wisconsin INDEPENDENT AGENT OCTOBER 2019
IIAW 2019-2020 EXCLUSIVE SPONSORS
wisconsin INDEPENDENT AGENT CONTENTS 4-16.........Exclusive Sponsor Profiles 17............ Big “I” Media Release 19............ Sales Beyond Referrals: 4 Strategies of Successful Producers 20............ Insurance Bartender WCRB Evaluating Moving to Schedule Rating, Congratulations Emerging Leaders Committee 23............ Risky Business Employee Involvement During Periods of Change 26-27....... Commentary From Counsel Supreme Court Holds That Employers Forfeit EEOC Change Rule Defense If Not Timing Raised 28-30....... Virtual University Who Is Liable When No Ones Driving 31............ Errors & Omissions Life Comes At You Fast 32-33....... Agency Operations Six Components of Self-Management 35............ Government Affairs Wisconsin’s Split Government Slows Legislative Activity 37............ Virtual University Ask An Expert 39............ Technology 3 Ways Automation Can Make Your Agency More Efficient 40............Members In The News 42............Food For Thought
ADVERTISERS & INFORMATION 34.........AAA 41.........AMERISAFE 41.........Badger Mutual 21.........Berkshire Hathaway GUARD 38.........DAIS 34.........Erickson-Larsen, Inc. 25.........IIAW CE Education Calendar 22.........IIAW E&O Premium Discounts 33.........IIAW Emerging Leaders Event 27.........IMT 36.........Integrity 43.........Partners Mutual 24.........Pre-licensing Schedule 42.........Robertson Ryan & Associates 44.........Secura 18.........West Bend Mutual 2...........Western National Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2019 For information on advertising, contact Ashley Hale, 608.210.2977 or ashley@iiaw.com.
Independent Insurance Agents of Wisconsin 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com
2019-2020 EXECUTIVE COMMITTEE President: Chris Costakis Avid Risk Solutions, Middleton President-Elect: Darrel Zaleski Spectrum Insurance Group, Eau Claire Secretary-Treasurer: Marc Petersen A merican Advantage - Petersen & Assoc., Inc., New Berlin
Chairman of the Board: Jason Bott Robertson-Ryan & Associates, Milwaukee State National Director: Steve Leitch Leitch Insurance, River Falls
2019-2020 BOARD OF DIRECTORS
Mike Ansay Ansay & Associates, Port Washington Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Mike Harrison R&R Insurance Services, Inc., Waukesha Ryan Leitch Leitch Insurance, River Falls Aaron Marsh Marsh Insurance Services, Inc., Rice Lake Joanne Lukas Szymaszek Johnson Insurance Services, LLC, Racine Chad Tisonik HNI Risk Services, LLC, New Berlin Andrea Nelson Unisource Insurance Associates, LLC, Wauwatosa
IIAW STAFF
Matt Banaszynski Chief Executive Officer 608.256.4429 | matt@iiaw.com Mallory Cornell Vice President and Director of Risk Management 608.210.2975 | mallory@iiaw.com Kim Kramp Association and Agency Accounting Manager 608.210.2976 | kim@iiaw.com Trisha Ours Director of Insurance Services 608.210.2973 | trisha@iiaw.com Ashley Hale Graphic Designer and Creative Marketing Manager 608.210.2977 | ashley@iiaw.com Evan Leitch Technology and Risk Advisor 608.210.2971 | evan@iiaw.com Diana Banaszynski Education Coordinator 608.256.4429 | diana@iiaw.com
On The Cover... Our Exclusive Company Sponsors provide significant support to the IIAW so that we can continue to bring industry leading products, services and world-class events and resources to our members. We thank them for their continued partnership, involvement and support of the independent agency channel! In this issue, learn about how these great companies and the IIAW are positioning the independent agency system for success.
wisconsin INDEPENDENT AGENT
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IIAW 2019-2020 EXCLUSIVE SPONSORS PROFILES THANK YOU!
Thank you to our Exclusive Company Sponsors for their support of the IIAW. Without their support, we wouldn’t be able to provide industry leading products and services for our members. If you come across any representatives of any of these companies, please be sure and say thank you for supporting the IIAW and the IA channel.
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wisconsin INDEPENDENT AGENT
EXCLUSIVE SPONSOR PROFILES
Serving AAA Members, even on two wheels. While you’re out enjoying this year’s ride, here’s a refreshing tip for AAA Members: AAA now offers roadside assistance for bicycles. AAA Bicycle Service is a new benefit with every membership that provides transportation for you and your bicycle if it breaks down on your ride. It’s one more way AAA helps members relax and enjoy the ride!
Learn more today! For Information on becoming a AAA Independent Insurance Agent Contact: Leo Plese, Regional Sales Director lmplese@aaachicago.com (630)328-7076 AAA Bicycle Service is available in Florida, Georgia, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Tennessee, Wisconsin and portions of Illinois and Indiana.
wisconsin INDEPENDENT AGENT
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AAA.com/Bicycle
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EXCLUSIVE SPONSOR PROFILES
Acuity loves you!
We are proud of the relationships we have built with the best independent agents in the world!
www.acuity.com
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wisconsin INDEPENDENT AGENT
EXCLUSIVE SPONSOR PROFILES
wisconsin INDEPENDENT AGENT
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EXCLUSIVE SPONSOR PROFILES
IT’S THE SIMPLE THINGS THAT DIFFERENTIATE US FROM OUR COMPETITORS. We are a strong Midwest regional carrier that values our relationships with independent insurance agents. PRODUCT LINES IMT Insurance offers personal and commercial insurance products to help protect families, homes and businesses. We strive to offer great insurance products and exceptional service for a competitive price. These products include car insurance, home insurance, business insurance, farm liability, umbrella insurance and surety/fidelity bonds. INDEPENDENT AGENTS People buy their insurance from independent agents because they know them, like them, and trust them. That is exactly the reason independent agents do business with IMT. We use our strong partnership with Wisconsin Independent Agencies to meet and exceed the needs of our personal and commercial lines clients.
TECHNOLOGY IS OUR STRONG SUIT Technology is a vital part of our business at IMT and have won awards for our innovative technology. We develop and maintain our own policy systems – all from our home office. Our systems are companytested and agent-approved. In addition, we are committed to helping our agents succeed with resources and content for social media, video and digital advertising. ABOUT IMT IMT is proud of our heritage and will never forget where our roots are firmly planted. Locally run from our home office in West Des Moines, Iowa, IMT has been a Midwest company since it was founded in Wadena, Iowa in 1884. That’s more than 130 years! Today, IMT continues to offer the strong line of personal and commercial insurance products for which it has always been known through Independent Agents throughout our six-state territory – Iowa, Illinois, Minnesota, Nebraska, South Dakota and Wisconsin.
Are you a local independent agent interested in learning more about IMT products and services? Contact Troy Neil at 800-274-3531, x730.
imtins.com | 800-274-3531 8 OCTOBER 2019
wisconsin INDEPENDENT AGENT
EXCLUSIVE SPONSOR PROFILES INTEGRITY INSURANCE With a long history of supporting independent agents, an “A” rating from A.M. Best and a customizable lineup of business, home, auto and life insurance, Integrity offers the stability of a large insurance carrier and the personalized service of a small business.
WE KNOW OUR AGENTS
How often do you hear about underwriters getting to know agents as individuals and building friendship along the way? Or an agent being able to pick up the phone and have a conversation with a member of the leadership team? Agents who work with Integrity know the relationship we have with our agents is unique. When you work with us, you get a truly connected partner. What does that mean? It means what we promise, we deliver. We’re dedicated to your long-term success. And it means we can have a few laughs together.
WE DON’T WIN, UNLESS YOU WIN
That’s why Integrity agents have a high level of access to our leadership team. We’re constantly asking for feedback to make sure we’re delivering what you need to be successful — and we’re responding to that feedback, too. Whether it’s during agency meetings or an informal phone call, your voice is heard.
COMMITTED TO PROVIDING THE BEST EXPERIENCE FOR YOUR CUSTOMERS
From our insurance coverage and financial strength to Integrity’s excellent claims service, you can rest assured that your customers are with a company that’ll serve them well.
TAKING INNOVATION TO ANOTHER LEVEL
With partner Grange Insurance, we’re working with startups and external partners to help advance our competitive position and rapidly meet and exceed the changing demands of our policyholders and agents.
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EXCLUSIVE SPONSOR PROFILES
You understand your clients. Liberty Mutual Insurance and Safeco Insurance understands how to support them. We know your clients’ needs are unique. That’s why we work with you to customize coverage exclusively for them. Talk to your territory manager or visit LibertyMutualGroup.com/Business or Safeco.com to learn more.
10 OCTOBER 2019
wisconsin INDEPENDENT AGENT
EXCLUSIVE SPONSOR PROFILES
AGENTS OF
invention
A PARTNERSHIP BUILT ON UNLEASHING DATA Independent agent Seth Zaremba has set his agency apart and up for continued growth by blending art and science. Using data sharing and artificial intelligence, he and his team create seamless customer journeys, from acquisition to renewal. He values Progressive for its thought leadership, advanced technology, and consumer insights. Because, when it comes to strategy and innovation, “Progressive is playing chess while other carriers are playing checkers.� AgentsofProgressive.com
SETH ZAREMBA ZINC | BROADVIEW HEIGHTS, OH
Vehicle insurance is provided by Progressive Casualty Ins. Co. & affiliates. Home and renters policies are provided and serviced by affiliated and third-party insurers who are solely responsible for claims. Prices, coverages, and privacy policies vary among these insurers.
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EXCLUSIVE SPONSOR PROFILES
Discover why agents love working with us
Our independent agents value the long-term partnerships they find with SECURA and our commitment to quality coverage and service. Here are just a few of the reasons they love to work with us. •
Genuine people – Passionate, experienced associates committed to excellence and service, both for our agents and policyholders
•
Expansive product portfolio – Broad coverage for Commercial, Personal, Farm-Ag, and Specialty lines
•
Easy to do business – Committed to agent-focused solutions to help you grow your business
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Exceptional claims service – Compassionate claims professionals handle even the toughest claims promptly and fairly
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Highly rated – Recognized by A.M. Best as A (Excellent) and Ward’s 50, not to mention high marks from agents and policyholders
•
Motivated by mutual success – We meet our policyholders’ needs best by partnering with experienced, independent agents
Competitive coverage options
SECURA exceeded expectations in 2018 with $670.3 million in direct written premium, and we’re positioned to continue this trend of profitable growth for years to come. •
Commercial Lines is SECURA’s largest business unit serving a broad range of “Main Street” businesses. Our expanding appetite for contractors, retail, light manufacturers, restaurants, and numerous other markets offer coverage to fit your clients’ needs. Plus, our Workers’ Compensation coverage extends high-quality service to their employees as well.
•
Personal Lines coverage options include our MILE-STONE® home and auto package policy as well as the flexibility your clients want for their active lifestyles. Our policyholders value the added security of Roadside RescuerSM and Travel RescuerSM, not to mention our world-wide umbrella coverage.
•
Farm-Ag Lines taps the hands-on experience of former farm kids to underwrite farm-ag risks of all sizes. Our policyholders include most aspects of the industry, from dairy, hog, and vegetable producers to cash crop, custom farming, and dairy products manufacturers.
•
Specialty Lines provides agents and prospects with an admitted carrier option for difficult-to-place business. Clients range from fitness centers to food trucks and tattoo parlors to nonprofits. We even write special events and weddings to fit your clients’ needs.
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wisconsin INDEPENDENT AGENT
“When I think of our agency partners, I can’t help but feel appreciative. Our agent customers are the faces of our company across 12 states, and they play a vital role because they bring us their customers. As we continue to grow and evolve with the industry, we’re committed to fostering our mutual success.” — Dave Gross President & CEO
Engage with us online secura.net
EXCLUSIVE SPONSOR PROFILES REGIONAL TIMELINE • 2014: After acquiring Anchor Managing General Agency in Montgomery, Alabama, we created our Regional line of business. Anchor served independent agents and brokers in Alabama and Mississippi.
g professional nships Building professional • 2015: We began expanding business insurance offerings through independent agents in Wisconsin. Our Midwest Region includes offices in Madison and Milwaukee.
• 2016: We opened a second Southeast Region office in Charlotte, North Carolina, so we could expand to agencies , region by region in the Carolinas, Georgia, and Tennessee.
relationships Building professional • 2017: As we continued to grow, we expanded into the Northeast Region, opening an office in Windsor, Connecticut.
Delivering personal service, region by region TARGET INDUSTRIES
relationships • Commercial construction
• Commercial WHO WE ARE real estate We• got our start in 1904, when members of the Wisconsin Retail Hardware Association formed Distributors their own insurance company. Backed by personalized care and powerful conversations, we’ve • Retailers since grown to become one of the largest and most financially secure mutual insurance companies Service in •the nation.industries With more than $15.7 billion in assets, a $4.7 billion* policyholder surplus, and an A+ (Superior) rating from A.M. Best, the industry’s leading rating authority, we continue to provide • Manufacturing peace of mind for insureds.
Delivering personal service, region by region
REMEMBERING OUR ROOTS More than 100 years ago, when we were embers of the Wisconsin Retail Hardware Hardware Dealers Mutual Fire Insurance rance company. Backed by personalized Company, we employed an experienced we’ve sincestaff grown to become one of the who knew and understood the WHO WE ARE mutual insurance companies in the nation. hardware industry. Growing into other We got our start in 1904, when members of the Wisconsin Retail Hardware ets, a $4.7markets, billion* policyholder surplus, we continued sellingand insurance Association formed theirauthority, own insurance company. Backed by personalized Best, the industry’s leading rating through direct writers. Today, our care and powerful conversations, we’ve since grown to become one of the ind for insureds. standard business lines are handled by largest and most financially secure mutual insurance companies in the nation. knowledgeable, direct sales staff focused With more than $15.7 billion in assets, a $4.7 billion* policyholder surplus, and on industries, an specific A+ (Superior) ratingincluding fromInsurance A.M.dealerships Best, the industry’s leading rating authority, e were Hardware Dealers Mutual Fire and manufacturing businesses. we continue to provide peace of mind for insureds.
nced staff who knew and understood the ther markets, we continued selling insurance REMEMBERING OUR ROOTS LOOKING AHEAD standard business lines are handled by More than years ago,towhen we were We saw an 100 opportunity use the sameHardware Dealers Mutual Fire Insurance ocused on specific industries, including Company, we employed an experienced relationship-building approach to helpstaff who knew and understood the WHO WE ARE sinesses. hardware industry. Growing into other markets, we continued selling insurance
ROGER KALAND REGIONAL EXECUTIVE ROGER.KALAND@SENTRY.COM SENTRY INSURANCE MIDWEST REGION
REGIONAL TIMELINE • 2014: After acquiring Anchor Managing General Agency in Montgomery, Alabama, we created our Regional line of business. Anchor served independent agents and brokers in Alabama and Mississippi. • 2015: We began expanding business insurance offerings through independent agents in Wisconsin. Our Midwest Region includes offices in Madison and Milwaukee. • 2016: We opened a second Southeast Region office in Charlotte, North Carolina, so we could expand to agencies in the Carolinas, Georgia, and Tennessee.
• 2017: As we continued to grow, we expanded into the Northeast Region, opening an office in new customers in broader markets around Windsor, Connecticut. We got our start in 1904, when members of the Wisconsin Retail Hardware through direct writers. Today, our standard business lines are handled by the nation through independent agents. knowledgeable, direct sales staff focused on specific industries, including Association formedto their insurance company. Backed by personalized That’s why we established regional offices same relationship-building approach help own new TARGET INDUSTRIES dealerships and manufacturing businesses. to support specially selected independent und the nation through agents. That’s care and independent powerful conversations, we’ve since grown to become one of the • Commercial construction agents whoselected understand their clients’ s to support specially independent agents LOOKING AHEAD • Commercial real estate largest and most financially secure mutual insurance companies in the nation. and the areas livesame in. relationship-building approach to help new stries and industries the live in. tothey We areas saw anthey opportunity use the • Distributors With more than $15.7 billion in assets, a $4.7 billion* policyholder surplus, and customers in broader markets around the nation through independent agents. That’s • Retailers an we A+established (Superior) rating from A.M.specially Best, the industry’s leading why regional offices to support selected independent agentsrating authority, • Service industries who understand their clients’ industries and the areas they live in. we continue to provide peace of mind for insureds. • Manufacturing *Assets and policyholder surplus as of Dec. 31, 2016, and represent the aggregate total for all members of the Sentry Insurance Group and are not reflective of any individual underwriting company. A.M. Best rating as of May 19, 2017.
REMEMBERING OUR ROOTS Property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, sentry.com. Policies, coverages, benefits, and were discounts are not available in all Dealers states. See policyMutual for complete Fire Insurance More than visit 100 years ago, when we Hardware coverage details. Company, we employed an experienced staff who knew and understood the 68-177 14002406 2/13/18 hardware industry. Growing into other markets, we continued selling insurancewisconsin INDEPENDENT AGENT through direct writers. Today, our standard business lines are handled by
sentry.com OCTOBER 2019 13
EXCLUSIVE SPONSOR PROFILES
SFM
The right choice Wisconsin employers. in workers’ comp for
Our Wisconsin footprint is expanding Over 1,700 Wisconsin employers
Representing over $1.5 billion in Wisconsin payroll
or
Totaling $31,000,000 in written premium
Our Wisconsin-based full service team is growing Underwriters with broad authority that handle all of your new and renewal business Wisconsin claim personnel with unsurpassed jurisdictional knowledge and expertise
Loss control team of experts in accident prevention, ergonomics, safe patient handling and safety leadership Rehabilitation nurse with extensive knowledge of Wisconsin provider community
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Our Wisconsin commitment has never been stronger Exclusive IIAW Company Sponsor
WCRB Rating and Governing Committee members
IIAW Government Affairs and Carrier Relations committee member
sfmic.com SFM WI Indep. Insurance ad-agn-0219.indd 1
14 OCTOBER 2019
wisconsin INDEPENDENT AGENT
3/8/2019 8:56:10 AM
EXCLUSIVE SPONSOR PROFILES Š 2019 Society Insurance
Tried-and-true restaurant coverage with no surprises.
Small detail. Big difference. Our TopChoice insurance program for restaurants was developed with restaurant owners more than 40 years ago to be the most comprehensive and reliable protection available. We’ve stayed on top of industry trends ever since and tailor our coverage to the unique business needs of each establishment we insure. With Society, your restaurant customers get protection they can count on, delivered exactly as expected. And as you know, that makes all the difference. If you specialize in restaurants and are interested in an agency appointment, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com.
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wisconsin INDEPENDENT AGENT
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EXCLUSIVE SPONSOR PROFILES
West Bend Mutual Insurance Company Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095 Founded: April 1894 Company Web site: thesilverlining.com What sets West Bend apart from other companies? There are many things that set our company apart, but these are the most important: 1. We develop and nurture strong relationships between agents and associates through personal contact, responsible actions, and a genuine concern for our valued partners. We use such means as agency performance programs, continuing education, and advisory boards to strengthen the bonds between agency and company and ensure our mutual success. With senior management, with the underwriting team, with billing, with claims, in fact with our entire company, you simply will not find a more dedicated, personal, community-oriented, and caring group of people. 2. With a broad personal lines coverage package, a full range of commercial products and services, insurance for specialty lines, bonds, and mono-line workers’ compensation, our robust product portfolio provides our independent agency partners with a market for a large percentage of the business they write. 3. Around this we wrap outstanding service. Our associates’ dedication and commitment to providing outstanding service to our policyholders and independent agent partners are the foundation of West Bend’s Silver Lining® brand, The Worst Brings Out Our Best®. It’s a big year for West Bend This year West Bend celebrates 125 years. I couldn’t be more proud that a company founded by West Bend businessmen in 1894 has become a billion-dollar regional insurer in 2019. In fact, today West Bend is the 71st largest property/casualty insurer in the United States. Thousands of people have contributed to our success throughout these past 125 years. From the first seven agents appointed in Washington County to the more than 1,500 agencies that represent West Bend across 13 states, our independent insurance agencies have been with us every step of the way. The strong relationships we share with our agents are the heart of our success. Our priorities for 2019 We pledge our commitment to distribute our products through independent insurance agencies. We will continue to work with them to find new ways to meet the ever-changing needs of our policyholders. We know we have to make it easier for our agents and policyholders to do business with us. Our agents can rest assured the focus of our priorities and initiatives are the needs of our customers and our associates. At a time when other companies are paying less attention to relationships with their independent agency partners and choosing to distribute their products through multiple channels, West Bend remains dedicated exclusively to independent agents. – Kevin Steiner, President and Chief Executive Officer
16 OCTOBER 2019
wisconsin INDEPENDENT AGENT
Applied and InVEST Share Results of Gen Z Recruiting Survey Survey compares shifting attitudes of two generations toward the workplace and makes recommendations for recruiting new insurance professionals. ALEXANDRIA, VA – September 17, 2019 – Applied Systems and InVEST today announced the findings of a survey conducted to understand Generation Z’s awareness of career opportunities within the insurance industry and their outlook on pursuing work in this field. The report, The Future of Insurance: Bye-Bye Boomers, Hello Digital Natives, focuses on how insurance companies and agencies can leverage this information to have the greatest chance of attracting the next generation of workers. More than 400 Gen Z consumers from 16 to 22 years of age participated in this year’s survey. Their responses were compared to the results of a similar survey conducted by InVEST and Applied with millennials in 2015. “At InVEST, our mission is to educate, prepare and attract new diverse talent to the insurance industry, and it is important that younger generations see the industry as a viable option for a life-long career,” said Deborah Pickford, executive director, InVEST. “Armed with the knowledge from this report, insurance professionals can begin expanding their business practices to include the values this generation demands, creating a productive work environment for everyone and leading a thriving insurance industry.” Key survey findings include: • 58% of Gen Z respondents cited innovation as “very important” when considering a workplace, while 49% of millennials surveyed four years ago believed that innovation was very important when choosing where to work. • 61% of Gen Z respondents said it’s “very important” to work for a company that provides mentors and clearly defined career paths, while 51% of millennials agreed.
“As more than 25% of insurance professionals will soon retire, it is critical to understand what the younger generations expect when entering the workforce,” said Kris Hackney, executive vice president of customer experience, Applied Systems. “Agents, brokers, insurers and MGAs who are embracing digital technology for customers and staff will be well-positioned to recruit and retain the next generation of workers.” To view the survey in its entirety, please visit http://ow.ly/ HL9z50wbTNB. Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the U.S., Canada, the Republic of Ireland, and the U.K. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most. www.appliedsystems.com Founded in 1970 and based in Alexandria, Virginia, InVEST promotes insurance education in order to attract individuals to pursue a career in the insurance industry. Each year, the program prepares thousands of students for insurance-related careers with a hands-on curriculum taught in high schools, adult education centers and colleges. As a 501(c)(3) educational trust, InVEST benefits from the support of numerous insurance organizations, hundreds of agencies, brokers and volunteers. Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations united under the Trusted Choice brand. Trusted Choice independent agents offer consumers all types of insurance—property, casualty, life, health, employee benefit plans and retirement products—from a variety of insurance companies.
• 65% of Gen Z respondents indicated that working for a company that provides flexibility to work outside the office is “very important,” while 57% of millennials responded similarly.
wisconsin INDEPENDENT AGENT
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We know what it took to build this business.
And we know what it takes to protect it. Underwriters who know and understand what coverages are necessary to protect the business. Loss prevention professionals who use a hands-on approach to help develop programs tailored to the individual business. Claim reps with the expertise and technology to process claims quickly and efficiently. As an Official Supplier of the Silver LiningÂŽ, you and West Bend will find the right insurance plan for your valued customers. To find out more, talk to your West Bend underwriter.
Celebrating 125 years of valued relationships with our agent partners.
SALES
Beyond Referrals: 4 Strategies of Successful Producers There is a proverb that says: “Man shall not live on bread alone.” With a few adjustments, that lends itself to sales: “Producers shall not live on referrals alone.” There is a myth that successful producers don’t have to make phone calls or develop pipelines because they are so busy working on opportunities that come their way through referrals. While that would be a convenient way to grow a book of business, few agents can survive on a referral-only strategy. Building a referral network is a necessity for producers to capture more “right-fit” opportunities. So, how should you go about developing a strategy that generates more introductions with prospects who will value your offerings and build a business relationship with you? Here are four considerations that often get overlooked: Consider the character. Not every client is a good source of referrals. For the relationship to really benefit both parties, a set of shared values must exist. Referrals are a two-way street. If you’re not comfortable with how someone comports themselves, leads client initiatives or engages professionally, you should be reluctant to introduce them to your best clients. Align objectives. The best referral sources come from individuals who have similar business objectives or ones who are working with similar clients. For example, employee benefits producers will find success by developing relationships with employment law attorneys because both parties seek to help employers address similar or complementary issues. Another example is are property-casualty agents who focus on workers compensation. These agents would benefit from developing relationships with physicians and medical practices. Consider how you can strengthen your bench by developing relationships with other professionals whose businesses dovetail into yours. What are the mutual objectives you share that create a compelling reason for you to provide cross introductions?
Share and learn. A referral source is a powerful ally due to their ability to accurately and passionately tell your story and convey what differentiates you from every other insurance agent, which can only happen when they truly understand your value proposition. The goal of developing strong referral sources isn’t to get more introductions, but rather to get the right introductions. Referral sources must understand what makes you unique, the characteristics of your perfect client and the challenges your business helps them address. For the partnership to truly blossom, you must be reciprocal in your desire to learn how you can facilitate effective introductions that help them grow their business, as well. Be accountable to each other. Measurability matters. A significant amount of time, energy and resources go into identifying, developing and managing referral sources, which means it’s important to make sure your time is well spent. Consider managing your referral sources like you manage your best clients. Develop mutual agreements focused on what you both want to achieve from the relationship. Determine how frequently you’ll meet and what your meetings will focus on. Finally, measure both the quantity and quality of the referrals you receive over a given period of time. If you’re not getting through more doors or developing important contacts as a result of your efforts, it may be time to find another referral partner. Susan Toussaint, partner and co-founder of Oceanus Partners, provides agents and brokers with strategies that help them more effectively pique the curiosity of business owners and decision-makers and lead them away from the flawed process of bidding and quoting insurance, toward a more effective client engagement strategy.
> SUSAN TOUSSAINT
Partner and Co-Founder of Oceanus Partners
wisconsin INDEPENDENT AGENT
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INSURANCE BARTENDER
WCRB EVALUATING MOVING TO SCHEDULED RATING As some of you may remember, the issue of schedule rating was proposed roughly 12 years ago. At that time, the committee was split, and the commissioner’s representative weighed in. The representative ultimately voted against using schedule rating in Wisconsin and as a result the proposal failed. On August 20, 2019 WCRB held a Governing Board Meeting in which schedule rating was again added to the agenda and discussed. IIAW Government Affairs Chairman Jeff Thiel attended the meeting on the Association’s behalf. WCRB Rating Committee has just begun to look into this issue. Several key questions need to be answered before a filing is created and voted upon. It could take up to mid-year 2020 to decide whether or not to create a filing. If the decision is yes, it could be another two quarters (end of 2020) before the filing is formally voted on. If the vote is yes, it is then submitted to OCI for review. More information on this will be provided as it is made available from WCRB. IIAW will continue to weigh in and attend future WCRB meetings on this topic.
Matt’s Mixology Incognito Ingredients Cognac - 1½ fl oz Dry Vermouth - 1½ fl oz Apricot Liqueur - 1 fl oz Angostura Bitters - 3 dash Lemon Peel - 1 twist
Steps to Make It Shake over ice and strain into a chilled glass
> Matt Banaszynski CEO of IIAW
CONGRATULATIONS TO THE IIAW EMERGING LEADERS COMMITTEE! At the 2019 IIABA Young Agents Conference in Savannah, GA the IIAW Emerging Leaders Committee was honored with the Outstanding Young Agents Meeting Award. This award was well-deserved after an impressive year of professional development and networking events committee organized by the committee. The Emerging Leaders have traditionally held an annual Leadership Conference but made the decision to offer more “micro-events” to help create opportunities for participation throughout the year and around the state. These events included a Social Selling event in Milwaukee, a Fire Safety event in Appleton and a Financial Acumen class in Eau Claire. The committee also hosted a Capstone event in Madison that included a day of brainstorming, team building and innovation. The IIAW is extremely proud of our Emerging Leaders Committee and are excited for another year of great events. First up is an Active Shooter training at the Public Safety and Training Center in Appleton on November 5th. Go to www.iiaw.com to register for this event and to learn more about the Emerging Leaders Committee.
20 OCTOBER 2019
wisconsin INDEPENDENT AGENT
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E&O Risk Management Class
Updated! 1. Attendance requirements change 2. Can’t lose premium credit due to claims 3. Three-hour class (versus six-hour class) ❍ 10% credit per year for 2 years or ❍ 15% credit per year for 2 years with 50% staff attendance *Risk management course attendance is required for application of the other credits.
We also offer free consulting to all our members! Contact Mallory Cornell for more information at mallory@iiaw.com or 608-210-2975
RISKY BUSINESS
EMPLOYEE INVOLVEMENT DURING PERIODS OF CHANGE It is a well-known fact that making changes in the workplace can be hard. Debbie Downer refuses to use the technology. Negative Ned says it doesn’t work. Perfectionist Pat is frustrated with the process. Were Debbie, Ned or Pat involved in the decision to get new technology? If the answer is no, you’re more than likely going to fall into an unsuccessful change implementation process (and probably going to lose a lot of money along the way!). Here are some quick tips, both from first-hand experience as well as Human Resources professionals, for you to utilize if you’re thinking about introducing a new workflow or tool in your agency. First and foremost, communication with employees is essential. If you’re able to involve employees early on, then you will likely have a more successful outcome. Employees feel validated and appreciated when they are asked for their opinions and when their feedback is heard. I have witnessed first-hand the environment that is created when the agency leaders make a decision without seeking input from the “do-ers”. It breeds a toxic environment and could lead to much bigger issues of employee turnover or E&O risk due to inconsistencies in employee workflows. When communicating with employees, leaders should remember to share the reasons for their decisions and should be open to listening to feedback. It doesn’t mean you have to change your mind if employees disagree, but sometimes skeptics bring up very valid points! (I formerly worked for a Fortune 200 CEO who told me to always share my ideas with the naysayers because if I only took it to the nice people who agreed with me, I would never see improvements to my work. Very good advice.) Communicate early and often. Keep employees in the loop on the stages of the project and always include what is happening and why it is happening. It is important to recognize the key stakeholders along the way. If you are implementing a new
agency management system, who are the key users of the new system? Employees need time to think about the change and accept it before they can implement and adopt. Once you’ve figured out a successful means of communicating to employees, stop and look in the mirror. Have you fully committed to the change and adopting the new workflows or technology? It is one thing to be an effective leader of change, it is another thing to adopt it yourself and create and maintain a sustainable future. If you move to a new agency management system because of enhanced reporting requirements, then it will be key to actually use the new reporting requirements and share the usage and benefit with employees. Change is never easy, but it is mandatory in order to remain competitive in today’s environment. There are solutions for insurance professionals and no tool is “one size fits all”. It is important to have a clear business plan and goal and then find the parts to help make it happen. Most importantly, leaders must remember that once they find the right solution to implement into the business it needs to be clearly communicated to employees and key stakeholders must be involved in the process. It’s time to embrace change and technology with a new collaborative attitude!
“ IN A CHRONICALLY LEAKING BOAT, ENERGY DEVOTED TO CHANGING VESSELS IS MORE PRODUCTIVE THAN ENERGY DEVOTED TO PATCHING LEAKS.” —WARREN BUFFETT > Mallory Cornell,
IIAW Vice President and Director of Risk Management wisconsin INDEPENDENT AGENT
OCTOBER 2019 23
2019 Pre-licensing Class Schedule Conducted at State Association Headquarters, IIAW pre-licensing classes fulfill the study requirements for life, health, property and casualty. Full course materials are included with registration. The classes are: • • • • •
Designed to help you pass your state licensing examination The quickest way to meet the WI education hours requirement Taught by experienced insurance professionals who know the business Conducted in a comfortable classroom with free parking Approved by the Office of the Commissioners of Insurance
REGISTER AT IIAW.COM To register, click the Education tab on IIAW.com. For WI exam info, visit Prometric.com. IIAW Member Pricing: $340 Pricing given for full class registration Non-Member Pricing $355 You may also take individual classes Contact Kim@iiaw.com for multi-registration discounts. For any other questions please contact Diana@iiaw.com.
LIFE & ACCIDENT/HEALTH
PROPERTY & CASUALTY
January 7-10 February 4-7 March 4-7 April 1-4 May 6-9 June 3-6 July 8-11 August 5-8 September 9-12 October 7-10 November 4-7 December 2-5
January 14-17 February 11-14 March 18-21 April 15-18 May 20-23 June 17-20 July 15-18 August 19-22 September 16-19 October 21-24 November 18-21 December 9-12
The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • Life & Accident/Health or Property & Casualty Insurance Study Manual • The Intermediary’s Guide to Wisconsin Insurance Law • The State of Wisconsin Ins. Licensing Candidate Handbook (This provides all the information to obtain a license)
DAILY SCHEDULE
Day 1 (Monday) 8:30 am - 4 pm ($85) Section A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 am - 4 pm ($90) Section B: Life Policies, Terms & Concepts or Section B: Property Policies, Terms & Concepts Day 3 (Wednesday) 8:30 am - 11:30 ($45) Section B: Life Policies, cont. & WI Life Insurance Law or Section B: Property Policies, cont. & WI Property Insurance Law Noon - 4 PM ($45) Section B: Accident & Health Policies, Terms & Concepts or Section B: Casualty Policies, Terms & Concepts Day 4 (Thursday) 8:30 am - 4 pm ($90) Section B: Accident & Health, cont. & WI Health Insurance Law or Section B: Casualty Policies, cont. & WI Casualty Insurance Law
CLASS SITE/DIRECTIONS
The IIAW is located at 725 John Nolen Dr. in Madison, WI. When traveling south on John Nolen, it’s the last driveway before Highway 12/18 (Beltline). Located near the Alliant Energy Center and Sheraton Hotel.
INCLEMENT WEATHER
If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public schools are closed, the IIAW is closed and pre-licensing is canceled for the day. Canceled classes are made up on Friday.
HOTEL INFORMATION
Student requiring lodging will receive a special rate at the Home2 by Hilton and Clarion Suites. Home2 by Hilton, 2153 Rimrock Rd. in Madison. Please call the hotel directly at 608.949.9650, and ask for the “Independent Insurance Agents of Wisconsin” discount. Clarion Suites, 2110 Rimrock Rd. in Madison. Please call the hotel directly at 608.284.1234, and ask for the “Independent Insurance Agents of Wisconsin” discount.
CONTINUING
EDUCATION IIAW ONLINE EDUCATION & CE CLASSES DATE
COURSE
TIME
10 14 15 15 15 16 17 21 24 28 29 29 30
Workers’ Compensation When the Child Becomes the Parent - Aging Parents and Insurance Decisions Contractors Liability Exposures ... Risk Analysis to Coverage Solutions Business Auto Coverages 4 Key Personal and Commercial Lines Exposures Every Agent Must Understand Protecting Your Most Valuable Asset Ethical Dilemmas ... Making the Right Choices Top 10 Countdown of Personal Lines Coverages & Current Issues Insuring Trusts - Protecting Your Clients Wishes Insuring Toys and Collectibles E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two An Agent’s Guide to Insuring Nonprofits
12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 2 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM
OCTOBER
NOVEMBER
04 05 12 12 13 13 14 18 19 19 20 21 25
Businessowners Policy (BOP) ... Planning for the Unexpected Condominiums Additional Insureds and Certificates of Insurance Life Insurance ... Benefits for the Living Homeowners Hot Topics ... What You Need to Know 4 Key Personal and Commercial Lines Exposures Every Agent Must Understand Unlocking the Secrets of D&O Insurance NEW! The Insured, Additional Insured vs. Named Insured Debate E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two Commercial Property Coverages Exploring Key Concepts Ethics and Agent Liability The Dirty Dozen Twelve Great Commercial Insurance Mysteries
DECEMBER
04 05 09 10 10 11 11 12 12 16 16 16 17 17 18
It’s Not My Fault, or Is It? - Liability Issues in Personal Lines Policies Fiduciary Liability, ERISA Bonding, and Employee Benefits Liability The Affordable Care Act contains significant responsibilities for benefit plan decision makers Business Income - Coverage Analysis through Claims Insuring Hobby and Small Farms Contractors Property Exposures Income After Retirement - Where Does the Money Come From? Personal Lines Checkup - What’s New and What’s Changed ... What It All Means E&O: Roadmap to Policy Analysis - Part One E&O: Roadmap to Policy Analysis - Part Two 4 Key Personal and Commercial Lines Exposures Every Agent Must Understand Commercial General Liability Coverages 4 Key Personal and Commercial Lines Exposures Every Agent Must Understand Cyber Liability Ethics and the Law Who Is An Insured
12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 10:30 AM - 12:30 PM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM
12 PM - 3 PM 12 PM - 3 PM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM 12 PM - 3 PM 9 AM - 11 AM 12 PM - 3 PM 12 PM - 2 PM 8 AM - 11 AM 12 PM - 3 PM 8 AM - 11 AM
TO REGISTER, PLEASE GO TO IIAW.COM
COMMENTARY FROM COUNSEL
Supreme Court Holds That Employers Forfeit EEOC Charge-Rule Defense If Not Timely Raised Many of your agencies and even more of your clients have no doubt had to deal with discrimination claims filed under Title VII. The usual arc of such a case is the filing of a charge with the U.S. Equal Employment Opportunities Commission (“EEOC”) and the state counterpart, the Wisconsin Equal Rights Division (“ERD”), followed later by filing the case in federal court. In fact the filing of a charge with the EEOC prior to filing a case in federal court is mandatory in most circumstances. However, the U.S. Supreme Court recently resolved a circuit split concerning when employer-defendants can seek dismissal of a Title VII suit based on the employee-plaintiff’s noncompliance with the requirement that, prior to suing, the employee identify the challenged employment practice in a charge filed with the EEOC. In Fort Bend County, Texas v. Davis, the Court that the chargefiling rule is not jurisdictional and can be forfeited, a reminder to employers to promptly assert defenses based on an employee’s failure to satisfy Title VII’s charge requirement. Title VII requires that an employee seeking redress under the Act first file a charge with the EEOC or a state or local equivalent that identifies the allegedly unlawful employment practice. The EEOC then notifies the employer of the charge, investigates, and has the first option to sue. Whether or not the EEOC acts, the employee is entitled to receive a “right-tosue” letter within 180 days of the charge’s filing, at which point the employee can proceed to court. The employee in Fort Bend County initially filed an “intake questionnaire” and then a charge with her state employment commission claiming sexual harassment and retaliation. While the charge was 26 OCTOBER 2019
wisconsin INDEPENDENT AGENT
pending, she was fired after failing to report to work so that she could attend a church event. The employee then added a religious discrimination claim to her intake questionnaire, but she did not formally amend her charge. The employee received a right-to-sue notice, and years of civil litigation followed. After a trip up to the Court of Appeals on a summary judgment ruling and remand to district court, only the religious discrimination claim remained. Only then did the employer move to dismiss for lack of jurisdiction because the employee did not include a religion claim in her charge. The district court agreed and dismissed the complaint. However, the Fifth Circuit reversed, holding that the charge-filing requirement is not jurisdictional and can be waived, thereby adopting the majority view endorsed by seven other federal Circuit Courts of Appeal. But because three other Circuits – the Fourth, Ninth, and Eleventh Circuits – had held that the chargefiling rule is jurisdictional, the Supreme Court granted certiorari to resolve the split. Writing for a unanimous Court, Justice Ginsburg held that the charge-filing requirement is not jurisdictional but rather a “claims-processing rule” designed to promote the orderly progress of litigation. Though the charge requirement is mandatory and non-compliance provides a basis for dismissal when timely raised, the defense may be forfeited. According to the Court, the charge requirement is not jurisdictional simply because it promotes Congress’s objective of allowing the EEOC the first option to bring suit on the claim. The Court also observed that employees have
4 KEY PERSONAL AND COMMERCIAL LINES EXPOSURES EVERY AGENT MUST UNDERSTAND CE WEBINARS little incentive to skirt the rule whether or not it is jurisdictional because defendants have good reason to seek early dismissal of lawsuits filed against them. Because the Court upheld the majority view that the charge-filing requirement is not jurisdictional, the Fort Bend County decision does not create a sea change in this area of law. However, the decision reaffirms that defendant employers in Wisconsin and across the country should promptly review charge filings after being sued under Title VII and not delay in seeking dismissal based on the employee’s failure to identify a challenged employment practice in the charge.
> Josh Johanningmeier IIAW General Counsel
We cover a lot of ground in this session – five topics to be exact. But when we are through, you will be better able to explain some of the new exposures, policy issues and available options. You will also be more at ease with the so-called “disruptors.” • Understanding the Ridesharing Exposures and Coverage Options • Understanding the Home Sharing Exposures and Coverage Options • Understanding the Other “Property Pimping” Exposures • Understanding the Drone Exposure and Coverage Options • Do “Disruptors” Really Affect You October 15, 2019 - 12:00-2:00 PM - 2CE November 13, 2019 - 10:30 AM-12:30 PM - 2CE December 16, 2019 - 9:00-11:00 AM - 2CE December 16, 2019 - 12:00-2:00 PM - 2CE To register for a webinar go to www.iiaw.com/events/event_list.asp
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AUTO | HOME | BUSINESS
wisconsin INDEPENDENT AGENT
OCTOBER 2019 27
VIRTUAL UNIVERSITY
WHO IS LIABLE WHEN NO ONE IS DRIVING? Opinions vary regarding the widespread availability and ultimate acceptance in the US of fully autonomous vehicles. Some foresee widespread adoption of fully autonomous vehicles within the next automotive generation” (within 13 years); others believe fully autonomous vehicles won’t be the rule” for at least two or three automotive generations (26 to 39 years). Both sides have credible arguments, but only one can be correct. Technology evolves rapidly. It is reasonable to assume that the technology capable of supporting fully autonomous vehicles will exist long before the full acceptance and use of the technology. Thus, the technology IS likely less than an automotive generation away, yet total public acceptance and full utilization of vehicle autonomy conceivably remains two or three automotive generations away. What is an Automotive Generation”? Automotive generation” is not an auto industry term; the Virtual University invented this term to describe the technological transition time from one automotive generation to the next. An automotive generation” is a function of three somewhat unrelated time spans: • The estimated automotive technology production platform timing; • The average length of car ownership; and • The sociologically-developed generational time periods (baby boomers vs. Gen X vs. millennials, etc.) Automotive Technology Production Platform This is defined as, the number of years of incremental technology changes required for the overall technological differences (advancements) between the base” year model and the most current model to be considered significant.” For instance, I purchased a Volvo XC 90 new in 2006. At the time, it had all the latest available technology. As Volvo made incremental changes to the XC 90’s technology over the next several model years, the car seemed like a technological dinosaur when I passed the vehicle to my daughter in early 2017 (and she told me so many times). Volvo’s technological changes were not significant from one model year to the next, but the cumulative effect over time was drastic. The time between initial technology and significantly different technology is the automotive technology production platform. Because this time period varies by maker and innovation, the automotive technology production platform can range from eight to 10 years. The Average Length of Car Ownership Current industry reports state that the average length of new car ownership now stands at 11.6 years. This data comes from a 2017 28 OCTOBER 2019
wisconsin INDEPENDENT AGENT
CNBC report. Generational Time Periods Sociologists developed and saddled us with the generational time periods we talk about so frequently. According to sociologists, the baby boom generation lasted 19 years, if you count the base years, (1946-1964). Generation X (my generation) joined the population between 1965 and 1980, covering 16 years (again, counting the base year). Generation Y, or the Millennials, or whatever you want to call them, were born between 1981 and 1995 (15 years). The newest generation on the block (who I hope we don’t hear nearly as much about), Generation Z, began showing their faces in 1995 and probably ended about 2010; another 16-year period. Based on this, the average generational time period is about 17 years. Average the three functional time periods and the result is approximately 12 years and 10 months. For the purposes of this article, one automotive generation” is rounded to 13 years. What Must Occur Before Full Autonomy Reigns? Traditional, human-controlled vehicles will rule the road until two key factors meet: 1) nationwide implementation and improvement of infrastructural technology; and 2) full societal acceptance of driverless technology. Infrastructure Technology As best I understand driverless technology, autonomous vehicles need data. Data from other cars, data from the surroundings, data about the conditions, lots and lots of data. Part of this data must come from the infrastructure itself. Even if cars are equipped to be and are able to operate autonomously, the infrastructure must be able to help” the vehicle accomplish its mission. If the infrastructure is lacking, the vehicle won’t perform as intended. Is every city, town, village or hamlet equipped with the necessary technology? How long will it take to equip them? The amount of time required to equip the municipalities is not just a function of the availability of the technology, it is also a function of money. Societal Acceptance Those of us who grew up watching Knight Rider dreamed of owning a car like KITT (which stood for Knight Industries Two Thousand); one that could come when we called it and drive for us when we wanted to do something else (like sleep or read). Of course, some of us also wanted a car that was bullet proof and shot flames from a flame thrower hidden in the back but I digress. But the reality is, most of us would feel more than skittish turning over full control of our car to the car. Human nature generally won’t allow such a drastic departure from tradition; this is one reason auto manufactures make incremental technological changes (back to the concept of an automotive generation). Not long ago I test drove a new vehicle equipped with auto-stop technology. As I was driving the salesman said, You’ve got to trust me on this. Set your speed and auto stop; take your foot off the gas and resist the temptation to hit the brake.” As we cruised along at nearly 60 miles per hour, we approached a line of stopped traffic. Of course, I wanted to use the brake and stop the car. The salesman said, don’t do anything.”
Guess what, the car stopped on its own. I never touched the brake. That’s just one step towards fully autonomous technology, but it’s one we humans are willing to accept - right now. What’s next? Several more incremental steps must be taken before we humans are willing to give up control of our vehicle. That takes time. How much? The answer depends on the factors defined by the automotive generation” concept. As a Gen X’er, I want to drive; in fact, I want a Mustang again so that I can really drive;” I’m not going to give up that joy. Gen Z (my kid’s generation) or the next generation (whatever they are called) may not care about the driving experience; they may not even want to drive. Fully autonomous vehicles will not dominate the roadways until infrastructural technology and social acceptance (or desire) converge. How We Get There” From Here” To move to and through the automotive generations leading to a fully autonomous society, the automotive industry must maneuver through several levels of vehicular autonomy.” Each successive level presents unique liability issues and include: • Driver-controlled with autonomous assistance: This is where vehicles are now. Modern vehicles are already equipped with and utilize autonomous assistance. Some technology provides minor assistance and other technology give primary” assistance. Examples of minor assistance technology includes technology that notifies the driver when a car is in its blind spot; lane departure warnings and audible notifications when an object is close to the car. Primary” assistance technology currently in use includes technology that slows or stops the car in an emergency and autonomous, hands-free parallel parking; • Autonomous availability of key functions: The technology already exists for this level, but such technology is generally found in only a limited number of brands or the most expensive vehicles. Autonomy of key functions includes the ability of the vehicle to drive itself on major roads and return control to the driver when navigating secondary and other streets. This level utilizes advanced acceleration and breaking technology already existing; but the vehicle itself cannot predictably or safely navigate traffic lights, stop signs, or traffic conditions. A trained driver is required. • Optional vehicle autonomy: A driver is still needed for this evolutionary level; but the majority of driving decisions are turned over to the vehicle. At this level of change, the driver may simply input the desired destination and allow the car to autonomously navigate major and some secondary roads, but only in areas with the necessary infrastructure is in place. Plus, some traffic situations and conditions are beyond the capabilities of the technology; • Infrastructural technologically-limited autonomy: Vehicles have the ability to operate on a fully autonomous basis, the only area lacking is infrastructure. At this level of transition, all new vehicle technology outperforms a human driver; however, not all roads are equipped to assist the vehicle requiring a human driver be available to take control when needed; and • Fully autonomous: This is the point when vehicle technology and infrastructure technology converge. All new vehicles have the necessary technology to operate without a driver and all roads are equipped with the necessary technology to effectively drive the vehicle. No driver is needed, just a destination. The question is, how many automotive generations are necessary to move through these five phases? Remember, the answer depends on the speed of technological development, technological installation and maybe most importantly, social acceptance. As the driver becomes less important,” the concept and assignment of legal liability may shift. But such shift may take some very interesting twists and turns.
How do You Become Legally Liable? Before addressing the changing assignments of legal liability as the US progresses towards full vehicle autonomy, legal liability’s basic concepts must be understood. We must understand how a person or entity becomes or is assigned legally liable for injury or damage. Legal liability is liability imposed by the courts on the person or entity responsible for the injury or damage suffered by another party or individual. “Legal liability” exists when: • The wrongdoer is found guilty of “Negligent Conduct;” • The injured party suffers actual damages; and • The wrongdoer’s “Negligent Conduct” is the proximate cause of the injury or damage. Does increased vehicle autonomy alter the concept of Negligent conduct”? This may be the most important question and concept in the autonomous vehicle discussion. Negligent conduct is created by the failure of the person to act or behave in the manner that a reasonably prudent person would act in the same or a similar situation. To be guilty of negligent conduct, there must be: • A duty to act or not act in a certain way; and • A breach of that duty. As the driver becomes less and less important in or necessary to the operation of the vehicle, his or her duty changes. In fact, as vehicles become more and more autonomous, duty migrates away from the driver. To whom does the duty migrate? That’s the hard question to answer. Assigning Liability During the Progression Towards Autonomy Warning, this is an oversimplification of legal liability assignment. An assumption is made in this initial discussion that the driver and/or the vehicle caused the accident and is, what the industry calls, at fault” for the injury or damage. Each level, or phase, of transition is considered: • Driver-controlled with autonomous assistance (Phase 1): The driver is still primarily in control and is responsible for using the technology to make better decisions. Because the driver is in control, legal liability is assigned to him or her. • Autonomous availability of key functions (Phase 2): The driver shares control of the vehicle - with the vehicle. However, the driver must make the decision when he should turn control over to the vehicle. In some situations, even if the vehicle is equipped for the conditions, the best decision is for the driver to take charge. If the driver failed to act as a reasonable and prudent person would in the same situation, he may be found legally liable because he didn’t take control away from the vehicle in unusual situations. But consider the possibility for an alternative decision. Might liability be placed upon the driver because she took control away from the vehicle when the vehicle may have been better equipped to address the situation? • Optional vehicle autonomy (Phase 3): At this transitional phase, it may be proven that for many, if not most, situations, the vehicle is much better able than the human to operate safely. However, there are still situations in which the human must take control, such as in locales that do not have the necessary infrastructure and in complicated driving situations. If the driver fails to take control when deemed prudent by the court, he may be held legally liable for any injury or damage because he let the car decide. And like stated above, is there a possibility that the driver could be held legally liable because he took control away from the car? But this level adds a new twist, the technology fails. If it is proven that the driver was correct in allowing the vehicle to be in control, but the car still caused an injury or damage; what then? Who is assigned liability? Is it the manufacturer? Is it the software company (if different than the manufacturer)? On the
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Virtual University continue. garage that last worked on the program? Or is it assigned back to the owner because the manufacturer, software company or other entity had her sign a contract requiring her to indemnify and hold them harmless for any injury or damage resulting from the failure of the technology? Or will the courts or government step in and protect these entities from liability? More questions than answers. • Infrastructural technologically-limited autonomy (Phase 4): The driver may be found legally liable only in those situations when the car warns him or her that they are entering an area where the technology doesn’t support the fully autonomous use of the vehicle. If the driver fails to take control, she will likely be held liable for injury or damage caused as a result. But again, what if the technology fails? and • Fully autonomous (Phase 5): A reasonable assumption is that no liability will be placed on the passenger” (as there is no driver). If, and some say this is a big IF,” the vehicle is involved in an at-fault accident, the technology is at fault. But again, who would be assigned blame? The manufacturer, the software company, the municipality (for failure to maintain the infrastructure), the high-tech garage that worked on the computer last? Or, will owners be asked to contractually protect these entities? As drivers have or take less and less control, liability may shift. Initially, driver and vehicle share responsibility for vehicle operation (with more and more responsibility moving to the vehicle as we progress through the phases). Whether the driver/owner is held legally liable or not may depend on the decisions the driver makes to give up or take control of the vehicle. Once the car/computer is in total control, who is assigned liability if/when an accident occurs remains a mystery. How many defendants might be on the stand? And how long might it take to decide who is responsible? And the last question, how long might the injured party have to wait before being indemnified? As stated, the above is a simplified scenario. A more typical scenario during these transitional phases will likely involve vehicles at different phases of this transition. Because of the concept and application of automotive generations, one vehicle may be a phase 2” vehicle and the other a phase 4” vehicle. When two levels of technology are involved, assigning liability may become more complicated. Technogeeks are guaranteed to assert that the vehicle with the highest level of technology is certainly the victim of the vehicle with the lowest level of technology. On the surface, this sounds plausible, but both phases (2” and 4”) still require human intervention, though at different points. Because humans are involved, there still exists the question of who is legally liable. Plus, the technology may fail (I just heard a disturbance in the force”). Ultimately, assigning legal liability may become more difficult and take longer. Nor an Overnight Change This transition won’t take place in the next few years; the US is still years away from fully autonomous vehicle. But between now and then, there are many unknowns none of us can answer - with certainty. These curves and forks in the road include: • Will the auto policy wording have to change and adapt? • Will the concept of legal liability related to auto accidents have to change? • Will the court system have to change? • Will government involve itself in the transition with forced upgrades of technologically older” vehicles? • Will consumers be required to enter indemnification and hold harmless agreements with the technology providers? 30 OCTOBER 2019
wisconsin INDEPENDENT AGENT
• Will municipalities find it necessary to include driverless technology as part of their cyber coverage? • Will a no-fault type system become the norm? • Will autonomous technology costs follow historical trends where early editions being extremely expensive and dropping during the multiple generations of development making tech costs negligible? • Once phase 5 is hit, how much better might technology become over the following 10, 20, or 30 years. • Will taxes increase to pay for the technological infrastructure? • Will taxes increase to recoup the lost revenue historically generated from tickets given for speeding and other moving violation? • Since the cars are constantly monitored, would there be any need for annual inspections? • Will there be on-the-street parking, or will cars just drive around until the driver is ready? Will there be a centralized parking deck that all cars travel to while awaiting the driver to summon it? • Might oil changes occur in the middle of the night while the driver is sleeping? Will this necessitate all night auto service facilities? Same with gas stations. Will cars fill up for us while we are doing something else? • Will car ownership drop? Will ours become a car-sharing society where no one owns a car, just summons the closet one to go where we need to go (Uber and Lyft on steroids)? • Will ownership become state or corporate rather than individual? If so, who is liable? If state-owned, will sovereign immunity apply? It seems we are two to three automotive generations away from full autonomy. But hold on! Twists and turns and the unknown ahead. Final Disclaimer As you may have noticed, this article’s focus is the personal auto exposure; the advancement of commercial autos was not considered. However, as Ron Berg, executive director of IIABA’s Agents Council for Technology (ACT), pointed out, commercial fleets are much further down the road to autonomy than private passenger vehicles (the fleet” of personally-owned cars). Commercial trucking, in particular, is moving much more quickly to fully autonomous fleets than any other segment. Because commercial trucking fleets are advancing more quickly towards autonomy, the phases detailed in this article will be arrived at sooner and moved through faster than detailed. One reason is that the need for technological infrastructure is more condensed. Trucking requires the necessary infrastructure between terminals only rather than the entire city or town to accomplish full autonomy. Although the time frame may be shortened (1 to 1 automotive generations rather than two or three), the same issues and questions apply to these fleets. And one other issue is created by commercial trucking’s move toward autonomy, will the workers’ compensation exposure change? Just the final question as you contemplate this transition. Last Updated: September 13, 2019 Original Publication: September 15, 2017
>C hris Boggs
Big “I” Virtual University Executive Director
ERRORS & OMISSIONS
Life Comes At You Fast
Have a plan in place when your business undergoes a transition. Without a doubt, a purchase or a sale of an insurance agency triggers additional E&O exposure. In preparing to write this article, I interviewed several successful agencies in order to learn more about the processes they employed when acquiring other agencies. These agencies all took several steps in order to help reduce their exposure to professional liability claims. First, the acquiring agency should perform due diligence before the decision is made to acquire the new book. Many agencies have a dedicated quality management team trained in this process. The agency should make sure the new business is within its “comfort zone” or area of expertise. For example, an agency that handles primarily P & C business might not be a good fit to acquire an agency that handles certain specialized lines of business, such as marine liability or equine insurance. There could be certain accounts or risks the agency does not want to assume. In turn, particular E&O exposures could be identified that the agency does not want to assume. This article is too brief to discuss all the legal aspects involved with acquiring an agency. In short, the agency should consult with its attorney and make sure the purchase agreement is satisfactory and covers who assumes responsibility for E&O exposures. Often, the purchasing agency requires the seller to maintain tail E&O coverage for a particular amount of time; regardless, these questions should be closely examined. Assuming the agency decides the acquisition is a good fit and a purchase agreement is executed, the purchaser should conduct a systematic review of the newly acquired business as soon as possible, checking such details as types of coverage and amounts. Make sure the right people – consultants and experts -- are involved in this review process. An expert can focus on the potential exposures involved. Most successful agencies have procedures and practices in place during the acquisition process. They often send letters to all their new clients, introducing themselves. These letters usually include an invitation to meet to discuss the clients’ policies and advise them to review their coverages, contact the agency with questions or request additional coverages or limits. An audit should be conducted during the transition process. There should be written procedures in place for how the audit is to be conducted. The audit will help identify potential E&O exposures and will provide an opportunity to cross sell. The plan should be detailed and should identify specific responsibilities for specific people and should include the timing of when the audit should take place. The transition plan should be closely
monitored in order to ensure it is being implemented correctly. Documentation is crucial. It is especially important that the agency ensures all policy applications and renewal applications are signed by the applicant. This practice goes a long way in proving intent, what the customer wanted for coverage. These steps should still be taken even when a family-owned agency is transitioning within a family. Prior to the time that a family member takes over the agency, the owner and successor should adopt a systematic review of the accounts so that the person who acquires the account can become familiar with the accounts. In sum, a transition in ownership can produce considerable unwanted E&O exposure. This exposure can be greatly reduced with due diligence before the transition or purchase. The purchaser should carefully examine the type of book of business to ensure it is within the agency’s comfort zone. Consult with your attorney to make sure the purchase contract sufficiently protects you and that the purchased agency has E&O tail coverage. Implementing a dedicated quality management team to review the new book and the acquired agency’s practices and procedures is crucial. Review all checklists and manuals and determine if they need to be updated. It is important to reach out as soon as possible to all new policyholders and remind them to review their policies and to contact the agency immediately with questions or changes. Implement any needed training with new staff at the earliest possible moment. As in everything, documentation is key! Brian Butcher is a vice president, claims expert with Swiss Re Corporate Solutions and teleworks out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re. This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders. Copyright © 2018, Big “I” Advantage, Inc. and Westport Insurance Corporation. All rights reserved. No part of this material may be used or reproduced in any manner without the prior written permission from Big “I” Advantage.
>B RIAN BUTCHER
Vice President, claims expert Swiss Re Corporate Solutions wisconsin INDEPENDENT AGENT
OCTOBER 2019 31
AGENCY OPERATIONS
SIX COMPONENTS OF SELF-MANAGEMENT The office environment can be a challenging place. You have to deal with all kinds of personalities at any given time, you see things that are broken but lack the resources or influence to fix them, and, often, people who don’t understand your work are there to tell you how to do it. But, we all just want to produce good results and receive acknowledgment for our effort. In an ideal world, you are in a role that plays to your strengths and motivations and limits exposure to your weaknesses, and you are partnered with a manager who serves as your advocate. In reality, you’re likely motivated by some aspects of your job and not always by others, and your manager has many other responsibilities that prevent them from being the best coach they can be to their team. In this scenario, the best you can do is do your best. And achieving your best requires a measure of self-management. Motivation is often a set factor. In other words, you can’t choose what motivates you at work any more than you can choose your height or your family members. You can’t make yourself be outgoing if you’re shy, and you can’t spark competition if trophies don’t interest you. And the external factors that can stand between you and your goals— economic upheaval, competitive threats, disruptive changes, and mergers and acquisitions—aren’t something we can always plan for. You can, however, choose how you conduct yourself. Organizations are always looking for employees who exhibit high potential and caliber for self-management. Focusing on the following six areas of self-management can help your company identify and nurture future leaders and lay a foundation for performance management and individual development.
1. Composure Under Pressure
Did you know one of the top job competencies for supervisory, sales, and customer-service positions is composure? Regardless of the power dynamic between employees and stakeholders, staying composed shows that they are in control. Staying calm earns respect, sets the tone, and increases others’ willingness to follow their lead. It’s contagious, in a good way. 4 Ways to Keep Your Cool and Remain Composed: • Remain visible – Allow your teammates to see you so they know you are in control and handling the situation. • Respond decisively – Stand behind your decisions and encourage your team to take action, but don’t hesitate to ask for help when needed. • Take accountability – Let your teammates know that you are accountable and committed to solving the issue and that you’ll do so in a timely, effective manner. • Stay positive – Enable others to regain their composure by keeping your cool. The more relaxed and calm everyone is, the better the outcome will be.
2. Self-Awareness
It’s important that employees consider the way they’re perceived 32 OCTOBER 2019
wisconsin INDEPENDENT AGENT
by the people around them. They might be perfectly good at performing their work, but if their teammates only experience their loud personal phone calls that echo through the building, oblivious comments that insult other team members, and tiresome questioning of others’ statements, it’s going to be difficult to put that person into a place of leadership. A self-aware employee monitors reactions and considers how their words and actions affect everyone else. How to be more self-aware: • Ask for honest feedback – Don’t argue with or deflect what you hear. • Take a personality assessment – Gather insights on your personality and work-specific competencies to help you understand your own proficiencies and deficiencies. • Reflect – Think back on your daily interactions and how you handled situations well or could have handled them differently.
3. Open to Change
Technology changes fast, as do consumer preferences, company processes, and market trends. It’s inevitable that companies have to revise systems, strategies, and policies. Refusing to adapt and showing resentment toward change are sure ways to be labeled as stubborn or stagnant. How to show you’re adaptable: • Ask questions – Start preparing yourself early for new changes, and help others transition as seamlessly as possible. • Update your understanding – Stay current with best practices and read up when new information comes to light. • Volunteer to be part of the solution – Is there a steering committee or a team leading the changes? Get involved!
4. Professionalism
Professionalism is about maintaining integrity when executing your responsibilities, respecting people at all levels of the organization (as well as customers and vendors), and embracing the ethics and best practices of the profession. In fact, openly expressing a personal philosophy of professionalism in a job interview can make a favorable impression on a prospective employer. How to demonstrate professionalism in the workplace: • Show up to work on time • Stay positive and redirect negativity • Offer assistance to your co-workers • Own up to your mistakes • Leave a bad mood at the door • Avoid swearing or using inappropriate language
5. Ownership of Work
No matter where they stand on the organizational chart, an employee with good self-management makes tasks their own and delivers on their promises. They accept both praise and criticism gracefully, and don’t pass the blame for setbacks or are grateful for help when working on a team. How to own your work and set an example for others: • Hold Yourself and Employees Accountable – Accountability is the belief that we have control over most situations and outcomes in our everyday lives, regardless of the situation or how fair it seems. What does true accountability look like in your team? Define this and be open to any feedback from your team. • Be in Control of Your Own Fear – Fearful of failure? Write down your concerns, and how much of that fear you have the ability to impact. Chances are you are in control of a lot of those failures because you choose your own fear. Own that fear, and it’ll help you get ahead and make you that much better of a leader. • Start with the End Goal in Mind – What is the end goal you need to accomplish? Discover it, define it, and don’t try to alter it if it hasn’t been achieved. This will help you stay on track when you start to slip, and what it might look like getting back on course.
6. A Focus on Learning
Everyone likes to be the expert and to feel confident in their skills, but if there’s a recurring theme for the 21st-century business world, it’s “change.” To stay viable and valuable, it helps to keep an open mind, look for cross-training opportunities, and show an eagerness to gather insight and expertise from the people around you. This goes for senior managers, too. New hires just out of college or trade school have been exposed to methods and philosophies you haven’t thought of. Being open to new ideas doesn’t undercut your authority—it strengthens your authority. The Caliper Precision Series and Individual Developmental Guide can help you identify and develop your self-aware employees into leaders who focus on personal growth, success, and continued learning within their teams. For more information on the ways Caliper can help you build the teams you need to accomplish your employee development goals or how to coach your teams, reach out to our experts today and get started. View Original Article- https://calipercorp.com/blog/six-componentsof-self-management/
>R icardo Roman
Director of Association Management, Caliper
PRESENT
ACTIVE SHOOTER
TRAINING This course will provide an overview on ways that your organization can detect, deter, respond and recover in the event that you are faced with such a tragedy as well as a case study from a community impacted by an active shooter event. This information can also be shared with clients and prospects to build relationships and raise awareness of this unfortunate risk. When: Tuesday, November 5, 2019 10:00 AM - 3:00 PM Lunch will be provided Where: Fox Valley Technical College Public Safety Training Center W6400 County Rd BB Appleton, WI 54914 10:00 AM - 3:00 PM Holidays Pub & Grill 1395 W American Dr Appleton, WI 54914 Networking Event 3:00 PM-5:00 PM Cost:
Free; Emerging Leader Committee Members $30 Non-Committee Members
To register for this class go to iiaw.com Thank you to our sponsor:
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Leo Plese at 630-328-7076 or lmplese@aaachicago.com today! Independent Insurance Agents are not employees of the Auto Club Insurance Association nor The Auto Club Group; but rather are independent contractors. Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company. 19-IN-0112 19-IN-0112_WI A Recruitment Ads 7.5x5_v1.indd 1
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3/12/19 2:36 PM
GOVERNMENT AFFAIRS
Wisconsin’s Split Government Slows Legislative Activity When Democrat Tony Evers defeated Republican incumbent Governor Scott Walker last November, most observers expected that split government would lead to a slowing down in the number of Republican-backed bills and priorities being signed into law. Afterall, before Evers came into power, Republicans under the leadership of Walker controlled everything under a government trifecta (Governor, Senate, and Assembly) since 2010 and could pass just about anything they collectively agreed upon. Since Evers’ election, stateside Democrats have been able to secure a goalie to block GOP bills and initiatives they oppose, much like Jim Craig was to the 1980 U.S. Olympic hockey team that miraculously upended the Russians. At the start of 2019, and up until the end of June, Democrats led by Governor Evers and Republican legislative leaders of both Houses were off to a bustling start with delivering, negotiating, and ultimately, successfully passing a two-year state budget bill on time - something that no one on either side predicted would happen. Now I’m not suggesting there’s a political cold war in Wisconsin, but since enactment of the budget, no one could have predicted the current level of legislative inaction seen today. In almost 25 years of working in and around Wisconsin state government, I have not experienced this limited amount of legislative activity in all of my career. When I talk to my colleagues, some of whom have been doing this a lot longer than I, they too acknowledge that they do not recall a time quite like this. Split government is not something unique to our state. It’s not to say legislative inaction is negative or positive - sometimes less is more, especially when it comes to legislating. However, it is an interesting case study as to how the outcome of a single statewide election can dramatically alter an entire two-year legislative cycle. One example to demonstrate this point is a quick review of the legislative session archives from the past 10 years and to compare the number of proposals enacted into law to the current session. To date, there have been an underwhelming 18 bills enacted and signed into law by Governor Evers. By comparison, the average number of bills signed into law over the past previous five sessions is 367. The current session is at an astonishingly low 4.9 percent of the average number of bills typically signed into law every session. Also, keep in mind that the current 2019-2020 session is more than halfway over and that the Legislature is only scheduled to convene a handful more times between now and March 2020. Also important to note, the Senate has already announced that they are only scheduled to meet one day in October and one day in November for the remainder of the year. Generally, the amount of legislation introduced this year has been cut in half. Senate and Assembly floor votes
are dramatically fewer and legislative committee hearings scheduled are substantially less, with maybe the exception of this month. Governor Evers has yet to have a single appointed cabinet member approved by the Senate, although it is anticipated that most, if not all, cabinet appointees will be approved in October. During the summer months following the budget’s passage, it was so quiet that one could hear a pin drop in the rotunda of the State Capitol. Not even the Solidarity Singers from the protest days of Act 10 have been seen. This is all attributed to the fact that Republicans in the Legislature understand that many of their priorities won’t get past Governor Evers, as the Democrats’ goalie who shares a much different view on priorities for the state. The positive news is that both sides are forced to work together and focus on areas of common interest rather than on a single party’s agenda for the next election. Meanwhile, major unanticipated political announcements in a time span of one week recently grabbed headlines both locally and nationally. Two well-known members of Wisconsin’s congressional delegation announced that they both will be leaving public office. U.S. Representative Sean Duffy (R) of the 7th District announced his resignation effective September 23, 2019, citing health problems with a baby who he and his wife, Rachel Campos Duffy, are expecting in October. Duffy was first elected to Congress in 2010 and was rumored to be a top Republican contender for Governor in 2022. His abrupt resignation came as a surprise to everyone in the political establishment and Governor Evers has now called for a special election to be held on January 27, 2020. U.S. Representative Jim Sensenbrenner (R) of the 5th District announced that he would not seek re-election to another term next year. Sensenbrenner is set to be Wisconsin’s longest serving member of Congress next year, surpassing former Congressman David Obey, with a total of 40 years in the U.S. House of Representatives. Sensenbrenner’s retirement comes as less of a shock to the establishment, but opens up a competitive Republican primary contest with numerous potential candidates in this heavily conservative district. The year 2020 will be interesting and active politically, but legislatively, don’t expect too much in Wisconsin.
> Misha Lee IIAW Lobbyist
wisconsin INDEPENDENT AGENT
OCTOBER 2019 35
BOUTIQUE. INTENTIONAL. RELATIONSHIPS. It’s the meaningful relationships and investment in innovative solutions that make it easy for agents to do business with us.
Come grow with us: Contact Sales Director Cathy Colón at 920.968.9326 or ccolon@imico.com
ASK AN EXPERT
?
VIRTUAL UNIVERSITY
Q: College Student Coverage on Parental Policies I was under the impression that regardless the type of college the student is attending they would still have some coverage from a parent’s policy. To determine if they were still considered a resident, one question we asked is “do the parents still claim them as an exemption on their taxes?” Not the same as extending the Health insurance to age of 26 but if they take them as a deduction on federal taxes, they would still be considered covered unless they specifically “excluded” them as drivers. This is also why the carriers give an away at school discount and good student discount.
A: Tax status of the student is irrelevant; it’s residency that matters. The PAP and the HO both extend protection to a family member or resident relative (depending on the form). The requirement is that the person be a family member related to the named insured by blood, marriage or adoption (including ward and foster child) who is a resident of the named insured’s household. Residency means that is where they live and where the post office and state think they live (in general terms). It doesn’t matter if you take them off on your taxes as a dependent or not. --------The consensus of case law I’ve seen is that kids at college are usually still household residents of their parents. The points your raise are good ones and support that interpretation. But be sure the carrier’s claims department is on board. --------First, being considered a dependent on their parent’s tax returns has no bearing on insurance coverage. There is no requirement that if the IRS gives the parents a credit on their tax return that our contracts must consider related dependents, students or otherwise, residences of the household. Our policies require that they are residents and whether they are depends on what the HO policy says and the actual circumstances of residency. Starting in 2000, ISO added a paragraph regarding students living away from home at school. There are several coverage triggers that apply before coverage
applies while the student is away from home attending school. This change in the “insured” definition has limited coverage for students if they are were not a member of the household before moving out to attend school, also during any semester they are not in school full-time as defined by the school they are not considered an insured and finally once they reach the age of 24 they are no longer considered an insured.. ISO also introduced an AI endorsement that can be used to fill some of the gaps in coverage due to this change I would check any HO policy to determine if it is a 2000, 2001 or 2011 edition date. In addition, regardless of the change in the insured definition there is also the specific circumstance of the living arrangements of the student. If they live away from home and, for example, do not return during breaks or holidays, or open bank accounts where they are attending school, or rent apartments for periods of time beyond the school term, or register cars and get driver’s licenses in the state they are attending school, etc. raises questions regarding their actually residency and would effect coverage based on these issues. --------Being a tax dependent is a strong indication that a college student is still a resident of their parent’s household. But, there are a lot of other factors courts will look at including how much financial support is provided, what the student’s permanent address is, whether they’re still unmarried.
wisconsin INDEPENDENT AGENT
OCTOBER 2019 37
INTERNET OF INSURANCETM
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TECHNOLOGY
3 Ways Automation Can Make Your Agency More Efficient More than a decade ago, insurance agencies began moving away from the resource that had been a cornerstone of the industry for centuries: Paper.
auto-reminder will take care of the rest. You can also automate marketing messages with drip campaigns through an email marketing automation platform.
Agencies suddenly found that going digital could make them both better at their jobs and more efficient. But today, there are still many tasks for which agencies struggle to find adequate technological solutions.
Recently, chatbots have been gaining popularity with insurance agencies and are regarded as a great automation tool to put to use on your website or social media accounts. For example, when a customer visits your website or Facebook page, a chatbot can be programmed to pop up and ask if it can offer assistance. Chatbots can also be programmed to set up appointments or answer frequently asked questions about policies or coverage.
Here are three examples of how automation can make your agency’s operations more efficient, while also impressing your clients:
1) Reduce keystrokes. Manual data entry is a pain for
both agents and clients. For the agent, constantly reentering information wastes time that could be spent on nurturing relationships. For the client, not only is it frustrating and timeconsuming, but it also creates room for costly human error. To put it into perspective, let’s say you have to repeatedly input a client’s name into an insurance form. If their name is John Williams, that’s thirteen keystrokes. If you’re filling out ten forms, that’s 130 keystrokes for the client’s name alone. Automatic mapping of fields means that if the insured types their information into one form, their answers automatically populate on all other forms with the same or similar questions. This saves the insured a significant amount of time and effort because they never have to answer the same question twice. Additionally, at renewal time, automatic mapping ensures that a client’s answers from the previous year are transferred to the renewal form. Therefore, the insured only has to verify the information, which greatly improves the client experience.
2) Connect automation with the human touch.
3) Digitize forms. “Well, I already use digital PDFs,” you
may be thinking. Unfortunately, PDFs don’t qualify as automated digital documents. While they are better than filling out forms by hand, PDFs do not allow answers to auto-populate and they are not easily edited. Digitizing common forms speeds up processes and improves accuracy. For example, certain sections of a form may not apply to the client. Rather than confusing the client, you can hide specific questions so they only fill out what’s required. Additionally, with conditional questions, automated forms ensure that the insured only sees a certain question if they answered the previous question with “yes” or a specific answer. After a smart form has been completed, e-signatures give the insured the option to sign electronically and avoid them having to print, sign and scan. E-signature capability also means insureds no longer have to pass documents around in person or via email to get multiple signatures. This process can sometimes take a week or more, especially if the document is being passed around by hand or delivered in the mail.
Automating communication is a great way for agents to save themselves time. However, it’s a balancing act. While three-quarters of customers want more human interaction, according to the PwC Future of Customer Experience Survey, carefully choosing which communication touchpoints to automate is essential.
A strong automation strategy can help agencies implement technology with minimum disruption. Agencies can start by looking at existing processes, picking out the most timeconsuming and labor-intensive ones, and then identifying the best software to automate those processes.
Reminding the insured to complete a form, sending a renewal reminder or answering commonly asked questions are definitely tasks that benefit from automation. However, calling a client about policy coverage, engaging with social media posts or emailing specific policy advice are tasks that still require human interaction.
Maximize results while minimizing both costs and effort with automation. Not only will you be able to quickly get complete and accurate information to your insured, but you’ll also be one step closer to reducing internal operational inefficiencies.
One way to expedite the application and renewal process is to send auto-reminders. Simply schedule a date and time and the
> Ken Wohl Head of Marketing Indio Technologies wisconsin INDEPENDENT AGENT
OCTOBER 2019 39
News Members in the
BIG MOVES AT THE WISCONSIN MEDICAL SOCIETY Financial and Insurance Advisory Arm Rebrands, Finds New Home, and Launches New Web Site
One of the significant initiatives WisMed Assure has launched is the Physicians’ Decision Matrix; a collective wisdomsharing catalogue of every important decision physicians makes during their career—from medical school through retirement. Society members are sharing their experience and insights they gained while making each of these decisions. By discussing the risks, rewards and variable conditions to be considered, health care community members will be better equipped to make the best financial decisions possible. “We know that with greater financial security comes greater freedom and power to deliver the best care possible,” Bertalot says. “Just as importantly, it makes it possible for members of the health care community to experience a lifetime of joy in caring for others. And, it gives them the opportunity to capitalize on all their business and career opportunities.” • •
•
[Madison, WI, August 22, 2019] – It’s more than just positioning. It’s a refocusing on empowering the vital role physicians play in protecting and improving the health of the people of Wisconsin. We know physicians can’t do it alone. That’s why Wisconsin Medical Society Insurance and Financial Services, Inc. is aggressively pursuing the goal of becoming the physician’s financial partner for life. “We are here, now as WisMed Assure, because when physicians and other health care providers are worried about their current and future financial security, it makes it more difficult for them to protect the lives of their patients and their own lives,” says WisMed Assure president, Shawna Bertalot. The new name, WisMed Assure, is just the first of many steps being taken to increase awareness and engagement with physicians, residents, and medical students. In addition to the new name, WisMed Assure has moved into a new, highly functional set of offices and launched a new web site at wismedassure.org. “These steps are part of a long-term strategy to enhance our ability to anticipate the impact of – and respond to – a challenging and constantly changing financial environment,” Bertalot says. “We are helping physicians and other members of the health care community stay ahead of the game.” Looking forward, WisMed Assure is launching an online newsletter called The Antidote and leaning more heavily on social media. Our core focus is on education, collaboration and bringing people more closely together. Our editorial mission is to deliver content that is timely and relevant to protecting and improving the health care community’s personal and professional financial security.
For more information contact Hannah Downs. WisMed Assure leadership personnel are available for comment on any financial, legislative and/or legal issue impacting the financial well-being of the Wisconsin health care community. Part 1 of a 3-part article titled “History Repeats Itself: Medical Liability Insurance Premiums on the Rise” by Shawna Bertalot, CIC, ACI, President WisMed Assure, is now available. Click here for access.
INSURANCE BROKER BURNS & WILCOX EXPANDS, RELOCATES IN CHICAGO September 19, 2019 - Wholesale insurance broker and underwriting manager, Burns & Wilcox, has relocated and expanded its office in downtown Chicago. The new office, which houses Burns & Wilcox and Burns & Wilcox Brokerage, is located downtown at 111 S. Wacker. Burns & Wilcox parent company H.W. Kaufman Group and its network of companies, including Stonemark, will also utilize the space, delivering seamless access to broader resources. The Burns & Wilcox Chicago office has grown from 15 employees to 60 in the past five years, according to Danny Kaufman, executive vice president, H.W. Kaufman Group, and chief operating officer, Burns & Wilcox. Burns & Wilcox has operated in Chicago for approximately 40 years. Designed to accommodate the commuter community and offer more than the standard, essential amenities to the workforce, the Chicago office is within one block walking distance from Union Station, various ‘L’ stops and other public transit options. Associates also have access to many of the building’s amenities such as free membership to its Fitness Formula Club and wellness and mother rooms, among others. The office relocation is effective immediately.
40 OCTOBER 2019
wisconsin INDEPENDENT AGENT
NEW CE WEBINAR The Insured, Additional Insured vs Named Insured Debate 3 CE credits Date: Monday, November 18 Time: 12PM – 3PM The individuals and entities who are afforded protection under a commercial liability policy are to be divided into three general groups: Insured, Additional Insured, or Named Insureds. The decision of whom to name on the policies declaration page is one of the most significant factors that determines the extent of protection for each insured. Discover how factors such as ownership (sole proprietorship, limited liability company, trust, corporation, partnership, etc.), products sold or work performed (service, retail, manufacturing clients), and even an insured’s business, growth and perpetuation plans can influence the named insured description. Sign up today at www.iiaw.com/events/event_list.asp
to Commercial Insurance that understands the Bar & Tavern Industry At Badger Mutual, we take commercial insurance personally. Visit our website today to learn more about a customized package of protection for your customers.
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WORKERS’ COMP FOR WORKING PEOPLE
Strong and steady, constantly raising the bar. All great accomplishments have a certain level of hazard involved, but AMERISAFE has workers’ comp down to the detail. It’s a large part of why we retain 90%* of our policyholders. The best protection is being proactive.
*Policyholder retention rate based on voluntary business that we elected for renewal quote: 93.6% in 2018. © 2019 AMERISAFE, Inc. AMERISAFE is a registered trademark of AMERISAFE, Inc. SAFE ABOVE ALL and the AMERISAFE LOGO are trademarks of AMERISAFE, Inc. All rights reserved.
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OCTOBER 2019 41
FOOD FOR THOUGHT
DID YOU KNOW?!? Almost 1/3 of all Americans live within a 500 mile radius of Wisconsin The first ice cream sundae was concocted in Two Rivers, WI in 1881.
Sheboygan is the “Bratwurst Capital” of the world.
The Fox River is one of the few rivers in the nation that flows north.
https://www.wisconsinhistory.org/Records/Article/CS2906
JOIN US, a WI Based Top 100 Agency
Are you or your agency ready for a positive change? Robertson Ryan has been offering innovation through our unique Agent Owner structure since inception in 1960. Time and time again after an agent or agency joins us they say, “We wish we did this years ago.” Our team recognizes the strength and power behind the agent and insured relationships so we’ve built, and continue to fine-tune, a support network rewarding those affiliated with RRA. Find more at, www.RobertsonRyan.com/AgentOwner ...and let’s connect. Call or email me 414.221.0363 or cillman@robertsonryan.com. I look forward to answering your questions!
Chris Illman, CEO
www.RobertsonRyan.com
We help people feel secure and make life better when bad things happen
Partners Mutual Insurance is proud of the rich history we have enjoyed since our founding in 1931. So, when we affiliated with Penn National Insurance, a super regional carrier in 2012, we set out to accomplish even more. Together we bring the personal attention and local focus of a regional carrier, along with the products and services of national carriers. We want to partner with the best agents and are appointing select top-performing agencies in Wisconsin. Interested in partnering with a thriving insurance carrier with superior customer experience? Contact Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com Or visit our website at partnersmutual.com
We help people feel secure and make life better when bad things happen
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• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably • Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans • State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs • Local, experienced underwriting, claims and management staff
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An original farm boy Meet Curt, one of our Farm-Ag experts. He and others on his team were farm kids themselves, so they’ve got firsthand, practical knowledge about a farmer’s insurance needs. It’s the born-and-raised kind of expertise we look for in a team. And they’re supported by our caring claims group so your clients can get back to the work at hand, just like they’ve done for generations.
SECURA Farm-Ag. It’s how you grow. secura.net/farm-ag
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