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Fall 2011 • THE BIG “I” VIRGINIA 3

The Big I Virginia is a publication of the Independent Insurance Agents of Virginia

8600 Mayland Drive, Richmond, VA 23294Phone: 804.747.9300 / Toll-free: 800.288.IIAV (4428)

Fax: 804.747.6557 / E-mail: [email protected]: www.iiav.com

For information on advertising please contact: Jim Aitkins, Blue Water Publishers, LLC / 22727 161st Ave SE, Monroe, WA 98272phone: 360.805.6474 / fax: 360.805.6475 / [email protected]

The Big I Virginia is a publication of the Independent Insurance Agents of Virginia and is published quarterly by Blue Water Publishers, LLC. IIAV and Blue Water Publishers, LLC do not necessarily endorse any of the companies advertising in the publication or the views of its writers.

TM IIAV is an organization devoted to promoting,

enhancing, serving and assisting independent

insurance agents.

IIAV extends our appreciation to the following sponsors of this publication:

Insid

e t

his

issu

e6 Message from the Chairman of the Board - John O. Watson

8 Message from the President and CEO - Bob Bradshaw

10 Message from the State National Director - James P. Bradner

12 A Shining Light Within the Richmond Insurance Community: RISC

15 Is the Essence of Your Brand the Trusted Choice® Pledge

16 DataBreach

18 Connecting With Your Next Employee

20 How Agents are Leveraging Trusted Choice®

26 4 Sales Tips to Sell More and Build Better Relationships through Better Eye Contact

30 The Independent Agents’ Opportunity to Take Back Personal Lines

36 E&O Considerations for the Automated Agent

42 What Does “Living the Brand” Mean?

46 IIAV 2011 Young Agents Conference

Allied Insurance 45AmTrust NA 47Atlantic Specialty Lines 9Builders Mutual Insurance 29Delta Dental 11FCCI Insurance Group 38FastSnap 28GNY Insurance Cos. 34GUARD Insurance Group 37Hanover Excess & Surplus 48Harford Mutual 19JMWilson 14Jackson Sumner & Associates 2Johnson & Johnson 24, 25

Keystone Insurers Group 31Military Benefit Association 5Millers Mutual Group 35, 37Penn National Insurance 7Preferred Property Program 43Prime Rate Premium Finance 22PROvision Underwriters 48RPS Rollins 3SIAA 41Southern Insurance Co. of Virginia 39TAPCO Underwriters 13The Iroquois Group 27Utica National Insurance Group 33WineryPak 23

FALL 2011

IIAV Staff

Nettie Ardler, CPIW Insurance Account Executive [email protected]

Carole Barton Accounting Assistant [email protected]

Robert N. Bradshaw, Jr., MAM President & [email protected] (804) 929-4134

Teresa Chester Executive Secretary/ Receptionist & Membership [email protected]

Sherry Grubbs, AISM Chief Financial Officer [email protected]

Joe Hudgins, CPCU Vice President of Education & Technical Affairs [email protected] (804) 929-4138

Bonnie Joyce Insurance Administrative Assistant [email protected]

Melanie Kjar Communications/Website Director [email protected]

Linda Loving, CIC, AISM, AIAO IIAV Chief Operating Officer & VFSC Executive Vice President [email protected] (804) 929-4133

Danny Mitchell Vice President Business [email protected] (804) 929-4135

Susan E. C. Perkins Membership/Education Coordinator [email protected]

Kristina Preisner IIAV Education Marketing Coordinator & VAIA Executive Director [email protected]

Lori R. Reed, CISR, CPIA Insurance Account [email protected]

Marie Toney Sales Associate [email protected] (804) 929-4136

4 THE BIG “I” VIRGINIA • Fall 2011


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It is with great honor that I accepted the gavel from Bob Yergey to lead the Association this year. I would like to thank Bob for his leadership this past year.

There were many initiatives that he created and followed through on. One never knows what will come up on the radar screen and Bob experienced a couple of blips that he led our Association through admirably. I would also like to convey my personal gratitude for his mentoring me to better serve the Association, Thank you Bob.

We have a strong Board of Directors in place this year. In addition we have established several task forces to look into areas of concern. I would encourage new and old members of IIAV to become involved. Not only are there opportunities on a task force but we are reviewing many of our committees; go to our website and look at the list and choose one. I will promise you won’t regret serving the Association!

The convention in June was a fantastically run program that included excellent speakers and CE opportunities. I would like to thank Tommy Via, the convention committee and the IIAV staff who all worked tirelessly to

present what I thought was one of the best conventions we have had. Next June we will be back at Virginia Beach. Please mark your calendars now for what will be an informative and fun time at the beach!

The upcoming term will focus on many of the same things we have done in the past as well as some new initiatives. We all know in our own agencies how the economy has affected us; the same holds true for the Association. We must continue to focus on financial stability in addition to focusing on how IIAV can best serve its members. What is it that you want from your Association? We will continue to review member services to ensure that you are being offered what you want- services that will assist in your growth in your agencies.

Once again, I am flattered to serve as your chairman. I am excited about the upcoming year for IIAV. I would encourage members to take advantage of all that the Association offers. We have many services that can help grow your agency. Take a minute to look at our website or, better yet, call me or one of the IIAV staff or another member agent and find out how we can help.

[email protected]

Chairman of the BoardJohn O. Watson



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I just got this book in the mail and am looking forward to reading it. It’s written by someone that I’ve known for a long time and used once to help evaluate an association that I worked with in the

past. The title alone speaks volumes, however. Given today’s economy, belonging to an association

“because it’s the thing to do” or because “you need to support your industry” just doesn’t cut it anymore. While it is indeed important to support your industry and association – simply put, your association needs to meet you half way and ensure that they are relevant to the economic forces of today. It’s a completely fair test for you to ask before you join or renew membership in an association: How relevant are they to my business, industry or me personally?

Here at IIAV we don’t have the best possible professional staff because we want to spend your dues dollars; we have the best possible professional staff because the demands and urgency of assistance needed by our members is critical for them/you to compete in today’s economy. If you have questions about business practices, you need answers fast. If you have questions about specialty markets, you need the information fast. If you’re having trouble working through any bureaucratic maze…then perhaps we can help. Should you expect anything less?

There are thousands and thousands of professional and industry associations out there. Some are competitive to IIAV and of course, many are not. Some simply are not relevant to today. I worked for one association a long time ago whose ultimate mission was to complete the Interstate Highway System. I kept telling them “hey – your mission is done – let’s close up shop!” but they didn’t want to hear that. Needless to say, I didn’t work there very long.

We’ve been told time and time again that the independent agency system is going to go away because everyone is going to buy their insurance on-line. “Fifteen minutes and you can save fifteen percent” is what you hear. Sadly, our research indicates that

many people who buy on-line make the wrong choice. Insurance isn’t particularly a good thing to gamble with. Contrary to popular belief, the independent agency system is alive and well…and relevant to today’s consumer. We just have to do a better job of getting that message out.

IIAV is getting the message out through our broad press release program, writing and contributing articles to other groups, meeting and speaking with other groups, and of course through our legislative advocacy program. We can’t compete with the volume of adverting dollars but we can compete on the information highway.

I still think one of the problems with our message is that the public thinks we’re too good to be true. Especially in the personal lines area, I believe the public thinks they have to pay something extra to use the services of an independent agent. Going to a State Farm agent, for example, is easy, as they understand the business dynamic and have to have some assurance that what they get in return is going to be something reasonable to what they need. We have to get beyond this reluctance to use or call on an independent agent – especially for the personal lines area.

We’re working to represent your interests and working to provide the assistance you need to hopefully maintain and grow your business. We want to ensure that we are relevant to your current and future business interests. If you think we’re on the right path – please let us know. And most especially, if you believe that we have missed our target – please pick up the phone and let us know that as well.

Without your support – IIAV is just another association and that’s the last thing we want. If you’re proud to call IIAV your industry association, then we’ve done our job. Make sure that we and any other association that you hold membership in meets that standard.

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June in the mountains at The Homestead! The 2011 IIAV convention turned out to be very successful. The sold out trade show, guest speakers, golf tournament, all expertly

delivered by our top-notch IIAV staff and convention committee. My hat is off to those involved. I’ve heard many compliments, from both agent and associate members, Tom Minkler presented the CAP/Trusted Choice® strategy that should help the Independent Agent earn back lost personal lines market share. I hope most of our members embrace the opportunity to leverage what is offered under Trusted Choice®.

I have heard more than once from our associate members how difficult it is to support two agent

associations! There are rumors that we are talking, or should be talking to the other association about doing “stuff” together. Right now, we are not considering doing anything in combination. Our association is financially strong, both at the state and national level. We are well respected legislatively and, thanks in a large part to Danny Mitchell, our membership leader, we are at a positive rate of growth, both agents and associates.

We all should be proud of our membership in both IIAV and IIABA. We are leaders in our profession. I hope we all display the new Trusted Choice® symbol of our profession prominently and proudly.

State National DirectorJames P. Bradner [email protected]


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The VCU Risk and Insurance Studies Center (RISC) can be found in the VCU School of Business. It is part of the Finance, Insurance and Real Estate Department.

The Center is very active on the VCU campus and as a part of the Richmond and Virginia insurance community. Deborah Shaner Little is the Center’s director and has been instrumental in seeing to the risk and insurance program’s growth and insurance industry involvement.

Within the Center, you can find the VCU’s chapter of Gamma Iota Sigma, which is the official VCU RISC program student organization. That group distinguished itself at the October 2010 Gamma Iota Sigma International Conference by receiving 9 awards, a record number for the chapter. These awards included the Superior Chapter, Industry Relations, Community Service, Alumni Relations, Chapter Management and several other awards. Saquib Cheema also brought home the Alan C. Williams Leadership Award, the highest honor given to an individual by the organization. The VCU chapter hope to set even more records at the 2011 conference.

The two VCU students nominated this past spring for the RIMS (The Risk Management Society) Anita Benedetti Student Involvement Program were both selected. Michael Fisher and Julian Sylvestro attended the National RIMS conference in Vancouver, British Columbia. The

RIMS Student Involvement Program was initiated as a pilot program at the 1978 Annual Conference in New Orleans. Due to the overwhelming success of this project a standing committee was created and the program has become a permanent part of the RIMS Annual Conference. In 1997, the name was changed to the Anita Benedetti Student Involvement Program to honor the late Anita Benedetti, former Deputy Executive Director of the Risk and Insurance Management Society, Inc. (RIMS) and President of the Spencer Educational Foundation, Inc. Since 1978, RIMS has sponsored funding for students to attend its annual conference. It is quite an honor to have both VCU nominees accepted into the program. VCU has had students selected for this program since 1996.

For the third year in a row a VCU RISC student has been selected for the very prestigious NAPSLO (National Association of Surplus Lines Offices) Internship. NAPSLO established the Internship Program in 1981 to interest students in the Surplus Lines Industry which handles unique, unusual or hard to place risks. Julian Sylvestro will be spending half of the internship in Scottsdale, Arizona and the other half in Redondo Beach, California. Our recent past recipients include Saquib Cheema and Amanda Mozingo. Saquib was chosen as the top 2010 NAPSLO Intern and will be traveling to London to work with a Lloyd’s of London Syndicate this summer.

The Virginia Commonwealth University Risk and Insurance Studies Center (RISC)

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The Spencer Educational Foundation is the premiere national organization for awarding scholarships in risk management and insurance. They recently finished their scholarship selection process for the 2011-2012 school year. Once again VCU’s students have been selected among the of the best. Three of their students were awarded Spencer Scholarships. Danyelle Crutchfield, Bobi Martens and Julian Sylvestro were each awarded a $5000 scholarship. VCU’s students have consistently been selected for these esteemed scholarships.

And for the first time, AAMGA (American Association of Managing General Agents) selected a white paper submitted by a VCU student, Kanwar Anand. Kanwar attended their annual conference in Orlando where he discussed his paper and took advantage of the breakout sessions.

The program also has wonderful relationships with the local risk and insurance community. Annual scholarships are provided by The Richmond Chapter of CPCU and the Insurance Women of Richmond. VA I Day, VA RIMS and PRIMA (Public Risk Management Association) have all endowed scholarships. And all the associations and organizations invite students to attend their events.

In addition to all of the other outstanding achievements listed in this article, the VCU RISC program hosted the Virginia I Day Educational Conference on October 21, 2010. Speakers and leaders from across the industry, as well as students and faculty attended this conference. Four students were recognized for receiving the 2010-2011 VA I Day Scholarships. The conference will be hosted again at VCU on October 20, 2011.

The Center also hosts breakfast speakers, the annual RISC Conference and finds numerous speakers for the Gamma Iota Sigma seminar series.

If you would like more information about the VCU RISC Program please contact Deborah Shaner Little, Director - Risk & Insurance Studies Center (RISC) VCU School of Business - Snead Hall 301 West Main Street - Suite B2111, PO Box 844000, Richmond, VA 23284-4000 Tel:804-828-1486 | Fax: 804-828-7554.

“My hobby as a

fi tness instructor

allows me to help

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ENTHUSIASMIT’S CONTAGIOUS

At the very heart of any great brand is performance—consistently high-quality products and services. It is the luxury of every Ritz-Carlton property that makes that brand a

winner, just as it is the richness of Starbuck’s coffee, or the comfort, style and endurance of Nike athletic shoes that put those brands at the top.

So, what is the heart of your brand?Well, if you are a Trusted Choice® agency—and we

hope all of you are!—then the essence of your brand is the Trusted Choice® Pledge of Performance. This credo, to which you committed when you signed on to the program, is far more than words on a page. The Pledge, which is based on significant consumer research, articulates what consumers want—and expect—from their insurance provider. The Pledge:

Trusted Choice® agencies are insurance and financial services firms whose access to multiple companies and commitment to quality service enable us to offer our clients competitive pricing, a broad choice of products and unparalleled advocacy.

As a Trusted Choice® agency, we are dedicated to you and are committed to treating you as a person, not a policy. This commitment means we shall:

• Work with you to identify the insurance and financial services that are right for you, your family or your business, and use our access to multiple companies to deliver those products.

• Guide you through the claims process for a prompt and fair resolution of your claim.

• Help solve problems related to your coverage or account.

• Explain the coverages and options available to you through our agency, at your request.

• Return your phone calls and e-mails promptly and respond to your requests in a timely manner.

• Provide 24/7 services for our customers, offering any or all of the following: emergency phone numbers, Internet account access, e-mail and call center services.

• Use our experience and multiple company relationships to customize your coverage as needed.

• Commit our staff to continuing education so they may be more knowledgeable in serving you.

• Treat you with respect and courtesy.• Conduct our business in an ethical manner.We pledge this to you, our clients, and ask that you

let us know if we fail to meet our commitment, so we may take corrective action.

But it is not enough to simply commit to the Pledge of Performance—you must tell your customers about it. In doing so, you raise their expectations of your agency and its staff, but you also increase your agency’s value in their eyes. There are any number of ways of promoting the Pledge and your agency’s adherence to it, but here are 10 ideas to get you started:1. Hang a large framed copy of the Pledge in your

reception area and conference room.2. Post smaller copies of the Pledge in each

workstation or office.3. Enclose a copy of the Pledge in each commercial

proposal.4. Enclose a copy of the Pledge in each new policy

mailing.5. Post the Pledge on your agency’s website.6. Use the elements of the Pledge in an ad campaign.7. Send the media in your community a press release

highlighting your agency’s membership in Trusted Choice® and commitment to the Pledge.

8. Mail your existing customers a letter that highlights the Pledge and explains what the Pledge means for them.

9. In each weekly staff meeting, discuss one element of the Pledge, to ensure that all your employees understand how they must fulfill that commitment in their job.

10. Talk to every customer about the Pledge and your commitment to excellent customer service.

The Trusted Choice® Pledge of Performance is your brand. Make it count.

For a copy of the Pledge, go to the Logos/Pledge tab of www.TrustedChoice.com/agents. Not yet a member? Join Trusted Choice® online at the website today.

Is the Essence of Your Brand theTrusted Choice® Pledge?


The Independent Insurance Agents of Virginia, through their for-profit arm VFSC, has partnered with Commonwealth

Underwriters, Ltd. to provide a cyber liability data breach coverage product for IIAV members and their clients. This policy is one of the most comprehensive on the market today and is placed with an A (excellent) carrier. The product is designed for both the insurance agency and for IIAV members to make available to their clients who have data exposure.

Cyber liability is becoming one of the fastest growing concerns of businesses who handle personal and protected information. Exposure can be through employee theft, hacked computer systems or even through a lost smart phone or laptop. Moreover, with the myriad of state laws regarding cyber liability and data exposure, insurance that covers mitigation is exceedingly difficult to obtain.

DataBreach SM is designed to mitigate an agency’s exposure if protected information is lost or stolen. It provides 3rd and 1st party coverage, electronic media coverage, and forensic/incident response services in the case of an event.

Our members have been asking us to find the right protection for their agency and a product that they can make

available to their clients. We’re excited to work with Commonwealth Underwriters, Ltd. to bring DataBreach SM exclusively for our members’ consideration.

The average cost for a compromised exposed record increased to $214 last year and if you multiply that cost by the number of clients that a typical agency has that could be lost or stolen, you’re talking about some serious exposure in terms of both time and money. This is another risk management tool to help avoid potential E&O claims by making sure agency clients are aware that they can purchase this coverage.

Also, an exclusive assessment tool has been developed for IIAV member agents to use to determine their clients’ exposure to a breach and the strength of existing controls.

IIAV member agencies interested in DataBreach SM for their agency or clients should contact Virginia Financial Services Corporation at 804-747-9300, or 800-288-4428 or e-mail VFSC at [email protected] to obtain the following:

• Application• Specimen Policy• Coverage Highlights• Assessment Tool• Marketing Brochure


This year the oldest of the baby boomers is turning 65. Each day 10,000 Americans reach this milestone. What impact is this going to have on the aging insurance workforce—and what

are you doing to recruit the next generation? How can you develop an on-boarding campaign for your agency? It starts by changing the hiring mindset.

For years, independent agency principals have said that they only wanted to hire experienced insurance professionals. This philosophy resulted in the escalation of wages along with CSRs and producers hopping from one agency to the next. In many instances, agencies were only hiring someone else’s problem. Then the economy took a turn for the worse and significant lay-offs resulted in experienced people out of a job. But now, as the economy starts to improve and you consider hiring again or replacing retired workers, think about bringing a young person on board who can lay a foundation for the future.

A recent survey of Best Practice agencies indicates that 40% of agencies are offering internships and many are developing close relationships with their local college. Two advantages of hiring a younger, less experienced worker are that they are very good at multi-tasking and very tech- savvy. They can be quick learners—and with the right guidance, can be a cheerleader for your agency. Millennials want a rewarding position that is also connected with the community. Insurance agencies and

companies are a perfect fit. Internships are a perfect way to build a presence at your local high school or college and give a young person an opportunity to see the insurance industry as a possible career choice.

One of the benefits of an internship program is that the agency can use it as a trial run. Your staff can get to know students before hiring them as a full-time employee. You have a chance to see if they are a good fit for your agency’s culture. And you can also benefit from their new ideas and meaningful work contribution to your agency. Imagine an intern helping with the marketing of your agency through the eyes of a young consumer and assistance with establishing a social media presence.

One agency assigned an intern to visit the homes in the agency’s personal lines book that have not been visited recently. The intern drove to the homes, took photos and found exposures that had been added to the home since it was first written. This process can also be done online without ever leaving the office. Another agency had students work with the marketing manager to handle applications to carriers and to respond to carrier requests for additional information. Some were trained to spot missing or questionable information on applications.

Working with colleges and high schools that are teaching insurance in their classrooms can make it even easier to bring an intern onboard. InVEST helps educators to incorporate insurance curriculum into existing

with YourConnecting

Next Employee


classes and expose the students to insurance concepts and terminology. These students are perfect candidates for internships because they already understand insurance basics. Some have gone on to two-four year colleges to continue their studies. With a reduced industry learning curve, they can assist with entry-level tasks and quickly bring value to the agency or company.

And internships can serve as a powerful recruiting tool. A survey on internships by Dryden Mutual Ins Co. from 1995-2008 revealed that giving young people a chance to perform in a live job setting gave the interns a chance to impress a potential employer. Most of those young people who were actually offered jobs in the insurance industry jumped at the chance. This study also revealed that combining internships with the InVEST program resulted in better prepared students. Students coming from non-InVEST sources only experienced a job offer rate of 9% (3 out of 34), whereas students coming from InVEST classes experienced a job offer rate at 49% (21 out of 43) in this survey. There is very strong evidence that when InVEST classes are the source of internships, InVEST is a significantly more productive recruiting force.

How can your agency get started? First, visit InVEST’s website www.investprogram.org to view the internship guide under the Career Center tab, which will walk you through the mechanics of setting up an internship program. The guide covers basics such as developing a job description, mentoring program and evaluation. Suggested job descriptions, timelines and responsibilities are also included. When setting up your program, don’t forget the evaluation piece. Evaluations are crucial to young people as they provide guidance on skill sets they can work on along with the attributes that can make them successful. Once you have established the intern’s proposed duties, post your position on the Insurance Career Center www.insurancecareercenter.org. Internship postings are free and once an opportunity is posted, InVEST notifies area schools that have insurance, risk, or finance programs.

Another way to get started on the path to recruiting the next generation of workers is to get involved with a local InVEST program, introducing you to high school or college students. By volunteering to guest speak, being part

of a career panel or attending a career fair, you will be helping students learn about the opportunities within the insurance industry as well as the advantages of working for an independent insurance agency. Students have no idea of the various types of jobs within the insurance industry and the many benefits that come from being in a dynamic changing but steady industry.

Some will say there is plenty of time for industry perpetuation and recruiting the next generation of workers. But with our rapidly aging insurance industry workforce, we can’t afford to wait any longer. Put a succession plan in place now for your agency. Tomorrow will be here before we know it.

InVEST, a school-to-work insurance program, teams with high school and college educators to provide a useful insurance curriculum for students. With the help of InVEST liaisons (insurance professionals), students could have the opportunity for job shadow days, internships or even careers after graduating from InVEST. InVEST provides all materials necessary to launch your first InVEST program, specifically created to appease the millennial generation, including lesson plans, textbooks, activities and more. Best of all, its totally free. For more information visit www.investprogram.org.



What’s the key aspect to building a brand over the long term?

Advertising, you might say? Well, that is an important brand

“touch-point.” But in any serious brand-building campaign, which takes place over multiple years—even decades—how the customer actually interacts with the product or service is most important. In insurance, these brand touch-points involve your staff working with customers and prospects.

Advertising messages can set the stage for those interactions, but how your staff serves customers and prospects is the true test of your brand. That’s why Trusted Choice® has put in place a dynamic branding program allowing for flexibility at the local level. How is this achieved? Remember that Trusted Choice® does not replace your agency’s brand—it adds value to your agency’s brand. Thus, if you already have a solid agency brand, you can position Trusted Choice® as adding further value to the services you already offer. (By way of example, think of “Intel Inside” or the “Good Housekeeping Seal of Approval.”)

Here are some impactful ways agents and brokers are leveraging Trusted Choice®:

Pledge of Performance Trusted Choice® provides a road map

for agents to offer a consistently positive customer experience—it’s called the Pledge of Performance. The 10-point Pledge responds to consumer demands for professionalism, choice, customization, 24/7 service and advocacy.

In thinking of how to best serve your customers, you don’t have to reinvent the wheel!

With language from the Pledge, participating agents are writing open letters to clients, highlighting the benefits for customers of using their Trusted Choice® agency. Agent and broker websites proudly highlight an overview of the Pledge, with the full Pledge just a click away.

Here are some other ways agents are using the Pledge of Performance:

• Running ads in their local paper stating the Pledge.

• Having the Pledge made into a framed wall hanging in the reception area—and in every office or cubicle—as a visual reminder for employees and customers of the firm’s commitment.

• Discussing a different bullet from the

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Pledge during weekly or monthly staff meetings so employees will be fully invested in these performance criteria.

• Using the Pledge as the basis for customer survey questionnaires.

• Mailing the Pledge to customers with a letter from the agency owner.

• Incorporating language from the Pledge in their telephone on-hold message.

Are you and your staff embracing the Pledge and living up to its promises? Are you maximizing the Pledge’s power as a marketing tool?

Logo, Marketing Materials and Stationery Thousands of participating agents and brokers are

proudly displaying the Trusted Choice® brand name and logo. (Remember that the logo has been tested, and consumers respond positively to it.) Agents have reprinted their marketing materials and stationery around the Trusted Choice® logo guidelines. Examples include:

• Complete proposal kit (sales presentations, proposals and materials) • Letterhead, envelopes and business cards • New-client welcome packages • Client bills and newsletters

• Building signage • Logo apparel • Bumper stickers and license plate frames • Client gifts (calendars and other logo items) • E-mail signatures • Website templates • Coffee cups used in your office

Important note: Every Trusted Choice® agency must adhere to the logo usage rules. Random variations in colors, fonts, logo designs and messaging are not permitted for legal reasons and for consistency in presentation to consumers, just as is the case with any national brand. Visit the Logos/Pledge tab at www.TrustedChoice.com/agents to download the logo and logo rules.

Trusted Choice® Website Besides refreshing their own websites with the Trusted

Choice® logo and other materials, agents and brokers also are tying into the Trusted Choice® website (www.TrustedChoice.com), which links consumers with local participating members and provides helpful information on a number of personal and business insurance topics.

The Trusted Choice® website plays a vital role in the program’s outreach to both agents and consumers. The


site hosts an Agency Locator through which consumers can find the agency that is right for them based on location, line of business and even languages spoken by agency staff. Member agencies are benefiting from this lead-generation tool by completing an agency profile at www.TrustedChoice.com/agents. Agents also are keeping their agency profiles updated—for example, if they add new office locations, they are updating their profiles at the Trusted Choice® website.

Advertising All Trusted Choice® agencies benefit from the

program’s national advertising. But they also can capitalize on professionally developed tag-able TV, radio and print ads that educate consumers on the value of doing business with their Trusted Choice® agency. These TV, radio and print ads direct consumers to look for their Trusted Choice® agency for choice of companies, customized policies and advocacy support.

Savvy agents have learned that running their own tagged advertising (tagged with their name and contact information) in conjunction with the national ad buys gives their agencies the appearance of running a much bigger campaign than they actually pay for.

Example: One agency is tagging the Trusted Choice®

TV spots—then bought local time on the same programs Trusted Choice® chose for its media buy. This agency also tagged a Trusted Choice® radio spot and ran that through the following month on two local radio stations that match its target demographic. The result: everyone thinks the agency made the entire ad buy, even though it spent only about $2,500.

To preview and download these customizable ads, visit the Advertising tab at www.TrustedChoice.com/agents.

Public Relations Trusted Choice® members are benefiting from a

national public relations program that drives consumers to www.TrustedChoice.com, where they can find a local agent or broker. The PR campaign is focused largely on major consumer and business media. Trusted Choice® agents can use those same PR messages on the local level. And it doesn’t cost them anything. For example, agents are building a complete calendar of media releases that are timed to seasonal events (e.g. holiday safety or flood season). The releases can be downloaded from www.TrustedChoice.com/agents and used locally with your agency’s letterhead. A list of PR ideas is available in Zoom in on Branding and under the Public Relations tab at www.TrustedChoice.com/agents.

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In the world of selling, eye contact is extremely important when both making a first impression and building credibility. In addition to some of the obvious aspects of eye contact, there are also some subtleties involved. So how do you make sure you’re making the most of your eye contact?

1) Use eye contact to build credibility, convey trust, and to accent your point at important intervals in the conversation.

Eye contact builds trust and credibility and a lack of it will destroy the chances for either. The best way to convey strong points, such as closing questions, is to look the prospect or customer directly in the eye while making your statement. You don’t want to be glancing away at all, and you even want to keep blinking to a minimum.

2) Look the person directly in the eye as much as possible. At the very least, you want to be looking the other person in the eye the entire time he or she is

talking. If you’re going to look elsewhere at any time in the conversation, do it while you are talking. Even then, keep straying eyes to a minimum. You’ll notice that if you’re talking to someone and looking around, they’ll start looking around too; looking elsewhere causes paranoia in the other person in the conversation. In the best case scenario, the only time you want to break eye contact is when the other person draws your attention to something else, or vice versa. As much direct eye contact as possible during a conversation will help build all the positive feelings you’re looking for.

3) Look at only the left eye. In conversation, people tend to look back and forth from one eye to the other. But this can give

to Sell More and Build Better Relationships through

By John Chapin

4 Sales Tips

Better Eye Contact



Strong Agencies Made Stronger

For over thirty years Iroquois has helped make strong, independent agencies even stronger and more independent. And it shows.

Iroquois recognizes some of its members who have recently played key leadership positions within the industry:

Kenneth E. DavelerPast President, PIA of VA & DCAlliance Insurance Services, Inc.

Marilyn J. DonohoeACSR of the Year, IIAVMcLean Insurance Agency, Inc

Michael F. FunkhouserPast President, IIAVHaun Magruder Inc.

Tyler W. HancockPast Chairman, IIAVFord & Thomas Insurance Agency, Inc.

Crystal Miller-JohnsonPast Agent of the Year, IIAVAssociated Insurance Systems Services, Inc.

Alan K. PlaceOutstanding Agent & Past Pres., PIA -VA & DCCentral Virginia Insurance Agency

Cruger S. Ragland, Jr.Immediate Past Chairman, IIAVHubbard Insurance Agency, Inc.

Jodi Street Reynolds Outstanding Agent & Past Pres., PIA -VA & DCSWVA Professional Insurance Agency, Inc.

Robert T. ShortSecond Vice Chairman, IIAVShort Insurance Associates, Ltd

Thomas WelchPast President, IIAV & DCWelch, Graham & Ogden Insurance

Dennis C. Winfree Treasurer, IIAVHorizon Insurance Services

Robert A. YergeyChairman, IIAVYergey Insurance Agency, Inc.

2010 Best Practices Agencies

Short Insurance Associates, LtdCharlottesville, VA

Towne Insurance Agency, LLCChesapeake, VA

Welch, Graham & Ogden InsuranceManassas, VA

The Ware CompanyVirginia Beach, VA

LEADERSHIP

Independent agents with premium from $500,000 to $50 million join The Iroquois Group® for market optimization and strategies to increase their revenue, profits and agency value—without giving up their independence.

The IROQUOIS Group

®

To learn more about how Iroquois could further strengthen your agency, contact Matt Ward at 804-320-6984 or [email protected] and visit our website at www.iroquoismidatlantic.com


people the impression you are “shifty-eyed.” As a result, you want to look in only one eye. Looking into the left eye seems to get the best results. Why? Have you ever had an instantaneous connection with someone? You just met that person but you felt as if you knew him or her forever? That connection occurred in the in the right side of the brain, which is the creative and emotional side of the brain. The left eye is controlled by the right brain. Will you always have instantaneous connections by looking in the left eye? No, however, you will have more of them and you will completely eliminate the “shifty-eyed” feeling some people will leave with after having a conversation with you.

Note: If you’re talking to someone with a “lazy” eye and are having difficulty discerning which eye is focusing properly, look at the bridge of the person’s nose.

Note 2: If you’re talking to someone whom you know is blind in one eye, has a glass eye, or any other eye issue, focus on the good eye. If you know they have one of the above issues but cannot tell or forgot which eye is the problem eye, focus on the bridge of the nose.

And no, people won’t be able to tell you’re looking in their left eye or at the bridge of their nose, it will simply appear as if you’re looking them in the eye.

4) Watch others’ eye contact at important times in the sales conversation.

Watch the other person’s eye contact during important questions such as closing questions and qualifying questions. For example, if someone says, “Geez, I think I can get it for less somewhere else.” Look them in the eye and ask, “So that’s the only thing that’s stopping you?” If they say “yes” and look away, off to the side, down, or otherwise break eye contact as they answer you, you can be sure that they are not telling the truth. Very few people outside of professional liars can look you in the eye and tell you an “untruth”. Now that you know that isn’t the real objection, you can ask more questions to eliminate this excuse and find out what the real reason is.

The eyes truly are the mirrors of the soul. They will let people know

if you are interested or disinterested, if you truly care or couldn’t care less, and whether you’re paying attention or off in another world. Watch the message you send with your eyes as well as the messages others are sending with theirs. If you make the most of eye contact, you’ll find that you’ll connect better with people and make more sales.

John Chapin is an award winning sales speaker, sales trainer, coach, and co-author of the gold-medal winning “Sales Encyclopedia” a comprehensive how-to guide on selling. “Sales Encyclopedia” is written for sales professionals in all industries at any level of experience. Utilizing more than 21 years of sales experience and as a number one salesperson in three industries, John co-founded Complete Selling Incorporated, a company helping salespeople significantly increase sales and find their motivation.

If you would like access to John’s free white paper on what it takes to be successful in sales along with a monthly newsletter, you can visit John’s website at http://www.completeselling.com. For permission to reprint, or to reach John, email him at [email protected].

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Sometimes an opportunity is staring you in the face,

but it is invisible to you because you are so fo-

cused on what a particular competitor is doing and

how you are going to compete on the same terms.

Let’s take personal auto insurance. I was so focused on what

the direct carriers are doing with their massive amounts of

advertising, online quoting and rapid market share growth,

that I failed to see the incredible opportunity that indepen-

dent agents have today to present consumers with a better

business model than the direct carriers are offering and as a

result, take business from them.

“Go Opposite”I hope to convince you in this article why this is an excel-

lent time for you to implement a defined strategy backed

by sales power and resources to grow your personal lines.

To help you see why this opportunity is so great, let’s apply

a tool that Daniel Burrus, author of the bestseller “Flash

Foresight,” recommends organizations use in their strategic

planning—“Go Opposite” in order to see opportunities that

previously have been invisible to you. He urges us to make a

list of everything your competitors are doing and then look at

each item and ask, “How can I gain an advantage by doing

the opposite?” He argues that we are living in a world where

in so many ways “our entire world and everything about it is

going through an intensely rapid and comprehensive rever-

sal,” “where the acceleration of digital technology is turning

conditions on their heads…”1 In short, we are seeing this

reset of consumer expectations and practices take place

all around us in our daily lives. Why can’t it take place with

insurance as well?

Let’s apply the tool of “Go Opposite” with regard to the

trend of growth in online automobile insurance sales by the

direct carriers, a concern for all of us. The direct online carri-

ers are emphasizing price to such an extent in their advertis-

ing that consumers are starting to put less and less impor-

tance on the enhanced coverages they can get, according

to recent research conducted by comScore.2 In other words,

the direct carriers are selling auto insurance as more and

more of a commodity and consumer loyalty to the various

providers has become pretty low.3

In addition, the 2011 comScore and J.D. Power Auto

Insurance Shopping reports show that most online consum-

ers are getting automobile insurance quotes from multiple

carriers4 and that these consumers are spending an average

of two or three days gathering quotes.5 Most are entering the

same data into multiple websites. Sound familiar? Indepen-

dent agents all know how inefficient that business model is,

having experienced it themselves before the availability of

real-time multiple carrier quoting.

By Jeff Yates

The Independent Agents’Opportunity to

Take Back

Personal Lines

By Jeff Yates

©2011 Keystone Insurers Group®. All Rights Reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

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Independent Agents Can Provide the Online Consumer a Better Alternative

Now what if independent agents were to “Go Opposite”

and start to show online consumers that there is a better

way to think about and buy auto insurance. They can go to

an independent agent and have a more efficient shopping

experience and get quotes from multiple carriers in one stop.

And independent agents can offer consumers the value add

of personalized professional counsel and debunk the myth

that the coverage and limits bought are not important and

that auto insurance is a commodity.

The Technology Tools Are Now AvailableThe technology has now become available to enable

independent agents to enter the online shopping & quot-

ing space effectively. They have access to real-time quoting

through their comparative raters and agency management

systems so they can finally quote personal lines prospects

efficiently. The efficiency of these real-time tools has been

an essential predicate to independent agents’ being able to

compete in today’s personal lines market place.

Independent agents can implement online consumer

portals on their websites offered by several comparative

rating vendors to provide consumers with online quotes from

multiple carriers and should do so. Agencies using these

tools are achieving a close ratio of 35% to more than 60%

by promptly following up with consumers on quotes. These

agencies are following up with consumers within 15 minutes

or less and have rotating employees on call to follow up with

online prospects after hours. These close ratios show that

consumers are hungry for a better alternative than the direct

model, where the agent custom fits the insurance to the con-

sumer’s needs to provide proper protection, often at an equal

or better price than the direct

carriers.

But consum-

ers have to find

the agent’s website

and online multiple

carrier quoting tool.

Online technology

tools have become

available here as well, al-

lowing agents to improve

their visibility online signifi-

cantly with search engines

and on social media. Agen-

cies are taking advantage of

inexpensive tools such as:

• Local search tools offered by

the various search engines.

These tools are easy to set up, usually free and give

terrific positioning when consumers look for a local

provider.

• Blogging and creating a website rich in insurance infor-

mation of interest to consumers.

• Other social media, such as Facebook and LinkedIn,

where the agency can show its values and “personality,”

its commitment to its community and its

insurance expertise.

And soon IIABA

will launch the Con-

sumer Agent Portal

to help agents further

attract online shop-

pers and benefit from

a wealth of educa-

tional opportunities to

enhance their online

marketing effective-

ness. IIABA hopes to use

the Consumer Agent Portal coupled

with the Trusted Choice® brand to link the thousands of in-

dependent agencies across the country to multiply the online

visibility and search engine positioning of the independent

agency distribution force nationally and for each participating

agency locally.

High Levels of Consumer Shopping Can Benefit Inde-pendent Agents

Recent research of automobile insurance consumers

conducted by comScore and J.D. Power and Associates6 pro-

vide additional helpful information to independent agents, as

they fashion their strategic plans to grow personal lines.

Massive advertising campaigns urging

consumers to shop their auto insurance, coupled

with the tough economy, have led to unprec-

edented levels of consumer shopping—which

is no surprise to any independent agent. This

means more consumers have their business

in play looking for better alternatives, creating

more potential prospects currently being writ-

ten by direct writers for independent agencies

with a strong personal lines strategy and

online presence to target.

Of the 51% of insurance consumers who

shopped for auto insurance in 2010, 19%

switched carriers (down from 22% in 2009).7

The comScore research also found that

70% of online purchasers are seriously con-

sidering changing their insurance company,


compared to 50% of those who purchased through a local

agent,8 indicating significantly higher degrees of consumer

loyalty when they have the experience of using an agent.

However, consumer loyalty is down across all distribution

systems and too low.

Those independent agencies that have implemented

efficient processes for handling this business—such as real-

time quoting and inquiry; policy, direct bill commission and

claims download; and electronic files to replace paper—are

well positioned to manage this increased shopping by their

own clients and to target the increased numbers of insur-

ance consumers whose business is in play. As a result of

implementing these processing enhancements, one major

insurance agency recently told me that its personal lines

department is now achieving the highest return on revenue

of any of its departments.

Important to have a Strong Online Presence & Ability to Quote Online

J. D. Power & Associates has reported that 2010 was

the first time a majority of insurance shoppers (54%) initiated

their policy purchase process by applying for a quote online.9

Websites have become the dominant lead generation chan-

nel and the second most important distribution related factor

for the consumer, second only to the local agent.10

50% of these online quotes, however, still are closed by

an agent or call center representative according to the J.D.

Power & Associates research, prompting Jeremy Bowler, Se-

nior Director of Global Insurance Practice at of the research

firm to conclude that the latest consumer shopping behavior

is “blurring the lines of how we traditionally think about dis-

creet sales channels,” as consumers use multiple channels

during their shopping process.11

The comScore research reports that 80% of those who

shopped online went offline to purchase. 62% of those going

offline to purchase ended up buying through an agent in

person. An additional 31% purchased through a local agent

over the phone.12

The bottom line here is that a lot of auto insurance busi-

ness is currently in play for independent agents to attract and

that most online shoppers still go offline to purchase. Agents,

however, need to have a strong online presence so consum-

ers can find them, along with the ability to offer quotes online.

Research Confirms Agent’s Value to Insurance Consumers

ComScore’s research also provides some very positive

confirmation that a high percentage of those insurance

consumers who have a local agent strongly value that


relationship. Of the 61% of consumers who purchased their

current auto insurance through a local agent, 81% find their

agent to be valuable.13 We have already seen above that a

much higher percentage of online purchasers are seriously

considering changing their insurance company (70%),

compared to those who have a local agent (50%).

In a future article, I will drill down further into the comScore

and J.D. Power & Associates research to ferret out additional

trends in automobile insurance consumer preferences and

behavior that can assist independent agencies in refining their

personal lines sales and servicing strategies.

In summary, I believe the latest consumer research con-

firms the significant opportunity independent agents have to

offer insurance consumers a better alternative for auto insur-

ance than the direct carriers are currently providing them—one

that offers a more efficient shopping process and tailors the

coverage to the needs of the particular consumer. The technol-

ogy tools are now there to enable independent agents to handle

this business efficiently and to establish an online presence that

is highly visible to consumers in their community. The remain-

ing question is whether significant numbers of independent

agencies will have the will to make a significant commitment to

personal lines, to build their online presence and quoting capa-

bility, and to “go opposite” to the “auto insurance as commodity”

business model the direct carriers are currently providing.

Jeff Yates is Executive Director of the Agents Council for

Technology (ACT) which is part of the Independent Insur-

ance Agents & Brokers of America. Jeff can be reached at

[email protected]. ACT’s website is www.iiaba.net/act.

This article reflects the views of the author and should not

be construed as an official statement by ACT.

1 Mark Daniel Burrus, Technotrends newsletter, May 2011.2 comScore 2011 Auto Insurance Shopping Report, p. 32-35.3 70% of online purchasers are seriously considering changing

their insurance company. comScore 2011 Auto Insurance Shopping

Report, p. 7-8.4 59% of online carrier website quoters got 2-3 quotes and 19% got 4

or more. (comScore 2011 Auto Insurance Shopping Report, p. 23).5 J.D. Power and Associates 2011 Insurance Shopping Study, p. 2.6 comScore 2011 Auto Insurance Shopping Report & 2011 Auto

Insurance Servicing Report; J.D. Power & Associates 2011 U.S.

Insurance Shopping Study.7 comScore 2011 Automobile Insurance Shopping Report, pp. 8-9.8 Op. cit., pp. 7-8.9 J.D. Power and Associates 2011 U.S. Insurance Shopping Study,

June 2, 2011 press release.10 Ibid.11 Ibid.12 comScore 2011 Auto Insurance Shopping Report, p. 28.13 comScore 2011 Auto Insurance Shopping Report, p. 26 & com-

Score 2011 Auto Insurance Servicing Report, p. 7


Technology is providing agents and brokers (“agents”) today with several tools to increase sales and profitability, as well as to provide better customer service. Automation is also helping

many agencies manage their E&O risks more effectively, because of its capabilities to retain accurate data, foster consistent processes, document transactions and conversations and generate reports to monitor adherence to agency procedures. However, if the agency does not implement its technology in a disciplined way, this same technology can be used against the agency in connection with an E&O claim or lawsuit.

ACT requested the law firm, Keidel, Weldon & Cunningham, to provide this overview of E&O considerations agents should keep in mind when using technology, given the firm’s expertise in defending agents in E&O lawsuits.

Electronic Delivery of Insurance Policies It is crucial in defending many E&O claims and lawsuits

that the agency be able to demonstrate that it delivered the insurance policy to the customer. Without this evidence, we are unable to raise one of our most valuable defenses – the “Duty to Read” defense. However, many agencies are now delivering insurance policies and other insurance documents to customers in electronic form rather than in paper form. Providing insurance documents to customers in this way can help save both time and money and also allows the agency to provide a higher level of customer service.

Any agency that is contemplating the delivery of electronic copies of insurance documents to customers should follow a few simple steps in order to better serve the customer and help protect against an E&O claim or lawsuit. First, the agency should make certain that the customer

consents to electronic delivery and understands that going forward, until such time as he or she indicates otherwise, he or she will only receive electronic copies of insurance documents and will not receive paper copies. The best practice for the agency to follow is to have the customer sign a letter acknowledging his or her acceptance of this practice.

If policies are being emailed to customers, the agency should not rely upon automatic receipts, since sometimes they can be falsely generated by the recipient’s antivirus software. Instead, the agency should request that a customer who is sent a policy by email affirmatively respond that he or she has, in fact, received the email and attachment. If the customer does not affirmatively respond, the agency should be sure to call the customer to confirm receipt, and then be sure to make a note of that conversation in the agency management system.

If a customer is being provided with an electronic copy of his or her insurance policy that is contained on a CD, the agency should be sure to send or hand deliver that CD along with a letter stating that the electronic document is the policy and that the customer should be sure to review the policy carefully and advise the agency of any questions he or she may have or changes that need to be made.

In addition to email or delivering a copy of the insurance policy on a CD, there is also an electronic system whereby an agency sends an email to the insured with a link to a stand-alone secure server where the client can obtain a copy of his or her policy. If the insured retrieves an electronic copy of his or her policy, the agency management system is documented to show that it was retrieved, by whom it was retrieved and when it was retrieved. However, if the insured does not retrieve the electronic copy of his or her policy, an email is sent to the agent to advise that the policy has not been retrieved. The

A noted law firm specializing in agencies’ E&O defense work provides several recommendations as to how agencies can use

their technology most effectively to protect against E&O exposure.

E&O Considerations for the Automated Agent

By Keidel, Weldon & Cunningham, LLP


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agency can then either send the customer another email reminding him or her to access the policy through the secure portal or print the policy out and send it the old fashion way via the mail.

Notes of Discussions with Insureds and InsurersThe rule within every agency should be that all

employees must consistently make notes within the agency management system of any discussions with insureds, insurers or anyone else that concern in any way issues related to coverage or claims. The agency management system notes the date and time for any such notes which are entered. These notes can be very powerful proof if needed to defend the agency against an E&O claim or lawsuit. There are five important aspects to documenting any communications, and they are as follows:

1. Note the date, time and duration of the conversation;

2. Note the name and title of the individual that your agency is communicating with;

3. Note how the conference took place, such as office conference, telephone conference and/or cell phone conference;

4. Note the salient points of the conversation; and, 5. If possible, follow-up with the insured in writing to

confirm the conversation. While this seems extremely basic, you would be

amazed at how many times we open an agency’s file and the notes are missing such details as whom they spoke with, or where the conversation took place, or even the issues that were discussed. Without some, or all, of this basic information, it may be more difficult or even impossible to defend an agent in an E & O claim properly.

Activities Noted in the Agency Management SystemActivities that are created within the agency

management system are a great way for employees to diary matters for follow-up. No matter what agency management system you are utilizing, the first and most important thing to confirm is that any activity performed is reflected by an activity within your system. For example, if your agency creates a certificate of insurance for a customer, your agency management system should create an activity in the activity log that corresponds to the creation of the certificate of insurance. This would likewise apply to any other type of task, such as the completion of applications, change endorsements, performing a function on the carrier website, etc.

The second most important thing to keep in mind is that the activities that are created should always be closed when the activity has been completed. A very powerful piece of evidence in defending E&O claims and


lawsuits is to demonstrate that an activity was opened, handled and then closed when completed. Conversely, it can be very damaging for an agency to have activities within its agency management system that have never been followed up on; or if they have been followed up on, they have not been closed. Accordingly, every agency should make certain that all employees are creating, following up and then closing all activities within the agency management system.

Voice Mail Messages and DisclaimersVoice mail messages are regularly left by customers

on the voice mail system of agencies, asking questions on coverage, reporting claims, and requesting changes in coverage. For this reason, it is recommended that a voice mail disclaimer be used on both the message for every employee and also on the main message for the agency. This disclaimer should state that coverage cannot be bound or modified, nor can a claim be reported, by use of the voice mail system.

In addition, it is a good practice for an agency to consider adopting a procedure whereby voice mail messages are retained either in the original recorded form or in written form. Some agency management systems are compatible with phone systems to allow a copy of voice mail messages to be attached to an insured’s electronic file. There are also programs that exist where you can have a written version of your voice mail messages sent to you by email and then retain that written version of the message.

Disclaimers for E-mail, Websites and Social Media Sites

In addition to a disclaimer on voice mail, it is also important for every agency to have similar disclaimers on their email transmissions, websites and social media sites. Some agencies advise us that they like to use email for their customers to report claims. For those agencies, the disclaimer might state as follows:

“Please note that an email will not be effective to report a claim or request a coverage change until such time as you receive a confirmation from us that the claim submitted or change requested has been processed.”

Additionally, some agencies have interactive websites that allow customers to report claims or request policy changes. A similar type of disclaimer should be used for those interactive web sites as well.

Where an agency or brokerage is utilizing a social media site like Facebook or Twitter, the agency should use a disclaimer similar to that mentioned above with the addition of advising that these vehicles should not be used to communicate client specific information to the agency, any content the customer provides becomes the property of the agency and the agency is at liberty to add, modify or delete any content that is not acceptable.

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Certificates of InsuranceCertificates of insurance are still one of the largest

sources of E&O claims and lawsuits. As such, it is important for every agency to have good documentation concerning how certificates were issued in the event an issue arises related to a certificate. The agency should be sure to retain, either in paper form or electronically, a copy of every certificate of insurance issued.

While agency management systems will automatically save a copy of the certificates on the system, one problem we have encountered is that many of those systems will only print out the current date (not the date that the actual certificate was issued). Because of the importance of having an exact copy of the actual certificate that is issued (including the exact date it was issued), agents should make certain that if they are saving the copies of

certificates electronically, and not in a paper form, that their agency management system will either:

(a) print out the date that the certificate was actually issued if the certificate is printed at a later date; or

(b) scan a copy of the certificate that is actually issued by the system and maintain an electronic copy of it within the respective insured’s file.

ACORD FormsIt is equally important that every agency use the most

current and up-to-date ACORD forms in connection with its daily operations. Doing so will help protect the agency from potential E&O claims and lawsuits and will often also help better serve your customers.

For example, the ACORD 80 Homeowners Application was revised in October 2009, but some agencies appear

to still be using the earlier versions of the application. The new ACORD Homeowners Application now contains five pages and it is akin to a checklist of coverages and exposures which is one of the best means to dispute a claim by a customer that coverages were never reviewed. Reviewing the completed application with customers will help protect the agency from claims that the agency did not review a particular type of coverage with the customer or ask about a certain exposure that may exist.

Another form that is often not used by agencies in its most current version is the ACORD 25 Certificate of Insurance. The most recent version of the ACORD 25 is the May 2010 edition. As mentioned above, because certificates of insurance are involved in a great many E&O claims and lawsuits, it is of the utmost importance that agencies use the most recent version of the ACORD 25 Certificate of Insurance.

Downloads and Uploads Another area we would like to

address is the agency’s uploading and downloading documents and information from the insurers with whom they do business. While we understand that uploading and downloading has become a major tool to increase agency efficiency, there are several points to keep in mind:


1. Confirm that your agency management system is not allowing your agency’s downloads to change the applications from insureds unless it creates a new version.

2. Downloads can greatly enhance the accuracy of the agency’s data which is essential when counseling insureds, but it is important to audit these downloads regularly to make sure they are accurate and that the agency’s database contains good data overall.

Critical to all of these recommendations is that the agency incorporate them into its written procedures, train its employees on them and require that they be followed, as well as audit the agency’s systems regularly to make sure the procedures are being followed.

This overview is not meant to be an exhaustive list of potential E&O issues that you may face when you examine the electronic side of your business. Agencies should always keep in mind all of the other E&O risk management principles that they have learned and how the technology they are using might impact them.

Editor’s Note: Additional ACT articles on agency E&O and risk management issues are available on the ACT website, such as “Don’t Get Caught in the Web” (agency

website exposures); “Agency E&O Considerations When Using Social Media”; “Creating a Social Web Policy for Your Independent Agency” (comprehensive checklist); and “ACT Prototype Agency Information Security Plan” (tool to build your agency’s written information security plan). All of these tools are available at the “Websites & Social Media” Quick Link in the gray shaded portion on the left of the ACT home page (www.iiaba.net/act), except the prototype agency information security plan is at the “Security & Privacy” Quick Link.

This article was prepared for ACT by Jim Keidel, Chris Weldon and Darren Renner of Keidel, Weldon & Cunningham, LLP, a law firm located in New York, Connecticut, New Jersey and Rhode Island, concentrating its practice in the defense of insurance agent and broker E&O claims and litigation, loss control and education, as well as insurance coverage analysis and litigation and insurance regulatory matters for insurance agents and brokers. Jim or Chris can be reached at 914-948-7000 or by email 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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Branding experts say stuff like this all the time, but most business owners probably don’t know how to implement these mantras into real life. So we’d like to offer some day-to-day guidance

on how to integrate your brand into your agency’s operations in a meaningful way—and to get all your employees on board in the process.

First, let’s start with what they mean by—and why it is important to—“live the brand.” In a nutshell, in order for a brand to succeed, every owner, manager and employee must understand, believe in and deliver on the “brand promise.” That promise—sometimes called a positioning statement—is what you have determined is the essence of your agency’s value. It’s not a slogan or something you put on marketing materials, but rather a sentence or two that articulates internally what your brand is really about. (For example, the brand promise of Trusted Choice® is: Trusted Choice® agents are the smart way to buy insurance and financial services because our multiple company relationships mean we can offer unsurpassed advocacy, customization and choice.) Every employee must embrace your agency’s promise because the brand’s success is absolutely dependent on consistent and quality customer experience.

Ritz-Carlton, arguably one of the most successful

brands ever, articulates its brand promise and the expectations it sets for its employees in a series of dictums called “The Gold Standard” (visit www.ritzcarlton.com). Its three-sentence credo, says Ritz, “is the principle belief of our Company. It must be known, owned and energized by all.” Indeed, that credo is incorporated into every employee’s hiring, training, professional development and evaluation. The result is a staggering consistency in customer treatment by Ritz employees, regardless of location or position. Similarly, Starbucks, another über-brand, reportedly spends 10 times more on employee training than on advertising—and all their employees do is serve coffee!

So, how can you create a high-energy brand culture in your agency without getting a room full of eye-rolls from your staff? According to the experts, successful brands enjoy several things in common that we can learn from:

Leadership. Senior agency management must take seriously its role as brand steward, and use its position to encourage and enforce the brand through words and actions. You must communicate the brand promise to

Live the brand. Embrace the brand. Be a brand champion.

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Products underwritten by AMCO Insurance Company, Allied Property & Casualty Insurance Company, Depositors Insurance Company, Nationwide Insurance Company of America, Nationwide Affinity Insurance Company of America, Nationwide Property and Casualty Insurance Company, Nationwide Mutual Fire Insurance Company and Nationwide Agribusiness Insurance Company. Home Office: 1100 Locust Street, Des Moines, Iowa 50391-2000. Customers will be placed with one of the above companies based on location and the product requested. Subject to underwriting guidelines, review and approval. Products and discounts not available to all persons in all states. Products are subject to deductibles, exclusions and conditions. Nationwide, the Nationwide framemark and On Your Side are service marks of Nationwide Mutual Insurance Company. © 2010 Nationwide Mutual Insurance Company. All rights reserved. AP01637k (0311)

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Work with Allied Insurance and get the kind of support that makes a difference. For you and your customers. It’s our unique approach that helps you deliver the best experience to your customers so you can write and keep more business. It’s just another way that Allied supports your independence, but makes sure you’re never alone. Learn more at alliedInsurance.com.

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CHOOSE WISELY.


employees, carriers and clients. You should empower staff with resources and initiatives that elevate the brand. And you should inspire staff to champion the brand in their own jobs.

Ownership. Involvement cannot end with senior staff, however. Every employee, from the kid in the mailroom to the CEO, must “own” the brand promise. But how to make that happen? First, realize that there will be some resistance and misunderstanding at first, and that full ownership will take some time. Ramanujam Sridhar, CEO of brand-comm, an international branding consultancy, classifies employees into four types: 1) Brand Champions, or storytellers who spread the brand idea; 2) Brand Agnostics, or interested but not committed; 3) Brand Cynics, who aren’t involved with the brand idea; and 4) Brand Saboteurs, those who work actively against the brand idea. You can convert the second and third categories, but the last group will undermine your efforts. Be prepared to make tough decisions if an employee continually derides the brand program. To make all your employees Champions, include them in the development of your agency brand from day one. They should play a role in the development of the brand promise, the image audit and focus groups or questionnaires. You should even solicit their comments on new logo designs or ad campaigns. Then, as the brand evolves, charge staff with recommending ways to incorporate the brand promise in their area. If it is their idea, they are far more likely to sustain interest and enthusiasm—and if they are good employees, their suggestions will probably make sense!

Integration. Successful brands align their corporate or business strategy with their brand promise, rather than seeing them as separate elements. Consider FedEx, for instance. In order to fully deliver on its brand promise—“On time delivery, guaranteed”—the company must systemically infuse that mission into its technology, customer service and transportation activities, not just marketing. In your agency, you could establish a brand team to ensure that the brand promise infiltrates every facet of the business. You could include representatives from sales/marketing; customer service; technology; and senior management, or however you organize your staff.

For example, the fictional ABC Agency’s brand promise is this: “We provide excellent insurance products, guidance and customer service to Springfield’s business community.” Now consider the ways in which its employees can infuse the brand promise in their individual areas:

• Senior manager(s) conduct(s) a review of carriers and products to ensure the highest quality is being offered;

• Information technology explores new ways of providing insurance certificates 24/7 through the agency’s website;

• Customer service recommends was to reorganize how the clients are divided among the CSRs to more efficiently respond to customer requests;

• Human resources standardizes proper phone

etiquette and clarifies the office dress code;

• Marketing staff sends professionally produced information sheets about key business insurance issues to current clients to reinforce the “guidance” role of the ABC Agency. Integration does not end with your staff, however.

As your agency conducts joint planning with carriers, be sure they, too, understand your brand promise and are committed to helping you deliver on it.

Performance. As the old management adage goes—what gets measured gets done. So, incorporate the brand promise into individual and team goals, performance reviews and, yes, even compensation. Award bonuses for “outstanding brand achievement.” For example, FedEx pays its drivers as much as its managers because of the importance it places on on-time delivery.

Measure also your company partners. Check to be sure they deliver quality products and services to you and your customers, and let them know where we can improve. If a carrier is not in-step with your brand promise, find a way to work with them on the issue(s), or consider replacing them with a more compatible carrier. Remember, one bad experience with a carrier can undo your agency’s image in the eyes of a client—don’t risk it.

Once you and your staff begin to see branding as an integral part of your business that requires leadership, ownership, integration and performance, you will have taken a major step toward becoming a successful brand. Remember, however, that this is not a one-time activity, but an ongoing commitment.

Go to www.TrustedChoice.com/agents for more branding tips.

Products underwritten by AMCO Insurance Company, Allied Property & Casualty Insurance Company, Depositors Insurance Company, Nationwide Insurance Company of America, Nationwide Affinity Insurance Company of America, Nationwide Property and Casualty Insurance Company, Nationwide Mutual Fire Insurance Company and Nationwide Agribusiness Insurance Company. Home Office: 1100 Locust Street, Des Moines, Iowa 50391-2000. Customers will be placed with one of the above companies based on location and the product requested. Subject to underwriting guidelines, review and approval. Products and discounts not available to all persons in all states. Products are subject to deductibles, exclusions and conditions. Nationwide, the Nationwide framemark and On Your Side are service marks of Nationwide Mutual Insurance Company. © 2010 Nationwide Mutual Insurance Company. All rights reserved. AP01637k (0311)

AUTO • HOME • BUSINESS • POWERSPORTS

Work with Allied Insurance and get the kind of support that makes a difference. For you and your customers. It’s our unique approach that helps you deliver the best experience to your customers so you can write and keep more business. It’s just another way that Allied supports your independence, but makes sure you’re never alone. Learn more at alliedInsurance.com.

Benjamin Jones Jim Keane Territory Sales Manager Territory Sales Manager Southern VA Northern VA804-551-3518 860-808-8106 [email protected] [email protected]

CHOOSE WISELY.


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