August 22, 2013 In this Issue ...

Comp. Corner: 1 • BureauIssuesBulletin on TRIPRA

IIABANews: 1 - 2 • TrustedChoice®AdDebuts onTheWeatherChannel • TrustedChoice®Raises MoneyforMake-A-Wish

DOINews 2 • DOIProposesChangesto StandardsofFaultReg. E&OUpdate: • Wouldn‘titbeNiceto 3 Have“Mulligans“

PersonalAutoNews:4 - 8 •The Lates Scoop on Personal Auto Filings

ThanksCompany 8 Partners Update Your 9 - 10 AgencyProfile

Comp. Corner:

BureauIssuesBulletinonPendingLawChangetoTerrorismRiskInsuranceProgramReauthorizationActof2007(TRIPRA)

The Workers‘ Compensation Rating and Inspection Bureau has issued Circular Letter No. 2222 announcing that the Division of Insurance has approved two endorsements to notify policyholders of the impending expiration of TRIPRA on December 31, 2014 and that, if it expires or is extended, a premium charge for losses that may occur in the event of certain acts of terrorism may either continue to apply or change from the amount currently charged.• Residual Market carriers must use the Massachusetts Notification

Endorsement of Pending Law Change to Terrorism Risk Insurance Progream Reauthorization Act of 2007 (WC 20 01 02) for policies issued through the Pool.

• Voluntary market carriers who previously issued NCCI’s Terrorism Risk Insurance Program Reauthorization Act Disclosure Endorsement (WC 00 04 22A) should now issue NCCI’s Notification Endorsement of Pending Law Change to Terrorism Risk Insurance Program Reauthorization Act of 2007 (WC 00 01 14).

• Voluntary market carriers who previously issued the Massachusetts Terrorism Risk Insurance Program Reauthorization Act Endorsement (WC 20 01 01) should now issue the Massachusetts Notification Endorsement of Pending Law Change to Terrorism Risk Insurance Program Reauthorization Act of 2007 (WC 20 01 02).

The complete bulletin including copies of the new endorsements may be viewed or printed by clicking here.

IIABANews:TrustedChoice®AdDebutsonTheWeatherChannel...

Jersey Shore pizza man tells how his Trusted Choice® agent helped him recover after Hurricane Sandy

A Trusted Choice® media buy on The Weather Channel is airing with a new ad highlighting a Long Beach Island, N.J. small business man whose pizza restaurants were destroyed and damaged by Hurricane Sandy. Joe Rulli praises his Trusted Choice® independent insurance agent for the excellent customer service that allowed him to reopen in time for the summer tourist season.

“Consumers like Joe Rulli count on their Trusted Choice® agents to be there at the most difficult times,” says Robert Rusbuldt, Trusted Choice® president and Independent Insurance Agents & Brokers of America president & CEO. “The Weather Channel is the perfect outlet to demonstrate how dangerous

(continued on page 2)

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IIABANews... continued from page 1

and temperamental Mother Nature can be and the importance of making sure your family, business and home have the proper protection and plans in place.”

To view the 30 second ad, click HERE visit. A longer web ad is also being distributed on social media and other online outlets. Click HERE to view that piece.

“This ad spotlights just one of countless cases where Trusted Choice® agents show their commitment to their clients and living by the Trusted Choice® ‘Pledge of Performance’,” continued Rusbuldt.

The new ad is part of a series of real-life customer testimonials produced by Trusted Choice® over the last two years.

TrustedChoice®RaisesMoneyforMake-A-Wish®withSocialMediaCampaign...

Trusted Choice®, the consumer branding program for independent insurance agents and brokers, is proud to announce the third annual summer social media campaign to raise money for Make-A-Wish®. For every “share” from the Trusted Choice® Facebook page (www.facebook.com/TrustedChoice) during the month of August, Trusted Choice® will donate $10 to Make-A-Wish.

“Trusted Choice® is excited and proud to once again use social media in such a positive way to raise money and awareness for Make-A-Wish,” says Dave Evans, Trusted Choice® executive director. “We are pleased to have sponsored wishes for more than 21 children with life-threatening medical conditions since our first social media campaign in 2011. In addition, Trusted Choice® will have sponsored 70 grants through a $525,000 local sponsorship initiative before year’s end. Independent insurance agents and brokers have a strong track record of active participation and charitable giving in their communities and this annual project is an important opportunity for all of us to join forces for a very worthy, national campaign.”

Trusted Choice® is committed to donating a minimum of $100,000 and a maximum of $150,000 with this campaign. This is the third year Trusted Choice® has held a social media campaign to benefit Make-A-Wish. The social media campaigns have raised more than $320,000 and the grant activity an additional $525,000. Collectively, Trusted Choice® has raised more than $845,000 for Make-A-Wish since 2011.

“We are pleased to continue our partnership with our adopted charitable organization, Make-A-Wish,” says Robert Rusbuldt, Trusted Choice® president and Big “I” president & CEO. “Independent agents are there to instill confidence and hope in their clients and customers, and that’s what Make-A-Wish does. Make-A-Wish is there for wish kids and their families in their greatest time of need, just like Trusted Choice® independent insurance agents.”

Make-A-Wish grants the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy. According to a 2011 U.S. study of wish impact, most health professionals surveyed believe a wish-come-true can have positive impacts on the health of children. Kids say wishes give them renewed strength to fight their illnesses, and their parents say these experiences help strengthen the entire family. Based in Phoenix, Make-A-Wish is one of the world’s leading children’s charities, serving children in every community in the United States and its territories. With the help of generous donors and more than 25,000 volunteers, Make-A-Wish grants a wish somewhere in the country every 38 minutes. It has granted more than 226,000 wishes since its inception in 1980; nearly 14,000 in 2012 alone. Visit Make-A-Wishatwish.org and discover how you can share the power of a wish®.

DOINews:

DivisionofInsuranceProposesChangestoStandardsofFaultRegulation...

The Division of Insurance (DOI) has proposed amendments to the “Standards of Fault to be Used by the Board of Appeal on Motor Vehicle Liability Policies and Bonds and Insurers in Determining the Application of Surcharges in Accordance with M.G.L. c. 175, § 113P.“ A hearing on the proposed changes will be held on September 20, 2013 at 10 a.m. at the DOI, 1000 Washington Street, Boston, MA 02118-6200.

The regulation is being amended to remove reference to the Safe Driver Insurance Plan because the plan does not apply in a competitive private passenger motor vehicle insurance market such as we have now.

The amendments proposed to the regulation are intended to make clear that the standards of fault apply in both a competitive and fixed-and-established private passenger auto market.

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E&OUpdate:Wouldn‘titbeNicetoHave“Mulligans“ inE&O?

by Curtis M. Pearsall, CPCU, AIAF, CPIA President – Pearsall Associates, Inc

and Special Consultant to the Utica National E&O Program

In the world of golf, the subject of “mulligans” often comes up before a group starts to play. A mulligan is a “do-over.” If a golfer hits a bad shot, he or she can call a mulligan and hit the shot over. The premise is that the second shot will be better than the first, and the first shot won’t count.

Wouldn’t it be nice to have mulligans in errors and omissions? After an E&O claim is made, the producer or customer service representative could get a mulligan – a “do-over” – to fix things, say, if there is no documentation or the documentation is not at the level it should be. If a producer misspoke as to how coverage would apply, he or she could go back, correct themselves and all would be forgiven. This would result in fewer E&O claims and fewer dollars paid out on those claims made.

AClaimExampleThe following claim scenario took place a number of years ago:

A bar owner did not have liability insurance, but was required by a new landlord to secure GL coverage. The bar owner spoke with one of the bar’s patrons, who happened to be a customer service representative at a local agency. The CSR indicated that the agency would provide the bar owner with a proposal. The proposal was provided and coverage was purchased. There was no documentation in the agency file/ management system as to the exact nature and content of the discussion.

After a big party at the bar, a patron hit a car, killing the driver, who was president of the senior class at the local high school. When the bar owner was served with a lawsuit, it was brought to the agency. During a discussion with the agency, the bar owner was advised that the policy did not cover liquor liability claims. The bar owner then filed suit against the agency.

During the trial, the CSR admitted, “I can’t document everything. If I did, I would never get any work done.” She testified that she personally delivered the policy when she stopped one night on her way home to have a couple of beers. She said she explained to the bar owner about the protection afforded by the GL policy and that liquor liability claims would not be covered. The producer claimed to have explained this, too. Again, there were no notes in the system

reflecting the personal delivery of the policy or the discussion that subsequently developed.

In turn, the bar owner testified that: 1) he was not a sophisticated insurance buyer and 2) he definitely would have bought coverage for liquor liability had he known that the GL policy did not provide it. His comments were something to the effect of, “I have a bar, so why wouldn’t I buy coverage for liquor claims?”

ItIsWhatItIsIn all probability, the bar owner knew he did not have coverage for liquor claims, but with nothing documented, the legal system found the agent liable and a settlement was reached.

Do you think the producer and CSR wish they had a couple of mulligans to fix some areas after the claim was made against them? Without a doubt – but that’s not the way it works. When an E&O claim is made against an agency, the file “is what it is.” While it is acceptable for an agent to organize the file, at no time should an agent add or delete anything from it. No “do-overs!”

So what does this essentially mean? It means that when agency staff – producers, customer service representatives, accounting folks, receptionist, etc.- performs a particular task, if that task should be documented, it gets documented. Imagine the impact on the judge and the jury when the CSR in the above claim admitted she did not document the discussion and that there were other files and discussions that weren’t documented.

Clearly, the odds of an agency prevailing in an E&O matter are strengthened when documentation in the file is handled promptly, professionally and accurately. The odds are also enhanced significantly when the file reflects documentation back to the customer, memorializing the various conversations and decisions.

Agencies and their staff must be extremely serious about this and make every effort to have a culture and commitment that tolerates nothing but the best. Using an audit process is a great vehicle for ensuring that agency expectations are met because, in the world of agents’ E&O, unfortunately, there are no mulligans.

For more informationabout the Utica Mutual E&O Programs, contact our E&O Department at Number One Insurance Agency at 800.742.6363 or 508.634.2900 or email Ellen estoppel@massagent.com or Michelle mstangelo@massagent.com.Ellen

StoppelMichelleSt. Angelo

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Company EffectiveDate Impact BriefDescriptionAIB 129110330

08/01/13 N/A • VRG Program Update

AmericanBankersofFL128642986

04/01/13 N/A Clarified Age of Vehicles for Program:• 1987 and Older (in lieu of 25+ years)• 1988 thru 1992 (in lieu of 20-24 years) and• 1993 and Newer (in lieu of 15-19 years)

AmericanModernSelect 127016065

11/15/11 N/A Classic Car FilingForms/Rates/RulesForms:• ISO Personal Auto Policy revised for this program and now called

Agreement• Collector Vehicle Policy Declarations Page (CV 9008 02/09)• Collector Vehicle Policy (CV 00 01 03 11)• Loss Payable Clause (PV 03 05 03 11)• Single Liability Limit (PV 03 09 03 11)• Single Uninsured Motorists Limit (PV 04 01 03 11)• Single Underinsured Motorists Limit (PV 04 02 03 11)MA Specific Forms/Endorsements• Named Driver Exclusion Endorsement—Massachusetts (CV 13 31

03 11)• Personal Injury Protection Coverage—Massachusetts (CV 05 75 03

11)• Underinsured Motorists Coverage—Massachusetts (CV 14 18 03

11)• Uninsured Motorists Coverage—Massachusetts (CV 14 19 03 11)• Broadened Collision Coverage—Massachusetts (CV 13 08 03 11)• Limited Collision Coverage—Massachusetts (CV 13 30 03 11)• Compulsory Motor Vehicle Liability Coverage—

Massachusetts (CV 13 14 03 11)• Amendment of Policy Provisions—Massachusetts (CV 01 48 03 11)• Massachusetts Collector Vehicle Application (CV AP 01 02 09)Endorsements:• Additional Insured—Lessor (CV 03 19 03 11)• Collector Vehicle Collector’s Coverage (CV 93 01 03 11)• Collector Vehicle Collector’s Coverage (CV 93 A1 03 11)• Collector Vehicle Occasional Commuting Endorsement (CV 93 05

03 11)• Collector Vehicle Nationwide Roadside Assistance Coverage (CV 93

06 03 11)• Collector Vehicle Business Client Endorsement (CV BC 01 03 11)• Collector Vehicle Business Client Schedule (CV BC A1 02 09)• Collector Vehicle Carport Storage Endorsement (CV CP 01 03 11)• Collector Vehicle Foreign Coverage Endorsement (CV FC 01 03 11)• Collector Vehicle Foreign Coverage Schedule (CV FC A1 03 11)• Collector Vehicle Motorcycle Endorsement (CV MC 02 03 11)• Collector Vehicle Mileage Plan Endorsement (CV MP 01 03 11)• Collector Vehicle Race Vehicle Endorsement (CV RC 01 03 11)• Collector Vehicle Select Endorsement (CV LW 09 03 11)• Collector Vehicle Renewal Underwriting Endorsement (CV RU 01

03 11)• Collector Vehicle Renewal Underwriting Form (CV RU A1 02 09)• Collector Vehicle Renewal Underwriting Form—Vehicle Schedule

(CV RU V1 02 09)• Collectible Vehicle Floater Driver Exclusion Endorsement (CV 90 52

03 11)• Liability Coverage Exclusion Endorsement (PP 03 26 06 94)

129000199 08/13/13 New09/16/13 Renew

N/A Forms:• Amendment of Policy Provisions – Massachusetts CV 01 48 05 13• Personal Injury Protection Coverage – Massachusetts CV 05 75 04

12• Collector Vehicle Policy – CV 00 01 03 11

PersonalAutoNews:LatestScooponPersonalAutoFilings...Here is more nformation on private passenger auto insurance filings placed on file with the Division of Insurance:

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Company EffectiveDate Impact BriefDescriptionAmericanModernHome128685353

11/20/12 N/A Forms & Endorsements• MA Rider Choice Program Application

128628834 11/20/12 N/A Forms & Endorsements• MA Collector Vehicle Application

127068841 11/16/11 N/A Payment Plan

AMICA 129045745

11/01/13 N/A Forms:• MA Auto Policy• Coverage Selections Page• Added the Advanced Driver Training and Clean in Six

Discounts to forms

Arbella 128925424129056653129060017129060742129066366129070676129084906129100763

03/25/1306/24/1306/26/1306/27/1307/02/1307/03/1307/12/1307/23/13

N/A Multiple Group Filings

Arbella129061393

11/01/13 +3.6% Rates• Supplemental Application• Misc. Rating Page• City of Boston CodesRules:• Rule 36. Snowplow• Rule 37. Customer Care Package• Rule 38. Pet Lover’s• Rule 59. Personal Property Package Endorsement• Rule 60. Auto Loan/Lease GAP Coverage

BankersStandard129103242

09/20/13 New11/20/13 Renewal

+26.2% Miscellaneous Rules:• Uninsured Motorists/Underinsured Motorists• Increased Limits - Liability, Medical Payments• Operator Class• Base Rates/Rating Factors Table• Limit Factors• Model Year Rating

CAR/MAIP129028398

10/01/13 +3.0% Complete Manual of Rules and Rates

129028600 10/01/13 +19.0% Motorcycle Rates

Commerce129107742128856929

08/01/1308/01/13

N/AGroupsInstallment Plan

Encompass128898293

03/26/13 N/A Groups

128995885 08/01/13 +6.0% • Territory Base Rates/Relativities• Auto Rating Tier Factors• Motorcycle Rates• Model Yar Factors• Editorial Change to TOCRule 19. Discounts - Annual Mileage, Multi-Car, Multi-Policy, Property Insurance Policy, Future Effective Date, New Car

PersonalAutoNews:LatestScooponPersonalAutoFilings...Here is more nformation on private passenger auto insurance filings placed on file with the Division of Insurance:

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PersonalAutoNews:LatestScooponPersonalAutoFilings...Here is more nformation on private passenger auto insurance filings placed on file with the Division of Insurance:

Company EffectiveDate Impact BriefDescriptionEsurance128811081128813190

0716/1307/16/13

N/A •Payment PlanGroup

128770845 07/16/13 N/A Complete Manual of Rules/Forms/Rates• offers 6 and 12 mo. policy term• all policies written online -- no agent on the ground in MA• private passenger auto means a four-wheel passenger

vehicle including cars, vans and utility vehicles owned or leased by the named insured or a resident relative ...

• all cancellations are pro-rata• no out-of-state principal garaging except for students away

at school• a charge is applied to the policy when the mailing zip code

differs from the garaging zip code• core discounts includes paid in full, residential policy, multi-

vehicles• other discounts include: time at residence, future effective

date, paypal, group marketing, fast 5, switch and save, claim free, on-time payment, emergency roadside service, drivesense (device) discount, preferred customer

Driving Record Points:• chargeable period is 36 months• chargeable date is the occurrence date• same day offenses - use incident with highest point value

charge for accidents or violations occurring while a driver is operating, occupying, or associated with a private passenger auto, commercial vehicle, motorcycle or recreational vehicle

• if two or more violations or accidents occur on the same day, apply one the violation or accident with the highest point value

Source of Points:• charge for accidents or violations occurring while driver is

operating, occupying, or associated with a private passenger auto, commercial vehicle, motorcycle or recreational vehicle

Chargeable Accidents:• At-fault accident above the $500 threshold noted on the

MVR, CLUE report or applications are chargeable unless the applicant can provide verification that the accidents are non-chargeable. Accidents involving hitting another vehicle or object as a result of swerving to avoid an animal are chargeable. At-fault accidents caused by a permissive user while operating a listed vehicle will be included in the points used to determine future premiums for the named insured. If this permissive user is added to the policy, the at-fault accident will not be included in the points used to determine the premium for the named insured and will be used to determine the points for the newly added driver. If the newly added driver is removed or excluded from the policy within 36 months following the accident, the at-fault accident will then continue to apply to the points used to determine future premiums for the named insured.

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PersonalAutoNews:LatestScooponPersonalAutoFilings...Here is more nformation on private passenger auto insurance filings placed on file with the Division of Insurance:

Company EffectiveDate Impact BriefDescriptionEsurance128770845

07/16/13 N/A Violation Classification:• Violations are classified into four groups; Major violations,

minor violations, speeding and alcohol related violations (including drugs). Major violations include but are not limited to: racing; homicide or assault with a vehicle; fleeing from an officer; hit and run; leaving an accident scene; felony involving a motor vehicle; reckless; careless or negligent driving; serious license/credential violations. Minor violations include but are not limited to: following too close; failure to yield; wrong side of the road; disregard traffic device; failure to report accident; improper backing; passing or turning. DUI includes refusal to submit to chemical testing and open container violations.

Financial Responsibility:• At the insured’s request, the Company will issue an SR-22

financial responsibility filing for any listed operator on the policy. If the policy is for a named operator, the Company will issue a Type-2 filing (any vehicle operated); otherwise, the Company will issue a Type-3 filing (any vehicle owned or operated).

• Any policy with an SR-22 must offer liability limits which satisfy minimum financial responsibility requirements for the state requesting the filing. Any operator requesting a filing must have a verifiable driving record and cannot be excluded from the policy.

• The company will cancel the filing upon lapse or expiration of the policy; the filing will be reinstated if the policy reinstates or renewal.

• SR-22 and SR-26 filings will only be provided for Massachusetts.

Named Driver Exclusions:• Any listed operator may be excluded from coverage under

the policy except individuals requiring a financial responsibility filing. Excluded drivers will be considered in the policy’s premium calculation for Bodily Injury, Property Damage, Personal Injury Protection and Uninsured Motorist coverage. Drivers cannot be excluded from specific vehicles on a policy.

Driver Assignments:• Esurance has its own driver assignment rule

Fees:• Financial Responsibility• Installment Fee• Late Payment Fee• Loss Payee Notification Fee• Paper Document Fee• Driving Device Restocking Fee

Vehicle Use Definitions:• Defines commuting, pleasure, business and commercial

uses

FarmFamily128888552

04/01/13 N/A • Groups

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Company EffectiveDate Impact BriefDescriptionGreenMountain129091932

07/15/13 N/A • Rule 29. Years Licensed Factors

Hanover129074853

08/04/13 N/A • Adopted ISO Symbols with no alterations

Harleysville129083394

08/05/13 New10/24/13 Renewal

N/A • Territory Definitions

ISO129116190

09/2013 N/A Symbols:• Liability & PIP/Medical Payments Symbols by Vehicle Make

& Model• Vehicle Symbols

LibertyMutual&LMGeneral129000268129073051129100619129122541

June 2013June 2013July 2013July 2013

N/A

GroupsGroupsGroupsGroups

LMGeneral129111086

09//23/13 N/A • Updated Section G - General Rule - Years Licensed• Added G.15. Deferred Operators - An operator can be

deferred from the policy if the operator is the named insured or listed operator on another auto insurance policy. Deferred operators are not used in rating.

MetropolitanP&CG128883844

08/01/13 N/A • Direct Payment of MV Coll., Comp. & PD coverage claims• Repair Certification Form• Concierge Auto Repair Experience (CARE) Facility Guidelines

NationalGrange129070695

12/01/13 New02/01/14 Renewal

+3.6% • Revised Base Rates & Category Factors• Adopted Increasing Limits Factors• Introduces 2014 MY Factors for Comp. & Collision• Revised rates for Auto Elite• Removes Book Transfer Discount for MB and Grandfather for

Renewal Business• Rule Revisions:

• Rule 11. Premium Calculation• Rule 12. Whole Dollar Premium• Rule 19. Discounts• Rule 29. Category Factors

Norfolk&Dedham129137453

10/01/13 N/A • Rule 29. Tier Assignments• Territory Pages• High Theft Vehicles• Complete Manual

PersonalAutoNews:LatestScooponPersonalAutoFilings...Here is more nformation on private passenger auto insurance filings placed on file with the Division of Insurance:

Follow these STEPS to update your Trusted Choice® and ProjectCAP Agency Profiles NOW:

Step: 1. Creating/Updating Your Agency Profile for the Trusted Choice® Agency Locator

To Start 1. Go to www.trustedchoice.com/agents 2. Login in using your User ID and password. (Your User ID is your e-mail address and your password is your six digit national IIABA membership ID number. This information was included in the email confirmation sent when you joined Trusted Choice®. If you cannot find your User ID and password or have other questions, you can either contact national headquarters at 800-221-7917 or your state association office. 3. After logging in, click on the “My Account” link at the bottom right corner of the page. 4. Click the “Click here to update profile data” link below the Update Profile heading. Step 1: Agency Profile Review the information about your agency that is already there, and make any changes or additions needed. Then click “Continue.” Step 2: State License(s) Select all states where your agency is licensed to conduct business. Then click “Continue.” Step 3: Insurance Lines Written Select the types of insurance your agency writes. Then click “Continue.” Step 4: Insurance Company Appointments/Affiliations Choose the Trusted Choice® partner insurance companies with which your agency has appointments. Then click “Continue.” Step 6: Updated Your agency’s Profile has been successfully completed/updated. • Your agency information will appear on the Trusted Choice® Agency Locator within 24 hours. You can return to the Trusted Choice® member homepage by clicking “Home” button at the top of the page or you may close out of the site. To watch a video on updating your profile, Click here.

Follow these easy steps to set up your agency profile on projectcap: 1. Go to projectcapmarketing .com and choose "Log in as Agent" in the upper right-hand corner. 2. Log in with your IIABA Username and Password.

Your IIABA Username is assigned to a specific agency location. When you log in to ProjectCAP, the profile you create will be for the location associated with this Username.

3. Click the "Sign-Up Now" button on the home page and then the "Get Now" button on the following Consumer Portal page. 4. Enter the agency name, phone number and email for the specific agency location associated with the new profile you are setting up.

This will be the phone number and email address that Project CAP will use to contact you with questions.

5. Agree to the Terms & Conditions and $1 charge.

This $1 charge establishes your Project CAP account and earns you four free prospects. 6. Complete your billing information. Again, the only charge at this time will be the $1 fee.

Once your four free prospects are used up, $15 will be charged to your account for each additional prospect sent to you.

7. Complete all agency profile fields. Agency contact information and email addresses in this section are the contact information that the consumer will use to contact your agency. The more complete your profile, the more likely you are to receive qualified prospects. 8. When you complete your profile, click "Save Changes." If you are ready to "go live," click "Save and Publish." That's it! You will now appear in search results now that the portal is online. The next time you log in to projectcapmarketing.com, you'll land on your Agency Dashboard. From there you can edit your profile or access the Resource Center.