the PDF file

Proud History
Bright Future
Volume II (1991-2011)
Published by: Wells Publishing Inc.
© 2012 by the American Association of Managing General Agents. All Rights Reserved.
Printed in the United States of America.
ISBN: Printer will supply
Cataloguing-in-Publication (CIP) data (if needed—this is for Library of Congress cataloging)
A Note from the President
The definition of “sequel” is the continuation of something that was
previously done. When we think of sequel, we usually think of a
movie that was successful and then was followed up years later with
a sequel that, more often than not, isn’t as good as the first movie.
This book is a sequel of our first book “Proud History - Bright
Future,” which told the story of the development of the American
Association of Managing General Agents (AAMGA). The first book
starts in 1926 and ends in 1991, covering the first 65 years of the
Association.
This book covers the next 20 years of successful growth, from 1991
to 2011, bringing us to our 85th anniversary. A lot has changed in
the last 20 years. We continue to tackle the tough areas of Education,
Governmental Affairs, Automation and Membership Benefits.
The Association’s members remain committed to working together
to keep the Association ahead of what seems like weekly issues.
This book contains the input of our dedicated members and the stories they have to tell. It will be educational and fun, and will bring
back many memories. I promise you that this sequel will be just as
good, or better than, the first book. You will have a great time
reading it.
Wayne G. Forest, Sr.
President
Forest Insurance Facilities, Inc.
Wayne G. Forest Sr., President,
Forest Insurance Facilities, Inc., CMGA, Metairie, LA
President, AAMGA
5
Foreword
I have been given the honor of writing a
Foreword for this wonderful collection of
memories over the last 20 years of the American Association of Managing General Agents
(AAMGA). This book serves as a continuation, so to speak, of a book that my father was
very instrumental in helping get published in
1992 of the first 65 years of the AAMGA.
because I still, to this day, keep everything
associated with the AAMGA, from materials
received at the Annual Meeting to any magazine article mentioning the Association, as
well as anything else I can get my hands on.
The Board of Directors of the AAMGA charged
the Operations Committee with getting this
book completed, a task accepted by Chair Gary
Peterson and Board Liaison Gary Peterson and
Matt Letson. The Committee chose the right
person to make sure it
was going to be completed and on time, Tom
Stamm. Tom then contacted some old friends
to help bring it all together. They spent hours
researching and writing
the various chapters. The
book wouldn’t have been
completed without the
efforts of: Peter Barrett,
Chris Behymer, Euclid
Black, Kerry Dillard, Wes
Duesenberg, Jr., Colleen
Earle and Kerry Dillard
Kerry’s wedding 1984
Giles-Harris, Jim Roe and
Tom Rogan.
My father, Earle Dillard, was very involved
in the first book
because he was still a
very active Past President in the AAMGA.
But more importantly,
it was because he was
a “pack rat” who kept
everything concerned
with the Association,
a fact that earned him
the title of Chairman
of the Archives Committee. He kept all his
name badges—what
more needs to be said!
I became his “assistant” when I started
attending the meetings,
charged with remembering to keep a copy of
everything I received at any AAMGA meeting.
I also had the distinction of being the young
buck that would lift the boxes when the
Archive display was sent to the Annual Meeting. What I realized, shortly after his passing
in December 1995, was that he was grooming me to take over the Archives. I realized I
was being taught the passion he had for the
Association and to always cherish the memories of it. It was important that I never let the
hard work of the many people before and
after him be lost. I must have learned well
The gratitude of the “authors,” a term used
very loosely, also goes to Dena Kaplan from
the Insurance Journal who has worked to
keep us on schedule and pointing us in the
right direction on our writings. We also thank
Amy Seals for editing the work of the inexperienced authors. Thanks ladies!!
We hope you enjoy reminiscing about the last
20 years of the AAMGA and that you have
learned how much the Association does for
its membership.
6
AAMGA
ABOUT THE AAMGA
Welcome to the Association of Managing General Agents (AAMGA). The
wholesale insurance community’s international trade association was founded in 1926 on the principles of integrity and professionalism. The AAMGA
today represents over 500 corporate members and is respected as the leader
in and the voice of the wholesale and excess and surplus lines segment of
insurance. Its unique logo reflects the tradition and leadership of managing general agents, insurance companies, business service partners, state
stamping and surplus line offices all working in concert to effect innovative
insurance products and solutions for the marketplace. Membership in the
AAMGA is highly selective and, therefore, its admitted ranks are those who
demonstrate the highest standards of excellence, experience, integrity, and
wholesale insurance company representation.
We invite you to visit our website at www.aamga.org.
7
T able of C ontents
1. Council of Presidents
2. Awards of Distinction
3. AAMGA & Lloyds on London
4. Education
5. Regulation
6. UFO
7. Technology
8. Guide to the AAMGA
9. Committee Structure
9
C hapter
1
“Hail to the Chief”
By Tom Rogan
President
TBR Insurance Consultants Inc.
By Colleen Giles-Harris
Director of Centralized Office Services
Scobie Group
10
AAMGA is unique in that their President is
elected by vote of the active membership
each year. Those candidates for this office
will have served on the AAMGA Board of
Directors after having been elected by their
peers as Regional Directors; then, advancing
to the positions of Eastern and Western Vice
Presidents, and in the third year advancing
to Senior Vice President for their respective
region. The Senior Vice Presidents, then,
stand for election as President Elect, to be
determined by a majority vote of the active
members. The term “stand” as opposed to “run for” is used advisedly by their hard work over
the preceding three years, will
be recognized by the voting
members.
those who were available for interviews. We
have also included brief comments from those
living Presidents who served prior to 1992
and are mentioned in the previous publication.
They are included in the section “Where Are
They Now?”
One important note requires mention: During
the interviews, Council of Presidents members
repeatedly, and without exception, thanked the
people who “made it happen” for them. The
list included their fellow members, colleagues,
and friends, but most importantly, their
spouses. AAMGA salutes these very
special spouses, who were with
“their” President every step of
the way—through the long travel,
endless meetings, and speaking
events­—and were always supportive. This group includes those
spouses who participated in putting this update together, but also
includes all “Co-Presidents” who
ever served. Thank you all.
Although the AAMGA ByLaws limit the President’s
term to one year, it is more
accurate to say that the person
who holds this office is President
for life. As the job of President and Chair of
the AAMGA Board of Directors ends, the lifelong membership in the Council of Presidents
begins. This Council of Presidents, made up
of all past presidents, meets annually and
remains active in Association activities.
The information that follows includes quotes
from videotaped interviews of Past Presidents and
information taken from AAMGA archives. For
further detail on these interviews, please go to the
URL provided at the end of each biography.
“Proud History – Bright Future” was published in 1992. In an effort to catalog events
since this book’s first publication, we attempted to contact all the members of the
Council of Presidents. Catalogued in this
chapter are the thoughts and reflections of
Now, let’s walk through the moments and
memories of the three decades since “Proud
History – Bright Future” was first published.
Along the way, we will learn where our “former” AAMGA Presidents are now and what
they have to tell us.
11
1980s
When people think of the 1980s, images that come to mind might include spandex mini-skirts
and pants, tracksuits, and parachute pants. Side pony tails and big, frizzy hair full of mousse
also come to mind. However, insurance professionals remember one of two events: The Exxon
Valdez or Hurricane Hugo.
Although the Exxon Valdez oil spill and Hurricane Hugo both occurred in 1989, the effect
those two disasters had on the insurance industry, and the world as a whole, helped define the
decade. To this day, the 500,000 barrels of crude oil spilled by the Exxon Valdez is considered
one of the most devastating environmental disasters ever caused by man.
Unfortunately, nature can be even more devastating than man. Hurricane Hugo, a Category 5
storm, hit the United States and caused incredible property damage to the southeastern coastal
area.
The 1980s are often also remembered for man-made and natural disasters beyond the two
mentioned above. These included the eruption of Mount St. Helens, the explosion of the space
shuttle Challenger, and the murder of John Lennon; but the 1980s also introduced the world to
Pac-Man, Nintendo and movies from writer-director John Hughes. The world would be a sad,
sad place without Ferris Bueller and the Brat Pack.
(Contributed by Colleen Giles-Harris, Chair UFO 2010–2011)
The 1980s Presidents:
Where Are They Now?
12
David F. Anderson (Deceased)
AAMGA President
1980–1981
Ray R. Johnston
AAMGA President
1982–1983
Owner/Chairman, Anderson & Murison, Inc.,
Los Angeles, California
Owner and President, the Gulf Agency,
Montgomery, Alabama.
Dave became a California licensed property/
casualty agent in 1950
and a broker in 1953.
He earned his surplus
lines license in 1967. He
is one of only two individuals to serve twice
as the Chairman of the
Surplus Lines Association of California. He served on AAMGA’s
Executive Committee from 1976 to 1982.
Now retired from the
insurance business, Ray
was contacted at his
Alabama home, where
he remains active as a
consultant and in the
family cattle business.
Ray vividly recalls his
election as AAMGA
President in a very close race against other
well-qualified candidates. Being one of the
youngest men elected to this office, Ray
quickly realized the multiple duties of the office. The insurance market was in a very soft
cycle, and with the Association committed to
their annual meeting in Hawaii, “Mr. President” had to employ his sales talents by personally calling AAMGA members to encourage their attendance
“Mr. President”
at the annual convention. The efforts
had to employ his
helped increase atsales talents by
tendance to over 500
people and enabled personally calling
the Association to
AAMGA members
achieve their budget to encourage their
in some difficult
economic times. Ray attendance at
was instrumental in
the annual
establishing financial convention.
audit standards for
the Association.
He continued to serve on the Board of Directors until 2010, when he received the CIWA
Wholesale Industry Award.
“For every major
initiative to promote or defend the
Wholesale Industry
and Surplus Lines
in this part of the
country for the past
30 years, you’ll find
Dave Anderson,”
said Jerry Sullivan,
Chairman of Gerald
J. Sullivan &
Associates.
Dave also played
a major role in the
founding of the
California
Insurance
Wholesalers
Association and
was its first
President from
1991 to 1993.
During the period
of his executive
service to the AAMGA, the Association and
its members could certainly say the same of
Dave.
Ray’s outdoor interests in hunting and fishing
continue. He is enjoying retirement with his
wife Helen and their family.
Unfortunately, Dave Anderson passed away in
February 2012.
13
Louis T. Mastos
AAMGA President
1984–1985
Avrohm I. Wisenberg (Deceased)
AAMGA President
1985–1986
President, Louis T. Mastos & Associates,
Reno, Nevada
Founder, Chairman and CEO, Delta General
Agency Corporation, Houston, Texas
As AAMGA President,
Lou felt that the rapidly
growing Association
needed more structured
financial control. He
secured board approval
to create the office of
Secretary-Treasurer. Lou
appointed Joel P. Ory
as the first to hold this
position. (Mr. Ory served the Association in
a highly efficient manner from 1985 until his
retirement in 1997.) Lou was also a strong
advocate of encouraging younger Association
members to get involved in AAMGA activities.
August 1991.
Avrohm Wisenberg
formed Delta General
Agency Corporation
in 1959 as a means of
providing Texas retail
agents access to certain
specialized facilities.
Avrohm led Delta General as its chairman and
CEO until his death in
As President of the AAMGA, Avrohm led the
Association effort to attract international and
domestic insurance carriers to the AAMGA Annual Convention to build and support surplus
lines capacity during the rapid hardening in
the marketplace. At that time, general agents’
E&O insurance availability was seriously lacking and without, could force general agents
out of business. Avrohm may be best remembered for his gift at public speaking, teaching
insurance through numerous organizations,
and his extraordinary sense of humor.
He secured board
Lou sold his business several years
approval to create
ago, but remains ac- the office of
tive, going into the
Secretaryoffice a few hours
most days. He also
Treasurer.
continues to make
agency calls and attend industry meetings.
Tom Rogan offered this memory of Avrohm.
“When I completed my Presidential acceptance
speech to the AAMGA annual convention,
Avrohm approached the podium. Avrohm offered his compliments on my presentation. He
said “I was impressed with your comments,
but you should be pleased to know that my
wife Evelyn, who is here with me tonight, said
to me ‘he is going to make a good AAMGA
President.’” This was high praise indeed from
not only a man that I held in high regard as
a Past President, but also from his charming
first lady. I tried very hard to meet those lofty
expectations during my time in office and will
be forever grateful for their confidence.”
Delta continues its family ownership under
the leadership and guidance of Avrohm’s
son-in-law, Bill Fink, President and CEO. Bill
has also proudly served as an officer on the
AAMGA board.
14
Wes Duesenberg, Jr.
CIW—AAMGA President
1987–1988
Peter Scobie
CIW—AAMGA President
1988–1989
President, Southern Insurance Underwriters,
CMGA, Alpharetta, Georgia
Chairman and CEO, Scobie Group, CMGA,
Eau Claire, Wisconsin
Peter’s grandfather
(R W Scobie) established the General
Agency in 1932. Peter’s
father Bob, joined the
Agency in 1937, and
was active in the business for 67 years until
his death in 2004.
As President of
Southern Insurance
Underwriters, Wes
saw the MGA world
morph from one with
mostly local competition, to one with more
regional and national
competitors. This
first-hand view came
from his father, Wes Sr., who established the
business in 1964. Wes Jr. was the second
member of the Duesenberg family to serve
as AAMGA President. The late, Wesley
C. Duesenberg, Sr., was President from
1979–1980. The family legacy continues as
Wes Jr.’s son, W.C. “Tripp” Duesenberg III,
recently completed his term as Chairman of
the UFO.
Peter attended his first AAMGA meeting
in 1971, where he made a presentation on
microfilming. AAMGA President Marie Welch
asked Peter and Randi to chair the AAMGA
Annual meeting in 1973, and this began
an active career in many
AAMGA committees over
Peter and
the years. Peter worked
President-Elect
closely with Wes Duesenberg, Jr. in establishing the Louis Williams
AAMGA University and, was were called upon
active as Chancellor and
fundraising for the AAMGA to testify before
Congressional
University Foundation for
many years.
committees
As AAMGA President, Wes Jr. served as a
key figure in establishing the highly successful AAMGA University and led the fundraising efforts for the Foundation. He served as
Chancellor through the University’s formative years. Wes also served the Association
for 10 years as Secretary/Treasurer with
distinction and maintained the financial
integrity of the association many years after
his term as President ended.
investigating
As President, Peter made
MGAs.
education and the promotion of the AAMGA University one of his primary
goals. During his Presidency, Peter and President-Elect Louis Williams
were called upon to testify before Congressional committees investigating MGAs (none of
which were AAMGA Members) and worked
closely with the Dingle Committee in the
Senate on these issues.
In 2008, the AAMGA presented Wes with
the Donahue Lifetime Achievement Award.
The presentation was made by thenpresident Tom Albrecht. Along with Chuck
Deering and Tom Stamm, Wes was also a
recipient of the AAMGA 75th Diamond Anniversary Award.
In 1997, the AAMGA presented Peter with
the Earl S. Dillard Award for Distinguished
Committee Service. Peter remains active in
AAMGA with the Past Presidents Committee
and the University Foundation.
Wes remains an active part of the University’s Foundation and was recently re-elected
as Vice-Chancellor. He established a Chair
in his father’s name at Georgia State University and worked with others to establish the
AAMGA Distinguished Chair of Risk and
Insurance at Georgia State.
15
1990s
The 1990s started off with a bang, literally, as the United States launched Operation Desert
Storm. Unfortunately, things did not improve too quickly. Many insurance professionals view the
1990s as one of the longest and most difficult soft markets in insurance industry history. Insurance carriers seemed to merge or be acquired weekly. The decade was stained by hurricanes
(remember 1992’s Hurricane Andrew), earthquakes (including the Northridge Earthquake in
1994), and the crazy OJ Simpson trial (enough said).
Luckily, things in the 1990s weren’t all bad. This was an incredibly revolutionary decade for
digital technology. Cell phones were introduced, and the Internet began its rise. Cell phones of
the early 1990s were quite large and didn’t have many, if any, fancy features. And only a small
percentage of the population, in even the wealthiest nations, actually had one. The Internet only
served a few million people in 1990, but by 2001, more than 50 percent of some Western countries had Internet access.
At the AAMGA, 1991 saw the creation of the Under Forty Organization (UFO). The UFO was
created to give young insurance professionals an opportunity to learn and grow together while
networking and exchanging ideas. Since its creation, the UFO has evolved a great deal, but every year the organization works towards its founding goal and focus: Keeping leadership, education, and communication as key components for the growth of the industry’s next generation.
(Contributed by Colleen Giles-Harris, President UFO 2010–2011)
The 1990s Presidents:
Where Are They Now?
16
Gregory A. Allgeier
President—AAMGA President
1990–1991
Thomas B. Rogan
CIW—AAMGA President
1991–1992
President, Bolton & Company,
Louisville, Kentucky
President, MacNeill Group,
Fort Lauderdale, Florida; retired in 2001
Greg Allgeier remains
active as President of
Bolton & Co, a firm
established in 1965
that continues as a family-owned independent
wholesaler. Greg’s hard
working habits have
obviously not changed
as he was reached at his
desk at 7:45 a.m. for his interview. Bolton &
Co. serves the retail agents in its home state,
as well as in several adjoining states. It also
has Program business clients that are national
in scope. Other
principal officers of When he was Bolton & Co. are
outgoing President,
Sharon Allgeier,
he convinced the
and recently appointed Vice Presi- then Governor of
dents, Christopher Kentucky to Allgeier and Jeremy Allgeier, both honor the Board
of whom attended members with the
the AAMGA’s
title of “Kentucky
UFO 2011 meetColonel.”
ing in Nashville.
Tom’s term as President was exceptionally
eventful. He presided
over the first AAMGA
visit to Hong Kong,
Bangkok, and Chaing
Mai in 1991 as part
of its International
Seminar led by Seminar
Chairman, Bob Katz.
Although he has been in the insurance business since the 1960s, Tom remembers 1992
as the most memorable. That year, the worst
hurricane in U.S. history—Category 5 Hurricane Andrew—struck his home and office
areas in South Florida, causing $25 billion in
statewide damages. Fellow AAMGA members
from around the country were quick to offer
assistance. It was a life-altering experience
working to balance the disaster and his duties
to AAMGA as its Past President.
Tom is very proud of authorizing the Under
Forty Organization (UFO) during his term in
office. Now, in its twentieth year, the UFO is a
vital part of the AAMGA, providing a conduit
for the young leaders of the wholesale insurance world to interact with each other as they
become industry principles.
Greg is warmly remembered by his former
AAMGA Board members. When he was outgoing President, he convinced the then
Governor of Kentucky to honor the Board
members with the title of “Kentucky Colonel.”
Framed certificates were given to each.
Tom sold his interest in the MacNeill Group,
Inc., and now serves the insurance industry as
consultant. He has worked with the AAMGA
on transitioning association management
companies and organizing RFPs on two occasions. Since 2005, he has been the Permanent
Secretary of the Scottsdale Agents’ Advisory
Board and in 2011 was appointed Permanent
Secretary of the newly formed Brokers Advisory Board.
In 2001, President Len LoVullo, on behalf of
the AAMGA, presented Tom Rogan with the
Donahue Lifetime Achievement Award.
17
Fred Steves
CIW—AAMGA President
1992–1993
Ed Calabrese
AAMGA President
1993–1994
President, Myron F. Steves & Company,
CMGA, Houston, Texas
President, Hull & Company, Inc.,
Ft. Lauderdale, Florida
Myron F. Steves &
Company was formed
by Fred’s father in
1955. Fred succeeded
his Dad as President of
the firm in 1996, when,
he jokes, he also became the “Chief Complaint Coordinator.”
Ed is now retired. The
following was taken
from an interview with
Ed in 2002:
“Ever since I’ve been
in this business, people
have been burying the
agent and the MGA/
wholesaler and all the
folks that make up that delivery system, but
it hasn’t happened. In fact, I think we are getting a second wind. We are getting better at
it. We’re getting more involved in the market
place; we have developed a reputation and
credibility that
Ever since I’ve
we work hard to
achieve. It took a been in this busilong time, but I
ness, people have
don’t think there
been burying the
is an end to this.
agent and the
The AAMGA
put out a book
MGA/wholesaler
a while back
and all the folks
“Proud Historythat make up that
Bright Future,”
and I think that is delivery system,
a true description
but it hasn’t
of the Association.
I don’t know who happened.
thought it up,
but it was a great
idea, great model, and it works.”
Fred’s term as AAMGA President saw an
increase in U.S. Congressional interest in the
wholesale insurance business. He received
Board approval to retain a national law firm
for the purposes of clarifying that AAMGA
and its members were not the problem and
identifying those who were responsible for
the “failed promises” in the insurance business during that period. The Congressional
investigation, led by Representative John
Dingell (D–Michigan), examinted many parts
of the insurance business, including insurance company insolvencies. The committee
authorized a paper titled “Failed Promises,”
which attributed three company insolvencies
to their managing agents. The Committee’s
broad brush reference to “MGAs” or insurance managers prompted AAMGA leadership
to voluntarily appear before this Committee
and explain the difference between these
unlicensed operatives and the many reputable
managing general agents and brokers throughout the United States.
Fred greatly improved the communication
channels within AAMGA while informing the
insurance world of the effective influence of
the Association. He served a 3-year term as
University Chancellor and is presently on the
University Foundation Board. His legal advice
has been invaluable to the University and
AAMGA as a whole.
At the conclusion of Fred’s term as President,
he began the practice of awarding the immediate Past President with a dark green blazer,
as a symbol of excellence to be worn at future
AAMGA events.
Ed shares time with friends & family in
Florida and New York.
18
Victor D. Giordano
CIW—AAMGA President
1994–1995
Preston Gough
CIW—AAMGA President
1995–1996
President, Pennock Insurance Inc.,
Wayne, Pennsylvania
President, Southern Cross Underwriters,
CMGA, Jackson, Mississippi
Vic joined the AAMGA
in 1970 and attended
his first meeting in the
Bahamas. Vic was very
successful in achieving his AAMGA goal of
raising the visibility of
the Association both in
the United States and
abroad. As President,
he and his wife, Isabel, traveled tirelessly
on behalf of the Association. Respected by
domestic as well
as international
Vic was able to
insurance markets,
further enhance
Vic was able to
further enhance
the creditability of
the credibility of
the AAMGA
the AAMGA durduring his
ing his Administration.
Administration.
Preston has fond
memories of receiving
supportive mentoring
from several AAMGA
members and Past Presidents. While President
of AAMGA, Preston
had to balance AAMGA
business travel and his
young family. Multitasking is a definite part of Preston’s DNA.
A board member
since 1991, he has
found great value
in the relationships formed
throughout the
AAMGA membership. He strongly
supports the UFO
and their wealth
of enthusiasm
as they grow to
become future
leaders.
Vic now lives in
Philadelphia. He is
now retired.
He strongly
supports the UFO
and their wealth of
enthusiasm as they
grow to become
future leaders.
Preston also served as Chancellor of the
University. Preston felt honored to present
the Donahue Lifetime Achievement Award
posthumously to the family of Past President
Earle S. Dillard in 1996.
19
Charles Deering
CIW—AAMGA President
1996–1997
James Ryan
AAMGA President
1997–1998
Owner, Deering & Associates,
Durham, North Carolina
President & CEO, Market Finders Insurance
Corporation, CMGA, Louisville, Kentucky
The following was taken
from a 2002 Interview:
Jim Ryan established
Market Finders in 1972
and grew it from a
small state brokerage
agency into a nationally recognized and
respected surplus lines
wholesaler. Still headquartered in Louisville,
it has three underwriting branches, serving agents in seven states
throughout the Midwest.
“The relationship
between the MGA and
the company is a very
personal one. Although
we have a contract
and a territory, it’s the
comfort level that we
develop with company officials, their underwriting staff, and claims personnel that will
really be the key ingredients to success in this
relationship. We are an Association (AAMGA)
of entrepreneurs and even adversity will
breed opportunity. We should be The relationship
skilled enough to
recognize the op- between the MGA
portunity and do
and the company
something about
is a very personal
it.”
In addition to having served as AAMGA
President, Jim has been very active in other
wholesale and retail associations,nationally
as well as on a state level. Jim recalls one of
the highlights as AAMGA President was the
opportunity to present the Vincent Donahue Lifetime Achievement Award to Derek
Hughes, former President of the Western
World Insurance Group.
one.
Along with Wes
Dusenberg and Tom Stamm, Chuck was a
recipient of the AAMGA 75th Diamond
Anniversary Award. Chuck is now retired
and resides in North Carolina with his wife,
Eleanor.
Still very active in the wholesale insurance
world, Jim was contacted recently at his
Louisville office. He said; “As we prepare to
begin our 41st year in business, I am beginning to scale back my day-to-day involvement in the corporation. I am in the process
of making arrangements to sell the stock of
the corporation to the employees through an
ESOP and the majority shares to two of our
long-term executives (one has been with us
for 33 years and the other for 20 years). This
will take place shortly after the 2012 AAMGA
Convention in San Antonio. I will continue
as Chairman of the Board. This should give
Marlene and I more time to spend at our
home in Cape Cod and for me to enjoy my
horses and golf.”
20
Paul Davis
AAMGA President
1998–1999
Jim Roe
AAMGA President
1999–2000
President, Texas Specialty Underwriters,
Rockwall, Texas
Owner and President, Arlington Roe and Co.,
Indianapolis, Indiana
Paul is a risk taker in
business, and when he
was selected as AAMGA
President, he knew he
had to increase the
“bench strength” at his
company as he would
frequently be traveling
on AAMGA business.
His son, Brent, and
others in the organization stepped up and
provided Paul and Texas Specialty Underwriters with the hard work that allowed Paul to
preside with distinction as AAMGA President.
As a teenager, Jim
worked part-time in
the insurance firm his
father established in
1964; he joined the
firm full-time in 1980.
He was attracted to
AAMGA because it was,
and is recognized as
a quality professional
insurance association. So he wanted to be a
part of it.
Before his election as President in 1999, and
after his term, Jim
worked on several
While in office,
committees, includhe saw the
ing many years on
tremendous
the Government
Affairs Committee.
interest at the turn
While in office, he
of the century
saw the tremendous
about the issues
interest at the turn
of the century about surrounding
the issues surround“Y2K.”
ing “Y2K.” Would
all computers shut
down due to the
date change? Although it turned out to be a
“non-event,” AAMGA was prepared.
Paul is a strong
Paul is a strong
advocate of the
advocate of the
committee dynamic of AAMGA committee dynamand was instruic of AAMGA and
mental in naming
was instrumental
new members to
many committees in naming new
and getting more members to many
active involvement
committees and
from the memgetting more active
bership. Paul’s
articles about
involvement from
the value of the
wholesale distribu- the membership.
tion system were
frequently published in insurance periodicals.
Jim proved to be another example of officers
of AAMGA who stay active after their terms.
Jim has served on committees and has stayed
current on the insurance business through
participation in the education programs offered by the AAMGA University.
21
2000s
Not only was January 1, 2000, the first day of a new decade, but it was also the first day of the
21st century and the first day of the Third Millennium. The 2000s, known to us as the “aughts”
or to the British as the “noughties,” were exciting and challenging, but at the same time frightening. Everyone was asking, “Who Let the Dogs Out?”
Many argue, with good reason, that the tragedy of the terrorist attacks on September 11, 2001,
was the most significant event of the 2000s. But the decade also brought several devastating
natural disasters.
“Hurricane” was the word in 2005. This was undoubtedly one of, if not the worst, years for
hurricane damage. Hurricanes Katrina, Rita, and Wilma all hit during 2005. Unfortunately, the
following year wasn’t much better in regard to natural disasters. The Indian Ocean earthquake
and tsunamis killed over 300,000.
The 2000s also saw some major historical events: Saddam Hussein was tried and executed in
2006. The first African-American President of the United States, Barack Obama, was elected in
2008. US swimmer Michael Phelps won a record eight gold medals at the Olympics; and Tiger
Woods broke a record in his sport by being the first golfer to hold all four major championships.
The property destruction resulting from the 9/11 attacks, along with the hurricanes and tsunamis that pounded coastal areas world-wide, shifted the insurance industry into a very hard market in the early 2000s. Sadly, things did take a turn for the worse in the insurance industry, and
the world economy, as the decade came to a close. In 2008, President George W. Bush found it
necessary to authorize $700 billion in funds to prevent the collapse of Wall Street, and in 2009,
unemployment exceeded double digits.
There may have been many melancholy moments during the 2000s, but that decade also
brought American Idol’s William Hung into our living rooms and introduced us all to the term
“wardrobe malfunction.” Good times!
(Contributed by Colleen Giles-Harris, President, UFO 2010–2011)
The 2000s Presidents:
Where Are They Now?
22
Leonard T. LoVullo, CIW
AAMGA President
2000–2001
Baron D. Garcia (Deceased)
AAMGA President
2001–2002
President & CEO, LoVullo & Associates,
CMGA, Buffalo, New York
President, Oklahoma General Agency,
Oklahoma City, Oklahoma.
LoVullo & Associates
was started by Len’s father in 1949. Attending
AAMGA meetings as a
family continues to be
a LoVullo legacy. Len’s
children have attended
annual meetings since
they were babies and
now as young adults,
have created their own circle of friends within
the Association.
The following was taken
from an interview taped
in 2002:
“Some of the prognosticators say that
‘e-commerce’ is going
to do away with our
distribution system. I
do not personally feel
like this is a threat. I think it is a complement
to what we do and the way we service our
customers and work with our companies. The
market is tending to change currently in our
area, and I know that
in other states there
Some of the progare changes going on
in pricing and product nosticators say that
availability. By us stay- ‘e-commerce’ is
ing current, we will
going to do away
continue to prosper as
a major trade associa- with our distribution system.
tion for our distribution system. We need
to continue to know
how to better organize
our operations and grow our relationships
with our companies and customers.”
Len’s AAMGA Presidency saw a “perfect
storm” that required his skills as a leader.
AAMGA’s incumbent management firm of 15
years abruptly went out of business. Faced
with continuing the business of the Association, Len and his Board approved the interim
appointment of an active educator, lawyer,
and long-time AAMGA participant, Bernie
Heinze, as Executive Director. At the same
time, an extensive request for proposal (RFP)
process was being conducted to find a new
management firm. From the more than 20
firms submitting proposals, Accolade Management Inc. was selected. The possibility that
Association activities would be disrupted during this time was not an option and averted
by Len’s decisive action. Mr. Heinze and
Accolade are now entering their 11th year as
AAMGA’s managers.
Baron was an energetic leader of AAMGA
who also worked tirelessly on the transition
of the Association in management companies
and all other activities during his Administration. Unfortunately, Baron passed away at an
early age in 2006.
Len is optimistic about the leadership coming
out of the UFO and has himself appointed
many UFO members to his committees. He
feels the future depends on the forward
thinking of AAMGA members who are budgeting purposely to advance the technology
capabilities in their offices.
23
Robert S. (Rob) Giles, CIW
AAMGA President
2002–2003
Ronnie C. Moore, CIW
AAMGA President
2003–2004
President & COO, Midwest General Agency,
CMGA, Eau Claire, Wisconsin
Owner & President, Southern General
Agency, Inc., Bowling Green, Kentucky
Midwest General
Agency was established in 1932 by
Rob’s family members
and now has several
offices throughout the
upper Midwest.
During his Presidency,
Ronnie led the restructuring of the management contract with
Accolade Management
Company, as he felt
their high performance
level warranted this
positive action. He
supported efforts to
co-host many educational programs with the
National Association of Professional Surplus
Lines Offices (NAPSLO), with the first of
these occurring in 2003.
Not a “gambler” by
nature, Rob took a
risk when setting up programs for the 2002
Annual Convention. Our country was still
in shock from the terrorist attacks on the
World Trade Center and Pentagon, and the
related crash of
Our country was
United Flight 93,
on September 11,
still in shock from
2001. To counter
the terrorist attacks
the somber mood,
on the World Trade
Rob brought in a
well-known author Center and Pentaand humorist, Dave
gon, and the related
Barry, as the opening speaker. His hi- crash of United
larious talk gave the Flight 93, on Sepentire audience a
tember 11, 2001.
chance to laugh for,
possibly, the first
time since 9/11. All
in attendance agreed that light-hearted start
to the meeting was needed.
His continued interest in the Governmental
Affairs Committee
was also imporAnd he is proud
tant as there was a
of the fact that two
concentrated effort
members of his
to gain uniformity
in the Stamping Of- board who had
fices throughout the
come out of the
country. He extended the International UFO were both
Executive Commit- later elected as
tee meetings to inPresidents of the
clude member firms
in Bermuda. And he AAMGA.
is proud of the fact
that two members
of his Board who
had come out of the UFO were both later
elected as Presidents of the AAMGA.
Rob focused his Presidency on just a few
areas. One was holding AAMGA Executive
Committee meetings in the home offices of
Associate members throughout the United
States and Great Britain. A strong supporter
of the UFO, he committed to enhancing its
growth. On completion of his term as President, he assumed the roles of Vice Chancellor and then completed a 3-year term as
Chancellor of the AAMGA University. Rob
led a successful international Seminar to
Europe, including an emotional journey to
the shores of Normandy Beach.
An additional highlight was the opportunity
to present the Donahue Lifetime Achievement Award to R. Max Williamson, former
President of Scottsdale Insurance Company.
Ronnie cited Mr. Williamson’s strong impact
on the E&S business, his personal work ethic,
and rock-solid integrity, among the many reasons he deserved this special recognition.
24
Joseph P. Hutelmyer, CIW
AAMGA President
2004–2005
Francis Johnson
AAMGA President
2005–2006
President & COO, Am Wins Transportation
Underwriters, Inc., CMGA, Burlington, North
Carolina
President, Johnson & Johnson, CMGA,
Charleston, South Carolina
Fran grew up in the
insurance business under the mentorship of
highly respected family
members. He was also a
“child” of the AAMGA,
attending his first Annual Meeting as a teenager. After college, he
returned to the family
business. Years later, following the retirement
of their father, Robert, he and his brothers assumed ownership and continue to grow their
company. Fran was an important part of the
growth of the UFO and served as Chair. After
several active years on AAMGA Committees,
Fran was elected to the Board and in 2005
became the first former UFO Chair to be
elected AAMGA
He was also a
President.
A member since 1981,
Joe joined AAMGA
because he was very impressed with the Association, its outstanding
professionalism, and its
emphasis on enhancing
business and personal
relationships. He made
these his focal points of his presidency after
his election in 2004.
Joe may be the only AAMGA President to be
married while attending an Annual Convention.
Joe may be the
His administration
only AAMGA
encountered the
President to be
investigation being
carried out by New married while
York Attorney Genattending an Aneral Elliott Spitzer
into the proprietary nual Convention.
of “contingent”
commissions being
paid to producers. Joe, with the assistance of
the Board and Association headquarters, was
helpful in keeping the membership informed
on these investigations, as well as responding
to their concerns.
“child” of the
Fran had other
AAMGA,
“firsts” that he
happily reveals. At attending his first
a UFO meeting
Annual Meeting
in Jackson Hole,
as a teenager.
Wyoming, Stetson
Cowboy hats were
presented to all attendees. Fran commemorated that event by adding his cowboy hat to
his business attire for his Opening Address
as the first UFO Chairman to be elected
AAMGA President in 2005. Until Fran was in
office, the sitting President would introduce
all Past Presidents at the Opening Breakfast.
Fran claims that because he “muffed” a few of
the names when it was his turn to make the
introductions, this practice was replaced by
a video with the names and pictures of each
Past President. Many attendees considered
this a very positive change to a ritual that
needed improvement, and Fran was able to
accomplish it.
In 2005, Joe was privileged to present the
Donahue Lifetime Achievement Award to
John Clements of Bell & Clements, London,
England.
Joe is another Past President who continues
to give back to the Association after his term
of office. Joe is now entering his third year as
Chancellor of the AAMGA University.
25
Scott Anderson, CIW
AAMGA President
2006–2007
Tom Albrecht
AAMGA President
2007–2008
Executive Vice President, Concorde General
Agency, Inc., Fargo, North Dakota
Partner, Associated Insurance Administrators
and TAG Underwriters, Montgomery, Alabama
Concorde General
Agency was established
in 1981 by Scott’s father-in-law. Scott joined
the agency in 1985.
Tom is the former owner
of Barclay Agency, LLC.
Like most Presidents,
Tom was concerned with
keeping AAMGA traditions alive. He worked
closely with the committees because he feels
that’s where “the rubber
meets the road in our Association.” He made
positive changes in the Executive Committee
by including the President Elect in key decisions and more specifically defining the duties
of that office. The
He made positive
executive committee worked closely
changes in the Exwith the Executive
ecutive Committee
Director and Acby including the
colade Management
to further outline
President Elect in
Accolade’s duties and key decisions and
responsibilities and
amend their contract, more specifically
accordingly.
defining the duties
Scott is another of the
AAMGA Presidents
who worked his way
through various committees, ultimately being elected Chair of the
Under Forty Organization in 1996. After serving on the Board of Directors, he was elected
as AAMGA President in 2006. He credits his
UFO experience as key in giving him the
confidence to pursue other offices within the
Association.
As President, he undertook the Vision 2017
Project. It was a bit of gamble, but this
project forced the Association to attempt to
create a 10-year vision and to also aid members in charting their future success. This
Project was designed to be refined annually.
Scott believes, as he did when he was President, that the Association remains a place for
exchanging ideas, building relationships, and
increasing the professionalism of all members
through the AAMGA University. He takes
pride in the fact that his Executive Committee traveled to many insurance company
home offices and met with their management
to report on AAMGA activities and to seek
their suggestions on what else the Association
could do for them.
of that office.
Tom also worked
closely with the
Independent Insurance Agents and Brokers of
American (the Big “I”) to gain the retail agents’
perspective into the AAMGA Vision 2017 Project. Tom feels the AAMGA is strong and has
been able to weather the insurance cycles, as
well as economic changes, by having a strong
Board of Directors supported by an efficient
professional association management company.
On a personal note, Scott and his wife, Mamie, were deeply touched by the compassion
and empathy of their AAMGA friends and
family when they lost their son in a tragic
accident in 1996. Scott said, “We have tried to
give our efforts back to the AAMGA to thank
everyone for their kindness.”
26
Euclid Black
AAMGA President
2008–2009
Curtis Anderson
AAMGA President
2009–2010
CEO, Black/White Associates, Louisville,
Kentucky
President, National Binding Programs, RPS,
Scottsdale, Arizona
Euclid recognized the
value of AAMGA membership over 30 years
ago. He was impressed
by the knowledge and
caliber of members
he met along, as well
as their interest in
the wholesale business. Each member’s
willingness to help one another convinced
him to be a part of this Association. He feels
the business has become dramatically more
complex and has extended across state lines.
He has seen the wholesale business make
investments in
and use of exten- As President, he
sive technology
witnessed the
enhancements
from accounting
dramatic global
through processfinancial melting.
The former owner of
Skanco International,
Curtis has been in the
wholesale insurance
business since 1977.
Curtis carried his personal work ethic into all
his activities as a Board
member and especially
when elected by the membership to serve as
their President. Some of the projects undertaken by Curtis while in office included updating the Association By-Laws and revising
the membership requirements. He and the
Board added the immediate Past UFO Chair
to a seat on the Board, as well as a second
Associate Member, including voting rights
for each. This has been a positive in gaining
insights from other parts of the membership.
He also led a thorough RFP process that
brought in multiple prospective association
management firms. Those submitting proposals included the incumbent Accolade Management. The diligent review of the proposals by
Curtis and the Board, including interviewing
the finalists, led them to reappoint Executive
Director Bernie Heinze and Accolade Management.
down of 2008
and 2009.
As President, he
witnessed the
dramatic global financial melt-down of 2008 and 2009. The Association, like most businesses, had to adjust
to threats of lower meeting attendance and
possible loss of members. The Board banded
together to make the needed adjustments and
managed through these difficult times.
Curtis’ serious business-like attitude was delightfully tested during the 2010 closing gala.
When his family was being introduced on
stage, his youngest grandson decided he liked
the guitar left on stage by the band scheduled
to play later. So he took it. Curtis interrupted
his introductions and returned the guitar and
his grandson to a safe harbor, much to the
amusement of the audience and the gratitude
of the guitarist.
A strong advocate of AAMGA’s committee
structure, Euclid is encouraged by the leadership qualities coming out of the UFO. He
feels it provides a perpetuation to and growing strength of the Association.
He looks upon his fellow members as true
friends who share a passion for the wholesale
insurance business they are in.
27
Mark Rothert, CIW
AAMGA President
2010–2011
Wayne Forest
AAMGA President
2011–2012
President, Ron Rothert Insurance Services,
Inc., CMGA, Portland, Oregon
President, Forest Insurance Facilities, Inc.,
Metairie, Louisiana
At the time of this
writing, Mark had just
completed his term as
President and is the
Immediate Past President. He will serve on
the Board through
May 2012. In reflecting
upon his year in office,
Mark felt that one of
the risks in assuming the presidency is to be
certain your own business is well cared for
during the time required to attend to Association business. Planning and organization is
needed.
Wayne is the current
President of AAMGA
and will join the distinguished list of Past
Presidents in May 2012.
Like most of us who
never wanted a career
in insurance, he accepted his first job out
of college with Fireman’s Fund Insurance
Company in New Orleans. He figured that
this would be a temporary job until he found
the “real” career that he wanted. Here we are
40 years later and
He figured that
you can guess in
what career Wayne
this would be a
ended up.
temporary job
While President, Mark was very proud that
after many years of planning and fundraising,
the AAMGA Distinguished Chair of Risk and
Insurance at Georgia State University was
realized. He was pleased to award certificates
to the first graduating class of UFO members
from the Georgia State University Leadership
track. He worked actively with the Governmental Affairs Committee in monitoring the
NRRA legislation.
until he found the
During his acceptance speech as the
“real” career that
incoming President
he wanted.
of AAMGA, Wayne
mentioned several
goals that he wanted AAMGA to accomplish.
His main goals were (1) to get this second
AAMGA history book published; (2) to add
20 new members; (3) to create and foster the
continuation of an AAMGA Strategic and Tactical committee; and (4) to work more closely
with all of the other insurance industry associations. Through the hard work of the Board
of Directors and all of the very active committees, these goals were accomplished.
Mark presented the Donahue Lifetime
Achievement Award to Anthony “Tony”
Markel, Vice Chairman of the Markel Group,
at the Annual Meeting in Orlando, Florida, in
2011.
As a President completes his term in office, he receives a green blazer symbolizing
excellence that he will proudly wear at future
AAMGA functions. Mark Rothert received
his and became the newest member of the
Council of Presidents.
Wayne’s greatest love and strength comes
from his wife, two sons (both of whom have
worked for the company for over 15 years),
two daughters-in-law and five grandchildren.
Wayne says that his family “is [his] purpose
for everything he does.”
28
2011 Council of Presidents
“Green Jackets”
Orlando, Florida
Wes Duesenberg, Fred Steves, Peter Scobie, Preston Gough, Rob Giles, Tom Rogan, Joe Hutelmyer,
Paul Davies, Len LoVullo, Lou Mastos, Scott Anderson, Francis Johnson, Tom Albrecht
29
Doug Bauckham, Gary Batten
Corrie Bauckham
Keith Harris, Bob Quirk, Jill Harris, Roland Miller
Randy Dyer, Debbie Horgan, Violet Evans
Bill Davis, Terry Steves
Rollie Wiegers, Joel Ory, Carlo Frua
John Griffen, Tom Rohs, John Owens,
Wes Dusenberg, Sr.
Marie Welch passes President’s gavel to Lou Mastos
Anne, Robert Jr., Fannie Mae, Robert Sr.,
Lucy and Thomas Wright
Sally Snow, Charles McDearmon
Yvonne and Art Triemer
30
Bob Libby, Mike Adams, Ruby Libby, Patty Adams
Peter Scobie, Joel Ory, Louis Williams, Wes Duesenberg, Randy Dyer, President Bob Welch, Ed Knish, Avrohm Wisenberg, Fred Bjornson, Bob Quirk
A.P. Cunningham, Dana and Martha Roehrig, Mary
Cunningham
Clay Calhoun, Connie and Lawrence Calhoun
Bauckham family, Kezia, Doug, Luke and Marilyn
Haynes Brinkly, Mitch Gwinn, Jim Bradly
Jeanne and Fred Bjornson
Phillip Oxford, Caroll and Lew Corson
John and Betty Curry, Carolyn and Lawrence Pratt
Jan and Jim Miller
Wendy and Mark Abbott, Susan and John Wood
Dick Meyer, Bill Davis
Nila and John Griffin
Bob Welch, Avrohm Wisenberg, Lou Mastos
Russell and Eve Grace
Hazel and Ed Elliott, Carl Wilson, William Marbury, Bill and Gail Little,
Becky Napper
Louis Vale and Ray Johnson
Wes Lueken, John Corrie,
Marilyn and Doug Bauckham
Fred Steves, Rollie Wiegers, Bill Davis
Bill Vickrey, Sam McBirney, Joel Ory, Pete Biggs
Bob Maes, Robert Grace
Ron and Nancy Gabor
Becki and Clay Tucker
Paggy and Mike Ashner
31
Joe Olson and Bernie Concannon
Ray Johnson, Barbara and Don Litchfield
Kathleen and Louis Williams
C hapter
2
Awards of
Distinction
By Tom Rogan
President
TBR Insurance Consultants Inc.
Vincent E. Donahue was a true friend and loyal supporter of the AAMGA and strong advocate
of its wholesale distribution system. He was President of the Jefferson Insurance Company
and remained active with the AAMGA as an Associate member until his death in 1978. He
gave many AAMGA members their start in the hard-to-place property business by contracting
with and structuring unique authority lines to suit their areas of operations and underwriting
needs. He was known for his quick wit and interesting speeches at AAMGA annual meetings. But most importantly, he had a solid reputation for being a man of his word. He was
instrumental in encouraging competitors, both foreign and domestic, to join the AAMGA. His
remarkable foresight and confidence in the wholesale insurance business has proved wellplaced many years after his death.
The early leaders of the AAMGA decided to honor the memory of Vince Donahue by creating
the Vincent Donahue Lifetime Achievement Award (the “Donahue”) in his name.
Each year, the AAMGA President names a special ad-hoc committee to review those “persons
in the wholesale insurance business who have exhibited Vince Donahue’s legacies of leadership, high moral character, and commitment to the wholesale distribution system. This award
is considered on an annual basis, but awarded only on those rare occasions when those nominated are judged to have contributed to our business in a “highly exceptional manner.” In the
years since this award was established, there have been just nine recipients. Their achievements are described on the following pages.
32
Rollie L. Wiegers – 1992
Rollie Wiegers and five other key people founded the Scottsdale Insurance Company in 1982.
Scottsdale Insurance was and is dedicated to the excess & surplus wholesale marketplace. Rollie
never forgot those who helped to grow the Scottsdale in such a dramatic way—the wholesale
MGA, many who are members of the AAMGA. His support of the AAMGA University and all
Association activities is typical of his unwavering commitment to those with whom he conducted
business.
Rollie was the first “Donahue” recipient. Rollie knew Vince Donahue very well when Vince was
President of the Jefferson Insurance Company and Rollie was the President of Great Southwest
Insurance Company. Due to a shortage of reinsurance being available, their companies agreed
to write net participating policies. In 1992, the award was presented by AAMGA President Tom
Rogan, who said “the ad-hoc committee was very wise in their nomination of such a knowledgeable leader in the E&S business and man of unquestioned integrity who is a perfect example of
the criteria that make up AAMGA’s highest honor.”
Since retiring from the Scottsdale Insurance Company, Rollie joined with family members to
form the Colonial General Insurance Agency with offices in Arizona and Utah. He is presently
Chairman of this business.
33
Joel P. Ory – 1994
Joel P. Ory—“Mister” Ory to many—had a long relationship with the AAMGA of over 40 years.
While President of Agency Management, an MGA based in Baton Rouge, Louisiana, he was
elected to the Board of Directors and served as Vice President. He also had a distinguished
career as President of the Audubon Insurance Company. In 1984, Joel was named by President
Lou Matos to the newly created position of AAMGA Secretary-Treasurer. He was retained in
this important position by every President from 1984 until he decided to retire in 1997. Joel
raised the accounting standards of the Association to a professional level and became known as
a vigilant protector of the Association funds, with a very watchful eye on frugal expenditures. In
1994, AAMGA President Ed Calabrese presented the “Donahue” to Joel, citing these revisions
as among many that earned “Mr.” Ory this high honor. Joel also served as Secretary of the Scottsdale Insurance Company’s Agents Advisory Board from 1996 until 2005.
Note from the author: On August 26, 2011, Joel Ory passed away peacefully at his Baton Rouge,
Louisiana, home with his wife, Kathleen, and family members by his side. Joel would have
celebrated his 90th birthday on October 4, 2011. At his funeral, Joel and his many acts of love
and charity in the community were recognized. As a WWII Veteran and former officer in the
US Army, he was afforded a military escort and rifle salute at the touching graveside service. As
the sounds of Taps being played by one of the soldiers faded away, it was agreed that the good
memories of Joel P. Ory never would.
34
Earle S. Dillard – 1996
Earle Dillard was President of Bloss & Dillard, CMGA, Huntington, West Virginia, until his death
in 1995. After a very proactive term on the Board of Directors, he was elected AAMGA President
for 1973–1974. He was committed to growing the Association, but insisted that membership
standards be maintained. He had a great knowledge of our business and predicted the regulatory intervention in our business that is present some 30 years later. He established criteria for
archiving AAMGA records and memorabilia that have become a “treasure” to the Association.
Earle’s personal reputation and highly respected business reputation directed a positive impression towards the AAMGA, drawing in new domestic insurers, as well as foreign insurers, as new
members.
In 1996, President Preston Gough presented the “Donahue” posthumously to the Dillard family.
It was proudly accepted by his son, Kerry, (now President of Bloss & Dillard), who accepted on
behalf of his mother, Naomi, and the Dillard family. He later said they were overwhelmed by
this great honor. Today, the Donahue award remains proudly displayed in their office lobby.
35
Derek Hughes – 1998
Derek Hughes accepted an underwriting position in 1968 with Western World Insurance
Company. A newcomer to the then fledging excess & surplus lines business, Derek overcame
internal and external skeptics to eventually lead the company as President in a conservative, fiscally responsible way. As a result of Derek’s leadership, Western World became one of the most
respected companies in our business. When Derek chose to retire in 1992, he turned over a
company well-positioned to succeed.
Derek knew Vince Donahue, and even though Derek was with a competing company, Vince was
very willing to make suggestions about which AAMGA members Derek should consider when
expanding Western World. Derek was also very active with the National Association of Professional Surplus Lines Offices (NAPSLO), which honored him by creating the Derek Hughes
Educational Foundation in 1990.
In 1993, President Jim Ryan said it was the highlight of his AAMGA presidency to be able to
present the “Donahue” to such a highly respected man and good friend to him and so many
others within the Association.
36
Thomas B. Rogan, CIW – 2001
Tom Rogan, author of this chapter, retired as Chairman and CEO of the MacNeill Group,
CMGA, Fort Lauderdale, Florida. In 2001, he formed an insurance consulting firm, TBR Consultants, Inc., headquartered in Ft. Lauderdale. He splits time between homes in Ft. Lauderdale
and the mountains of North Carolina with wife, Barbara. In 2005, he was appointed Permanent
Secretary of the Scottsdale Agents Advisory Board.
Tom served as AAMGA President for 1991–1992 and today remains active in Association activities. Tom was delightfully surprised to learn of his selection as the “Donahue” recipient at the
2001 annual gala event. When President Len LoVullo presented the award to Tom, he drew the
connection between Vince Donahue and Tom Rogan “as leaders, voices of reason, visionaries,
and men of great moral character with the ability to see that in others.”
Tom holds the “Donahue” award at the top of his “bucket list” of career events and said “to
be selected by your peers and become only the fifth person in AAMGA history [at that point
in time] is the highest honor one could receive. To be listed as a “Donahue” recipient with the
legends of our business is a memorable experience.”
37
R. Max Williamson – 2004
Max Williamson retired as Chairman and President of the Scottsdale Insurance Company in
2005. He spent most of his business career as an executive in the insurance business.
Max received the “Donahue” from AAMGA President Ronnie Moore in 2004. Ronnie commended the Committee that selected Max as being very wise, because Max has always been a
man of rock solid character and those with whom he did business always knew exactly where
they stood. His work ethic was very impressive; he was dedicated to the insurance industry and
especially to the wholesale agency distribution system.
Max recently commented on his award:
“In 2004, I was fortunate, honored and, of course, surprised to be the proud recipient of the
Vince Donahue award from AAMGA, presented by Ronnie Moore, the President of AAMGA that
year. I should have known something was up when Gary Tiepelman suggested that the Scottsdale delegates at the convention gala all wear a tux, which I dutifully did. It was a great evening,
and I still proudly display the award in my ‘home office’ since I am now retired. I consider the
few recipients of the award a very select group of professionals that I am proud to be in the
same ’fraternity’ with.
“I met Vince when I was a relative newcomer to the Excess and Surplus Lines side of the business. He was very helpful and instrumental in helping my employer at the time to select quality
MGAs from around the country. He was, at all times, a gentlemen and a professional. I used to
refer to him as the “Dean” of the E & S business. He set a high standard of excellence, a real
pioneer in the E & S industry.”
Max now resides in Ohio with his wife, Elizabeth, where they enjoy golf, travel, and spending
time with their family.
38
John Clements – 2005
John Clements retired as Chairman and co-founder of Bells Clements, Ltd., London, UK, after
a very successful career spanning five decades. Many of these years were spent developing
unique insurance products that were exclusively marketed in the United States through wholesalers and AAMGA members. As an AAMGA Associate member, John was a truly committed
advocate of Association activities and frequently volunteered his time and experience in many
education activities as instructor and participant. He also was a knowledgeable member of several industry panel discussions. He was a willing co-host with many of his London colleagues
for AAMGA International events scheduled in the UK.
As others before him, he was “knocked out” when President Joe Hutelmyer announced his
selection as the “Donahue” recipient in 2005. He knew Vincent Donahue and considered him
a “formative influence.” Vince welcomed him into the AAMGA and guided him expertly on the
selection of MGAs throughout the United States.
John and his wife, Chris, are now enjoying retired life, often with extensive travel (sometimes
on motorcycles). John also hones his woodworking talents in his home workshop.
39
Wesley C. Duesenberg, Jr., CIW – 2008
Wes Duesenberg is President and CEO of Southern Insurance Underwriters, CMGA, in Alpharetta, Georgia. Wes received the “Donahue” in recognition of his multiple contributions to
the AAMGA, including many committee assignments, service on the Board of Directors, service
as President (1987–1988), and long term as Secretary-Treasurer from 1997 through 2008.
Wes, who was always a strong advocate of raising the level of education for AAMGA members,
had the vision of a “university without walls,” and with great assistance from his steering committee, realized a dream when the AAMGA University became a reality in 1987. Thousands of
AAMGA students have since benefited from the extensive education programs, enabling them
to secure knowledge, as well as other insurance certifications. Wes continues to raise financial
support. In addition, he has worked tirelessly to establish the Georgia State University Distinguished Chair in Risk Management and Insurance. He is currently Vice Chancellor of the
AAMGA University. AAMGA President Tom Albrecht felt the Association used great judgment in
awarding Wes this honor.
40
Anthony (Tony) Markel – 2011
Tony Markel is Vice Chairman of Markel and has been with the group since 1964. He has been
part of the senior leadership team in operations since the corporation went public. Tony is highly respected in the business world and has seen his companies consistently evaluated as tops in
their field by reputable rating firms. Tony has seen a tremendous growth in the many companies
of the Markel Group, but has never lost his appreciation of the value of the wholesale distribution system and, in particular, the AAMGA. He has been a familiar presence at AAMGA events
for over 30 years and has an amazing capacity for remembering the names of the people with
whom he does business, as well as the members of their families. The Markel Group companies
are well respected and represented by many of the AAMGA members throughout the country.
When he announced Tony’s name during the Donahue Award presentation, President Mark
Rothert commented that Tony’s business success has “never changed his down home sensibilities and caring about others.”
Tony commented, “I have been blessed during my career to receive several awards, but none
of them mean more to me than the Donahue Lifetime Achievement Award. This award, which
has only been given to eight others in the illustrious history of the AAMGA, is made even more
special by the fact that I not only knew and worked briefly with the Award’s namesake, Vince
Donahue, but I’ve worked closely with all eight of the past honorees. To be included in this
respected group is a thrill for me and, although probably unworthy, I accept this award as affirmation of a “job well done.” Our business, the specialty insurance business, has been built
over time by special people dedicated to service and relationships and I am truly humbled to be
numbered among them.”
41
Mary Carriero, Sue Katz, Joice Keating,
Elizabeth Williamson
Sue Katz, Rob Giles, Laurie Giles
Avrohm Wisenberg
1997 Foreign Seminar, Vienna, Austria
Bob Schneider, Bob Katz, Ed Calabrese
Ralp Reese presents Laurie Giles with
“Where’s Mary Award”
Marcus and Betty Payne, Joan
and Orville Jones
Tom Rohs and Bill Alligood
Natalie Zonies, Barbara Strickland, Elizabeth Williamson, Mary Calabrese
Joan and Dick Smith, Fran and Charles Tea
Neal Strickland, Peter Carriero, Bob Zonies
42
Marie and Dick Bouhan
Bill and Sharon Alligood, Helen and Ray Johnston
Orville Jones, Gene Horner, Marcus Payne
Mike Snead,
Ed Calabrese
Don King, Bill Fink, David Wheal
Fielder and Sue Calhoun, Andy Frazier, Mary and A.P. Cunningham
Preston and Barbara Gough, Tom Stamm,
Ruby and Bob Libby
Carolyn and Jack Reed
Eleanor Lester-Westphalen
Graham Bignell, Christine Bignell, Joel Ory, Peter Barrett
Janet and Glasgow Hicks
43
Avrohm Wisenberg, Bob Welch, Louis Williams
Louis and Kathleen Williams
Brian McMahon, Louis Vale, John Clements
Joyce Keating, Sally Schneider, Carol Stamm, Sue Katz
C hapter
3
AAMGA &
Lloyd’s
A Trading Relationship That
Continues to Evolve
By Peter J. Barrett
Chairman
Bell & Clements Limited
44
The founding and development of the
American Association of Managing General
Agents (AAMGA) 1926-1991 was chronicled
in “Proud History - Bright Future” which
was distributed to members at the annual
meeting in 1992. From its founding, an
important trading relationship developed
between AAMGA and Lloyd’s. While much
of the background and history that existed
at the time was covered in “Proud History Bright Future,” there are some key concepts
and stages of development that are worth a
further review.
First, the nature of the business in which
AAMGA members engaged from the founding of the Association up until 1991 changed
significantly. Originally, AAMGA members
represented admitted carriers for mostly
personal lines products. In this capacity, they
acted much like a branch office for these admitted carriers writing specified coverages in
designated territories. Over time, the product
mix altered, with the inclusion of commercial
as well as personal lines business. In the post1945 world, the pace of economic development in the United States fueled a significant
increase in demand for a variety of insurance coverages. The market environment in
which AAMGA members traded also altered
with this increased insurance demand. There
emerged a new market segment known as
non-admitted or excess & surplus (E&S) lines
carriers who wrote some of these “specialty”
coverages.
HMS Victory:
Lord Nelson’s flagship
AAMGA and Lloyd’s: A Sound Fit
So how and why does Lloyd’s fit into this
changing business? The answer lies in the
founding and development of Lloyd’s, from
its 1688 origin in Edward Lloyd’s coffeehouse in London to the worldwide market for
insurance and reinsurance that it is today. As
most insurance professionals know, the concept of insurance was based upon the needs
of those engaged with maritime commerce.
At that time, no insurance protection existed.
So those involved in shipping were subject to
catastrophic loss if the ship they owned, with
their crew and cargo, were lost on a voyage.
Such catastrophic loss had the clear potential
Waiter ringing the Lutine Bell in the
Underwriting Room at Lloyd’s
45
The Adam Room in the Lloyd’s building
The Underwriting Room in the Lloyd’s building
Exterior View of the Lloyd’s building
46
Both parties benefit from their shared desire
to find solutions to satisfy the needs of the
insurance marketplace and by contributing
their specific expertise to do so.
to bring financial ruin to the shipowners and
other investors, without any adequate protection available.
With Edward Lloyd’s coffeehouse providing
the venue for those with common interests
in maritime trade to gather and discuss issues of concern, the concept of sharing of
risk was formulated. The theory was that in
the event of a significant loss, the financial
burden would be shared amongst the many
and would thus be manageable, as opposed
to concentrated on the few with the burden
of dire financial consequences. While this
was initially accomplished via a less formal
agreement, it was the basis for what became
marine insurance. It set the foundation for the
development of the global insurance industry
we all know today.
Common Goals, Different Methods
In reviewing the business conducted between MGAs in the United States and Lloyd’s
underwriters, it is worth bearing in mind
the statement that England and the United
States are two countries separated by a common language. It has much relevance in how
the insurance business is also conducted.
The United States is unique in that it has
a two-tier market for insurance business:
admitted and non-admitted status. It is also
unique that within these parameters there is
a 50-state regulatory framework to navigate.
In addition, there are federal guidelines to
comply with, and presently we are witnessing some very important structural changes
to this way of regulating insurance. This all
exists before any business is written and any
claim occurs. The judicial issues in the United
States also provide a very diverse approach to
dealing with claims.
The original innovative skills demonstrated
by those in Edward Lloyd’s coffeehouse to
identify and customize a solution to their
needs continued over the 300 years plus history of Lloyd’s and have much in common
with AAMGA members who have also demonstrated their ability to react to changing
conditions with innovate solutions to meet
the demands of their constituents.
In the context of how the insurance business
is conducted and regulated in the United
Kingdom, it is safe to say that those uninitiated in writing US business face a sharp learning curve, as the US-type regulations do not
exist in the United Kingdom. In the simplest
context, for much of its existence Lloyd’s was
self-regulating and was able to set its own
Lloyd’s Today
Lloyd’s underwriters are, by nature, innovative when confronted with the unusual
or exotic type of risk exposure. Examples
range from custom solutions for well-known
celebrities and sports stars to less well-known,
but also highly complex, types of risk. In
addition to these coverages, there is also a
strong core of everyday casualty and property
exposures that require insurance coverage.
Therefore, MGAs and Lloyd’s fit well together
based on the specific skill sets that each party
has. By providing underwriting authorities
to MGAs, Lloyd’s underwriters provide the
MGAs the ability to write business within the
contract terms and conditions. At the same
time, Lloyd’s underwriters utilize their available capital base and risk capacity to obtain
business via the MGA, which has the access
and local knowledge, as well as specific risk
awareness, to select appropriate risks to write.
Signature of Her Majesty
Queen Elizabeth II in the
Lloyd’s guest book
47
guidelines as respects market conduct. This
has since changed, and today Lloyd’s is regulated by the UK Financial Services Authority (FSA) under the Financial Services and
Markets Act 2000.
further strengthen the bonds that exist. Some
examples would include holding AAMGA Executive Meetings in London with a variety of
industry contacts to discuss prevalent issues,
as well as those working in the Lloyd’s market
participating in AAMGA sponsored events.
Lloyd’s Brokers Bridge the Gap
To overcome some of the uncertainties that
existed between MGAs wanting to gain
access to Lloyd’s and the desire of Lloyd’s
underwriters to participate in the business
produced by these US MGAs, Lloyd’s brokers
played a vital role. They were, and are today,
the bridge that exists between the two principal parties in the conduct of this business.
Over the years, Lloyd’s brokers formed relationships with specific MGAs based around
the United States. They would return to London to discuss potential business opportunities with Lloyd’s underwriters. Based upon
the discussions they had while in the United
States, it was incumbent upon them that they
possessed a thorough knowledge of the business, in addition to the financial position and
ownership of a specific MGA. They must also
understand any regulatory factors relating to
any business opportunity. This would all be
discussed with Lloyd’s underwriters to see
if there was an interest in pursuing a given
potential business opportunity.
The Last 20 Years—What Has Changed and
What Has Not
The first major change of the last 20 years is
the fact that the US property/casualty industry has more than doubled in size from the
total direct premiums written of $235 billion
in 1991. Within that the total, surplus lines
direct premium written has grown by a factor
of four based on estimates for year-end 2011
(note this is a significant reduction from the
peak achieved in 2006). The Lloyd’s market
has equally grown during this time frame.
The premium growth has been driven by
many factors converging to increase demand
for insurance coverage. It is important to explore some of the factors that occurred in the
last 20 years to better understand the present state of play, while maintaining an eye on
what the future may hold. At the same time,
some factors may be unique to US business
and some to UK business, but most converge
with a common interest.
By working closely together, the MGA,
Lloyd’s broker, and Lloyd’s underwriter
would collectively bring to bear much general
and specific knowledge in order to determine
the most suitable course of action for a given
business offering.
In the 1990s, the Lloyd’s market was confronted by some very difficult issues. There
was a significant uptick in worldwide catastrophe losses, and at the same time, there was
a dramatic increase in US liability losses that
were presented, many of which were based on
policies written in the 1950s and 1960s. The
catastrophe losses were mounting when, in
August 1992, Hurricane Andrew hit Florida
and Louisiana, becoming the largest insured
loss at that time. Additionally, the prior year
US liability losses emanated mostly from
insureds that were involved with asbestos and
pollution exposures. This put a tremendous
strain on the financial resources of Lloyd’s
and those who invested in the Lloyd’s market,
known as Lloyd’s underwriting members, or
“names.” The market was then capitalized by
these individual investors, or names, who underwrote business by participating in specific
At the same time, AAMGA provided an ideal
platform for MGAs, Lloyd’s brokers, and
underwriters to meet and exchange ideas
and learn more about all aspects related to
potential US business that could be transacted together. By working closely together
and building trust through long-standing
relationships, any differences in methodology
could be better understood and informed
decisions could be made. AAMGA members
and those working in the Lloyd’s market have
always communicated well with each other
and have been willing to travel extensively to
48
Top view of the
Lutine Bell housing
49
ture, reconstruction and renewal provided a
basis on which Lloyd’s could move forward,
while a special vehicle called Equitas was
formed to contain the pre-1993 liabilities. In
2007, Equitas and its liabilities were acquired
by Berkshire Hathaway, thus ending this
chapter at Lloyd’s. During this difficult and
turbulent time, AAMGA members remained
resolute in their support of Lloyd’s. By
maintaining their business with Lloyd’s, the
MGAs greatly assisted the Lloyd’s market
in overcoming this troublesome period and
making a fresh start in doing business.
Lloyd’s syndicates and sharing in the profits
or losses of any given syndicate. An important
point to note is that the names who invested
at Lloyd’s were subject to unlimited liability,
i.e., to the extent of their ultimate personal
net worth in order to respond to losses on
the syndicates in which they participated. This
resulted in some very significant losses and
called into question Lloyd’s financial standing.
Restructuring Lloyd’s
In reaction to this situation, Lloyd’s was restructured. As of 1994, instead of exclusively
individual members or names writing business on an unlimited liability basis, Lloyd’s
now offers corporations and businesses the
opportunity to invest on a limited liability basis. Today, Lloyd’s capital is largely provided
by limited liability investments. This was followed in 1996 with an agreement known as
Reconstruction and Renewal, which resulted
in all liabilities for pre-1993 business being segregated from the ongoing business at
Lloyd’s. While extremely complex in its struc-
From post reconstruction and renewal,
Lloyd’s continued to transition in a way to
make it an insurance market that kept current with the needs of the time. There were
changes in all aspects of Lloyd’s business,
including its capital base, methods of operating, regulatory framework, and technology.
These changes all assisted in Lloyd’s achieving substantial progress to reestablish its
standing in the global insurance market. As
a direct consequence of the changes taking
50
the claims, there was, of course, also the issue
of providing coverage going forward. Lloyd’s
also worked with many interested parties to
seek a way of continuing to provide coverage for various risks assumed by businesses
that required insurance in order to be able to
continue operating.
place at Lloyd’s, the number of trading syndicates fell from over 400 to 82 as of December 31, 2010. While the number of syndicates declined, the overall market capacity
actually increased. This positions Lloyd’s
today with the ability, where prudent, to
write more business as compared to 20
years ago. Since 1993, Lloyd’s has achieved
excellent ratings from A.M. Best, Standard &
Poors, and Fitch.
As a direct result of the 9/11 losses, Lloyd’s
made an effort to put into place contract
certainty from the time a risk is bound. The
prior market practice had been to bind coverage without having agreed to a full contract
wording. This also applied to delegated binding authorities by requiring a comprehensive
binding authority agreement being in place
prior to binding of business under these
facilities.
The Impact of 9/11
While this progress was continuing, the
events of 9/11 profoundly affected the
business in many varying ways. The shock
it caused the world, along with so many
uncertainties, was a challenge to endure
and overcome. For the global insurance and
reinsurance industry, dealing with this most
complex claim scenario was unprecedented.
Still, in time, with the professional dedication and effort of many, claims were dealt
with. Lloyd’s fully met its claims obligations
and was recognized by the US Treasury
Secretary for doing so. Apart from settling
While technology will be covered separately
in this book, it is important to recognize
here the advances made in this area in recent
years. The quality and the timely receipt of
risk data that is available today has made
the management of our business much more
New York City, Post 9/11/2001
51
efficient. With the frequency and severity of
catastrophe losses in recent years, the quality
of the data that is available thanks to technology has proved invaluable to all. Both members of AAMGA and the Lloyd’s market have
made significant investments in technology,
which have been of great benefit when doing
business together. The AAMGA technology
conferences have received wide support with
participants from the United States and the
United Kingdom. Today, the ability to analyze
and model potential catastrophe losses prior
to an occurrence is a direct benefit of the
advances that have been made in technology.
This ability to model has become a vital and
useful tool for many and has been actively
supported by AAMGA members and Lloyd’s
for the business conducted together.
Lloyd’s syndicates by US insurance interests.
There are also Lloyd’s groups who are established and trading in the United States.
The ability to harness technology to drive efficiencies and professionalism will continue to
play a major role in the future of our industry.
However, the ability to communicate, share
ideas, and work together to meet a variety of
challenges will continue to be vital as they
were in Edward Lloyd’s coffeehouse in 1688
and at Signal Mountain, Tennessee, in 1926,
where the groundwork for what would become AAMGA was forged.
The author gratefully acknowledges the information and assistance he gained during discussions
with Gordon Breslin, G J Breslin Syndicate
1318; Gary Clark, Miller Insurance Services
Limited; David Melaniphy, Jubilee Syndicate
5820; and David Wheel, RFIB Group Limited.
The Under Forty Organization
Another important development in the last 20
years has been the launch of AAMGA’s Under
Forty Organization, or UFO. This group has
provided an ideal forum for those young
professionals in our sector of the business
to communicate with and learn from each
other all facets of our unique business. It has
both grown in size and stature and has been
strongly supported by those in the United
States and the United Kingdom. The Lloyd’s
market had previously established the Lloyd’s
Under 30s Group to provide younger practitioners the platform to experience many
important aspects of our industry.
What Does the Future Hold?
The last 20 years have provided many opportunities and challenges. It is clear that
this trend will continue in the future. There
will be an increased demand for the insurance products we provide, as well as a need
to innovate with new product solutions for
emerging exposures.
While it is likely that there will be an increase
in mergers and acquisitions resulting in some
very large trading entities, it is also probable
that there will be a place for smaller entities
who can provide a value-added contribution
to this business. There exists today both an
investment position as well as ownership of
52
Reference to Sir Eustace Ralph Pulbrook –
a former Chairman of Lloyd’s
53
Barbara Moor, Iris Brayton, Jack Reed, Carolyn Reed
Susan and Bill Alligood
Evelyn and Avrohm Wisenberg
Preston Gough, Mike Adam, Paul Davis,
Bob Libby, Sue Davis
Diana and Frank Berry
Chris Eliot, Kathleen & Louis Williams, Albert Bridge
Elton and Leslie George
Mike Sobieski, Gene McGee
Dick Morris, Marion Louise, winner of VCR, and Irv Saltzman
54
Courtney and Fred Steves
Ron and Harriet Balcar, Jeff Jenkins, Carolyn and Jack Reed
Ed Parker, Haynes Brinkley
Juanita Presley, Mike Ashner
Marcus and Betty Payne
Elton and Leslie George, Charlie Caldwell
Violet Evans, Sue and Paul Davis
Philip Oxford, Bob Libby, Mike Adams
55
Mary and A.P Cunningham
Bob Libby, Andrew Frazier
Herb Kaufman, David Price, Jerry Horton
Sue and Sandy Wilson, Paul and Sue Davis
Charles and Gloria Ellman
Jean Pondrom, Tony Curtis
Mike Thompson, Roger Milbert, Charles McCarron, Ken Boyd
Steve and Judy Sprowls
Winnie and Alan Rubin
C hapter
4
From a Course
to a Curriculum:
The Development of Education
at AAMGA
By Chris Behymer, CPCU, ASLI
Director of Business Development, Binding
Markel Wholesale
56
In the early 1980s, educational courses provided by AAMGA were inconsistent and infrequently offered. As a result, a great deal of
information about the organization and how
its members operate was not being disseminated to members of the younger generation.
As AAMGA President from 1987 to 1988,
Wesley C. Duesenberg, Jr., CIW (Southern
Insurance Underwriters, CMGA), had a vision
of the future of wholesale insurance education. He believed that AAMGA should be on
the leading edge of developing technical and
leadership expertise within its membership.
While other programs (CIC, IIA, and CPCU)
were good at explaining general insurance
concepts and coverages, the surplus lines
component was notably missing.
insurance industry.
4. Provide a means to help future leaders of
the Association understand the rich tradition
and proud history of AAMGA.
These objectives are as valid today as they
were 25 years ago, and they still serve as a
guidepost for the decisions that are made
regarding AAMGA University matters.
The First Day of School:
Early Years
If the AAMGA University
was to meet its ambitious
goals, it was clear there
needed to be a structure
in place to manage its
activities. The first order
of business was to establish a 501(c)(3), titled the
AAMGA University Foundation, to raise $2,000,000.
The Board worked closely
with AAMGA members
and companies to enlist
Rollie Wiegers
their financial support to
raise the needed capital. Thanks to the many
contributors, and especially Rollie Wiegers
at Scottsdale Insurance Company for the
initial contribution, the University was able
to pledge to operate using only the interest
income from the AAMGA University Foundation principle.
Virtual Reality: The Beginnings of AAMGA
University
In 1987, Wes enlisted the assistance of fellow
Board members, Tommy Ruke, CIW (Insurance Business Consultants),
Peter Scobie, CIW (The
Scobie Group), John Heyden
(American Modern Insurance
Group), and others to begin
the process of establishing
a more formal educational
program for the Association.
It was dubbed a “university without walls.” Thus,
the seeds of what grew into
AAMGA University were sown
to provide a vehicle for delivering quality insurance and
management courses for the
members of the Association.
Wes Dusenberg
University Administration
The structural organization of the University was similar to academic universities. It
appointed Wes as the first Chancellor, Peter
Scobie as Vice Chancellor, and Joel Ory as
Secretary-Treasurer. Oversight was provided
by the Board of Trustees comprised of the
AAMGA Past President and members of the
Executive Committee, which included the
Chancellor, Vice Chancellor, and the Secretary/Treasurer.
Four basic goals were established when
AAMGA University was formed:
1. Increase the business knowledge and management skills of managing general agency
and insurance company personnel.
2. Strengthen the insurance industry’s ability to deal with an ever-changing business
climate by providing continuing business and
management education specifically designed
to meet the needs of member MGAs.
3. Support professionalism in the managing
general agency system and throughout the
Chancellor
The Chancellor serves an important role
in directing the activities of the University,
promoting the importance of education to
all members and constructing a formalized
57
AAMGA University Chancellors
1995 – 1998
Peter Scobie, CIW
The Scobie Group, CMGA
1998 – 2000
Fred Steves, CIW
Myron F. Steves & Co., CMGA
2000 – 2003
Preston Gough, CIW
Southern Cross Underwriters, CMGA
2003 – 2006
Leonard LoVullo, CIW
LoVullo Associates, CMGA
2006 – 2009
Rob Giles, CIW
The Scobie Group, CMGA
2009 – 2012
Joe Hutelmyer, CIW
AmWINS Transportation Underwriters, CMGA
approach to how programs are created,
developed, and delivered. Wes served in
this capacity from 1987 to 1995, and upon
his departure, the reins of the position were
subsequently turned over to former AAMGA
Presidents who shared Wes’s passion for
education.
Director of Education
To help with the day-to-day activities, Wes
and the University contracted with Tommy
Ruke, owner of Insurance Business Consultants, Inc. (IBCI), as the Director of
Education for the University. Tommy was
a well-known instructor and was respected
throughout the industry as being one of the
leading experts on all forms of transportation
insurance. With his unique perspective on the
needs of specialty insurance MGAs, Tommy
got started developing components of the
University in 1992, many of which still exist
today.
lines industry. Offerings included Trucking,
Garage, General Liability, Property, Personal
Lines, Professional Liability, and courses
that dealt with sales and management topics.
Initially, these courses focused on coverage
forms and the nuances of writing insurance in
the surplus lines market. These sessions were
often referred to as stand-alone classes and
were scheduled at locations around the coun-
Coverages
try so students’ travel time and related costs
could be minimized. The format included a
Sunday morning start time with completion
by mid-afternoon on Monday. This not only
limited the time students were away from the
office, but also took advantage of reduced
airfares based on a Saturday night stay, a
common airline promotion in the 1990s.
The University Administrative Council
To assist in the management and oversight
of the University, the University Administrative Council (UAC) was formed. This group,
comprised of the University Chancellor, Vice
Chancellor, and chairpersons from the Curriculum Development, Accreditation, Scholarship/Internship, and Marketing Committees,
teamed up with Tommy to determine the
educational needs of members.
In conjunction with developing a University
Courses and Instructors
One of the initial tasks was to create a catalog
of courses that were specific to the surplus
58
catalog, it was also important to have a cadre
of qualified instructors to deliver the courses.
Tommy was able to use his connections with
other nationally known insurance educators
to persuade them to teach for the University.
In addition, AAMGA members graciously
volunteered their brokers, underwriters, and
training professionals to add to the ranks of
the faculty. It made sense to use the talented
personnel from within AAMGA as these associates worked in the “trenches” on a daily basis and could offer both theory and practical
application to the information being taught.
versity established three professional designations:
• Certified Insurance Wholesaler
(CIW)—Designed for agency principals and
managers, this designation required completion of 120 hours of approved courses plus
submission of a research project on a topic
related to the wholesale industry.
• Certified Wholesale Insurance
Specialist (CWIS)—This designation was
similar to the CIW in terms of the number
of hours and project requirements but nonmanagement agency personnel and company
underwriters could elect to earn these initials.
The Role of Continuing Education
To improve the marketability of University
courses, the UAC and the Curriculum Committee determined that offering continuing
education (CE) credit would be an added
benefit for members. In 1992, over half the
states had CE requirements for licensed
agents (and that number has since grown to
include all states and Washington, DC). While
the statutes varied, most stipulated completion of a certain number of qualified CE
hours each year or every 2 years in order to
maintain a license to sell insurance.
Becoming a CE provider in multiple states
is not an easy task as the regulations and requirements are different in each jurisdiction.
However, by 1993, with the help of IBCI,
most AAMGA classes offered CE credit on a
nationwide basis. It was one of only a handful
of organizations in 1993 to be able to make
this claim and is still the only one with a curriculum comprised mostly of surplus linesrelated classes.
Note: the CWIS and CIW designations were
combined in 2008, and individuals with the
CWIS were granted the CIW designation.
• Certified Managing General Agency
(CMGA)—The CMGA is unique in the
crowded world of insurance designations as
it requires all members of an agency’s staff to
complete an average of 8 hours of approved
course work. In a sense, it is recognition of
an agency owner’s commitment to ongoing
education for the entire organization.
Another benefit to offering courses approved for continuing education credit is the
enhanced reputation of the University that
comes with third-party oversight. Having a
regulatory body approve course content lends
a certain amount of credibility to the material
covered, as well as increased attendance at
University outings.
Members with the CIW designation are
required to renew their designation every 2
years by completing 32 hours of approved
education courses, and CMGA designation
holders must requalify every year. As of June
2011, there are 55 AAMGA members with
the CIW designation, and 34 agencies have
earned the CMGA designation.
Professional Designations
To support and encourage participation in a
wide range of educational pursuits, the Uni-
59
what happened.
Good Students: Scholarships and Internships
Recognizing that success in the future depends on the preparation of the next generation of leaders, the University developed
scholarship and internship programs in 1997.
These opportunities are targeted to AAMGA
member agency owners’ children pursuing
college degrees with an insurance or business major. They can apply for scholarships
that award up to $2,500 a year in financial
assistance. In addition, a comprehensive
internship program was introduced in 1998,
which now provides a wide-range of learning
opportunities. Interns are assigned to a member company and a general agency outside of
their “home” territory. There is also an option
to spend time in London to learn about the
importance this market plays in the surplus
lines industry.
Nurturing Success
Success in the surplus lines industry is based
to a large degree on building and enhancing relationships between general agents and
insurance company underwriters. Having
the ability to meet with and get to know the
company decision makers is critical for general agents and vice versa. With that in mind,
University leaders began looking for a venue
where these two groups could come together
and learn more about the business, as well as
socialize before and after classes to develop
the trust that is so important to writing business.
Hot Prospects … Literally
In August 1994, University Weekend was
moved to Scottsdale, Arizona. Now, going to
Arizona in the middle of the summer is not
something that most sane people would do.
But the advantages were too great to ignore.
Cramming for Credit: University Weekend
The stand-alone courses proved popular with
all AAMGA members. These sessions focused
on one topic at a time, such as Property or
Trucking Insurance, and allowed students
to earn 12 hours of CE credit. However, the
UAC wanted to make additional educational
opportunities available to members, so the
concept of a University Weekend program
was born in 1991.
Unlike the stand-alone classes, University
Weekend sessions provided a smorgasbord
of topics, and participants could select from a
variety of CE-approved and non-CE courses
to attend during the 3-day program. Another
advantage was that with a little planning,
agents could earn up to 20 hours of CE
credit in just one weekend, thereby meeting
the annual or biennial requirements in most
states.
In 1991, this idea was tested in Kansas City
in conjunction with Committee Day, and
in 1992 a similar session was held in Minneapolis. Attendance was somewhat limited,
but it was clear there was merit in delivering
multiple topics over a period of several days.
The goal was to eventually make University
Weekend the flagship educational program of
the Association. History shows this is exactly
Teamwork
They included the following.
1. Hotel rates are deeply discounted during
the off-season so accommodations were available at an affordable cost.
2. Phoenix is served by an international
airport and participants from around the
county (and internationally) were able to get
to Arizona fairly easily.
60
the budgetary and time constraints, this East
Coast location also allows members from that
part of the country to attend a quality education program without the need to fly all the
way to Arizona. Some might argue that the
two programs “compete” for students, but the
results have proved just the opposite. Individuals who would not have traveled to Arizona are now making the decision to attend
University Weekend East because it is held in
a convenient location.
University Management
In 1996, the University Administrative
Council began discussing the idea of hiring a
full-time Director of Education to assist in the
management of the University. After a good
deal of discussion and with approval from the
AAMGA Board, Chris Behymer was hired in
October of 1998 to fill this role. Chris (the
author of this chapter) was based in Scottsdale, while the administration of University
courses (mailings, registrations, and accounting) stayed at the Association’s management
firm in Kansas City. All matters related to
continuing education (CE) filings and reporting was retained by IBCI in Fort Myers,
Florida. While the separation of duties across
the country might appear to be unwieldy, the
advent of technology made the process seamless for AAMGA members.
3. However, the most compelling reason
was due to the critical mass of surplus lines
insurance companies located in the Phoenix
area. Not only did these companies provide
instructors and participants for the classes,
it gave both groups the chance to meet to
discuss the industry in general and explore
new business opportunities. It was a winning
combination for general agents, company
personnel, and the Association.
Attendance gradually increased over time
from 60 people in 1994 to 262 participants in
2011. In 1994, basic topics such as Property,
General Liability and Garage Underwriting
and even a session on using computers to rate
and quote submissions were offered. The curriculum in 2011 featured some of the same
elementary sessions, but also included classes
on Cyber Liability, Environmental Underwriting, a panel discussion featuring company and
agency leaders, management development
training, and a series of classes on human
resource related issues.
The role of the Director of Education was
clearly defined and included the following
duties:
• Determine member educational needs
through individual interviews and surveys.
• Balance the development of CE and
non-CE courses with an emphasis on leadership fundamentals for the next generation of
managers.
• Expand the use of onsite programs where
AAMGA University courses are offered at a
member’s office for their staff and their retailers.
• Develop the concept of Regional Educational Programs with a focus on more basic
insurance activities such as liability and property rating.
• Use technology and the Association’s
website to more effectively communicate with
If You Build It, They Will Come: The Expansion
of University Weekend
With the success of the Arizona program, the
UAC exported the concept to Minneapolis in
1999 and Philadelphia in 2000, while keeping
the Arizona program firmly entrenched as the
flagship program for the University. For the
past several years, University Weekends have
also been held in Richmond, Virginia, which
is emerging as a formidable surplus lines hub
with a multitude of carriers willing and able
to support the University. Always mindful of
61
members.
• Assist with the coordination of internship
and scholarship activities.
• Coordination of educational programs at
Association events (Zone, Mid-Year and Annual meetings).
• Explore the opportunity to partner with
other associations to develop technical and
leadership-based education programs.
varied background in economics and insurance to the position. The purpose of the Chair
is to focus on issues and opportunities in the
wholesale insurance industry and expand the
formalized educational process beyond the
scope of AAMGA University. The addition of
Georgia State University will prove to be a
powerful partner for AAMGA members in the
future.
The current Director of Education, Jeff
Henry, M.Ed., was hired in October 2007 and
has implemented a whole host of innovative
ideas including online learning opportunities,
a leadership track for members of the Under
Forty Organization (UFO), and curriculum
for members of senior management. In addition, he is developing introductory schools
for those new to the surplus lines industry.
The Future of AAMGA University
When asked to comment about the future
of AAMGA University, current Director of
Education Jeff Henry said, “The AAMGA
University’s vision has always been to provide members with a learning experience
which strengthens their skills and abilities
and moves their careers and organizations
forward. To make this a reality, new waves
of thinking and educating will always be
required. Much has changed since AAMGA
University’s inception in 1991. However,
the basic tenets of the University remain the
same.
Have a Seat: The Distinguished Chair of Insurance at Georgia State University
In 2005, another ambitious task was undertaken as Wes persuaded the Board of
Directors to establish a formal Chair of
Insurance at a major university. After 2 years
of discussion and another 3 years of critical
fundraising led by Ed Levy of Risk Placement
Services in Scottsdale, and with a significant
contribution by Scottsdale Insurance Company, the AAMGA Distinguished Chair in Risk
Management and Insurance at Georgia State
University was officially granted in March
2011.
“As the educational arm of AAMGA,” Jeff
continued, “the University is charged with
providing relevant training programs to assist
members in growing their businesses. While
classroom instruction still plays a vital role
in the University, much progress has been
made in pushing learning opportunities to the
desktop and beyond. Company and agency
personnel work in much different environments today than 20 years ago. The needs of
our learners shape our ever-evolving University.”
Dr. George Zanjani was selected as the
inaugural holder of the Chair and brings a
In class: Greg Rubel,
Greg Corneille, Chris
Behymer, Tom Stamm,
John Latham
62
63
Amy and Greg Gold
Ray Williams and Joe Timmons
Dicksie and Francis Johnson
2004 Board: Wes Duesenberg, Len LoVullo, Scott Anderson, Francis Johnson, Bill
Fink, President Joe Hutelmyer, Tom Albrecht, Euclid Black, Ronnie More, Ed Levy
Sandy and Donna Jackson
Wes and Jo Duesenberg
2005 Victoria, Canada, Whale Watching Group
Ed and Jami Levy
Amy Gold and Barbara Rogan
Ronnie Moore riding Bull
Joe and Lynn Hutelmyer
Mason Blodgett, Sandy and Donna Jackson
64
Barbara and Tom Rogan
Bob and Zuezann Hanna
Marge and Frank Powell
Debbie and Bobby Owens
Cindy LoVullo
Jo and R.C. putting the squeeze on Wes
The Anderson Cooking Team; Shelly, Dorothea,
Scott, Jan Rothert, Jason, Rosemary, Samantha,
Samantha, Linda Forest
Gary and Chris Peterson
Cooking Judge Bernie and his Jury
Suzanna and RC Chaffin
Ron Grove, Donna Schacher, Carol Stamm
Ken and Bob Distel
Brian Clark and Mike Miller
Euclid Black makes a point
Max Williamson, Preston Gough, Len LoVullo, Barbara Gough,
Elizabeth Williamson
Barbara and Preston Gough
2006 Foreign Seminar, Dursten on the Danube
Jeff Henry
Mike Miller
Corinne Jones with friend, Paul
Marilyn Bauckham
65
Curtis and Rosemary Anderson
2006 Foreign Seminar, Vienna, Austria Bike Ride
2006 Foreign Seminar, Budapest at night
C hapter
5
The AAMGA’s
Influence on
Regulation and
Legislation
By Jim Roe, CPCU
President
Arlington/Roe & Co.
The author gratefully acknowledges the assistance of
Rick Pitts, Vice President and General Counsel of
Arlington/Roe & Co., in the writing of this chapter.
66
The Governmental Affairs committee of the
AAMGA is a hugely important part of the
Association and its drive to serve its members. The Governmental Affairs Committee’s
interests are as wide-ranging in subject matter
as the businesses and individuals the Association’s members insure.
The Committee is charged with the responsibility to keep current on all federal, state, and
industry regulatory and legislative matters—in
and of itself a daunting task. The Committee is also responsible for providing news
and educational materials on legislative and
regulatory matters to the membership. In
its most visible role, the Committee and its
members interact with the Executive Director and Board of Directors to ensure that the
Association’s membership is represented at all
significant federal and industry meetings and
conferences.
AAMGA has been a preeminent voice for the
wholesale insurance industry for more than
a decade, as well as a recognized advocate
for surplus lines in general and the surplus
lines consumer in particular. As the Association’s website noted in 2011, “The AAMGA’s
influence in Congress and with state regulators has enabled members of the Association
to advance needed insurance reforms and to
then lobby their own elected representatives
and regulators on matters of importance to
the wholesale insurance industry.”
and industry successes. But the story actually
begins even before that.
An Anachronism for a New Beginning
The story of the AAMGA’s legislative and
regulatory efforts from 1991 to 2011 really
begins in the height of the Great Depression.
In 1933, Congress passed the Glass-Steagall
Act. Among other provisions, the GlassSteagall Act erected barriers between the
banking, securities, and insurance industries.
This preeminent position is evidenced by not
only the wide-ranging roles mentioned above,
but also the Association having become a
trusted source of information and testimony
before Congress, the National Association of
Insurance Commissioners, and the National
Council of Insurance Legislators.
The provisions of the Glass-Steagall Act were
actually rather simple. The Act prohibited
commercial banks, as well as their holding
companies and affiliates, from engaging in
investment banking activities. The Act also
prohibited investment banks from engaging
in activities normally associated with commercial banking. These included accepting
deposits and making business loans.
This wasn’t always the case. Over the past 20
years, the Government Affairs Committee has
strengthened its leadership role and influence by sheer dint of hard work, effort, and
the leadership of its volunteers and dedicated
staff. The story of the Committee’s last 20
years is a story of both legislative successes
The reason that these restrictions were put
in place was an economic theory: The mix of
67
investment and commercial banking activities
had led to both the Stock Market Crash of
1929 and a number of bank failures between
1929 and 1933. Subsequent research cast
doubt on this theory; nevertheless, it held
sway for many years.
insurance activity if done through a non-bank
subsidiary. The Act also eliminated any meaningful restrictions upon national banks, previously understood to be based upon population in the area being served, from engaging
in insurance activities.
Over the course of the years, there were
many attempts to modify or eliminate some
of the provisions of Glass-Steagall. The 1970s,
1980s, and early 1990s all saw incursions
from both sides on the other. From a business
point of view, it was likely Citicorp’s acquisition of the Travelers Group in 1998 that
represented the high water mark for mixing
between commercial and investment banking.
Of course, with the Travelers Group being
involved, there were insurance implications.
The GLBA also created a complex web of
new regulations with regard to the sharing of
consumer information. This, too, had a significant impact on the insurance industry. The
regulations began from the premise that all of
the privacy requirements were applicable to
“financial institutions,” which included insurance carriers. It also gave the Federal Trade
Commission authority to create significant
privacy rules for both consumers and customers.
For an excellent discussion of the history of
Glass-Steagall and the Gramm-Leach-Bliley
Act, see the article by Prof. Lawrence J.
White of New York University, entitled “The
Gramm-Leach-Bliley Act of 1999: A Bridge
Too Far? Or Not Far Enough?”
Shortly after the law’s passage, many consumers were flooded by documents entitled,
“Privacy Notice” or “Notice of Privacy Practices,” whereby companies would identify what
types of nonpublic personal information the
company gathered, disseminated, or otherwise
shared among its various affiliates. The basic
contours of the financial privacy requirements
of the Gramm-Leach-Bliley Act can be found
on the Federal Trade Commission’s Bureau
of Consumer Protection Business Center
website (http://business.ftc.gov/), and in the
document, “In Brief: The Financial Privacy
Requirements of the Gramm-Leach-Bliley
Act,” at http://business.ftc.gov/documents/
bus53-brief-financial-privacy-requirementsgramm-leach-bliley-act.
Tearing Down the Glass-Steagall Walls: The
Gramm-Leach-Bliley Act
In 1999, Congress passed a new law, known
as the Financial Services Modernization Act
of 1999. It was more commonly known by
the name of its three primary authors, Senator
Phil Gramm of Texas, Rep. Jim Leach of Iowa,
and Rep. Tom Bliley of Virginia. The GrammLeach-Bliley Act (hereafter, GLBA) removed
many of the walls created by Glass-Steagall.
AAMGA’s Legislative Matters Representative
From 1991 through the end of the decade,
AAMGA was ably represented in legislative
matters by Bill Marcoux of the firm then
known as LeBoeuf Lamb. Bill’s presence was
felt at many meetings of the National Association of Insurance Commissioners (NAIC). At
that time, the AAMGA committee responsible
for monitoring legislative matters was known
as the “Legislative and Regulatory Monitoring
Committee” (aptly enough). Former AAMGA
President Victor Giordano of Pennock Insurance became the key liaison to AAMGA and
a bedrock member representative of the
According to Prof. White, the GLBA reversed
the Glass-Steagall Act by repealing its key
prohibitions. The GLBA permitted traditional,
commercial banks to use their holding companies as financial services holding companies. The banks could then use other subsidiaries of the holding company as vehicles
for engaging in investment banking activities.
The new act also permitted national banks to
engage in a similar structure.
The significance of this for the insurance
industry was that GLBA expressly permitted bank holding companies to engage in an
68
general agency community’s interests.
subtle, but meaningful. The Model MGA Act
was an example of this, as the Association
was successful in adding drafting notes to the
Model Act. These drafting notes clarified that
even if one goes by the name of a “managing general agent,” one does not necessarily
fit the statutory definition. Providing this
clarity to the Act’s definition was a valuable
contribution, as well as being indicative of
the technical expertise AAMGA brought to
the issue. Without that clarification, members
could find themselves ensnared in regulations
at the state level when the NAIC’s intent was
quite the opposite.
Bill and Victor kept the AAMGA board and
its members abreast of ongoing legislative and regulatory issues. The Association
invited updates from both gentlemen at the
annual and mid-year meetings, sponsored
Governmental Affairs Breakfasts for reports
on issues, and continued the State Reporting
Representatives list of members in each state.
Even with these activities, AAMGA was still
relatively unknown in legislative and regulatory circles. For most of the 1990s, AAMGA
had been more reactionary in nature. That
would change with the NAIC’s Model Managing General Agents Act.
It was also during this time of the late 1990s
and early 2000s when AAMGA became much
more proactive in legislative and regulatory
issues. The Governmental Affairs Committee
was reenergized and the Board of Directors
was very supportive of the committee’s involvement and activity. In 2001, the AAMGA
Board hired Bernie Heinze and Accolade
Management as the executive management
company of AAMGA. Bernie, with his legal
and government background, immediately
became the face of AAMGA at industry meetings and helped lead AAMGA to become a
dominant player in the specialty property
-casualty insurance industry.
State Regulation of MGAs
Throughout the late 1990s, the Association
was substantially involved in monitoring the
progress of the Model Managing General
Agents Act through the NAIC. By mid-2002,
NAIC had finished its work with the Act and
sent it on to the various states for implementation.
The Association objected to the NAIC version
of the Act as it finally passed, largely on the
basis that the NAIC’s model did not correctly
identify and exempt most of the members
of the Association that were subject to the
regulation. It was important to clarify the
difference between the NAIC’s definition of
a “managing general agent” and the role of
the members of the AAMGA. The Model Act
defined a “managing general agent” as being,
“one who manages all or part of the insurance
business of any insurer” and “adjusts or pays
claims in excess of $10,000 per claim or negotiates reinsurance on behalf of the insurer.”
Most of the members of AAMGA don’t align
with this definition. (For an example of the
Model MGA Act as eventually passed by most
states, see http://www.in.gov/legislative/ic/
code/title27/ar1/ch33.html, from the author’s
home state of Indiana.)
Broker Disclosure Requirements—Defensive
Success
In 2004 and 2005, the Association was faced
with a difficult situation. The issue was that
of disclosure of compensation for people in
the insurance industry. Originally spurred by
then New York attorney general Eliot Spitzer,
states began attacking the compensation
models used by many insurers (both admitted and surplus lines) to compensate those on
the production side of the industry. The original allegations involved claims of a conflict
of interest because of compensation such as
contingent commission agreements, or profit
sharing contracts. The theory, as alleged, was
that producers were selecting carriers on the
basis of their own financial self-interest, and
not necessarily the interest of the insured.
Contributions of AAMGA’s Governmental Affairs
Committee
In many instances, the work of the Governmental Affairs Committee of AAMGA is
Various states’ attorneys general instituted
69
litigation in their states, and several admitted
carriers voluntarily eliminated (for a time) or
restricted contingent compensation. Case law
subsequently cast substantial doubt on the
necessity of taking such a drastic action. See,
for example, People ex rel. Cuomo v. Wells Fargo
Insurance Services, Inc., at http://www.eapdlaw.
com/files/upload/case-Cuomo_v_Wells_Fargo.pdf.
ment. Recognizing that Association members
are wholesale intermediaries and have neither
direct nor indirect contact with the buyer,
the Association proposed an addition to the
NAIC Model Act. The additional language
clarified that the compensation disclosure
requirements would not be applicable to anyone functioning as an intermediary between
the producer and the carrier. The AAMGA’s
website has an excellent document on this at
http://www.aamga.org/files/AAMGA_Position_on_Broker_Disclosure.pdf.
At the time, however, no one could predict
with any certainty how far the regulatory
community would go in attempting to control
compensation agreements or at least their disclosure. The NAIC began consideration of an
amendment to The Producer Licensing Model
Act. Specifically, the amendment would require disclosure of all forms of compensation
from the insurer.
The Governmental Affairs Committee and Executive Director Bernie Heinze showed a deft
touch in diffusing what could have been an
extraordinarily difficult public relations and
regulatory environment in which to operate.
TRIA
No discussion of the period from 1991 to
2011 in the insurance industry would be
complete without a discussion of the Terrorism Risk Insurance Act (TRIA), which
originally passed Congress on November 26,
2002. The Act was extended through 2007
and then was subsequently extended through
2014. Whether it will become a permanent
part of the legal landscape remains yet to be
seen. It was initially enacted to be a shortterm measure. Originally, Congress passed
TRIA as a “backstop” for the insurance
industry to allow time to develop terrorismrelated products and policies. The “backstop”
was in the form of a government-backed or
government-sponsored reinsurance program
to make insurance for terrorism less risky and
more affordable for companies to offer.
AAMGA’s Government Affairs Committee
Campaign
The Government Affairs Committee handled
the situation with aplomb. Working with the
Association’s other committees, the Government Affairs Committee waged an all-out
campaign on both a public relations and a
lobbying basis. The focus was to assist the
consuming public in understanding what
AAMGA membership did—the valuable role it
performs in procuring insurance—and how it
relates to insurance producers. It also had to
reassure the consuming public and the regulators that AAMGA members were exemplary
in their business activities.
AAMGA President Joe Hutelmyer of AmWins
Transportation issued a broad statement in
support of the Association’s membership, noting that it included a mandatory annual certification of compliance with the Association’s
strict code of ethics. Hutelmyer outlined the
future path of the Association: “We need to
continue facilitating this non-delegable responsibility so as to foster the confidence and
expectations of our customers and investors
in the insurance marketplace.”
Now, the Terrorism Risk Insurance Act of
2002 stands on its own. It is administered
through the Department of the Treasury. The
Treasury Department has put in place extensive supporting regulations of this law, which
include a claims procedures rule and a litigation management rule. These rules govern
how claims and litigation are processed in the
event of an “act of terrorism.” For the most
part, an “act of terrorism” is defined as an act
that is certified as such by the Secretary of
State and exceeds $100 million in property
Significantly, on the legislative front, the Association was instrumental in influencing the
NAIC with respect to the proposed amend-
70
71
and casualty losses. The figure was originally
set at a much lower threshold of $5 million.
Much more information about TRIA can be
found at www.treasury.gov/resource-center/
fin-mkts/pages/program.aspx.
Accordingly, the Association resisted attempts
to repeal the McCarran-Ferguson Act, the law
preserving the anti-trust exemption for the
insurance industry. These attempts to repeal
McCarran-Ferguson hit their high point of
intensity in 2007, as did the Association support for it. Led by the efforts of Association
Executive Director Bernie Heinze, the Association and its Governmental Affairs Committee joined with a chorus of other industry
associations in defeating the attempt to repeal
the industry’s anti-trust exemption.
The AAMGA was very supportive of TRIA’s
federal backstop provisions on behalf of
insurance buyers. However, the Governmental Affairs committee was and is vigilant in
watching how the legislation applies to its
members to ensure the most efficient process
of providing coverage.
Striving toward Simplicity, Fairness, and
Acceptable State-Federal Relations
As the AAMGA reanimated its Governmental
Affairs Committee in the 2000s, several key
principles became guideposts for determining
whether to support or oppose legislative initiatives and how to deploy resources related
to them. These core concepts guided the
heavily involved Committee through many
complexities, especially those coming from
Congress.
Support for the Non-Admitted and Reinsurance
Reform Act
Yet perhaps the peak legislative achievement
of the Association’s “defense” of state-based
regulation was in its instrumental support for
passage of the Nonadmitted and Reinsurance
Reform Act (NRRA) in 2010. The Association had long held to the view that insureds
and the marketplace overall are best served
by having an “easily understood and uniform
procedure for remitting surplus lines premium taxes on multi-state risks,” and had long
called for states to implement such a system.
The first of these principles was maintaining the integrity of the surplus lines market
by resisting regulation of surplus lines rates
and forms. The Association understood that
the surplus lines market provided a valuable
service to insureds that are unable to find
their insurance needs met in the standard
marketplace. Those insureds are best served
by a surplus lines market that has flexibility,
capacity, and creative underwriting available
to it. The Association resisted any incursion
into that flexibility and innovation.
The Association’s position, one of fundamental fairness, transparency, and ease of
application, was borne out of the importance
of the surplus lines industry itself. As Bernie
Heinze communicated to the NAIC in 2010,
“over $30 billion in premiums are transacted
within the excess and surplus lines insurance industry each year. We can ill afford to
diminish the importance of this objective with
anything less than a comprehensive solution
that will adequately serve all constituencies of
the marketplace.”
In a similar vein, the Association was committed to a regulatory environment that fostered
an appreciation for the valuable contributions of the surplus lines market. This meant
favoring state regulation over comprehensive
federal regulation, within generally
recognized limits. The Association supported
reasonable degrees of uniformity and
reciprocity between states, especially in
areas such as licensing of producers, but
remained committed to a state-based
regulatory system.
NRRA was adopted as part of the comprehensive response to the financial crisis of 2008
and 2009, and was a part of the law known
as the Dodd-Frank Act. The basic provisions
of the law were powerful in their simplicity.
First, the NRRA required that the surplus
lines premium tax be paid to one state and
one state only: the insured’s “home state” or
“principal place of business.” Second, states
other than this “home state” were prohibited
72
from imposing taxes upon or regulating the
insurance transaction. The law was, in essence, a “hands-off” from at least a taxing and
licensing point of view.
comfc/slimpact.pdf.
The AAMGA’s Current Legislation and
Regulation Influence
At this writing, the NRRA and its implementation is continuing to undergo scrutiny as
there are many unanswered questions regarding taxation issues.
The statute also created a framework in which
states could develop uniform requirements,
procedures, and related forms for insurers to
be eligible for export to another state. Again
recognizing state authority in this area, the
federal statute did not create the standards on
its own. Instead, the statute created only a default in the event that states did not develop
those standards. A surplus lines carrier would
be eligible for export on a national basis if it
maintained at least $15 million in capital and
surplus, or met the higher requirements of
the home jurisdiction, and was admitted in
one state.
The vital work of the AAMGA’s Governmental
Affairs Committee has been reenergized and
expanded in the last 20 years. But it does not
just involve the landmark federal issues noted
above. The Committee’s work also includes
multiple issues on the state level as it tracks
developments on insurance policy forms and
coverage, licensure issues, and a myriad of
other concerns.
The breadth and depth of the AAMGA
and the Committee’s work can be seen in
the extraordinary collection of talent on
the Committee, past and present. Presently
chaired by Josh Korver of The Insurance
Center, An Alaskan Corp., and vice-chaired
by Bill Malone of Continental/Marmorstein
& Malone, the Committee has experienced
industry leaders from MGAs throughout the
United States, Lloyd’s representatives, company participants,
and lawyers specializing in surplus lines
law. This leadership
has included but is
certainly not limited to past AAMGA
Presidents James A.
Roe, CPCU, Arlington/Roe & Co; Victor Giordano, CIW,
Pennock Insurance;
Ronnie C. Moore,
CIW, Southern
General Agency;
Tom Albrecht, TAG
Underwriters; and
past committee Chair
Kurt Bingaman,
CPCU, Russell Bond
Company.
Perhaps even more importantly, the adoption of the NRRA represented the fulfillment
of the AAMGA position on the interplay
between state and federal regulation. The
passage of this law on a federal level created
an environment in which the states could determine how to share premium taxes on risks
with locations in multiple jurisdictions. The
states could do so, however, while retaining
their own authority over transactions within
their jurisdiction.
Support for Slimpact
Similarly, the Association supported the adoption of the Surplus Lines Insurance MultiState Compliance Compact, commonly known
as “Slimpact,” as a form of agreement for
states to adopt after the passage of NRRA.
Slimpact was expressly designed to implement the provisions of the Nonadmitted and
Reinsurance Reform Act. It created a commission for the states that entered into the
agreement. The commission was given the
authority to adopt rules for how to allocate
tax proceeds which had previously been collected on a piecemeal basis by various states.
The agreement also created a clearinghouse
for transaction data and tax payment. More
on the provisions of Slimpact can be found
at www.ncsl.org/documents/standcomm/sc-
73
2003 Board; Bernie Heinze, Wes Duesenberg, Scott Anderson, Baron Garcia, Francis Johnson,
President Rob Giles, Preston Gough,Ronnie Moore, Bobby Owens, Roger Lott, Joe Hutelmyer
President Joe’s Family: Elizabeth, Kevin, Catherine,
Joe and Lynn Hutelmyer
Randi Scobie, Teresa Rogan and Carol Stamm
Baron Garcia and daughter Jennifer
Betty Moore, Marge Powell, Jami Levy
Donna and Bob Schacher, Barbara and Tom Rogan
Ladies Tea Party - Carrie Hayden, Barbara Gough, OJ
Mavon
Cindy LoVullo, Randy Scobie, Jo Duesenberg, Barbara Rogan
and Sheila Waller
Teri and Euclid Black
UFO Spouses, Nancy Smith, Jennifer Clark, Annie Miller, Stephanie Scobie-Niebergall
74
Ed Calabrese and Lou Mastos
Bob Distel and Greg Murrey
Zonya and Matt Letson
President Mark and First Lady Jan Rothert
President Wayne Forest and wife Linda
Sue and Paul Davis
Preston Gough
Mamie and Scott Anderson
Mostly white coats! Frank Mastowski, Wes Duesenberg, Rob Giles, Tom Albrecht,
Curtis Anderson, Scott Anderson, Euclid Black, Francis Johnson, Ed Levy, Mark Rothert
Wes Duesenberg and RC Chaffin
Liz McKee and Director Gary Peterson
Anne Marie and Jim Mastowski
Claudia Carnevale, Scott and Mamie Anderson, Helen Bjornson
Corinne Jones
Randi and Peter Scobie
Kelly and Mark Maucare
Mac Wesson and wife Jean-Marie
Matt Letson and Tripp Duesenberg
R.C. Chaffin
Pam and Tom Mulligan
75
Tom Albrecht and Bob Karr
Len LoVullo, Matt Letson, David Parker, Russ Rado
Rosemary and Curtis Anderson
C hapter
6
Revolutionaries or
Renegades?
A Brief History of the Under Forty
Organization (UFO)
By Kerry Dillard
President
Bloss & Dillard, Inc.
The UFO chapter is dedicated
to Robbie Johnson who lost
his battle with cancer in 2009.
Blair and Robbie Johnson
76
The need for a sub-group of the AAMGA that
would be of interest to the younger members
had been discussed for years. In 1991, it was
finally created. A group of enthusiastic men
and women held their first organizational
meeting at the Annual AAMGA Meeting at
The Phoenician in Scottsdale, Arizona. The
original concept was to provide camaraderie,
a forum for sharing ideas and a support group
for those members if a special need arose.
4. Campaign for more recognition and
members participation.
5. Elect a UFO Executive Committee to serve on the AAMGA Legislative
Committee.
6. Involve UFO with Lloyd’s Under 30’s Group.
7. Include AAMGA University Classes at UFO Annual Meeting.
The initial leadership group became a perfect
example of the UFO vision: These young
people are now deeply involved in our
business as MGA owners, officers of
insurance companies, and underwriting and brokerage leaders around the
world. In addition, as hoped, many
UFO members became, and continue
to become, active in committee and
Board of Directors positions of the
Association. Two of them, Francis
Johnson of Johnson & Johnson, and
Scott Anderson of Concorde General
Agency, have served as presidents of
the AAMGA. Further, the impact made
by the UFO with the AAMGA University continues to strengthen each year.
Tom Rogan, the 62nd President of the
AAMGA, took the idea to the Board of Directors and received unanimous
support and authority to form the
sub-group that was later branded
“The Under Forty Organization,”
or “UFO” for short. Tom worked
with Sandy Jackson of Agents
Insurance Markets (Virginia), Jim
Welch of Welch & Company (California), Kerry Dillard of Bloss &
Dillard (West Virginia), and John
Love of W.E. Love and Associates
(North Carolina) to help take it
from an idea to a reality.
Vision and Leadership
Under the leadership of its first
chair Sandy Jackson, the UFO quickly scheduled a meeting in Kansas City in November
1991. The group conducted a seminar about
“Agency Perpetuation” and held a business
meeting to discuss the objectives of the UFO.
The following decisions were made at this
first business meeting.
Meetings and Educational Offerings
With its relatively small size, the UFO has
the luxury of holding a meeting in most any
location and has taken full advantage of that.
It has also been credited with helping create
many educational classes that continue to be
taught on a regular basis. The following chart
provides a chronological listing of past chairs,
their companies, meeting sites and educational offerings.
• The group will elect a Chair and three
Vice-Chairpersons (one from each zone). The
Chairperson will remain on the Executive
Committee as “Immediate Past Chairperson”
for 1 year after his or her term.
• Associate Members will be invited to be
involved on the same basis as they are in the
AAMGA.
•
1. 2. 3. The following goals were set:
Establish bylaws if seen to be necessary.
Involve Associate Members.
Build funding and develop a budget through dues and fundraising.
77
Year
Chairperson
Company
Meeting Location
Educational Offering
1999 – 00
David Parker
Hanover Excess & Surplus, Inc.
New Orleans, LA
Successful Leadership
1991 – 92
Sandy Jackson
Agents Ins. Markets
Kansas City, MO
Agency Perpetuation
2000 – 01
Francis Johnson
Johnson & Johnson, Inc.
Jackson Hole, WY
Organizational Communication
1992 – 93
John Love
W.E. Love & Assoc.
Charleston, SC
State vs. Federal Regulation
2001 – 02
Kent Libby
Southern Ins. Services
Vancouver, BC
Cancelled due to 9/11
1993 – 94
Kerry Dillard
Bloss & Dillard, Inc.
Scottsdale, AZ
Disaster Recovery
2002 – 03
Greg Gold
MacNeill Group, Inc.
Wrightsville Beach, NC
Future Leadership Forum
1994 – 95
Paul LoVullo
LoVullo Associates, Inc.
Chicago, IL
Duty to Defend & Fraud
2003 – 04
Jim Kranzberg
SKANCO
Napa, CA
Underwriting Quality
1995 – 96
Scott Anderson
Concorde Gen. Agency
Palm Beach, FL
World Insurance Market
2004 – 05
Harry Johnson
Johnson & Johnson, Inc.
Stowe, VT
Ins. Management Exercise
1996 – 97
Phil Mavon
G.A. Mavon & Co.
Seattle, WA
Market Cycles
2005 – 06
Seth Johnson
Atlantic Specialty Lines
Lake Tahoe, NV
Program Development
1997 – 98
Robbie Johnson
Johnson & Johnson, Inc.
Portland, ME
Reinsurance
2006 – 08*
Bryan Clark
The Gorst Co., Inc.
Boston, MA
Employment Relationships
1998 – 99
Matt Smith
The Southern General Agency of Tennessee
Carmel, CA
Contact with Clients
2008 – 09
Matt Letson
Hanover Excess & Surplus, Inc.
Whistler, BC
Employment Practices
78
association meetings throughout the year. The
second Chair of the UFO, John Love, perhaps
could have benefitted from this Leadership
Track, if his memories of serving as UFO
chair are any indication: “Effective education
with a killer hangover is a delicate balance of
art.”
Pub-nership with the Under 30s Group of
Lloyd’s
The Under Forty Organization started leaving the cozy confines of the United States
in 2003 and headed to London for its first
International Seminar. Since then they have
returned twice. The trips to London helped
accomplish one of the original goals of the
group: to establish a partnership with the
Under 30’s Group of Lloyd’s. The latest group
that went to London continued what is now
a tradition of socializing with the Under 30’s
Group at a local pub. The apple does not fall
far from the tree, as they say! Meetings have
also been held in Bermuda and Munich.
2006 Teambuilding Activity
2009 – 10
Tripp Duesenberg
Southern Ins. Underwriters, Inc.
Williamsburg, VA
UFO Leadership Track
2010 – 11
Colleen Giles-Harris**
Scobie Group
Austin, TX
UFO Leadership Track
**Title of UFO “Chair” was changed to
“President.”
The People and the Laughs: Past Chairs Share
Their Memories
Past UFO chairs were asked a few questions
about their time in the UFO, and the AAMGA
in general, including their memories, challenges they faced and how the organizations
contributed to their development. In the
following sampling of their answers, common
themes clearly emerge.
2011 – 12
TC Anderson
Risk Placement Services, Inc.
Park City, UT
To Be Determined
Sandy Jackson (Agents Insurance Markets)
recalled how the group of guys came together
to try to get something new started. “We were
all SOBs back then, and the UFO gave us
*Officer Term edited per By-Law approval at
2007 UFO Annual Meeting.
Training the Future Leaders
In 2009, the UFO/AAMGA partnered with
Georgia State University to develop a fourpart series entitled, “Leading the Future.” The
program includes four key courses supplemented with webinars. These courses were
designed to be part of the UFO Annual Meeting in the Fall, but each class is self-contained
so that students can take the courses in any
order. These classes continue to be offered at
the UFO Annual Meeting, as well as at other
2006 Teambuilding Activity
79
somewhere to share ideas and discuss the
stoic ways of our fathers.” Sandy learned from
his short time in the UFO that the AAMGA is
committed to the youth in the organization.
At the first UFO meeting, Sandy, who goes to
bed quite early, also picked up his nickname:
Grandpa.
experience leadership while still in his 20s,
which was highly beneficial. He learned to
lead a meeting, balance the interests of all in
attendance, and learn from everyone at the
meeting. New ideas were always being shared
and offered.
Francis Johnson (Johnson & Johnson)
remarked that the UFO connected him to
all his peers, and the connections allowed
him to get incredible feedback on products,
ideas, systems, etc., all from a new leadership
perspective. Fran feels the UFO is an integral
part of the AAMGA and should be for a long
time to come. “We always say there are no
younger people coming into our industry,”
he commented, “and this is an opportunity to
bring them in!”
Paul LoVullo (LoVullo Associates) vividly remembers John Love “captivating” the group,
with his Frank Sinatra-like voice while “cruise
ship singing” in Chicago back in 1994, but
also cherishes the memory of meeting all the
great UFO and AAMGA members that his father always talked about. Paul said that most
of his friends and mentors in the industry
were derived from his involvement with the
AAMGA and UFO.
Scott Anderson (Concorde General Agency)
credits his time in the UFO and as Chair as
profoundly impacting who he is today. While
serving as Vice Chair, Chair, and immediate Past Chair, he gained the confidence to
speak up and be heard in the organization—a
prime benefit of belonging. The relationships
fostered then continue to bring value and
opportunities to him and Mamie, his wife, as
well as their business. Scott fondly recalled
Mamie and Blair Johnson serving “duck farts,”
an innovative and perhaps poorly labeled
drink, and then being served an $800 bar bill
that he and Robbie Johnson split. That was a
significant event in his time in the UFO.
Greg Gold’s (McNeill Group) fondest memory of the UFO is the welcome that he and his
wife Amy received from the UFO Chair and
the membership in attendance at their first
meeting in Portland, Maine. Greg’s greatest
challenge was the sudden cancellation and
rescheduling of the September 2001 Annual
Meeting, just days after the attacks on New
York City and the Pentagon, and the crash of
the United Airlines flight 93 in Pennsylvania.
With the support of the AAMGA Board and
staff, not only were they able to recreate the
meeting in Vancouver in 2002, but they continued the UFO’s growth and energy in 2003.
Jim Kranzberg (SKANKO) remembered the
challenge of putting on a meeting after the
AAMGA lost the administrator that coordinated past UFO meetings. However, in the
end it all came together with a fantastic event
in Napa, California, with a record attendance.
Jim is thankful for the contacts and friendships made during his 13 years involved in
the UFO—it truly gave him a sense of belonging to a much larger profession. Jim’s legacy
may be a tradition he unintentionally started
but which lasted a few years. He presented
the outgoing, 40-year-old chair, Greg Gold,
with a tie embellished with images of Viagra
tablets. It was intended to be a joke just for
Greg, but it was passed to senior UFO
members for several years.
Phil Mavon (G.A. Mavon & Co.) said his
greatest benefit has been the lifelong friendships he made. He also commented that it
was remarkable to see how different wholesale businesses could be around the country.
With introspection inspired by the questions
posed, Phil shared a parting comment for his
fellow UFO members: “We are getting old.”
Matt Smith’s (The Southern General Agency
of Tennessee) memories are of the quality people and how much he and his wife,
Nancy, looked forward to spending time with
them each year. He noted, however, that his
liver needed about 2 weeks of recuperation
afterwards. As chair, Matt said he was able to
80
The UFO and the Make-A-Wish Foundation
In the late 2000s, the UFO Board started
to hold fundraising philanthropic events at
AAMGA meetings in order to raise money for
several different national charities. In 2010,
the UFO Board, led by President Colleen
Giles-Harris, decided to pick one national
charity as the official charity of the UFO in
order to focus fundraising efforts. After many
wonderful suggestions and a lot of debate,
the UFO Board selected the Make-A-Wish
Foundation as their official charity. The MakeA-Wish Foundation helps bring hope, strength
and joy to children with life-threatening
medical conditions by granting them wishes,
such as meeting a favorite athlete or going on
a family vacation to Disney World.
Seth Johnson’s (Atlantic Specialty Lines)
reflection on his involvement with the UFO
came down to networking, leadership, and
education. The UFO embraced him and
continues to embrace new faces. Seth sees the
UFO as an investment for MGAs and their
future. By increasing industry knowledge
and contacts, he feels that the experience is
invaluable.
Matt Letson (Hanover Excess & Surplus) said
his biggest challenge was getting the UFO
quarterly newsletter (UFO Visions) off the
ground, as well as planning and executing the
successful International Seminar in Munich,
Germany. Matt feels that the most important
benefit he gained from the UFO was the
friendships, the networking and the educational opportunities.
The UFO Board launched its philanthropic
efforts for the Make-A-Wish Foundation at
the UFO Annual Meeting in Austin, Texas,
in September 2010. The launch included a
presentation by a representative from the
Make-A-Wish Foundation of Central & South
Texas, which is the charity’s local chapter that
supports the Austin area. The UFO Board
then introduced the Make-A-Wish Foundation
as their official charity to the AAMGA at the
AAMGA Annual Meeting in Orlando, Florida,
in May 2011. Between those two events, the
UFO was able to raise over $9,000 for the
Make-A-Wish Foundation their first year. It
takes just $5,000 to grant one child’s wish, so
it was a wonderful accomplishment for the
UFO to raise enough money to help grant
two full wishes.
Colleen Giles-Harris (Scobie Group) is most
proud of the selection of the Make-A-Wish
Foundation as the official charity of the
UFO. She said her term as President (the
title changed when Colleen assumed the
position) gave her confidence as a business
professional and leader. Colleen feels that the
young professionals in the organizations need
to get involved. She would like others to gain
the benefits she has gained—a great deal of
knowledge about insurance and leadership,
and lifelong friends and business colleagues.
The reflections of this chapter’s author (Kerry
Dillard of Bloss & Dillard) echo what many
of the other past chairpersons have said.
“Many of my best friends have come from
my participation in the UFO and AAMGA. I
have used those relationships to help me and
my business grow by tapping into the vast
knowledge that exists within the UFO fraternity. For example, the interesting presentation
Tom Rogan gave about Hurricane Andrew
during the Disaster Recovery educational
session was eclipsed only by the fun some of
the group had at the Rusty Spur in Old Town
Scottsdale: Having a jam session playing
washboards, spoons and moonshine jugs in a
makeshift band.”
Mission Accomplished
The Under Forty Organization began in 1991
with the hopes of becoming accepted by the
members of the AAMGA. We wanted to become better educated and develop into successful business leaders, while having some
fun along the way. Twenty years later, I think
it’s safe to say that it was all accomplished
beyond the original group’s imagination!
81
Mark Maucere, Tony Glotzbach, Kelly Maucere,
Martin Rofley, Oliver Pidgeon
Colleen Giles- Harris, Shawn Chaffin, Tripp
Duesenberg, Jennifer Larsen, Matt Letson
Betty and Ronnie Moore
Jonathan Neibergall, Becky Lantinga,
Ken Distel, Adam Rothert, Tate Tooley
Golfers Brian Waller, Curtis Anderson, Tom Perch, Troy Metts
Boca Raton, FL
Team Tripp Duesenberg
Ty and Baron Garcia
2008 UFO Teambuilding, Whistler, Canada
Team Colleen Giles-Harris, Jennifer Larson-Jenson,
Emily Rothert, Bryan Clark
Jeanne Rondeau
Jake Kouns
Mary and Ray Spies
UFO goes to Boston Fenway Park
82
Amy and Ken Distel
2008 Teambuilding; Tim Chaix, Mark Usselman, Clint Nokes, Ken Distel, Tate Tooley, Adam Rothert
Coryn and Martin Thalmann
Kevin Tromer, Chuck Conway, Scott Anderson, talking Golf
2008 UFO Teambuilding, Whistler, Canada
Clint Nokes, Allison Grant, Tim Chaix Team
Blair and Robbie Johnson
2008 Teambuilding - The Blind Leading the Blind!
More Teambuilding in Whistler
Ron Grove, Suzanne Chaffin, Barbara Rogan, Victoria Tiepelman,
Timberlee Grove, Phyllis Latham, and Jean Pondrom
Donna and Bob Schacher
Randi and Peter Scobie with Colleen Giles-Harris
2009 Board, R.C. Chaffin, Curtis Anderson, Mark Rothert, Rob Giles, Corinne Jones, Bobby Owens,
President Euclid Black, Tony Glozback, Tom Albrecht, Bob Shacher
83
2008 Whistler Teambuilding Contest Winners
Chad and Colleen Harris
Samantha and Samantha Anderson
C hapter
7
“So Einstein,
What’s Next?”
Technology and the AAMGA
By Chris Behymer, CPCU, ASLI
Director of Business Development, Binding
Markel Wholesale
By Euclid Black
Chairman
Black/White & Associates
84
While the insurance industry has experienced
a great deal of change over the past 20 years,
even the most casual observer would consider
it positively pedestrian when compared to
what has happened in the world of technology. We have gone from kilobytes, megabytes,
legacy systems, green screens, and batch processing to gigabytes, terabytes, servers located
in a “Cloud,” full-blown color graphics and
hand-held, real-time computing in but a blink
of an eye. Rooms full of mainframe computers
have been replaced with a device the size of a
remote for the garage door opener!
Before the Beginning
The early 1980s saw the arrival of personal
computers, and it was apparent that members
needed a forum in which to gather information about what was possible and to share
experiences about hardware, software, and
specialized vendors. Very little of the available
literature was on point about surplus lines
automation, so the leadership of AAMGA
decided to facilitate discussions among members, which ultimately led to the creation of
a committee on the topic of computers and
agency automation.
Information, and intelligent use of that
information, has driven the need for more
and more technology to help insurers and
members of the distribution channel make
better business decisions. Making the systems
work involves much more than plugging the
computer into an outlet—and that’s where the
AAMGA Automation Committee enters the
picture. It’s hard to know exactly where to
start, but after many discussions with current
and previous members of the committee, as
well as a number of AAMGA Past Presidents,
the way to piece the puzzle together is to start
before 1991.
Fred Steves, CIW of Myron F. Steves & Company, CMGA, recalled that in the mid-1980s,
the first automation meeting consisted of a
gathering of members with the publishers of
an early agency automation publication titled
The Agency Automation Reporter (TAAR).
This publication did a good job of providing
unbiased evaluations of the then evolving
retail agency systems. While these systems
were crude by today’s standards, they were a
vast improvement on what had been available
in the past.
85
With the success of the first meeting, a more
formal committee was formed to continue
discussions on this emerging topic. Over the
next few years, additional sessions were held
under the sponsorship of the AAMGA. Dallas was selected as the host for most of the
early meetings due to the city’s convenient
location and the fact that it was home of the
Infomart. The Infomart served as an automation showcase featuring a number of leading
computer hardware and software providers.
These organizations had centrally located
offices and each office contained a series of
demonstration rooms designed to showcase
their wares. It was extremely easy to explore
multiple systems just by walking from room
to room. At this point in the development of
office automation, it was very helpful to see
what was available and to be able to talk to
specialists. The alternative was going to a local computer store and taking your chances!
in helping them determine where to dedicate
their resources based on the needs of their
clients. Carriers benefited as well because
they were able to see where their customers were going in the future and plan their
system changes accordingly.
Black Box
As early as 1992, the Committee reported
to the AAMGA Board that its members had
determined that it was important to establish
“Data Standards” to facilitate exchanging data
between agents and carriers. The committee
also offered to take a leadership role in setting these standards. This effort was quickly
named “Black Box” and served as the major
project for the committee for most of the
1990s.
Once the project was initiated, the committee
needed to expand its membership to include
additional participants from member insurance companies. Not only did this add a great
deal of technical expertise to the committee, it
also provided some assurances that the companies would be more agreeable to accepting
the final product when it was finalized since
they were actively involved in the selection of
the necessary standards.
The Committee Evolves
By the late 1980s, attendance at the AAMGA
annual Automation Conference had grown
to 50 members. Participants included a small
group of early system vendors and a steadily
growing presence of company Information
Technology (IT) managers and professionals. The highlight of the conferences was the
various roundtable discussions about what
individual members, carriers, and vendors
were doing or planning to do. This process
generated a great deal of information sharing
about what was working for individual firms
and, more importantly, what wasn’t working.
Another popular component of the meeting was called The Closing Town Hall. At
the conclusion of the session, the program
was evaluated and critiqued, and attendees
volunteered to work on projects and were
given the task of reporting on their results
at the next meeting. This had many benefits,
including dividing the tasks among participants. It served also as an encouragement for
additional members to get involved.
For those trying to take advantage of the
fruits of technology, this sharing of knowledge was critical. It also assisted the vendors
The first element of the project was coming
to an agreement on which of the standards to
use. Ultimately it was agreed that the “AL3”
standard published by ACORD would be the
one adopted. Even though AL3 was designed
for mainframes and had limited flexibility, it
would work for the proof of concept project.
Committee members were selected to take
part on both the company and agency side
of the proof of concept. Leading participants
were Equity General Agency of Lexington,
Kentucky, Scottsdale Insurance Company,
and Northland Insurance Company. While
the progress made during this time frame was
impressive, unfortunately the speed of change
was so great it was determined that the black
box outcomes were of limited use. While it
might have been easy to simply throw in the
towel, the committee moved on to embrace
the next step in the evolution of technology.
86
Changes Accelerate: 1995 to 1999
As technology evolved, it became clear that
one of the challenges for the Surplus Lines
industry was the variation in systems used
not only by Managing General Agents, but
by carriers as well. As there was no one
“typical” system in use, issues related to data
transfer, policy issuance, billing, and assorted
backroom functions were left to organizations to sort out on their own. Standard lines
companies were able to use automation much
more effectively due to the fact that they were
dealing with more routine situations. It was
very difficult to convince MGA X to change
its internal systems to match those used by
MGA Y!
tiple locations could not be sustained with
cabinets and shelves full of files. As a result,
most organizations transitioned to a paperless environment and began scanning, and
backscanning, new and old submissions and
files, and then distributing them electronically to underwriting, claims, accounting, and
processing with the click of a button. Taking
paper away from the more seasoned underwriters and producers was a challenge. But
after a period of adjustment, people adapted
and it became clear that the new method
made the process of distributing information
and managing workloads much easier.
In March 1999, AAMGA and NAPSLO
(National Association of Professional Surplus
Lines Offices) conducted a joint Automation Conference in San Diego. Over 250
Surplus Lines professionals from throughout
the industry attended a series of meetings,
workshops, and demonstrations to view the
latest innovations demonstrating how computers could be used to improve the process
of marketing and selling insurance. Of special
interest was a session that summarized the
results of the NAPSLO-sponsored KPMG
study regarding the use of technology by
the E&S distribution system. This served as
somewhat of a “wake up call” as it was clear
that our business was falling behind other
financial services organizations, and that our
segment of the industry had to ramp up its
efforts (and spending) to remain competitive
in the marketplace.
In spite of these differences, good progress
was made, and some notable events happened during this 5-year period.
• Microsoft released a series of new (at the
time) and more stable Windows operating
system which led to a modicum of standardization within the industry.
• The cost of personal computers began
to drop to the point where it was feasible to
put a PC on most, if not all, desks within an
agency or a company.
• During the 1990s, Internet activity
increased at the astronomical rate of 100
percent per year. By the end of the decade, 45
percent of the information worldwide flowed
through the Internet.
• Early Internet connections were accomplished through dial-up modems, and these
now antiquated devices worked well for
simple emails and Word documents. However,
the need for speed increased, and nearly all
dial-up systems were eventually replaced by
much faster and more sophisticated T-1 lines
and cable company broadband applications.
This allowed information and people to be located any place without the physical location
limitations of the past.
• During this time, agents and carriers determined that paper files were, in effect, choking the insurance process. These sometime
bulky bundles of policies, correspondence,
and reports could only be one place at a time.
The new reality of multiple offices in mul-
In addition, the much publicized Year 2000
situation, otherwise known as Y2K, elevated
computer science to front-page news. Old
mainframe computers were programmed to
recognize only the last two numbers in the
date field, so it was feared that our economy,
and the world in general, would basically shut
down. Some of you might remember that on
December 31, 1999, all airline flights were
suspended (save one with the United States
Secretary of Transportation on board) due
to the fear that planes would fall out of the
air at the stroke of midnight. Y2K proved to
be a non-event other than the cost, estimated
87
as high as $140 billion in the United States,
to prepare for the changing of the calendar.
More importantly, it sent a signal to all businesses, insurance included, that effective use
of automation was the key to future success.
The AAMGA continued to advance the cause
of intelligent use of data and information with
its annual Automation Conferences. Sessions
in Las Vegas, Nashville, and Atlanta drew
increasing crowds and became one of the
Association’s signature events. Over time, the
composition of the attendees changed as well.
Initially, participants tended to be from carriers’ and agencies’ IT departments, with a few
principals thrown in for good measure. As
the scope and variety of information available
increased, so did the number of business unit
managers, underwriters, and marketing personnel. Everyone was interested in viewing
the latest systems that were available, and
all of us were looking for that “magic
bullet” to streamline processes,
cut expenses, and generate additional revenue.
A Decade of Innovation: 2000 to 2010
In late 1999, a little known Canadian company introduced a two-way pager that caught
the attention of attendees at a Munich,
Germany innovation conference. Several
years later, this company, called Research in
Motion (RIM), introduced the BlackBerry, a
hand-held device capable of surfing the web,
making phone calls, and, more importantly,
providing access to emails from just about
anywhere in the world. This little piece of
hardware made it possible for producers to
contact their underwriters, and vice versa,
anytime of the day or night. The first salvo of
the new millennium signaled an even greater
reliance on technology. Little did we know
then what the landscape would look like only
10 years later.
On a related note, the
AAMGA saw an increase
in the number of IT
professionals enrolled
at its Basic Schools,
University Weekend
programs in Scottsdale, and stand-alone
classes held throughout the country. This
was a sign that the IT
segment of our business was interested in
learning more about why
they were being asked to
program the computer to
do certain things, and why
it was important. While seemingly a minor shift in the profile of
participants, it was encouraging to see
systems people sitting with producers and
underwriters with the goal of trying to resolve
common problems.
Technology Becomes the Answer
While technology was important, there were
some fundamental changes occurring in the
insurance business that required the attention of senior leaders for both companies and
agencies. There were signs that the 12-year
soft market might be coming to a close as
surplus dipped, written premium continued
an even deeper slide, and accident year loss
ratios increased. Punctuated by the terrorist
attacks of September 11, 2001, the insurance
ship began to right itself as standard carriers
began to shed lines of unprofitable business.
For the E&S community, this was a classic
case of good news/bad news. The good news
was that submissions, premiums, and revenues all increased. The bad news was that
the volume of business was so great that it
created a host of service problems throughout
the distribution system, many of which were
tied to the older, slower legacy systems that
were still in place. If nothing else, this market
shift provided further proof that a company’s
or an agency’s success was closely intertwined
with embracing new technologies.
As the decade progressed, a number of other
changes occurred as carriers and agencies
rushed to join the technical revolution.
Company underwriting manuals, long a staple
of the industry, were replaced with online
guides to speed up the process of providing
current information to customers. Shortly
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Technology Streamlines AAMGA’s Day-to-Day
Business
While the AAMGA Automation Committee
served as the focal point for technologyrelated issues, it was clear that other functional areas of AAMGA were incorporating
enhanced IT capabilities in their operations as
well. The AAMGA University adopted online
registration for its courses and now offers
a host of online insurance, state continuing
education (CE), and business skills programs
for its members. Newsletters began to be
distributed electronically and much of the
important information about our business is
communicated in an instant via email blasts
and posting on the website (www.aamga.
org). The Governmental Affairs, Marketing,
Membership, Human Resources, and Operations Committees recognized the value that
automation could provide in terms of getting
their messages delivered quickly and at a
relatively low cost. The AAMGA committee
with the most upside in terms of embracing
automation is the Under Forty Organization (UFO). This group of future leaders has
grown up, as someone joked, “with a mouse
in their hand,” and is in the best position by
far to drive the use of technology in new and
innovative ways.
thereafter, companies ramped up their online
rating engines to allow MGAs to rate, quote,
and bind many of the classes of business
that did not require intensive underwriting
involvement. Not only did this save time and
money, it also freed up company underwriting resources to focus their efforts on more
complicated submissions. To help manage
insurance company initiatives, many companies formed automation councils to gather
valuable feedback on how their efforts were
received in the marketplace. This intelligence, along with the ongoing input from
the AAMGA Automation Committee, allowed
insurance providers to select projects that
would create the highest return on
their investments.
Throughout the 2000s, MGA
members used technology
to expand their reach to
other areas of their home
states and even other
parts of the country.
With digitized files
and heavy reliance on
online underwriting
and pricing manuals, it was no longer
necessary for the entire staff to be in one
central office. A major
driver of this process
was the need to hire
talented individuals regardless of where they were
located. It is not uncommon
to have an agency underwriter
or broker working out of his or
her home and conducting business in
multiple states without the need to drive
long distances to an office. With advances in
phone switches and high-speed internet access, most people never knew that the person
they were talking to was half a continent
away. While the initial home office set up
might cost a few dollars, the lower overhead
and increased level of employee satisfaction
(due in part to reduced commute times) more
than pays for itself in a very short period of
time.
Text Messaging and Social Networking
In 2005, a phenomenon of epic proportions
was brewing in the technology arena. Text
messaging, which actually originated back in
the 1990s, became the communications mode
of choice for many cell phone users. By the
end of 2009, 286 million US subscribers sent
an average of 152.7 billion text messages a
month! Furthermore, it is estimated that 72
percent of adult cell phone users use texting
as a means of communication.
Tied in with the explosion of text messaging is the growth of social media. While no
standard definition of social media exists, it is
generally described as a form of sharing usergenerated content in an interactive format via
computers, cell phones, or other electronic
communications devices. As a result, new
words were added to our vernacular over the
past 10 years, including Facebook, Twitter,
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YouTube, Linkedin, and many others. Twitter
processes 40 million tweets a day, Facebook
has over 750 million users worldwide, and in
the time it takes you to read this page, over
100 hours of video will have been uploaded
to YouTube, according to research conducted
at the end of 2009. One can only imagine
how these figures have increased over the
past several years.
our business. The use of regular “snail mail”
has dropped to a point where receiving an
actual letter is somewhat surprising. Telex and
fax machines, room-sized mainframe computers, 21-inch “box” monitors displaying text
in amber on a black background—with no
other colors or graphics, and mobile phones
approximating the size of a loaf of bread have
all been relegated to museum status.
AAMGA Joins the Social Network
While the insurance industry has been slow
to adjust to new trends in the past, it is clear
that we must proactively incorporate these
avenues into our communications strategies.
The numbers are staggering, and access to
instant information is more critical today than
ever before. If our customers are relying on
these tools to help them make their insurance-buying decisions, then it is incumbent
on us to have a presence on these sites. The
Automation Committee has played a pivotal
role in moving the Association forward. You
will note on the AAMGA website homepage,
that both the Twitter and Facebook logos are
prominently displayed. A random survey of
AAMGA member websites reveals that many
organizations have adopted a similar posture.
While establishing a social media policy is not
an easy task, it is one that our members feel is
necessary to take advantage of the increased
reliance on these modes of communication.
While these are the tools of our trade, technology does not exist in a vacuum or without
human intervention. When a retailer selects
which wholesaler to use for a particular risk,
it is not always done based on the “numbers,”
but on the connection he or she has with
that MGA. Patricia Fripp, a noted author and
speaker summed it up quite well: “Technology does not run an enterprise, relationships
do.”
The march towards the ultimate goal of
smaller, faster, and cheaper will do nothing
but accelerate in the years ahead. Regardless of which direction
we go, the AAMGA
Computers can’t
Automation Committee
will be on the leading
make every underedge of providing guidwriting decision, and
ance and direction to
its members. By using
claims are settled by
webinars, seminars,
people, not machines.
workshops, and the
Annual Automation and
Technology Conference, members will continue to have access to
the latest information available. The Committee’s objective is to help identify trends
in automation and solutions to improve the
long-term effectiveness and efficiency of the
wholesale insurance industry.
“
”
So Einstein, What’s Next?
Predicting the development of technology
over the next 20 years is akin to picking the
winning lottery numbers four weeks in a row.
It is next to impossible to see that far into the
future with any degree of accuracy.
Prior to his death in 1957, Hungarian-born
mathematician John von Neumann offered
the following quote: “It would appear that
we have reached the limits of what it is possible to achieve with computer technology,
although one should be careful with such
statements, as they tend to sound pretty silly
in 5 years” No truer words were ever spoken!
iPads, iPhones, tablets, 3G, 4G, VoIP, Droids,
smart phones … the list goes on of ubiquitous items that are used every day to conduct
90
?
?
?
91
2010 UFO University Class
Andy Roe, Clint Nokes, Chip Pecchio
Rose Larsen, Adam Rothert, Patrick Roe
UFO visits Munch Re in Munich, Germany, 2009
Kathleen and Louis Williams
UFO Teambuilding,
Maui, Hawaii, 2006, Team Duesenberg
2010 AAMGA University session, Desert Springs, California
Lance Jensen, Amy and Greg Gold, Jennifer Larsen-Jenson
Frank Johnston, Jason Murrey, Tripp Dusenber, TC Anderson
Ken Distel, Nick Abraham, Andrea Nash
92
Beth and Seth Johnson
Erol Kantar, Paul Lincoln
2010 Annual Convention, Desert Springs, California
Patrick Kelly, Alina Fitzgerald, Jeff Henry
Executive Director Bernie Heinze
Terri and Dave McDermid
Matt Letson, Shawn Chaffin, Tripp Duesenberg, Jennifer Larsen -Jenson, Colleen Giles- Harris
Shawn Chaffin
Tom Rogan and Chuck Deering
Ty Garcia, Len LoVullo
Scott Anderson, Bob Hanna, Tripp Duesenberg, David Miller,
Michael Gabor, Matt Crane
Valerie Knight
Mike Berry
UFO President Colleen Giles-Harris
93
Curtis Anderson, Coryn Thalmann
Shawn Chaffin, Luke Bauckham, Tony Glotzbach
C hapter
8
Guide to the
AAMGA
From the Inside Out
By Tom Stamm
President, Binding Agreements
Markel Wholesale
94
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provides leadership, management, business
acumen, industry training, networking, and
other services for the continued professional
development of AAMGA’s young men and
women.
Welcome to the Association of Managing
General Agents (AAMGA). The wholesale insurance community’s international trade association was founded in 1926 on the principles
of integrity and professionalism. The AAMGA
today represents over 500 corporate members and is respected as the leader in and the
voice of the wholesale and excess and surplus
lines segment of insurance. Its unique logo
reflects the tradition and leadership of managing general agents, insurance companies,
business service partners, and state stamping
and surplus line offices all working in concert
to effect innovative insurance products and
solutions for the marketplace. Membership in
the AAMGA is highly selective and, therefore, its ranks are those who demonstrate the
highest standards of excellence, experience,
integrity, and wholesale insurance company
representation.
Code of Ethics
The principals, officers and employees of
AAMGA members have certain obligations to
one another, to the insurance industry, and to
the communities in which business is conducted.
Our goals and obligations fall into six broad
categories.
1. Financial
2. Intra-Organizational
3. Relationships with Our Sub-Producers
4. Relationships with Insurance Companies
5. Legal Responsibilities
6. Community Obligations
About Membership
Membership in the Association is highly selective. Those admitted to the ranks of the Association must first have demonstrated high
standards of excellence, experience, integrity,
and company representation. Membership
criteria and the AAMGA’s vetting process of
all prospective members have been identified as two of the main reasons why so many
domestic and international markets view the
AAMGA as representing the “gold standard”
of the wholesale insurance industry.
1. Financial
As AAMGA members, we must meet all financial obligations (i.e. debts owed, premiums
due companies, returns due to sub-producers
and insureds, and other matters) on a timely
basis.
2. Intra-Organizational
As AAMGA members, we must compete fairly
and honorably in the marketplace, making no
false statements or misrepresentations about
other AAMGA members or competitors.
Membership in the AAMGA is broken down
into five main categories:
MGA Members: Managing General Agents
Associate Members: Domestic and international risk-bearing entities
Business Service Members: Commercial enterprises who serve the wholesale insurance
market and MGA
State Stamping & Surplus Lines Offices: Oversees excess and surplus lines transactions
Honorary Members: Individual persons of
distinction
3. Relationships with Our Sub-Producers
As AAMGA members, we must serve our subproducers to the utmost of our ability, and in
so doing must:
• Research and remain current on the financial stability of companies with which we place business;
• Encourage continuing education and training for ourselves and our staffs; and
• Make no misrepresentation of what
coverage is being provided.
In addition, the membership is complemented
by the Under Forty Organization (UFO). The
organization is open to any AAMGA member
employee under 40 years of age. The UFO
4. Relationships with Insurance
Companies We Represent:
As AAMGA members, we will faithfully
execute the underwriting guidelines of the
96
Ethics Committee
The Committee will be comprised of the
President, Immediate Past President, Incoming President and the Executive Director of
the AAMGA, with the Immediate Past President serving as Chair of the Committee.
companies we represent.
As AAMGA members, we must act in the
utmost good faith and gather all data necessary to make a proper underwriting decision
before putting an insurance company at risk.
As AAMGA members, we are obligated to
remain current on the laws and regulations
affecting insurance companies, in those states
in which we have authority, advising companies to the best of our ability on statutes and
practices which affect them.
Complaints pertaining to purported ethics violations must be sent, in writing, to the Committee Chair, who will notify the member(s)
in question as to the nature of charges which
have been received. The Chair will also
forward a copy of the complaint to the other
members of the Committee, which will then
initiate an investigation and obtain evidence
in respect of the charges made. All aspects of
the investigation shall remain confidential.
5. Legal Responsibilities
As AAMGA members, we are required to observe all insurance and other applicable state
and federal laws and regulations.
The Committee will meet and confer either
telephonically, electronically or in person as
deemed necessary, to review the charges and
status of the investigation. Prior to the Annual
Meeting, the Committee will hold a meeting with the member(s) against whom the
charge(s) have been asserted, in order to allow a due process rebuttal by the member(s).
The member(s) who have brought the
charge(s) must also be present at the meeting.
6. Community Obligations
As AAMGA members, we will take an active
part in the recognized civic, charitable and
philanthropic movements which contribute to
the public good of our communities.
It is a privilege, not a right, to belong to
the AAMGA. Our AAMGA membership is a
“badge of honor.”
We pledge to conduct ourselves in a manner
befitting the privilege of membership in the
American Association of Managing General
Agents.
The Ethics Committee will review the evidence gathered, hear the respective positions
of the parties and, after deliberation, provide
a recommendation of action to the Board of
Directors which will act thereon promptly.
Enforcement of the Code of Ethics
If an AAMGA member is convicted of violating state or federal laws, he or she, or the
respective violating corporate entity, can be
expelled from the organization. All such matters will be referred to the AAMGA’s Ethics
Committee for full investigation and further
action as warranted.
Penalties may range from full expulsion from
the AAMGA to a 1 to 2 year suspension or
censure.
AAMGA’S Core Values
PEOPLE. We recognize the people comprising the wholesale distribution network are
the greatest assets to its continuity and success. We will continue to offer and provide
access to vital educational courses and resources, to allow our members to distinguish
themselves by achieving specialized professional designations.
A pattern of violation of state and/or federal
insurance laws will lead to investigation of the
member in question by the Ethics Committee
of the AAMGA.
Evidence of unfair trade practice or maligning other AAMGA members will be brought
to the attention of the Ethics Committee for
further investigation and action as warranted.
97
INTEGRITY. We are committed to founding
every activity we undertake with unqualified
respect, integrity and accountability.
ers were invited to submit bids. As the RFP
process was beginning, Martin Fromn sent a
letter to President LoVullo stating that they
would not be bidding and would be closing
their business in 45 days. This unexpected
notice was received just months before
AAMGA was to celebrate its 75th anniversary.
President LoVullo took action by reaching out
to a good friend and well-known Philadelphia
lawyer and educator Bernie G. Heinze, to step
in as interim Executive Director and to keep
the Association on track for all planned activities, especially the upcoming AAMGA 75th
Anniversary celebration.
INNOVATION. We embrace change and
advancements in technology and other disciplines, which will enable the creative competencies of our members to be realized and
sustained. We will constantly evaluate new
business concepts in order to enhance the
financial stability of our members.
ACHIEVEMENT. We believe it appropriate
and necessary to recognize those persons
within and outside of our industry, who
through advocating the same vision, goals
and objectives advanced by the AAMGA,
foster the advancement of the insurance
profession.
Although Bernie had little association management exposure, he had great business
skills, along with a legal and insurance background. In addition, he knew the membership very well from teaching many courses on
behalf of AAMGA. Perhaps most importantly,
he had a passion for the AAMGA and understood the need to react promptly to head-off
a crisis and any interruption of Association
activities.
A Few of the AAMGA’s Many Goals
1. To improve the knowledge and expertise of
our members and others within the insurance
profession.
2. To be a leader in improving our capabilities
and efficiencies, and those of our members,
through the full utilization of technology.
3. To provide meeting and networking opportunities for our members and industry
experts.
4. To keep our members advised of regulatory, governmental and legal changes affecting
the marketplace and their operations. To influence the outcome of proposed regulations
and legislation as an authoritative representative of the wholesale insurance market.
5. To arrange for and conduct extraordinary
meetings in world-class facilities to allow
members additional opportunities to conduct
business, network and fully enjoy the benefits
of membership in the AAMGA.
While serving as Interim Executive Director,
Bernie assembled a staff and managed the
Association through this critical time. Meanwhile, the RFP process continued under the
watchful eye of President LuVullo, PresidentElect Baron Garcia, and an ad-hoc committee
of Past Presidents. While many of the firms
submitting bids were outstanding, none had
an understanding of the wholesale insurance
business. AAMGA Past President Tom Rogan
and Bernie Heinze met and requested an
opportunity to submit a bid from their newly
formed Accolade Management Services, Inc.
After many interviews and lengthy deliberations, the AAMGA Board awarded a 3-year
contract to Accolade.
Association Management
By Tom Rogan
There were many challenges when transitioning the management duties from the prior
company without the benefit of their records
or personnel, but Bernie Heinze and the staff
accomplished a great deal very quickly. The
potential business “crisis” was avoided and
the transition continued under 2001–2002
President Baron Garcia, who also dealt with
President Len LoVullo (2000-2001) and his
Board decided to send out a Request For
Proposals (RFP) as the incumbent professional association management firm had
completed their 15th year of service. That
firm, Martin Fromn & Associates, and oth-
98
a soft insurance market. All became insignificant in comparison to the terrorist attacks on
our country on September 11, 2001describes.
Baron, along with the new Board of Directors
and the new Executive Director, focused as a
team, unifying the membership and presenting a united front. In 2005, Bernie Heinze
assumed full control of Accolade following
Tom Rogan’s retirement.
es the goals and objectives of the Board and
Committees; plans and conducts educational
classes for the AAMGA University; and maintains the daily activities of the Association.
These responsibilities keep nine professionals
engaged full-time. In addition to the daily operational activities of receiving and responding to faxes, mail, and other communications
and answering questions to callers about the
Association and the industry, the staff also
maintains the AAMGA Headquarters office.
The Board has since remained vigilant of
their professional managers and in 2009, put
out another RFP. Once again, after consideration of several serious management groups,
Accolade Management Services, Inc. and Executive Director Bernie Heinze were selected
as the best group to manage the affairs of the
AAMGA. In 2012, they will enter their 12th
year of professional representation with the
goal to improve each year as they have since
being retained in 2001.
The professionals at Accolade conduct all
executive, corporate governance, administrative, financial, and legal affairs of the AAMGA.
In addition, applications for membership are
received, vetted and presented to the Board
for consideration. Accolade provides new
members with orientation materials. Accolade
also works to enhance the AAMGA’s brand
and reputation. Accolade’s staff
plans and executes the Annual,
Automation and Under Forty
Organization (UFO) meetings and programs, as well as
the activities of the UFO itself,
and the various standing, ad
hoc and subcommittees of the
Association and Education
Foundation.
Accolade manages the
AAMGA’s database and inforBernd G. Heinze,
mation; secures and negotiates
Executive Director
all contracts; reviews and selects
venues, entertainers, and speakers for events; arranges logistics and vendors
for the trade shows; responds to requests for
interviews and writes articles for the industry
trade press; and gives speeches and presentations to domestic and international audiences.
Financial responsibilities include collecting
dues; managing investments; preparing financial reports, paying expenses, and collecting
revenue; reconciling budgets; filing annual
tax and corporate reports; protecting trademarks and intellectual property; and facilitating audits.
Accolade Management Services:
The Engine behind AAMGA Headquarters
By Bernd G. Heinze
Accolade Management Services is retained
to manage the business affairs and to work
together in achieving various other objectives and goals of the AAMGA. Accolade is
solely owned by AAMGA Executive Director
Bernd G. Heinze, Esq., which, as mentioned
earlier, was originally built with Past President
Thomas B. Rogan to respond to the needs
and opportunities of the membership. Their
combined knowledge of the members and
history of the Association, and their insight
into the wholesale insurance marketplace,
enabled them to put a team together that
understands the opportunities and challenges,
and, most importantly, dedicates their efforts
to implementing the directives of the Board.
In addition to providing a dedicated Executive Director and staff, Accolade provides
financial management, membership liaison,
and record keeping. They are charged with
event planning of all activities with a major
emphasis on the annual convention, which
draws over 1,000 attendees each year. They
also provide these services to the AAMGA
University and Foundation. Accolade advanc-
Communication with the membership and
industry are also important aspects of the
Association’s management. Using newsletters,
99
presence on the Executive Board of Directors.
The alliance of the Associate Member Group
with all other member groups plays a major
role in the AAMGA’s successes, as well as its
reputation as the gold standard of the wholesale insurance industry.
WIN (Wholesale Insurance News) magazine,
emails, letters, social media outlets, and the
AAMGA website, Accolade keeps members advised of the AAMGA’s activities and
progress. They also design educational and
professional development classes, forums and
webinars, and prepare the continuing education (CE) credit filings for each of the classes
in each of the 50 states. Accolade maintains
AAMGA’s records and archives, and fosters
relationships with financial, insurance, and
company markets, rating agencies, legislators, regulators and other professional trade
associations.
Access Insurance Company
Atlanta, GA
Ace European Group
London, UK
Admiral Insurance Company
Cherry Hill, NJ
There is a great deal of activity generated
each day by the committees, members, board
of directors, Association, and Education Foundation. The professional and interdisciplinary
staff at Accolade who maintain the headquarters office and the day-to-day activities mirror
the AAMGA’s commitment to advancing the
interests of all members and the brand of the
Association and its Education Foundation.
Advent Underwriting Limited
London, UK
Aegis Security Insurance Co.
Harrisburg, PA
AIX, Inc.
Windsor, CT
AAMGA Associate Member Group
The AAMGA Associate Member Group has
undergone considerable change during the
past four decades, just as the insurance industry itself has evolved. Numbering 194 members in 1969 (per AAMGA’s “Proud History Bright Future,” published in 1991), the group
numbers 150 as of August 2011. Breaking it
down further, of the 194 members in 1969,
only 10 of the same exact names remain on
today’s membership list.
Allianz Global Corporate & Specialty
New York, NY
This transformation is due mainly to opportunistic mergers, acquisitions and name
changes, consolidating and strengthening the
group, AAMGA, and the Wholesale Surplus
Lines segment of insurance itself. This concise
and elite group of companies provides
AAMGA members with advanced underwriting expertise and expanded availability of
market risks. It provides the Association and
its partner University with proactive individuals who contribute their time and expertise
through committee participation, presentations at various functions, and as of 2008,
American Southern Insurance Company
Atlanta, GA
Alterra Specialty
Richmond, VA
American Modern Insurance Group
Amelia, OH
American Reliable Insurance Co.
Scottsdale, AZ
American Vehicle Insurance Company
Ft Lauderdale, FL
Amlin Underwriting
London, UK
Aon Benfield
Chicago, IL
Apollo Syndicate 1969
London, UK
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Argenta Syndicate Management Ltd.
London, UK
Brit Syndicate Ltd.
London, UK
Argo Managing Agency Limited
London, UK
Burlington Insurance Group
Burlington, NC
Ark Syndicate Management Limited
London, UK
Canal Insurance Company
Greenville, SC
Arthur J. Gallagher (UK) Ltd.
London, UK
Canopius Managing Agents Limited
London, UK
Aspen Specialty Insurance Co.
Atlanta, GA
Capitol Insurance Companies
Madison, WI
Assurance America Corporation
Atlanta, GA
Carolina Casualty Insurance Co.
Jacksonville, FL
Atrium Underwriters Ltd.
London, UK
Cathedral Underwriting Ltd.
London, UK
Axis Insurance
Alpharetta, GA
Catlin Underwriting Agencies Ltd.
London, UK
Bankers Insurance Group, Inc.
St. Peterburg, FL
Century Insurance Group
Westerville, OH
Beaufort Underwriting Agency
London, UK
Chaucer PLC. Lloyd’s Syndicate 1084
London, UK
Beazley Furlonge Ltd.
London, UK
Chesterfield Insurance Brokers Limited
London, UK
Bell & Clements Ltd.
London, UK
Chubb Specialty Insurance
Warren, NJ
Benfield Ltd.
London, UK
CNA Select Risk
Chicago, IL
Berkley Underwriting Partners
Naperville, IL
Colony Specialty
Richmond, VA
Besso Ltd.
London, UK
Combined Independent Agencies, Inc.
Dallas, TX
BMS Intermediaries, Inc.
Dallas, TX
Corrie Bauckham Batts Ltd.
London, UK
Bowood Insurance Brokers Ltd.
London, UK
Croton Stokes Wilson Ltd.
London, UK
101
Crouse and Associates Insurance Brokers, Inc.
San Francisco, CA
Hartford Steam Boiler Inspection & Ins. Co.
Houston, TX
Decus Insurance Brokers Limited
London, UK
Heath XS, LLC
Basking Ridge, NJ
Endeavour Insurance Services Limited
London, UK
Hiscox Inc.
Armonk, NY
Endurance US Insurance
Los Angeles, CA
Hiscox Syndicates Ltd.
London, UK
Everest National Insurance Company
Liberty Corner, NJ
Home State Insurance Group
Dallas, TX
EWI RE, Inc.
Dallas, TX
Hudson Insurance Group
New York, NY
Fireman’s Fund Specialty Insurance
Washington D.C.
IAT Specialty
Scottsdale, AZ
Founders Insurance Company
Des Plaines, IL
ICAT Holdings, LLC
Boulder, CO
General Star Management Co.
Stamford, CT
Imperium Insurance Company
New York, NY
Gibbs Hartley Cooper
London, UK
Inter-Reco Inc.
Woodbury, NY
Gill and Roeser, Inc.
New York, NY
James River Insurance Company
Richmond, VA
Glencairn
London, UK
Jubilee Managing Agency Ltd.
London, UK
Golden Bear Insurance Company
Stockton, CA
Kirkway International Ltd.
Hamilton, BM
Guilford Specialty Group, Inc.
Hartford, CT
Knight Management Insurance Services, LLC
Los Angeles, CA
Guy Carpenter & Co., Inc.
Hartford, CT
Lancer Management Company
Long Beach, NY
Hardy Underwriting Agency
London, UK
Liberty International Underwriters
New York, NY
Harman Kemp North America Ltd.
London, UK
Liberty Mutual Commercial Affinity
Boston, MA
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Liberty Syndicates
London, UK
National Lloyds Insurance Company
Waco, TX
Lloyd’s
New York, NY
Nationwide Health Plans Special Risks
Dublin, OH
Lonmar Global Risks Limited
London, UK
Nautilus Insurance Group
Scottsdale, AZ
Markel Corporation - Mid South
Plano, TX
Newman Martin and Buchan LLP
London, UK
Markel Corporation - Midwest
Deerfield, IL
Northland Insurance Companies
St. Paul, MN
Markel Corporation - Northeast
Red Bank, NJ
NYMAGIC, Inc. & The MMO Group of Companies
New York, NY
Markel Corporation - Southeast
Glen Allen, VA
Markel Corporation - West
Woodland Hills, CA
Markel American Insurance Company
Waukesha, WI
Markel International
London, UK
Maxum Indemnity Company
Alpharetta, GA
Meadowbrook Insurance Group
Southfield, MI
Midlands Management Corp.
Oklahoma City, OK
Miller Insurance Services Ltd.
London, UK
Montpelier US Insurance Company
Scottsdale, AZ
Munich Reinsurance America, Inc
Princeton, NJ
National Indemnity Company
Omaha, NE
Occidental Fire & Casualty of NC/Wilshire
Ins. Co.
Raleigh, NC
Omega Underwriting Holdings
London, UK
Oxford Insurance Brokers Ltd.
London, UK
Partner Reinsurance Company of the U.S.
Greenwich, CT
Penn-America Group
Bala Cynwyd, PA
Preferred Reinsurance Intermediaries, Inc.
Columbia, SC
Price Forbes Ltd.
London, UK
Prime Insurance Company
Chicago, IL
QBE European Operations
London, UK
QBE Insurance Corporation
New York, NY
103
RenRe Insurance
Plano, TX
Travelers Boiler Re
Hartford, CT
RFIB Group Ltd.
London, UK
Travelers Syndicate 5000
London, UK
RLI Insurance Company
Irving, TX
Trident Insurance Services, LLC
San Antonio, TX
Ropner Insurance Services Ltd
London, UK
Tysers & Co Ltd.
London, UK
RSUI Group, Inc.
Atlanta, GA
U.S. Liability Insurance Group
Wayne, PA
S.I.U., LLC
Glendale, CA
U.S. Re Corporation
Pearl River, NY
Scottsdale Insurance Company
Scottsdale, AZ
United National Group
Bala Cynwyd, PA
Starr Indemnity & Liability Co.
New York, NY
Vela Insurance Services
Chicago, IL
State National Insurance Company, Inc.
Bedford, TX
Western Heritage Insurance
Scottsdale, AZ
Strickland Insurance Group
Goldsboro, NC
Western World Insurance Group
Franklin Lakes, NJ
Target Insurance Services
Avon, CT
White Mountains Reinsurance Company of
America, New York, NY
THB Group Ltd.
London, UK
Willis Re Inc.
Atlanta, GA
The Hartford - Financial Services Group, Inc.
Hartford, CT
Windsor Insurance Brokers Ltd.
London, UK
Topa Insurance Company
Los Angeles, CA
WNC Insurance Services, Inc. Dba WNC First
Insurance Services, South Pasadena, CA
Tower Group Companies
New York, NY
XL Excess & Surplus Lines
Scottsdale, AZ
Towers Perrin (Re) Insurance London
London, UK
Zurich North America
Omaha, NE
Towers Perrin Reinsurance
Philadelphia, PA
104
Annual Conventions: Too Many Meetings?
Not Enough? Or Just Right?
By Tom Stamm
In 2002, the geographic structure of the
AAMGA included three zones: East, Midwest,
and West, each with elected Vice Presidents
and Directors. Each zone conducted an annual gathering of active zone and associate
members to participate in round-table discussions. The two memberships met both jointly
and individually—usually talking about each
other! It was at this time that the AAMGA
Executive Council decided three zone meetings, combined with the AAMGA Annual
Convention, Committee Day, and University
Weekend, was just too many. Consequently,
the geographic structure went from three to
two zones, as it remains today. Further, the
two zone meetings were replaced by one Fall
meeting.
Then in 2010, the Fall meeting was also
dropped, due mainly to a depressed economy
and the extreme competitiveness of the insurance industry, which substantially reduced
the number of attendees. However, such
conditions did not affect attendance to the
same degree at the University Weekend, held
annually in Scottsdale, Arizona. Therefore it
was decided to conduct such an event on the
East Coast as well. Richmond, Virginia, was
chosen as the location of the University East
Weekend, in hopes that it, like the Scottsdale
location, would attract many participants from
the Associate Members located there—which
it did!
Today, the Annual Convention, Committee
Day, University Weekends, and the industry’s
most elite Automation & Technology Conference continues to endure.
AAMGA Annual Meetings
1926 Signal Mountain, Tennessee
1927 Hot Springs, Arkansas
1928 Asheville, North Carolina
1929 Denver, Colorado
1930 Richmond, Virginia
1931 Dallas, Texas
1932 Hartford, Connecticut
1933 Atlanta, Georgia
1934 New Orleans, Louisiana
1935 Kansas City, Missouri
1936 Little Rock, Arkansas
1937 Denver, Colorado
1938 Asheville, North Carolina
1939 San Francisco, California
1940 Dallas, Texas
1941 Hollywood Beach, Florida
1942 None (because of war)
1943 None (because of war)
1944 Chicago, Illinois
1945 None (because of war)
1946 Atlanta, Georgia
1947 Dallas, Texas
1948 San Francisco, California
1949 New York, New York
1950 Edgewater Park, Mississippi
1951 Glenwood Springs, Colorado
1952 White Sulphur Springs, West Virginia
1953 Genoa City, Wisconsin
1954 Fort Monroe, Virginia
1955 San Francisco, California
1956 Houston, Texas
1957 Miami Beach, Florida
1958 Colorado Springs, Colorado
1959 New York, New York
1960 Sea Island, Georgia
1961 Phoenix, Arizona
1962 White Sulphur Springs, West Virginia
1963 New Orleans, Louisiana
1964 Minneapolis, Minnesota
1965 Biloxi, Mississippi
1966 Seattle, Washington
1967 Colorado Springs, Colorado
1968 Lexington, Kentucky
1969 Osage Beach, Missouri
1970 West End, Grand Bahama Island
1971 Scottsdale, Arizona
1972 White Sulphur Springs, West Virginia
1973 Hamilton, Bermuda
1974 Sun Valley, Idaho
1975 Biloxi, Mississippi
1976 Acapulco, Mexico
1977 Colorado Springs, Colorado
1978 White Sulphur Springs, West Virginia
1979 Honolulu, Hawaii
105
“People are anxious to get going, to revitalize
themselves, get the ball rolling again … Let’s
do this!” And they did!
1980 Boca Raton, Florida
1981 Reno, Nevada
1982 White Sulphur Springs, West Virginia
1983 Lahaina, Maui, Hawaii
1984 Palm Beach, Florida
1985 San Francisco, California
1986 Orlando, Florida
1987 Palm Springs, California
1988 White Sulphur Springs, West Virginia
1989 Maui, Hawaii
1990 Orlando, Florida
1991 Scottsdale, Arizona
1992 White Sulphur Springs, West Virginia
1993 Desert Springs, California
1994 Orlando, Florida
1995 Colorado Springs, Colorado
1996 Orlando, Florida
1997 Waikoloa, Hawaii
1998 Puerto Rico
1999 Colorado Springs, Colorado
2000 Orlando, Florida
2001 Desert Springs, California
2002 Las Vegas, Nevada
2003 Boca Raton, Florida
2004 Phoenix, Arizona
2005 Orlando, Florida
2006 Maui, Hawaii
2007 Paradise Island, Bahamas
2008 Phoenix, Arizona
2009 Boca Raton, Florida
2010 Desert Springs, California
2011 Orlando, Florida
2012 San Antonio, Texas
What’s the Story behind WIN Magazine?
By Bernd G. Heinze
The development of the AAMGA’s quarterly
Wholesale Insurance News, or WIN magazine,
arose from an idea in 2010 to provide members with immediately usable information not
available from conventional industry sources.
AAMGA Executive Director Bernie Heinze
presented the proposal to the Board of Directors, which approved the project. Articles
are solicited from and written by wholesale
insurance industry experts, researchers and
university professors, insurance commissioners, and others, with the admonition that the
content allow the wholesale insurance professional the opportunity to better understand
and take advantage of the events shaping the
marketplace and to remain ahead of coming
events. Production is handled at AAMGA
Headquarters in King of Prussia, Pennsylvania, and issues are published in print and
digital formats. The effort is completely supported by advertising revenue which, after
printing and distribution expenses are paid,
is also split with the Association as non-dues
revenue.
Future
2013 New Orleans, Louisiana
2014 Kona, Hawaii
2015 National Harbor, Maryland
WIN was launched at the AAMGA’s 85th
Annual Meeting in Orlando, Florida, on May
23, 2011. Conference attendees received a
free print copy of the magazine. The digital
version was also emailed to every Association
member to coincide with the Annual Meeting’s Opening Breakfast. A QR code version
was also made available for those wishing
to have WIN “on the road.” The magazine is
mailed to every AAMGA member principal
and to each of the state insurance commissioners and is emailed to Association member
employees. It is also distributed through the
AAMGA’s Twitter feed and Facebook page
and by other trade associations involved in
the wholesale space.
Not Enough Meetings? Maybe! Just Right?
For Now!
The AAMGA Annual Convention remains
the Association’s foremost event. Open to
all levels of membership, including spouses
and family members, it provides endless opportunities, like world-renowned speakers,
enhanced education, face-to-face networking, vendor availability, and first-class resort
activities and accommodations.
To start the Annual Convention at the RitzCarlton’s Grand Lakes in Orlando, Florida,
2011 President Mark Rothert (Ron Rothert
Insurance Services) told the gathering:
106
WIN has continued to advance the AAMGA
as the portal of valuable and immediately
implementable information to members of
the Association. Staying true to its mission to
being published by—but not to be about—the
AAMGA, the magazine publishes articles by
members of every segment of the industry. It
has also enhanced the AAMGA’s brand and
exposure to the wholesale insurance market
and beyond.
Originally, WIN was intended to be a publication for Association members, as well as
state and federal legislators and regulators.
However, interest in its timely content and
shared expertise expanded distribution to
over 240,000 insurance professionals in 40
countries. Future plans include integrating
the magazine articles with social media and
offering webinars with authors.
107
Roz Fink, Jamie Levy, Jo Duesenberg, Teri Black, Gwen Albrecht, Jan Rothert, Bernie, Lynn
Hutelmyer, Dicksie Johnson, Mimi Anderson, Ellen Mastowski, Rosemary Anderson
Jimmy Proffitt, Corinne Jones, Tom Mullligan
Richard Thomas and George Schaffer
Terry Newell, Bill and Roz Fink
John Hayden on Ethics
Tom Kuzma
Caitlin Skelton and
Martha Heinze
Dublin Ireland, Golfers Len LoVullo, Dave McDermid, Tom
Stamm, George Mang and Peter Carriero
Joe and Sharon Timmons, Tom Stamm,
Nancy and Andy Frazier
Ronnie Moore, Robert Giles, Joe Hytelmyer
Cindy and Len LoVullo
Lynn and Joe Hytelmyer
Tom Albrecht
Jim Mastowski and C.J. Ketterer
President Curtis Anderson Grandkids
Stuart Shenton
Preston Gough and Scott Anderson
Dan Mahar, brothers Harry and Francis Johnson
Danielle Wade
Karen and Madelyn Thomas
Brother and sister team Matt and Amy Leicht
Matt Letson
Gwen and Tom Albrecht
Managing General Angels
Emily Lomax and Julie Savage
A serious Tony Pierce at 2011 Automation &
Technology Conference
John Griffen
Denise Romero, Jow Majsak, Lisa Barnes
Frank Neugebauer
Roger Ware
First Lady Laurie Giles
David Wheal and Bob Quirk get a lesson from Karen Quirk
Joe and Harriet Macchia
Char Ganeku, Wendy Markham, Sheri Ishikawa
Phil Rellinger
109
Bernie Lecture
President Mark Rothert
Allison and Kevin Tromer
C hapter
9
The Committee
Structure:
A Way to Serve and be Served
By Tom Stamm
President, Binding Agreements
Markel Wholesale
110
111
The AAMGA is made up of an elite group of
insurance specialists dedicated to the betterment of the wholesale segment of the
insurance industry. One of the greatest assets
to accomplish this goal is its committees.
AAMGA committees provide the Association
and its members with the ability to focus on
strategic objectives in all areas of concern.
The committees are considered the “incubators” of the AAMGA and the wholesale
industry’s future leaders.
Automation & Technology
The Automation & Technology Committee
provides expertise and guidance to the Association, enabling membership to stay in tune
to the ever evolving world of automation and
technology. The committee is also responsible
for the content, functionality, and maintenance of the AAMGA’s website (www.aamga.
org). It also organizes the wholesale insurance market’s only Automation & Technology
Conference every March.
In 1987, there were only a few standing committees. Then President Wesley C. Duesenberg, Jr. (Southern Insurance Underwriters),
decided to add a Computer Committee to
confront the many questions regarding computer use in the wholesale insurance industry.
During Wes’s tenure, the AAMGA also decided to have all committees meet collectively,
consequently conducting the first “Committee
Day” in July 1988, in Kansas City, Missouri.
Education
The Education Committee works with the
AAMGA University Chancellor and staff
to ensure that quality and relevant courses
are made available to the Association. The
committee provides input on topics, content,
instructors, and education locations, all with
the goal of providing the membership with
ideal technical and developmental solutions
to meet their educational needs.
Each year since then the committees gather
in June during the AAMGA Committee Days.
This weekend retreat provides an opportunity
for the Board members and liaisons to meet
with all committees for strategic planning and
budgeting for the coming fiscal year.
Governmental Affairs
The Governmental Affairs Committee ensures
that AAMGA members are kept informed
about governmental and regulatory issues,
developments, and other matters impacting their operations. Committee members
regularly meet with state and federal elected
and appointed officials across the country.
The AAMGA’s influence on Congress and
state regulators has enabled members of the
Association to advance needed insurance
reforms favorable to the wholesale insurance
industry. It has also resulted in the AAMGA
being afforded the opportunity to testify and
provide specific industry data and information before committees of the US Senate and
House of Representatives. The Governmental
Affairs Committee also liaises regularly with
the Financial Services Authority in the United
Kingdom, in order to discuss and advise how
regulatory initiatives will impact their business in the United States.
In 2000, then President Len LoVullo (LoVullo
Associates, Inc.) elevated the effectiveness of
15 different committees by making it mandatory that all committee members attend
Committee Day. He also increased the size
and effectiveness of the UFO Committee to
13 highly motivated young professionals.
To further enhance the effectiveness and
the collaboration between the generations,
in 2002 acting President Rob Giles (Scobie
Group) appointed a UFO delegate to actively
participate on each AAMGA committee. Today, there are eight AAMGA committees.
Then, and now, the success of the AAMGA
has been, and always will be, dependent on
the energetic collaboration of its cohesive
committees. The current AAMGA standing
committees are described below.
HR Committee
The Human Resources Committee works to
provide AAMGA members with information
needed to effectively manage their human
capital investment. The Committee works
112
who have declared insurance or risk management as their major.
closely with AAMGA headquarters staff to ensure timely updates are made to the Employee Handbook, which is downloadable from
the AAMGA website. The AAMGA University
is currently a recognized provider of SHRM
(Society of Human Resource Management)
credit which can be applied to required continuing education credit needed to maintain
both the PHR (Professional in Human Resources) and SPHR (Senior) designations.
Marketing
The Marketing Committee provides important
initiatives that advance the brand value of the
Association. It works closely with the AAMGA
University, marketing the University’s benefits
to the membership as well as to their customers. The committee oversees the advertising
and marketing plan for the Association publications, including the quarterly magazine
“WIN,” email blasts, annual meeting newspapers, press releases, conferences, and white
papers. It also organizes the AAMGA’s coveted Achievement Awards, given to deserving
members of THE insurance INDUSTRY. The
committee also provides benefits to numerous
college students around the country
Membership
The Membership Committee works with the
headquarters staff and prospective new members to ensure applicants meet various membership requirements. The committee also
sponsors a “New Members” reception at each
Annual Meeting, and assists new members in
becoming acclimated with all the benefits and
privileges to which they are entitled.
Operations
The Operations Committee works with the
AAMGA staff to coordinate venues, speakers, receptions, programs, and the Insurance
Master Calendar. They work on special projects as requested by the Board of Directors,
other committees, and headquarters. It also
maintains and updates the “standard operating procedures” (SOPs) of the Association.
This book is the end result of one of those
projects.
113
Future AAMGA Leaders Matt Letson, Shawn Chaffin,
Tripp Duesenberg, Jennifer Larsen-Jenson, Coleen Giles-Harris
Heinze Family, Sara, Martha, Kelsey, Bernie
Rosemary and Curtis Anderson
Kurt Bingeman
Jennifer and Ty give tribute to father and husband Baron Garcia
Mark Rothert
Carol and Tom Stamm
Marty Blair and Martha Heinze
Euclid Black and Tom Snyder
Eva and Lou Mastos
Mary Calabrese
Ellen and Frank Mastowski
Courtney and Fred Steves
Sue Davis and Barbara Gough
Pam Mulligan and Donna Perch
Donna Schacher
Who’s the Leader?
Annual convention is for all ages Says Caren Distel with
grandson Garvin
Tony Glotzback, Bernie Heinze, Dave Neilson
Ken Coon
Wes and Jo Duesenberg with son Tripp
Linda and Wayne Forest
Bryan and Caitlin LoVullo
Don Proffer
Suzanna Chaffin, Suzanna, Rosemary Anderson, Jan Rothert,
Ellen Mastowski enjoying spouse luncheon in Orlando
Angela and Josh Korver
Bobby Owens
Ed Levy
Frank Mastowski, Robert Sanders, Jerry Alongi
Len, Jacquelyn, Brittany, Cindy and Paul LoVullo
Studious Greb Rubel
Paul Davis, Bob Distel, Bobby Owens, Caren Distel
Board Members Tom Mulligan, Gary Tiepelman, RC Chaffin, Mark
Rothert, Wayne Forest, Bernie Heinze meeting with Associate members
Eunice Hucker, Sue Bishop
Kerry and Susan Dillard, Barbara and Preston Gough
The 2011 Annual Convention in Orlando
kick off with marching band
Mary Beth and Tony Glotzback
115
Agnes and Roger Ware
Bob Schacher, Tony Washington, Joe Sinnon, Cindi Brown
Frank Mastowski
E nding letter
Tom’s Thoughts
There is no power more powerful than the
power of a powerful team!
feelings of euphoria as I, when viewing these
classic photos.
When the AAMGA Operations Committee approached me to put together a 20-year history
book as a follow up to the AAMGA’s “Proud
History-Bright Future,” published in 1991,
I was very humbled, yet anxiously excited
about a few things that came to mind … to
be a part of AAMGA history, to serve my
mentor of 40 years and to have the opportunity to take a wild ride down memory lane …
and that it was !
During the past year, I have endured a lot of
time organizing, researching, writing, proof
reading and deadline follow up, all while
learning about the world of editing and publishing. However, the most rewarding experiences came when I was able to work side by
side with a wonderful volunteer group of
member/writers, who definitely provided an
interesting diversion from my day job.
My trip down memory lane was much more
extensive than expected; in order to adequately represent you and your participation in various AAMGA events, I took on the
process of gathering, reviewing and identifying people in more than a thousand different
photos. I hope you experience those same
Who are they? With much gratitude, I acknowledge those listed below, who deserve
a world of thanks for their time, enthusiasm,
dedication, memory banks and passion in
order to put this book in your hands.
I hope you enjoy the next generation
(volume II) of AAMGA’s “Proud HistoryBright Future.”
Your friend,
Tom Stamm
116
A cknowledgments
Authors
Thomas D. Stamm, President Binding Agreements,
Markel Wholesale, Scottsdale, AZ
Thomas B. Rogan, Director, President, Sec/Tres,
TBR Consultants, Inc. Sunrise, FL
Past President, AAMGA
Chris Behymer, Director Program Development,
Markel Wholesale, Scottsdale, AZ
Peter Barrett, Chairman,
Bell & Clements Ltd, London, UK
James A. Roe, President,
Arlington/Roe & Co., Indianapolis, IN
Kerry P. Dillard, President,
Bloss & Dillard, Inc., CMGA, Huntington, WV
Euclid G. Black, CEO,
Black/White & Associates Insurance Brokers of Louisville, Louisville, KY
Colleen Giles Harris, Director of Centralized Office Services
Scobie Group
Others
Gary Peterson, President, Chris-Leef General Agency, CMGA, Shawnee Mission, KS
Vice President, AAMGA
Matthew Letson, Vice President, Hanover Excess & Surplus Inc., CMGA, Wilmington, NC
Director, AAMGA,
Past President, AAMGA UFO
Gary L. Gibson, President, Coastal Brokers Insurance Services, Pleasanton, CA
Co-Chair, Operations Committee, AAMGA
David S. McDermid, Vice President Underwriting, Scottsdale Insurance Company, Scottsdale, AZ
Co-Chair, Operations Committee, AAMGA
Wesley C. Duesenberg Jr, President, CEO, Southern Insurance Underwriters, Inc., CMGA, Atlanta, GA
Past president, AAMGA
continued
117
Bernd G. Heinze, Esq., CEO, The Heinze Group, LLC, King of Prussia, PA
Executive Director, AAMGA
Wayne G. Forest, Sr., President, Forest Insurance Facilities, Inc., CMGA, Metairie, LA
President, AAMGA
Mark A. Rothert, President, Ron Rothert Insurance Services, Inc., CMGA, Portland, OR
Immediate Past President, AAMGA
R.C. Chaffin, President, CEO, SeaCoast Underwriters, Inc., CMGA, Coral Gables, FL
President Elect, AAMGA
Jennifer Larsen Jensen, Vice President, Erickson-Larsen, Inc., Maple Grove, MN
Past President, AAMGA UFO
Donald Proffer, President, Proffer Productions, Kansas City, MO
Carol Stamm, Scottsdale, AZ
Mark Wells, Chairman, Wells Publishing, Inc.
Dena Kaplan, Associate Publisher, Insurance Journal
Guy Boccia, Vice President, Wells Publishing, Inc.
Amy Seals, Editor, freelance editor
Groups
The members of the AAMGA Operations Committee
The staff of Proffer Productions, Kansas City, MO
The staff of the Surplus Line Reporter, Terrytown, LA
118
God Bless America
119
American Association of Managing General Agents
610 Freedom Business Center, Suite 110
King of Prussia PA 19406
610-992-0022
www.aamga.org