MARYLAND

INTHISISSUE:____________

New marketing resources

Future of website design

While everyone is talking about changes these days, we remain consistently committed to the values

and people who have helped us get where we are today. We remain loyal to the independent agents

who have delivered value to our customers every day for over 120 years.

Of course, there have been changes like advances in technology, more aggressive marketing and expanded lines

of business. At Donegal, we are determined to make any improvements we can to maintain a superior level of

quality.

We feel that consistency and loyalty are the rarest of commodities.

If your insurance agency could use a little consistency please give us a call.

www.donegalgroup.com

Consistent, Determined & Loyal

Call Rick Kelley,Senior Vice President800-877-0600

How to become a lean, mean marketing machine

It’s time to reinvent your agency into a lean, mean marketing machine. And IA&Bis there to coach you, spot you and – where necessary – give you an assist. Newmembers-only resources will help with the heavy lifting of strengthening yourbrand and bulking up your marketing efforts.

Page 12

Why your company needs an adaptive website

Customers, employees and other stakeholders are bringing and using their smartphones and tablets everywhere, and that definitely impacts how they see andinteract with your company online. That’s why at this point in time all companiesneed to make their site adaptive and design their websites for mobile first.

Page 16

12

16

ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2012. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent Editor5050 Ritter RoadMechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-11 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

4 Chair of the Board’s Message5 Member FAQ6 State News8 Preventing E&O10 Coverage Corner15 Glance at Events

23 IA&B Partners24 Technology UpdateIBC Advertisers IndexIBC Classified AdsIBC Last & Least

In every issueMission StatementPrimary Agent delivers ideas to help InsuranceAgents & Brokers’ members negotiate their uniqueposition as guardians of trust between insuranceconsumers and companies while facing thechallenges of maintaining a small business. PrimaryAgent also supports IA&B’s mission to preserve andadvocate the American Agency System.

Get social with IA&B

[ 3 ]

What’s as good as asmall business overcoming a

challenging claim?

almostWhat’s as good as asmall business overcoming a

challenging claim?

almost

An underutilized complaint department.An underutilized complaint department.

GUARDPlusComp • Businessowner’s • Auto • Umbrella

Good underwriting wins accounts;

strong claims service keeps them!

Your Business Is Our Business!®

A claim handled by GUARD will make the

best of a bad situation. Business owners

benefit from our:

Expert adjusting;

Speedy processing;

Cost containment; and

Fast, fair resolutions.

Our state-of-the-art techniques are unique

– the product of a quarter century of

experience. The proof

: high customer satisfaction

AND policy retention!

=

=

=

=

(and the benefit to

our agents)

A limited number of appointments are

available. Contact us to learn more:

www.guard.com/apply

PennPRIME is the municipal entity specialist that can clearly illustrate ways to reduce risk. Formed, owned, and governed by our members, PennPRIME offers an array of products and services that are custom-

tailored for Pennsylvania’s cities, townships, boroughs, and authorities.

Composed of two insurance Trusts, PennPRIME provides comprehensive property, liability and workers’ compensation coverage as well as unique service programs like grants, training opportunities and sample loss control policies.

Imagine a relationship with an organization that has the leadership,

of risk management off your shoulders. Don’t get snowed under. Imagine yourself a member of PennPRIME…call today!

Imagine lower riskWe’re specialists at getting a grip on your insurance needs

PennPRIME is a service program of the Pennsylvania League of Cities and Municipalities

Driving members to distinction.

OfficersNorman F. Basso, CPCU

Chair of the BoardYork, Pa.

G. Greg Gunn, CICVice Chair of the BoardLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PImmediate Past Chair of the BoardWest Chester, Pa.

MembersJoyce M. Bailey, CIC, CRM, CPIW

Newark, Del.

Henry “Butch” Bradley, Jr.Forest Hill, Md.

Timothy P. BurrisMifflintown, Pa.

N. Lee Dotson, CIC, AAIWilmington, Del.

Michael P. ErtelColumbia, Md.

John L. FrankenfieldTelford, Pa.

John B. HollisterMilford, Pa.

Diana M. Hornung Hanby, ACSRWilmington, Del.

Jocelyn R. Howard-Sinopoli, CIC, CISRButler, Pa.

Robert S. Klinger, LUTCF, CPIA+

Germantown, Md.

Douglas A. Loesel, CPCUErie, Pa.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Craig S. Mader Gambrills, Md.

Ann Gallen Moll, CICReading, Pa.

April E. Ressler, CICAltoona, Pa.

Scott C. Rogers, CPIA*York, Pa.

David B. Wasson Sr., CICState College, Pa.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM**New Castle, Del.

* Pa. IIABA National Director** Del. IIABA National Director+ Md. PIA National Director

Board of Directors

[ 4 ]

Norman F. Basso, CPCU

Chair of the Board’sM E S S A G E

Capitalizing on our strengths

Marketing. The word alone gives many of us a sinking feeling.Either we’ve been taken to the cleaner by a local ad firm, or we’readmittedly clueless, or we’re too busy to determine how to spendour marketing budget, or … the list goes on.

The problem — to be blunt — is that we’re getting kicked aroundby direct writers with hefty ad budgets and prestigious marketingfirms. The big boys are paying big bucks to be top of online search results and top of mind when personal lines customersconsider insurance.

But let’s step back and consider our differentiation points: choice,service, expertise, relationship, to name a few. Those are ourselling points. Those are the benefits that direct writers lack. Andthose are the very advantages we need to capture in ourmarketing and branding efforts.

Later this fall IA&B will roll out its first in a series of initiatives tobolster our marketing and branding work. They are tools andservices and resources that capitalize on our collective strengths.

It’s about moving the game to our turf and winning the battle forbusiness on our terms.

This month’s magazine shares a sneak peek at what’s to come.Emails over the coming weeks will do more of the same. Iencourage you to take advantage of these offerings and to takeyour marketing and branding efforts to the next level.

Until next month,

Norm

[ 5 ]

ANSWER:When there is a dispute over what should be entered on an ACORD form, the first step is generally to go straight to ACORDand check their instructions. Every form comes with an accompanying set of instructions providing guidance on everysingle box on the form. With the number of abbreviations on some of those forms, these instructions can come in handy.

In your case, your carrier’s requirements are actually consistent with ACORD's instructions. Fundamentally, it is more of a hassle, but it does make sense. The ACORD form instructions for the ACORD 25 (certificate of liability insurance) statethe following:

Bottom line, the insurer name and NAIC number should match the carrier that is providing coverage.

DO YOU HAVE A QUESTION? Email it to us at iab@iabgroup.com. Please use “Primary Agent FAQ” in the subject line of your message. You can also faxyour question to 717-795-8347. We look forward to answering your questions!

QUESTION: One of my carriers is insisting I must issue certificates showing the nameand NAIC number of the company affiliate that is insuring the risk. Can’t I show the parentcompany instead?

Member FAQ

Section Name Field Name Field and/or Section Description

INSURERSAFFORDINGCOVERAGE

INSURERSAFFORDINGCOVERAGE

Insurer A

NAIC #

Enter text: The insurer's full legal company name(s) asfound in the file copy of the policy. Use the actualname of the company within the group to which thepolicy has been issued. This is not the insurer's groupname or trade name. As used here, this is Insurer A.

Enter code: The identification code assigned to theinsurer by the NAIC. As used here, this is Insurer A.

Primary Agent | November 2012

State News

[ 6 ]

Workplace Fraud ActrevisitedMisclassifying employees as independentcontractors is still against the law, butbusiness customers are better armed toshow that there was no misclassification ofsole proprietors with whom they dobusiness.

The Workplace Fraud Act, which has beenin place since 2009, was amended by theGeneral Assembly during the 2012 session.The presumption that work performed byan individual paid by an employer createsan employer-employee relationship cannow be rebutted as long as properdocumentation can be produced.Producers are still urged never to assistcustomers in classifying their employees,but can point to the documentation thatwill be needed to exonerate the employerfrom inappropriate charges and penalties.

IA&B’s online resource on the WorkplaceFraud Act was updated to reflect thechange, and lists the evidence needed torebut the presumption.

www.iabgroup.com/md/workplace_fraud_act

Court weighs in onliteral interpretationof "first namedinsured"Is the first name listed on policy documentsalways the "first named insured"? No,according to the state's highest court. TheMaryland Court of Appeals ruled inSwartzbaugh v. Encompass InsuranceCompany of America that insureds on anauto insurance policy are entitled to choosewho will act as the first named insured andthat the first named insured is notnecessarily the first name listed on theDeclaration or policy documents.

The issue before the court was the validityof the uninsured motorist (UM) waiver,which is to be signed by the first namedinsured. The Swartzbaughs argued that theUM waiver was void, as it was signed byMrs. Swartzbaugh, whose name was notlisted first on the policy documents. Thecourt disagreed. IA&B’s legal brief, availablevia the URL below, provides the details.

www.iabgroup.com/md/swartzbaugh_encompass

New MembersW E L C O M E

Insurance Brokers of Maryland LLC

Emmitsburg, Md.

Court modifies pitbull ruling,outcome remainsunclearThe Maryland Court of Appealsamended its original decision imposinga strict liability standard for pit bullowners and landlords, but for many, therevision adds little clarity to the issue.The court had been asked to reconsiderits controversial decision from April ofthis year, and in August revised itsoriginal ruling to state that onlypurebred pit bulls, not mix breeds, areconsidered "inherently dangerous" andsubject to the strict liability standard.The problem is that the term “pit bull”was never defined by the court. Manyare arguing that there’s no such thing asa purebred pit bull as the term can beapplied to a number of different breeds.

IA&B has been in contact with theMaryland Insurance Administration(MIA) regarding its position on thepotential effects of the court's decisionon homeowners' policies. Following theGeneral Assembly’s failure to agree on alegislative remedy during the specialsummer session, the MIA and otherstakeholders are waiting to see howlegislators address the issue when theybegin the 2013 legislative session inJanuary. In the meantime, IA&B willcontinue monitoring market responseand is encourages members to reporthow their carriers are responding.

IA&B's legal brief, accessible via the URLbelow, has been updated to reflect thecourt's reconsideration.

www.iabgroup.com/md/tracey_solesky

In case you missed it …The following legislation and regulationtook effect Oct. 1:

w Moped and motor scooteroperators are required to carryliability and uninsured motoristscoverage with minimum limits of30/60/15.

w Homeowners’ insuranceapplications and new and renewalpolicies must include a notice fromthe insurer outlining how claimsmay be considered in thecancellation or refusal to renew.

w Notifications no longer arerequired for de minimis premiumincreases in commercial accounts.

w All certificate of insurance forms(with the exception of ACORD andISO forms, which are deemedapproved) must be filed with theMaryland InsuranceAdministration before use.

NCCI finds moremoderateincreases intemporarydisability durationThe increased duration of temporarytotal disability (TTD) indemnity benefitsthat began at the onset of the recentrecession has moderated in recentmonths. The National Council onCompensation Insurance Inc. (NCCI)released a 2012 update to its researchbrief, "Workers' CompensationTemporary Total Disability IndemnityBenefit Duration." The study found thatthe mean duration of TTD indemnity

benefits rose from 130 days in 2005 to147 days in 2009. For the first half of2011, the mean duration increased lessdrastically to 149 days.

www.ncci.com/documents/Workers-Comp-Temp-Benefit-2012-Update.pdf

Regulatoryupdates, straightfrom the horse'smouthKeeping tabs on theMaryland InsuranceAdministration (MIA) recently becameeasier. Thedepartmentintroduced a new, freeelectronic notificationservice that providesalerts when newinformation is addedto the MIA website.

Subscribers can choose email or textmessage alerts and can select to receivenotifications on up to 19 different topics,including proposed regulations, industrybulletins, administrative orders(decisions), community outreach eventsand others.

public.govdelivery.com/accounts/MDINSUR/subscriber/new

[ 7 ]

[ 8 ]

CURTIS M. PEARSALLCPCU, AIAF, CPIA

Curtis M. Pearsall, CPCU, AIAF,

CPIA, president of Pearsall

Associates Inc. and special

consultant to the Utica

National E&O Program,

supplied this article.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your E&O coverage,

contact IA&B at 800-998-9644

or iab@iabgroup.com.

Primary Agent | November 2012

Do you have any mistakes inyour files? While you wouldcertainly like to answer “no,”that response is probablybased more on hope thanfact. In all likelihood, everyagency has some errors in itsfiles. Yet it’s hard to fix thembecause you’re unsure whichfiles contain the errors. Thisis where the auditing processcan bear solid benefits.

In addition to potentiallyidentifying a file with someproblems, the audit processwill allow management tohave a comfort level that thestaff is complying withvarious expectations,including but not limited tothe importance of qualitydocumentation. Not meetingthe agency’s expectationscould result from employeesnot completelyunderstanding thoseexpectations, which suggestsa need for further training.

While performing periodicquality control audits helpsmanagement understandwhat’s happening within their

agency, it is also necessary toshow that the staff will beheld accountable for theirwork product and that theyare consistently performingstated procedures. Bottomline, it is difficult to grow inprofessionalism andefficiency without an auditingprocess. It truly is aninvestment in your agency.

“It’s not important ifit’s not measured”There is some truth to thisold saying. If your agency isnot performing an auditprocess today, the mentionof it will probably instill fear

in some staff members. Allstaff must realize thatauditing is performed invirtually every business andhelps ensure theorganization’s health.

As you develop the auditform, consider thoseprocedures/issues that aremost important. If you don’thave an audit form today,don’t worry about getting the process perfect right fromthe beginning. As youperform quality controlaudits, you will be able toidentify areas that must beadded — or deleted — fromthe audit form.

Documentation is a key issueif an Errors & Omissionsmatter develops, so ensuringthat the staff meets theexpectations in this area isextremely important. Forexample, documentation thatstates “spoke with insuredregarding their homeowners’insurance” should not beconsidered acceptable as itlacks the necessary detail tobe of any value.

WHEN WAS THE LAST TIME YOU “AUDITED”YOUR AGENCY?

PreventingE R R O R S A N D O M I S S I O N S

It is difficult to growin professionalism

and efficiencywithout an auditing

process. It truly is

an investment in

your agency.

[ 9 ]

How many files should bereviewed?This is not an easy question toanswer. It may take some“experimentation.” It is obviously notpossible — or practical — to reviewevery file. Conversely, only reviewing1 percent of the files probably wouldnot give you the comfort level thatexpected procedures are beingfollowed consistently.

The proper number will dependgreatly on the amount of workperformed. The goal is to review thenumber of files that providescredibility to the final score. Reviewfiles for all employees, even if theyare 30-year veterans. Just becausesomeone is a long-time employeedoesn’t mean they can’t make amistake. For newer staff, reviewing alarger number of files is suggested.This will help identify areas wherethere is some misunderstanding or aneed for further training.

All areas should bereviewedBecause your agency probablyconsists of numerous disciplines —such as marketing, customer service,CSR, sales, accounting, etc. — ensurethat each of these is reviewed. Eachof these areas has procedures that, if disregarded or not performedproperly, could cause problems forthe agency. Each area must bereviewed so you can have theconfidence that the agency is in good shape.

Who should conduct theaudits and how often?This will be based largely on thenumber of files to be reviewed.Regardless of the number ofindividuals performing the task, thekey is that all individuals possess thenecessary experience and have beentrained to perform these audits.

Conduct these audits regularly,monthly if possible. This will help toquickly identify any emergingissues/problems or need for training.

Evaluating the resultsWhat do the audit results tell you? Do they give you the comfort levelthat the agency is in good shape orseem to imply you have some workto do? Do specific areas/individualsstand out?

Results should be tabulated for eachof the areas within the agency and foreach employee. Tell staff memberswho performed well on the review —and thank them for their efforts andcommitment. For those that struggledor did not “pass” the review, meetwith them to better understand thereasons. Is there a need for additional

training or another reason, such asthey think their way is the better way?The goal is to see improvementwhich, hopefully, will occur throughthis dialogue. Consider factoring theaudit results into an employeeperformance review to add some“teeth” to the process.

There are two ways to find out if yourstaff is or isn’t doing their jobs andmeeting various expectations:perform periodic audits to truly get ahandle on what is happening in youragency or wait for an E&O claim todevelop. While the first approach may take some time, it is the morecost-effective approach.

At Harford Mutual, we’re committed to being here for our independentagents and policyholders. Accessible. Experienced. Accountable. Responsive. That’s Harford Mutual. That’s what mutual success is all about. Learn more about opportunities for mutual success with Harford Mutualat harfordmutual.com.

CoverageC O R N E R

[ 10 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

Primary Agent | November 2012

Vertical means, “At rightangles to the horizon;extending perpendicularlyfrom a plane; upright.”Horizontal means, “Parallelto or in the plane of thehorizon; occupying orrestricted to the same levelin a hierarchy.” That’s whatthe dictionary says.However, with my limitedvocabulary, I simply say,“Horizontal is sideways, andvertical is up and down.”That works for me.

Why are we discussing“horizontal” and “vertical”when we’re supposed to betalking about insurance?Well, just read on.

A contractor entered into aconstruction agreement witha project owner. You knowthe drill: The contractoragreed to indemnify theproject owner for any and alllosses, damages, injuries,costs, expenses, etc. arisingout of the project. Inaddition, the project ownerrequired the contractor topurchase and maintaincertain policies of insurance

– Commercial GeneralLiability (CGL), BusinessAuto, WorkersCompensation AndEmployers Liability, andUmbrella (Excess) Liability.

The project owner didn’tstop there. The contractornot only has to purchaseand maintain those policiesof insurance, but thosepolicies must have thefollowing limits:

w Commercial GeneralLiability (CGL):$1,000,000occurrence/$2,000,000aggregate

w Business Auto:$1,000,000/accident

w Employers Liability:$1,000,000/aggregate

w Umbrella (Excess)Liability: $5,000,000

In addition, the contractor’spolicies must be endorsed tosatisfy the followingcontractual requirements:

w Project owner asadditional insured for

ongoing and completedoperations

w Aggregate shall apply tothe described project

w Contractor’s policiesshall be primary andnon-contributory

w Waiver of recovery

Here’s what the projectowner is thinking:

I’ve required the contractorto carry liability limits of$6,000,000, and I’m anadditional insured onthose policies. Thosepolicies are primary andnon-contributory.Therefore, if a loss occursat that project and I’mbrought into the claim, I’ll share up to $6,000,000with the contractor beforeI have to turn to any of my own policies. There’svery little chance mypolicies will ever have topay a penny.

In other words, the projectowner expects “vertical”coverage from the

VERTICAL OR HORIZONTAL?

contractor’s policies. First, thecontractor’s underlying $1,000,000.Then, the excess $5,000,000.

However, the project owner may be infor a big surprise. The InsuringAgreement of the Umbrella (Excess)Liability policy reads, in part, asfollows:

We will pay on behalf of the insuredthose sums in excess of “scheduledunderlying insurance,” “unscheduledunderlying insurance” or the“retained limit….”

The Umbrella (Excess) policy thendefines unscheduled underlyinginsurance:

“Unscheduled underlying insurance”means insurance policies available toan insured, whether:

(1) Primary;

(2) Excess;

(3) Excess-contingent; or

(4) Otherwise;

except the policies listed in theSchedule of Underlying Insurance.“Unscheduled underlying insurance”does not include insurancespecifically to be excess of this policy.

The contractor’s Umbrella (Excess)policy is not going to pay on behalf ofthe project owner until the limits of theproject owner’s underlying policy andany excess liability policies have beenexhausted. The contractor’s Umbrella(Excess) policy provides “horizontal”coverage rather than “vertical”coverage for the project owner.

The project owner is going to be upset.No, that’s not right. The project owneris going to be angry! Maybe angry

enough to hire an attorney and sue thecontractor for not living up to the termsof the contract. After all, the projectowner expected coverage up to$6,000,000 under the contractor’spolicies.

What’s next? Could the insurance agentbe in trouble? I’m not smart enough toanswer that question. But I do knowthis — you better pay attention to theinsuring agreements of your Umbrella(Excess) Liability policies. Do theyrespond “vertically” or “horizontally”?

Y’all take care!

[ 11 ]

JGSI N S U R A N C E

A subsidiary of

We See a Bright FutureMore options await you with PreferredProperty Program’s umbrella policiesOur umbrella programs are designed to offer the most comprehensive coverageso the future is never in doubt. Our umbrella liability policies are writtenby XL Insurance, with Chubb Insurance Group for the excess layer, featuringflexible, broad coverage that includes:

• $5 to $25 Million in umbrella coverage with up to $50 Million in total limits.

• Hi-Rise apartments up to 35 stories eligible, with higher eligible by referral.

• Excess of D&O, General Liability, Auto, Employers Liability, EmployeeBenefits and more.

• Developer-sponsored boards eligible.

Contact us for a quote:

888.548.2465info@umbrellaprogram.comwww.umbrellaprogram.com

Service is our specialty; protecting you is our mission ®

960 Holmdel Road, Holmdel, NJ 07733

7

XL Insurance is the global brand used by XL Group plc's insurance companies.Preferred Property Program’s XL policies are underwritten by Greenwich Insurance Company.

®

MARKETING

How to become a lean,mean marketing machineIA&B offers members an assist

It’s time to reinvent youragency into a lean, meanmarketing machine. And IA&B is there to coachyou, spot you and — wherenecessary — give you anassist. New members-onlyresources will help with the heavy lifting ofstrengthening yourbrand and bulking up your marketingefforts.

Primary Agent | November 2012

Recognizing the importance and challenges ofmarketing an independent agency, the IA&B Boardof Directors prioritized the creation of resources tosupport member agencies’ efforts. From that

guidance and member input, IA&B developed a series ofproducts and services — everything from turnkey consumereducation pieces and partnered communication vendors, toorganization-wide community relations efforts and a libraryof insurance-marketing expertise.

The following pages detail the initial offerings. The rollout of these, all of which are housed online, will begin on Dec.12 (12-12-12, for easy memory). From there, IA&B willevaluate the use of these tools and members’ evolving needsand then launch additional marketing and branding supportin the near future. Bottom line: The association is in it for thelong haul, committed to bolstering member agencies’efficacy in an ever-competitive industry.

Consumer educationIndependent agents’ expertise is one their differentiationpoints. Passing that knowledge on to consumers allows anagency to showcase its value.

IA&B’s new toolkit of marketing resources includesconsumer content — written by industry professionals, vetted by legal experts and reviewed by fellow agents.Member agencies can use it for website, social media,newsletter or brochure content. It’s theirs for the taking and using however they see fit.

First up are write-ups on actual cost value, replacement costand insurance to value; collision damage waivers and rentalcars; cyber liability; flood and water/sewer backup; andumbrella policies. From there, IA&B will add to the librarymonthly with articles on ordinance and law coverage;uninsured motorists, underinsured motorists and medicalcoverage; independent contractors vs. employees; and more.

Consumer communicationConsistent, customized client communication differentiatesan independent agency from its competitors. IA&B partnered with vendors to streamline and discount theprocess for members.

NewslettersSending a newsletter to clients is a win-win. It serves as atouch point while allowing the agency to educate clients oncoverage issues, risk mitigation and new markets.

IA&B partnered with Strategic Alliances to offer discountedprint and electronic newsletter tools — including

R

[ 13 ]

Save the date:12-12-12When the calendar turns to the twelfth day ofthe twelfth month of 2012, your go-tomarketing and branding resource center willgo live. The much anticipated initiative willamass tips, tools and services in an onlineportal. The goal? To position you for successin the evolving insurance marketplace.

� Consumer education

� Consumer communication

� Branding

� Digital marketing

� Charitable giving

� Marketing library

Help is on the way. Watch yourinbox for access.

customizable templates, a libraryof professionally written articles(to supplement IA&B’s consumereducation offerings), simplemailing list management and, foremail newsletters, real-timereporting. Founded by a formerindependent agent, the vendoremphasizes ease of use,efficiency and affordability.

Email blastsDistributing a professionallydesigned and delivered email to agroup of clients is a marketingdream come true. IA&B’spartnered vendor simplifies theprocess, allowing members topiggyback on breaking news andmake special announcements, forexample, at the click of a sendbutton. The goal? Showcasingindependent agents’ relevance,knowledge and offerings in atimely, cost-effective way.

Community goodwillOne of the things that makesdoing business with anindependent agency so appealingis that the agency is a part of thecommunity. Agency employeeslive and play, worship and raisetheir families in the same placesthat their clients do. And whenclients see their insurance agentdoing his or her part to better thecommunity, it further builds uponthat trust — and loyalty.

Member agencies are invited toparticipate in an association-wide fundraising campaign tobenefit their regional Make-A-Wish Foundation® chapter. Inaddition to fostering goodwillwithin their hometowns,

members can capitalize on theircollective fundraising to gainpositive publicity for theindependent agency system as a whole.

IA&B’s new marketing andbranding initiative will supportmember agencies’ fundraisingefforts, and its online presencewill serve as the hub forfundraising ideas and marketingmaterials, for opportunities tojoin association-wide efforts, and for ways to capitalize onfundraising to build communitygoodwill.

Education libraryNo member resource offeringswould be complete withoutbackground knowledge on why and how to use them.Insurance agents are experts ininsurance, risk management andbusiness, not necessarilymarketing and branding. And amisunderstanding of theseprinciples can lead a well-intentioned agency principal down the wrong, andcostly, path.

IA&B will create a library ofindustry-specific guidance, aimedto educate members and supporttheir marketing and brandingefforts. The dynamic collectionwill grow and correspond withIA&B’s resources — andmembers’ needs.

Next stepsThis is only the beginning. IA&B is committed to members’success in branding their agency and marketing theirservices. It’s a commitment to ensure the future of theindependent agency system.

MARKETING

[ 14 ]

____________________________

The association is in it

for the long haul, committed

to bolstering member

agencies’ efficacy in an

ever-competitive industry.

____________________________

“The potential forgrowth for agents andtheir companies lies in personal lines —where the market ishuge ($230 billion in premium) butthe independent agentsector only enjoysapproximately 35percent market share.”

— Personal LinesGrowth Alliance

Date Topic Location

1 CPIA Module 3 Mechanicsburg, Pa.

CISR Personal Residential Course Allentown, Pa.

Best Practices of E&O Seminar Pittsburgh, Pa.

6-8 Life & Health Licensing Study Course Mechanicsburg, Pa.

13 Employment Relationships—Are Both Sides Covered? Philadelphia, Pa.

William T. Hold Seminar Allentown, Pa.

13-15 Property & Casualty Licensing Study Course Philadelphia, Pa.

14 William T. Hold Seminar Dover, Del.

14-15 James K. Ruble Graduate Seminar Lancaster, Pa.

16 Mistakes That Lead to E&O Claims Seminar Newark, Del.

20 CISR Personal Residential Course Baltimore, Md.

21 CISR Personal Residential Course Wilkes-Barre, Pa.

27 Dynamics of Service Philadelphia, Pa.

28 CISR Personal Residential Course Mechanicsburg, Pa.

Mistakes That Lead to E&O Claims Seminar Baltimore, Md.

29 CISR Agency Operations Course Baltimore, Md.

Mistakes That Lead to E&O Claims Seminar Philadelphia, Pa.

December

3-6 CIC Personal Lines Institute Philadelphia, Pa.

4 CISR Agency Operations Course Mechanicsburg, Pa.

4-6 P&C Licensing Study Course Allentown, Pa.

5 CISR Agency Operations Course Philadelphia, Pa.

11-13 P&C Licensing Study Course Mechanicsburg, Pa.

Glance at EventsNOVEMBER & DECEMBER CALENDAR

[ 15 ]

IA&B’s On-Demand Programs: Ethical Behavior and E&OFlood – Understanding the National Flood Insurance Program (NFIP) Compliance Pitfalls & Ethical Responsibilities (PA or MD specific)New! — Certificates of InsuranceNew! — Insuring e-CommerceNew! — Pollution Exposures and Coverages

For moreinformation onthese programs,see page 20.

TECHNOLOGY

Why your company needsan adaptive website

We are currently in the midstof one of the biggest softwareand hardware revolutionswe’ve ever witnessed. Withprocessing power, storageand bandwidth increasingexponentially, smart phonesand smart tablets are quicklybecoming our main personaland business computer.Customers, employeesand other stakeholders are bringing and usingtheir smart phones andtablets everywhere, andthat definitely impactshow they see andinteract with yourcompany online.

Primary Agent | November 2012

For organizations of all sizes, this means it’s time totake a good look at your website. Sure, your sitemight look great on a desktop or laptop computerscreen. But how does it look on all of the different

sizes of screens found on today’s wide variety of tablets andsmart phones? Chances are the answer is “not good.” That’swhy at this point in time all companies need to make theirsite adaptive and design their websites for mobile first.

Today’s mobile websitesTo address the mobile revolution, many companies havecreated a second mobile version of their website so theircontent can be viewed on smart phones without a problem.But there are big problems! First, you have to design,maintain and pay for two separate websites. When youupdate one, the other is in most cases not automaticallyupdated. Additionally, the mobile site is designed for aspecific mobile screen size. If your user does not have thatphone model, they will still have to scroll around to see yourmobile site version.

The new adaptive website imperativeTo get a better idea of why a traditionally designed websitedoesn’t work for mobile devices, try this little experiment.Using a laptop or desktop, go to your company’s website.Depending on the size of your screen, the website will eitherfill the entire screen or there will be a border on the right andleft side.

Using your mouse arrow, grab the bottom right corner of thebrowser window for your website. Drag it from the right tothe left diagonally up and start making the window smaller.If your website is not adaptive, you’ll see that all you’re reallydoing is covering things up. And as soon as the window getssmaller than the pre-defined width of the site, you’ll seescrollbars appear on the right and bottom. Now the only wayto move around on the page is to scroll. Keep making thewindow smaller until it’s about the size of a smart phone

F

[ 17 ]

More tech-know on SEOPlanning a website overhaul? There’s more thansmart design and usability to consider. Searchengine optimization (SEO) remains critical toany website construction. Without it, a website islost in the online shuffle, never to be found bypotential customers.

IA&B’s online technology resources includeseveral dedicated to SEO. Members can read upon the topic by visiting one of the URLs below,choosing “Other Resources” and then the“Website & Internet” quick link.

Delaware: www.iabgroup.com/de/technology

Maryland: www.iabgroup.com/md/technology

Pennsylvania:www.iabgroup.com/pa/technology

________________________________________________

Companies need to make their site adaptive

and design their websites for mobile first.

________________________________________________

screen. How does it look? You’llsee that it doesn’t look good atall. As a matter of fact it’sprobably not useful either.

If your website was adaptive, asyou move that window and makeit smaller, the text wouldautomatically reformat and thepictures would move accordinglyto fit the smaller screen size. Themenu would also adapt andchange so your website andcontent would work on anydevice. That last point isimportant, because, as Imentioned earlier, not all smartphones have the same sizescreen. An Android screen isdifferent from an iPhone screen,which is different from aBlackberry screen. Even tabletshave different size screens. So ifyou don’t have an adaptive site,the person viewing your site ontheir tablet or smart phone willend up having to scroll somehow,somewhere, because of the widevariety of screen sizes. To see areal example of how an adaptivesite would look, go to my websiteat www.burrus.com. Other siteexamples include:http://calebogden.com,http://owltastic.com andhttp://thinkvitamin.com.

Visit any of those site and givethem a try View them on yorulaptop first and shrink thebrowser window as describedearlier and notice how the sitechanges to fit any size screen.Now try them on your tablet orsmart phone. Regardless ofscreen size, they will all lookgreat. The good news is that any

website developer can do thisonce they understand theconcept! So the message is clear:The time to create an adaptivesite is now! That means you havetwo choices. You can go back towhomever designed your currentsite and have them take yourcurrent look and make itadaptive, or you can start overand design a new website.

Design for mobile firstIf you decide it’s time to design anew website, an important key tosuccess is to design it for mobilefirst.

When you design for mobile first,you have to re-evaluate all yourcontent. Business owners as wellas website designers are still inlaptop and desktop design mode.And because they’re thinking interms of large screens that needto be filled, they put a lot ofcontent online – often way toomuch. As a result, the vastmajority of websites are bloatedwith way to much information.It’s time to throw all that non-essential stuff out. The best way

to help you make those toughdecisions of which content to cutis to think in terms of mobilefirst. After all, if your main designis optimized for a small screenthat adapts by getting biggerwhen viewed on a laptop screen(as opposed to shrinking when itgets viewed on a smaller screen),it will be easier to take out all thecontent and graphics that are notreally necessary. If you think thatall the content on your currentsite is necessary, you’re onlyfooling yourself. Most companieshave websites that are way toobusy. And while their websitemay look nice and be “cool” or“trendy,” it’s not getting to theessence of what people need tomake decisions or to buy yourproducts. This gives you astrategic reason to get rid of theclutter.

Designing for mobile first forcesyou to make the hard decisionsof what should stay and whatshould go. It’s similar to whensomeone moves from a largehouse to a small condo. Whenyou have the big house, you fill itwith a lot of furniture you don’tuse, a lot of artwork you don’tlook at and a lot of “must-have”gadgets you don’t need. Onceyou downsize your space, yourealize you really don’t need allthat stuff. Even though letting gois painful at first, it gradually getseasier once you realize how freeand uncluttered you feel. Thesame concept applies to yourwebsite. You have a big screen tofill, so you fill it. Now put yourwebsite on a small screen anddecide what your prospects and

TECHNOLOGY

[ 18 ]

____________________________

Put your website on a

small screen and decide

what your prospects and

customers really need to

make a buying decision.

____________________________

customers really need to make abuying decision.

The future of website designMake no mistake: It’s a hardtrend (a certainty) that tabletsand smart phones are rapidlybecoming people’s maincomputer. Therefore, you wantyour website to be seen well onthose devices and to be useful. If you don’t wan the addedexpense and hassle of twowebsites, then step one is tomake your current site adaptive.When it’s time to redo the siteentirely, design it for mobile first.These two steps will put you lightyears ahead of your competitionand boos your online presenceand sales immensely.

____________________________Daniel Burrus is considered one ofthe world’s leading technologyforecasters and strategists. He is thefounder and CEO of BurrusResearch, a research and consultingfirm that monitors globaladvancements in technology-driventrends to help clients betterunderstand how technological,social and business forces areconverging to create enormous,untapped opportunities. The New York Times has referred to himas one of America’s top threebusiness “gurus” in the highestdemand as a speaker.

For more information on theservices and products offered byDaniel Burrus, please visitwww.burrus.com. For Burrus’ mobile Web app, text DANBURRUS to 99000.

Coastal Homeowners Insurance

Coastal AgentsAlliance, LLC

Sharon KarlssonPhone: 201-407-7151

skarlsson@coastalagentsalliance.com

Primary and Secondary Homes are eligibleAM Best “A” Rated

15% commissionFor an appointment, contact:

800-334-5579www.gotapco.com

Tree Trimmers coverage in a five-minute phone call.

CGL Coverage Available:

* Available coverages and markets may varydependent upon risk characteristics.

Call. Quote. Bind.

“A”- -a i e carrier

i ive rici g

Fa olic aro

- ci g available

ic c a li g

0 cre i o er o aliz A CO Z c Vi a ebi car wi eac olic

V a a erCa a a e acce e

The TAPCO Service Pledge

1,000 Strong More than 1,000 classes of P&C businesswritten under binding authority.

[ 19 ]

[ 20 ]

In this recently launched addition of on-demand CE courses, Jerry Milton, CIC,delivers his trademark wit and wisdomdirectly to online students logging infrom anywhere, at anytime. The newprograms, detailed below, cover arange of commercial exposures andgive busy agents the ability to get up tospeed at their own pace — for up to 30days following registration.

Certificates of InsuranceA certificate of insurance is intended toprovide a “snapshot” of the insured’spolicies. However, many certificateholders think the certificate guaranteescoverage, guarantees limits and makesthem an additional insured. As a result,certificates of insurance have become amajor source of litigation betweencertificate holders, insureds, insurersand insurance agents. This coursereviews the most frequently disputedand litigated certificate of insuranceissues and offers risk managementsuggestions that should reduce some ofthese conflicts.

Insuring e-CommerceThe rapid growth and use of theInternet for e-commerce activities hascreated new exposures that are notadequately covered by our traditionalproperty and liability policies. Manyinsurers have developed property andliability policies to address e-commerceexposures such as acts of a hacker, theftof money or intellectual property, lossof income, extortion and third-partyliability. This course reviews these e-commerce exposures and the policiesthat are designed to provide coverage.

Pollution Exposures andCoveragesFederal and state governments haveinstituted numerous environmentalliability regulations, making manybusinesses subject to increasedenvironmental liability and financial loss exposures. The unendorsedCommercial General Liability (CGL)policy provides very little coverage forthe discharge or release of a pollutant,and many insureds have absolutely nopollution coverage under their CGLswhich have been endorsed with theTotal Pollution Exclusion endorsement.This course discusses commonenvironmental exposures and theprovisions of various Pollution Liability policies.

Certificates, cyberliabilityand pollution … oh my!New trio of on-demand courses focuses on commercial exposures

Other IA&B on-demand programs

w Understanding theNational FloodInsurance Program

w Ethical Behavior and E&O*

w Compliance Pitfallsand EthicalResponsibilities* (Pa.- and Md.-specificeditions)

*Approved for Utica loss-control credit.

Learn more and register atwww.iabgroup.com/

on-demand

FEATURED PARTNERPenn National Insurance

COMPANY STRENGTHSw Commitment to the independent

agency system with strongagency relationships

w Competitive products and pricingw Enhanced ease-of-doing-business

through intuitive, powerfulautomation tools

w Superb agency forcew Underwriting consistency in the

marketplacew Financial strengthw Outstanding claims service with

high customer satisfactionw Knowledgeable and experienced

employees

PRODUCT LINESBUSINESSw Businessowners’ Program (BOP)w Propertyw General Liabilityw Inland Marinew Business Automobilew Workers’ Compensation w Umbrellaw Agents’ Umbrella w Surety & Fidelity

PERSONALw Personal Automobilew Homeownersw Boatw Dwelling Firew Rentersw Umbrella Liability

OPERATING TERRITORYWe have more than 800 agenciesacross Pennsylvania, Maryland,Delaware*, New Jersey, Virginia,North Carolina, South Carolina*,Tennessee and Alabama*.*commercial lines only

OFFICERSKenneth R. ShuttsPresident and CEO

Christine Sears, CPCUExecutive Vice President and COO

Gregory R. StineSr. Vice President andCFO/Treasurer

Karen C. YarrishSr. Vice President, Secretaryand General Counsel

Robert B. BrandonSr. Vice President, Underwriting Operations

COMPANY LOCATIONHarrisburg, Pa. (home office)

A.M. BEST FINANCIALSTRENGTH RATINGA- (Excellent)

SUBSIDIARYInservco: a leading regional third-party claims administrationfirm providing integrated riskmanagement services to more than 500 self-insured customers in Pennsylvania, New Jersey, West Virginia and Maryland.

AGENCYAPPOINTMENTSAVAILABLEContact marketing@pnat.com or visit online atwww.PennNationalInsurance.com

Platinum ProfileInsurance Agents & Brokers proudly recognizes

Penn National Insurance as one of its Platinum Partners.IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

“We strive to maintain the same values thatour founders adhered to in 1919: hard work,honesty, integrity, dependability, andconsistency in our approach to the insurancemarket. We sell only through independentagents, and we continue to seek appointmentswith agents looking for a strong, regionalcarrier. Our executive team spends extensivetime in the field, building relationships withour agents, listening to their needs, andcreating corporate strategies to help themgrow their agency revenues with us. Won’tyou join us and grow with us?”

— Kenneth R. ShuttsPresident & CEO

“We offer our agents stability, consistency,responsiveness, and long-lasting personalrelationships — rare traits in today’s property-casualty insurance environment. Our regionalstructure allows us to respond more effectivelyto local market conditions and to offer ouragents access directly to decision-makers. Andour larger size among regional insurers givesus the financial resources and technologyexpertise to compete with the national carrierswith our easy-to-use, efficient automatedservices. Our automation and competitivepricing in personal insurance has enabledour agents to place more business with usover the last few years, and our broadportfolio of business insurance products andconsistency in the marketplace offers agentscompelling reasons to trust us with theircommercial business.”

— Christine SearsExecutive VP & COO

Platinum Profile

It’s the rare individual who ismotivated by a genuine desire tohelp others. And it’s the rare

company that puts that principle into practice.

At Erie Insurance, we’ve been helpingpeople make things right since 1925,working side-by-side with the bestindependent agents in the business.Our agents and employees areenergized by a clear sense of purpose,performing to the best of their ability,because they know the work they dobenefits millions of customers’families and businesses. It’s part ofbeing Above all in SERVICESM

and it’swhy we’re so committed to theindependent Erie agents who live andwork in the communities they serve.

On the strength of these relationships,Erie Insurance has risen to becomeone of the nation’s most respectedproperty/casualty and life insurers.Today, we’re a Fortune 500 company

operating in 11 states and the Districtof Columbia. Erie has more than 4million property/casualty policies inforce, more than $13 billion in assetsand more than $39 billion in lifeinsurance in force. We’re the 19thlargest property/casualty insurer inthe United States, based on total linesnet premiums written, and the 13thlargest auto insurer, based on directpremiums written. A.M. Best rates ErieInsurance A+ Superior.

We are both proud and humbled tohave been consistently recognized forexcellence in customer service and tohave one of the highest customerretention rates in the industry — morethan 90 percent. We’re also one of“Ward’s 50 Top Performers” — theWard Group’s annual ranking of morethan 3,000 insurance companiesbased upon financial performance.

Erie Insurance’s founding principlewas to provide its policyholders with

as near perfect protection, as nearperfect service as is humanly possible, and doing so at the lowestpossible cost. That same principleguides us today.

We still adhere to disciplinedunderwriting, fair pricing and aprudent investment philosophy.

We still practice the Golden Rule — treating others as we want to be treated.

We still thrive on the Erie family spirit, employees and agents workingtogether as a team for the good of our customers and thecommunities we serve.

At our core, we still believe the truth in our founder H.O. Hirt’s words: “Success in business is not a matter of tricks or gimmicks…it is just a matter of simple common sense,mixed with just plain decency.”

Insurance Agents and Brokers proudly recognizes Erie Insurance as

one of its Platinum Partners. IA&B PlatinumPartners dedicate the

highest level of sponsorship to our organization.

FEATURED PARTNERErie Insurance

CHIEF EXECUTIVE OFFICERTerry Cavanaugh

President and CEO

CORPORATE HEADQUARTERSErie, Pa.

A.M. BEST RATINGA+ Superior

WEBSITEwww.erieinsurance.com

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at 800-998-9644,

717-795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agencysystem and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupDonegal Insurance GroupErie Insurance GroupHarleysville InsuranceHM Insurance GroupInsurance Agents & BrokersService Group Inc

MMG Insurance CompanyMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupOhio CasualtyPenn National InsuranceSelective Swiss ReThe Main Street America GroupUtica National Insurance Group

GOLD LEVELProgressive Westfield Insurance

SILVER LEVELAccess Insurance Company Allied InsuranceAmerican Mining Insurance CoCumberland Insurance GroupFrederick Mutual Insurance CoJuniata Mutual Insurance CoPSBA Insurance TrustThe Philadelphia Contributionship

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance House

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent November 2012

Primary Agent | November 2012 TechnologyU P D A T E

I recently made a majorconversion in my agency toApplied’s Epic®

management system. Aspart of that hands-onprocess, I had a greatvantage point to see thebenefits of Real Time1 andto pick up some tips to helpagencies in their Real Timeimplementations. I alsodeveloped somerecommendations to assistcarriers and vendors in

providing better support totheir agencies goingthrough this process.

I believe the same lessonsapply regarding Real Timeimplementation, no matterwhat system you arecurrently on or installing, aslong as the vendor has astrong commitment toincorporating the latest RealTime functionality.

Preparing for RealTimeI implemented Real Time inmy previous system, so Iknew there were benefits tousing Real Time. For severalmonths, we were withoutReal Time because wefocused on other aspects ofour system conversion, andfrankly, we missed it. I keptin mind the end goal,however, which was to

ED HIGGINS

Ed Higgins is an agency principal

of Thousand Islands Agency

located in Clayton, N.Y. Ed is a

former chairman of Agents Council

for Technology and has held

numerous positions in state and

national agent associations and

industry organizations over the

years. He can be reached at

ed@tiagency.com.

Ed prepared this article for ACT. It

reflects the views of the author and

should not be construed as an

official statement by ACT.

[ 24 ]

1Real Time is the ability to click on a button from a client file in your agency management system or comparative rater for immediate accessto carrier information on that client. The transaction may be a quote, billing inquiry, claim inquiry/loss runs, policy view, endorsements or arequest for information. This approach provides a single workflow for servicing or quoting with multiple carriers.

AN AGENCY CASE STUDY IN IMPLEMENTINGREAL TIME

implement a system incorporating thelatest technology in order to give ouragency new and enhanced featuresthat would allow us to become evenmore efficient. I was hoping that evenmy Real Time transactions would befaster with the new system.

We are a small agency, and it took usseveral months to do the systemconversion, learn all of thefunctionality and train our employees.In the final analysis, we received nocurrent client policy informationconversion, so we used an initialdownload from all of our downloadcarriers and manually re-entered non-downloaded policy data, puttingour multiple monitor environment togood use! Going through this processonce again underscored for me thecritical nature of the downloads thatour carriers provide to us. Sending us complete, clean downloads for all lines of business needs to be apriority for every carrier if agenciesare to achieve the peak efficiency they need in this highly competitiveenvironment.

Implementing Real TimeAfter a several month conversionprocess, we were back in control withour new system, ready to unleash the system’s horsepower by installingReal Time.

My first step was to go to thegetrealtime.org portal which theindustry has put together to assistagencies and carriers with theimplementation of Real Time anddownload. Here you will find the RealTime Implementation Guide whichwill provide you with definitions, thetypes of transactions and helpfulimplementation tips. The site alsoprovides links to both vendor andcarrier Real Time pages.

I recommend that you start with yourvendor’s Real Time page and locate itschart that identifies the specific RealTime functions that are available foreach company for both personal and commercial lines. If you havetrouble locating this chart, visithttp://www.getrealtime.org/active/21DayNewToRT-Plan.asp#vendors for the chartsprovided by several of the vendors.

Vendor tip: These charts are a greatresource, but they would be evenmore helpful if they provided an initialcontact person for each carrier, wherethe agent could go for Real Timeimplementation help.

I then turned to the carriers’ RealTime pages for each of my companieson the getrealtime.org site. We foundfour companies that had Real Timecapability listed on our vendor’s chartwhich had no presence in the carriersection of the getrealtime.org site. Ofthe companies that were listed, amajority of them did not have anyinformation providing the contact andphone number for agents to go to forimplementation assistance.

Carrier tip: Carriers should create apresence on getrealtime.org’s carrierpage and make it easy for agents tofind initial contact information forimplementation assistance on theirfirst landing page. Marketing reps forthe carrier should also be familiarwith the carrier’s Real Timefunctionality and the person for theagent to contact if he or she needsimplementation help.

Thanking the carriersThe support I received from AppliedSystems and each of my carriers wasvery helpful, once I got to the rightpeople. I was very focused onthanking each of the companies for

their commitment of time andresources to develop Real Timecapability and assured them wewould be frequent and consistentusers. I also encouraged them tocontinue to enhance and extend theirReal Time capabilities. I let them knowthat Real Time is such a time saver forour CSRs — allowing us to providefaster and better service to our clients— that we will give carriers with RealTime capability preference when theirpricing is close to the competition.

The carriers were very glad to hearthese comments and gave me thesense that most agents do not takethe time to express their appreciationfor the carrier’s investing in thisimproved agency functionality.Hearing from the agents is the bestway to assure continued investmentsby the carriers in Real Time and otherimproved agent-carrier connectivity.

Agent tip: My take-away from theseconversations is that we, as agents,need to express our appreciationmore aggressively and consistently to those companies which havecommitted to Real Time and arecontinuing to commit resources to further expand and enhance the functionality.

Creating the Real Time habitBy the end of the fourth business day,we had installed Real Time for eight ofour 10 companies. We have four staffmembers who have been with us lessthan a year and were never exposedto the limited Real Time functionalityin our old management system. Theother five CSRs had had a five-monthlapse from Real Time while we wereundergoing our system conversionand had developed new“workarounds” using the carrierwebsite to complete their daily work.

Primary Agent | November 2012

[ 25 ]

[ 26 ]

We needed to develop a helpful toolto ensure rapid and consistentadoption of Real Time by both ourexperienced and new staff members. I recalled the industry’s 2011 RealTime 21 Day Challenge and realized

we needed to establish Real Time as a habit with our staff. We did aone-on-one demonstration with eachCSR covering the functionality forseveral different companies. Everyonewas impressed with the improved

speed of the Real Time process which was running about 16 secondsper transaction.

To ensure that each of our staff woulddevelop the Real Time habit, wecreated a one-page document thatlists all of our carriers and the RealTime transactions offered by each,with the notation of “(+C)” if thecompany provides the function inboth personal lines and commerciallines. I provided each CSR with alaminated copy for his or herworkstation. Finally, we informedthem we would be generating weekly reports to monitor their use ofReal Time to be sure there wasconsistent usage.

Agency managementinvolvementIt is especially important for agencymanagement to be involved at theonset to track adoption by staff and toidentify error messages. These errormessages need to be quicklyaddressed so that staff is notdiscouraged from using Real Time.We had two examples where my earlyintervention was important. The firstinvolved a CSR alleging a functiondidn’t work, only to realize later thatthe company being used did not offerthe requested Real Time function.

The second example was anendorsement request that failed toexecute properly. Applied Systemssaid the file name was too longbecause it exceeded a named insuredcharacter limit of 40 characters. Thecarrier downloaded the policy filesuccessfully, so this did not seem toinitially make sense. Furtherinvestigation identified that the carrierallowed up to 90 characters tocomplete a successful download

TECHNOLOGY UPDATE

That’s just one of the reasons we’ve been ranked among the top 10 carriers nationally in ease of business by Deep Customer Connections.

www.PennNationalInsurance.com

Business Surety Auto Home

wow!

We don’t just create fast and simple

automation solutions for our agents.

With a “WOW” quoting system

and superior service,

we set out to delight them.

[ 27 ]

match while Applied Systems onlypermits a maximum of 40 characters.This was not a big deal, and weidentified this client file as anexception not eligible for Real Timeendorsement processing.

Agency tip: Immediate managementintervention to resolve apparentproblems establishes early confidenceby the staff that Real Time is a realbenefit to them that works.

Carrier support withimplementation Of the 10 carriers that now offer usReal Time, most are national carriers,but a couple are smaller regionals aswell. I asked one of these smallcarriers, New York Central MutualInsurance, why the company had

taken a leadership role in providingReal Time compared to itscompetitors of a similar size. Theresponse was that the company reallybelieves in the importance of RealTime to the future success of itsagency plant. Moreover, the companymonitors Real Time usage andreaches out to agents who are notusing particular functionality andoffers to do on-site training for theirstaff for free. They also will help theiragents install Real Time functionality,not just for their company but for allof the companies the agencyrepresents. This company knows thatagencies are most likely to use RealTime when it is available from most oftheir carriers and they can implementa more consistent workflow.

There are several additional carriersout there — large and small — whichare strong believers in Real Time aswell, offering hands-onimplementation assistance to theiragents. Agencies should takeadvantage of this assistance and thankthe management of these companiesfor their strong support of thissuperior workflow for agencies.

Real Time benefitsReal Time through my newmanagement system has providedour agency with a significantefficiency boost. Real Timetransactions are averaging just 16 seconds, with the logins, navigation and data flows back andforth all taking place automatically.

SPEAK UP! YOUR JOB

DEPENDS ON IT!

SUPPORT AGENTPAC— your voice IN THE

STATE CAPITOL.

AgentPAC is your state political action committee and the collectivevoice of independent agents in the state capitol. Issues that affectyour job are at stake, and backing legislators aligned with IA&B’sgovernment affairs agenda depends on your support. Watch forGrassroots Action Alerts prompting you to contact your legislators onspecific issues, and consider donating to AgentPAC at a level thatspeaks (loudly) to policymakers that support our cause.

Your voice in the state capitol.

LEARN MORE AND CONTRIBUTE

ONLINE AT IABGROUP.COM/AGENTPAC.

[ 28 ]

During the week of Aug. 6, 2012, forexample, we had 108 Real Timetransactions agency wide. That’s upfrom 50 the week before and includesthe full range of Real Time inquiries,quotes and endorsements available.We calculate about a three-minutetime savings for each transaction,saving our agency 324 minutes orover five hours in one week!

RecommendationsBased on our experience, I wouldoffer these recommendations:

For agents:

w Adopt every Real Time capabilityyour management system vendor offers.

w Take advantage of theimplementation assistance yourvendor, carriers and user groupcan provide you. There is a lot ofwilling help out there!

w Take advantage of the industry,vendor and carrier resources out there to assist you in yourimplementation. Thegetrealtime.org website is a good place to start to accessthese resources.

w Thank each of your companiesoffering you the functionality fortheir commitment to your future.

w Urge your vendor and yourcarriers to continue to expandand enhance the Real Timefunctions they provide, so that you can have consistent, fast workflows across all of your carriers.

For companies:

w Agents who adopt Real Time arelikely to be the leaders in sellingyour products in the future.Continue to help them buildcompetitive advantage byexpanding your Real Timecapabilities and continuing toenhance your speed and reduceerrors. The Agency Real Time“Best Practices” Workflows andImplementation Strategies Guidefor Carriers & Vendors(http://na.iiaa.org/ACT/downloads/RT_BPWorkflows_Dec72011.pdf) is a great resource forcarriers to use in this regard.

w Be sure to register your Real Timecapabilities and your contactperson for implementationassistance both with the RealTime vendors and on your carrierpage on the industry’sgetrealtime.org site.

w Ask your marketing reps toencourage your agents toimplement Real Time and to be familiar with the Real Timefunctions the company hasavailable. These reps should also know the contact person at the company to provide theagent in need of implementationassistance.

w Provide hands-on or virtualassistance to your agents whowant to implement Real Time.

For vendors:

w Continue to enhance and extendthe Real Time capabilities youoffer through your system toeliminate steps, improve speedand reduce errors. The AgencyReal Time “Best Practices”Workflows and ImplementationStrategies Guide for Carriers &Vendors (http://na.iiaa.org/ACT/downloads/RT_BPWorkflows_Dec72011.pdf) is a great resource forvendors to use in this regard.

w Be sure to register your Real Timecapabilities and contact personfor implementation assistance onyour vendor page on theindustry’s getrealtime.org site.

w Provide your agents with a chart that details the Real Timefunctions provided by eachcarrier, along with the carriercontact person forimplementation assistance. This chart should be inspreadsheet form, so that theagency can easily customize it to just their companies.

Agencies, carriers and vendors all winby implementing Real Timefunctionality. Real Time enablesagencies to provide clients with moreresponsive service. It frees upagencies to produce more businessfor carriers. It positions vendors toprovide their agency clients with state of the art connectivity with thecarriers. But most important, Real Time positions our distributionsystem to grow in the future, which will benefit us all.

TECHNOLOGY UPDATE

Coastal Agents Alliance . . . . . . . . . . . . . . . . . . . .9

Donegal Insurance Companies . . . . . . . . . . . . .1

Guard Insurance Group . . . . . . . . . . . . . . . . . . .3

Harford Mutual Insurance Group . . . . . . . . . . . .9

IA&B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

IA&B Partners Program . . . . . . . . . . . . . . . . . . .23

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

Millers Mutual Group . . . . . . . . . . . . . . . . . . . .IFC

Penn National Insurance . . . . . . . . . . . . . . . . .26

PennPRIME . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Preferred Property Program . . . . . . . . . . . . . . .11

TAPCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Ad Index

ClassifiedA D V E R T I S E M E N T S

SOUTHEAST PA PRODUCERS & AGENCIES

Professional agency since 1926 locatedin Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at 215-375-8600, Ext. 119.

If you would like to place a

Classified Advertisement, simply

fax your ad on company letterhead to

717-795-8347, and we will take

care of the rest.

Forget Johnny Depp’s portrayal of Captain Jack Sparrow and his chaotic (and lucky) exploits. Today’s real-life pirates run atight ship.

Piracy is big business: Somali pirates confiscated $160 million in ransoms in 2011. And while the first half of 2012 saw a 32 percent decrease in Somali pirate hijackings, the InternationalMaritime Bureau still reported 69 incidents.

Pirates have found the most success in securing their ransomswhen they present themselves in an orderly, business-savvyfashion. Not uncommon in today’s requests are a cover memo,personalized letterhead and a stamped seal.

On the paying end of pirates’ demands typically are insurancecompanies that offer kidnap and ransom policies. The premiumon $5 million in coverage for a ship’s single transit runs approxi-mately $3-5,000 (as long as armed guards are on board).

Source: “Africa’s pirates have demands for insurers — and a letterhead, too,” Reuters

----------------------------------------------------------------———————-------The Last & Least column is dedicated to the industry’s oddities —from creative claims and kooky coverages, to (tasteful) jokes andstrange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

The business of piracy

Contact your Interstate underwriter today for a quick, competitive quote or email your applications to submissions@interstate-insurance.com. Call today for more details.

We can also o�er your clients several coverage enhancements:

Interstate has been writing commercial transportation insurance for over 40 years and our dump markets are now stronger than ever! If you have clients hauling

bulk dump commodities, our A+ rated carriers can provide auto liability, physical damage, cargo, G.L. and non-trucking liability for many commodity classes:

In Pennsylvania, Delaware, Indiana, Maryland, Michigan, New Jersey, Ohio, Virginia & West Virginia2307 Menoher Blvd. Johnstown, PA 15905814-255-7878 1-800-452-0297 Fax 814-255-6010

Demolition DebrisScrap Metal

Coal (PA, MD & WV only)Sand/Gravel/Stone

Dirty DirtAggregate