot be measured or summed up in a brief comment. On
behalf of ARM Ohio members, we extend grateful thanks
and best wishes to Charlie and his wife Marion in the next
phase of their lives.
REGIONAL
REPORTS
4
Anniversary Celebrations
ARM of Connecticut Celebrates 30 Years
On June 28, 2014, ARM of Connecticut celebrates an
anniversary. The day marks 30 years that ARM Connecticut
has been an integral part of the ARM family.
Massachusetts, and New Jersey. ARM CT member agents
have served their community and industry throughout the
years, including serving on industry association boards and
holding the position of president on some of the boards.
Since its inception, ARM CT has been meeting monthly
to network, share ideas and market information, and
determine new ways to create opportunity for its nine
member agencies. ARM Connecticut agents adhere to a
common core philosophy: “Sharing ideas and creating
goals with likeminded independent insurance agents.”
“ARM of Connecticut has become, to its members, a way
to create opportunities that may not be available to an
individual independent agent,” says McLaughlin.
McLaughlin says ARM CT is poised for continued growth,
as well. “We are bringing on younger people to our group
and we have no doubt our group will remain viable for the
next 30 years.”
John McLaughlin, ARM Northeast regional director, says
the group of nine member agencies is a cohesive group
that has made a positive impact for the region. “ARM of
Connecticut has formed partnerships with several regional
insurance companies, and has created profitable group
contracts,” he says.
Anniversary
ARM CT is a member of the ARM Northeast region,
which also includes member agencies from New York,
ARM CT Agency Celebrates 60 Years
Sixty years is a long time for any small business. For the Wilson
Agency of Shelton, CT, it feels like just the beginning.
in the industry,” says Charlie. “The knowledge and expertise
we have available at our fingertips with our other members,
RPS and the Gallagher relationship along with the ARMFiCo
premium finance company relationship is invaluable. Now
that we are three generations, I look forward to our continuing
success with ARM National and ARM of CT.”
Started in 1955 by the late Charles Wilson, Sr., Wilson
Agency has been an integral part of the Shelton area. As an
independent insurance agency and an ARM member, the
Wilson Agency has offered property and casualty insurance
for both personal and commercial customers. Wilson Agency
also offers life and health insurance, including individual and
group life, health, and disability products.
“ARM has truly benefitted our agency. We have gained access
to new markets and specialty products. Also, associating
with other quality agencies on a regular basis enhances
our opportunities with new risks. We truly value our ARM
membership,” says Tom.
Since its inception, the Wilson Agency has been active in
civic and professional organizations. Charlie Wilson, Sr. was a
founding member of The Huntington Business Association,
and also supported numerous local charities. He was named
Volunteer of the Year and Golden Tee recipient by the Cardinal
Sheehan Center. Charlie Sr. passed away December 25, 2011.
Now a third generation of the family has joined the agency.
James Wilson, Charlie Jr.’s son, joined in 2008. James is a
member of The Shelton Exchange Club and is very active in
their functions and many other community events.
Joining the firm in 1979 his son, Charlie Wilson, Jr., has
followed closely in his father’s footsteps. Charlie is active in
the Independent Insurance Agents of America and has served
as Past President of The Connecticut Independent Insurance
Agents and Greater Bridgeport Chapter.
ARM congratulates The Wilson Agency team and the Wilson
family on 60 successful years.
In 1989, another Wilson brother — Tom — joined the agency.
Tom is past Chairman of Independent Insurance Agents of
Connecticut, and past President of the Greater Bridgeport
Chapter.
Both Charlie and Tom see the value in their ARM affiliation.
“Being a smaller, local agency, ARM of CT has given us the
access to many markets we would never have had and has
helped us gain market share with some of the best companies
Charlie Wilson, Jr., James Wilson and Tom Wilson.
5
ARM National Conference — April 29 – May 1, 2014
Extraordinary Partnerships... Extraordinary Future
Breakout Sessions started bright and early Wednesday
morning with the following speakers:
The city of Alexandria, Virginia, has a new campaign
promoting Alexandria as Extraordinary, and from this
the theme of this year’s conference was developed;
Extraordinary Partnerships... Extraordinary Future. What
a great word to define ARM’s efforts to clearly differentiate
ARM from other organizations, engage new partners and
support future growth.
• Justin Gilmore, Assurant Specialty, presented an
overview of the June 2014 program changes to the
National Flood Insurance Program (NFIP)as well as
ongoing changes that are part of H.R. 3370 that will
eventually repeal parts of the Biggert Waters Act.
The conference began with the Board of Directors,
Shareholders, and Executive Directors meetings. ARM
Partners VP Scott Spangler opened the General Session on
Wednesday introducing outgoing ARM Chairman Brenda
Case who announced the new ARM Chairman, Priscilla
Hottle. Priscilla acknowledged and thanked Brenda for
her efforts the past two years. Scott then followed with
his annual ARM Partners State of the Union presentation.
General Session speakers included:
• Julie Paul, The Hartford, described the value and strong
partnership with ARM. Julie’s presentation helped
attendees understand The Hartford’s breadth of product
and services focusing on small business.
• Peter Small, RPS Bollinger Sports & Leisure, a new
division within RPS that is focused on providing
programs for sports-related risks. Programs offered
cover an array of different sporting exposures from Golf
Clubs, Tennis Clubs, Health & Fitness Clubs to amateur
sports teams and leagues.
• Dave McGurn, Corporate Vice President of Arthur
J. Gallagher & Co. and Chairman of Risk Placement
Services, Inc., related his annual State of the Market
giving his thoughts on what’s influencing our industry
as well as market expectations.
• Sarah Wirtz, RPS National Environmental Practice
Leader, defined and informed attendees of the various
aspects of Environmental insurance and why this
coverage is needed and by whom. RPS currently has
access to approximately 36 environmental markets and
are on the radar of emerging markets.
• Kevin Bolger, Senior VP at AFCO Credit Corporation,
who spoke of the relationship with ARMFiCo and shared
profits from premium financing.
• Robert N. Bradshaw, Jr., President & CEO of
Independent Insurance Agents of Virginia (IIAVA), gave
his thoughts on State Legislative Initiatives to Watch, as
well as NARAB II and Biggert Waters.
• Mark Barry and Jerry Colistra, with HCC Specialty
provided an overview of the HCC products and how
they address special and emerging risks and explained
how specialty products can help differentiate your
agency from the rest. The scope of their products range
from Disability to Public Risk.
• Joel Cavaness, President of Risk Placement Services,
Inc.., gave attendees his annual RPS update, success
stories, introductions of RPS attendees, and distribution
of override checks for business placed with ARM, and a
repeat “Poker Chip Special Offer” only for attendees of
the General Session.
• Sheri Zukowski and Jayme Lawrence of American
Modern Insurance Group outlined AMIG’s specialty
product offerings in ARM-represented areas. Their goal
is to complement an insurance agency’s core business
with easy access to insurance solutions for rental,
vacant, seasonal and manufactured properties.
• Charles Symington, luncheon Keynote Speaker, Senior
Vice President of External & Government Affairs of the
Independent Insurance Agents & Brokers of America
(IIABA) who gave a Federal Affairs Update.
• Steve Robinson and Dean Goodwin, RPS Techology
& Cyber provides all lines of coverage for hi-tech
companies and cyber liability for all for-profit and
nonprofit business and entities. Their presentation
provided insight into the latest developments, trends
and marketing ideas to help your agency market and
sell this coverage.
Following the General Session, 3 regional groups held
individual meetings. The day’s events ended with the
Welcome Reception sponsored by AFCO giving attendees
the opportunity to share food, drink and lots of networking
with old and new acquaintances.
• Kevin Doyle, Arthur J. Gallagher & Co./Mergers &
Acquisitions, gave an overview of the current state
of the M&A marketplace and what attributes most
potential buyers — internal or external — are looking for
in an agency.
6
Trade Fair —This year, we held the Trade Fair immediately
following the Keynote Speaker luncheon. The Trade Fair is
an important segment of the conference and provides the
opportunity for attendees to network with all 8 breakout
presenters mentioned above, as well as additional
representation from:
We extend our appreciation to this year’s meeting
sponsors. Sponsorships are a key element of
a successful conference. Please continue to build
business relationships with these companies:
• AFCO Credit Corporation —Kevin Bolger and Mike
Pappas
• ARMIweb.com —Terry Quested and ARM
Communications support
AFCO Insurance Premium Finance
• Agility Recovery —Joe Mechem and Stephanie Collins
Assurant Specialty Property/American Bankers
Ins. Co. of FL
• The Iroquois Group —Lindy Bane and Allen Kramer
• Rockhill Specialty Programs —Rick Weidman
American Modern Insurance Group
• RPS —Tish Fournet/National Client Relations, Georgetta
Corona and Dale Nelson/Healthcare, Steve Robinson
and Dean Goodwin/Technology and Cyber, Joe
Valuntas/Transportation, Christa Nadler/Property, Sarah
Wirtz/Environmental and Casualty, and Peter Small/
Sports and Leisure Programs.
The Hartford
HCC Specialty
Risk Placement Services, Inc.
Once again, a popular session of the conference was
the Networking Group Discussion, where ARM agents
gathered and shared ideas and experiences. The finale was
the Offsite Event, sponsored by Risk Placement Services,
Inc. (RPS) aboard Nina’s Dandy for a dinner cruise on the
Potomac River. After three days of rain, the clouds cleared
and attendees were able to relax and enjoy the weather
on the outdoor deck before and after dinner. A great
conclusion to a wonderful event!
ARM Partners is busy planning next year’s event in Nashville,
Tennessee... be sure to attend!
Priscilla Hottle, Charles Symington and Brenda Case.
7
Did You Get Your Extra 2% Commission?
RPS Poker Chips were again handed out this year at ARM’s
National Conference, each General Session attendee
getting two chips from RPS President Joel Cavaness. Only
those agents who attended the National Conference, and
only those who sat in on the General Session got chips.
Each chip is worth an extra 2% commission on any piece
of new business (excluding work comp) placed with RPS
within certain specified time periods between now and
next year’s national conference.
Joel states “We are always trying to help the ARM Group out
with ideas to increase the attendance at the convention,
and the poker chip success made it worth repeating. In
reality, an ARM Agent can easily pay for attendance costs of
the convention just by using the chip on the right account.
With all of the products that RPS now has and all of the new
products we are rolling out, every agent should be able to
find at least one new account to write, and since we gave
out two, the second one can be for pure profit!”
RPS Poker Chips were first rolled out at last year’s national
meeting, held in Indianapolis, and what a hit it was!
Attendees from that meeting turned in their poker chips on
business written between May 1, 2013 and April 30, 2014
and got back a whopping $106,161 additional commission
dollars.
“The Poker Chips for the extra 2% commission on anything
written with RPS from May 1, 2013 thru April 30, 2014 were
indeed a great hit!” according to Priscilla Hottle, Chairman
of ARM International and owner of Hottle and Associates
located in Warrenton, VA. She continues...“They were fun to
use, and it’s always nice to get a bonus check in the mail for
additional commission, particularly on business where you
needed the RPS talent and expertise and they responded!
Thanks, RPS, for the additional incentive; it was very
generous and much appreciated. Hottle and Associates
personally “won” a couple of checks. It’s also great incentive
to attend the ARM Conference — you never know what
Joel Cavaness might have up his sleeve!”
For details on how to redeem this year’s poker chips,
contact Scott Spangler at ARM Partners:
[email protected] (or) phone 630.285.4324.
8
Flood Insurance Program Changes
Good news for agents whose policyholders are affected by
the Biggert-Waters Act; federal flood insurance coverage
has just become more affordable.
The idea behind Biggert-Waters was a noble one. According
to Ron Abbene, Director of National Flood Accounts with
Assurant Specialty Property, Biggert-Waters was put
into place to do away with the subsidies and changes to
actuarial rates. However, Abbene says the impact was
unexpected. “It was only supposed to affect 20 percent of
policyholders. Those premiums changed from $600–800
in annual premium to $6,000–8,000. Some of the new
premiums we started to see quadrupled in some cases
because of the new rates.”
It’s also become more confusing to agents and policyholders
alike. What is being implemented is now being amended
thanks to passage of the Grimm-Waters Homeowners
Flood Insurance Affordability Act.
In 2012, Congress passed the Biggert-Waters Act. The Act
gives the federal government authority to extend the flood
insurance program, but also to implement changes to rate
structures in hopes of inserting fairness and some commonsense pricing into a financially swamped program. Instead,
the Act created a maelstrom of problems for homeowners
and businesses as once-affordable rates skyrocketed.
Hence the need for the Grimm-Waters Act. Abbene says
Assurant is working with their agents to understand GrimmWaters. Implemented in May 2014, FEMA and the NFIP are
attempting to push through a number of changes in order
to get refunds to policyholders whose rates increased. Also,
Grimm-Waters reverts back to the subsidized pre-FIRM rate
tables.
Why the Change?
Brenda Case, immediate past president of ARM, lives and
works in Slidell, a small Louisiana community that sits in
a flood zone. When Biggert-Waters became law, Slidell
residents and businesses were facing exponential increases
in premiums.
Because many of Slidell’s buildings in the downtown and
surrounding areas were built before the flood insurance
program was in existence, those structures, under the
original flood program, were rated with subsidized
premiums. “Biggert-Waters would have eliminated those
subsidized premiums, meaning that all of our structures
that were in existence prior to the flood program would
now be charged the full applicable premiums,” says Case.
“In many cases the increase would have been phased in
over several years, but in the end the premiums for many
would be unaffordable.”
For residents in flood zones, the changes under BiggertWaters deemed flood insurance just as prohibitive. Case
uses the example of one of her clients, a retired couple,
who pay an annual premium of $1,800. Had BiggertWaters gone into effect without any change, Case says the
couple would have seen premiums leap to $24,000 a year.
Worse, the premiums would have rendered the property
unsellable. “It would have been valueless to sell to someone
else. They couldn’t have gotten a loan because what bank
is going to look at that as good collateral if it couldn’t be
sold?” says Case.
Case says the effect of Biggert-Waters on real estate
sales and development was immediate. “Had it not
been rectified, the end result would likely have led to
foreclosures, plummeting sales and property taxes, and
financial ruin for property owners whose properties would
become valueless and unsellable.”
9
That’s not to say Biggert-Waters won’t be implemented in
some fashion. Here’s what changes under Grimm-Waters:
It hasn’t been easy changing a law as it is being implemented,
says Abbene. “FEMA is trying to turn an elephant around in
a bathtub,” he says.
• The sale of property will no longer serve as a trigger
for higher rates; instead, there will be annual premium
increase caps that will increase rates over time.
Still, Abbene says TPAs and insurers should offer their agents
some assistance. “As a WYO, Assurant is the second largest
write-your-own company in the NFIP. We are waiting for
the FEMA bulletins on what is going to be implemented,
how and when it’s going to be implemented,” he adds.
• FEMA will refund to policyholders who have new
policies after July 6, 2012, for any Biggert-Waters-related
actuarial rates paid.
• Annual premium increases are limited to a minimum 5%
increase and maximum 18% increase; under BiggertWaters, there was no minimum and the maximum was
set at 25%.
What It Means to ARM
A sustainable flood program is important to the taxpayers.
Biggert-Waters was meant to address that issue, but Case
says it fell far short of the goal. “The consequences of
Biggert-Waters were unintended, and that’s evidenced by
the fact that one of the authors, Maxine Waters, was very
active in getting the amendment passed,” says Case.
• There is now a $25 pre-FIRM flood policy surcharge and
a $250 per policy for non-primary and non-residential
policies.
• The Grandfathering rules are reinstated.
Agents need to understand the changes and inform their
clients, says Case. It’s up to agents to be the source of
information for customers. “Clients are not going to take
the time to get to the bottom of all the intricacies,” she says.
• Premium increases of 25% for non-primary, business
properties, and severe repetitive loss properties will be
maintained.
“We have a responsibility to educate our customers,” says
Case.
• The 50% home improvement level threshold for
compliance with flood mitigation building practices is
re-established.
Abbene agrees. Assurant, he says, is implementing FEMA
bulletins into their systems as soon as they are issued. That
means faster refunds and lower rates going forward. “The
average homeowner will still receive annual rate increases,
which they have for many years,” he says. “Instead of those
huge increases, you may get an annual rate increase on
average from 5% to 8%, which has been historically in the
NFIP, and then you’re looking at a $25 surcharge on the
residential side and $250 on the commercial side.”
• Increases the funds available for the Affordability study
to $2.5 million.
• FEMA is required to consult with WYOs during the entire
process of any upcoming changes.
Agents, says Abbene, need to stay on top of these changes.
“Work with your flood providers and stay up to speed on
the education that a lot of the write-your-own companies
do provide to agents. Have clients continue to pay for flood
insurance. Although it’s a hardship in many cases, if those
policies lapse, they could get wiped out because of a flood,”
he adds.
Had it not been rectified, the end result would likely have
led to foreclosures, plummeting sales and property taxes,
and financial ruin for property owners whose properties
would become valueless and unsellable.
— BRENDA CASE
10
Biking for Bob
Since 2010, John Nave has been riding out of habit. Now it’s
to remember a colleague.
So this year, John has put a challenge out to ARM members.
“I am going to do something I have never done before; I’m
asking all of the great people and their agencies at ARM of
Ohio, ARM National and AJG that knew Bob to make a $100
donation in his memory.”
John, senior sales executive for Huntington Insurance,
Columbus, OH takes part in the annual Pelotonia ride, a
grassroots bike ride that raises money for cancer research.
The Pelotonia event is a 100-mile ride that takes place each
August. Riders collect donations in order to participate.
Donations go toward cancer research at The James Cancer
Center at Ohio State.
John says ARM donors will become part of a special group
he calls The BWC-Notes, which stands for “Bob Weaver
C-Notes” in honor of Bob’s annual contribution. John’s
goal is as much money as he can raise. In mid-May, his
contributions topped $1,900. John says 12 of those donors
are ARM agents, and he hopes to increase that number.
Wearing a worn jersey covered with the names of friends
and family who have been touched by cancer, John says
one name in particular has special meaning; that of the
late Bob Weaver, an ARM member who lost his battle with
cancer on October 6, 2012. He was 63. “Bob was always one
of, if not the first, contributors to this 100-mile trip,” says
John. “He was always very quick to make his annual $100
donation and offer encouragement since I am not, have
not, nor ever will be a serious bicyclist.”
He’s also hoping to have a little irreverent fun in memory
of Bob. “Maybe something like throwing a golf ball into
the first creek I pedal across and follow that up with some
inappropriate language directed at the golf ball and/or the
creek. I know Bob would appreciate that,” he says. Ideas and
suggestions are welcomed.
To donate, please visit https://www.mypelotonia.org/,
click on “DONATE,” type “NAVE” in the search box and
follow the instructions. To be included in the Bob Weaver
C-Notes group, type BWC-Note into the “include an email”
field on the donations page. Also, feel free to include the
names of any other loved ones you would like to honor.
John will wear all names on his jersey on ride day.
John says Huntington National Bank, the owner of
Huntington Insurance, became heavily involved in the ride
five years ago when they signed up as one of the few major
corporate sponsors. Since that time, John has become an
annual participant, captain of Team NEBA (Nave’s Excellent
Bike Adventure), and missed just one ride last year due to
his son’s graduation.
All the while, Bob Weaver was donating. John says Bob
would send notes of encouragement to John and would
respond to John’s training updates. Now, John is without
Bob’s donation, and without his colleague’s moral support.
John and
Crew Chief Stacey
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In Memoriam
Fred Squires
Funeral services were held on May 21 for Fred Squires, Jr.,
age 77. A lifelong resident of Wabash, IN, Fred was a director
of ARM of IN more than 10 years and served as president
for two. He was also an ARM International director for 3
years. A partner in the Beauchamp & McSpadden (now
INGUARD) agency for 40 years, he had a strong dedication
to the insurance industry and to the clients he served. With
a bachelor’s degree from Purdue University, Fred was a
big Boilermakers fan, and was a member of Kappa Sigma
and Iron Key. He also received a Master’s degree from Ball
State University and taught history for several years before
coming to the insurance business. Honored as a Sagamore
ARM
of the Wabash and Distinguished Citizen of the Year in
Wabash, Fred worked tirelessly for the community and
served on almost every nonprofit’s board of directors in
the area. He raised many millions of dollars for the Wabash
County YMCA and Wabash Hospital Foundation. Father of
4 and grandfather to 10, Fred doted on his family, but still
found time to officiate high school football and basketball
and to coach girls’ basketball teams for years and to
participate actively with his children and grandchildren in
4-H programs. One of the true gentlemen of the insurance
business, Fred Squires will be missed.
By Larry McSpadden
Associated Risk Managers
Strong as MANY. Powerful as ONE.
Scott Spangler 630.285.4324 | [email protected]
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Rose Marie Rigoni 630.285.4211 | [email protected]
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