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May 28, 2012 Memorial Day IIABAZ Office Closed I was very proud to be part of “The Big ‘I’ Day on Capitol Hill,” which brought together June 13-15, 2012 more than 1,000 independent agents from around the country to Capitol Hill offices in CIC Life & Health Institute Washington, D.C., to lobby members of the House, Senate and their staffs. The annual Embassy Suites—North Phoenix conference took place Wednesday, April 25th through Friday, April 27th. June 26, 2012 CISR Dynamics of Service Seminar As this year’s President, I was ITEC Classroom—Phoenix honored to be one of the group of IIABAZ agents who traveled to July 4, 2012 Independence Day Washington D.C. to meet with the IIABAZ Office Closed Arizona Congressional delegation and lobby on behalf the most July 13, 2012 pressing issues for our agent IIABAZ Board Meeting members. ITEC Classroom—Phoenix

The Arizona members who were in attendance from Arizona were insurers limit what they spend on myself, Mitch Childers of D.M. Lovitt administrative and marketing costs including Insurance, Tim Downey of AmWins payments to agencies. Since implementation Brokerage, Steve Goble of The of the MLR began in January, health Mahoney Group, Brett Rustand of Crest From L-R: Tim Downey, Carol Wede, Jackie insurance producers have said their Insurance, Wayne Syrek, Jr. of The Adams Wanta, Mitch Childers, AZ Congressman commissions have been cut. It is vital we Agency, and Scott Wede of the Surplus Jeff Flake, Scott Wede, Wayne Syrek, Jr., preserve consumer access to agents in Lines Association of Arizona. Brett Rustand, and Steve Goble. health insurance by excluding agent compensation from the Medical Loss Ratio Our members addressed issues important to the insurance industry such as the federal spending caps. flood insurance program which is set to expire at the end of May. In the last couple years this program has seen many short term extensions and even a couple lapses in To accomplish this H.R. 1206, S. 2288, and coverage. A lapse in the NFIP has a real effect on the insurance industry when property similar legislation, S. 2068, the Access to owners are unable to complete their mortgage transactions since Federal law requires Independent Health Insurance Advisors Act, that homes in designated flood-risk areas have flood insurance before a mortgage can be seek to "clarify" that producer compensation completed. Because the NFIP is effectively the only flood insurance available in the would not be considered part of MLR ratio. United States, a lapse in the program means home sales cannot close in designated flood This provision limits administrative costs in areas. health-insurance premiums to 15 percent of premiums for large insurance groups and 20 Our goal is to reform the national flood program so it has long-term solvency by percent for small groups. We stressed that reducing subsidies, dealing with repetitive loss properties and modernizing the commissions should not count toward these coverages. According to statistics on the program website, NFIP has 5.59 million administrative costs. policies in force nationwide, with a total insured value of $1.267 trillion, and from 2006 to 2010 the NFIP paid out $6.21 billion in losses. H.R. 1309 would extend the NFIP for Our members also discussed affects the five years and passed the House last year. S. 1940 has not been brought to the floor for down economy is having on independent a vote yet. If nothing is done, the NFIP will expire yet again on May 31, 2012 one day agents who write policies for businesses, before hurricane season begins. homes, and cars in a soft market where people are not buying cars, starting Another critical issue we discussed is exempting agent/broker commissions from the Medical Loss Ratio (MLR) provision. The new healthcare law mandates that health Continued on top of page 4

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INSIDE THIS EDITION Big “I” Agents Lobby In D.C. Cover Arizona Agent Sentenced to Prison for Diverting Premiums Page 5 Big “I” Praises Senate Introduction of NARAB II Page 5 Accidental Discharge Versus Sewer Backup Page 6 Loyalty to Independent Agents Remains Strong Page 8 Political Analysts Barnes and Kondracke Debate Before Big “I” Page 12 Best Practices Answers Agency Questions Page 13 Regulation Proposal Creates New Retirement Planning Options Page 15 Rep. Tiberi Discusses Taxes at Big “I” Conference Page 18 Local Insurance Community Leader Recognized Page 18 The Importance of Online Marketing Page 19 Superior Insurance Coverage for Serious Collectors Page 19 Lawmakers Address Big “I” Agents Page 20 The Reality of Texting for Insurance Agencies Page 23 Dissection of Expectations in the Agency Environment Page 24 5 Keys to Effective Time Management Page 26 Big “I” Testifies Before Congress on National Flood Insurance Page 29 Breathing Life Into a P&C Agency Page 30 Advertisements Acuity Insurance Company Page 7 American Summit Insurance Company Page 11 AmTrust North America Page 14 Berkshire Hathaway Homestate Companies Page 17 The E&O Department Page 32 Freedom National Insurance Services Page 27 Guard Insurance Group Page 31 Hallmark Insurance Company—Personal Lines Page 3 Kowalski Construction, Inc. Page 2 MexiPass International Insurance Services Page 2 Pekin Insurance Company Page 9 Preferred Property Program Page 4 Risk Placement Services, Inc. Page 22

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 2 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 3 continued from front page

passed in the U.S. House. S. 2342 has just been introduced in the Senate. Both bills would save agents time by creating a one-stop-shop for agent licensing.

Finally we emphasized the goal of keeping insurance regulation solely at the state level by ensuring that the newly created Federal Insurance Office does not exceed its limited non-regulatory mandate in the Dodd-Frank law was voiced.

“The Big ‘I’ Day on Capitol Hill” was a great demonstration of how Independent agents and From L-R: Tim Downey, Jackie Wanta, brokers are powerful and Wayne Syrek, Jr., AZ Congressman Edward Pastor, Mitch Childers, and Brett Rustand. influential constituents. We are civic and business businesses or building houses. They also addressed the upcoming leaders of our communities tax changes with their legislators and how burdensome taxes to that often contribute to small businesses will affect independent agents who own their own our representatives’ business, since the majority of our members are organized as political campaigns. pass-through entities. Authors: Jackie Wanta, CIC, CPCU, ARM, CRIS—President We also brought up the importance of streamlining the process of of the Independent Insurance Agents and Brokers, Inc. with licensing nonresident agents to make it easier to write insurance in assistance from Russell Reiten—Government Affairs, other states was also presented. H. R. 1112, NARAB II, has already Independent Insurance Agents and Brokers of Arizona, Inc.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 4 Attorney General Tom Horne recently announced that 33 "Arizonans need to be confident that their insurance year-old Jeffery Ray Capshaw of Flagstaff was sentenced in providers operate with integrity and that the regulatory Maricopa County Superior Court to 3 years in prison for system protects consumers," Horne said. "The individual Forgery, a class 4 felony as a result of a plea agreement with sentenced in this case violated that trust for his own the State. Capshaw was indicted for Insurance Fraud, Theft personal gain and was fortunately brought to justice. I am and Forgery for collecting payments for insurance premiums very pleased with the efforts of the Department of after his insurance license had been revoked and providing a Insurance working with my office to bring this forged certificate of insurance. prosecution to a close."

Capshaw's insurance license was revoked by the Arizona Capshaw was also ordered to pay total restitution of Department of Insurance on March 8, 2011. Between April $29,838.99 to Dawn Mickelson of Mickelson 10, 2011 and June 14, 2011, after Capshaw lost his license, he Jeffrey Capshaw Construction, Ynez Cross of Helping Hearts, John Merell of continued to collect premiums from small business owners Golden Shore General Store, and Christine Wijcik. but did not forward the money to insurance companies so no policies were ever issued. In one instance, when asked by the This matter was handled by Assistant business owner for a copy of their policy, Capshaw created a Attorney General Beverly Rudnick. This case forged Certificate of Insurance. None of the business owners was investigated by the Arizona Department suffered a loss during this time period. of Insurance Fraud Unit.

Legislation reforms and streamlines agent licensing process. Senator Mike Johanns Senator John Tester The Independent Insurance Agents & Brokers of America expressed has 60 bipartisan cosponsors. NARAB II has twice before passed the its strong support for a bipartisan insurance agent licensing reform House of Representatives by overwhelming margins, but had not yet bill titled the “National Association of Registered Agents and been introduced in the Senate until late April. Brokers Reform Act” (NARAB II). The bipartisan bill was introduced in the U.S. Senate by Senators John Tester (D-Montana) and Mike “The Big ‘I’ is very encouraged by the introduction of NARAB II and Johanns (R-Nebraska). we would like to thank Senators Tester and Johanns for taking the lead in the Senate on this important legislation,” says Charles E. NARAB II would provide for streamlined non-resident insurance Symington, Big “I” senior vice president for government affairs. “We agent and broker licensing while preserving state insurance are grateful to now have strong bipartisan support for the bill in both regulation and consumer protections. This legislation would achieve the House and Senate. We look forward to working with both much needed reciprocity in producer licensing and help chambers over the next few months on consideration of this policyholders by permitting greater competition among NARAB common-sense, pragmatic bill that will benefit our small business members. members and the customers they serve.”

“NARAB II provides a mechanism for establishing true nonresident The Big “I” is an advocate for reforming state insurance regulation licensing reciprocity for the tens of thousands of Big ‘I’ members and continues to oppose federal regulation, optional or otherwise. who operate on a multi-state basis,” says Robert A. Rusbuldt, Big “I” However, the association believes that the state system can’t president & CEO. “This bill would greatly improve licensing while effectively address certain regulatory problems and thinks there is a ensuring that states retain the authority to regulate marketplace vital role for Congress to play in helping to modernize state activity and enforce important consumer protection laws. regulation. The NARAB Reform Act is targeted reform since it only relates to marketplace entry and would not impact the day-to-day The legislation would build upon regulatory experience at the state state regulation of insurance. level, promote consistency and preserve marketplace responsiveness. A House version of the legislation, H.R. 1112 by Article provide by: Margarita Tapia—Director of Public Affairs, Reps. Randy Neugebauer (R-Texas) and David Scott (D-Georgia), Independent Insurance Agents and Brokers of America, Inc.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 5 of near potable water because it has nowhere to go, not the backup of "I have an insured with an HO3. When the sewage water. washer is run, water is filling up the sinks and toilet and overflowing from these appliances into Another argument is that the efficient proximate cause of the overflow the bathrooms. Tile flooring, carpet, interior is the backing up of a sewer line or drain; that, without the blockage, doors, and a first floor ceiling is damaged as a there would be no overflow. That position supports the premise that result. We have determined that the drain lines in the covered peril should be restricted to normal potable water supply the house are either worn out or clogged. We have line breaks and not to any non-potable water that backs up from a also determined that tree roots have closed the sewer or drain. Persons taking this position say that "overflow" refers drain line that runs to the sewer connection in the to a tub, sink or malfunctioning washer that overflows its containment street. There are no service issues with the sewer (though it's hard to see how the overflow is from "within" the line in the street or with sewer and water services plumbing system). supplied by the city." I can see an argument for both sides but, at best, this dichotomy This issue has been debated for some time... we've appears to arise out of an ambiguity. When that exists, courts will had it come up several times in the past year. To my usually take the side of coverage. knowledge, there is no definitive legal precedent or interpretation, but we tend to agree with you that this type According to the Property Loss Research Bureau (PLRB), "The sewer of claim is covered... in many cases. backup exclusion was given widespread use after heavy rains in the late 1950s resulted in extensive basement flooding. The continual expansion of The courts have often wrestled with the question of whether cities resulted in a frequent overload of antiquated and inadequate municipal the policy excludes these losses as sewer backup or covers sewerage systems. Insurers were not prepared to assume these regularly them under the peril of accidental plumbing discharge. A occurring, nearly catastrophic losses, and the exclusion was inserted." number of state courts have felt that when the problem is in the insured's plumbing system, before it connects to the city If that historical perspective is accurate, then you could argue that the sewer main, that it should be covered as accidental discharge purpose of the exclusion is to exclude the catastrophic potential of from the insured's plumbing system. The courts reasoning is water backing up from community systems through private sewer usually that the intent of the sewer backup exclusion is to systems, as opposed to localized blockage. remove coverage only for those losses that "reverse flow" from the sewer utility lines. According to PLRB, in Hallsted v. Blue Mountain Convalescent Center, Inc., 595 P.2d 574 (Wash. App. 1979), sewage water backed up Basically, it boils down to a covered peril vs. an exclusion. The through a toilet and into a home. Since the water originated outside of following type of loss is covered (it's a named peril, e.g., in the the insured's plumbing system, the court said the exclusion applied. HO2 and an implied one in the HO3): According to the decision, the accidental discharge peril did not apply because that peril only provides coverage where the water originates 12. Accidental discharge or overflow of water or steam from "from within" the insured's plumbing system. within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household So, our position would be that, if the overflow results from a localized appliance. We also pay for tearing out and replacing any part of blockage in the plumbing system and does not constitute a backup of the building on the "residence premises" necessary to repair the sewage water, then coverage should apply. system or appliance from which the water or steam escaped. This appears to be a recurring problem. Even if the sewer backup Here's the exclusion that it's bumping up against: exclusion isn't applied, the HO policy contains the following exclusion:

3. Water Damage, meaning: Neglect

b. Water which backs up through sewers or drains Neglect means neglect of an "insured" to use all reasonable or which overflows from a sump; means to save and preserve property at and after the time of loss.

One argument for coverage is that virtually all overflow of Therefore, the insured has an obligation to remedy the problem water from "within" a plumbing system involves blockage when the damage occurs. of a drain. If the exclusion is applied to any blockage, then the overflow coverage is of no value. The exclusion, then, Article provided by: The Big “I”’s The Virtual University should be applied narrowly to the "backing up THROUGH" “Ask an Expert” column at http://www.iiaba.net/VU/Experts/ sewers or drains. Also, the damage is caused by the overflow ExpertsMain.htm. You must be logged in to gain access.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 6 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 7 But compared to older policyholders, fewer younger consumers have an agent. by Victoria Goﬀ

ost auto and homeowners who buy insurance through competitive,” Friedman says. “If they don’t, someone else will an agent are loyal to their intermediary, who they view as an take the business away from them.” objective advocate to represent their interests, according to survey results released recently. But the good news, he adds, is that “all this new technology doesn’t mean that people don’t need service or don’t need At least three-quarters of such respondents said an agent advice. It doesn’t mean that they don’t need a third party.” could identify their potential losses to make sure they’re covered, serve as an advocate to get their claims paid quickly The Turner Agency in Greenville, S.C., shares educational and fairly, provide objective advice and explain their coverage insurance information by blogging and using social media, more clearly, according to the survey by consultant including Facebook, Twitter and LinkedIn, as a way to reach Deloitte Research, which polled about 1,080 consumers a younger demographic, says marketing director Julie Turner, each for auto and home insurance in June and July 2011. who handles social media and advertising for the independent agency celebrating 50 years of business. Policyholders using independent agents in particular showed more enthusiasm for the benefits from their agent Content is relevant to the audience and time of year, such as and “their expectations of what agents can deliver in terms information about holiday safety, social host liability, of price and service were the highest recorded in the survey”, expensive gifts and newborns, she says, noting the agency according to the results. But a greater percentage of often uses consumer stories from Trusted Choice®. The older consumers buy insurance through an agent compared 18-person agency has also shared insurance information to their younger counterparts, who switch insurance about golf carts, which are popular in its community. carriers more frequently. Meanwhile, the agency has also reached out to longtime clients Survey results showed 65% of the youngest homeowners - 25 to share educational insurance information for their children, years and under - purchase coverage directly from an insurer, who were going to college or buying their first car or house. while 37% of oldest policyholders - 51 years “We’re really just trying to position ourselves as being the and older - do the same. Of the same age education expert and just trying to find that one thing that might groups, 47% of the youngest drivers said cause [a person to say], ‘Hmm, I may not have thought about they’ll likely renew their policy and almost that,’” Turner says. 70% of the oldest motorists said they’ll stay with their current insurer. By using educational content, the agency also wants consumers to know that “we want to be here for them when they have “There definitely is a generation gap here,” says Sam Friedman, questions,” she adds. “This generation is by and large an educated insurance leader for Deloitte Research. He notes 1 in 3 group, and I do think that they appreciate value when they can see respondents older than 51 said they would never buy insurance the difference,” she says. without an agent, while 1 in 5 policyholders between 35 and 50 and 1 in 10 consumers between 18 and 34 said the same. The agency also recently launched a mobile app, which includes capabilities such as requesting a quote, reporting a claim, paying With older consumers showing loyalty to their agent who a bill and locating nearby services such as a towing company, gas they’ve worked with over time, there’s an opportunity to station or hospital, Turner says. “capture the business and maintain the loyalty of drivers and homeowners when they are young,” the study suggests. While expanding communication options, the agency strives to “The people [who] work with independent agents tend to interact with customers in the way they prefer, which can range stay with them. It’s a loyal group,” Freidman says. from mail to email to text messaging, she says.

The survey also showed that younger auto and homeowners “We’re moving at warp speed now and it’s want insurers to communicate with them in different ways, not going to turn around so we’ve got to including through mobile applications and online services. adapt,” she says. “At the same point, we’re About half of auto and home respondents younger than 35 very sensitive to our longtime consumers said multiple channels of communication were influential in and we still mail letters and do the things their decision to change carriers. that are important to them.”

“Insurance agents and their carriers are going to have to Author: Victoria Goff— Online Editor, Independent continually upgrade the capabilities they offer in order to stay Agents Magazine

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 8 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 9 GLENDALE

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© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 10 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 11 Association hears insights on economy, health care and top presidential election issues. Mort Kondracke Mort Kondracke, FOX News political analyst and senior editor for “My guess is that they’ll push it down again,” he added. Roll Call, and Fred Barnes, FOX News political analyst and founder of the Weekly Standard, offered political insight on a range of issues In the meantime, the Supreme Court’s expected decision on the during the Big “I” Legislative Conference & Convention. Bob constitutionality of the health care law—viewed as Obama’s Rusbuldt, Big “I” president & CEO, moderated the political panel. signature achievement—could also affect the outcome of the election. The Big “I” Legislative Conference & Convention is the insurance industry’s best-attended, most effective legislative meeting. This “If it’s struck down that will be year’s event was held April 25-27 in Washington, D.C. hugely harmful to his reelection chances,” Barnes said. The state of the economy over the next six months will play a pivotal role in this fall’s presidential election, said the two political There are still challenges for analysts who gave opposing predictions of who would win the Romney, who was governor when contest. Massachusetts passed its universal health care law, Kondracke said. Fred Barnes Rusbuldt asked the commentators to give their presidential prediction: either Democratic President Barack Obama or likely “What I want to see Mitt Romney come up with is his alternative to Republican challenger Mitt Romney, the former Massachusetts Obamacare,” he said. “He says he’s going to repeal it, but he doesn’t governor. talk about replacing it.”

Kondracke said he is “not happy” with either candidate, but Barnes is co-founder and executive editor of The Weekly Standard. predicted Democratic President Barack Obama would remain in He previously served as senior editor and White House the White House, saying he could “defend himself on the basis of correspondent for The New Republic, covered the Supreme Court what he’s done” against Romney, who he thinks “doesn’t relate and the White House for the Washington Star, and served as the to people.” national political correspondent for the Baltimore Sun. From 1998 to 2009, he was host, along with Kondracke, of the Beltway Boys on Yet that doesn’t mean it would be an easy victory. He said he FOX News. Barnes also appears regularly on FOX’s “Special Report expects the economy will worsen between now and the election, with Bret Baier” and has also appeared on “FOX News Sunday,” particularly the European financial crisis that will have “ramifications “CBS This Morning,” “Nightline,” “Meet the Press,” “Face the for the U.S. banking system.” Nation,” “The NewsHour with Jim Lehrer” and “The Daily Show with Jon Stewart.” “My guess is that the world is back in crisis and Obama will suffer from it,” he added. Kondracke has been a journalist for nearly 50 years, 45 of them in Washington, and Barnes picked Romney over the incumbent president, saying his has covered nearly every phase of American policies promote government spending over private investment, politics and foreign policy. In 2011, he retired after 20 years as which would better spur economic growth and job creation. executive editor and columnist for Roll Call and remains with the publication as senior editor. Kondracke also writes a weekly column “I don’t think Obama can dodge the fact that his record is out "Pennsylvania Avenue" on national politics, domestic and foreign there,” he said. policy that is syndicated nationally. He has been a regular commentator for the FOX News since October 1996, was co-host After the election, federal lawmakers will have to resolve several of the weekly political show, “The Beltway Boys,” and is currently a financial issues, including deciding on expiring Bush-era tax cuts, the panelist on Special Report with Bret Baier. size of Medicare reimbursements and whether or not to raise the debt ceiling, Kondracke said. The end-of-year deadline for dealing Article provide by: Margarita Tapia—Director of with the issues is a result of elected officials on both sides kicking Public Affairs, Independent Insurance Agents and “all the important cans down the road,” Kondracke said. Brokers of America, Inc.

The Big “I” developed the Best Practices line of tools and seminars to help members maintain and improve the value of their agencies.  So how much should I be paying my producers Since 1993, a library of high-quality materials has helped thousands (assuming I can find good ones to hire)? of agencies contrast, evaluate and enhance their performance in areas critical to their continued success. Don’t feel alone. This is one of our most frequently asked questions. Keeping in mind none of this information is meant to prescribe Within the materials are answers to common questions for agencies. exactly what you should be paying anyone, the good news is Best Have you ever wondered: Practices has a great deal of guidance for you. For current financial numbers on producer compensation and activity levels from the BP  Are there specific guidelines available for determining agencies, see the latest study and update. For a discussion of how to how heavy a customer service representative workload find, hire, compensate and train quality producers, along with should be? practical charts and worksheet, use the Top Producers: Discover, Train, Reward tool. That depends a great deal upon the job description for CSRs in your agency, and These and many more answers, suggestions whether you divide your CSRs by personal and benchmarks can be found within the Best lines, commercial lines and group life-health. Practices resources. To find out more and to If you are looking for productivity numbers order any of the tools, visit the Best Practices (such as average number of CSRs for your website. Go to http://www.iiaba.net/ and click size agency, average commissions serviced, on Best Practices in the drop down menu under average pay and how the work time is Member Resources. For questions, email Best typically spent), see the current Best Practices at [email protected]. Practices Study Update. If you are looking for a description of the job role a CSR is theoretically supposed to be performing, see Customer Service Made Simple.

BIG “I” PRAISES HOUSE PASSAGE OF TAX RELIEF LEGISLATION

Bill would spur small business job creation.

The Independent Insurance Agents & Brokers of America H.R. 9 would allow businesses with fewer than 500 employees to commended the U.S. House of Representatives for passing deduct up to 20% of their income taxes for one year, regardless of legislation, H.R. 9, the “Small Business Tax Cut Act of 2012,” that whether the business files under the individual or corporate tax would provide qualified small businesses with a new tax deduction. code. Also, the bill would cap the deduction at 50% of wages paid to House Majority Leader Eric Cantor (R-Virginia) introduced the bill employees. in March, and more than 42 members of the House signed on as co-sponsors. “This is positive, straightforward, no-nonsense legislation,” said Charles E. Symington, Big “I” senior vice president of government “The Big ‘I’ supports H.R. 9 and is pleased to see legislation that affairs. “H.R. 9 would allow small business to keep more of what they would encourage small business job growth,” says Robert Rusbuldt, earn, encouraging them to expand their operations as well as retain Big “I” president and CEO. “If signed into law, the bill promises to be and hire new employees. In these times of economic uncertainty, this beneficial for thousands of Big ‘I’ members and their small business legislation would provide a much-needed boost to our small business clients. We are grateful to Majority Leader Cantor for taking a membership.” pro-active role in supporting efforts to spur job growth on main street America.” Article provide by: Margarita Tapia—Director of Public Affairs, Independent Insurance Agents and Brokers of America, Inc.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 13 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 14 Proposed Regulations Create New Retirement Planning Opportunities

ver the past 30 years, 401(k) the company's brochure. Assuming an inflation plans have emerged as the dominant rate of 2.5% per year, the annual payout is retirement vehicle. But many people equivalent to $18,118 in today's dollars. do not realize that 401(k) plans were not created as the sole retirement plan He would receive about half that amount— vehicle. Treasury Department’s $21,741 per year—if he purchased the same contract at age 60, and $15,439 if he bought it at Ted Benna, the creative interpreter of proposal would 65. That's equivalent in today's dollars to annual Internal Revenue Code Section 401(k) payments of $11,727 and $9,422, respectively. that was a subset of profit sharing plans, accommodate use of Female policyholders receive slightly less postured the provision would allow for longevity insurance. because statistically they have longer life spans. employees to contribute to the plan and not just solely rely on the employer’s To counter the erosive effects of inflation, contribution. At that point in the U.S. insurance companies, including MetLife and The economy, the predominate plan was the Hartford, offer longevity products with an defined benefit retirement plan, which by Dave Evans inflation hedge but the cost is significantly more. provided a monthly stream of retirement income for the retiree’s lifetime and Meanwhile, a white paper by the Council of typically a 50% lifetime annuity for their Economic Advisors estimated that, for example, spouse. a 65-year-old would have to pay $277,500 for a $20,000-a-year annuity that started immediately, Given the myriad of influences such as tax but only $35,200 for one that started at age 85. policy, accounting rules and global competition, many companies—and now The problem is 401(k) plans have minimum a number of state retirement systems— required distributions (MRDs) that enforce shed their defined benefit pension plan in people taking their distributions beginning at age favor of a defined contribution plan, which 70 1/2 if they are no longer working at their usually involves a 401(k) provision to allow company; 5% owners must take their the employees to contribute. distributions regardless if they are still working. This creates a problem for longevity insurance The absence of the defined benefit plan taken through a retirement plan because the and the resulting predictably of a monthly payment doesn’t commence for years. retirement payment have left a vexing issue for workers trying to plan for Recently, the Treasury Department issued retirement, including longevity risk—that Proposed regulations that will accommodate is, outliving one’s retirement income. the use of longevity insurance and annuities, Following the 2008 recession and clarifying the deferred aspect of the annuities significant decline in the stock market, there was a renewed would not violate the MRD rules within interest and focus by mutual providers to tighten their target prescribed limits. The regulations cap the maximum amount of date retirement funds—i.e. 2020, 2030, 2040—and other retirement plan money that could be spent on longevity insurance at so-called guaranteed income vehicles to provide new investment 25% of the account balance, up to $100,000. and planning tools. Independent agents may want to monitor offerings from One of the more intriguing ones has been the development of insurance companies to determine if they wish to offer this longevity insurance, which is a form of insurance that pays a benefit evolving insurance to their clients. at a predetermined age. For example, a man who pays $50,000 for MetLife's longevity insurance product at age 50 would receive Author: Dave Evans—IIABA Senior Vice-President and annual income of $42,997 once he reaches age 85, according to Executive Director of Trusted Choice®

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E-mail address: ______

Seminar: ______2012 Classes and Dates Date of Seminar: ______Check enclosed for ______, payable to ITEC Charge to credit card below: June 13-15 CIC Life & Health Institute Phoenix Visa MasterCard  American Express June 19 CISR William T. Hold Personal Lines Seminar Phoenix June 26 CISR Dynamics of Service Seminar Phoenix Expiration Date of Credit Card:______Security # ______July 10 CISR Personal Automobile Seminar Phoenix Card #: ______July 12 CISR Agency Operations Seminar Flagstaff July 17 CISR William T. Hold Personal Lines Seminar Tucson Print Name: ______July 19 CRIS Property Insurance for Contractors Seminar Phoenix Card Billing Address: ______July 25 CISR Insuring Personal Residential Seminar Phoenix July 26 CISR William T. Hold Commercial Lines Seminar Lake Havasu Cardholder Signature: ______August 1 CISR Agency Operations Seminar Phoenix August 2 E & O Loss Control Seminar Phoenix Registrations will not be accepted without form of payment. August 8-10 CIC Agency Management Institute Phoenix Cancellation Policy: ITEC/CISR Cancellations received within 7 business August 14 E & O Loss Control Seminar Flagstaff days of a seminar will incur a $25 non-transferable fee. CRIS Cancellations September 6 E & O Loss Control Seminar Tucson received within 7 business days of a seminar will incur a $50 September 11 CISR Insuring Commercial Property Seminar Phoenix non-transferable fee. CIC Cancellations received within 7 business days of September 13 CRIS Workers Compensation for Contractors Seminar Phoenix an institute will incur a $105 non- transferable fee. September 13 CISR Agency Operations Seminar Lake Havasu ADA Policy: We comply with Title III of the American with Disabilities Act September 18 CISR Insuring Commercial Casualty Seminar Phoenix Please let us know in advance of any special needs. September 18 E & O Loss Control Seminar Lake Havasu September 26 CISR Personal Automobile Seminar Phoenix October 4 CISR Personal Automobile Seminar Tucson October 10-12 CIC Personal Lines Institute Scottsdale October 17 CISR Insuring Personal Residential Seminar Phoenix

Registration Fees CISR Seminars — $160.00 CISR William T. Hold Personal or Commercial Seminars — $160.00 CISR Dynamics of Service—- $170.00 CRIS Seminars — $195.00 or $220.00 Non-Member ITEC Seminars — $80.00 or $105.00 Non-Member E & O Loss Control — FREE to Members or $100.00 Non-Members Non Solicitation & Non-Piracy Agreements — FREE to Members* CIC Institutes — $395.00 CIC Ruble Graduate Seminar — $420.00

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 16 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 17 Annual gathering brings together insurance industry leaders. Rep. Pat Tiberi (R-Ohio), chairman of the U.S. House of because so many provisions are temporary. Representatives Committee on Ways and Means Subcommittee on Select Revenue Measures, recently addressed the As a result, he said America is losing businesses, in part due association’s Large Agent/Broker and CEO dinner. to the burdensome tax code. “We’re losing more and more of our great American companies to places outside of the Tax reform for C corporations isn’t enough, said Rep. United States,” he said. “Why shouldn’t it be the other way Tiberi to attendees. The gathering of industry leaders, around? Why shouldn’t the U.S. be the place that people carrier CEOs and some of the largest agents and want to start a business, keep a business, grow a business?” brokers around the country is held annually during the Big “I” Legislative Conference & Convention in “The Big ‘I’ has a long history of working closely with Rep. Washington, D.C. Tiberi on key issues that impact independent insurance agents and brokers, small businesses and insurance He added that with two thirds of small businesses consumers,” says Robert Rusbuldt, Big “I” president & CEO. “Rep. organized as pass through entities such as S Tiberi is a resilient and outspoken champion for tax reform and corporations, lawmakers need to include those entities efforts to promote small business and job creation by all in any reform proposal as well. businesses.”

“It’s great to be with people who are the backbone of our Rep. Tiberi has been a lifelong resident of Ohio’s 12th economy,” Tiberi said. Congressional District which is a mix of urban, suburban and rural areas in the central part of the Buckeye State. He is a 1985 graduate Rep. Tiberi serves on the House Committee on Ways and Means of The Ohio State University. He previously worked as a realtor and which handles tax, Social Security, Medicare, trade and health care served in the Ohio House of Representatives. issues and he is the chairman of the Subcommittee on Select Revenue that has jurisdiction over federal tax policy. Rep. Tiberi The Big “I” Large Agent and Broker Roundtable, a group which focused his remarks on the implications of the tax debate and advises the Big “I” Board of Directors on topics important to large current tax code on American businesses and the economy. agents and brokers, hosts the annual dinner. The group has recently been working on issues such as agent licensing reform, technology If Congress does nothing, Rep. Tiberi explained that the country will and workflow efficiency, and industry workforce recruitment. have the largest tax increase in American history on January 1. Large agents and brokers from around the country, as well as “We have a huge challenge with tax reform,” he said. “And it’s much regional and national carrier CEOs including many from Rep. Tiberi’s bigger than you realize. And it’s much bigger than my colleagues home state of Ohio, were in attendance at the event in late April. realize.” Article provide by: Margarita Tapia—Director of Public Rep. Tiberi noted that the current tax code is “byzantine” and Affairs, Independent Insurance Agents and Brokers of doesn’t allow businesses to make decisions for the long-term America, Inc.

Trusted Choice® has recognized Arizona’s own Al Yont, as a decades. General Southwest has been his home tireless man when it comes to serving his community. Al is the for nearly 20 years. He is a proud father of two, President and General Manager at General Southwest Insurance a former U.S. Army Captain, and a graduate of in Phoenix, and an applicant for the 2012 Trusted Choice® Dan the University of Nebraska. Fulwider Award for Community Involvement. Trusted Choice® was launched by the Independent Insurance On behalf of Al and General Southwest, Trusted Choice® has Agents & Brokers of America and several independent agency awarded $250 to Al’s chosen charity, “Greater Phoenix Youth at companies to highlight the benefits independent agencies and Risk.” His dedication to his community embodies the giving brokerage firms offer consumers—choice of companies, nature of the nearly 300,000 independent insurance agents and customization of policies and advocacy support. It is the premier brokers across the country. consumer brand for independent insurance agents and provides national advertising and other strategic tools Al has worked in underwriting, marketing, sales and management to reach consumers. For more information, go to during his esteemed career, which has spanned more than four www.TrustedChoice.com.

A J.D. Power and Associates study has found that the auto Associates. “In most cases, shoppers can compare many policies insurance shopping rate has reached the lowest point in the past five online and narrow down their search field entirely via this years, with only 25 percent of insurance customers indicating they self-service paradigm. From that point, they can then decide if they shopped for a new insurer in the past 12 months, down eight need to speak with an agent or to continue their online purchase percentage points from 2011. process.”

The study, now in its sixth year, examines consumer shopping and Bowler notes that customer retention rates are increasing at a time purchasing behaviors and overall satisfaction among buyers who when auto insurance companies are spending more money to entice recently purchased insurance. While only one-fourth of auto customers to switch insurers. Industry-wide, advertising insurance customers shopped for a new policy, 43 percent of those expenditures increased by 12 percent in 2011, compared with 2010, shoppers switched providers—the highest rate since the study first according to an analysis of statutory filings data for 2011 performed began measuring retention in 2008, and an increase of 3 percentage by Dowling and Partners, LLC. According to the report the points from 2011. industry spent $5.7 billion on advertising and allowances in 2011.

Regarding how consumers are shopping, J.D. Power says 52 percent As for consumers’ satisfaction with their shopping experience at of consumers start their auto-insurance-shopping process online, and different auto-insurance providers, The Hartford ranked highest on 73 percent visit at least one insurer's website at some point during J.D. Power’s 1,000-point scale with a score of 857. J.D. Power the shopping experience. says The Hartford "performs particularly well in policy offerings and price." Liberty Mutual scored second with 850, followed by “More significantly,” says J.D. Power, “32 percent of customers American Family (845), Auto Club Group (842), and Nationwide solely obtain quotes online, and today 34 percent of all recent (841). shoppers state they would most prefer to purchase their new policy online.” The industry’s average score was 828.

“Shoppers now expect to be able to visit an insurer’s Web site and Author: Russell Reiten—Government Affairs, complete their purchase in the same visit,” said Jeremy Bowler, Independent Insurance Agents and Brokers senior director of the global insurance practice at J.D. Power and of Arizona, Inc.

The chances are good that among your personal lines clients and options. Covered items should other contacts there are several serious collectors. What do they be insured for their full collect? The simple answer is practically anything. Some of the most collectible value. Additional commonly collected items include fine art, sports memorabilia, features important to your wine, rare books, stamps and coins, antique rugs and tapestries, customers include no musical instruments and guns. But the variety of items that attract requirement for appraisals at the attention of dedicated collectors is virtually unlimited. the time of application and coverage for items stored away from home, such as in a storage facility. Insuring these types of collections under a homeowner policy can be expensive and challenging. Many carriers require detailed appraisals, MiniCo Insurance Agency, LLC, offers a fine art and the coverage may be limited to replacement value, which is often and collectibles insurance product that features far less than the collectible value of an item. Plus in today’s insurance these benefits as well as competitive agent market, filing a claim against a homeowner policy may leave an commissions with no production requirements. insured vulnerable to premium increases at renewal or the possibility For more information, contact MiniCo at (800) 447-8383 of non-renewal. or visit www.minico.com.

Purchasing a separate collectibles insurance policy has many benefits Article provided by: Dan Sommer—MiniCo for your clients who are serious collectors. Look for coverage with Vice President of Marketing and Communications, limits up to one million dollars and low or zero deductible Chief Marketing Officer

John Thune John Barrow

Lawmakers weigh in on health care, election year politics and the economy.

Sen. John Thune (R-South Dakota) and Rep. John Barrow Regardless of whether or not the court upholds the constitutionality (D-Georgia) addressed the Independent Insurance Agents & Brokers of the law, Thune said health care will be a huge issue in this year’s of America membership at the association’s annual Legislative presidential election. Conference & Convention held on April 25-27 in Washington, D.C. “Both sides are going to be trying to win the argument with the Thune and Barrow delivered keynote speeches at the legislative American people about how best to deal with the health care issue,” conference breakfast which occurs just prior to the association’s he said. annual Big “I” Day on Capitol Hill. Every year, approximately one thousand agents and brokers visit Capitol Hill offices to lobby Thune said lawmakers need to come together to rein in government members of the House, Senate and their staffs on issues that spending and craft policies to promote economic growth and boost directly impact independent agents and consumers. domestic energy production to change the direction of the country. “If you look at where we are today, we need to get the country The lawmakers weighed in on numerous top issues including health turned around—or we are heading for a train wreck,” Thune said. care, election year politics and the economy. Agents asked the lawmakers what they thought would happen to the Patient In addition, lawmakers also need to enact comprehensive tax Protection and Affordable Care Act (PPACA), the constitutionality reform, including simplifying the tax code and creating solutions for of which is under consideration by the U.S. Supreme Court. S corporations and limited liability companies, corporate structures often used by agencies, that end up paying at a higher individual tax rate because they’re considered pass-through entities, he said.

“That’s why this debate about the individual tax rate is so important,” Thune said. “Everybody seems to think that that Thune said that while he “can’t predict how it’s going to come out,” just affects the rich in this country, but he thinks the court will find the individual mandate to be what they don’t realize is how much of unconstitutional by a narrow vote, based on the court’s past small business income is actually paid at decisions where they had “taken the side of individual liberty when those higher rates, the individual rates.” they looked at these issues.” He said he thinks that Mitt Romney, the Republican presidential candidate front-runner, will be elected president this fall over The individual mandate is the incumbent Democratic President Barack Obama. lynchpin of the law, he said, “because if they decide to kill off “People in this country—when they are concerned about their the individual mandate and economic futures and when there is a lot of anxiety about declare it unconstitutional, then pocketbook, bread and butter, kitchen table issues—are going to be for all intents and purposes, it’s looking for a different direction,” he added. sort of a house of cards after that.” While many believe Thune is on the short list of vice president contenders, when asked whether he would end up being Romney’s Similarly, Barrow said if he “had running mate, he said “I don’t expect to be there.” Instead he to bet the farm,” he would anticipates he will ultimately be “in the Senate, hopefully working predict that the court would with a new president to take on big issues.” strike parts of law, such as the individual mandate, and leave “In order to solve big problems, you’ve got to have presidential the rest intact. leadership,” he said.

“What worries me is if we carve out parts of it, we could have Article provide by: Margarita Tapia—Director of something that Congress never intended as being the law of the Public Affairs, Independent Insurance Agents and land,” Barrow said. “It would be the worst of all possible worlds.” Brokers of America, Inc.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 20 The evidence led straight to Karlyn Ann Carlson and her to pay staff health premiums. boyfriend. The Northfield, MN, woman’s house burned down, with Employees’ policies thus lapsed, a pre-fire value of $238,000. Investigators found two plastic gasoline leaving them with unpaid surgery and cans in a hallway and a clear line of fuel also ran from one side of the treatment bills. The remaining staff house to the other. Carlson had recently spent their own money to feed residents, and washed residents' rented a storage unit that held a number of laundry in their own homes. Houser also had stopped paying for personal or sentimental items. She called USAA basic services, and never replaced broken air conditioning units, less than 12 hours after the fire but later washing machines, or water heaters. Roofs leaked water, and ceiling refused to provide the insurer with basic tiles eventually fell on residents' beds. Rotting garbage piled up near information and sworn statements that would the homes when trash collection services went unpaid. Humidity allow USAA to pay the claim. Her boyfriend forced residents to keep windows open, allowing in foul odors, Michael Dale Stauffacher earlier pleaded guilty insects, and rodents. But none of this mattered to Houser, who Stauffacher to setting the fire. He was an incriminating mess bought his ex-wife a $1.4-million home with Medicaid money. He after the fire. Stauffacher’s eyebrows appeared also put her on his payroll as a nurse, though she never worked short and discolored. He also had dyed his hair and shaved his there. He bought Mercedes-Benz cars, furniture, and vacations, torso. He had reddened skin around his neck, a blister-like mark on while planning the construction of several hotels using the stolen his right thumb, and a pink sore on his right index finger. Police money. Houser constructed his own conviction, and faces 20 years collected hair samples from Stauffacher’s right hand, eyebrows, and in jail when sentenced. eyelashes. A forensic scientist determined the hairs were burnt or singed. Nader Musa stole premiums from elderly clients while pretending he was an agent long after losing his license, Illinois Fitzgerald Anthony Hudson screwed up every effort to be a prosecutors charge. An 83-year-old woman wrote two doctor. He dropped out of college and a med school in the health-premium checks totaling $6,838. The Belleville man allegedly Caribbean island St. Maarten, then needed nine years to graduate told her to make the checks out to him and that he would buy the from a medical school in Dominica. He finally got a New York coverage for her. She later called the insurer to verify payment, but license, but kept getting fired from hospital jobs. At one ER, Hudson the insurer said it had no agents in the area. She then called the misdiagnosed a patient with grave risk of heart attack, and another Illinois insurance department, which said the department had with possibly fatal intestinal blockage, the New York health revoked his license. An 88-year-old client discovered the alleged department said. Hudson finally lost his license within two years of fraud when her insurer notified her that her health coverage had receiving it. But he never was legally a practicing doctor because he lapsed for nonpayment. Once again, Musa allegedly had told her to earned his degree by lying about his academic credentials, the state write the $3,850 premium check out to him for the 24-month policy. says. Which means Hudson fraudulently billed Medicare $200,000 The check never reached the insurer, but was cashed instead at a because he never was a real doctor, the feds say. He faces up to 20 Regions Bank. There may be more victims, officials say. years if convicted. When standard persuasion did not work, 35-year-old Kelechi Ricardo Felix’s LowJack was a Chukwueke used threats and intimidation to coerce friends, lowlight of his life. The Hisperia, relatives, and neighbors to take part in a wide-ranging fraud scheme. AZ, man told his insurer that The Hercules, CA, resident teamed up with two cronies to milk 14 someone stole his vehicle. But he insurers with claims for staged crashes, fake home and auto did not know a LowJack system burglaries, and vehicle give-ups. Fraudulent claims included falsified was installed. Police received a police reports, traffic collision reports, personal-injury claims and LowJack notification of a stolen vehicle. Several deputies responded vandalism claims. Investigators spent three years on their trail, and found the vehicle hidden in the back of a nearby home. Four reviewing more than 40,000 documents and serving numerous suspects, relatives who allegedly helped him set up the suspected search warrants. They recovered supposedly stolen expensive insurance con, were detained. No word on potential sentence if electronics, diamond rings, more than $60,000, and other valuables. Felix is convicted. The scheming team was arrested in Nebraska, Illinois, New York, and various locations in California, and charged with 289 felonies this George Dalyn Houser bought luxury cars and a $4.2-million week. The ring, now dismantled. was one of the largest criminal hotel while impoverished residents of his Georgia nursing homes insurance fraud conspiracies in Contra Costa County history, starved near their bodily wastes. Sixty-three year old Houser and officials say. Twenty have been convicted with Chukwueke receiving his wife ran three nursing homes, stealing $32.9 million in Medicaid seven years in county prison and the cronies three years in county money intended to care for the residents. Meanwhile, his nursing jail each. homes suffered food shortages bordering on starvation; leaking roofs; virtually no nursing or cleaning supplies; poor sanitary To learn more about insurance fraud and simultaneously conditions; major staff shortages; and safety concerns. Employee earn CE credits, visit the BIG”I” VU Fraud Training Center paychecks bounced, and Houser pocketed money that was meant for on-line courses, resources and daily news.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 21 © Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 22 There have been questions and discussions on “should an agency allow texting by its clients and staff and if so, how do we control Errors & Omissions and documentation in our agency management system?” ______Empowered clients are going to communicate with agents in the manner most convenient to them, so the real issue becomes how is the agency going to manage texting if the by Pat Alexander client prefers to use it?

There are several concerns agencies sent to the business email address for attachment into the agency have with texting. We’ll look at some management system. This would be the best approach when the current “best practices” for managing conversation is just a question and answer session. these communications, and the 3. It is important for everyone in the agency to learn how their technology options for managing texts and importing them into your specific phone works for text forwarding: systems as I understand them. Your technology professional should be a. iPhone – http://iphonefaq.org/archives/97335 ; Another approach able to assist you with the details. is to take a picture of your iPhone screen when the text is Agency Concerns showing, by pressing the on/off button on the top of the phone simultaneously with the application change button on the bottom 1. If clients are texting staff members on their personal phone, a front of the phone. This approach creates an image of the entire number of issues come to mind: text message and the picture can then be emailed to your Outlook  What if you staff member is on vacation where their phone is not account. functioning or they are just too bust to take care of the issue? b. Android Phones - Each manufacturer handles this in a different  What if the staff member is ill and not able to pay attention to way and I find even some differences within a manufacturer incoming messages on a real-time basis? between their phones. It is best to check the operating  What if the individual is actually no longer a staff member? information for your specific phone for this function.  What if the individual says they will take care of the request and Implementing an Agency Text Address does, but doesn’t document in the system and something is not correct? I also recommend that the agency implement a way to receive text messages directly. I understand from my tech friends that many VoiP I have heard more than one agency principal flatly state that they phone systems can have a number set up for receipt of text messages. I weren’t going to allow any texting. In today’s world, texting is a reality. am also advised that this works differently with every system and that It is not only young clients that are engaging in this act. Texting you will need to work with your phone system provider to get this set eliminates telephone tag, and results in an almost instant response. up and implemented. Once set up, someone in your agency will need This is what most of us are programmed to want. to monitor this number during business hours so that the expected immediate response can be managed. Current “Best Practices” I recommend you consider taking the following approach with regard If your agency does not have a VoiP system, another option available to texting: for receiving texts at a number that you control is to set up a Google 1. Do you want to be relevant to your client base? If so, then you Voice number at https://www.google.com/voice. In the Settings section must embrace this technology. of your Google Voice account, you will find a place to show the email 2. Set standards and best practices. These really are no different than address for Text Forwarding. handling face-to-face conversations, phone calls, emails, etc. Your standard should be that all conversations with the client or with When you receive these text messages, they should then be forwarded others about the client’s account are to be documented in the to the Outlook email address of the individual in your agency who will agency management system or the system which you are using to be handling this client. Once the number is set up, you should promote collect client data. it to your clients, so that those who want to communicate in this 3. Be pro-active and determine how to best receive texts at agency manner can do so. When agency employees receive text messages on level as quickly as possible. their phones, they should let that individual also know there is a 4. If your client and someone in your agency are friends, inevitably number that is attended during business hours and would get attention there will be a text on a personal phone. Define, train and even when the employee is not available. implement the process to get this moved to an agency level as quickly as possible. Finally, some important points about texting to keep in mind: Forwarding Texts to Email 1. If the client texted you, that is how they would like to Here are some thought on the process from users who have already communicate, so at least your initial response should be in a text. addressed this issue: 2. If the client texted you, they expect an immediate response as that 1. As soon as the initial text is received on a personal phone, is what the common expectation is with texting. forward it to your business email address. Text a response back to 3. Your employees should know the agency’s procedures for the client from your business Outlook account. The client's text documenting text messages in the agency’s system, just as they response will come back into the email which will let you would other communications from clients and business partners. accumulate the stream of the conversation which can then be attached to the agency management system. Author: Patricia Alexander, CIC—Insurance consultant, 2. Some phones will allow you to capture an entire text coach and mentor. Article provided by Agents Council for conversation. In this case it could be acceptable that the Technology (ACT), part of the Independent Insurance conversation continue on that phone and then be captured and Agents & Brokers of America.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 23 hat do you expect in your life? Do you find that you feel expectations of others, to gain what we feel we didn’t receive as a disappointed or angry, and you are not sure why? Well, you probably child. had an expectation that wasn’t fulfilled. Expectations play a big part in our lives. Our expectations determine whether we feel good or bad - Types of Expectations happy or sad - content or angry - over what happens in daily life. They There are many different types of expectations that are based on impact how we feel about our looking to others for approval, respect, attention, and love; validation relationships, work, friends, and of our good self, qualities and success; to have control or power in people we meet on the street, special days situations; to be taken care of by others and so on. If we didn’t receive like holidays or birthdays and the world this when growing up then that would impact our expectations of around us. Expectations set up the judge and whether or not we might achieve these now. We may even jury on how we feel about our lives and unconsciously select or attract people to fill these types of ourselves. We give a great deal of power to expectations, who may not be able to do so. So, we sabotage our expectations! That is not to say that if ourselves and create failure from the very beginning. We may choose we don’t get what we expect that we shouldn’t feel sad or mad. Yet, if people that have similar issues to those from our past, like someone we know more about our expectations and where they come from, who has a similar temperament to our father or mother. So, we are then we can find ways to deal with them in a healthy manner. Then we recreating the past with all the old expectations in an effort to resolve can take our power back and have more choice in how we view and old issues. These situations will keep coming up until we are ready to interact with our world in the Insurance Industry. heal them. For example, many people seem to have, time after time - job after job, similar problems with their supervisors or co-workers. The Source of Our Expectations They need to trace the issues back to the original source, and work So, how do expectations work? Well, first we gather and accept our them out there before dealing with the present issues. expectations from a variety of sources, starting from a very young age. We learn much of our expectations from our families, which can Managing Expectations include what to expect of others and ourselves, how feelings should Now, how do we handle our expectations? First, it helps to be aware be expressed, and how problems should be handled. If we learned of what you expect, and disappointment is your first clue that an from our family that people could not be trusted, then that plays into expectation was unfulfilled. Ask yourself what did you expect? What our expectations of the world around us. Other expectations come were you looking for in this situation or this person? You might need from our religious beliefs (or those we have been brought up with); to dig around some to get to the primary issue. For example, if I what we see in the media - television, movies, magazines, etc.; and hoped for a birthday card from a friend and it didn’t come, then I what our society and culture holds as valuable and important. These would think of what I expected from my friend. What did I want and factors all impact different aspects of our lives, like how we expect to need from that person? The bottom line is I wanted to know that I raise our children or relate in our relationships. Or what we expect to was appreciated and accepted by my friend. Now, this is really do in our careers or believe of our limitations and responsibilities. An important if I didn’t feel appreciated or accepted by someone in my example of this is how media gives us definite and perhaps narrow past then I would have to deal with that first. views of gender, which influences what we expect from men and women. Evaluating Expectations Next, it is important to evaluate whether or not your expectation was The Struggle to Fulfill reasonable and realistic. Many times we have expectations that are not The next step is how our expectations are met or not met, and we reasonable or realistic, but that doesn’t mean that we are “bad” or have many unhealthy ways to try to meet them. Many struggle to fulfill demanding. It just means that we hope for things that, perhaps, we them by pushing or controlling situations to fit into the mold already didn’t get at some time in our life. Occasionally, I find myself expecting created. We may use manipulation, persuasion, passive aggression or my husband to know something I want or need without him being intimidation (with anger or tears) to fill our expectations. Or we might informed of my desires. What I am doing is wanting him to read my not do anything and allow ourselves to be disappointed so as to mind, which might be connected to my past where I didn’t always feel reinforce what we already believe about others or ourselves. When emotionally attended to. Acting on unreasonable or unrealistic our expectations are not taken care of, then we feel those around us expectations can cause intense disappointment and conflict with have failed us and that leads to anger and bitterness. We may feel others. When evaluating your expectations, be honest with yourself— used, abused and betrayed by others, which feeds into rage and is your expectation reasonable and realistic? For example, expecting distrust. Underneath the anger and betrayal is the feeling of not being yourself never to get angry or sad is pretty realistic. Lastly, be clear loved and accepted by others and that really hurts. These feelings are what you expect with others. You must be able to express your made even stronger by memories of similar experiences from our Expectations and not assume that others would or should know what past. Times when we had disappointments with our parents, siblings, you want. It’s difficult to get your expectations filled if you can’t friends, teachers and others. When we may have felt unloved or communicate them with others. rejected by those around us. This can even drive us to set up

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 24 Self-Expectations We have many, many expectations that we place upon ourselves, which should also be explored. What do you expect of yourself? Do you expect yourself to be a certain way? Do you expect yourself to be perfect, good and controlled? Do you judge and criticize yourself when you can’t be that way? Do you feel you should be taking care of others - perhaps filling their needs and desires before your own? Do you need to be in control and what do you expect of others? How do you handle conflict and why? Is it ok for you to be wrong or not know something? Do you believe that feelings must be handled in a Influencing Factors certain way, like never losing An exercise to help you explore your expectations is looking at one’s temper? Where did all these various factors that impact them. For team members, you might want expectations come from and why? When we can understand our to consider what you are looking for, and what do you need/want expectations and where they come from, then we can begin to select from them. How do you expect to handle conflict and communication those we wish to keep and begin to resolve those that hold us back. with them? Who has control and power in this relationship? Who We begin to gain more control and feel more satisfied with our lives. makes decisions and what is expected around that? How are feelings Expectations can bring hope, excitement and profitability to our team and thoughts shared? How much trust do you have in your team and into the entire organization. We just need to be sure that we are member? How much do you rely on each other? How do you define directing, not following, them in our lives. forgiveness and how does that affect your work relationship? What experiences, beliefs and values are impacting your expectations with Author: Dana Borowka—CEO of Lighthouse Consulting them? How do you approach problems and situations with your team Services, LLC (www.lighthouseconsulting.com) and author member - as a team or independently and what does that do to your of Cracking the Personality Code expectations? (www.crackingthepersonalitycode.com)

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It is the mark of a true professional to become 3. Discuss Use: I started to read the book skilled at writing thank you notes in this age of immediately and have found many great ideas email, voicemail, and text messaging. already. People like to know that you found their gesture or gift valuable. Sharing how you Demonstrating business professionalism is not are using the item or idea makes their effort difficult; it just takes effort and focus. more meaningful.

Applying simple aspects of business etiquette 4. Another Thank You: Thank them again for goes a long way in establishing our the gift. It's not excessive to say thanks again. professionalism, which builds our confidence and comfort in business settings. 5. Complimentary Close: Wrap it up with a close that expresses your final thought: 1. Greet the Giver: Dear Mr. and Mrs. Smith Regards, All the Best, Sincerely, Gratefully, OR Dear Jamie. It seems like an obvious etc. Then sign your name. point, yet many people will begin a note with "Hi" or even omit the greeting. 6. Send It: Even if your colleagues and acquaintances are not of the note-writing 2. Express Gratitude: Thank you so much for the book. variety, be the one who sets the precedent. The key is to keep it simple and specific. The point of writing the note is to create an expression of a Article provided by Big “I” Markets heartfelt sentiment. www.bigimarkets.com.

We all have the same amount of time in a day - 24 hours. or mailing address? It’s amazing how much of the day can be So why do some people seem to get a week’s worth of consumed looking for items in a messy, unorganized home, office, or workspace. Keep these areas clean and know where everything is. work done in a day, while others get a day’s worth of work Keep similar items such as business cards, contact information, files done in a week? on clients, and other items in one location. Keep keys, and items you use every day, in the same spot each time so you don’t have to More often than not, the amount of work people get done remember where you left them. If you’re messy by nature, take five during the day comes down to how effective they are at minutes at the end of the day to clean, organize, and get your work managing their time. So how can we get more done in less area uncluttered. time and make the most effective use of our 24 hours each Point to keep in mind: The average person spends 24 minutes a day day? looking for things they’ve misplaced. That’s almost 3 1/2 full work weeks a year. 1) Have a plan. You may have heard the saying: If you fail to plan, you plan to fail. Without a plan, you’re like a rudderless ship trying to navigate the 4) Find out where you’re wasting your time. Keep a time log for a week and keep track of where you spend your open ocean and your business will more than likely end up on the time during the day: Two hours on personal calls, 35 minutes on rocks. Sudoku, 24 minutes looking for Joe’s e-mail with contact information, an hour and 45 minutes at lunch with Keith, 11 minutes in line at Your plan does not have to be big and complicated, in fact, you want Costco. If you haven’t done this exercise before, you will be amazed it to be as simple and easy to follow as possible. The most effective where you end up spending, and wasting, a lot of time. “simple” plan is a list of important items you need to get done during the day, prioritized from most important to least important. The Point to keep in mind: Come up with solutions to this wasted time: most effective way to follow your plan is to start with the most time limits on calls, going shopping at slower times, etc. important task and work on it until it is done. After you finish the first task, move to the second most important item on your list and work on that one until complete. Continue in this fashion until you 5) Work hard, work smart finish your items or run out of time in the work day. At the end of Work when you’re at work. Develop a sense of urgency and work each day, make a list of items for the following day. hard only on work at work. Do just one more thing in the morning and another before you quit for the day. If you have to, start your Point to keep in mind: Studies have shown that every 15 minutes of day earlier and stay later. Be the hardest working person you know. planning saves you an hour of work. Follow the 80/20 Rule. This rule states that 20% of your work produces 80% of your results and vice versa. Spend time on doing 2) Have the self-discipline to stick to your plan. the 20% really well and delegate as much of the 80% as possible. Once you have a plan, you have to have the self-discipline to stick to Also, use best practices, don’t reinvent the wheel. Find the really the plan. Phone calls, e-mails, and other items, both business related successful people who are getting a lot done and find out what they and personal, will try to throw you off during the day. Your objective do. is to stick to your plan and not allow other distractions to get in your way. Granted, there will be times when you have to respond to The five steps above can double, triple, and even quadruple the other items during the day and temporarily jump off your plan, the amount you get done in the same amount of time. The bottom line: goal though is to keep those to a minimum. Remember, if you don’t Have a plan along with the self-discipline to do what needs to be stick to your plan, even the best plan in the world will be ineffective. done when it needs to be done. Work smart, but be willing to work as hard as you have to when you have to in order to get the job Point to keep in mind: If you leave a task, it takes an average of 10 done. minutes to get back to where you were before you left the task. Author: John Chapin—an award winning speaker, sales 3) Get organized. trainer, coach, and co-author of the gold-medal winning How much time do you spend during the day looking for things like “Sales Encyclopedia”, a comprehensive how-to guide on car keys, that important piece of paper, or someone’s phone number selling.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 26 Academy Award-winning actor Daniel Day-Lewis, known for his intense, thorough research into film roles he accepts, has reportedly dropped out of an upcoming film about an insurance claims adjuster after he spent just over half a day researching the role, his representatives have confirmed. The movie, about an insurance adjuster thrust into a world of lies, deceit and murder, was scheduled to being production in January. It is In a statement released by his publicist yesterday, Day-Lewis said, in unclear if Day-Lewis has received any of his reported $15 million part: “The script is good, the crew are good. Just spending an entire salary yet, and if so, whether he will be compelled to return it. day with (the claims adjuster) either yelling at people on the phone or Day-Lewis’ representatives would not confirm which company the getting yelled at by people on the phone, it just was too much. I don’t adjuster being studied by the actor worked for. know how these people do it. I’d rather play a customer service rep than one of these poor bastards.” A source close to the production said producers are hoping to recast the role as quickly as possible, with James Spader’s name being Lewis, who once spent months immersed as a cobbler in Italy mentioned as a target. “Depending on his schedule on ‘The Office,’” preparing for a character, confirmed that his time with the unnamed the source said. “Though, to be quite honest, no one really expects adjuster was the shortest amount of time he’d ever spent researching the show to get another year, what with it having jumped the shark a role. His statement concluded, “I’d rather spend 10 years working in years ago when Jim and Pam got pregnant the first time. the heat on some oil rig, like I did before doing ‘There Will Be Blood,’ for which I won my second Oscar, than deal with people on their auto Author: Brian DiMaio—Editor In Chief for accident. Never again. By God, never again.” www.TheDailyJournal.com.

HOW to MAXIMIZE your Linked Presence Setting up Your Basic Profile Employment History: It takes only a few seconds to upload your text resume to LinkedIn, and it will save you time creating LinkedIn needs to be a part of every producer's sales toolkit. the Work History section of your profile. You can amplify this This social platform provides an easy way to learn about, and field with your proudest accomplishments or particular reach out to, millions of businesspeople (also called prospects). responsibilities you want readers to know about. It's important In addition, all agency staff should create a profile. Unfortunately, to include the dates (and employer names) for each past many producers, as well as staff, don't take full advantage of the assignment so LinkedIn can match you up with colleagues who site's capabilities even though most are free. have worked alongside you.

In the next few weeks I'll share my top recommendations for Education: Including accurate dates in the Education section maximizing LinkedIn for networking and, ultimately, making of your profile will make it easy for the LinkedIn database elves sales. to match you up with classmates who may be on LinkedIn now, waiting for you to reach out and refresh the connection. The first step, if you haven't done so already, is to create your LinkedIn profile. Our first LinkedIn TechTips focuses Contact: The "Contact [Person X] for" section toward the on making your profile an effective tool: bottom of your profile is another great field because it forces you to think about what you want from LinkedIn and from your Your Name: Use your "known as" name. My given name is networking in general. This is where you get to decide which Stephen but I have gone by Steve for many years so that is types of contacts you want and don't want. Which conversations what I use in my profile and on my business card. are you willing to have, and which ones are a waste of your time? Headline: Also known as Title, this area provides you with a great branding opportunity. When another user Advanced User Profile Settings searches the LinkedIn user database, your name and headline are the only things they'll see before Additional Information: Your profile’s deciding whether to click on your full profile. Make Additional Information field lets you round out this statement count. "Commercial Producer" isn't the “Story of You” with the URL for your website much of a branding statement, but "Specialist in and/or blog, your Twitter account, honors and Protecting the Financial Future of Business awards you’ve won, and your interests (the books Owners" provides more focused information. you read, the sports you play or follow, or anything else you want to share). Remember, Photo: Make sure you add a photo! Upload any decent looking, people buy from people they like. Sharing information digital head-and-shoulders photo. You don't need business attire about yourself makes you more human and provides for this shot. Just use a photo that sends the message, "This is a additional networking points of contact. professional person," meaning (as you may have guessed) last year's beach vacation shots might not be your best pick. Specialties: The Specialties section of your LinkedIn profile is another great field. You can use terms like “Commercial Custom URL: Make sure your LinkedIn profile bears your Insurance Sales” and “Risk Management,” but you can also talk own stamp in the form of a personalized URL, like about your Irish wolfhounds and salsa dancing in this field. http://www.linkedin.com/in/TAAReport, if it is available. You Prospective clients and employers want real, live, entangled, should add this customized URL to your email signature, on interesting people on their teams. Business is personal these your business card, and anywhere else you have your days, and your outside-of-work interests (the ones you care to information. share, anyway) are part of your professional persona.

Summary: Here's where you can tell your own story. People Add Sections: A powerful new LinkedIn feature is Add buy from people, so use this freeform section to show your Sections, which lets you amplify your profile with additional personality. It's OK to have fun with your LinkedIn summary. information about past jobs, projects, organization memberships, It's where you can speak to the reader (the person viewing and more. Click on the Add Sections link to preview the various your profile) in a human voice. enhancements you can make to your profile just by providing a bit more background.

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 28 Personal Information: You can list as little them - you could lose your invitation privileges that way. or as much personal information as you want on your profile. It’s your choice. 2. Colleagues: The Colleagues feature lets you quickly see which LinkedIn members have worked with you during your career. That’s Applications: This is a very powerful feature incredibly handy because it can be easy to forget people, and you that allows you to add external information to probably don’t have current email addresses for long-ago colleagues. your profile and have it updated automatically. For example, if you have a WordPress website you can link the 3. Current Clients: At a minimum you should send a request to LinkedIn WordPress application to your site and have new content connect with current clients. If it is a larger organization, then you added Automatically to your profile. There are several applications will want to send a request to connect to every contact at the and I could write multiple articles about them, but for now I’ll just organization. say check them all out. 4. Address Book: If you have an address book on Gmail, Hotmail, By following these tips you now have a LinkedIn profile that Outlook, or another popular email application, you can download maximizes your visibility and networking prowess. your entire contact list into LinkedIn. Don’t panic - LinkedIn won’t send spam; it will just Building Your Network: Basic tell you which of these contacts already have a LinkedIn profile. Now you need to begin the process of actually building your network. Here are five tips for connecting with the people you 5. Classmates: Just as the Colleagues already know and are part of your existing networking group. Many feature does, Classmates lets you reconnect of your existing contacts may already have a LinkedIn profile. with people from your past. Invite people to join your network via the Classmates channel with caution, because this is where LinkedIn 1. Connections: Look for the green Add Connections bar invitation spam tends to congregate. As suggested above, a helpful on nearly every page of LinkedIn. Use this link to invite people you reminder in the body of your invitation can help refresh the memory know to join your first-degree (people with whom you are directly of classmates you haven’t been in touch with for a while. connected) network. In most cases you’ll need their email addresses. If LinkedIn gives you the opportunity (some invitation channels do, Taking these steps will allow you to begin building your and some inexplicably don’t), change the standard boilerplate network of people. invitation language to sound more like your own voice. And you might remind the person you are requesting a connection in the Author: Steve Anderson—Founder and Editor of The Anderson invitation how you know them and/or where you met them. Be Agency Report. Steve is also a regularly writing contributor to Rough careful of sending invitations to people who aren’t expecting Notes Magazine. Article courtesy of The Anderson Agency Report.

Association’s government aﬀairs chair calls for a long-term extension and much needed reforms.

On May 9, 2012 the Independent Insurance Agents & Brokers of $17.2 billion dollar debt, incurred in 2005, America testified before the United State Senate Committee on reveals some of the deficiencies of the program Banking, Housing, and Urban Affairs Subcommittee on Economic and has strained government resources. While IIABA is confident that Policy at a hearing titled, “The National Flood Insurance Program: the NFIP will recover, it is important that Congress shore up the The Need for Long-Term Reauthorization and Reform.” NFIP’s financial foundation and use this opportunity to enact needed reforms to ensure the long-term sustainability of the program.” Jon Jensen, an independent agent from South Carolina and chairman of the IIABA government affairs committee, represented the Jensen also outlined why the Big "I" strongly supports S. 1940, the association and was the only agent/broker witness at the hearing. “Flood Insurance Reform and Modernization Act of 2011,” by Jensen is president of Correll Insurance Group. Chairman Tim Johnson, which the Senate Banking Committee reported out unanimously last year. The association also supports In his testimony, Jensen outlined the reasons why the Big “I” believes H.R. 1309, the “Flood Insurance Reform Act of 2011,” similar Congress should modernize the program and shore up its finances to legislation which passed the House of Representatives with more better protect consumers in the future. He also stressed that the than 400 votes last year. marketplace, and the NFIP’s 5.6 million consumers, are increasingly frustrated with the nature of the short-term extensions granted to “We believe that while there are some differences between the the program and that they deserve the stability granted by a Senate and House bills, these minor differences could be overcome long-term extension. This discussion was particularly timely given by policymakers with a modest amount of effort,” said Jensen. that the program is set to expire at the end of the month. Author: Russell Reiten—Government Affairs, Jensen said the program is “far from perfect, which was made all the Independent Insurance Agents and Brokers of more clear by the devastating 2005 hurricane season. The current Arizona, Inc.

If someone were to hand you a blank check to enhance your bottom what’s significant is the fact that you are now forced to work harder line, would you let it sit on your desk and collect dust? Or, would to beat anything Sally presents to your clients. you fill in a number ending with a few zeroes and take some extra cash for doing no extra work. The big question is how you go about cutting Sally out of the picture before she even meets your client. You do it by selling life insurance, For most business owners, that’s and making it well known to your clients that you offer more than the ultimate no brainer. Even so, just auto and home coverage. it’s surprising that many Property and Casualty (P&C) agents are Let’s use this same example, but take it a step further. Let’s say Sally content with leaving money on the contacts your clients through a referral from a different source. Even table. Although they have a life if she can beat your current auto and homeowners rates, the clients insurance license, they fail to may opt to stick with you for convenience. Many individuals, families capitalize on the opportunity for and business owners prefer to keep all of their insurance in one extra commissions and improved client retention. place. If you offer life insurance and another agent doesn’t, it can only help you gain and retain more clients. At the top of just about any list of reasons why P&C agents are reluctant to sell life insurance is prolonged underwriting. They are Strategies for growing life insurance sales used to relatively quick turnaround with auto, home, and liability There are two popular strategies you can use to increase your life insurance, while a life insurance app seems to hang in limbo forever. insurance sales and bring more money into your agency. Many P&C Such a complaint has not fallen on deaf ears. Carriers are recognizing agents are already life licensed and passively sell life insurance. The the problem and many have developed express underwriting two strategies can take your current life insurance sales and increase processes, particularly for term life products. them significantly. The first strategy is partnering with a life insurance agent. There are also policies that don’t require a physical. While the cost can be slightly higher than fully underwritten plans, some agents and Partnering with a life agent clients prefer the convenience. There are many life insurance agents looking for a P&C agency to work beside. Life insurance agents are happy to give you up to 60% Additionally, P&C agents that work with a life brokerage agency of the commission on anything they sell to your clients. There are a discover that the process is as painless as possible. Simply submit the few important things to remember when selecting a partner: application and deliver the policy, while the brokerage handles  Be sure your personalities work well together. everything else.  Have a detailed and clear working arrangement: you want to be sure the life agent works with your clients on your terms. Benefits of selling life insurance  Prescreen any proposed marketing material that’s to be sent Beyond the obvious benefit of additional income by adding life on your behalf. insurance to your product menu, there are others to consider. As any good fisherman knows, the more hooks you have in a fish, the With the right combination, the additional sales that are generated less likely it will get away. The same concept holds true for your will provide consistent agency income. The feedback from these clients. Already insuring their car and home is a great start, but partnerships has always been positive. The P&C owners are quite adding life insurance can keep them from leaving. happy taking a cut of the life sales because even 50% of something is more than 100% of nothing. The life agent couldn’t be happier taking Let’s say Bob, a life insurance agent in town, gets referred to your the other 50% of the commission since it comes from a new client clients for life insurance. Bob sells the newly married couple two that came from a referral. It doesn’t get better than that. basic 20-year term-life insurance policies. Even if you’re making some life insurance sales currently, this At first glance, this may not seem to be a particular threat to your approach could dramatically increase your revenue. Life specialists business. However, there’s more to the story. Bob has a relationship are experienced in finding larger sales and even more of the smaller with Sally, a local P&C agent, and recommends that the couple have sales you haven’t tapped into yet. her quote their auto and home insurance. There is another hidden benefit in using this strategy. Experienced Whether they leave or not isn’t important, for this example. But life producers can easily identify large-case opportunities using

© Copyright Independent Insurance Agents and Brokers of Arizona, Inc.’s News & Views May / June 2012 Edition Page 30 advanced concepts such as buy-sell solutions, estate planning, and into a case where there is an advanced concept opportunity, you charitable gift strategies. won’t be alone. You will have access to advanced sales specialists within the brokerage, as well as from the life carriers. Whether The life insurance agent is also accustomed to asking for referrals you need a quick review or someone to join you in meeting with from each and every client, whether or not a sale is made. This will the client, everything is made as convenient as possible. undoubtedly generate more business not only for the life agent, but also for you as a P&C agent as well. For example, your life insurance partner, Joe, is meeting with the Smiths. He doesn’t get a life insurance sale, but asks them for referrals.

The Smith’s refer him to their friends, the Jones family, who recently had a baby and live in the next town over. Not only does Joe sell the Jones life insurance, but he also asks if they would like a free, no obligation quote on their homeowners and auto insurance. All of a sudden, you are collecting life commissions and receiving free leads, just because you partnered with a life insurance specialist. If after taking the time to read this, you’re still not convinced that Using the resources provided by a life brokerage firm breathing life into your P&C practice is a step you want to take, Another effective strategy is to use the resources of a life there’s no need to worry. No one can force you to cash that blank brokerage agency, one that represents a broad range of life insurance check sitting on your desk. companies. This gives you access to extensive marketing support opportunities, so you can send out company specific marketing However, you just may be missing out on an additional revenue pieces to generate more life insurance interest. stream that could take your practice to the next level. Don’t worry. Your competition may not hesitate at the chance to make that extra To make it even better, the brokerage firm takes care of everything money. in between the application and policy delivery. Author: Matthew Martin, Life Insurance Agent and Let’s assume you decide to try increasing your sales by working with Illustration Specialist—First American Insurance a brokerage agency without bringing in a life specialist. If you do run Underwriters in Massachusetts.

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