MARYLAND
INTHISISSUE:______________
Ins & outs of flood zones
Legislative point, counterpoint
G19118Covers.qxp:April2011Primary 3/16/11 2:21 PM Page 2
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
Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA www.emcins.com
© Copyright Employers Mutual Casualty Company 2011 All rights reserved
G19118_IFC-IBC-OBC.qxp:Layout 1 3/16/11 2:34 PM Page 1
Insurance for RestaurantsFamily Style, Pizza Shops, Take-Out, Fast Food, Donut Shops,
Diners, Cafes, Bagel Stores, Franchises
Brokers Surplus Agency wants to quote your restaurants!
We have a terrific BOP program that’s packed with the coverages you need.New Ventures eligible!Liquor liability coverage available!
Contact us by phone or email today!(215) 443-9900
Brokers Surplus AgencyP.O. Box 2849
Warminster, PA 18974
Dennis Marsaglia, Ext. [email protected]
Evelyn Frisch, Ext. [email protected]
G19118_01-11.qxp:April2011 3/16/11 3:23 PM Page 1
Ins & outs of flood zonesSecuring an accurate flood zone determination has become one of the majorchallenges for insurance producers and their clients. Flood-insurance expertRita Hollada explains why discrepancies occur and how they can beaddressed.
Page 12
Legislative point, counterpointThe NFIP is under increasing attack by Congress. Seen as a money pit, theprogram faces a rocky future. IA&B outlines a few of the recent legislativeattacks and responds with implications.
Page 20
12
20
ContentsP R I M A R Y A G E N T M A G A Z I N E
Copyright 2011. 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 EditorMechanicsburg, 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 # 2011-4) 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 Coverage Corner10 Glance at Events
19 IA&B Partners22 H.R. Headquarters24 Advertisers Index24 Classified Ads24 Last & Least
In every issue
Mission 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
That’s
w
With our “A” Rated Treasury Listed bonds wec Why shopa If we can’t writet We specialize in bonding those “less than p
We’ve beenw N And by the way, we’ll even write thatb Call now and get results not excuses.
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 2
“No bond, no job. No job,no commission.”
We know times in the construction business are tough andthat even the best of clientsare having problems. That’swhy when your client needs abond Commonwealth Surety should bethe first call you make. With our “A” Rated Treasury Listed bonds wecan provide the bond you never thought you could get. Why shoparound, get buried with paperwork and hear excuses? If we can’t writethe bond nobody can! We specialize in bonding those “less than perfect” clients, without cash collateral or Letters of Credit, and we’ll getyou that “YES” that you want to hear in 24 hours or less. We’ve beenwriting bonds for small and midsized companies for over 20 years. No bond is too big or too small. And by the way, we’ll even write thatbond for your perfect clients. Call now and get results not excuses.TOLL FREE: 1-800-886-7760FAX TOLL FREE: 1-800-566-7761
The place for the hard-to-place Bonds
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 3
OfficersDavid Rosenkilde, CIC
Chair of the BoardReisterstown, Md.
Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PVice Chair of the BoardWest Chester, Pa.
Kathleen M. Glattly, ChFC, CLU, CPCUImmediate Past Chair of the BoardFactoryville, Pa.
MembersJoyce M. Bailey, CIC, CRM, CPIW
Newark, Del.
Norman F. Basso, CPCUYork, Pa.
Vincent D. “Chip” Boylan Jr., CPCURockville, Md.
Henry “Butch” Bradley, Jr.Crofton, Md.
Timothy P. BurrisThompsontown, Pa.
John T. “Chip” Colwell Jr., CICCorry, Pa.
N. Lee Dotson, CIC, AAIWilmington, Del.
John L. FrankenfieldTelford, Pa.
G. Greg Gunn, CICLemoyne, Pa.
Diana M. Hornung-Momot, ACSRWilmington, Del.
Jocelyn R. Howard-Sinopoli, CIC, CISRButler, Pa.
Robert S. Klinger, LUTCFGermantown, Md.
Michael F. McGroarty Sr.Pittsburgh, Pa.
Ann Gallen Moll, CICReading, Pa.
Scott C. Rogers, CPIAYork, Pa.
Susan A. Sallada, CIC**Ft. Washington, Pa.
David B. Wasson Sr., CICState College, Pa.
James M. Watkins*Dover, Del.
King W. “Kip” White, LUTCFFallston, Md.
* IIABA National Director** PIA National Director
Board of Directors
April showers bring May … insurance headaches
Hear that? It’s a collective sigh of relief that we’ve made it throughanother winter — this one colder and, in some areas, snowier thanmost. Signs of spring are springing up everywhere.
Of course along with those crocuses and longer days comesnowmelts and rain storms. And that, in turn, means spring floods.
This issue of Primary Agent magazine takes a thorough look at theNational Flood Insurance Program. Flood insurance expert RitaHollada penned a feature on flood zone determination — a slipperyslope for many of us. And IA&B’s government relations teamcontributed a piece on the program’s future.
If you’re looking for additional information, I encourage you toconsider IA&B’s new on-demand flood webinar. It meshes thequality of IA&B education with the convenience of on-demandtechnology. For more, see page 13. Of course IA&B’s website isalso an invaluable resource. Log on to www.iabgroup.com, select“Coverages” and then choose “Flood.”
Until next time,
Dave
[ 4 ]
David B. Rosenkilde Sr., CIC
Chair of the Board’sM E S S A G E
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 4
Member FAQQUESTION: I provide loss control, riskmanagement and safety consulting services.Do I need to use a disclaimer for thoseactivities? If so, where can I find a sample?
ANSWER:Absolutely. It is likely that your E&Ocarrier, whom you hopefully havemade aware of your activities, hasadvised you to do so. In short, thedisclaimer is meant to narrow theextent of your services and protect youfrom your customers claiming that youdid not deliver on your promises.
What should the disclaimerstate?
� The purpose of this type ofdisclaimer is mainly to state thatthe intent of the work performedis not to identify all hazards, but
to assist the customer in theidentification and control ofhazards, as well as to assist withloss control efforts andimplementation and maintenanceof a safety program.
Where should the disclaimerbe placed?
� Contracts, inspection reports andmarketing materials should allinclude disclaimers.
Where to find a sampledisclaimer?
� IA&B has posted a sampledisclaimer specifically for loss
control, risk management andsafety consulting activities. Log onto www.iabgroup.com, go toErrors & Omissions, GeneralResources, “Disclaimer for losscontrol, risk management andsafety consulting services(SAMPLE).”
DO YOU HAVE A QUESTION? E-mail it to us at [email protected] use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to (717) 795-8347. We look forward toanswering your questions!
3 1/18/11 11:29:18 AM
G19118_01-11.qxp:April2011 3/16/11 4:27 PM Page 5
Primary Agent | April 2011
State NewsGetting attention in AnnapolisBeing heard can be achallenge for anyonetrying to get amessage through tostate legislators. Ittakes a collectivelystrong voice with aclear, consistent andsustained message. For independentinsurance agents, AgentPAC of Marylandis your voice in Annapolis.
IA&B’s government affairs staff has a voicein the Capitol, but it is the financialsupport of AgentPAC — your state politicalaction committee — that allows them tospeak loudly on your behalf.
The 2011 AgentPAC fundraising campaignhas been launched with a new look and a new commitment to highlight theIA&B advocacy efforts that may directlyimpact your job. We appreciate the many generous donations alreadyreceived. However, the campaign has along way to go to reach its annual goal of $12,500, and we have added the elite President’s Club for memberscontributing $1,000 or more.
Learn more and contribute:www.iabgroup.com/AgentPAC
New take on referralfees means newmember resourceMembers can pay referral fees tounlicensed persons sending business theirway as long as they do not create arebating situation or an otherwise unfairinsurance practice.
After discussions with the MarylandInsurance Administration (MIA), IA&B has updated its website to reflect the MIA’s current position on referral fees. More flexible than in the past, the MIA will view certain referralarrangements as acceptable.
For a complete review of the steps to take to ensure compliance, reviewIA&B’s resource. Naturally, the ability topay referral fees still does not extend toany insurance written in the context of aresidential real estate loan and settlement.So don’t set up anything with realtors,mortgage brokers or lenders!
Review the resource:www.iabgroup.com/md/referral_fees
[ 6 ]
G19118MD_06-07.qxp:April2011 3/16/11 3:17 PM Page 2
[ 7 ]
In memoriam:Kevin Brady
Kevin P. Brady,previous owner and CEO and then chairman ofKT&D, Inc. inWilmington, Del.,passed away Feb.11. The formerpresident of theProfessionalInsurance Agents Association ofPennsylvania, Maryland andDelaware will be remembered forhis contributions to the association— and to the industry.
Authority to sign insurancedocuments: new resourceDo you discuss insurance issues withcompany personnel who are notofficers? Any changes made to thepolicy could later be challenged based on the individual’s authority torequest them.
To further protect agents’ E&O, IA&Bdesigned a form — to be signed by anofficer of the company (representingthe named insured) — that grantsauthority to an individual to discusscoverages and make policy changes asneeded. In addition, for members whocannot provide the form in person,IA&B now offers a sample letter toaccompany it.
Read more and access resources:www.iabgroup.com/md/cl_granting_authority
IA&B membersrally in Washington, D. C.Nearly a dozen IA&B of Marylandmembers on March 31 congregated inWashington, D.C. as part of the PIAFederal Legislative Summit. On theiragenda? Communicating independentagents’ opinions on health care reform,optional federal charter, flood insuranceand the NARAB Reform Act to a host offreshman legislators and a core groupof incumbents.
Look for additional highlights from the conference in Agent Headlines and future issues of Primary Agentmagazine.
Outstanding CSR award entriesdue May 1Outstanding customer service reflectsoutstanding agencies. As part of ourmission to “drive members todistinction,” IA&B encourages membersto recognize an exceptional frontlineemployee by nominating her/him forthe 2011 Outstanding CSR of the YearAward. The award is sponsored by the National Alliance for InsuranceEducation & Research, and IA&B is now accepting nominations andcandidate entries.
The award is open to anyone,regardless of affiliation or designation,and candidates may nominatethemselves. The only requirement isthat the candidate be an insurance CSRor have primary duties in customerservice. Upon receipt of a nomination,IA&B will mail the candidate thenecessary materials to complete theentry process.
The deadline for submission of theentry materials (including essay) is May 1. Winners will be announced this summer.
Download a nomination form:www.iabgroup.com/awards/out_csr
Amended licenseneeded to sell cropin DelawareProducers with a non-resident propertyor a property/casualty license inDelaware must amend their existinglicense to add the new crop line ofauthority. This ensures their continuedability to sell crop insurance in The First State.
No fee will be charged for the amendedlicense, but the requests were due byMarch 31, 2011, according to theDelaware Department of Insurance.
Read more:http://delawareinsurance.gov/departments/licensing/WebPageCropNotice.pdf
Access form to amend license:http://delawareinsurance.gov/departments/licensing/New2C.pdf
G19118MD_06-07.qxp:April2011 3/16/11 3:17 PM Page 3
CoverageC O R N E R
[ 8 ]
JERRY MILTON, CIC
Jerry M. Milton 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 | April 2011
The standard ISO and mostinsurers’, Homeowners’ and Dwelling forms excludeloss “caused by vandalism or malicious mischief orbreakage of glass and safety glazing materialsmore than 30 consecutivedays immediately before theloss.” The ISO CommercialProperty forms excludevandalism if the building has been vacant for 60consecutive days prior to the loss.
The question before many of our courts today is, “Is arson consideredvandalism?” The answer to this question dependsupon the jurisdiction in which the loss occurred.However, it appears thecourts are moving toward a majority view that lossescaused by arson are a form of vandalism.
In Battishill v. FarmersAlliance Insurance Company,the New Mexico SupremeCourt concluded that arson isa form of vandalism. Thecourt noted that thedefinitions of arson andvandalism specify a certainstate of mind (willful,
intentional, malicious,wanton or reckless) andaddress a certain type ofresult (destruction,defacement or damage) to property.
In Bear River MutualInsurance Company v.Williams, the Utah Court ofAppeals held that the policylanguage excluded lossescaused by vandalism ormalicious mischief regardlessof the means used to inflictthose losses, even if the losswas characterized as arson.The court noted that damageinflicted with spray paint isnot excluded from thedefinition of vandalismbecause it could separatelybe categorized as graffiti.
One of the first decisions toaddress this issue wasAmerican Mutual FireInsurance Company v.Durrence. In this case, whichwas adjudicated in 1989, theGeorgia courts stated:
Although there appears tobe no clearly controllingcase or stature underGeorgia contract law, acommon senseinterpretation of the
insurance contract’s‘Vandalism or MaliciousMischief’ provision, whichcontains the ‘vacancy’exclusion, suggests that itwould apply to a fire set ina vacant house by anunknown arsonist orvandal.
Many other cases from other jurisdictions are similarto the ones stated above. For example:
� The court recognizedconflicting case law onthe issue but agreedthat the ordinary use ofthe word ‘vandalism’would include arson(Brinker v. Guiffrida, Pa.,1985).
� A common senseinterpretation of thevandalism or maliciousmischief provisionwould apply to an arsonfire (United CapitalCorp. v. TravelersIndemnity Co. of Illinois,N.Y., 2002).
� Willfully andintentionally damaging adwelling by setting it onfire is certainly
IS ARSON FIRE OR VANDALISM?
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 8
[ 9 ]
damaging the dwelling byvandalism as well as arson (Estes v. St. Paul Fire & MarineIns. Co., Kan., 1999).
� The ordinary meaning ofvandalism includes arson(Potomac Ins. Company of Illinoisv. NCUA, Ill.).
Although the trend in mostjurisdictions is to rule that arson isvandalism, there are some exceptions.One such case occurred in Maryland.Mutual Fire Insurance Company ofCalvert County denied coverage for afire loss to a dwelling. One of thereasons for their denial was the househad been vacant for several months,with no utility service, and arson wasconsidered a form of vandalism, whichwas specifically excluded because thehouse had been vacant for 30 daysprior to the loss.
The trial court determined that arsonwas not vandalism under the policylanguage. In Mutual Fire InsuranceCompany of Calvert County v. CorwinL. Ackerman, et al., the court notedthat the personal property section ofthe policy listed fire and vandalismseparately, and a reasonable laypersonreading only the coverage on thedwelling could infer that vandalismincluded intentionally set fires. Butlooking at the policy as a whole, the distinction between fire andvandalism with regard to personalproperty could cause a reasonablyprudent layperson to conclude thatthese two perils were separate.
However, the appellate court vacatedthe circuit court’s summary judgmentand remanded this case for furtherproceedings.
I don’t think I’m about to tell yousomething you don’t already know –there are a lot of vacant buildings out there.
Y’all take care!
When it comes toUmbrella or EquipmentBreakdown CoverageWe have fast, competitive quotesfor you, with the service you deserve.• Designed for Condos, Co-ops, Townhouses,
Apartments, HOAs, PUDs, HabitationalAccounts, and Lessor Risk Only Exposures
• Limits from $1 Million to $50 MIllion• Coverage Includes Excess, G.L., D&O, & Auto• Minimum premiums as low as $350
For additional information or quotes call:
888.548.2465And ask for a New Business Underwriter or [email protected]
Visit our website atwww.umbrellaprogram.com
JGSService is our specialty; protecting you is our mission®
®
I N S U R A N C E
A subsidiary of
Mettle you can count on.
“Mutual Benefi t has consistently fi nished among the top three carriers on the IA&B Company Satisfaction Survey since 2004. Agents recognize us as a carrier that reaches out for agent input on technology goals and provides them with real time opportuni-ties.”
- Jeff SmeltzerMBG Systems Architect
Start with MBG, and you’ll fi nish with a winner.
You don’t just wear it; you earn it.
MUTUAL BENEFIT GROUPHuntingdon, Pennsylvania
www.mutualbenefitgroup.com
istentlyhreempanye 2004. aory
erct
ll
wear it;
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 9
Date Topic Location
5 CISR-Personal Auto Course Salisbury, Md.
5-7 P&C Licensing Study Course Philadelphia, Pa.
6-9 CIC-Life & Health Institute Lehigh Valley, Pa.
7 CISR-Agency Operations Course Baltimore, Md.
12 CISR-Commercial Property Course Erie, Pa.
CPIA-Module 1 Mechanicsburg, Pa.
13 William T. Hold Seminar Pittsburgh, Pa.
CPIA-Module 2 Mechanicsburg, Pa.
14 CPIA-Module 3 Mechanicsburg, Pa.
18-20 James K. Ruble Graduate Seminar Pittsburgh, Pa.
19 William T. Hold Seminar Mechanicsburg, Pa.
20 CISR-Commercial Property Course Wilkes-Barre, Pa.
Dynamics of Service Columbia, Md.
21 CISR-Commercial Property Course Reading, Pa.
10 Ways to Get Sued (E&O) Seminar Pittsburgh, Pa.
26 CISR-Commercial Property Course York, Pa.
26-28 P&C Licensing Study Course Mechanicsburg, Pa.
27 CISR-Commercial Property Course Frederick, Md.
Navigating Contractual Liability and Certificates of Insurance Allentown, Pa.
Glance at EventsA P R I L C A L E N D A R
[ 10 ]
New date added for Jerry Milton, seminar:Interest in “Navigating Contractual Liability and Certificates of Insurance” has been overwhelming, andseveral dates have sold out. To accommodate the demand, IA&B has added a second date, May 3, in Mechanicsburg, Pa. In this seminar, industry expert and perennial CE favorite, Jerry Milton, CIC,discusses in detail the usual contractual indemnification provisions and insurance requirements, plus the problems and issues with certificates of insurance. This summer, Milton returns with “Insuring Contractors,” examining contractors’ various exposures and how the CGL, Contractors’Equipment, and Builders’ Risk policies will respond. To read more and register for either seminar, visitiabgroup.com/milton, or call the Member Service Center at (800) 998-9644, option 0.
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 10
[ 11 ]
Garage Liability
Sheri Nelson x237 [email protected]
Tri-State General Insurance Agency1-800-556-7894
We write more than just “trucking” . . . Visit us at www.tsgia.com
Maryland * Pennsylvania * Delaware * DC * Virginia * New Jersey
Pat Hudson Dennis x240 [email protected]
DealerNon Dealer False Pretense Garage Keepers Dealers Physical Damage Schedule Tow Trucks General Liability on Related exposures Building Coverage Misc Tools
Fast, Friendly Service
GarageUnderwriter
GarageUnderwriter
Frederick Mutual Insurance Company, an AM BESTA- (Excellent), VI property/casualty insurer writing inMaryland and Pennsylvania is currently looking forexperienced property/casualty insurance agents licensedto write personal and commercial lines business inMaryland and Pennsylvania. Frederick Mutual, a nichecompany, specializes in writing Small ArtisanContractors, Mainstreet BOP Business, Homeowners,Dwelling Fire and Personal Umbrella.
Established in 1843, we pride ourselves on our qualityof service and desire to partner with equally dedicatedprofessionals.
Additional background information regarding FrederickMutual is available on our website at www.fredmut.com.
57 Thomas Johnson Drive, Frederick, MD 21702-4301301-663-9522
ecurity in Your Time of Need
nparalleled Customer Service
orporate Integrity
ompetitive Pricing
ase of Doing Business
uperior Financial Strength
ound Products
SSUUCCCCEESSSS
At Frederick Mutual, we adhere to the following
Pillars of SUCCESS
G19118_01-11.qxp:April2011 3/16/11 3:24 PM Page 11
COVERAGES
Ins & outs of flood zonesDetermining the right one
Securing an accurate floodzone determination hasbecome one of the majorchallenges for insuranceproducers and their clients.On the following pages,flood-insurance expert RitaHollada explains whydiscrepancies occur andhow they can beaddressed.
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 12
[ 13 ]
Primary Agent | April 2011
Discrepancies between the flood zone determined bya lender and that indicated by an insurancecompany, a licensed surveyor, a community officialand an insurance agent create complication and
often unnecessary expense for all concerned. The reading ofthe Federal Emergency Management Agency’s (FEMA) riskmaps is not an art to be interpreted but a science based onfinite lines and measurements. There has to be a way to getthis right – and get it right the first time and every time.Unfortunately, that’s easier said than done.
Flood zone primerLet’s back up for just a minute and talk about what floodzones are, why they are important and, most of all, whyaccuracy is imperative.
When a community agrees to participate in the NationalFlood Insurance Program (NFIP), it agrees to identify theareas in that community which have a history of floodingand those that are susceptible to future flooding. Typically,these begin with areas near a body of water, but flood-proneareas also can be identified as low lying areas, areasprotected by aging or inadequate levees or flood controlprojects, as well as areas affected by runoff fromdevelopment and paving. There are many conditions thatcreate an elevated risk of flooding, and those conditionschange on a regular basis.
__________________________________________________________
The reading of the Federal EmergencyManagement Agency’s (FEMA) risk maps is
not an art to be interpreted but a science based on finite lines and measurements.
__________________________________________________________
The NFIP indicates a level of flood hazard by a flood zonedesignation after extensive engineering and survey work.Those areas with the highest potential of flooding aredefined as Special Flood Hazard Areas (SFHA) anddesignated with a flood zone beginning with A or V. Areas ofmoderate or minimal risk of flooding are denoted B, C or Xzones. Areas of undetermined hazard are designated as Dzones. These zones appear on the risk maps, and as thehazard changes, the maps are refined and updated to keeppace with the risk.
Accuracy in flood zone designations is important for threemajor reasons, all of which affect the property owner and theprice and availability of insurance. First, the flood zone
D On-demandfloodtrainingComing to a computernear you
Up the creek with an impending floodCE deadline and overbookedschedule? IA&B offers a paddle: a newon-demand flood seminar to therescue beginning this spring. Thetraining combines the quality of IA&Beducation with the convenience ofonline technology.
Navigate the coursework on yourschedule, at your pace. Yet still benefitfrom a top-notch instructor —nationally renowned flood expert RitaHollada — and from the ability to askquestions and receive timely answers.
IA&B’s on-demand flood webinar isapproved for the following CE credits:3 Flood in Pennsylvania, 3 PC/Flood inMaryland and 3 Flood in Delaware.
Additional on-demand webinars onE&O and ethics are in the pipeline.Look for more in Agent Headlines and on iabgroup.com.
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 13
determines the level of risk.Buildings located in a SFHAhave a 1 percent annual chanceof flooding. This translates to a26 percent chance of extensivedamage by flood during the lifeof a 30-year mortgage. Second,the flood zone determines if alender must require thepurchase and maintenance offlood insurance for the life of aloan. Third, the flood zone is themost significant determiner ofthe rate that will be used indetermining the flood insurancepremium.
Mandatory purchasesexplainedFrom 1968 until the adoption ofthe Flood Disaster Protection Actof 1973, the purchase of floodinsurance was voluntary.However, the 1973 Actmandated flood insurancecoverage for many properties.For the first time, federallyregulated lending institutionscould not make, increase,extend or renew any loansecured by improved realproperty located in an SFHA in aparticipating community –unless the secured building andany personal property securingthe loan were covered for thelife of the loan by a floodinsurance policy.
After the multibillion-dollar flooddamage in the Midwest duringthe summer of 1993, Congressrevisited the mandatorypurchase law and enacted the1994 Reform Act. It wasobserved that too few lendinginstitutions were requiring floodinsurance in compliance withthe 1973 law. Therefore, the
1994 Reform Act imposedsignificant new obligations onlenders and loan servicers and tightened the requirementfor the receipt of disasterassistance.
Lender must have aguaranteed zonedeterminationOne of the obligations imposedon lending institutions dealsdirectly with the flood zonedetermination. The nondelegableobligation of the flood zonedetermination remains theresponsibility of the lender.There can be limited reliance onthird parties, but the informationthat they provide must be“guaranteed.” Lenders need toprotect themselves in the eventof errors. This “guarantee” ofaccuracy is one of the majorstumbling blocks in resolving aflood zone discrepancy.
________________________________
The nondelegableobligation of the
flood zone determinationremains the responsibilityof the lender…. [And the]
“guarantee” of [its]accuracy is one of
the major stumbling blocks in resolving
a flood zone discrepancy. ________________________________
A financial institution cannot relyon the statements of a borrowerthat the structure in question iseither inside or outside an SFHA.Lenders may reasonably seekassistance from third parties that
have demonstrated theirknowledge concerning floodmap information. For regulatorypurposes, reasonable relianceupon such services in themaking of a lender’sdetermination is regarded asacceptable only to the extentthat “such person guarantees theaccuracy of the information.”
In many instances, communityofficials, insurance companypersonnel, insurance agents, realestate agents, surveyors orappraisers may be helpful andknowledgeable resources.However, to the extent that suchparties cannot or will not grantguarantees, reliance upon theinformation they provide cannotbe used for exculpatory purposesif the lender is confronted with aregulatory violation or a civilclaim for damages.
Causes of flood zonediscrepanciesSince all of the interested partiesin the flood zone determinationare working from the same mapsand information, logic dictatesthat every interested party shouldreach the same conclusion. So,why are there so many instancesof disagreement? This is exactquestion I asked Cheryl Small,president of the National FloodZone Determination Association.The answers I received werequite thought provoking.
One obvious answer: Differentparties are using differentmapping information. Oldereditions of a community’s floodmap may not reflect currentinformation.
COVERAGES
[ 14 ]
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 14
The current map must always be used. The maps themselvescreate problems in that despite FEMA’s efforts, theboundary location of someSFHAs may be difficult topinpoint precisely. In somecases, information about Letters of Map Amendment(LOMA) and Letters of MapRevision (LOMR) has not beenreleased by FEMA to thedetermination companies. Many of these problems should be ameliorated withcompletion of the current projectto digitize map information andoverlay many layers ofgeographic information onto the FEMA risk maps.
Another common cause of zonediscrepancies results from theproperty description itself.Lenders often have informationfrom the property deed whichoutlines the boundaries of thereal estate. But even a streetaddress only points to a spot of land. Often there can bemultiple flood hazard zones onone piece of real estate.
Flood insurance is based on the location of the building to be insured, not the realestate. A flood zonedetermination must be building specific. However, ifany portion of a building is inthe SFHA, the entire building isdeemed to be in it. This applieseven if that portion of thebuilding in the SFHA is notcovered by the NFIP policy, suchas the corner of a deck. Themandatory-purchase legislationstates that even though aportion of real property on
which a building is located may lie within an SFHA, thepurchase and noticerequirements do not applyunless the building itself, orsome part of the building, is in the SFHA.
Steps to resolve a flood zonedetermination discrepancyThe statutory requirement topurchase flood insurance appliesonly when a loan is extended onimproved real property (i.e., abuilding) that is located or willbe located in an SFHA in a
[ 15 ]
800-334-5579www.gotapco.com
LandscapeContractorscoveragein a five-minute phone call.
CGL Coverage Available:
* Available coverages and markets may varydependent upon risk characteristics.
Call. Quote. Bind.
“A”-ra e o -a i e carrier
Co e i ive rici g
a olic r aro
- e i a ci g available i o a e
Q ic clai a li g
0 cre i o o r er o alize A CO Zc i a ebi car i eac olic
i a Ma erCar a AC a e acce e
The TAPCO Service Pledge
1,000 Strong More than 1,000 classes of P&C businesswritten under binding authority.
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 15
participating community. Therequirement is accomplished by completing the StandardFlood Hazard DeterminationForm (SFHDF) which is utilizedby the lending institution. If theflood zone designation noted onthe SFHDF differs from the
zone designation noted on theflood insurance policy, thelender should resolve it anddocument the reasons. Theremay be some legitimate reasonfor the discrepancy, such as theNFIP “grandfather” rules. If flood zone determinations have
been done by two FLDcompanies, then a first step isto have them jointly reviewtheir information. If the parties cannot resolve thediscrepancies, then FEMA canbe contacted to do adetermination review.
When a borrower disputes alender’s determination that aproperty is in a SFHA andrequires flood insurance, the1994 Act allowed for the Letterof Determination Review (LODR)process. The borrower andlender may jointly submit areview request to theadministrator of FEMA duringthe 45-day period after theborrower is notified that floodinsurance is required. FEMA will charge a fee for thisprocess, and the request mustbe signed by both the borrowerand lender because of the fee.Between them, they must decide who will pay the fee and include payment. Theadministrator of FEMA will rule on the determination,provided the review requestmeets the stipulated criteria. The determination in questionmust have been conducted orobtained by a lender using the current map panel. Thereview process is intended toconfirm or disprove the accuracyof the original determination. It will not address the requiredBase Flood Elevation or otherrating issues.
COVERAGES
[ 16 ]
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 16
________________________________
Until some revision of thesystem is undertaken, ourbest hope lies with the
hoped-for accuracy of thenew, highly detailedelectronic flood maps.
________________________________
ConclusionThere are few simple solutionsto the problem of flood zonediscrepancies. For the present,the responsibility and legalrequirement remains with thelending institution. It continuesto be a source of frustration forpolicyholders, agents andsurveyors alike. There areseveral initiatives underdiscussion to streamline thedetermination process, includinga requirement that a lenderrelease the flood zonedetermination performed at their request to be used by allparties. Until some revision ofthe system is undertaken, ourbest hope lies with the hoped-for accuracy of the new, highly detailed electronicflood maps.
_______________________________
M. Rita Hollada, CPCU, CIC, CPIA,member and former chairman ofthe Flood Insurance ProducersNational Committee ( FIPNC)
[ 17 ]
Primary Agent | April 2011
RELATIONSHIPSIT’S WHY WE STAND OUT FROM THE CROWD
“ I’m a mom, and for me excellent
communication is important. The
same holds true for my role as a Bond
Underwriter. Developing personal
relationships with our customers is
essential—it’s
who we are.”
Robyn Shepherd Bond Underwriter—professional listener and “customer care” expert
Connect with Robyn on LinkedIn!
800.538.4796 jmwilson.com
Managing General Agency Since 1920
Property/Casualty Professional Liability Surety Commercial Transportation Personal Lines Premium Finance
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 17
Platinum Profile
Insurance Agents &
Brokers proudly recognizes
Millville Mutual Insurance
Company as one of its
Platinum Partners.
IA&B Platinum Partners
dedicate the highest
level of sponsorship to
our organization.
FEATURED PARTNER:Millville Mutual Insurance Company
COMPANY PRESIDENT:M. Paige Raski
President
COMPANY LOCATION:215 State Street, Millville, PA
1-800-262-8495
A.M. BEST RATING: “A” (Excellent)
WEB SITE:www.millvillemutual.com
Millville Mutual takes pride inserving its nearly 60,000policyholders throughout
the state of Pennsylvania. The staffat Millville Mutual is dedicated tobuilding strong ties to rural andsuburban Pennsylvania, which gives them the insight andknowledge to tailor their productsand services to fit the specific needsof each individual policyholder. With more than 175 independentagencies across the state, customerscan receive the personalized service and individualized productsthey deserve.
With $54 million of assets, $24 million in premium and $30 million in surplus, MillvilleMutual is proud to announce thatdue to financial strength andefficient operations they haveretained an “A” (Excellent) rating by AM Best Company, which is a rating they have maintained since 1973.
Many of the company’sachievements during the past yearwent beyond financial results. Theyreplaced an antiquated specialmulti-peril fire program with a newspecial residential package policyprogram which provides packagepolicy coverage to owners of tenantoccupied rental dwellings. And theyprovided advanced webinars totheir agency force as a training toolwhen introducing the new program.
Millville Mutual achieved significantprogress in the redesign of a Web-based policy management systemwhich will allow their customers andagency force access to policy andbilling information 24/7.
Millville Mutual strives to providethe best possible combination ofpersonalized customer service andtechnological advancementavailable in today’s market, and arecommitted to building lastingrelationships with both theirpolicyholders and their independentagency force.
Millville Mutual company headquarters located in Millville, Pennsylvania
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 18
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 InsuranceHighmark Casualty Insurance CoInsurance Agents & BrokersService Group IncMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupOhio CasualtyPenn National InsuranceSelective Swiss ReThe Main Street America GroupTravelersUtica National Insurance Group
GOLD LEVELAllied InsuranceMMG InsuranceProgressive
SILVER LEVELAccess Insurance Company American Mining Insurance CoCumberland Insurance GroupFrederick Mutual Insurance CoHarford Mutual Insurance CoJuniata Mutual Insurance CoPSBA Insurance TrustThe Motorists Insurance GroupThe Philadelphia ContributionshipWestfield InsuranceZenith Insurance
BRONZE LEVELAegis Security Insurance Co
Agency Insurance Company
Auto-Owners Insurance Company
Briar Creek Mutual Insurance Company
Builders Insurance Group
Chubb Group of Insurance Companies
Encompass Insurance
First General Services
Foremost Insurance Group
Goodville Mutual Casualty Company
Grange Insurance Companies
Guard Insurance Group
Hanover Fire & Casualty Insurance Company
Insurance Alliance of Central PA Inc
Insurance Placement Facility of PA
Keystone Insurers Group Inc
Lebanon Mutual Insurance Company
Mercer Insurance Group
Merchants Insurance Group
Mercury Casualty
Penn Millers Insurance Company
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 Mutual Service Office Inc
Tuscarora Wayne Insurance Company
Primary Agent April 2011
G19118_12-19.qxp:April2011 3/16/11 2:07 PM Page 19
INDUSTRY NEWS
The National FloodInsurance Program (NFIP) isunder increasing attack byCongress. Seen as a moneypit, the program faces arocky future. Here, IA&Boutlines a few of the recentlegislative attacks andresponds with implications.
The future of the NFIP Congressional point, IA&B counterpoint
G19118_20-24.qxp:April2011 3/16/11 2:19 PM Page 20
[ 21 ]
Primary Agent | April 2011State of the programCongress renewed the NFIP in five-year intervals for decades. But onSept. 30, 2008, the program suffered its first major lapse atexpiration. Three more lapses followed in 2010. Recent NFIPextensions often have been lumped in with other politically chargedprogram extensions, such as COBRA or unemployment benefits,leaving the program as collateral.
Most recently, following a month-long expiration, President Obamasigned a temporary legislative fix to extend NFIP until Sept. 30, 2011.That leaves the program in jeopardy again in six months. And giventhe state of the national budget, the NFIP has become a prime targetfor cuts.
Funding threatRep. Candice Miller (R-Mich.) introduced legislation (HB 435) thatwould completely phase out the program by the end of 2013(although it does not address if or how the program would be fundeduntil then). Proponents argue that the NFIP is not designed to raiseenough money through its rates to pay all of its claims – particularlyin the wake of large disasters like Hurricane Katrina where theprogram had to borrow nearly $18 billion from the federal treasury.
Wind-damage threatCalls also have been made during previous reauthorization debatesto add wind damage to the program. Last year, Sen. Roger Wicker(R-Miss.) introduced SB 3672 that would have mandated the NFIP tosplit the costs of catastrophic damage 50/50 with wind insurers(including state wind pools) in cases where the cause of the damageis in dispute. The proposal would have shifted the burden of prooffor flood and wind loss allocation from the policyholder to theinsurers. In this scenario, the policyholder would be paid regardlessof the ultimate determination of the cause of the damage or if aclaim was legitimate at all.
IA&B’s stanceIA&B strongly supports long-term extension of the NFIP to avoid anyshort- or long-term disruptions to policyholders, homeowners,independent agents and the real estate marketplace. When lapsesoccur or are threatened, agents come under additional pressure asproperty owners scramble to figure out whether they can buy or selltheir properties, or if they are protected against a flood.
Continued funding of the NFIP is a necessity. The program serves aninsurance need that the private market cannot sustain. For theprivate market to underwrite flood insurance, it would have tocharge policyholders very high premiums and force insurers tomaintain significant capital reserves in case of massive flooding,when many would be making claims.
Although Sen. Wicker’s bill did not move out of committee, similarefforts continue to be a concern as lawmakers see opportunities toinsert wind-damage coverage during the NFIP-renewal process. Theinclusion of wind damage in the NFIP would serve only to furtherburden the program. Wind damage is currently covered underindividual homeowners’ insurance policies and statewide pools.
IA&B and its national affiliates will continue to advocate on behalfof producers and their insureds.
NFIP primerThe NFIP allows property ownersin certain federally designatedareas to purchase insurance fromthe government to protectagainst losses due to flooding.The program is designed to serveas an alternative to disasterassistance in addressing theescalating costs of flood damage.
In addition to providing floodinsurance, the NFIP is also thefederal mechanism for identifyingand mapping the nation’sfloodplains. These maps providethe data needed to actuariallyrate new construction for floodinsurance.
For more on flood mapping, seethe feature on page 12.
As this issue of Primary Agent went to print, a draft bill (released by Rep. Judy Biggert, R-Ill.) to reform and renew the NFIP was gaining
momentum in Congress. Watch Agent Headlines for updates.
G19118_20-24.qxp:April2011 3/16/11 2:19 PM Page 21
Primary Agent | April 2011 H.R.H E A D Q U A R T E R S
[ 22 ]
JEFFREY W GERHARTCEBS, MBA
Jeffrey W. Gerhart, CEBS, MBA,
provided this article on behalf of
Mosteller & Associates, IA&B’s
contracted human resources
consulting firm.
IA&B members have access to
HR Solution©, a compilation of
products and services to help
them establish or improve their
human resources program.
Included are base-level
consultation services and
discounted professional services
from Mosteller & Associates.
Recently, the U.S. SupremeCourt unanimously ruled inNASA v. Nelson that thegovernment, as a publicemployer, can ask aboutemployees’ drug treatment,medical conditions or otherpersonal information in itsbackground securityinvestigation – a practicealready “commonplace in theprivate sector.”1 The decisionis further endorsement thatemployers are permitted touse screening processes toinsure they are hiringcompetent, sound personnel.
In the past few months, I’veseen a slight uptick in thenumber of IA&B membersasking whether backgroundchecks should be conductedon their current employeesand as part of their hiringprocess. Questions typicallyare driven from IA&B’srevised HR Solution© toolsand from concern overviolating the Violent CrimeControl & Law EnforcementAct (VCCLEA).
What are some of the morecommon background checks,and what do they look at?
� Employment verification:job history normallysubmitted with acandidate’s resume oremployment application
� Education and credentialverification: candidate’seducational degrees,licenses and certifications
� Driver’s records: validdriver’s license throughstate motor vehicledepartment
� Credit checks: bankruptcyfilings and timely billpayments
� Social security number:worker’s identification forpayroll, income taxes andfederal retirement anddisability programs
� Criminal backgroundcheck: conviction record,VCCLEA compliance
� Military service: rank anddischarge status
Am I legally requiredto conduct backgroundchecks?The short answer is no, but itwill help you do the following:
� Identify individualsconvicted of a felonyinvolving “dishonesty andbreaches of trust” andhelp you securepermission from thestate’s insurancedepartment for theindividual to continueworking
� Manage risk to theagency
� Exercise due diligenceand legal compliance
� Improve your hiringprocess and the quality ofthe candidate pool
� Protect individuals’personal information
� Reduce discipline,turnover and cost ofemployment
BACKGROUND-SCREENING CHECKS:CRIMINAL OR NOT?
1 AHI Employment Law Today,February 8, 2011
G19118_20-24.qxp:April2011 3/16/11 2:19 PM Page 22
[ 23 ]
What are additionalconsiderations?Employers are limited by state orfederal statute in the kinds ofinformation they may access and makeuse of in hiring decisions. Also,background checks are not fool proofand should be considered carefully.
� If you develop a policy, it’simportant to follow it. Otherwiseyou may have difficulty defendingyour hiring decisions against legalchallenges.
� A signed authorization from thecandidate is necessary to obtaintheir personal information.
� The individual must receivewritten notification if an adversedecision is made.
� The kinds and types ofbackground checks must be jobrelated.
� Hiring decisions cannotdiscriminate unintentionallyagainst protected groups. (Note:Minorities are affecteddisproportionately by convictionsand financial problems.)
� There are costs of screening –whether it is conducted yourself orcontracted to a third-party service.
What next?IA&B redesigned HR Solution to helpguide you. From www.iabgroup.com,select “Agency Operations” and then“Employee Management.” Once in HRSolution, choose “AdministrativeGuide,” “Review Sections ofAdministrative Guide” and then“Screening and Testing.”
In addition, click on the related links tolearn more about the VCCLEA processand a selection of suggested vendors.And be sure to check your stateregulations for the kinds ofinformation that may be limited orrestricted to you.
Editor’s note: HR Solution contains acompilation of products and services,including a ready-to-use administrativeguide. Access to HR Solution isincluded with IA&B membership but islimited to those individuals designatedas agency administrators within theIA&B database.
To access HR Solution, visitwww.iabgroup.com/HR. To add anagency administrator, contact IA&B’sMember Service Center at 800-998-9644, option 0.
IF YOU HAVE THE TOOLS,WE HAVE THE INSURANCE.
Residential Contractors with up to 5 employeescan find great deals on liability insurance atBrokers Surplus Agency. We represent Utica First Insurance, one of the largest writers of small contracting firms in the Northeast, and we cangive you a free quote on all your coverage needs!Call or email us today!
Contact: Dennis Marsaglia, Ext. [email protected] Frisch, Ext. [email protected]
Brokers Surplus Agency, P.O. Box 2849,Warminster, PA 18974 � Call (215) 443-9900
Contact PA Home Office:at ext. 139 [email protected] ext. 128 [email protected]
800-523-6422; 215-885-7300
Etty HerzigJanet Barton
INSURANCE INNOVATORS’Artisan/Trade Contractor Product
Fast, Reliable Service
www.iiigroup.com
Product Features broad eligibility to include:
Additional Advantages
~ 30 Eligible Classes of Artisan and Trade Contractors~ Payroll up to $500,000~ Receipts up to $1,000,000~ New Ventures~ Up to 50% subcontracted work~ Exterior work up to 4 stories~ Competitive Pricing~ Additional rate credits available based
on favorable risk characteristics~~~~~
~ A.M. Best rated A++ carrier~ Quick turnaround time on submissions~ Available for Online Quoting using F.I.R.E.
G19118_20-24.qxp:April2011 3/16/11 2:19 PM Page 23
Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . . .5
Brokers Surplus Agency . . . . . . . . . . . . . . . .1, 23
Commonwealth Ins Co . . . . . . . . . . . . . . . . . . . .3
EMC Insurance Companies . . . . . . . . . . . . . . .IFC
Frederick Mutual Ins Co . . . . . . . . . . . . . . . . . .11
Guard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
IA&B Partners Program . . . . . . . . . . . . . . . . . . .19
IA&B Series Ad . . . . . . . . . . . . . . . . . . . . . . . . .IBC
Insurance Innovators . . . . . . . . . . . . . . . . . . . .23
Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC
J.M. Wilson . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Mutual Benefit Group . . . . . . . . . . . . . . . . . . . . .9
Penn National Insurance . . . . . . . . . . . . . . . . . .16
Preferred Property Program . . . . . . . . . . . . . . . .9
TAPCO Underwriters . . . . . . . . . . . . . . . . . . . . . .5
Tri-State General Ins Agency LTD . . . . . . . . . . .11
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.
[ 24 ]
Are drivinghabits writtenin the stars?A claim that zodiac signs shifted rocked the astrological world – and made national news headlines — in early2011. Minneapolis astronomy instructor Parke Kunkleintroduced a thirteenth sign, Ophiuchus, whichbumped some unsuspecting Scorpios (for example)under the Virgo sign.
For kicks, Allstate compared its claims data against the revised zodiac calendar. Among their findings?Those newly classified Virgos were 700 percent more likely to be in a car accident compared toScorpios. And Ophiuchus encompassed the second-safest drivers on the road.
However, Allstate’s fun and games backfired as insureds questioned their rates. The companyquickly distributed a press release reassuring customers that astrological signs are not part of theunderwriting process.
----------------------------------------------------------------———————-------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 [email protected], subject line: Last & Least. The editor will happily protect sources’ anonymityupon request.
G19118_20-24.qxp:April2011 3/16/11 2:19 PM Page 24
SPEAK UP! YOURJOB DEPENDS ON IT!
SUPPORT AGENTPAC — your voice IN THE STATE CAPITOL.
AgentPAC is yyoouurr ssttaattee political action committee and the
collective voice of independent agents in the state capitol.
Issues that affect yyoouurr jjoobb are at stake, and backing legislators
aligned with IA&B’s government affairs agenda depends on
yyoouurr ssuuppppoorrtt. Watch for GGrraassssrroooottss AAccttiioonn AAlleerrttss prompting
you to contact your legislators on specific issues, and consider
donating to AgentPAC at a level that speaks (loudly) to
policymakers that support our cause.
LEARN MORE AND CONTRIBUTE ONLINEAT IABGROUP.COM/AGENTPAC.
That’s how we deliver distinction.
Your voice in the state capitol.
G19118_IFC-IBC-OBC.qxp:Layout 1 3/16/11 2:35 PM Page 2
Let Interstate nail down the right liability coverage for your contracting clients.
Hit The Nail On The Head
• “A+” Rated Carriers• Simpli�ed & Non-Simpli�ed
Occurence Forms• Policy Period for 4, 5, 6 or 12 Months• Policy for Small Contractors• Limits up to $1 Million
Call, fax or email your application today!• Experienced underwriting • Fast Turnaround
• Quick Claims Processing
In Pennsylvania, Ohio & West Virginia 2307 Menoher Boulevard • Johnstown, PA 15905814-255-7878 • 1-800-452-0297 • Fax: 814-255-6010
In Maryland, Delaware & Virginia 111 Warren Road • Suite 1B • Cockeysville, MD 21030410-628-1744 • 1-800-759-7779 • Fax 410-628-6914
www.interstate-insurance.com
HHOO
TTttiiHHhhTTOnO
h NehTTh Heh
liaNdaeH
ld
O
hTnO
tnIteLlthgircruoyyo
Heh
woowdlianetatsretgarraevveoovcyttyilibaineilcgnitcarratnoc
daeH
ehtnwroffoe
stn
d
cruoyyotaR”+A““A•
�ilpmiS•eruccOPyccyiloP•filP
neilcgnitcarratnocsreirraCdet
de�ilpmiS-noN&de�smroFecn
M21ro6,5,44,roffodoirePCllS
.stn
shtnoM
meroxaf,llaC
offoyccyiloP•ustimiL•
cilpparuoyliam
srotcarratnoCllamSronoilliM1$otpu
!yadotnoitac
E•
,ainavlysnnePnIoBrehoneM7032-1•8787-552-418
eoa,aCdnudecneirepxEciuQ•
ainigriVtseW&oihO50951APPA,nwotsnhoJ•draveluo
0106-552-418:xaF•7920-254-008-
cppauoya•gnitirwredsecorPsmialCkc
!yadototacdnuoranruTtsaF
gniss
d
leD,dnalyraMnIdaoRnerraW111
-1•4471-826-014
etatsretni.www
ainigriV&erawa03012DM,ellivsyekcoC•B1etiuS•
4196-826-014xaF•9777-957-008-
moc.ecnarusni-e
G19118_IFC-IBC-OBC.qxp:Layout 1 3/16/11 2:36 PM Page 3