Missouri Agent November-December 2012

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treat yourself to all of the products and services MAIA brings you

For more details, contact your Business Development Manager or Customer Service at 1.800.442.0593 or [email protected]

The MEM DifferenceMissouri Employers Mutual has established itself as a consistent, credible resource for your clients’ work comp needs.

With 17 years of market leadership, we have earned our reputation of offering competitive rates combined with exceptional service and our personalized approach to workplace safety. And we’re just getting started.

For a true work comp partner for you and your clients, contact MEM, Missouri’s No. 1 provider of workers compensation.

www.mem-ins.com

WHAT DO YOU EXPECT FROM YOUR WORK COMP CARRIER?

www.worksafecenter.com

november-december 2012 missouriagent 3

contentsSpecial Focus: Products and Services5 Tips for a Successful Agency 24Products and Services 26Big “I” Markets 27Strategize, Evaluate, Contemplate 7Don’t Take Your Telephone for Granted 21MAIA staff profile: Monica Mize 22CISR Program Expands to 9 Choices 23MAIA Committees 29MAIA Staff 33Microinsurance Makes Big Social Impact 38

AdvertisersACUITY 8AmTrust North America 16BC&M 20Swiss Re 32 Burns & Wilcox 4Couri Insurance Associates 14EMC Insurance Companies 47FCCI Insurance Group 37Gateway Underwriters Agency 36IPMG 31

missouriagent

3315 Emerald Lane, P.O. Box 1785, Jefferson City, MO 65102-1785 • 800-617-3658 in Mo. Phone 573-893-4301 • FAX 573-893-3708E-mail: [email protected]: www.missouriagent.org

Publisher Larry CaseEditor Amy J. Hoffman, AIPAdvertising Manager Amy J. Hoffman, AIP

Officers of the MAIAPresident Doug Clift, CIC, St. LouisPresident-Elect Brian Harrison, CIC, ColumbiaVice President Louis Landwehr, CIC, CRM, Jeff CitySec’y-Treasurer Randy Baker, Kennett IIABA National Director Mitchell C. Mills, CWCC, ClintonPIA National Director Richard Minor, CIC, Hannibal Past President Byron Robison, Springfield

Board of DirectorsRegion 1 Ricky Baker, CIC, ChillicotheRegion 2 Darren Smiley, MexicoRegion 3 Chris Rupp, LUTCF, CIC, LibertyRegion 4 Shane Davolt, LibertyRegion 5 Lee Wilbers Jr., LUTCF, CLU, CFP, Jefferson CityRegion 6 Jim Baxendale, CPCU, St. LouisRegion 7 Jeff Mentel, J.D., St. LouisRegion 8 Jane Dobrinic, CIC, CPCU, St. LouisRegion 9 Randy Smart, MarionvilleRegion 10 Tom Montileone, CIC, CISR, AIS, SpringfieldRegion 11 Steve Rackley, CIC, CISR, GainesvilleRegion 12 Mark Gibbins, PortagevilleAt-Large #1 Wil Turner, CIC, BeltonAt-Large #2 Vickie Winkler, CISR, CIC, Ste. GenevieveAt-Large #3 John Patterson, ChesterfieldCo. Rep. Ben Finan, Maryland HeightsCo. Rep Jim Lay, CIC, CPCU, Springfield

Staff of the MAIAExecutive Vice President Larry CaseVice President of Operations Sheryl Van LeerVice President of Marketing Lindsay Griffin, AIPInsurance Services Manager Leona LoethenEvents Manager Jeanne Blomberg, AIPDatabase Administrator Laura BerendzenCustomer Service Representative Theresa Flippin, AIPCustomer Service Representative Monica Mize, AIPEditor Amy J. Hoffman, AIPMembership Services Representative Kelli Kloeppel, AIPEducation Director Emily KoenigsfeldAdministrative Assistant Dawn Patterson

MISSOURI AGENT (USPS 709-210) is published bimonthly by the Missouri Association of Insurance Agents, 3315 Emerald Lane, Jefferson City, MO 65109, phone 573-893-4301. Periodical postage paid at Jefferson City, Mo.

MAIA does not necessarily endorse any of the companies advertising in this publication. Subscription rate for members is $25 per year, which is included in dues.

Address & Other Changes

Notify Missouri Agent if you change your address, change your agency name, or drop or change producers (who are voting members of the association). Write to Missouri Agent, P.O. Box 1785, Jefferson City, MO 65102-1785 or e-mail [email protected].

POSTMASTER: Send address changes to Missouri Agent, P.O. Box 1785, Jefferson City, MO 65102-1785.

© 2012 Missouri Association of Insurance Agents

On the Cover: Tis the season to partake of all that MAIA offers its members — during the holidays and all year long. Story on page 26.

Volume 21, No. 6

JM Wilson 12MAIA Partners 48MEM Insurance 2Missouri Rural Services 40M.J. Kelly 38Ringwalt & Liesche 10SECURA 42Surplus Lines Association of Mo. 45The Hartford 18West Bend 6

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DepartmentsFrom the President 5The Legal Side 9Technicalities 10From the DIFP 13Technology 15News & Know-How 19

Errors & Omissions 34Regulatory Actions 43 Agency News 45Company Partner News 46Classifieds 46

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31637_BURNS_Rocket Pen_KS1_MO1_Missouri Agent_APPROVED.indd 1 10/8/12 2:04 PM


What I didn’t know I didn’t know

Doug Cliftpresident, MAIA

After a long, hot summer of record tempera-tures in Missouri, we can finally get outside and enjoy the cooler weather. I love fall; it’s always a season of change: changes in the weather, changes in the wardrobe (just ask my wife), changes in family routines as kids head back to school — which means that it’s also a time for learning new things.

I’ve had a lot of changes recently and also realize I’ve become a learner. From my first na-tional IIABA meeting, I’ve learned what I didn’t know I didn’t know. (Follow that?) I’d like to share my education with you. I’ve put some of MAIA’s best practices into place, and perhaps you will too when I share a little of what I’ve learned: How MAIA can help your agency be even more successful.

My first IIABA board meeting, which I at-tended with Larry Case and Mitchell Mills, was an eye-opening experience and something I wish all independent agents could experience firsthand.

The IIABA is a very large and powerful orga-nization with more than 22,000 members na-tionwide, but it is experiencing the same prob-lems many other national associations have: loss of membership and, more importantly, the challenge to stay relevant.

As I sat in a planning session with other state presidents, we learned that IIABA currently has 52 different “businesses” or programs. As we went around the table, we were hard pressed as a group to even name five of the 52!

We asked each other how all of these pro-grams can be relevant to our membership and whether they really create value. Easy questions to ask, but hard to answer since two-thirds of IIABA’s budget comes from revenue generated by members’ services and products.

My education continued as I brought these thoughts to MAIA’s board meeting in Septem-ber. As I was explaining my observations from the national meeting, I got a very good ques-tion from Wil Turner, who is our At-Large 1 representative: How many of our own members

in Missouri know the programs and services that MAIA provides, let alone the 52 national programs? I thought I understood our programs and services pretty well but decided to dig a little deeper and was surprised with what I didn’t know.

MAIA member services and products can easily be reviewed on our website. Some are national programs offered by IIABA. In order to better understand the features and benefits of these programs to our membership, I “in-terviewed” Larry Case. I was very surprised by some of the things I learned. Below are some highlights of the programs administered and run on the state level, which are relevant and bring value to our membership in Missouri.

E&O insuranceOne of the biggest programs we run is the sale of agent errors and omissions coverage with Utica Mutual and Westport. Of course, there are many competing programs, but I learned that both of these programs were designed by agents for agents.

Did you know that Larry and our staff meet with both companies every year? They review their forms and make recommendations on improving coverage to better protect our membership.

For those who have their E&O with other car-riers, can you truly feel comfortable you have the best coverage for the best price? I certainly feel better knowing MAIA is staying on top of this very important coverage for our agency. If you haven’t gotten a quote from MAIA recent-ly, I strongly suggest you give them a try.

Agents umbrella coverageAnother program, which I knew MAIA offered but I had never taken advantage of, is the agents umbrella program offered through Penn National and Swiss Re. This is another program designed by agents for agents. I found out that the Penn National umbrella provides excess coverage over your E&O policy and as

continued on page 41

fromthepresidentNo one writes Excess/Umbrella with the capacity and speed of Burns & Wilcox.

Put the power and speed of the Burns & Wilcox pen

to work for you: Solidify your clients’ coverage with

our breadth of proprietary Excess/Umbrella solutions.

Derived from our exclusive binding contract authority,

our assets allow us to quote and bind policies at rocket

speed. When it comes to securing your clients’ financial

interests, think fast. Think the largest independent

wholesale broker – Burns & Wilcox.

Commercial • Personal • Professional • Brokerage • Binding • Risk Management Services

Overland Park, Kansas | 913.451.3135toll free 866.476.0439 | fax 913.451.3156overlandpark.burnsandwilcox.com

St. Louis, Missouri | 314.819.0400toll free 800.331.4128 | fax 314.819.0440stlouis.burnsandwilcox.com

31637_BURNS_Rocket Pen_KS1_MO1_Missouri Agent_APPROVED.indd 1 10/8/12 2:04 PM

Your customers’ businesses are

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The insurance professionals at NSI,

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Because if it’s worth insuring,

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If it’s worth insuring,

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Larry Caseexecutive vice president, MAIA

Strategize, Evaluate, ContemplateThe arrival of the 2012 college football season marked the beginning of a major transition for the University of Missouri Tigers as they began play in the prestigious Southeastern Confer-ence. While numerous factors impacted the de-cision to make the move, in the end, it brought an opportunity to be a part of what is widely recognized as the best athletic conference in the country.

As Mizzou is making its move, MAIA is also making ours. In conjunction with MU’s transition, MAIA continues its Trusted Choice advertising campaign with Mizzou Sports Properties, expand-ing a partnership we began in 2006. You will now hear both in-game and post-game ads, as well as the featured “Trusted Choice of the Game,” a play cho-sen by Mike Kelly and presented in the post-game football and basketball shows. We also have added brand exposure with a Trusted Choice banner, which will peri-odically appear on the Mizzou athletics website.

Not to be outdone by MU’s effort to be the best, your MAIA board of directors is focused on ensuring that this association is functioning as one of the best in the nation. The strategic planning session held earlier this year has led to some out-of-the-box thinking and energized your leadership and staff to focus on our vision for the future. Their goal is to provide excep-tional value to members and make sure we are well positioned in an ever-evolving insurance marketplace.

At the September board meeting, each member of the board received a copy of the book Race for Relevance, written by association guru Harrison Coerver. Board members will be considering the concepts and ideas presented in this book and how they might intertwine Coerver’s visions with priorities and goals they have for MAIA over the next few years.

We often speak about insurance not being a commodity. It is peace of mind and a promise to provide assistance and service in the event of specific events and to minimize the impact of unfortunate circumstances by rebuilding or replacing property or defending policyholders against potentially disastrous litigation. As-sociation membership is much the same. While

we do have some tangible benefits we can offer, the real benefits of membership are the intangibles.

In every survey, members identify networking opportunities, service, information, advocacy and legislative representation as some of the top reasons you feel membership is important to your business. In other words, you recognize and value the importance of the intangible ben-efits we provide and expect us to be relevant in

representing your interests, whether it is with industry partners or in political

or regulatory arenas.Thus, it is appropriate that we

periodically perform a Self Ex-amination and Critique of our priorities and processes. We must make sure we are on top of our

game and are Seeing Evolutionary Changes so that we can keep you

informed about what pitfalls may lay ahead. And we must make sure that we

are considering appropriate Strategies, Efficien-cies and Collaborations in order to best serve you, our members.

MAIA has always been blessed with very dedicated leaders who give selflessly of their time in order to help perpetuate the indepen-dent agency system and ensure that we have the ability to deliver the services you expect from us. This example of their forward thinking should assure you that you will be able to de-pend on us in the future.

In the end, our goal and our pledge to you is that we will continue to Skillfully Evaluate Challenges you face and provide you with real value for your membership with benefits, such as these:

• Structured Educational Curriculum;• Sensible Expert Consultation;• Stimulating and Enlightened Communica-

tions; and• Sensational Events and Conferences.

Of course, we will expect you to do your part and participate and take advantage of what we provide for you.

SEC you soon. Go Mizzou!

myturn

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More perspectives on producer duties

contingent commissions or in other ways had failed to carry out an expected duty with rea-sonable care, skill and diligence.

As to whether a producer has breached a duty of loyalty to a customer, the Court af-firmed several prior court decisions stating that the scope of a producer’s agency is to procure the insurance requested by the insured and

that a producer has no duty to advise insureds on their insurance needs or on the availability of a particular coverage unless specifically agreeing to do so.

With regard to the fact that Marsh & McLennan collected interest on monies held in trust between the time of collecting the premiums from Emerson and paying the pre-miums to the insurance com-pany, the Court ruled that

while the Missouri statutes clearly note that a producer holds such funds in a trust and fiduci-ary capacity, nothing in the statute gives the policyholder the right to monies other than the premiums agreed to in the insurance policy.

Because the Missouri statutes impose no duty with regard to interest, the Court refused to impose such a duty because of the producer’s limited role in procuring insurance. Finally, the Court likewise refused to expand the producer’s duty to include finding coverage of the lowest possible cost. Since the producer has no duty to advise insureds about what insurance they need or what insurance to buy, the Court would not expand the producer’s duty to include deter-mining the cost of insurance to be paid by the policyholder.

The Court’s findings are all beneficial to producers because the decision declines to expand the duties owed by producers in their relationship with policyholders. However, in all its determinations, the Court holds open the potential that a producer could in fact owe any one of the duties discussed if the producer spe-cifically undertakes to accept it by contract or by a course of conduct.


thelegalside

In my last article, I discussed potential issues with a producer’s duty to an insurance carrier. There are also issues evolving regarding the duties a producer owes in the relationship with policyholders, especially in situations where the producer acts as a broker for the policyholder.

Earlier this year, the Missouri Supreme Court gave some guidance on the recognized duty of producers, while leaving some questions open to de-terminations based on con-tract or custom.

In the case of Emerson Electric Company v. Marsh and McLennan Companies, Emerson sued, alleging Marsh & McLennan had violated a fiduciary duty of loyalty by accepting contingent com-missions without notice to Emerson, by keeping interest earned on premiums col-lected before payment to the insurance carrier and by failing to provide Emerson with the low-est cost coverage possible.

While the court examined the difference be-tween an agent, who represents the company, and a broker, who represents the policyholder, generally it held that in either situation, the producer’s primary duty to the policyholder is limited to procuring the insurance requested by the policyholder.

In either capacity, the producer has a duty to perform his or her duties with reasonable care, skill and diligence. However, that duty does not extend to advising insureds about what insur-ance they need or what insurance to buy, unless the producer specifically undertakes to do so.

The Supreme Court determined that Sec-tion 375.116 of the Missouri statutes authorizes a broker to receive commissions and makes no distinctions as to the type of commissions; therefore, the receipt of a contingent commis-sion is not of itself a breach of a duty. However, the Court did not throw out the suit, saying that the trial court could still determine whether Marsh & McLennan had specifically undertaken additional duties of disclosure with regard to

Lewis E. Melahn is a practicing attorney in Jef-ferson City. He provides free legal consultation to MAIA members on a limit-ed basis. He served as the director for the Missouri Department of Insurance from 1989-1993. You can contact Lew Melahn at 573-636-5057.

The Court’s findings

are all beneficial to

producers because

the decision declines

to expand the duties

owed by producers in

their relationship with

policyholders.

10 missouriagent november-december 2012

Pitfalls of personal insuranceBefore I go into some of the pitfalls of per-sonal insurance, I thought it best to discuss the fact that personal insurance should not be treated as a commodity.

The definition of commodities from Inves-torGuide.com is, “goods that are supplied to the market without differentiation based on brand, source or other factors.”

As independent agents, this is our sales tool. We can sell differentiation. We have the prod-

ucts to offer our clients and a variety of compa-nies, each of which may have a different under-writing appetite and pricing structure. We also have additional options, which may not be avail-able from the direct market or 1-800 channels. We do not want to sell on price, as we all know the old saying, “Win on price, lose on price.” We want to offer our clients a product that is not just a commodity but something designed specifically for them.

Our goal is to offer our clients a program with features and benefits designed for their specific needs. The information gathering process is the most critical part of designing this program.

During this process, keep in mind the pitfalls that lurk around all the corners. Pitfalls are gaps in coverage. Some of these gaps can be closed; others cannot. We just need to be sure that our client understands the issues involved with the ones that cannot be closed. It is a good idea to work with a coverage checklist to help determine the needs of a client.

While there are more than I can cover in this article, I will review some gaps, which I think are important and are frequently encountered.

All lines• Always name both spouses on all policies.

Spouses who aren’t named on the policy may lose coverage during a separation or divorce. Coverage can cease when one spouse moves out of the household. Read your policy.

• In a divorce situation, don’t remove either spouse or any vehicle without the permission of both in writing. Don’t reduce coverage without permission of both insureds in writing.

• Domestic partners: Name partners as named insureds. Being added as a driver doesn’t add any coverage. Both signatures should be required.

• Be sure all liability limits are the same.

Auto• Children who move out of the household with

a vehicle owned and insured by their parents do not have proper coverage. They will lose coverage for driving or being hurt in non-owned vehicles under their parents’ policy. In the event of an accident with an uninsured or

Jane DobrinicCharles L. Crane Agency Co.

MAIA Technical Committee

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technicalities


underinsured driver, there would be no cover-age for this family member if he or she does not have his or her own auto policy. Moving out of the household negates some of the extensions of coverage under the auto policy.

Solution: Transfer the title to the family member and write a policy in the new own-er’s own name.

• Many personal auto policies are introducing step-down coverage or drop-down provi-sions, which limit coverage for some drivers to state minimums ($25,000/$50,000/$10,000 in Missouri). Other policies will reduce coverage for anyone in the household who is not rated on the policy.

Solution: Read your policy carefully.• College students who have roommates have

an additional exposure. Often, car keys are thrown on the counter and the students will frequently use someone else’s car in the household. There is a liability exclusion in the personal auto policy for an auto that is furnished or available for an insured’s regular use. If a student borrows a car in this scenario and is involved in an accident with a car that has no insurance or insufficient limits, the policy will not respond.

This same situation applies when there is a company car in the household. Cars owned by other members of the household, such as roommates or domestic partners, may also be excluded.

Solution: Add the Extended Non Owned Endorsement, naming the individual for whom coverage is provided. This is PP 03 06.

Solution: Get college students and adult children their own policy as soon as is practical.

• Only vehicles acquired by the policyholder are automatically covered when you purchase them. Cars purchased by a family member may not automatically be covered.

Solution: Make arrangements ahead of time with your agent.

• Once you purchase a new vehicle, it immedi-ately begins depreciating in value. That rate of depreciation may be faster than you are paying off the loan. In the event of a total loss, the settlement may be less than what is

owed on the vehicle. This situation can occur whether you buy the car or lease it.

Solution: Anytime a client buys or leases a new car, offer auto loan lease coverage. This coverage prevents you from having to pay this difference out of pocket.

Home• College students may lose coverage under

their parents’ homeowners policy if they turn 24 or become part-time students. Review your coverage. Their college may not be an in-sured location.

Solution: Write a renter’s policy for the student.

• The 2011 revision of the ISO Homeowners Policy has broad-ened coverage for kids’ battery powered toy cars, provided they are designed for kids under the age of seven and can’t exceed 5 mph. (This was excluded in the prior edition of the policy).

• The Incidental Low Power Recreational Motor Vehicle (HO 24 13) can be used to add liability coverage for owned off-road recreational motor vehicles, but the top speed must be 15 mph or less.

• Motor vehicle exclusions in the 2011 revision of the ISO Homeowners Policy exclude cover-age for motor vehicles unless they are used “solely to service a residence.” This broadens coverage, as the prior version read, “used solely to service the insured’s residence.” The 2011 version allows servicing of other resi-dences but not any commercial property, such as helping your local church.

Solution: Be sure to read your policy, as we see significant variations on this exclusion in other policy forms, and advise your client ac-cordingly in writing.

• Property in storage is now covered for 10 percent of the personal property coverage as opposed to the full personal property limit in prior versions of the ISO HO policy.

Solution: This may be increased by adding HO 06-14, Increased Amount of Insurance for



KNOWLEDGECOMES FROM EXPERIENCE

“I go the distance on my bike—just like my 30-year journey with J.M. Wilson. I lead a great team of managers and underwriters that work hard to help our agents be successful.”

Sandi Fritz, CIC Vice President, Underwriting and Branches—and fixture on the bike trail

Connect with Sandi on LinkedIn!

PIA National 2011 MGA of the YearProperty/Casualty • Professional Liability • Surety Commercial Transportation • Personal Lines • Premium Finance

800.666.5692 jmwilson.com

Personal Property Located in a Self-Storage Facility. However, this endorsement may not be available with all companies.

• Be aware of the exclusion for theft, which reads, “The peril of theft does not include loss caused by theft for property while at any other residence owned by, rented to, or occupied by an ‘insured,’ except while an ‘insured’ is temporarily living there.”

Solution: Write an HO5 policy on the pri-mary or a tenant homeowners policy on the temporary location

Excess liabilityAlways offer excess liability coverage. Determin-ing the amount of coverage to purchase should be left up to the insureds. Suggest that they buy as much as they can afford.

Flood insuranceAlways offer flood insurance. You don’t have to be in a special flood hazard area to need this coverage. The homeowners policy does not cover surface water.

Jane Dobrinic, CPCU, CIC, is a manager at Charles L. Crane Agency Co., St. Louis. She is in her third year as a member of the MAIA Technical Committee.

technicalities continued from page 11

What course of conduct might indicate a pro-ducer has accepted such a duty remains subject to speculation; however, the Court did reference a prior court decision in Zeff Distributing Com-pany v. Aetna, where the court found the rela-tionship between the producer and policyholder was such that when the policyholder’s coverage was cancelled, the policyholder could reasonably expect that the producer was going to replace such coverage or advise the policyholder such coverage could not be obtained. By failing to do so, the producer had breached a duty upon which the policyholder had relied, based upon a prior course of conduct.

This case serves as a reminder that producers should not create expectancies by their policy-holders for anything other than the exercise of reasonable diligence to procure the insurance the policyholder desires.

Indicating that a producer can do anything more than that for a policyholder may raise an expectancy and create a duty for the producer that otherwise would not exist.

legalside continued from page 9


Ramifications of Senate Bill 749We have a new health insurance law in Mis-souri, as of the recent veto session of the Mis-souri General Assembly. Senate Bill 749 is now law. It lays out several new requirements for all providers of health insurance coverage, covering contraception, elective abortion and sterilization.

The bill was vetoed by Gov. Jay Nixon in July on the grounds that it was unnecessary and duplicative of the existing contraception stat-ute. The old law, on the books since 2001, gave employers the right to refuse contraceptive coverage for their group health plans, in effect opting out of providing contraception coverage for employees. In such situations, the law also gave employees the right to opt back in to that coverage.

In his veto message, the governor said noth-ing in S.B. 749 “would enhance these substan-tive religious protections that have been in place and afforded to employees and employ-ers and will remain part of Missouri law after my veto today.”

Nevertheless, the legislature overturned the governor’s veto, and S.B. 749 is now law. For the department, that means our legal obligation is strong enforcement of all provisions of the law for which we have authority, namely the new provisions in Chapter 376 RSMo. That chapter applies to insurance companies and fully insured health plans. And we are committed to that.

But I want to bring to your attention several provisions that fall outside the insurance chap-ters. For the first time, there are now require-ments related to coverage of contraception, abortion and sterilization in Chapter 191, the general public health statutes. These require-ments, according to the new law, now apply to “health plan providers” and “health plan spon-sors.” Since these are undefined terms, there is a question about whether they extend to all health plans, including self-insured plans.

Also in Chapter 191, sterilization is men-tioned. This is a subject that does not appear in Chapter 376.

You are aware that our department has no jurisdiction over self-insured health plans or to enforce Chapter 191. So we cannot provide guidance to these plans regarding the new re-

quirements. But I encourage you to consider the ramifications of this new language for all your clients with group health plans. Those clients who have purchased fully insured group plans will certainly need to comply with the new law. But those who are self-insured may be affected as well. They may need to consult with their legal counsel on whether the new state require-ments apply to their health benefit offerings.

Join us for the Director’s Regulatory SummitI want to invite you to a first of its kind confer-ence our department is hosting in December. The Director’s Regulatory Summit will be a one-day event in Columbia, December 6. It will be an opportunity to learn more about department operations, including licensing and our han-dling of agent investigations and market con-duct reviews. Please spread the word to agents and carrier representatives alike. There will be valuable content for all involved in our industry, and we will offer continuing education credit. Visit insurance.mo.gov/summit for more details.

John M. Huffdirector, Mo. DIFP

fromtheDIFP

This article expresses the official views and opinion of the Missouri Department of Insur-ance, Financial Institutions and Professional Registration, which may not necessarily be those reflected by the MIssouri Association of Insurance Agents.

Grow your business. with Couri Associates.

Or Ask one of these strategic partners about Couri Associates’ value

Visit www.couriagents.com/raves/

Retain your identity

Hear what our associates are saying about our focus on agents and our great commissions!

Interested in becoming part of the Couri family? Visit our website,couriagents.com or give Steve Albinger a call at 800-444-1215.

Scan thiswith your

Smartphone QR Reader App.

Search “QR Code” in your App storeto download a mobile reader.

Or

This is just a sampling of the quality carriers Couri represents.


Grow your business. with Couri Associates.

Or Ask one of these strategic partners about Couri Associates’ value

Visit www.couriagents.com/raves/

Retain your identity

Hear what our associates are saying about our focus on agents and our great commissions!

Interested in becoming part of the Couri family? Visit our website,couriagents.com or give Steve Albinger a call at 800-444-1215.

Scan thiswith your

Smartphone QR Reader App.

Search “QR Code” in your App storeto download a mobile reader.

Or

This is just a sampling of the quality carriers Couri represents.

Agency strategies to send and receive personal data securelyDue to growing use of the Internet and mobile technologies in business, errors and omissions underwriters are increasingly asking their appli-cants whether they encrypt or use other protec-tive measures to safeguard client personal data when it is being transmitted. Below are several approaches agencies can take to protect per-sonal data in transit.

Encryption When you think of encryption, consider those codes the military employs to keep conversa-tions unintelligible to the enemy. You can find many definitions of encryption on the Internet, but I like this simple one from Microsoft:

Encryption is a way to enhance the security of a message or file by scrambling the contents so that it can be read only by someone who has the right encryption key to unscramble it. For example, if you purchase something from a website, the information for the transaction (such as your address, phone number, and credit card number) is usually encrypted to help keep it safe. Use encryption when you want a strong level of protection for your information.

Requiring a strong password to gain access to your system is an important security procedure, but it is not the same as encrypting the data within the system.

Personal data Which types of personal data are the most sen-sitive and need to be encrypted when transmit-ted? The definition of personal data can vary by state and is contained in the state data breach notification and privacy laws (www.ncsl.org/issues-research/telecom/security-breach-notifi-cation-laws.aspx), as well as in various federal laws, such as the Health Insurance Portability and Accountability Act of 1996 (www.hhs.gov/ocr/privacy/hipaa/understanding/summary/pri-vacysummary.pdf).

Insurers, too, might employ various defini-tions of personal data in their policies, so it is

Jeff Yatesexecutive director, ACT

incumbent upon the agency to be familiar with not only the specific laws but also the coverage definitions that apply to the agency.

Note also that the applicable state law is based upon the residency of the individual whose personal data is being protected, not the location of the agency. This is an important con-sideration for agencies writing business in mul-tiple states and agencies writing policies that cover individuals who reside in multiple states.

With all of the above caveats, the most com-monly mentioned types of non-public, individu-ally identifiable personal data covered in the laws are those such as social security numbers, driver’s license numbers and other government issued IDs, debit and credit card numbers and PINs, bank and financial account numbers, and protected health information.

While often not mentioned in state laws, other particularly sensitive personal data, which should be protected, includes information com-monly used for security verification (mother’s


technology

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maiden name, date and place of birth, etc.) or sensitive insurance information (such as jewelry schedules).

It is important for agencies to know what types of personal information they collect, where it is retained and who has access to it. They then need to decide whether they really need to keep this sensitive information.

For example, many agencies no longer retain copies of bank checks and are careful only to pass along credit card numbers to carriers but not to retain them so they do not become sub-ject to the comprehensive payment card indus-try compliance requirements. These agencies are also extremely careful to shred this personal data as soon as it is no longer needed.

Further, if the agency decides it must keep particular sensitive personal data, it should limit access to only those employees who need to see it, to the maximum extent possible. This is par-ticularly true for protected health information. Finally, the agency should be careful to make sure that this personal data is kept off PCs, mobile devices, thumb drives and other devices where there is a significant risk of loss or theft.

PCs and mobile devices Users of PCs and mobile devices should be trained to remove any e-mails with personal data received on these devices as soon as they are read. In addition, the agency should audit to make sure any PCs and mobile devices that can access agency applications are password pro-tected. Further, the agency should implement software that can wipe all of the data off of these devices if they are lost or stolen, restoring them to the original manufacturer’s state.

Secure e-mail E-mail is the first major area where agencies need to begin to encrypt their communications to carriers and clients when personal data is included. Some examples of e-mails likely to include personal data include insurance applica-tions sent to carriers for a quote or to clients to complete and sign, and insurance policies sent to clients.

With respect to e-mails between agencies and carriers (and general agents), ACT recom-mends that transport layer security be imple-mented wherever possible. TLS is an open

standard, which, once implemented between an agency and a car-rier (both parties must have it implemented), renders all of the e-mails between the partners transparent to the end users. In other words, the agent or carrier underwriter does not have to go to a proprietary website to pick up each e-mail. TLS is a great solution for business partners with frequent e-mail communications going back and forth.

Agencies can implement TLS if they have e-mail servers or hosted solutions that offer it. We recommend that the initial TLS set up be handled by the agency’s technology person, who should also verify that it is working prop-erly with each carrier and general agent. You will find a number of resources explaining TLS on the ACT website (www.iiaba.net/act), includ-ing a list of carriers, which have advised us that they have TLS available.

Unfortunately, most agency clients will not have TLS capability. This will require the agency to implement a proprietary e-mail solution as well for these clients. When the agent sends a secure e-mail to the client using one of these proprietary solutions, the client accesses it on the e-mail vendor’s secure website. The secure e-mail tool also enables the client to send a secure e-mail back to the agent, which is help-ful when the client is being asked to complete an application, for example. Fortunately, there are a number of vendors that can help agencies with both TLS hosted e-mails and proprietary e-mails. (Two examples of such vendors are Ap-pRiver and RPost.)

Agency websites It is also critical that agencies provide secure website connections for consumers when they ask the consumer to provide personal data on the website, such as to receive a quote. The website should create a secure “https” tunnel before the consumer can fill out any form that asks for personal data, just as you would see when purchasing something or banking online.

technology continued from page 15



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If the agency provides a “non-https” free-form text field, which the consumer can use to contact the agency and make requests, there is some risk the consumer will enter private, personal data. Therefore, it is a best practice to take one of the following steps with regard to this free-form text field: (1) secure it; (2) change it to specified fields, which ask only for basic contact information, such as name, phone number, e-mail and address; or (3) in-clude a note warning that the free-form text field is not secure and should not be used to provide any private personal data.

If the agency provides clients with the capa-bility to access their insurance information or documents online, the website should create an https connection before any information can be accessed. Once again, agents should work with their website provider to help them with the technical aspects of creating this secure website capability.

Some agency E&O providers also require the agency to post a privacy statement on its web-site if there is an option for the consumer to submit personal data through the website. It is important that the agency customize its pri-vacy statement to track the agency’s particular data collection, usage, sharing and protection practices with regard to data collected. Honda’s financial services website privacy statement (www.hondafinancialservices.com/help/privacy-policy) provides a good example of the types of information that are typically included in such statements.

ACT resources ACT has developed several resources for agencies to review as they establish and implement their agency’s comprehensive information security program. All of these resources are included on the “Security and Privacy” page of the ACT web-site (www.iiaba.net/act) under the “Quick Links” heading. These resources include a prototype agency information security policy, which agen-cies can use as a template to build their own cus-tomized policy or as a checklist of security issues they should address.

Jeff Yates is executive director of the Agents Council for Technology, which is part of the IIABA. He can be reached at [email protected]. ACT’s website is www.iiaba.net/act. This article reflects the views of the author and should not be con-strued as an official statement by ACT.

technology continued from page 17


Research provides insight into agency performance

The 2012 Best Practices Study marks the 20th edition of the annual benchmarks research for agencies. Over the past 20 years, agencies have endured both hard and soft markets and one of the worst economies since the Great Depres-sion. The 2012 results, which are based primarily on agency data as of Dec. 31, 2011, show that the study’s participating agencies began to face the unusual combination of a hardening mar-ket and a continuing soft economy. As a result, their performance, while improving, remained somewhat suppressed.

Overall, the Best Practices agencies confi-dently held their ground but did not make huge strides in improving agency performance, the 2012 results show. Most agencies appeared to have completed the year with resources and systems in place to move cautiously into an envi-ronment that could present new opportunities — or new challenges.

The 2012 Best Practices Study provides critical performance benchmarks in six agency revenue categories ranging from less than $1.25 million to more than $25 million. Agencies can mea-sure, evaluate and compare results for agency operations, including income and expense distribution, revenue and profitability growth, sales and service staff compensation and productivity, technology expenses, property-casualty and life-health carrier representation, and more.

In addition, the study measures results from its “Rule of 20,” a simple growth and profit-ability balancing equation, which determines if a firm is creating value for shareholders. Small and large firms improved their scores but fell well short of the desired score of 20: Small firms averaged 15.9, and large firms averaged just 14.9. The low but improved scores highlight the struggle of agencies to maintain their value, even as they grow their revenues.

The Best Practices program is a partnership of the Big “I” and Reagan Consulting and is recognized as some of the most thoughtful, effective and valuable resources made available to the industry.

You can learn more about the Best Practices resources and order online, or for questions, email [email protected].

Become a Best Practices agency

Over the past 19 years, the Best Practices Study has examined top performing agencies across the country. For these agencies, inclusion provides the prestigious status of “Best Practices Agency” and opens the doors to many benefits. The next cycle begins January 2013 and is your agency’s chance to be involved.

The process at a glance:Once every three years, the Big “I” requests agency nominations from state associations and company partners. Nominated agencies are invited to participate. If you would like to be considered for nomination, you can fill out the “Self Nomination Form” available online by clicking the “Uncover Industry Best Practices” link on the IIABA home page (www.iiaba.net).

Agencies that choose to participate submit detailed financial and operational information, which is scored and ranked objectively.

The top agencies in six revenue categories are included and deemed “Best Practices Agencies.”

To retain this status, each agency must submit year-end results each year. There is no other commitment.

&news know-howEXTRA!

Obtain your 2012 Best Practices Study update


• How is your receptionist perceived by your customers?

Don’t take for granted that you already know the answer to these questions, Corbett advises. Investigate. If you find that you have people who can’t be superb on the phone, don’t let them answer it. They’re doing serious damage to your business and your brand image, and you may not even be aware of it.

Harry Beckwith, author of Selling the Invis-ible, says, “Every employee should know that every act is a marketing act upon which your success depends. Review every step, from how your receptionists answer to the message on the bottom of your invoices, and ask what you could do differently to attract and keep custom-ers. Make every employee a marketing person.”

Maybe it’s time for your agency ownership to assess the receptionist position. This doesn’t mean buying an automated voice system. In fact, that’s often a bad move from the custom-er’s point of view. But it could mean raising the salary and perks of the receptionist job (How about offering the best parking spot?) so you attract high-level people. In some agencies, it might mean hiring a second receptionist. And it could mean that you stop using that position as a “safe haven” for people who can’t cut it as a customer service representative. If they don’t like to deal with the public, don’t put them at the front desk.

Trusted Choice agencies know that in brand-ing, every brand touch-point matters.

from trustedchoice.com

How is your receptionist perceived by your customers?

Don’t take your

telephone grantedfor

Ask your customers to talk about a critical com-ponent — any critical component — of their commercial general liability package, and they probably won’t be able to answer you. Why is that? Isn’t the product important?

Sure it is. But it’s not the most important “brand touch-point” for your agency. Ask your customers to talk about what they perceive to be a critical component of your agency, and they’ll mention your people. And if you were to probe further, they’ll probably start with your receptionist.

The receptionist? You bet! This individual is on the phone all day with your customers — your very best customers as well as your not-so-best customers. Don’t take that key position, the phone warrior, for granted.

In his excellent book, The 33 Ruthless Rules of Local Advertising, author Michael Corbett says, “Too many companies never put themselves in the consumer’s shoes. If they did, they wouldn’t allow their phone receptionist to make it so dif-ficult for consumers to do business with them.”

It’s about a commitment to the customer. All employees need to share that vision.

Corbett discusses what must happen around your advertising for your firm to be success-ful. Before you cut a check to the local cable TV operator or direct-mail printer to drum up new business, Corbett offers some questions that are appropriate for agency owners to ask themselves:

• Can the person answering your phone make a compelling response to the caller’s requests?

• Have you told your phone receptionist, or anyone who answers your phone, that 83 percent of effective phone communications occurs in the tone of voice?

• Does your receptionist answer your phone no later than the third ring?

• How much training has the person an-swering your phone had in taking care of people who call your business?

• Does your receptionist like talking to people? Is he or she smiling while talk-ing on the phone?

• Does your receptionist consider people who phone with questions or com-plaints a bother, an interruption or a pain?

Go to www.Trusted-Choice.com/agents for more branding tips.

MAIA staff profile:

What is your educational background?Last year, I obtained my certificate in theological counseling. I’m now trying to save money to go back and finish my bachelor’s degree.

Tell us about a typical work day for you.There is never a typical day in insurance. Every day is a new adventure.

What do you enjoy most about your job?No day seems to ever repeat itself. I like doing different things and meeting new people.

What was your first job?The summer I turned 14, I cleaned the school. It wasn’t much fun scraping gum off the chairs and tables.

What has been your most significant accomplishment as a professional?Obtaining my insurance license. Most of you know how hard that test is!

Who has had the biggest influence on your career?My family has always encouraged me, even when I was not sure I could do it. They were right there cheering me on.

Tell us about your family.I have two awesome and handsome boys with my husband Chris. Damian is 18 and

a freshman in college, and Logan is 16 and a junior in high school. I look forward to having grandchildren someday.

Do you have any pets?No, I have a petting zoo filled with my furry family. We have four dogs: Goliath, a Lab mix; Wicket, a pomeranian-sheltie mix; Banshee, half malamute and half husky; and Titan, half Lab and half bull mastiff. We have three cats, Angel, Murphy and Opie. We have a fish, a bird (Tweety) and a chinchilla (Fred Flinstone). All but two of our animals are rescue pets.

What is a goal you’re still trying to accomplish?Finishing college is my personal goal.

Whose biggest fan are you?Chris, who is an awesome husband to me and a wonderful father, and my kids. I am so proud of the men my children have become.

If you were reborn as an animal, what would you want to be?A wolf. They are free, majestic creatures, loyal and protective, and they will do anything for their pack.

What are some qualities you value in a person?Honesty, intelligence, kindness, God fearing, funny and loving.

Monica MizeJoined MAIA: October 2007Title: Customer Service Representative

Monica in BriefFavoritesFood: Anything I don’t have to cookColor: BlueMusic: My iPod has everything from Michael Jackson to Demon Hunter to ‘80s hair bands.TV Show: Pretty Little Liars and The Big Bang TheoryMovie: The Lost Boys, Silver Bullet, The Never Ending Story and Lord of the Rings

Below Left: Monica’s husband Chris and sons, Logan (l) and Damian.

Below Right: The MAIA insurance department


The Certified Insurance Service Representa-tives Program announced the expansion of course offerings for the prestigious designa-tion. This expansion allows participants to select from a variety of courses, based on their personal preference, to earn the CISR designation.

The new options give participants the op-portunity to choose five of the nine courses to specialize in a certain area or mix and match courses to diversify their learning. The new expansion includes:

Commercial linesCommercial Casualty I: commercial general

liability; additional insuredsCommercial Casualty II: business auto policy;

workers’ compensation; excess liabilityInsuring Commercial Property: commercial

property; time element; commercial inland marine

Personal linesInsuring Personal Auto Exposures: personal

automobile exposures and coveragesInsuring Personal Residential Property: home-

owners coverage forms and dwelling firePersonal Lines Miscellaneous: watercraft; rec-

reational vehicles; business activities; and personal umbrella and excess

Related professional topicsAgency Operations: major revision 2012Elements of Risk Management: the five steps

of the risk management processLife & Health Essentials: life and health insur-

ance concepts

To earn the CISR designation, a participant will need to complete the course and pass the final exam for any five of the nine courses. Eight of the nine courses will be available dur-ing MAIA’s 2013 schedule. Visit us online at www.missouriagent.org and click the master calendar link to register for any class. The new courses provide current CISRs excellent update options and are being filed for state CE credit.

program expands to

Personal ResidentialNov. 7, 2012, SpringfieldNov. 14, 2012, IndependenceDec. 4, 2012, ChesterfieldDec. 6, 2012, Cape Girardeau

Commercial Casualty IFeb. 6, 2013, SpringfieldMarch 7, 2013, Cape GirardeauJuly 30, 2013, Chesterfield

Commercial Casualty IIFeb. 20, 2013, Blue SpringsJune 11, 2013, SpringfieldAug. 8, 2013, Cape Girardeau

Commercial PropertyMarch 5, 2013, ChesterfieldJune 25, 2013, Blue Springs

William T. Hold SeminarApril 2, 2013, ChesterfieldOct. 1, 2013, Blue Springs

Personal ResidentialApril 23, 2013, SpringfieldMay 9, 2013, Blue SpringsMay 29, 2013, Chesterfield

Personal Lines MiscellaneousJune 4, 2013, Jefferson CityOct. 30, 2013, Springfield

Agency OperationsAug. 7, 2013, SpringfieldSept. 12, 2013, Blue SpringsSept. 17, 2013, ChesterfieldSept. 19, 2013, Jefferson City

Elements of Risk ManagementAug. 21, 2013, Chesterfield

Personal Auto ExposuresNov. 14, 2013, Blue SpringsDec. 3, 2013, ChesterfieldDec. 5, 2013, Jefferson City

MAIA CISR Schedule 2012-2013

MAIA CIC Schedule 2012-2013Commercial CasualtyNov. 28-Dec. 1, 2012,

IndependenceFeb. 27-March 1, 2013,

Blue Springs

Agency ManagementJan. 30-Feb. 1, 2013,

St. Charles

Commercial PropertyApril 17-19, 2013, St. CharlesNov. 6-8, 2013, Blue Springs

James K. Ruble Graduate Seminar

May 15-16, 2013, Osage BeachSept. 25-26, 2013, St. Charles

Personal LinesJune 19-21, 2013, Springfield

Life & HealthAug. 14-16, 2013, Jefferson

City

CISR 9 choices

Register online at www.missouriagent.org.


specialfocus productsandservices

Amy J. Hoffmaneditor, MAIA coverage gaps to sales management. The “Ask

an Expert” feature allows you to submit a spe-cific question to the experts on the VU faculty.

Be active in the industryYou can operate a mom-and-pop on Main Street, but your business

will suffer if you don’t have a foot in the broader industry. MAIA’s annual conferences combine networking opportunities with education and other benefits.

The Small Agency Conference, held each March in Columbia, is a gathering of agency per-sonnel from small to mid-sized Missouri agencies where all employees are welcome. A huge trade show is one of the highlights of this conference, and the Idea Lab is a popu-lar arena to ex-change thoughts on agency auto-mation and tech-nology topics.

The Young Agents Confer-ence is a favorite way for young and new producers to kick off the summer enjoying fellowship and education in a relaxed, family friendly atmosphere.

The Leadership Conference is the cream of the crop for networking among the state’s most suc-cessful and experienced leaders throughout the industry. This conference is aimed at managers, owners and principals, and regulatory and gov-ernment officials are often in attendance.

As a conscientious agent, you should take an active role in government affairs. On both state and federal levels, industry-related proposals are constantly developed and discussed. MAIA and your national associations lead the way in politi-cal advocacy by maintaining strong presences in the Missouri General Assembly and the U.S. Con-gress. You can support these efforts by making contributions to MAPAC, InsurPac and PIAPAC, the associations’ political action committees. We also sponsor Day at the Capitol in Missouri and take a delegation of agents to the national po-litical summits each spring.

1 25tips for a successful agency

Know your productIn this fast-paced, self-serve world, your best asset is your expertise. Clients come to you because you can translate the jargon and assess their needs.

MAIA can help you back that promise with a well-rounded approach to education.

Three designation programs are available for every agency employee, from the CSR to the experienced producer. The Certified Insur-ance Services Representative designation is aimed at CSRs and newer producers. With new classes available in 2013, the CISR program has more to offer than ever.

The Certified Insurance Counselor designa-tion is intended for more experienced pro-ducers and managers. The three-day classes in this program present in-depth analyses of advanced coverages. The CIC designation is a promise to your clients that you can handle their complex risks. Both programs offer con-tinuing education credit with each course.

Finally, the Associate in Insurance Produc-tion designation, awarded through comple-tion of the Elite Force Sales Training School, is for producers who are relatively new to both sales and the insurance industry. This program, offered biennially at MAIA Headquarters, gives students a comprehensive overview of insurance sales.

The Risk Specialist Series is a program that offers niche-based product information to help you grow your book of business and

expand your expertise. Examples include “Insuring Public Entities,” “Insuring Con-tractors,” and our next class to be held in January 2013, “Technology Trends for Insurance Agencies.” Expert instructors lead these two-day seminars, which are usually approved for CE credit.

Live classes are the heart of insurance education, but the best agencies have re-

sources at their fingertips every day. The Big “I” Virtual Risk Consultant allows producers to explore specific coverage markets. Among the resources it offers are checklists, marketing tools and minimum recommended coverages for more than 650 different industries.

The Virtual University is another Big “I” tool. On it, you’ll find articles authored by industry experts, addressing everything from



Cover your assetsYou know it. You preach it. But do you practice it? Your agency is teetering on the edge of fail-ure if you don’t have errors and

omissions insurance from a respected and proven carrier, as well as good risk management practices.

MAIA offers E&O coverage through the two best choices in the business*: Westport Insur-ance Co. and Utica Mutual Insurance Group. Both companies offer policies tailored to meet your agency’s specific needs. They are recog-nized throughout the industry for their finan-cial strength and stability.

To help you keep premiums low and man-age risk in your agency at the same time, MAIA presents E&O seminars three times a year. These seminars are approved for ethics CE credit and loss-control credit with Westport and Utica.

Westport clients have access to the E&O Hap-pens website, which offers claims prevention tools, coverage checklists, sample agency pro-cedure manuals, educational articles and other resources.

Finally, MAIA can help you make sure that nothing slips through the cracks by writing an insurance agency umbrella policy through Swiss Re or Penn National with limits up to $10 million over the primary E&O policy.

Be awareThe face of communication is changing so fast you may have a hard time recognizing it, but as a businessperson, you must keep up

with industry news and developments. Wheth-er it’s implementation of the new health care law or the latest best practices for Real Time transactions, MAIA has the information you need to know and the format you want.

Missouri Agent is a hard-copy magazine, which mails six times per year to every voting member. It is a valuable combination of educational articles, commentary and indus-try news.

The monthly electron-ic newsletter, the Agents NewsLine, is e-mailed each

month. Short and timely articles with links to more detailed information keep you up-to-date but require minimal time.

If you’d rather get your information on de-mand, check out the MAIA website, Facebook page and live chat feature. The website has all the information you need about news, associa-tion services, and upcoming events and classes. If you have a question while you’re there, just hit the “Live Chat” button on the bottom of the page. MAIA’s Facebook page is where you’ll get reminders about MAIA registration deadlines, links to industry news and other tidbits to keep you in touch.

Sell itIf you know your product, are active in the industry, have strong E&O coverage and are in touch with the business

world, your agency has a great backbone. Now’s the time to focus on boosting your agency’s sales.

MAIA member agencies are auto-matically enrolled in the Trusted Choice branding program, created by IIABA to give independent agents a strong voice and increase consumer awareness of the independent system. With Trusted Choice, it doesn’t matter how many employees you have or where you hang your shingle: You can be part of a national brand.

Most of the resources available through Trust-ed Choice are completely free. The Marketing Reimbursement Program will even pay you back for agency supplies and website redesign, which incorporate the Trusted Choice logo.

A new tool available through IIABA, Project CAP, works hand-in-hand with Trusted Choice to offer bundled marketing programs, which help agencies build consumer friendly websites and create public relations plans.

A second phase of Project CAP, still in de-velopment, is a consumer website, which

will connect shoppers with independent agencies in their areas and offer online quotes. More information on this tool will be available soon.

*Alternate markets also available.

3

4

5

tips for a successful agency


Products and Services


IIABA and PIA Federal Legislative Confer-ences, Spring 2013

CSR Development Conference, Nov. 8-9, 2012

Mid-America Tech-nical Conference, Nov. 4-6, 2012

Agency Compliance Lun-cheons, Fall 2013

Crawfish Feast, March 20, 2013Missouri Trusted Choice Big “I” Championship,

Summer 2013

Agency MarketingContact MAIA’s Lindsay Griffin.

Trusted Choice Branding Program TC Mizzou Tiger Sports Ad Campaign TC Marketing Reimbursement Program TC Tag-Ready Ads for Radio, TV and Print TC Consumer Articles TC Mobile AppInformation-on-Hold NetworkProject CAPLogos (Trusted Choice, IIABA and PIA)Member Marketing Activity Center

Agency Information and ResourcesContact MAIA’s Amy Hoffman.

Missouri Agent (bimonthly magazine)www.missouriagent.org (MAIA website)Agents NewsLine (electronic newsletter)Membership Directory (online)Education BulletinFree Legal ConsultationPersonal Assistance from

MAIA StaffLegislative and Special

Updates on Timely Issues

Virtual University (with the “Ask an Expert” feature)

E&O Happens Loss Control Website

Big “I” Advan-tage Virtual Risk Consultant

Best Practices Research and Publications

Agents Council for Technology

Insurance Coverage for AgenciesContact MAIA’s Leona Loethen or Theresa

Flippin.

Errors and Omissions Insurance: property-casu-alty and life-health

Life InsuranceAccidental Death and DismembermentDental and Vision InsuranceLong-Term DisabilityShort-Term DisabilityEmployment Practices LiabilityAgents Umbrella Program

Insurance Coverage for ClientsContact MAIA’s Monica Mize or Kelli Kloeppel.

Personal Umbrella CoverageIn-Home Business PolicyFlood Insurance: write-your-own programBig “I” Markets

Non-Insurance Products and Services

Contact MAIA’s Kelli Kloeppel.

BankDirect and Capital Finance Premium Fi-nancing Programs

Motor Vehicle Reports and Driver Monitoring Products

Employee Testing ServiceCareer CenterRetirement ServicesInsurBanc

Educational OpportunitiesContact MAIA’s Emily Koenigsfeld.

CIC: Certified Insurance Counselor ProgramCISR: Certified Insurance Services Representa-

tive ProgramRisk Specialist SeriesContinuing Education and Specialized

SeminarsE&O Loss Control SeminarsElite Force Sales Training School: new class be-

gins May 2013CIC Scholarships

Conferences and Special EventsContact MAIA’s Jeanne Blomberg.

Leadership Conference (annual state conven-tion), July 17-19, 2013

Small Agency Conference, March 21-22, 2013Young Agents Conference, June 2-4, 2013Day at the Capitol, March 6, 2013

MAIA contact

information:

Phone: 573-893-4301

Toll Free in Mo: 800-617-3658.

Fax: 573-893-3708

[email protected]

www.missouriagent.org


Big “I” Markets


Commercial LinesACEC Business InsuranceBonds

BidContractorPerformanceSuretyOther

Child CareCommercial AutoCommercial Builders’ RiskCommunity Banks Business Insurance ProgramEmployers’ Practices LiabilityEnvironment Impairment-Pollution CoverageEvent Cancellation (EXPO Plus)Event LiabilityFidelity/Crime (Wrap+)Financial Advisors’ E&OFine Art and Valuable Articles (stand-alone)Flood and Excess Flood

InsuranceHabitational Markets

ApartmentsCondo and Home-owner Associations

Hartford MarketsAlarm ContractorsArborists Insurance ProgramExcavation Contractors Insurance ProgramOrthodics and Prosthetics Insurance ProgramSeptic Contractors Insurance ProgramSpecialized Truck Equipment ProgramSpecialty Pool and Spa

Highly Protected RisksInsurance Company Professional and Business

Insurance ProgramMiscellaneous Professional Liability

Mobile Food VendorsMotor Truck Cargo

Non-Profit Directors and Of-ficers LiabilityOutdoor Markets

Guides and OutfittersRod and Gun ClubsFishing and Hunting Lodges, and Plantations

Proliability ProgramReal Estate E&O

Recreational VehiclesRestaurant Fine Dining and

More (Fireman’s Fund)Travelers Select Accounts

Apartment PacBuilding PacBusiness Pac

Condominium PacContractors PacGarage PacOffice PacReligious PacRestaurant PacStore PacTechnology Office PacTechnology Consultants Professional Liability

Vacant Commercial Property Program (admitted)

Workers’ CompensationWrap+ Executive Liability for Private Companies

Personal LinesAffluent 4:1 Package (four carriers)

ACEChartisChubbFireman’s Fund

At-Home BusinessCollector Car PolicyEvent LiabilityFine Art and Valuable Articles (stand-alone)Flood Insurance

ExcessNPCCBRA

Marine InsuranceCharter BoatMega-YachtPerformance BoatPersonal WatercraftSmall Boat Under 27 FeetYacht

Non-Standard HomeownersAffluent Non-Standard HomeownersCoastal HomeownersNon-Standard CondosNon-Standard HomeownersNon-Standard Rental DwellingsNon-Standard RentersPersonal Builders’ RiskSeasonal HomeownersUnprotected HomeownersUnsupported Secondary HomeownersVacant Dwelling

Personal Builders’ RiskPersonal Excess PolicyPersonal Umbrella PolicyRecreational VehiclesSupplemental Natural Disaster ProtectionTravel InsuranceVacant Property Program (admitted)

How can insurance agents make the most of technology while focus-ing on running a successful insurance business?This class is made up of mini courses focused on where specific technologies are and where they are going in the next two to three years. These are the things your instructors, Duke Williams and guest Steve Anderson, are working on now.Join them for two days of time travel and re-imagine how you and your business will look in the next few years.

Each course in the Risk Specialist Series offers an intermediate to advanced look into different niche markets. Offered quarterly in Jefferson City to members only, the courses are designed to help you become the insurance advisor your important clients need.

Technology Trends for Insurance Agencies Registration FormRegister online at www.missouriagent.org.

The training you’ve been

waiting for is here!

Risk specialist seRies

Become the Trusted Choice advisor your clients need.

Instructor:Duke Williams with guest Steve Anderson Duke Williams has been a leader in insurance automation since 1981, when he founded Accu-Rater, the first com-parison rater. His companies have pioneered many other technologies, including upload and download, and real-time policy issuance in the field. He has also created several of

the most used websites in the property-casualty insurance space. A confessed technology junkie, Williams brings a unique ability to see the practical intersection of technology and the insurance business.

Steve Anderson is a nationally recognized insurance agency technology authority. He is a prolific writer, who is known for his knack for trans-lating “geek speak” into easily understood language. His newsletter, The Anderson Agency Report, is one of the best and most influential in the in-dustry. Because he fine-tunes his ideas in the real world agents are faced with, Anderson is one of the industry’s top technology consultants.

Technology Trends for Insurance Agencies

Jan. 23-24, 2013 (Day One: 10 a.m. - 5 p.m., Day Two: 8 a.m. - 3 p.m.)

MAIA Headquarters, 3315 Emerald Lane, Jefferson City, MO

• Identifyingtechnologytrends

• Thefutureoftechonologyinthenexttwotothreeyears

• andmuchmore!

Thislistwillbeupdatedandaspecificagendalistedonbackastheclassgetscloser.Withtechnologychangingsofrequently,wewanttobesuretobringyouthemostcurrenttopics.

Topics Covered Include:

Upcoming Risk Specialist Series Classes: “All in all – best insurance training I’ve attended.” — SurveyResponse(InsuringGarageExposures2011attendee)

Disaster Preparedness for Agents & Clients: April 24-25, 2013 Speakers: Don Donaldson, CIC, CRM, RPA, CHS-III and Angie Heavener, CIC, CPIAThis two-part seminar is aimed at helping agents prepare their agencies for disaster from a risk management perspective and help-ing them lead their clients in crisis preparation.

Life & Health Options for the Business Owner: June 26-27, 2013 Speaker: Jerry Rhinehart, CIC, CLU, ChFC, RHUThis seminar will include an update on the national health care reform and discussions on estate planning techniques, money in retirement accounts and worksite marketing.

CE Filed Pending Approval

You will not receive a refund or transfer credit if you do not notify us before the start of the event. All cancels and transfers must be received in writing. Refunds: a 90 percent refund applies if cancelling more than two weeks prior to start of event; 75% refund if cancelling fewer than two weeks before the event. Transfers: A $30 trans-fer fee will be assessed on any CIC or two-day seminar transfer made within two weeks of the program. Transfers may only be made to another MAIA course. Student must indicate a transfer course within two weeks of cancellation, or appropriate percentage of tuition will be refunded.

We work hard to make our programs accessible to all. If you need special accommodations, simply phone MAIA at 800-617-3658. Please notify us if you have any special dietary requirements.

Questions? Phone: 800-617-3658 (in Mo.), 573-893-4301; www.missouriagent.org; e-mail: [email protected]

Name ____________________________________________________ Agency/Company ____________________________________________

E-mail____________________________________________________ City/State/Zip _______________________________________________Which best describes your role? Owner/Principal Agency Mgr. Producer Account Mgr. Customer Service IT Company Rep

PRICING (Circle Selection) Early-bird Fee Regular Fee MAIA Members Only $199 (by Jan. 9) $250 (after Jan. 9)

Fee includes materials, CE filing fee and two lunches.

PAYMENT METHOD: Check enclosed or MC Visa AmEx Billing Address ______________________________________________

Card No: _______________________________ Ex. Date: ______Verification Code: _____ Cardholder Signature: _________________________ Make checks payable to: Missouri Association of Insurance Agents, P. O. Box 1785, Jefferson City, MO 65102-1785.

HOTEL: Contact the Best Western at 573-635-4175 by Jan. 8, 2013, and ask to receive the MAIA nightly rate of $86.40 plus tax.


MAIA 2012-13 committeesBudget and Finance CommitteeThis committee works with the executive vice president on all financial matters and monitors the budget and financial poli-cies of the association. Each year, it presents an annual budget

to the board of directors.

Chairman Randy Baker, T.R. Baker Insurance Agency, Kennett

Doug Clift, Bowersox Insurance Agency Co., St. Louis

Staff Liaison Larry Case, MAIA

Communications and Technology CommitteeThis is a newly formed committee, the result of a merger of the Public Relations Committee and the Technology Commit-tee. It utilizes print and electronic media to enhance the im-age and profile of independent agents while simultaneously working to help agents develop their own communications and technology platforms with the goal of increased profits through branding and workflows. The committee focuses on social networking, website optimization, and various forms of on- and offline advertising, as well as office protocols such as Real Time, download and working with an agency manage-ment system.

Chairman Kevin Krueger, Capstone Insurors, Bolivar

Pauli Clariday, Cameron Insurance Cos., Cameron

Chad Connell, Connell Insurance, BransonShane Davolt, G M Peters Agency, LibertyRoss Ingersoll, Ingersoll Insurance Agency,

SavannahMitchell Mills, Mills & Sons, ClintonDawn Oney, The Insurancenter, JoplinSteve Rackley, Rackley Insurance Agency, GainesvilleStaff Liaison Amy Hoffman, MAIA

CSR Development Conference Committee This committee organizes, plans and implements an annual conference for customer service representatives and other front-lines employees in the insurance agency. The conference offers education specifically designed to bolster the CSRs’ skills for their unique tasks and workflows.

Chairman Belinda Brenizer, Hawkins Insurance Group, Edina

Maureen Conroy, Charles L. Crane Agency Co., St. Louis

Teri Jannett, Electric Insurance Co., BallwinToni McClish, T.R. Baker Insurance Agency,

KennettJennifer Taylor, Mike Keith Insurance, ClintonTammy Wickham, Naught-Naught Insurance Agency, Fulton

Crystal York, Winter-Dent & Co., Jefferson CityStaff Liaison Emily Koenigsfeld, MAIA

Education CommitteeThe Education Committee provides professional development opportunities for members to assist them in acquiring the necessary knowledge and skills they need to provide the high-est possible level of service to the insurance consumer. The committee also monitors continuing education requirements; oversees the operation of professional designation programs adopted or endorsed by MAIA; and makes recommendations to other committees regarding educational programming to be offered at conferences and other events.

Chairman Vickie Winkler, Lakenan Insurance, Ste. Genevieve

Dawn Berry, Provident Insurance Agency, Florissant

Tami Brown, Mills & Sons, ClintonChristian DeLozier, Mike Keith Insurance,

ClintonChuck Hembree Jr., Clark-Lami-Hembree, ManchesterLaura Laramore, First State Insurance Agency, FarmingtonDarrin Stafford, Stafford & Stafford Insurance, HarrisonvilleStaff Liaison Emily Koenigsfeld, MAIA

Government and Industry Relations CommitteeThis committee monitors the marketplace, the government and the regulatory environment for issues impacting mem-bers and their clients, working with interested parties to de-velop strategies and solutions to deal with conflicts or changes within the industry. The committee also works closely with the Missouri legislature to achieve the goals of the independent agency system.

Chairman Chris Rupp, J.C. Rupp Agency, LibertyBrad Greer, Missouri General Insurance Agency,

St. LouisRon Harrison, Whitney-Harrison Insurance,

KirksvilleKyane Marble, Hawkins Insurance Group, EdinaJeff Mentel, AHM Financial Group, St. Louis

Tom Montileone, Barker-Phillips-Jackson, SpringfieldDarren Smiley, Hillebrand Insurance, MexicoJeannine Stuart, Missouri General Insurance Agency, St. LouisLee Wilbers Jr., Wallstreet Group, Jefferson CityLobbyist Gary Burton, Burton-Liese & Associates, Joplin Lobbyist Chris Liese, Burton-Liese & Associates, Jefferson CityStaff Liaison Larry Case, MAIA

Leadership Conference CommitteeThis committee organizes, plans and implements MAIA’s pre-mier event, formerly known as the Annual Convention. The Leadership Conference joins quality education with excellent

How can insurance agents make the most of technology while focus-ing on running a successful insurance business?This class is made up of mini courses focused on where specific technologies are and where they are going in the next two to three years. These are the things your instructors, Duke Williams and guest Steve Anderson, are working on now.Join them for two days of time travel and re-imagine how you and your business will look in the next few years.

Each course in the Risk Specialist Series offers an intermediate to advanced look into different niche markets. Offered quarterly in Jefferson City to members only, the courses are designed to help you become the insurance advisor your important clients need.

Technology Trends for Insurance Agencies Registration FormRegister online at www.missouriagent.org.

The training you’ve been

waiting for is here!

Risk specialist seRies

Become the Trusted Choice advisor your clients need.

Instructor:Duke Williams with guest Steve Anderson Duke Williams has been a leader in insurance automation since 1981, when he founded Accu-Rater, the first com-parison rater. His companies have pioneered many other technologies, including upload and download, and real-time policy issuance in the field. He has also created several of

the most used websites in the property-casualty insurance space. A confessed technology junkie, Williams brings a unique ability to see the practical intersection of technology and the insurance business.

Steve Anderson is a nationally recognized insurance agency technology authority. He is a prolific writer, who is known for his knack for trans-lating “geek speak” into easily understood language. His newsletter, The Anderson Agency Report, is one of the best and most influential in the in-dustry. Because he fine-tunes his ideas in the real world agents are faced with, Anderson is one of the industry’s top technology consultants.

Technology Trends for Insurance Agencies

Jan. 23-24, 2013 (Day One: 10 a.m. - 5 p.m., Day Two: 8 a.m. - 3 p.m.)

MAIA Headquarters, 3315 Emerald Lane, Jefferson City, MO

• Identifyingtechnologytrends

• Thefutureoftechonologyinthenexttwotothreeyears

• andmuchmore!

Thislistwillbeupdatedandaspecificagendalistedonbackastheclassgetscloser.Withtechnologychangingsofrequently,wewanttobesuretobringyouthemostcurrenttopics.

Topics Covered Include:

Upcoming Risk Specialist Series Classes: “All in all – best insurance training I’ve attended.” — SurveyResponse(InsuringGarageExposures2011attendee)

Disaster Preparedness for Agents & Clients: April 24-25, 2013 Speakers: Don Donaldson, CIC, CRM, RPA, CHS-III and Angie Heavener, CIC, CPIAThis two-part seminar is aimed at helping agents prepare their agencies for disaster from a risk management perspective and help-ing them lead their clients in crisis preparation.

Life & Health Options for the Business Owner: June 26-27, 2013 Speaker: Jerry Rhinehart, CIC, CLU, ChFC, RHUThis seminar will include an update on the national health care reform and discussions on estate planning techniques, money in retirement accounts and worksite marketing.

CE Filed Pending Approval

You will not receive a refund or transfer credit if you do not notify us before the start of the event. All cancels and transfers must be received in writing. Refunds: a 90 percent refund applies if cancelling more than two weeks prior to start of event; 75% refund if cancelling fewer than two weeks before the event. Transfers: A $30 trans-fer fee will be assessed on any CIC or two-day seminar transfer made within two weeks of the program. Transfers may only be made to another MAIA course. Student must indicate a transfer course within two weeks of cancellation, or appropriate percentage of tuition will be refunded.

We work hard to make our programs accessible to all. If you need special accommodations, simply phone MAIA at 800-617-3658. Please notify us if you have any special dietary requirements.

Questions? Phone: 800-617-3658 (in Mo.), 573-893-4301; www.missouriagent.org; e-mail: [email protected]

Name ____________________________________________________ Agency/Company ____________________________________________

E-mail____________________________________________________ City/State/Zip _______________________________________________Which best describes your role? Owner/Principal Agency Mgr. Producer Account Mgr. Customer Service IT Company Rep

PRICING (Circle Selection) Early-bird Fee Regular Fee MAIA Members Only $199 (by Jan. 9) $250 (after Jan. 9)

Fee includes materials, CE filing fee and two lunches.

PAYMENT METHOD: Check enclosed or MC Visa AmEx Billing Address ______________________________________________

Card No: _______________________________ Ex. Date: ______Verification Code: _____ Cardholder Signature: _________________________ Make checks payable to: Missouri Association of Insurance Agents, P. O. Box 1785, Jefferson City, MO 65102-1785.

HOTEL: Contact the Best Western at 573-635-4175 by Jan. 8, 2013, and ask to receive the MAIA nightly rate of $86.40 plus tax.



MAIA 2012-13 committees continued from page 29

networking opportunities. It is also the stage for the annual Awards and Installation Banquet.

Chairman Randy Smart, Smart Insurance Agen-cy, Marionville

Brian Harrison, Harrison Agency, ColumbiaAlan Hedrick, County Wide Insurance, DexterButch James, Charles L. Crane Agency Co.,

ChesterfieldJon Stahly, W.E. Walker-Lakenan, Cape

GirardeauGary Thompson, Columbia Insurance Group, ColumbiaStaff Liaison Jeanne Blomberg, MAIA

Membership Retention and Solicitation CommitteeThe Membership Retention and Solicitation Committee re-views all membership dues categories, making recommen-dations for changes to the board of directors. It solicits new members from a continually updated prospect list and follows up with members who have not renewed their membership.

Chairman Patrick Clarkin, Charles L. Crane Agency Co., St. Louis

Ricky Baker, Robertson Insurance Services, Chillicothe

Mike Broghammer, United Fire Group, Cedar Rapids, Iowa

Mark Gibbins, Ellington Insurance Agency, Portageville

Paul Long, The Paul Long Agency, BolivarJared Self, Self Insurance Agency, SikestonJake Taylor III, Beckett Taylor Insurance, ColumbiaStaff Liaison Kelli Kloeppel, MAIA

Missouri Trusted Choice Big “I” ChampionshipThis committee coordinates a state tournament to send the al-lotted number of players to the Trusted Choice Big “I” Nation-al Championship. The committee is responsible for promoting the tournament and encouraging support from agency spon-sors and producer volunteers.

Chairman Darin Banner, Capstone Insurors, Bolivar

Mike Boone, Heffernan Insurance Brokers, Chesterfield

Nick Brenizer, Golden Rule Insurance Agency, Osage Beach

Jason Comfort, County Wide Insurance, DexterMarty Hensley, G M Peters Agency, LibertyJames Neuner, Winter-Dent & Co., Jefferson CityMatt Speight, Scott Agency, Montgomery CityConsultant Molly Hudgins, Future College Golf Association, St.

LouisStaff Liaison Jeanne Blomberg, MAIA

Nominations and Awards CommitteeThis committee seeks out and recommends to the board of directors qualified candidates for MAIA’s officers, directors and annual awards in accordance with the guidelines of the

association’s by-laws and policies, allowing for additional nominees from the membership and from the board.

Chairman Byron Robison, Great Southern Agency, Ozark


Planning CommitteeThe Planning Committee develops the association’s long-

range plan, as well as key goals for the coming year, and presents its recommendations to the board of directors.

Chairman Brian Harrison, Harrison Agency, Columbia


Political Action Fundraising CommitteeThis committee raises funds for the Missouri Agents Political Action Committee, necessary to maintain the association’s presence in the Missouri political arena. It consults with the association’s lobbyists for proper dispersal of these funds. The committee also encourages MAIA members to support the IIABA and PIA political action committees.

Chairman Brent Speight, Scott Agency, Mont-gomery City

J.L. Brenizer, Hawkins Insurance Group, EdinaByron Robison, Great Southern Agency, OzarkMollie Wells, AHM Financial Group, St. LouisStaff Liaison Lindsay Griffin, MAIA

Small Agency CommitteeThe Small Agency Committee produces an annual conference designed especially for small to mid-sized agencies to provide continuing education, information to help the small agent and expanded markets through a trade show. This conference is designed to accommodate the small agency with affordable prices and minimum time away from the office.

Chairman Steve Rackley, Rackley Insurance Agency, Gainesville

Devona Allen, Nimmo Insurance Agency, Buffalo

Nathan Brown, W.E. Walker-Lakenan, JacksonJason Comfort, County Wide Insurance, DexterJC Crow, Three B’s Insurance, Monroe City

Jim Joyner, Insurance Associates of Johnson County, Warrensburg

Andrea Powell, United Fire Group, St. Louis


David Tripp, Don Tripp Agency, MansfieldStaff Liaison Jeanne Blomberg, MAIA

Technical CommitteeThe Technical Committee researches and responds to MAIA members’ and their insureds’ questions and concerns regard-ing insurance policy coverages, terminology and interpreta-tions. Where appropriate, it communicates with industry and regulatory officials and recommends changes in regulations, endorsements, policy forms, etc., in order to clarify intent or improve coverages. The committee participates in the Mid-America Technical Conference and other forums relating to technical and coverage issues.

Chairman Jack Chapman, Bowersox Insurance Agency Co., Webster Groves

Jane Dobrinic, Charles L. Crane Agency Co., St. Louis

Carol Teasley, Westrope, Leawood, Kan.Tim Wahl, Gallaher Insurance Group, ColumbiaDavid Walker, Mills & Sons, Clinton


Young Agents CommitteeThis committee promotes the local, state and national activi-ties intended to attract young people into the insurance busi-ness and the agency system. It holds an annual conference and creates opportunities for leadership development within the association.

Chairman Tricia Jackson, Melahn Insurance Agency, Mexico

Jon Stahly, W.E. Walker-Lakenan, Cape Girardeau

Summer Cole, Beimdiek Insurance Agency, Carthage

Stephen Major, America First Insurance, St. Peters

Chris Meckem, United Insurors, LebanonParker Mills, Mills & Sons, ClintonTina Reed, Insurisk Excess & Surplus Lines, OzarkJared Self, Self Insurance Agency, SikestonJosh Stafford, Stafford & Stafford Insurance, HarrisonvilleStaff Liaison Jeanne Blomberg, MAIA

You’re an independent agent.

Who’s got

your back?

Protect.Our superior coverage through

Swiss Re and our expert claims

teams are in your corner in the

event of a claim.

Prevent.Our risk management

resources keep your agency

from making common

preventable mistakes.

Prosper.When you know you have the

best agency E&O protection,

you can focus on growing your

most important asset–your

business.

www.independentagent.com/EO

The Big “I” Professional Liability Program

The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading

edge agency E&O products and services. The IIABA and its federation of 51 state

associations endorse Swiss Re’s comprehensive professional liability program.

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Big “I” Advantage, Inc. and Swiss Re

You’re an independent agent.

Who’s got

your back?

Protect.Our superior coverage through

Swiss Re and our expert claims

teams are in your corner in the

event of a claim.

Prevent.Our risk management

resources keep your agency

from making common

preventable mistakes.

Prosper.When you know you have the

best agency E&O protection,

you can focus on growing your

most important asset–your

business.

www.independentagent.com/EO

The Big “I” Professional Liability Program

The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading

edge agency E&O products and services. The IIABA and its federation of 51 state

associations endorse Swiss Re’s comprehensive professional liability program.

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Big “I” Advantage, Inc. and Swiss Re

MAIAstaff

from your friends at

Larry Caseexecutive vice [email protected]

Lindsay Griffin, AIPvice president of [email protected]

Sheryl Van Leervice president of [email protected]

Leona Loetheninsurance services [email protected]

Jeanne Blomberg, AIPevents [email protected]

Laura Berendzendatabase [email protected]

Theresa Flippin, AIPcustomer service [email protected]

Monica Mize, AIPcustomer service [email protected]

Amy Hoffman, [email protected]

Kelli Kloeppel, AIPmember services [email protected]

Emily Koenigsfeldeducation [email protected]

Dawn Pattersonadministrative [email protected]



Don’t let an earthquake shake your agency

According to the U.S. Geological Survey, there is a 100 percent chance of an earthquake to-day. Most earthquakes are so slight that they are not felt by humans. But hundreds of earth-quakes each year are strong enough to cause property damage and injury.1

In North America, quakes along the Pacific seaboard are frequent and often significant. In fact, the USGS says that within the next 30 years, the probabilities of an earthquake mea-suring a magnitude of 6.7 on the Richter scale in the San Francisco Bay area and Southern California are 62% and 60% respectively.2

Some of the strongest quakes in the United States occurred along the New Madrid fault in 1811 and 1812. Contrary to popular belief, the New Madrid earthquake was not just one quake but a series of three major quakes over the course of three months. All three quakes measured in excess of 7.4 on the Richter scale. During the quakes, waves on the Mississippi River caused boats to capsize and resulted in a number of deaths. River banks caved and collapsed into the river. Whole islands disappeared.

The region most seriously affected was sparsely populated at the time,3 but today, the effects of another severe earthquake would constitute a major disaster, and the USGS says there is a 40% likelihood of a severe quake within the next 50 years.4 The New Madrid Fault Zone is now densely populated, with Memphis, Little Rock, Birmingham, Nashville and St. Louis all less than 250 miles from the most seismically active part of the area.

The East Coast is not normally considered a seismic area, yet in August 2011, a 5.8 quake hit Virginia and Washington, D.C., resulting in the closure of the Washington Monument for many months. Another strong earthquake on the East Coast occurred in Charleston, S.C., in the late 1800s, when more than 50 people died and most buildings in the city were dam-aged or destroyed.5

Earthquake damage and destruction is typi-cally excluded from homeowners and com-mercial property policies; however, earthquake coverage can be obtained from a number of insurance companies for an additional pre-mium amount.

Annette Hollingsworthvice president, Swiss Re Corporate Solutions

Still, only 12% of homeowners in California buy earthquake coverage.6 In Oregon, only 20% of homeowners buy earthquake insurance.7 In Missouri counties located near the New Madrid fault, the number of residences with earthquake insurance has decreased to less than 50% in re-cent years.8

This lack of insurance raises the question: What is the insurance agent’s duty to advise customers regarding the need for earthquake coverage?

Duty to adviseThere is no set standard regarding an agent’s duty to advise insureds that they need to obtain earthquake coverage. The extent of advice an agent must provide to clients varies from state to state. (Editor’s note: See “The Legal Side,” page 9, for a discussion on duty to advise from MAIA legal counsel Lew Melahn, J.D.)

Some states will find that, absent a special relationship, an agent has no duty to advise the client of optimum limits or insurance available or to tell the client when coverage is too low. This view was set forth in Blevins v. State Farm Fire & Cas. Co., 961 S.W. 2d 946 (Mo. Ct. App. 1998) where the court wrote in its opinion:

Missouri does not recognize a duty on the part of an insurance agent to advise customers as to their particular insurance needs or as to the availability of optional coverage. Farmers Ins. Co., Inc. v. McCarthy, 871 S.W. 2d 82, 85 (Mo. App. 1994). In McCarthy, the plaintiff argued that her insurance agent had an affirmative duty to advise her concerning underinsured motorist coverage. In rejecting this argument, the court identified several policy reasons for refusing to hold the agent liable. Holding the agent or company liable: (1) would remove the responsibility from the insured to look after his own financial needs; (2) would change insurance companies into financial counselors or guardians of the insured; (3) would open companies to liability for failing to advise of every conceivable option, even those suffered by competitors; and (4) would allow insureds to circumvent risk by allowing the opportunity for coverage after a loss by an allegation that insureds would have sought additional cover-age if it were offered. Id. at 85-86. The court

&errors omissions


also noted that insureds know more about their personal assets and ability to pay than does their insurance agent. Id. at 85. It fol-lows, therefore, that it is the responsibility of those seeking insurance to advise an agent as to what they want. Id.

Other states require there to be a special re-lationship between the agent and the insured if the court imposes an affirmative duty to advise customers about available coverage. The establishment of a special relationship is usu-ally based on one or several of the following factors: extra compensation beyond premium; long-term relationship where the agent is aware the customer is relying upon and depen-dent upon the agent’s advice; or the agent’s self-promotion as an expert.

In Durham v. McFarland, Gay & Clay, Inc., 527 So. 2d 403 (La. Ct. App. 1988), the Court of Ap-peals of Louisiana found an agent breached his duty to advise the insured of the need for resi-dential flood protection when the agent had handled the insured’s insurance needs for 10 to 15 years and the agent knew the insured had no flood insurance on the residence. Also see, Free v. Republic Ins. Co., 11 Cal. Rptr. 2d 296, 297 (Cal. Ct. App. 1992), where the court found a long-term relationship or special agreement with an insurance agent might create a “special duty to use reasonable care.”

A few states find the agent responsible to ad-vise clients about available insurance coverage, even absent a special relationship. New Jersey courts have stated that the agent has a duty to: (1) have the degree of skill and knowledge req-uisite to his or her employment responsibilities; (2) exercise good faith and reasonable skill, care and diligence in the execution of his or her em-ployment responsibilities; (3) possess reasonable knowledge of available policies and terms of coverage in the area in which the insured seeks protection; and (4) either procure the coverage necessary for the client’s exposures or advise the client of his or her inability to do so. Rider v. Lynch, 42 N.J. 465 (1964) at 467-477.

With regard to coverage for individuals, Cali-fornia has avoided the whole issue of whether or not agents have the responsibility to advise their clients about the need or the availability

of earthquake coverage by passing legislation referred to as the “Earthquake Insurance Act.”9 This law requires carriers to advise their insureds of the availability of coverage.

DocumentationThe agent should reduce all recommendations and advice to writing and take clear notes of cli-ent instructions. Confirm discussions by way of letters sent to your client. If you discuss earth-quake coverage with your client, make sure you document your file to show that you have advised your client of its availability, even if your client rejects the coverage.

If your client rejects coverage, send a confirm-ing letter that you offered it. Ask clients to sign and return a form acknowledging that they were offered coverage and choose to reject such. Retain a copy of the letter in the policy file indicating how it was sent with proof of deliv-ery where possible.

Documentation is extremely important when disputes arise. Memories may fade, but proper documentation lives on.

Explanation of coverage provisionsAs an agent, you are more likely to be drawn into litigation when your client is disappointed with the amount of payment for a claim or has misunderstandings regarding provisions found in the policy. Because earthquake insurance is somewhat unique in its terms and provisions, the agent should explain unique provisions, which may not be understood by the client, such as deductible provisions, exclusions and sublimits.

Earthquake insurance is structured as a cata-strophic coverage, thus requiring the insured to have greater participation in the payment of loss than a typical property policy. Typically, the deductible for earthquake insurance is struc-



tured as a percentage of the limits of insur-ance rather than a set amount per occurrence. For example, a 5% deductible on a $200,000 dwelling would mean a deductible of $10,000 whether the loss was $50,000 or $200,000.

Additionally, the deductible percentage applies to each coverage separately, so if the insured’s dwelling limits were $200,000 and the insured’s personal property limits were $100,000 and the insured carried a 5% deduct-ible, the insured would be responsible for a deductible of $10,000 for the dwelling and another $5,000 for the personal property.

Every policy has certain exclusions, and that is also true with earthquake policies. For in-stance, the earthquake policy may exclude or have a limitation on the amount payable for damage to swimming pools, fences, or china and glassware. Unreinforced masonry siding or chimneys and brick walls may also be excluded or limited, and this is not an exhaustive list.

Additionally, there may be underwriting restrictions, such as waiting periods during which an agent is unable to secure earthquake

coverage for clients. When there has been recent seismic activity, individuals become eager to add earthquake coverage, yet additional aftershocks creating damage to property may still occur. Thus insurers will place a moratorium on writing new earthquake coverage, which typically lasts from 30 to 60 days. The agent should clearly commu-nicate to clients that no coverage can be bound until the moratorium has elapsed.

If the agent has an answering machine or ser-vice, it is always advisable to leave an outgoing message emphasizing that coverage cannot be bound or altered by leaving a message on the answering machine.

ConclusionDespite recent quakes and an increasing aware-ness of the devastation earthquakes can cause, few consumers are choosing to purchase insur-ance protection for the inevitable event. Lack of insurance and poor understanding about the coverage options available will increase the potential for errors and omissions claims to be brought against insurance agents. Understand-

errors&omissions continued from page 35


ing your duty to advise your clients, document-ing your files and carefully educating your cus-tomers about the terms of earthquake coverage will keep you on steady ground even with the earth quivers.

Annette Hollingsworth, J.D., CPCU, CLU, ARC, serves Swiss Re’s products unit.

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability aris-ing out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be con-sidered legal, accounting or professional advice, nor shall it serve as a substitute for the recipi-ent obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders.

(Endnotes)1 “100% Chance of an Earthquake.” 100% Chance of an Earthquake. Web 17 June 2012. http://earthquake.usgs.gov/learn/topics/100_chance/php.

2 FAQs – Probabilities, Seismic Hazard & Earth-quake Engineering.” FAQs – Probabilities, Seis-mic Hazard & Earthquake Engineering. Web. 15 June 2012. http://earthquake.usgs.gov/learn/faq/?categoryID=9.

3 “Historic Earthquakes.” Historic Earthquakes. Web. 15 June 2012. http://earthquake.usgs.gov/earthquakes/states/events/1811-1812.php.

4 “Memphis Earthquake Hazard Mapping Proj-ect.” Memphis Earthquake Hazard Mapping Proj-ect. Web. 17 June 2012. http://earthquake.usgs.gov/regional/ceus/urban_map/Memphis/.

5 “Historic Earthquakes.” Historic Earthquakes. Web. 15 June 2012. http://earthquake.usgs.gov/earthquakes/states/events/1886_09_01.php.

6 Kovacs, Paul. Reducing the Risk of Earthquake Damage in Canada: Lessons Learned from Haiti and Chile. Publication. Institute for Catastrophic Loss Reduction. Print. Nov. 2010.

7 “Few Oregonians Have Earthquake Insurance.” Portland Business Journal. 18 Jan. 2010. Web. 15 June 2012. http://www.bizjournals.com/Portland/stories/2010/01/18/daily8.html.

8 “Missouri Department of Insurance. News. Web. 17 June 2012. http://insurance.mo.gov/news/2011/Department_of_Insurance_Missouri_consumers_not_being_protected_with_earth-quake_insurance.

9 “Earthquake Insurance” Earthquake Insur-ance. Web. 17 June 2012. http://www.insurance.ca.gov/0100-consumers/0060-information-guides/0040-residential/earthquake-insurance.cfm.


Microinsurance makes

big social impactMandla, like so many others in South Africa, struggled for the basics of a comfortable life. He and his family spent most of their time on the hand-to-mouth side of poor. When an op-portunity arose for Mandla to open a gas sta-tion, it looked like he might finally secure the steady stream of income he needed to bring his family into the middle class and become a producing member of society.

That’s when he was diagnosed with HIV. With a fatal disease and no insurance, he was not a good financial risk for the loan of 2 mil-lion rand he needed to open the gas station.

Mandla’s situation is familiar throughout the developing world. World Bank statistics re-ported that 4 billion people were living on less than $4 per day in 2010 (reported in 2005 in-ternational dollars based on purchasing power parity). Many of these individuals are actually poised to move into a higher earning bracket but cannot take the financial risks that would put them there. Because they have so little to begin with, their risk of losing everything is enormous.

This is the sector of the world’s population that is the target of a developing insurance

market known as microinsurance. Microinsurance products are designed for individuals who can only afford the meagerest of premiums but who need a safety net in order deal with risks in a proactive rather than reactive manner.

“Microinsurance can serve as a tool to actively manage these risks, and therefore, it provides them the means to have a more sustainable liveli-hood,” explains Paula Pagniez, New York, senior microinsurance expert for Swiss Re Insurance.

Just as traditional insurance does in current developed markets, microinsurance gives con-sumers in poor but developing areas the confi-dence to invest – often in a small, family business like Mandla’s – without fear. This in turn allows them to make decisions for health and happiness rather than just for survival. For instance, a crop policy for a family farm might give the farmer the peace of mind to plant another field and still send his daughter to school where before, that tuition money would have been necessary to live on if the new crop failed.

Providers also benefit from the sale of microin-surance, according to a Lloyd’s report, “Insurance in Developing Countries.” A larger, more diversi-fied risk pool allows companies to move into new

Amy J. Hoffmaneditor, MAIA


markets, where the population is underserved, helping to balance the stagnation that has oc-curred in many developed areas, where the insurance market is saturated. The social invest-ment can also be a resource to improve the company’s reputation, as well as the reputation of the entire industry.

“What we see is that by helping these sectors of society climb the financial ladder, we are in turn helping the insurance market,” explains Pagniez. “It’s truly the potential of creating new markets, helping with the dynamic growth of society,” she adds.

Putting microinsurance to work, however, requires a different approach than traditional insurance. The most noticeable difference is the premium structure. LeapFrog, an international microinsurance investment company, estimates that most policy premiums range from $1-10 per month depending on the product and the geographical area. Prices are often group rates, even for property-casualty policies, rather than individual or risk-adjusted rates.

Claims may also be adjusted on a group basis, rather than individual losses, and exclusions are relatively few.

Perhaps the most unique feature of micro-insurance is its distribution system. Traditional agent or direct carrier sales are almost use-less in places where consumers may be spread throughout huge rural areas and are often completely unfamiliar with the concept of insur-ance. To deal with these challenges, providers work with another organization, sometimes several, to reach the client. These organizations might be local government sectors, non-profit organizations, banks or microfinance institu-tions, hospitals and doctors, or area co-ops.

Reinsurance also plays a huge role in the microinsurance industry by providing carriers the financial security they need to work within the developing market. And companies such as Swiss Re serve as experts in the field, helping to initiate programs in new areas. Since insurance regulations vary throughout the industry, Swiss Re has to approach each new program and dis-tribution scheme as an entirely new project.

“We work with each market and actually contribute to the development of each market according to its characteristics,” says Pagniez. “Each scheme is going to be different. It’s bot-tom-up development.”

The predominant consideration when creat-ing a new program is the need of the consum-ers in a given area. Health and life programs currently dominate the market, but the demand for property policies, especially crop coverage, is growing across the globe. In keeping with the

flexible and need-based nature of microinsur-ance, policies sometimes combine different types of coverage.

Catastrophe insurance is another growing product, and indexed policies, which automati-cally pay out when a certain threshold (such as amount of rainfall in a given period) is reached. The index provides a simple approach to claims adjustment and is easy to understand for policy-holders who have a limited financial education.

Microinsurance has given birth to some unique products, such as funeral insurance in India, where certain religious criteria can bring the cost of funerals to more than 15 times the average monthly household income. Takaful is a specific type of mutual policy designed to ad-here to Islamic laws.

In South Africa, the greatest demand is Man-dla’s: health insurance that does not exclude HIV and AIDS. AllLife, a company that partners with LeapFrog, is currently the only insurer for these patients. The program requires clients to follow an “adherence management program,” through which they manage their health with regular testing, medication and lifestyle choices.

After being turned down for the loan he needed to open his gas station, Mandla was directed to AllLife. Not only did the company issue an affordable health policy, but it worked with the bank to ensure that Mandla received the loan.

The microinsurance market is making changes like this one every day across the globe.

“Microinsurance is truly protecting the in-come levels of the populations we are work-ing with,” says Pagniez, adding, “It’s fostering development in health, education and micro-entrepreneurship opportunities.”


an option can provide excess limits over your employment practices liability policy if you have one. My current umbrella policy doesn’t provide these coverages, but my new one will.

Insurance for our clientsThere are also a number of insurance products offered by MAIA for our clients. I would suggest you take a look at the personal umbrella and in-home business policies by RLI. These are han-dled by MAIA and provide excellent coverage when your own insurance carrier won’t provide an umbrella over another company’s underlying policy. RLI is an A+ rated carrier with a broad appetite, competitive pricing and streamlined processing for hard-to-place, stand-alone um-brella policies. Our agency has had excellent success with both these products.

Agency financingFinally, I would like to highlight the Bank Direct Capital Finance and Capital Premium Financing programs. These are also endorsed on a state level by MAIA. There are a number of other premium financing programs out there, but we have found Bank Direct and Capital Premium Financing provide excellent service and rates and are MAIA Partners.

And this is just to name a few! For a full list of products and services, simply go to the MAIA website and click on “Member Services and Products,” or see page 26. MAIA is continually reviewing its programs to make sure they are relevant and provide value to the membership. Plus, please don’t forget that using the services and products offered by our association helps fund other important activities like our legisla-tive efforts and agent advocacy.

If there are any services or programs you think MAIA should consider offering, please don’t hesitate to let me know. You can e-mail me at [email protected].

I would be remiss if I didn’t mention our final big push for InsurPac contributions in 2012. Byron Robison did an excellent job getting us off to a good start, but we still need $3,628 in donations to hit our goal of $17,200.

Our legislative efforts in Missouri and on a national level are not party based. The support has nothing to do with who is a Democrat or Republican. Both InsurPac and MAPAC work to

protect the rights and best interests of inde-pendent agents and small businesses. In order for this to happen, we must have a strong voice and an active role in the legislative process, and that takes money. Please help support the inde-pendent agent and small business communities by helping us hit our goal for 2012. Any and all donations are important.

One of my favorite holidays, Thanksgiving, is just around the corner. It is a time to spend with family and be thankful for the many things we are blessed with. Some of us have lost family members or close friends this past year, and it is a wonderful time to remember them. We’ve also learned the importance of cherishing those family and friends we still have. Please take a moment with me to remember the four past presidents we lost this past year: my father, Richard Clift; Dick Jackson; Wayne Morgan; and Charlie Foster. It is a reminder of the great lead-ership we have been lucky to have at MAIA over the years.

We are thankful for your membership.

fromthepresident continued from page 5

The ABCs of the Big “I” PAC

Intensity can set one apart from all others. Agents know this. That’s why so many choose

SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.

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Enforcement actions• Cortez Brown, St. Louis, Mo., resident insur-

ance producer license refused.

• Darrin M. Bumpus, St. Louis, motor vehicle extended service contract producer license refused.

• Jonas A. Caffey, O’Fallon, Mo., motor vehicle extended service contract producer license granted subject to special conditions.

• Antonio L. Campbell, St. Louis, Mo., resident insurance producer license refused.

• Judith Carrillo, Brighton, Colo., voluntary for-feiture of $250 for failure to report an admin-istrative action in another jurisdiction.

• LaChelle Cutts, St. Louis, Mo., motor vehicle extended service contract producer license granted subject to special conditions.

• Jay R. Gottman, Lee’s Summit, Mo., insurance producer license revoked.

• Faisal Hamdan, Florissant, Mo., voluntary forfeiture of $1,000 for conducting public ad-juster business without a valid license.

• Robert Haenisch, Overland Park, Kan., volun-tary forfeiture of $500 for failing to report a felony conviction.

• James W. Hodge, Belding, Mich., motor vehi-cle extended service contract producer license application refused.

• Rebecca L. Hoskins, Hollister, Mo., voluntary forfeiture of $1,000 for conducting title insur-ance business without a proper license.

• Pamela Huston, Gallatin, Mo., voluntary for-feiture of $600 for failure to submit monthly affidavit.

• Alen Ighedosa, Kansas City, Mo., voluntary forfeiture of $250 for failing to file mandated paperwork.

• Phillip L. Joyce, Marshfield, Mo., bail bond agent license granted subject to special conditions.

• Leslie H. Kent, Nixa, Mo., bail bond agent li-cense renewal refused.

• Derek Kemp, Linn, Mo., insurance producer license granted subject to special conditions.

• Bobb A. Meckenstock, Hays, Kan., voluntary forfeiture of $250 for failing to report a FIN-RA suspension.

• Roger Metzger Jr., voluntary forfeiture of $1,000 for failing to file mandated paperwork.

• Kristine Moss, St. Peters, Mo., voluntary for-feiture of $1,000 for violations of insurance regulations.

• Robert J. Peters Jr., Florissant, Mo., motor vehicle extended service producer license refused.

• Mary S. Pillock, Margate, Fla., insurance pro-ducer license revoked.

• William J. Porath, Green Bay, Wis. (last known), insurance producer license revoked until complaint filed June 13, 2012 or a future complaint may be served.

• Steven C. Presson, St. Peters, Mo., motor vehicle extended service contract producer license refused.

• LaShawna Purifie, Phoenix, Ariz., voluntary forfeiture of $250 for failing to report a crimi-nal charge.

• Michael L. Reed, Olivette, Mo., motor vehicle extended service producer license application refused.

• Corey Ryan, Forissant, Mo., voluntary forfei-ture of $250 for failing to report misdemean-or convictions.

• Samuel L. Sadler, O’Fallon, Mo., motor vehicle extended service contract producer license granted subject to special conditions.

• Tamela Sanders, Doniphan, Mo., voluntary forfeiture of $200 for failing to report misde-meanor convictions.

• Jason S. Spore, St. Charles, Mo., permission to maintain current insurance producer license subject to special conditions.

• Morton Insurance of Colorado, Denver, Colo., voluntary forfeiture of $250 for failure to report an administrative action by another jurisdiction.

• Starr Insurance Holdings, New York, N.Y., vol-untary forfeiture of $1,000 for failing to file mandated paperwork.

Market conduct exams• Aetna Health Insurance Co. and Aetna Life

Insurance Co., Hartford, Conn., stipulation of settlement filed and voluntary forfeiture of $1.5 million.

• Agents National Title Insurance Co., Colum-bia, Mo., stipulation of settlement filed and voluntary forfeiture of $12,000.

• American Family Life Assurance Company of Columbus, Columbus, Ga., regulatory settle-ment agreement filed.

• Chubb National Insurance Co., Warren, N.J., stipulation of settlement filed and voluntary forfeiture of $68,000.

• Dakota Homestead Title Insurance Co., Sioux Falls, S.D., stipulation of settlement filed and voluntary surrender of certificate of authority to transact business in the state of Missouri.

• Dakota Truck Underwriters, Sioux Falls, S.D., stipulation of settlement filed and voluntary forfeiture of $17,2500.


regulatoryactions

Intensity can set one apart from all others. Agents know this. That’s why so many choose

SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.

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• Dallas National Insurance Co., Dallas, Texas, stipulation of settlement filed and voluntary forfeiture of $13,500.

• First American Title Insurance Co., Scotts-dale, Ariz., voluntary forfeiture of $2,000.

• Great Northern Insurance Co., Warren, N.J., stipulation of settlement filed and voluntary forfeiture of $2,000.

• Pacific Indemnity Insurance Co., Warren, N.J., stipulation of settlement filed and vol-untary forfeiture of $7,000.

• Stewart Title Guarantee Co., Houston, Texas, stipulation of settlement filed and voluntary forfeiture of $128,000.

• Vigilant Insurance Co., Warren, N.J., stipula-tion of settlement filed and voluntary forfei-ture of $4,000.

• XL Specialty Insurance Co., Stamford, Conn., stipulation of settlement filed and voluntary forfeiture of $21,000.

• Zenith Insurance Co., Woodland Hills, Calif., stipulation of settlement filed and voluntary forfeiture of $21,500.

Company changes• American Feed Industry Insurance Company

Risk Retention Group, Des Moines, Iowa, effective June 30, 2012, withdrew as a pur-chasing group.

• Arthur J. Gallagher School Risk Purchasing Group, Aliso Viejo, Calif., effective July 13, 2012, registered as a purchasing group.

• Billings Mutual Insurance Co., Billings, Mo., effective July 1, 2012, Scott County Farmers Mutual Insurance merged with and into the aforementioned company.

• Carl Warren & Co., Placentia, Calif., effective Aug. 6, 2012, was admitted as a third party administrator.

• Cooperating School Districts of Greater Kan-sas City Self-Insurance Pool, Kansas City, Mo., effective Aug. 15, 2012, was admitted as a political subdivision assessable.

• Distinguished Star Contractors RPG, Wilm-ington, Del., effective July 19, 2012, regis-tered as a purchasing group.

• Euler Hermes North America Insurance Co., Owings Mills, Md., effective Aug. 2, 2012, changed its name from Euler Hermes Ameri-can Credit Indemnity Co.

• Generation Life Insurance Co., Scottsdale, Ariz., effective Aug. 2, 2012, changed its name from Congress Life Insurance Co.

• Global Reinsurance Corporation of America, New York, N.Y., effective July 1, 2012, Global

Reinsurance Corp. merged with and into the aforementioned company.

• Housing Enterprise Insurance Co., Cheshire, Conn., effective Aug. 2, 2012, added fidelity and surety authority.

• HumanaDental Insurance Co., Depere, Wis., effective July 18, 2012, registered as a discount medical provider.

• Merchants National Bonding, Des Moines, Iowa, effective July 13, 2012, was admitted with property and liability authorities.

• Midwest Family Mutual Insurance Co., Minne-apolis, Minn., effective July 19, 2012, redomes-ticated from Minnesota to Iowa.

• National Insurance Marketing Brokers, Kansas City, Mo., effective Aug. 6, 2012, was admitted as a third party administrator.

• Patriot Claim Services, Fort Lauderdale, Fla., effective Aug. 6, 2012, was admitted as a third party administrator.

• Phoenix Physicians Insurance Risk Purchasing Group, Payallup, Wash., effective July 1, 2012, withdrew as a purchasing group.

• Plico Risk Retention Group, Oklahoma City, Okla., effective Aug. 6, 2012, was registered as a risk retention group.

• Protective Life Insurance Co., Birmingham, Ala., effective July 1, 2012, United Life Insurance Co. merged with and into the aforementioned company.

• Smith Auto Group Bella Vista, Pineville, Mo., effective Aug. 15, 2012, was registered as a motor vehicle service contract provider.

• Smith Auto Group Bella Vista 2, Pineville, Mo., effective Aug. 28, 2012, was registered as a motor vehicle service contract provider.

• Smith Auto Group Bella Vista 3, Pineville, Mo., effective Aug. 15, 2012, was registered as a motor vehicle service contract provider.

• Tokio Marine America Insurance Co., New York, N.Y., effective Aug. 31, 2012, was ad-mitted with property, liability, fidelity and surety, accident and health, and miscellaneous authorities.

• Wellnesspro Purchasing Group, American Fork, Utah, effective July 9, 2012, registered as a pur-chasing group.

• Western Insurance Co., Reno, Nev., effective July 18, 2012, certificate of authority revoked.

• Youth Organizations Safety Association, Gar-den City, N.Y., effective July 24, 2012, regis-tered as a purchasing group.


SUPPORT YOUR MISSOURI WHOLESALERSFor all hard-to-place, Excess and Surplus Lines and specialty accounts.

Call the people that support your organization.

P. O. Box 1496 • Jefferson City, MO 65102(573) 635-0736

American Surplus Lines Agency, Inc. 913-888-8400 877-642-2752 Fax 866-936-0400 www.ASLAINC.netBohrer, Croxdale & McAdoo 417-869-2550 800-779-2550 Fax 417-869-5102 www.bcmins.comBreckenridge Insurance Services, LLC 314-725-8394 800-999-4774 Fax 314-725-4317 www.breckis.comBurns & Wilcox - St. Louis 314-819-0400 800-331-4128 Fax 314-819-0440 www.burns-wilcox.comBurns & Willcox - Kansas City 913-451-3135 866-476-0439 Fax 913-451-3156 www.burns-wilcox.comChris-Leef General Agency, Inc. 913-631-1232 800-548-0491 Fax 913-631-1128 www.chris-leef.comContinental American Agency, Inc. 314-241-7969 866-764-8451 Fax 314-241-1474 www.caains.comDavidson-Babcock, Inc. 913-469-1188 800-203-3223 Fax 913-469-1177 www.davidson-babcock.comGateway Underwriters Agency, Inc. 314-238-0070 800-325-7652 Fax 314-238-0065 www.gua-stl.comGraham-Rogers, Inc. 918-336-2800 800-456-8123 Fax 918-336-7196 www.graham-rogers.comGresham & Associates 417-823-3924 866-251-9646 Fax 417-823-3979 www.gresham-inc.comMed James, Inc. - Kansas City 913-663-5500 800-255-6503 Fax 888-216-2014 www.medjames.comMed James, Inc. - Springfield 417-886-3535 800-255-6503 Fax 417-886-2295 www.medjames.comMed James, Inc. - St. Louis 636-524-0080 800-255-6503 Fax 636-524-0088 www.medjames.comM.J. Kelly Company 417-883-2688 800-725-7211 Fax 800-678-7211 www.mjkelly.comSwett & Crawford 314-821-2699 Fax 314-822-2135 www.swett.comWestrope 816-842-8222 Fax 816-842-3081 www.westrope.comWestrope General Agency 816-246-1200 800-788-4347 Fax 816-246-1290 www.westrope.comWorldwide Facilities, Inc. 314-436-3318 Fax 314-436-4309 www.wwfi.com

Association of Missouri

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Lockton honors announcedLockton Cos., Kansas City, has been named to InformationWeek magazine’s “Information-Week 500,” which recognizes the country’s most innovative users of business technology.

The insurance agency has also been selected as one of the “Best Places to Work in Insurance” for 2012 by Business Insurance.

Members named Best Practices agenciesFour MAIA members agencies have been in-cluded in the list of 2012 Best Practices agen-cies from IIABA and Reagan Consulting. The Missouri agencies are: AHM Financial Group, St. Louis; BancorpSouth Insurance Services, Springfield; Ollis & Co., Springfield; and The In-surancenter, Joplin. See page 19 for information about becoming a Best Practices agency.

In memoriamRichard (Dick) Jackson, Springfield, passed away Sept. 21, 2012, at the age of 65. Jackson served as the president and CEO of Barker-Phillips-Jackson until he retired in 2002. He continued as chairman of the board for two more years.

He was president of MAIA in 1981 and was ac-tive with the association for many years. Jack-son was the chair of the Government Relations Committee from 1982-89, and he twice received the Committee Chairman of the Year award for his work. Jackson was named MAIA’s Young Agent of the Year in 1977 and Insurance Person of the Year in 1985. He received the E. Ellwood Willard Outstanding Service Award in 2007. Jackson was also named the Insurance Profes-sional of the Year for the Springfield Indepen-dent Insurance Agents.

In addition to his work with the association, Jackson was active in his community as a mem-ber of the Springfield Area Chamber of Com-merce. He supported many non-profit agencies and programs, including the Springfield Busi-ness and Development Corp.’s Partnership of Prosperity, the United Way of the Ozarks and Ozarks Public Television.

Jackson is survived by his wife, Gail, and his step children Tabitha Klessens and Joe Mills. Memorials are suggested to the Wounded War-riors Project, P.O. Box 758517, Topeka, KS 66675 or www.woundedwarriorproject.org.

agencynews

Dick Jackson


Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

We’re celebrating our 100th year by planning for our next 100 years.

Tanya Wentzel, Des Moines Branch Marketing ManagerTroy Boysen, Minneapolis Branch Commercial UnderwriterConnie Jarzynka, Omaha Branch Claims Adjuster

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

Classified AdsThe basic classified ad contains a maximum of 35 words (including head). Cost: $27.00 for up to 35 words. Blind ads: $41.00 for maximum of 35 words. MAIA agency members are entitled to a 50 percent discount on classified ads.

Ads must be submitted in writing to Advertis-ing Manager, Missouri Agent, P.O. Box 1785, Jef-ferson City, MO 65102-1785 or [email protected]. Ads will be invoiced.

Deadline for classified ads: first of month pre-ceding publication.

Hartford to sell retirement businessThe Hartford announced that it has signed a definitive agreement to sell its Retirement Plans business to Massachusetts Mutual Life Insurance Co. for a cash ceding commission of $400 million, subject to adjustment at closing. The sale, which is structured as a reinsurance transaction, is expected to close by the end of the year.

Cameron names new VPThe Cameron Mutual Insurance Co. board of directors announced the appointment of Phil Barnard to vice president of information systems. Barnard has served in the capacity of manager of the department since August 2011.

FirstComp rebrandedMarkel and FirstComp have announced a new brand, Markel FirstComp, and a new indepen-dent agent portal. Markel acquired FirstComp in October 2010, and it will now be known as Markel FirstComp.

The rebranding effort is part of the unveil-ing of the newly enhanced FirstQuote rating portal for independent agents.

Progressive earns IIABA awardProgressive was presented with the IIABA’s prestigious Best Practices Award of Excellence, which recognizes companies that have made imaginative, outstanding and unique contribu-tions in advocating Best Practices philosophies to enhance the independent agency system.

Partners net tech awardsAccident Fund, ACUITY, Auto-Owners Insur-ance Co., CNA, Fireman’s Fund, Progressive, Secura Insurance, Selective Insurance Com-

pany of America, State Auto, United Fire Group, and West Bend Mutual Insurance Co. each received the 2012 Interface Partnership Award from Applied Systems, which recognizes accom-plishments in agency interface over the past year, including download, real-time inquiry and real-time policy rating.

Allied Insurance, EMC Insurance Co., Grinnell Mutual Reinsurance Co., Travelers and The Hart-ford received the Interface Leadership Award from Applied Systems in recognition of their leadership in the advancement and innovation of company interface.

ACUITY, Aetna, Employers, FCCI, Grinnell Mu-tual Reinsurance Group and Progressive have been named to InformationWeek magazine’s “InformationWeek 500,” which recognizes the country’s most innovative users of business technology.

Amerisure celebrates 100 yearsAmerisure Mutual Insurance Co. celebrated its 100th anniversary Sept. 12, 2012. The company was founded in 1912 as the Michigan Workmen’s Compensation Mutual Insurance Co. It now has more than 670 employees and 11 Core Service Centers throughout the United States.

Grozdanich honored in KCPatti Grozdanich, Kansas City, vice president of network management for United Healthcare, was honored as one of the Kansas City Business Journal’s “Women Who Mean Business.” Gro-zdanich oversees United Healthcare’s network of contracted healthcare providers in Kansas, Northwest Missouri, Nebraska and Western Iowa. She also participates in the health plan leadership team.

companypartnernews

Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

We’re celebrating our 100th year by planning for our next 100 years.

Tanya Wentzel, Des Moines Branch Marketing ManagerTroy Boysen, Minneapolis Branch Commercial UnderwriterConnie Jarzynka, Omaha Branch Claims Adjuster

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

Missouri Association of Insurance Agents

PROGRAM 2012Listed below are the companies who strongly support the independent agency system and the Missouri Association of Insurance Agents.

DIAMOND

PLATINUM

GOLD EMC Insurance Co.Accident Fund and United HeartlandCameron Insurance Cos.Columbia Insurance GroupACUITYAnthem Workers’ CompensationAmerica First Insurance Co.

Safeco InsuranceWest Bend Mutual Insurance Co.TravelersUnited Fire GroupAnthem Blue Cross and Blue ShieldBankDirect Capital FinanceThe Hartford

SILVER Electric InsuranceSECURA InsuranceSelective Insurance Co. of America

Foremost InsuranceContinental Western GroupCNA

BRONZE Illinois Casualty Co.AAA MissouriImperial PFSCFM InsuranceState AutoGrinnell Mutual Reinsurance Co.Bituminous Insurance Cos.Valley Insurance Agency Alliance LLCQBEM J Kelly Co.TAS Insurance GroupJM WilsonPhiladelphia Insurance cos.Gateway Underwriters AgencyPrime Insurance Co.Cornerstone National Insurance Co.WestropeSAMBA Safety

United HealthcareAuto-Owners InsurancePatriot National Insurance GroupCommercial Insurance UnderwritersAmerican Mining Insurance Co.BMI Cos.AetnaCapital Premium FinancingAmerisure Insurance Co.FCCIFireman’s FundMissouri One Call SystemMed JamesEMPLOYERSThe Cincinnati Insurance Co.Gumtree Wholesale Insurance BrokersMidwestern Insurance Alliance

Missouri Association of Insurance Agents • 800-617-3658 • www.missouriagent.org

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