jan. 2013 iiaw magazine

JANUARY 2013

JANUARY 2013 | 3 WISCONSIN INDEPENDENT AGENT

Silver Lining.®Your customers deserve a

When something happens to your customer’s home, car, or business, it may not be a disaster. But no matter what it is, your customers always deserve fast and fair service from their insurance company.

West Bend provides a Silver Lining, no matter what the claim may be. When the Bauers’ truck and trailer were damaged in an accident, getting them back on the road quickly was important. So that’s just what we did.

Sometimes little things mean a lot. And every day, when something bad happens to someone, West Bend makes sure your customers experience the Silver Lining. Because the worst brings out our best.®

Independent Insurance Agents of Wisconsin725 John Nolen Drive, Madison, Wisconsin 53713

Phone: (608) 256-4429 or (800) 362-7441 ! Fax: (608) 256-0170 ! Web: www.iiaw.com

Executive Vice President - Matt Banaszynski

JANUARY 2013Eric Schwartz, Editor

> OUR ADVERTISERS

AAA ................................................................ 30

ACUITY Insurance ............................................ 31

Archway Computer ......................................... 22

Badger Mutual ................................................ 26

Big “I” Professional Liability ........................... 14

Burns & Wilcox ................................................ 10

Erickson-Larsen ............................................. 24

IMT Insurance ................................................... 9

Insurance Associates of America .................... 17

JM Wilson ........................................................ 19

Pekin Insurance .............................................. 26

SECURA Insurance ............................................ 4

SFM Insurance ................................................ 23

The Hanover ..................................................... 7

West Bend ........................................................ 2

Western National Insurance ............................ 16

Wilson Mutual ..................................................21

Open Door Policy Winning In Wisconsin in 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Member Profile Baer Insurance Services: 85 Years Of Success . . . . . . . . . . . . 6

Marketing Minute Think The Unthinkable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

News From ACT Keeping Agency Data Secure . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Commentary From Counsel Non-Union Employer? Confident You Can Ignore The NLRA? Think Again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Errors & Omissions Rules Regarding Documentation . . . . . . . . . . . . . . . . . . . . . . . . 22

Government Affairs Insurance Industry Veteran New IIAW Lobbyist . . . . . . . . . . . 25

2012-2013 Executive Committee

President ....................................................... Michael Froh P.O. Box 1320 Sheboygan, WI 53082-1320

President-elect .............................................. Dave Dunker P.O. Box 443 Brookfield, WI 53008-0443

Secretary-Treasurer .................................... John Wickhem P.O. Box 1500, Janesville, WI 53547-1500

Chairman of the Board .....................................Mike Hierl P.O. Box 949 Fond du Lac, WI 54936-0949

State National Director ................................Linda Steiner 555 Main Street #320 Racine, WI 53403

2012-2013 Board of Directors

Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704

Jason Bott 330 East Kilbourn Avenue Milwaukee, WI 53202

Thomas Holter P.O. Box 938, Beloit, WI 53512-0938

Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583

Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066

Jeff Rasmussen 525 Junction Road, Madison, WI 53717

Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

Donald Williams P.O. Box 595, Beaver Dam, WI 53916

2012-2013 Committee Chairs

Agency Operations ....................................... Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

Employee Benefits ............................................. Tim Bever 555 Main St. #320, Racine, WI 53403

Finance & Compensation ..............................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045

Industry Relations ..............................................Ted Haase P.O Box 6, Seymour, WI 54165

Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

Smaller Agencies ....................................Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236

Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320

Young Agents .......................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500

wisconsinINDEPENDENT AGENTTrusted Choice®

On The Cover… Winning In Wisconsin is more than a convention theme, it’s a philosophy. Wisconsin’s insurance industry is one of the best in the country and the convention is a way to celebrate that fact. The convention is a bonanza of cash and prizes. You have a chance to win a trip for two to Las Vegas. Packer wide receiver Jordy Nelson autographed 100 footballs and we’re giving those away. Plus there’s more CE opportunities, a silent auction, greater networking possibilities, a one-day exhibit hall, a fantastic opening night party, and much more. Check iiaw.com, Spotlight (our e-newsletter), and this magazine in the near future for more details and registration information about the 114th IIAW Annual Convention.

OPEN DOOR POLICY

WINNING IN WISCONSIN IN 2013

As a member of the IIAW you are already in the habit of winning and we’re extending that theme — Winning In Wisconsin — to our annual convention. We invite you to attend the 114th Annual IIAW Convention on May 8 and 9, 2013, at the Marriott Madison West in Middleton!

The year’s convention features some great new additions. There’s more continuing education at convenient times so you can meet your requirements. We’re giving away over $15,000 worth of cash and prizes, including a trip for two to Las Vegas. In addition, the IIAW has partnered with Green Bay Packer Jordy Nelson for a unique opportunity. Jordy has autographed 100 footballs and you will have a chance to win one of them by attending the Annual Awards Breakfast and Business Meeting.

The 2013 convention will be spectacular as usual but with a few exciting changes. As part of our theme over the last year, we have been surveying our members to find out what they like and don’t like. We have listened and acted. The entire format of the convention will be changing for the better this year.

The feedback we collected said we should provide more continuing education, decrease the number of days of the exhibit hall, and include more networking opportunities. The convention will kick off as usual with the Automation/Technology Committee’s

open forum, but there will be two additional continuing education classes offered at the same time so attendees have a chance to obtain more CE credits.

Following the morning education sessions, IIAW President Mike Froh will formally welcome you to the convention and introduce Jeff Thiel. Jeff will once again act as moderator of the annual executive panel and introduce our esteemed guests. This year’s panel includes Brian Domeck of Progressive Insurance, Tim Sheehy of the Metropolitan Milwaukee Association of Commerce, Sean Kennedy of IMT Insurance, and Bob Rusbuldt of the IIABA. It’s a great representation of the insurance industry and business community and should be interesting and informative.

Following the executive panel, the exhibit hall will open for the day. One of the biggest convention changes is that the exhibit hall will only be open on Wednesday. There is no exhibit hall on Thursday. Cutting back the exhibit hall to one day will benefit all attendees. We will have more CE opportunities to close out the afternoon. Before the party begins later that night, companies will have the opportunity to host their own receptions.

This Winning In Wisconsin opening night party will feature a DJ and Casino Night theme with craps, roulette, poker, black jack, and slot machines. We will simultaneously

conduct a silent auction with the proceeds going to a scholarship fund and the Insuring Wisconsin PAC. At the end of the night we will draw for a chance to win a trip for two to Las Vegas. All of the cash giveaways you know and love will be back again this year, including the $3,500 balloon drop courtesy of The Hanover.

Day two will consist of the Annual Awards Breakfast with the Business Meeting folded into the program. After the morning program we will have more continuing education opportunities, including an ethics course.

We are really looking forward to this year’s convention and all the changes that are in store. It’s our goal to bring a new look and feel to this year’s event in hopes of increasing attendance and providing more value for our members. Keep your eyes peeled for next month’s convention brochure. Remember, winning isn’t everything, it’s the only thing… at the 114th IIAW Annual Convention.

Happy New Year!

As the great Vince Lombardi famously said, “Winning is not a sometime thing; it’s an all-time thing. You don’t win once in a while, you don’t do things right once in a while, you do them right all the time. Winning is habit.”

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at [email protected].

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MEMBER PROFILE

BAER INSURANCE: 85 YEARS OF SUCCESS

BRIEF BAER BACKSTORY

The agency was founded in Madison on February 27, 1928, as the Southern Wisconsin Agency, with the first office located on Monona Avenue (now Martin Luther King Jr. Boulevard). In the 10 decades since the company’s inception, agency staff noted that evolving technology has most significantly changed the way they do business. Today, technology changes on a daily basis so it’s hard to imagine the glacial pace that it moved years ago. Pen and paper served as the iPad for a long time. The first practical electric typewriter was introduced in 1914. In 1961, nearly 50 years later, the IBM Selectric typewriter became available. It served as a groundbreaking piece of equipment and an office standard for many years. It took another 20 plus years for computers to enter the workplace.By comparison, the first iPhone came out in 2007. It took only five years for the iPhone 5 to hit the market. “Automation has been the biggest change in the last 85 years,” said Ellen Prehn, Business Manager, for an article that appeared in the Wisconsin State Journal. “The agency installed its first computer in 1985 for auto rating. It was a comparative rating program and used floppy disks. We had to have the program updated each time a company changed its rates. Now we have a paperless environment. No more file rooms,

typewriters and carbon paper. Technology has dramatically improved the way the company does business.”

Computers and automation have also spawned new products. Along with mainstays like auto, home and life insurance, cyber liability insurance is now available. In the last 13 years, Baer Insurance has grown to 26 employees, and has additional offices in Mt. Horeb, Janesville, and Rockford, IL. They have financial planners on staff. With the agency’s success, president and CEO Keith Kaetterhenry has made a point to give back. “Caring about people and doing the right thing for them, is a core value in our agency,” said Keith. “It’s how we conduct business. Being involved with organizations that care for people

with great needs is a natural extension of our business values.” Baer has a long-standing relationship with

the United Cerebral Palsy (UCP) organization and is a proud sponsor of UCP Days. Baer employees and friends also participate by donating funds and eating a UCP-provided lunch together. They also support UCP by volunteering at a booth during the Taste of Madison. The tip proceeds from this event go to UCP. Baer employees are very involved in volunteering throughout the community. They hold food and toiletry drives, adopt a family for Christmas, and volunteer many charitable races like the Shamrock Shuffle, the Haunted Hustle, and the Berbee Derby. The agency’s staff strives to attend or participate in a host of charitable events. “The more we show our community that we care, the more

our community will care to do business with us,” said Emilie Glotfelty, Customer Care Coordinator, about Baer’s charitable philosophy. “We can’t ask for anything better than to serve our community in every way. Our fun little slogan is ‘We *Heart* Our Community!’” “Many of us were fortunate to have been raised in circumstances where sharing, compassion, and generosity were an everyday part of life and it is our responsibility to pass those values on to our children and grandchildren,” said Keith.

Baer Insurance Services is located at 9701 Brader Way in Madison. The agency is licensed in 33 states. Find them on the Web at www.baerinsurance.com.

By Eric Schwartz

In February, Baer Insurance Services will celebrate its 85th year in business. R.M. Vetter, F.C. Welsch and W.D. Tenney founded the Southern Wisconsin Agency on February 27, 1928.

Baer Insurance Services will celebrate its 85th year in business in 2013.

Baer Insurance Services started as Southern Wisconsin Agency in 1928 with $25,000 of capital stock. Founders R.M. Vetter, F.C. Welsch and W.D. Tenney elected Ray W. Baer as the agency’s director less than a year later. In 1950, Ray’s son Neil joined the business. Three years later, Richard, Ray’s other son, joined the agency and Ray W. Baer & Sons was born. Ray remained with the agency until 1971 when he retired as chairman of the board. Neil, who served as IIAW President in 1968-69, became the sole owner and president. A few years later Neil partnered with Jim Mundstock. On January 26, 1984, Jim became the agency’s owner. After Jim’s death in August 1989, William T. Meddings and Dale Kline bought the agency. Keith Kaetterhenry was a minority owner. After Meddings retired in 1996, Keith Kaetterhenry became the sole owner of Baer Insurance Services.

Keith Kaetterhenry is the president and CEO of Baer Insurance Services. He has owned the agency since 1996.

Ellen Prehn, Business Manager, said automation has been the biggest change since the agency was founded. “Technology has dramatically improved the way the company does business.”

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6 | JANUARY 2013 WISCONSIN INDEPENDENT AGENT

8 | JANUARY 2013 WISCONSIN INDEPENDENT AGENT JANUARY 2013 | 9 WISCONSIN INDEPENDENT AGENT

Perhaps even more than the lure of money, optimism dominates the entrepreneurial mind. Whether it’s well grounded or not, every business enterprise is fueled by it.“During the Great Recession, more Americans have become entrepreneurs than at any time in the past 15 years,” states the Kauffman Index of Entrepreneurial Activity. Even with the nation’s economy in a persistent slump, more individuals opted for business ownership.

As history tells us, many of these fledgling enterprises will fail. Yet, even taking the step to “go out on your own” is an act of incredible

optimism, particularly since others often talk about “going into business” but never act.

It shouldn’t be surprising that any talk about a downside is intolerable to the entrepreneurial spirit. Optimism trumps all challenges, including recessions.

While a positive attitude is essential in business, ignoring the downside can spell trouble and even worse — and the best way to avoid crises is to head them off before they take their toll.

Even more to the point, failing to think about the unthinkable is not a plan. Halloween, as we all know, has become the nation’s second biggest holiday event. In 2011, the

Massachusetts-based 54-store retailer, iParty, was more than ready, having rented extra space in malls. Then came a major storm that wrecked sales.

Having gone through this devastating experience, it was somewhat surprising that the retailer was not better prepared for Halloween 2012 when hurricane Sandy wiped out sales. Although management evidently considered buying business interruption

insurance, it dropped the idea due to the cost, as reported by The Boston Business Journal. CEO Sal Perisano said they “hoped lightning would not strike twice.” The company’s future remains in question.

One of the best ways to think about the unthinkable is to ask “what if” questions. Here are a dozen worth considering:

What if we outlive our value? It can and does happen. Even though we see it in other enterprises, we have great difficulty in recognizing it in ourselves. While a “nothing can stop us” attitude is both commendable and useful,

it’s easy for companies to blind themselves to a creeping loss of relevance. It’s prudent that every business ask, “What should we do to make sure we never outlive our value?”

What if we drag our feet with technology? It seems as if the vast majority of small- to medium-sized businesses are close to clueless about their customers. They act as if customer data is unrelated to their success, let alone their continued existence. Even though they may accumulate customer data, they’re totally ignorant of how to take advantage of it and leverage technology to better target customer preferences, buying cycle stage and sales opportunities. In effect, they send an unavoidable message: “We don’t care about our customers.” What these businesses don’t

“get” is that customers know when they are being ignored and taken for granted.

What if a new competitor moves in on us? Between believing “nothing can stop us” and failing to probe the competitive landscape, it’s easy to be blindsided, to wake up one morning and say, “We have a problem.” Staying on the offensive is critical, but having a defensive strategy is equally important. Getting caught off guard can lead to negative consequences.

What if we lose a major supplier? You may think certain vendors love you. Perhaps. But just remember: “Love is blind.” Far too often, businesses see what they want to see –– and then it’s too late. Nothing is forever, so make sure your options are always lined up.

What if we don’t know what we don’t know? Businesses are often “closed systems,” more akin to “solitary confinement” than they are to classrooms. Employees know the topics that are “off limits” to open discussion, while “impenetrable walls” guard against the threat of fresh ideas. In it such a stultifying atmosphere is it any wonder that companies fail to meet new challenges and opportunities?

What if a key person leaves? Count on it because it always happens. It will be the one who’s “indispensable,” the one “we can’t do without.” But that actually may be the person who specializes in maintaining the status quo, who impedes change, who makes it difficult for the business to make the right moves. When the indispensable person makes an exit, the door of opportunity opens wide.

What if our market changes? Acknowledging change is like pushing a boulder up a mountain, particularly when it involves critical business issues. It isn’t easy. GM did it for decades and Research in Motion had to hit the ropes before admitting they were faced with a life threatening problem.

What if we have a serious problem that impacts our customers? Plan on it. It will occur. That’s why having a plan ready is absolutely necessary. And, by the way, denial is not a plan, neither is trying to put a “spin” on it or hiding from the media –– “no comment” doesn’t make the cut. That leaves one option if you want to be viewed as credible and put it behind you as quickly as possible: being

MARKETING MINUTE

While a positive attitude is essential in business, ignoring the downside can spell trouble and even worse — and the best way to avoid crises is to head them off before they take their toll.

THINK THE UNTHINKABLE: ASK ‘WHAT IF’ QUESTIONS

MARKETING MINUTE

> John R. Graham of GrahamComm is a marketing and sales consultant and business writer. He publishes a monthly eNewsletter, “No Nonsense Marketing & Sales.” Contact him at [email protected], 617.774.9759, or johnrgraham.com.

candid and clear, i.e., tell the truth. It’s the stuff of which trust is made.

What if marketing and sales don’t get along? Unfortunately, “sacred silos” are alive and

well when it comes to marketing and sales. In a recent Corporate Visions survey, two-thirds of the responding companies “struggle” with collaborative efforts between marketing and sales. One solution for overcoming this pervasive problem may be marketing automation technologies that allow flexible, response-appropriate actions based on where

the customer is at the moment so data flows seamlessly from marketing to sales and vice versa.

What if your largest customer leaves? It may be closing its doors, being sold or moving to a new vendor. Whatever the cause, it can instantly raise doubts among employees who fear for their jobs. The effects often extend to customers and other business relationships. Many businesses seem to rely on keeping their fingers crossed when it comes to the unthinkable rather than asking themselves a serious question: What steps should we be taking to mitigate the effects of losing a large customer?

What if we drop the ball or mess up a customer’s order? Let’s be clear: an excuse is the last thing a customer wants to hear when this

happens, right? Yet, we continue making excuses rather than offering explanations that make clear what we’ll do to assure customer satisfaction.

What if we get a negative online business review? It can happen to any business today, not just restaurants and plumbers. And the

Smartphone is driving it. Consumers can “do it now” before anger cools. If you have good reviews, a poor review should not be a problem. Customers are suspicious of 100% great reviews. One negative is understandable since you can’t please every customer every time. The key is to monitor sites regularly so there are no surprises.

While every business is faced with overcoming challenges, avoiding unnecessary damage is more than worth the effort to think about the unthinkable. Ironically, focusing on the “what if” questions may be the path to getting over the hurdles and reaching your company’s objective.

West Des Moines, IA 800.274.3531 www.imtins.com

We are seeking quality agency appointments to become part of our “Worry Free” family. Simply bundle your customer’s auto, home and business insurance into IMT’s “Worry Free” bucket, and you will be worry free too.

JANUARY 2013 | 1 1 WISCONSIN INDEPENDENT AGENT

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While some of these are more subtle than others, all are important factors when growing your business.

1) Spend three to four hours a day prospecting. Your most important activity when building a book of business is filling your funnel with lots of prospects who are ready, willing and able to invest in your product. While items such as closing, a solid presentation, and good follow-up are important, having lots of good, qualified leads is the most critical aspect of building a business and one that will make up for mistakes in other areas.

Producers who don’t have an abundance of good prospects tend to keep unqualified prospects in their funnel. They also tend to harass and over contact their qualified leads because they have no one else to call. The answer is to spend a large portion of the working day finding prospects. You need to have several different prospecting methods in place, from getting solid referrals to cold calling. The objective is to have more prospects than you can handle. That way, you won’t hang on to the unqualified ones and you won’t over contact and irritate the good ones because there is no one else to call.

2) Zig when others zag. These days it’s more important than ever to stand out from the competition. Generally speaking, unless you’re getting chased by lions, it’s never been a good idea to run with the herd. This is true in many areas of insurance. For example, if everyone is calling three months before the x-date, call six months before the x-date. Also, when you do call, it’s important that you don’t sound exactly like the competition. You need to have three key differentiators, three important items that are

unique and set you and your company apart from the competition. Your overall objective here is to sound, look and act differently, in a good way, from the competition.

3) Speak a different language. It’s said that the most important conversation you have is the one you have with yourself. When agents talk to themselves about self-discipline, prospecting and other challenging aspects of the business, I find that their self-talk tends to ensure that they constantly fight an uphill battle in these areas. Many refer to these aspects as hard, difficult, and in some cases, impossible. Remember, our subconscious brain is extremely powerful and it does not want to make a liar out of us. When we tell ourselves a task is difficult, the brain immediately goes to work to make us right. As a result, something as simple as picking up a phone receiver, dialing ten digits, and having a conversation with the person who picks up, becomes an onerous task in which the phone seems to weigh one hundred pounds and we mentally struggle to get the task done.

Try changing your perspective and your language around these seemingly difficult tasks. Realize that there are literally tens of thousands of people easily and successfully doing what you think is hard. Also realize that the only difference between them and you is that they never told themselves these activities are difficult or hard. They understood that it simply comes down to learning how to do them effectively and then doing them to the point where they become simple and routine.

4) You need to be a self-starter. If you need someone standing over you to make sure you are doing what you have to do, you will never be successful at the highest levels possible. While being accountable to someone is important, you need to have enough drive and personal motivation to push yourself harder than anyone else can possibly push you. If you need some help in this area, start by looking at your purpose behind what you do during the day. Why do you get out of bed in the morning, go to work and do what you do? What do you want for yourself and the people in your life? Why is it important that you not only survive but thrive at the highest levels possible? If you have enough powerful

reasons in these areas, you will push yourself to do what you need to do in order to achieve a high level of success. If you are motivated and driven enough, you simply will find a way.

5) Read a book a week. It’s extremely important to constantly be growing both personally and professionally. One of the best and most effective ways of doing that is to read a book a week. The most successful people in every profession are continually getting better and learning more. The saying “when you’re green you grow and when you’re ripe you rot” applies here. Keep in mind also that personal and professional

development are your responsibility, not that of your employer. No one is going to threaten or otherwise force you to develop yourself and become better at who you are and what you do. Strive to learn something new, stretch your brain, and grow a little every day.

If you would like access to John’s free monthly newsletter and a white paper on what it takes to be successful in sales, please visit John’s website at www.completeselling.com/.

FIVE KEYS TO PURSUING NEW BUSINESSWhether you are relatively new to insurance, or simply want to add more business to your book, the following five ideas will help you do it quickly and effectively.

> John Chapin has more than 21 years of sales experience and is the co-founder of Complete Selling Inc. For free access to John’s whitepaper on what it takes to be successful in sales, visit completeselling.com.

While being accountable to someone is important, you need to have enough drive and personal motivation to push yourself harder than anyone else can possibly push you.

The objective is to have more prospects than you can handle.


Benjamin Franklin once said that distrust and caution are the parents of security. The expression seems remarkably fresh and relevant in today’s world, especially when it comes to protecting sensitive client data.

NEWS FROM ACT

KEEPING AGENCY DATA SECURENEWS FROM ACT

In fact, this caution is becoming more and more necessary. In an age of highly portable data (and of increasing identity theft), independent agents have an ever-increasing responsibility to keep a lock on their client data. State and federal privacy and data breach notification laws and regulations (e.g., Gramm-Leach-Bliley Act and the Health Insurance Portability and Accountability Act (HIPAA) put pressure on you to keep your clients’ sensitive personal data safe. Even more important, if a data breach were to occur, your company’s reputation would take a nosedive.

In an attempt to simplify a complex area, this article will touch on nine things that an agency can do to mitigate risk of a data security breach.

Keep Data In A Password-Protected, Encrypted Space

Because so many of us these days carry our computers around with us, there is always danger of them being lost or stolen. Precautions must be taken to store client data in a way that is inaccessible to unauthorized users. The best way to do that is to encrypt and password protect it. There are three easy ways to do this:

1. Store data in your agency management system. Because your agency management system is password protected, and data it sends over the Internet can be encrypted, data that is saved in your system or sent via Real Time, secure e-mail or a Virtual Private Network has some measure of safety from prying eyes as long as the proper protocols are followed.

Data retained on most agency management systems, however, is not encrypted, so it’s extremely important to keep your server in a secure location if housed within your agency, or if you use your vendor’s online system, to have confidence in the security measures practiced by your vendor.

2. Encrypt a folder on your hard drive. While your agency management system is a good

location to store most client data, it is almost inevitable that you will have things saved outside of your system, such as on a laptop or USB flash drive. We recommend that the agency strictly limit the employees and instances where client personal data can be kept on such mobile devices and then only for a specific use, after which time the data is deleted from such devices. The trick is to keep this data secure as well. The first option for securely storing confidential information outside of your agency management system

is to encrypt space on your hard drive. While this may sound complicated, in reality it is rather simple, so long as you know what to do.

> To create an encrypted space — essentially a password-protected folder that you can save files to “on the fly” — our recommendation is that you use the very good (and free) TrueCrypt software. The open-source software is available for download at (www.truecrypt.

org/), as is a step-by-step beginner’s tutorial.

> Once you get the system installed and in use, the beauty of encrypted space is fourfold. First, in many cases it’s free. Second, the simple step of creating and saving to a single file provides an added layer of protection. Because you and you alone decide where you want to file your encrypted folder, anyone trying to gain unauthorized access would not only need the password, they’d also need to know where to look. Third, it’s mobile. You can copy and backup the password-protected file anywhere. Lastly, it won’t slow down your machine.

Creating encrypted space on your machine is a convenient and controllable way to protect data that doesn’t cost performance.

3. Encrypt entire hard drive. If you’d prefer not to worry

about having to remember to save confidential information to one specific folder, another option is to encrypt your entire hard drive. From a user standpoint, essentially all this would mean is an extra login. From a security standpoint, it is about as secure as you can achieve, short of prohibiting that such data be kept on such portable devices. So secure, in fact, that if you were to forget your password, the likelihood you’d even be able to get back in is slim.

> One option to do this is BitLocker. (Available in the Ultimate and Enterprise editions of Windows 7 and Vista and in the Pro and Enterprise versions of Windows 8.) Another is the aforementioned TrueCrypt.

> Something to consider when deciding whether to encrypt your entire hard drive, or just space on your hard drive, is that in some cases, particularly with older computers, encrypting the hard drive may slow the performance of your machine somewhat.

The beauty of encrypting your entire hard drive is that if your machine gets stolen,

without the password, no one can make sense out of it – the whole hard drive

becomes a puzzle.

Note about Smartphones and tablets: Agent use of these devices is growing

exponentially and they pose additional security risks. Personal data might be contained in e-mails received from the client. Agency employees should take care to delete these e-mails promptly and not transmit this kind of data from these devices via unsecure e-mail. In addition, the agency should make sure their employees have activated the password protection on these devices and should employ a remote wiping technology, so that if the employee loses or misplaces the device, the agency can restore the device to its original manufactured state with all of its data removed. In addition, some larger agencies are starting to employ software on the mobile device that walls off and secures business applications and data.

Create “Strong” Passwords And Keep Them SecureBecause your password is the first line of defense in preventing unauthorized file access (whether to your agency management system, your encrypted file, or your entire encrypted hard drive), it’s important to create strong passwords and store them in a safe place. The best-case scenario is to not to write them down at all. If you must write them down, don’t carry them around with you or leave them in an easily accessible place. Microsoft offers the following suggestions for creating a strong password:

> Make sure it is at least eight characters long.

> Make sure it does not contain your user name, real name, or company name.

> Make sure it does not contain a complete word.

> Make sure it is significantly different from other passwords you have used.

> Make sure it contains at least one uppercase letter, one lower case letter, one number and one symbol.

Change Passwords OftenExperts have different opinions as to how often passwords should be changed. Our best advice on this is to set a standard for your agency (whether it be every month, every three months, or every six months) and enforce that policy agency-wide. Of course, if you ever have any reason to believe that your password has been compromised, it should be changed immediately.

Many systems require this from you and for good reason. It is much harder to hack systems that require frequent password resets. It adds a level of complexity for the hacker that can be both a deterrent and a safeguard if there is a breach. As you know, carrier portals continually request password changes from all of their users to ensure fraudulent access is minimized. Make sure your agency management system has password management capabilities – so when you change your password on the carrier site, you can change your password in the agency management system and retain your Real Time access.

Changing these passwords for multiple employees, carriers and other entities is cumbersome. The good news is that there is an industry movement underway to streamline these processes. The ID Federation (idfederation.org/) is a not-for-profit group dedicated to creating the Trust Framework to enable agencies and others to use a digital identity provided by a trusted Identity Provider to authenticate themselves with carriers and other business partners in place of passwords. Look for vendors to emerge to start to provide these digital identities to agencies in the coming year.

Keep User Permissions Tightly Controlled Unfortunately, one of the biggest password related problems we’ve seen across the board is that many agencies not only share their agency management system passwords among staff members, they leave the user permissions wide open. Because of the sensitivity of the data stored in the system, the only ones who should have access are those who use it day in and day out.

Use your user permissions well. The better

systems will have fairly comprehensive permission lists that are assignable by individual user. Make sure you:

> Understand the levels of permission you can set within your system.

> Understand the access that each of your team members needs to your system to perform their job optimally.

> Implement based on your agency’s best practices.

> Make sure employees understand that they should not share their passwords with any other employee or person.

For example, many agency systems have permissions to dictate who can pull data in a mass fashion from your system. Take the time to understand these permissions, and who needs to have access. Do your producers need to be able to export a client list with sensitive data? Do your CSRs? If not, consider implementing this permission to restrict their ability to do so.

Remember To Log Out While it may seem simplistic, remembering to log out is one of the more important steps you can take towards keeping your data secure. As long as you are signed in, it doesn’t matter how many layers of security you have or how good your password is – anyone who can get their hands on your computer or mobile device can access your data.

Most systems will have an automatic log-out feature that you can set. For example, if you are not active on a computer for 10 minutes, you will be logged out of the system. Make sure you are using this effectively. If you walk away from your office with your system left open and this auto log-out feature is not active, you essentially give the keys to your kingdom to anyone that walks in the door.

Protect Outbound DataWhile everything we’ve discussed up until this point has related to the data residing on your computer, protecting your outbound data is just as essential, if not more so. Here are a few quick tips:

> Use Real Time – Real Time offers a much more efficient and secure method to handle transactions with carriers than e-mail. When you send a file using Real Time, communications are automatically encrypted and kept within both the agency’s and carrier’s management systems.

CONTINUED ON PAGE 15


> Secure your e-mail with TLS (Transport Layer Security) e-mail encryption. TLS is the industry recommended secure e-mail solution for business partners where there are frequent e-mail communications going back and forth, such as between agencies and carriers. TLS is an open standard that is transparent to end users, but it requires that it be activated in the e-mail servers of both partners. Most agencies are also likely to need to employ a proprietary e-mail solution for use with their clients (or set up a secure client portal on the agency Website), for those instances when sensitive personal data is transmitted to the client, such as that contained in

the insurance policy.

> Storing/Saving e-mails. When storing/saving client

e-mails, attach them to files within your password protected

agency management system instead of saving them in the Outlook application.

Use Security SoftwareIf you are using a reputable online hosted agency management system, the data in your system should be protected with Internet and server firewall data protection, malware & anti-virus protection, as well as weekly security patch updates to Windows and Internet and server firewall data protection. You should be receiving maintenance updates from your agency management system provider that let you know these things are being kept up-to-date. If your agency management system is housed within the agency, you should make sure similar security hardware and software are employed.

To protect data saved outside your agency management system, we also recommend that you use one antivirus program, a spyware scanner regularly, and keep your PDF reader (usually Adobe Acrobat Reader) updated and on the latest version.

The following are a number of vendors that supply both a standalone anti-virus package, along with a suite of security software for your machine: McAfee, Symantec, Sophos, AVG, and Microsoft Security Essentials. In addition, it is recommended that you update your Microsoft operating system with the latest patch levels on your machine. For more information on the latest patch levels for your operating system, visit www.microsoft.com.

Be Careful When Using Public Wi-Fi While free public Wi-Fi is certainly convenient, if you don’t protect yourself against data thieves and hackers, that convenience could well come at a price. Steve Anderson put it quite succinctly in his Tech Tips article, Free, Public Wi-Fi Can Be Dangerous to Your Health when he wrote, “You go to an airport or other hot spot and fire up your PC, hoping to find a free hot spot. You see one that calls itself “Free Wi-Fi” or a similar name. You connect. Bingo — you’ve been had! The problem is that it’s not really a hot spot. Instead, it’s an ad hoc, peer-to-peer network…” Fortunately, there are things you can do to protect your data, yet still access the Internet while you are on the road. Here are a few suggestions:

> NEVER pick a “free” wireless network that is not identified clearly as a usable network by the provider. For example, most hotels and all Panera restaurants have clearly named networks and written instructions for accessing. Be careful not to use the network that advertises itself only as “FREE WI-FI!”

> ALWAYS select the Public Network option when prompted. This uses Windows technology to make your device as undiscoverable as possible on the network. This can be hacked, but it is a critical first step.

> Read the terms and conditions that come up if prompted (e.g., at Panera); make sure you are familiar with the security the specific Wi-Fi network is offering, and the associated liabilities.

> Use a Virtual Private Network (VPN) when accessing your agency’s system. A VPN is a relatively inexpensive way to

ensure secure online access wherever you are. Three examples of providers offering

VPN solutions designed to provide a secure online experience – even in a free public Wi-Fi environment include: HotSpot Shield (www.hotspotshield.com/); GoTrusted (www.gotrusted.com/); and Witopia (www.witopia.net/).

> Purchase and use a Wireless Internet Card. In very non-technical terms, a wireless Internet card is a small device you attach to your computer that will provide access to the Internet over a wireless carrier’s cellular network. These are available, for a fee, from the major cellular providers. Many 3G and 4G Smartphones can also substitute for the wireless card for a small extra fee per month, and data charges.

Create A Security-Minded Agency CultureYou want to have a clear understanding throughout the agency as to the major information security risks facing your firm, grounded in a written security plan and written procedures implementing the plan that are consistently applied. It is also critical for you to have a good understanding of the information security requirements imposed by the state and federal privacy and data breach notification laws and regulations that are applicable to your agency. A common requirement of these laws, in addition to having and implementing a written security plan, is to appoint a Security Coordinator who takes ownership of the information security issue within the agency.

Most important of all, it is essential for you to train your employees so that they have a good awareness of the security risks facing the agency, or in the words of Franklin, a healthy sense of “distrust and caution.” Many avoidable security breaches result directly from employee mistakes, because they are unaware of the risks. Agencies should ask their employees to commit to the requirements of the firm’s agency’s information security plan and procedures, and the agency should regularly audit for compliance.

See the Security & Privacy section of the ACT Website for a wealth of additional security-related information.

SummarySome of these tips can easily be implemented; others will take a bit more time. When it comes to file and hard drive encryption, setting up VPN security measures or TLS e-mail encryption, and standardizing security software across your agency, we highly recommend you get your IT consultant or department involved in the planning and implementation. The important thing, however, is to start: define and outline security measures and make them a standard requirement for everyone in your office.

Note: products mentioned in the above article should not be considered product endorsements, just suggestions for where you can go to learn more.

> This article was written for ACT by Kate Gluck, Director of Marketing, and Paul Fuller, EVP – Product Management, of Strategic Insurance Software (SIS). Kate and Paul can be reached at [email protected] and [email protected]. This article reflects the views of the authors and should not be construed as an official statement by ACT.

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WHY Walk

when you can soar?CONTINUED FROM PAGE 13

KEEPING AGENCY DATA SECURE


Prior to the rise in the use of social media, employers without unions typically did not have to pay too much attention to the National Labor Relations Act (NLRA), which is enforced by the National Labor Relations Board (NLRB).

NON-UNION EMPLOYER? CONFIDENT YOU CAN IGNORE THE NLRA? THINK AGAIN

COMMENTARY FROM COUNSEL

Among other things, the NLRA allows employees to engage in protected, concerted activity. Simply put, that means employees have a right to communicate as a group with each other, their employer and others regarding their terms and conditions of employment — as long as they do so in a lawful fashion. Over approximately the last 24 months, numerous employers — union and non-union — have had to get up to speed on the NLRA in light of the NLRB’s aggressive stance on protected, concerted activity as it applies to social media. Now, employers who may have thus far dodged the social media bullet must reassess the most basic of practices: trying to maintain internal investigation confidentiality and integrity.

For decades it has been common practice for employers to prohibit employees from discussing ongoing internal human resource investigations. Why? Such a practice helps to protect the integrity of the investigation, reduces the likelihood of unlawful retaliation, and curbs the churning

of the rumor mill, which can lead to a variety of undesirable workplace issues. In a ruling that sent shockwaves through the human resources world over the summer (Banner Estrella Medical Center, Case Number 28-CA-023438, decided on July 30, 2012), the NLRB declared that prohibiting

employees from discussing ongoing investigations may violate the NLRA. The NLRB’s ruling stems from a case involving an employee at a Phoenix medical center. The employee raised a workplace safety issue with his supervisor, who disagreed about the safety concern. The human resources department became involved and the employee received coaching. Shortly thereafter, the employee received his yearly performance evaluation in which his supervisor rated him as not fully meeting behavior expectations. The employee complained to the human resources department and was told not to discuss the matter with co-workers while the matter was being investigated. Ultimately, the evaluation was revised to the employee’s benefit. Regardless, the employee then filed a complaint with the NLRB, alleging that his employer violated Section 8(a)(1) of the NLRA, which makes it an unfair labor practice

for an employer to interfere with an employee’s rights protected under Section 7. Among other protections, Section 7 states that employees have the right to engage in concerted activities for the purpose of mutual aid or protection. An administrative law judge (ALJ) initially ruled

on the complaint in the employer’s favor. However, during the hearing it was revealed that

the employer had all of its employees complete a confidentiality agreement that prohibited them from discussing such issues as salaries and discipline. The ALJ ruled that this confidentiality agreement violated the NLRA. The employer appealed the ALJ’s ruling to the NLRB, and the NLRB’s general counsel cross-filed on the employee’s behalf. The NLRB adopted the ALJ’s ruling that the evaluation was not unlawful, but the confidentiality agreement was unlawful. Then, the NLRB modified the ALJ’s decision and ruled that the employer’s prohibition on employees discussing internal investigations violated Section 8(a)(1) of the NLRA. The NLRB reasoned that the generalized concern about protecting investigation integrity did not outweigh an employee’s right to engage in protected, concerted activity. So what does this all mean? The NLRB has suggested that a case-by-case analysis must be

performed regarding the need to keep an investigation confidential. According to the NLRB, an employer is required to “first determine whether in any given investigation witnesses needed protection, evidence was in danger of being destroyed, testimony was in danger of being fabricated or there was a need to prevent a cover up.” This ruling places employers in the very awkward position of micro-analyzing each internal investigation in order to determine if confidentiality during the investigation is justified and lawful. While this decision has been appealed, NLRB decisions are generally effective while being appealed. So, for now, this decision stands. Until appealed or otherwise modified, employers must proceed cautiously when conducting internal investigations, and should reach out to labor and employment counsel if in doubt.

> Josh Johanningmeier is the IIAW’s General Counsel. Call the Legal Services Hotline at (877) 236-1669.

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Surety Ad final (w bleeds).pdf 1 8/23/2012 2:44:43 PM


Wellness is a state of mind and body. It is an individual thing. So, when it comes to employee participation, let’s not get lured into the misconception that wellness only works in large numbers, and therefore is more fitting for a sprawling Fortune 500 company than it is for a small business with 25-100 employees. Wellness today is for all employers and all of its employees. And although cable TV is full of exercise shows, fitness magazines clutter news racks, and health clubs pop up on every street corner like McDonald’s, even back in the 80s when I was consulting with small businesses, some of them had a wellness program in place — and didn’t even realize it. When break time came, the employees of one particular small company would take a walk around the block. Walking together during business hours was built into this company’s culture. The only difference between then and now is today we would count the steps with a pedometer clipped to our belt and walk with iPod buds stuck in our ears as opposed to a Sony Walkman. But the results remain the same. In our small office in North Carolina, we hold meetings outside while tossing a baseball back and forth. When we talk on the phone with a client, it’s not while staring at a computer screen. We take advantage of today’s technology and converse while walking around our office (or outside) holding 2.5 or 5 lb. weights. But when it comes to getting a company to implement a wellness program into its corporate culture, it all comes down to getting them to practice what you preach. And what I found to be effective is utilizing the old KISS system with a slight modification — Keep It Simple Sells. This is not to suggest that a good agent doesn’t know that having a solid health and wellness plan in place will benefit their client. But sometimes the litany of objections from the employers — “There’s nothing I can do about healthcare costs going up,” “It’s too expensive,” “We don’t have the facilities for exercise,” “My employees won’t want to do it” — can sometimes be overwhelming. Randy and Dustin Boss of Ottawa Kent in Jenison, MI have spent four years testing and creating a process of “Bringing Risk Management to Benefits™,” so that when risk management and benefits gently collide, the CEO understands the aggregate health risks in their employee population. They can then take

steps to promote changing the detrimental risk factors that lead to disease and high cost. Keeping healthy people healthy, while improving the health of the less healthy is the ultimate wellness journey. “Employers are frustrated because most likely they have tried things that didn’t work,” says Randy Boss. “They tend to think short term and not long term, and want to see solid and immediate benchmarks.” The goal is to make the employer view wellness as an investment, not an expense. And it’s a mission not to be taken lightly as employers see rising health costs and in many cases aging workers.

John Basten of The Mid-State Group in Lynchburg, VA says employers are frustrated with the ever increasing cost of health premiums, and thus turn to brokers for solutions, which often include delivering “wellness” by implementing disincentives and benefit design changes in an effort to change behavior. A concept that Basten says doesn’t work. “It’s only through education that you can guide employers to better understand the risks and obstacles they are facing,” he explains. “Essentially, step one is to help them identify the specific health factors within their company, because when real data drives the decision, one can plan for the expected results.” York International, a large regional broker in Harrison, NY derives about 25% of its $10 million in revenue from benefits serving the middle market employer of 50-2500 employees. For the past five years, York has

been focusing on wellness or risk management within a health sphere from an employee benefit standpoint that really came out of a continual effort to be able to draw resources and capabilities from much larger entities and bring them to smaller entities. “The Fortune 1000 or 5000 have been practicing engaging employees in health beyond the financing of sickness for many years and we think that there is a tremendous opportunity to continue to do that with these middle market companies,” explains Mike Bodack of York International. “When our point of entry is who we call the ‘user buyer’ of insurance for their company, we try to

engage the ‘economic buyer’ as well. It is not often the same person, but it does happen on occasion.” “When we deal with that economic buyer, we find that it is easy to focus the conversation,” adds Mike. “Certainly, some folks will have their head in the sand. But the ones who are intelligent, rational human beings understand very quickly. Because in the end, it’s just a math problem.” When employers perceive wellness as an added cost instead of an added benefit, bad things happen. Or nothing happens at all. John Basten of The Mid-State Group has fought that battle for years. “Employers are frustrated with the ever increasing cost of health care and are looking for viable strategies to reverse

the trend,” says John. “Many are looking for quick fixes which end in employers spending excessive funds in areas that don’t have long lasting effects. Our specific focus is to educate the employer on how wellness should be defined as an employee benefit. We educate our clients that identifying the specific risk factors affecting their employee group is an essential and foundational step in creating an effective wellness program, starting with getting a minimum of 90% of their employees to complete a health risk assessment without providing incentives.” Getting the employees behind a wellness program can often be the fuel that jump-starts an employer’s decision-making process, as now he sees what was perceived as a potential expense reaping potential dividends in terms of an increase in employee morale and a decrease in the number of days out of work due to a workplace injury and/or illness. As York International’s Mike Bodack sees

WELLNESS: YOU DON’T HAVE TO BE A BIG COMPANY TO ACHIEVE BIG RESULTS

Wellness should be offered

solely as a benefit and not as a

“reward,” and delivered to the

employees as such. Only then

will the employer get the proper

participation they need for the

program to be successful.

> Preston Diamond is managing director and co-founder of the Institute of WorkComp Professionals (IWCP), based in Asheville, NC. In 2010, IWCP created a sister organization, the Institute of Benefits & Wellness Advisors, that trains, tests and certifies benefit and P&C agents in wellness and employee benefits. He can be contacted at 828.274.0959, or [email protected].

it, it’s all about the employee kick-off. “We’ve received tremendous response from our kickoff meetings,” says Mike. “The delivery of the health risk assessment to an employee is a measure of control all by itself. When an

employee takes the 10 minutes to read it, it may be more information than they get about their health from their own doctor. And, an annual health risk assessment offers the employee a grand picture of his or her health, year after year.” Adds Mike, “When employees have something personalized, such as their HRA, and see directives they can look at year after year, it provides a tremendous level of control and a heightened awareness. We routinely reach 85 or 90% involvement from employees who review their Health Risk Assessments.” One point that both Mike Bodack and John Basten agree on as wellness experts is that

employers should not rely on incentives for employee involvement in the program. And, conversely, neither should they be penalized for not participating. “Employees are already struggling with

family pressures and an uncertainty about the future,” says Mid-State Group’s John Basten. “The last thing employees need is a work environment where they are told what not to do and being penalized for doing so. This doesn’t create a thriving corporate culture. Wellness should be offered solely as a benefit and not as a ‘reward,’ and delivered to the employees as such. Only then will the employer get the proper participation they need for the program to be successful.” Mark Nantz of Knapp Miller Brown Insurance Services in Salem, IN says a key component of a successful wellness

program, which he has used many times, is the shared clinic model, a benefit which also includes wellness coaches. “The shared clinic model allows smaller employers to use the clinic model, as long as there is a larger employer to act as the anchor,” says Mark. “Think of a shopping center with the large big box store as the anchor tenant. A large employer can have its own clinic and it can act as an anchor for surrounding companies to share its on-site clinic. On-site clinics can also pull out employees with chronic illnesses and focus on wellness initiatives for those folks.” It has become increasingly clear that workers’ compensation, employee benefits,

and wellness are the three faces of employee health, and the cost of that health means insurance producers must be equipped to bring a unified approach to employers. With the new health care reform legislations, employers will have an enormous need for expert advice on benefits and wellness. The agents of the future are quickly arming themselves with new ways to attack the true root causes that are driving up healthcare costs. And if employers can make their employees healthier without cutting benefits or shifting more premium costs to their employees, where is the downside? Establishing a health and wellness plan in your initiatives to your client can be a great benefit to you because it can help create a stronger relationship with your client, one so strong that it will, as I like to say, create a crocodile-filled moat around your client in these competitive times.

“As a hunter, I am always searching for the best target. Much like my role at J.M. Wilson where I’m committed to seeking out the best solutions for our agents.”

James Reincke Branch Manager in Madison, Wisconsin —and straight shooter

Connect with James on LinkedIn!

800.695.0059 jmwilson.com

Managing General Agency Since 1920

Property/Casualty Professional Liability Surety Commercial Transportation Personal Lines Premium Finance

COMMITMENTA PROMISE WE DON’T TAKE LIGHTLY


Capitol Insurance Receives 2012 Novarica Impact Award

Capitol Insurance Companies has received a 2012 Novarica Impact Award in the Transformation category.

Capitol was honored for its innovative approach to replacing legacy surety systems with the single modern platform, OneShield Dragon.

“This is a great honor for us, and we’re excited to be named a standout in such an elite pool of insurer success stories,” said Rick Allen, president of surety and fidelity operations. “When we took on this initiative, our goal was to create a system that would allow us to adapt quickly to changing business requirements and release new capability in both underwriting and distribution in an ever-changing business environment.”

Capitol’s project included converting 20 years of bond data from multiple legacy systems, and the alignment of Capitol Express – the company’s online, self-service, agent-facing bond submission and renewal portal, which automates the bond underwriting and distribution processes.

“With the help of our partner and technology provider, OneShield, we have successfully increased efficiency and improved our time to market,” said Troy Lethem, CIO and vice president of information services for Capitol Insurance Companies. “Ultimately, we were able to consolidate our surety operations onto a single system, back-office processing from four branch offices to one, and rapidly re-enter the contract surety market in less than seven months.”

Novarica’s 2012 Impact Awards showcase the best insurer case studies of 2012, which are judged by a panel of more than 50 insurer chief information officers (CIOs). Capitol is one of five insurer case studies to receive the inaugural Novarica Impact Award.

Find Capitol on the Web at capitol.net.

SECURA, Independent Agents Support Breast Cancer Research

SECURA Insurance led its fourth annual One by One campaign to raise funds for breast cancer research and generate awareness about the need for early detection. With the addition of the nearly $10,000 raised this year, SECURA has given more than $81,000

to the Breast Cancer Research Foundation (BCRF) during those four years. Ninety percent of the funds BCRF receives go directly to research grants and awareness programs.

The carrier promoted the cause by leveraging its MILE-STONE® home and auto insurance. For each new policy written between Aug. 1 and Oct. 31, 2012, SECURA donated money to the BCRF. Independent agents who write SECURA’s MILE-STONE policy in its 12 states of operation were instrumental in the campaign’s success.

“Breast cancer impacts so many lives in different ways, but there are still others who are unaware of the importance of early detection,” said Diana Buechel, VP–Personal Lines. “This campaign is our way to increase awareness among agents, policyholders, and community

members, and fight this devastating disease.”

A woman in the U.S. will be diagnosed with invasive breast cancer every 2.3 minutes, according to the American Cancer Society. This year, that amounts to an estimated 226,870 new cases. One in eight women will develop breast cancer in her lifetime, and men account for approximately one percent of all breast cancer cases.

Find SECURA on the Web at secura.net.

ACUITY Honors Ryan, Announces Staff Promotions Sara Ryan has received the Outstanding Service Professional Award from ACUITY. Sara is an agent with Independent Insurance Services, working in its Belleville and Fitchburg offices.

“Sara is truly deserving of being recognized as an outstanding service professional,” said Bob Wagner, Territory Director, ACUITY. “She is extremely thorough and knowledgeable, and an expert providing customer care.”

Sara has been with Independent Insurance Services for five years. “The quality of Sara’s work truly shows, from the attention she pays to the insurance needs of our

clients to the personal follow-up that she does,” says David Montgomery, agency CEO. “She is also an actively involved member of the community, and that reflects well on both her and the agency.”

Also, several staff members at ACUITY have earned promotions within the insurer’s commercial underwriting department.

Stephanie Schreiber is promoted to General Manager - Commercial Lines. She will oversee underwriting staff in Michigan, Colorado, Idaho, Utah, Arizona, New Mexico, Wyoming, and Montana. Stephanie joined ACUITY as a commercial underwriter in 1996. Stephanie earned a bachelor’s degree in finance with risk management and insurance emphases from UW-La Crosse. She also holds the Associate in Underwriting designation and the CPCU designation.

Terrie Serketich is named Manager - Commercial Underwriting for the Kentucky and Ohio regions. Terrie began her career at ACUITY in 1991 in commercial lines rating. In 2002, she was promoted to commercial underwriter. Terrie earned a bachelor’s degree in elementary education from UW-Oshkosh.

Laura Wagner is the new Manager - Commercial Underwriting for ACUITY’s Arizona and New Mexico territories. Laura joined ACUITY’s staff in 2005 as a commercial underwriter. She was promoted to senior commercial underwriter earlier in 2012. Laura has earned the Associate in Underwriting and Associate in General Insurance designations.

Al Meyer is named Manager - Commercial Underwriting for ACUITY’s Utah and Idaho territories. Al came to ACUITY in 2005 as a commercial underwriter and was promoted to senior commercial underwriter earlier in

2012. Al earned a bachelor’s degree in business administration from UW-Green Bay and an MBA with risk management emphasis from Concordia University Wisconsin. Al has also earned the CPCU and Associate in Underwriting designations.

Find ACUITY on the Web at acuity.com.

Buchkowski Joins Compass InsuranceDawn Buchkowski, CISR, has recently been named Commercial Lines Service Representative for Compass Insurance Services. Buchkowski joins Compass Insurance with over 10 years of industry experience and expertise in commercial lines account management with River Valley Insurance and most recently with Ansay & Associates. The Commercial Division of Compass Insurance provides area businesses with comprehensive products tailored to

the individual needs of each company.

Find Compass Insurance Services on the Web at compassinsurance.net.

Holub New HR Manager At Integrity Integrity Insurance announces Wendy Holub has been promoted to Human Resource Manager effective immediately.

Holub began her career with Integrity in October of 2010 as an HR Generalist, bringing 15 years of experience to that role. Holub graduated from UW-Milwaukee with a BA degree in Organizational Communication and Human Resources and is a

member of the Society for Human Resource Management.

“Wendy is a great representative of Integrity’s brand,” states Cindy Heindel, VP of Human Resources and Administration. “Her professional

warmth, commitment to providing exceptional service and her expertise in human resources practices led her to this well-deserved promotion.”

Find Integrity on Web at integrityinsruance.com.

SECURA Earns WELCOA Well Workplace AwardThe Wellness Council of America (WELCOA) recently presented its coveted Platinum Well Workplace Award to SECURA Insurance. SECURA is only the second company in Wisconsin to receive the Platinum Well Workplace Award, which recognizes an organization for its commitment to the health and well-being of its employees. This was the first time SECURA submitted its wellness program for consideration and it’s rare for a company to achieve the Platinum level on its first submission.

“Good companies know that their employees are their most valuable asset,” said WELCOA President David Hunnicutt. “Great companies adopt policies that support employees’ efforts to reduce health risks and motivate them through bold strategies, programs, and tactics. Great companies know that by improving their employees’ health, they can reduce health care costs.”

From its onsite fitness center and exercise classes, to wellness programs throughout the year, to educational seminars about nutrition, physical health, and emotional well-being, SECURA’s commitment to wellness is evident companywide. The company’s dedication to creating a healthy environment is recognized by the highest level of the Well Workplace Award.

“We’re proud to be in the elite ranks of America’s healthiest companies,” said SECURA President and CEO John Bykowski. “It’s confirmation that our long-term integration of wellness into our culture has improved the quality of life for our associates. Plus, I’ve always believed that a healthy associate is happier, more productive, and provides that exceptional level of service SECURA is known for. So it’s a win-win-win situation for us.”

M E M B E R S I N T H E N E W S

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Here’s why you want us.

WI 2012 ad-Want-agn-144-1111.indd 1 12/5/2011 2:16:45 PM

There are many key issues that agencies have to deal with in this issue. Some of the key rules that agency

staff should adhere to include:!"The documentation should be detailed. It should include specific names and details and comments on any open items yet to be resolved. A good rule of thumb is: If the person doing the documentation in the agency system is not in the office the next day, will the person reading the documentation know exactly what was discussed and who was involved? If the documentation reads, “Spoke with insured regarding homeowners issue,” what does that exactly tell you? Not much. Instead, it should read, “Spoke with Curt

regarding homeowners coverage and the addition he put on the house. He will call us with the details by Monday. If we don’t hear from him by Tuesday, there is a diary to remind us to call him.”!"The documentation should be professional. It’s fair to say that not every conversation with an insured goes exactly as you would like and that emotions can and do run high from time to time. Keep the documentation professional and above board. Negative or defamatory comments in your system about your client can be very damaging to your agency’s defense if an E&O matter were to develop. The rule of thumb: Don’t put anything in the system that you wouldn’t want a jury to read. Agencies need to remember that in the event of an E&O claim, both the defense and

plaintiff’s attorney’s have a right to receive a copy of the agency file for that client. This

would include e-mails, system notes, etc. Look to have the documentation work for you, not against you.

TWO KEY RULES FOR YOUR AGENCY REGARDING DOCUMENTATIONVirtually every E&O seminar addresses the issue of document …document….document. However, that statement by itself falls short of truly identifying the key issue – what really constitutes quality documentation.

If the person doing the documentation in the

agency system is not in the office the next day,

will the person reading the documentation know

exactly what was discussed and who was involved?

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F R O M T H E A R C H I V E S

The 1974 annual convention celebrated the 75th anniversary of the IIAW. The featured guest that year was Al McGuire, the great basketball coach of the Marquette Warriors. Al is pictured above with two fans in the exhibit hall. William Bush was the Association’s president.

Bill Lathrop (left), of Janesville, chats with John Owens of Milwaukee at the 1974 convention.

Misha Lee’s path to becoming a Wisconsin lobbyist started

in New York. He grew up in Larchmont, a community on Long

Island Sound about 25 miles northeast of the big city. After

graduating from South Kent School in Connecticut, he moved on a whim to Ripon in Fond du Lac County.

“I was looking for adventure and had never been to Wisconsin,” said Misha. “I just fell in love with this state and how laid back the people are. I really enjoy the outdoors, and hunting and fishing.”

In 1993, he earned a B.A. in history from Ripon College.

He briefly moved back to New York to help his Dad open an architectural firm in New York City. Misha served as the business manager but he always had designs on moving back to Wisconsin. That’s exactly what he did.

He ventured back to the Midwest without a job and moved in with some college friends. Since he needed a job, he followed a friend’s suggestion to apply to work for Bob Welch’s U.S. Senate campaign. Misha was offered his first job in politics. Welch was the Republican candidate running against Senator Herb Kohl. Welch did not beat the popular Kohl but Misha made a great impression.

“If you do a good job on a campaign, win or lose, more than likely you will get offered another job in politics or government,” said Misha. And he did.

In 1994, Joe Leean, the Republican State Senator from Waupaca hired him on as a legislative assistant. Leean was the co-chair of the influential Joint Finance Committee at the time. Misha was 24 years old. “My annual salary was around $22,000 and I was just thrilled to be working in the Capitol.”

He had worked in the State Capitol for five years when a lobbyist contacted him and said Sentry Insurance was looking for a Madison-based lobbyist and that he might want to apply.

“I wasn’t actively looking to get out of the building at the time and went into it with no expectations. I interviewed twice and next

thing you know they were offering me the job. My lobbying career started with a reputable Wisconsin insurance company.” Misha was named Director of Government Relations before his 30th birthday.

In his more than 13-year career with Sentry, Misha received an extensive education in the insurance industry. He earned the prestigious Wall of Fame Award from Sentry that recognized his “superior achievement and excellence in rising above and beyond the highest standards of an employee’s position.”

He is a past chairman of the Wisconsin Office of the Commissioner of Insurance Property and Casualty Advisory Council and former member of the National Association of Mutual Insurance Companies (NAMIC) Advisory Council. Misha has also served as chairman of the Wisconsin Insurance Alliance, as a member of the Wisconsin Association of Mutual Insurance Companies (WAMIC) Legislative Steering Committee, NAMIC PAC Board of Trustees, NAMIC Federal Affairs Committee, and NAMIC State Affairs Committee.

He has also been vice president and director of the Association of Wisconsin Lobbyists, and a member of the following organizations: President’s Leadership Council on Diversity for the University of Wisconsin System; City of Sun Prairie Police and Fire Commission; City of Sun Prairie Economic Development Committee; and Ripon College Madison Area Alumni Committee.

In 2012, Misha founded Lee Government Relations, LLC to bring his specialized expertise to clients that include the Independent Insurance Agents of Wisconsin.

“The Big ‘I’ is the leading voice for insurance agents in Wisconsin and that will continue under the leadership of Matt Banaszynski (the IIAW’s Executive VP),” said Misha. “Matt is

young, energetic and has lots of positive ideas for leading this organization and its members for many years to come.”

Misha says there are exciting opportunities for IIAW members to make a difference in the State Capitol.

“There are many new faces in the Legislature right now,” he said. “A large number of them are unfamiliar with the insurance industry and the role that agents play in the marketplace. Independent agents — Big ‘I’ members — have an opportunity to be a strong voice and influence lawmakers early on in their profession. We are a heavily state-regulated industry and agents need to get more involved in the political arena. Otherwise, lawmakers will dictate how they should operate their business.”

At Sentry, Misha helped develop one of the largest company conduit programs in Wisconsin. A conduit utilizes individual contributions much like a PAC, but a conduit program allows an individual donor to authorize which state legislative candidate they would like to support

“I’d like to show the association the benefits a conduit and political advocacy can bring to an organization,” said Misha. “A conduit fund combined with grassroots political advocacy can be the most valuable political tools in the toolkit.”

INSURANCE INDUSTRY VETERAN NEW IIAW LOBBYIST

> Misha Lee is the founder of Lee Government Relations, LLC in Madison, Wisconsin. He is the lead lobbyist for the Independent Insurance Agents of Wisconsin. Please visit www.leegovernmentrelations.com.

GOVERNMENT AFFAIRS

CONTINUED ON NEXT PAGE


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Misha’s also brings significant public policy experience with him. The Patient Protection and Affordable Care Act (PPACA) is a juggernaut but that doesn’t mean that agents are without a voice.

“It’s a massive, complicated piece of legislation but we want to ensure that here in Wisconsin, the agents’ role is protected and not undermined.”

In addition to PPACA, Misha is wary of the ongoing federal threat to state insurance regulation.

“Federal regulation is a significant issue and I believe Wisconsin’s unique favorable regulatory climate would be jeopardized under such a system,” he said. The Dodd-Frank Act created the Federal Insurance Office in 2010. “This one size fits all mentality coming out of Washington, D.C. would not be good for agents or their customers in Wisconsin.”

Misha stands ready to help the IIAW fend off these and any other legislative challenges that threaten the livelihood of association members.

“I enjoy working with people and I’m proud to be an advocate for this industry and for the IIAW,” he said. “So much of government and politics is a people business just like it is for agents. If you’re honest, hard working and maintain credibility, you’ll be successful. I’m not a big self-promoter but this is the way I’ve done it for two decades.”

CONTINUED ON PAGE XX

INSURANCE INDUSTRY VETERAN NEW IIAW LOBBYISTCONTINUED FROM PREVIOUS PAGE

At this time, the computer industry as we know it today was in its infancy. Microsoft had released version 1.01 of something called Windows. Apple introduced the original Macintosh 128k the year before. (Technology

note: today’s iPhone has 4,000 times more memory and is 100 times faster.)

Brad was prescient about the rise of computers but it was a chance encounter that led him to the insurance industry. A friend’s Dad, an insurance agent, came by the garage and wanted to purchase Coast Premium Rater (CPR) software, but the vendor wanted him to buy a $5,000 computer to run it.

Instead, Brad installed CPR on one of his computers and sold it to the agent for much less. In a bit of a twist, he partnered with the software vendor to sell his computers. The

original order was for two computers.

“The first day he sold both of them,” said Brad. A career was born.

Fifteen years later, the company had become Pacific Netcom, one of Southern California’s largest value-added resellers and professional services providers. Brad sold the company, essentially retired, but helped other start-ups with infusions of capital and expertise.

In 2009, this serial entrepreneur founded Archway Computer in Agoura Hills, California, about 30 miles west of Hollywood. With 12 employees, Archway still provides managed IT services to the insurance industry, mainly insurance agencies. The company has 50 clients in 13 states.

“Managed Services” is the antidote to the “Break/Fix” model of service and the key to Archway’s success.

“Managed service prevents problems before they happen,” said Brad. “We take a proactive approach to IT support by using specialized tools that allow us to monitor and manage your network, servers and workstations. We use remote tools to solve issues right in our office. If you have a problem and have to call our office, in some way I feel I’ve failed.”

If there is an issue, the computer generates a ticket or the user submits a ticket via e-mail. The ticket goes directly to an engineer who remotely services the offending computer. The smaller issue is fixed before a big problem emerges. Your system remains online and you keep working.

The break/fix model of IT support comes into play when, of course, something breaks. That disruption can lead to downtime, production losses, extra costs and headaches. Brad knows that insurance agents want to sell. They don’t want to have to think about IT problems.

“I think the break/fix guy is kind of happy when something goes wrong,”

said Brad. “There is an incentive system in place that if your equipment breaks, they will make money by repairing it or replacing it. We don’t sell equipment.”

Archway’s service also includes virus protection and e-mail spam protection.

“For most insurance agencies, technology represents a significant investment,” said Brad. “Agency owners recognize the central role that technology plays in their companies, but often lack confidence that they’ll actually receive the benefits promised for the issue at-hand, let alone prevent it from happening in the first place. I love getting agents to see the light.”

In 1985, Brad Ruben was a 20-year-old college student attending UCLA. He was building computers and selling them out of his garage. He was in on the ground floor of the modern computer boom.

FIX IT BEFORE IT’S BROKEN: PROACTIVE APPROACH TO IT SERVICE SETS ARCHWAY APART

Brad Ruben is the founder and president of Archway Computer. Archway is the IT service provider for the IIA of Wisconsin. Find them on the Web at myarchway.com.


Marketing and selling to the modern consumer is not the same as selling to traditional consumers who walk in ready to buy insurance or were referred by cousin Vinny. In order to sell to the modern consumer, all agency staff — agents, producers and CSRs — must possess the ability to handle incoming calls the right way. After all, that incoming call could be a prospect calling because they saw

a paid search ad online. Does your staff know how to sell to an Internet lead? Not many do. Here are a few tips on how to improve your sales process by effectively answering the phone:

Tip #1. Positivity wins.Too many insurance professionals dread answering the phone. They fear it might be a shopper on the other end. That’s the wrong attitude. Every call is an opportunity. It’s every person’s job in your agency to maximize good

business opportunities. As trivial as it may sound, answering every call with a smile and a positive talk track — “It’s a great day at ABC Insurance. How can I help you?” — could be the difference in winning over new business. It’s important to remember that your callers may be dreading the call, too. Believe it or not, buying insurance does not excite everybody. You have to make it positive and exciting or at least enjoyable for them.

Tip #2. Don’t launch into a checklist of information you need to get them a quote.When a prospect calls shopping for insurance, ask them why they are shopping today. Maybe they just got married and need a life insurance policy. That’s great information. Say, “Congratulations! Where did you go on your honeymoon? Oh, that’s a beautiful place. How

long have you been in the area?” As you build rapport with this prospect,

you’re also building trust. You’re also finding out more about the prospect. As you’re asking questions get a feel for if they now have two cars they may need to insure. They could save money by bundling coverage for both cars in one policy. Do they have a house together? Perhaps you could find a deal if they insure their home and cars with the same company.

Your goal is to offer them solutions to problems they didn’t know they had. That’s how you sell insurance to Internet leads and insurance shoppers. It’s all about building a rapport, being positive, and offering solutions they didn’t know they needed.

It’s almost maddening how many sales opportunities are lost by insurance agents, CSRs, producers, or even receptionists who simply don’t know how to effectively answer the phone. It’s not their fault, really.

IMPROVING YOUR SALES PROCESS BY ANSWERING THE PHONE

> Tim Sawyer is the co-founder, president, and director of client services for Astonish. His company offers a complete digital marketing system that includes coaching and insurance sales training for local agencies.

“When our management system vendor

introduced Real Time, we implemented a

new common workflow for policy and billing

inquiries. Once our staff saw how easy it was to

manage customer inquiries in Real Time, they bought in quickly. No more double entry

and logging on to company Web sites. Employees love it. And happy employees create

happy customers.

“With the time they saved by using Real Time for inquiry and service, they are now able

to focus more on sales. They have time to serve customers better by reviewing coverages,

suggesting changes and rounding accounts. While other agencies are

seeing revenue decline, we’re growing. And that makes me happy!

“At our agency, Real Time is real money.”

Experience the power of Real Time. Start at getrealtime.org.

This message brought to you by the Real-Time/Download Campaign, which is dedicated to improving the competitiveness of the independent agency distribution channel. Participants include independent agencies and brokers, carriers, technology providers, user groups, and agent and industry associations.

Stu Durland, Principal

Seely & Durland, Inc.

Warwick, N.Y.

For a fun way to make Real Time a habit in your agency, visit getrealtime.org/21DC!

‘Our Employees Love Real Time.And So Do I.’

In order to sell to the modern consumer, all agency staff — agents, producers and CSRs — must possess the ability to handle incoming calls the right way.

This is an old telephone but it doesn’t really matter what the phone looks like when you are talking and selling to prospects. Good phone etiquette should be standard for all agency employees.

CAN ONE CGL INSURED SUE ANOTHER ONE?One of the most common questions received by the Big “I” Virtual University’s Ask an Expert service is how to provide “cross-liability” coverage under commercial general liability. The question typically arises from a certificate request for the coverage or, more often, a request to remove a cross-liability exclusion.

The term “cross liability” deals with whether or not one insured can sue another under a liability policy. The bad news is that, under the ISO program, there is no endorsement to provide cross-liability coverage. The good news is that there’s no endorsement because none is needed; it’s included in the CGL policy itself and has been since 1986:

7. Separation Of Insureds

Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies:

a. As if each Named Insured were the only Named Insured; and

b. Separately to each insured against whom claim is made or “suit” is brought.

Why people still ask for a “cross-liability” endorsement to remove a nonexistent exclusion (unless they want to limit such suits) is a mystery. In fact, some states may have a statutory provision prohibiting the use of cross-suit exclusions in most basic liability policies.

Most likely, you’re dealing with attorneys or consultants who either aren’t up on things or don’t know what they’re asking for — they’re just looking at an outdated “cheat sheet” that says they should ask for this.


> Bill Wilson is director of the Big “I” Virtual University.


FOOD FOR THOUGHT128 SECONDS OF HISTORY

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

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On January 27, 1956, RCA Victor released the single “Heartbreak Hotel,” the new song by Elvis Presley. The song was written by Mae Axton and Tommy Durden. Durden showed Axton a story from the Miami Herald about a hotel guest who committed suicide and left the note, “I walk a lonely street”. Axton thought it could make a good blues song: a lonely man, a lonely street and a man’s life is over. She added that it must be a “heartbreak hotel” and they completed the song within an hour. In April 1956 “Heartbreak Hotel” became Presley’s first American chart-topper, and made both the country and R&B charts. The single was released in the UK to poor reviews. The New Musical Express said, “If you appreciate good singing, I don’t suppose you’ll manage to hear this disc all through.” In 2004, Rolling Stone listed it as one of the top 500 rock and roll songs of all time. Source: independent.co.uk

A BUBBLING BROOKSBrooks Stevens was born in Milwaukee in 1911. When he was 8, he contracted polio and doctors said he would probably never walk again. He could not use his right arm. His father, William Clifford Stevens, resolved to not let the boy just go through life a bed-ridden invalid. He taught his son to ride a bike, encouraged him to draw and said he would buy the boy a Model T if he swam a mile in a pool. After hundreds of attempts he finally earned the car. The encouragement and drive instilled in him by his father helped Brooks become one of the world’s most prominent industrial designers. Among his most well known inventions is the Oscar Mayer Wienermobile but he designed more than 3,000 products for 600 clients. Many of Steven’s designs were featured in an exhibition at the Milwaukee Art Museum in 2003. Source: Famous Wisconsin

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www.acuity.com

facebook.com/acuitywow

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jan. 2013 iiaw magazine

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