missouri agent july-august 2010

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For more details, contact your Business Development Manager or Customer Service at 1.800.442.0593 or [email protected].

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WhaT’s Making a big splash WiTh sMall businEssEs?

july/august 2010 missouriagent 3

contentsSpecial Focus: Legislative RecapShedding Light on the 2010 Missouri Legislative Session 24Federal Health Care Reform 27

No Feud Here, But Show Me Anyway 7Young Agents Conference Scrapbook 19SUMMERTIME: And the Livin’ is Easy 22Fall Agency Compliance and E&O Seminars 23Dulle Moves West 372010-11 Elite Class Begins With a Bang 39

AdvertisersACUITY 4American Mining Insurance Co. 21Artizan 45BC&M 32Burns and Wilcox 47Captial Premium Financing 22CFM Insurance 28Couri Insurance Associates 14EMC Insurance Cos. 10FCCI Insurance Group 30General Casualty 37Illinois Casualty Co. 6J.M. Wilson 31MAIA Education 18MAIA Partners 48

DepartmentsFrom the President 5The Legal Side 9Errors & Omissions 11News & Know-How 12Technology 15From the DIFP 20

Technicalities 29Missouri News 36Regulatory Actions 41 Partner News 44Agency News 45Classifieds 46

missouriagentmagazine

3315 Emerald Lane, P.O. Box 1785, Jefferson City, MO 65102-1785 • 800-617-3658 in Mo. Phone 573-893-4301 • FAX 573-893-3708E-mail: [email protected]: www.missouriagent.org

Publisher Larry CaseEditor Amy J. HoffmanAdvertising Manager Amy J. Hoffman

Officers of the MAIAPresident Belinda Brenizer, CIC, EdinaPresident-Elect Scott Brothers, CIC, JoplinVice President Byron Robison, SpringfieldSec’y/Treasurer Doug Clift, CIC, St. Louis IIABA National Director Mitchell C. Mills, ClintonPIA National Director Richard Minor, CIC, Hannibal Past President Brent Speight, CIC, Montgomery City

Board of DirectorsRegion 1 Ricky Baker, CIC, ChillicotheRegion 2 Steve Heying, CIC, St. PetersRegion 3 Chris Rupp, LUTCF, CIC, LibertyRegion 4 Wil Turner, CIC, BeltonRegion 5 Rick Naught, CIC, CPCU, Jefferson CityRegion 6 Jim Baxendale, CPCU, St. LouisRegion 7 Greg Rebman, CIC, St. LouisRegion 8 Jane Dobrinic, CIC, CPCU, St. LouisRegion 9 Lorie Downing, CIC, CarthageRegion 10 Kevin Krueger, LUTCF, BolivarRegion 11 Steve Rackley, CIC, CISR, GainesvilleRegion 12 Randy Baker, KennettAt-Large #1 Brian G. Harrison, CIC, ColumbiaAt-Large #2 Ted Schroeder, UnionAt-Large #3 Bob Feuerbacher, St. LouisCo. Rep. Dennis Smith, ColumbiaCo. Rep Bob Wagner, Columbia

Staff of the MAIAExecutive Vice President Larry CaseVice President of Operations Sheryl Van LeerVice President of Marketing Lindsay Schmidt, AIPInsurance Services Manager Leona LoethenEvents Manager Jeanne Blomberg, AIPDatabase Administrator Laura BerendzenCustomer Service Representative Theresa Flippin, AIPCustomer Service Representative Monica MizeEditor Amy J. HoffmanMembership Services Representative Kelli Findley, AIPEducation Director Emily KoenigsfeldAdministrative Assistant Dawn ChristianEducation Coordinator Tamie Davis

MISSOURI AGENT (USPS 709-210) is published bimonthly by the Missouri Association of Insurance Agents, 3315 Emerald Lane, Jefferson City, MO 65109, phone 573-893-4301. Periodical postage paid at Jefferson City, Mo.

The MAIA does not necessarily endorse any of the com-panies advertising in this publication. Subscription rate for members is $25 per year, which is included in dues.

Address & Other Changes

Notify the MAIA if you change your address, change your agency name, or drop or change producers (who are voting members of the association). Write to MAIA, P.O. Box 1785, Jefferson City, MO 65102-1785 or e-mail [email protected].

POSTMASTER: Send address changes to MAIA, P.O. Box 1785, Jefferson City, MO 65102-1785.

© 2010 Missouri Association of Insurance Agents

On the Cover: Though budget woes sidelined much of this year’s state legislation, Missouri Agent still finds many 2010 bills passed and considered to be enlightening for Missouri’s independent agents.

Volume 19, No. 4

MEM Insurance 2Meramec Valley 44Missouri Rural Services 38M.J. Kelly Co. 20National Lloyds Insurance Co. 42Patriot Risk Management 17Ringwalt & Liesche 16Sagamore Insurance Co. 13SECURA 34Surplus Lines Association of Mo. 29Utica National Insurance Group 40Virtual University 36West Bend 8WineryPak Insurance Programs 12

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Tips for getting the best return on your investment

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In the past year as your president, I have learned a lot of things about our association and our members. One thing that stands out is how much potential there is for MAIA members to benefit from their membership and how very few of you take full advantage of it.

I have to admit that until I was on the board, I didn’t realize all MAIA offers, even though it is on their website, in printed brochures and is communicated in various other ways. Since this is my last article, I wanted to point out the best ways you as a member can benefit from your association to get a return on your investment in both time and money.

First, take advantage of the educational opportunities. Start by taking the time to get on the website and really look at all the options available to you as an agency owner, producer or CSR. We are all struggling on how to train new staff or new producers while maintaining expenses. The Missouri LearnCenter program is up and running online under the education tab.

Several years ago, we had an online “101” class for insurance as a planning goal for members. I am so pleased that the Education Committee has worked very hard and put this package together for members through the Virtual University. It gives you a 90-day recommended training schedule, and employees can take the classes online in their offices. It’s an inexpensive resource for training.

Under Virtual University, there are all kinds of insurance resources, white papers and an “Ask the Expert” feature for insurance questions and clarification. There are also free classes covering several different topics for member use.

One of my goals when I started this year was to get more training for the life-health side of our agencies. We know that almost every member has some business in this area,

so we went to the membership to start a life-health subcommittee, and they delivered. The August Risk Specialist Series course will cover employee benefits. I encourage you to send your producers or CSRs to this meeting, as it is jam-packed with information, as well as panel discussion from agents in this field.

Second, get to know the MAIA staff and what they offer. They are a wealth of information for you and the key to MAIA’s success. In observing them over the past few years, I can tell you Larry Case and the staff are focused on serving the members. Whether working with the committee chairs, board members or the executive committee, they are full of ideas, have positive, “can do” attitudes and are generous with their time.

Third, get involved! Start by joining a committee, attending conferences and networking with other agencies. I know one of our board members came to a Small Agency Conference and felt it was so beneficial that he joined a committee and now is on the board. He tells me he has gained more than he has given even though he has a long drive including overnight stay for our meetings.

You can also get involved by giving to the state and national political action committees. In a recent survey, we found that 94 percent of you reported that legislative and regulatory advocacy is important, but only 16 percent feel contributions are important. Unfortunately, in our political world, we have to make contributions to make an impact for insurance issues.

Is $25, $50 or $100 too much to contribute toward your career? We cannot sit back and think it is just going to happen. You need to get involved with a donation, as well as by

Belinda BrenizerMAIA president

continued on page 16

fromthepresident


No feud here, but show me anyway ...

One of the more successful daytime game shows that appeared on television over the years was “Family Feud.” The game pitted families against each other to come up with the most popular answers to surveys. I was reminded of this show as I reviewed results from the recent membership survey we conducted in advance of the association’s planning meeting.

Frankly, I think I would have performed pretty well in guessing your responses to the survey questions. I hope that means that MAIA is staying ahead of the game in understanding your current challenges and concerns and anticipating your future needs. I also hope it means that you view us as an important member of your team that you can count on anytime you call on us.

So what did you say? Well, “the survey said”:1. The top reasons you join MAIA are –• for advocacy and to have one voice in legis-

lative and regulatory arenas.• for errors and omissions insurance.• for education programs.• for other association benefits and services.• because it’s the right thing to do.• for information.• for networking opportunities.

2. With regard to MAIA’s performance –• You agree (44 percent) or strongly agree

(38%) the benefits you receive from MAIA are worth the dues you pay. (Just 3% dis-agree.)

• You agree (47%) or strongly agree (35%) the association is responsive to your needs. (Just 1% disagree.)

• You agree (29%) or strongly agree (62%) the association staff members are helpful when contacted. (Just 1% disagree.)

3. On services important to you –• You feel that the Education Bulletin, Agents

Newsline and other bulletins are important (55%) or very important (42%). You feel MAIA delivers information to you reason-ably well (14%) or very well (84%).

• You believe legislative and regulatory advocacy is important (29%) or very important (65%), and 100% of you believe we deliver.

• You think the Missouri Agent magazine is important (48%) or very important (44%), and 100% like it.

• You consider the website important (51%) or very important (38%), and 98% are satisfied with it.

• You feel the E&O coverage we offer is important (23%) or very important (59%), and 98% like our client service.

• You think company advocacy is important (45%) or very important (36%), and 95% feel we deliver.

• In a tie, 74% of respondents rated both the Leadership Conference and the Small Agency Conference as important or very important, and 100% believe the events are conducted reasonably well or very well.

So overall, we got a pretty good report card, and you provided detailed information to help the board of directors craft a strategic plan to set a course for the next several years. However, you also presented a conundrum in the advocacy area.

You listed advocacy as the No. 1 reason you join the association. You rated it as very important and believe we represent your interests at a high level. Surprisingly, 94% of you also indicate state and national political action committees are important (29%) or very important (65%).

Larry CaseMAIA executive vice president

myturn


It’s Not Politics; It’s Your LivelihoodBoth your state and your national associations work hard to protect your business, inform elected officials about the impact of proposals on you and your clients, and help elect candidates who support your interests.

MAPAC (Missouri Agents Political Action Committee) de-pends on your donations to accomplish our goals in the Missouri Legislature. InsurPAC depends on your dona-tions to accomplish our goals in Congress.

Visit www.missouriagent.org for information on how to make your contribution today.

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Odds and endsSince many of the questions we have received in recent months involve scenarios with recurring themes, for this month we will review a variety of those scenarios, some of which have been discussed in this column previously. This will at least provide you with some short answers for topics you only occasionally consider. Non-producer compensation We still get many questions about whether an unlicensed person can receive compensation from an agency. The simple answer is yes, with the huge caveat that the person do nothing requiring an insurance producer license.

Regulation 20 CSR 700-1.202 has a detailed list of activities that require licensure, as well as a list of “safe harbors,” or activities that do not require licensure. It is therefore permissible to pay a referral fee to any person as long as that person understands he or she cannot be involved in the sale or the description of an insurance product. This may be difficult to monitor because people receiving a referral fee may want to “earn” that fee and may be tempted to become salespersons. Be sure that you clearly convey to any person receiving a referral fee that any sales involvement is prohibited.

Agent and broker No, I haven’t forgotten that there are no longer agent and broker licenses, only a uniform producer license. But the theories of agent and broker still exist. The simplified distinction is that an agent represents a company and a broker represents the policyholder. Those basic descriptions are still important because the duties of the producer may vary depending on which of the parties the producer represents in the insurance transaction.

The producer cannot fully be a representative of both parties; therefore, questions of payment obligations, notice obligations, binding authority and other legal obligations under an insurance contract can be influenced by the role the producer has undertaken. When a producer has an appointment pursuant to a contract with a company, that producer’s role is generally one of an agent subject to the contractual limitations. However, there are companies that operate contractual relationships in which no agency authority is granted and the producer is considered to serve in the role of a broker. Producers should always

try to be clear in working with a company which role they are undertaking for the transactions with that company.

Producer compensation and incidental feesProducers generally have two methods for compensation other than commissions from premium. The first is the use of the Producer Service Agreement pursuant to 20 CSR 700-1.100. The Producer Service Agreement allows additional compensation to be collected by the producer from the policyholder if the agreement lists the policies and coverages, the compensation to be paid by the policyholder to the producer, and the services to be provided by the producer. If the policyholder signs the agreement, the compensation to the producer is authorized.

The second method of additional compensation is an incidental fee pursuant to section 375.052 RSMo and regulation 20 CSR 700-1.150. The difficulty with incidental fees is that they must charge for a specific service or cost as generally described in the statute and regulation; the services or costs recognized by the statute and regulation are somewhat limited; and the fee must be disclosed in writing to the insured and must be posted conspicuously in the agency office. While for certain services such as premium installments, late fees and policy reinstatements, the incidental fee may be a consistent way for the agency to operate, in many situations, the Producer Service Agreement may be more efficient.

Website disclaimersAlmost all producers we call have disclaimers on their voicemail that nothing can be bound by message. Producers need to be likewise prudent in placing a disclaimer on their website as to the services of their agency that cannot be provided via the website, whether it is the binding of coverage, completing an application or reporting a claim. Don’t leave an impression that a service is available by website or e-mail message via website unless that service really is available. This disclaimer is just as important as the privacy notices included on any website receiving confidential information.

Lewis E. Melahn, JD

Lewis E. Melahn is a practicing attorney in Jefferson City. He provides free legal consultations to MAIA members on a limited basis. He served as di-rector for the Missouri Department of Insur-ance from 1989-1993. You can contact Lew Melahn at 573-636-5057.

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I used to think EMC was ju st for niche commercial programs. Then again, I used to think that chocolate milk came from brown cows.

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3431_MisAgnt_Milk_C_7.5x10clr.indd 1 3/11/09 3:50 PM


I used to think EMC was ju st for niche commercial programs. Then again, I used to think that chocolate milk came from brown cows.

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcinsurance.com

© Copyright Employers Mutual Casualty Company 2009 All rights reserved

MAKE EMC YOUR CHOICE FOR MAIN STREET BUSINESSWhen you think main street business, start thinking about the EMC Choice® Businessowners Program. Small and midsize businesses will enjoy the flexible coverage options designed to meet their specific insurance needs, the added value of free loss control services, plus the responsive service from an EMC branch office nearby. So if you still think EMC is just for niche programs, think again. Count on EMC ® for your main street commercial lines marketing, too. For more details, contact your local EMC branch office.

3431_MisAgnt_Milk_C_7.5x10clr.indd 1 3/11/09 3:50 PM

With the recent announcement that A.M. Best Co. is withdrawing its public data rating assignments on U.S. health insurers, agencies may be wondering how to evaluate the financial strength and claims-paying ability of the health insurers with which they are placing their clients’ coverages.

While there is no process guaranteed to predict the future performance of any company, agencies can establish a prudent procedure to help navigate the evaluation of carriers not rated by A.M. Best Co.

As a starting point, agencies may consider the following steps:

1. Consider using the current ratings from Moody’s, Standard & Poor’s, or Fitch Ratings Insurance Group in establishing minimum financial ratings to develop a list of approved carriers with which the agency will place business. For example: • Standard & Poor’s: BBB, as defined on

the S&P website, indicates an insurer has good financial security characteristics but is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings. (www.standardandpoors.com)

• Moody’s: A is defined on the Moody’s Rating website as being considered an upper-medium grade, and these companies are subject to low credit risk. (www.moodys.com)

• Fitch Ratings Insurance Group: BBB is defined on the Fitch Ratings website as moderate credit risk. (www.fitchratings.com)

2. Make the approved list part of the written agency procedures used by all agency staff. Reiterate to agency staff that these are the only carriers with which they are authorized to place business.

3. If the agency allows exceptions for placing business with carriers not on the approved list, make sure there is a written approval

process in place. We recommend designating either an individual or a ratings committee to handle this process.

4. Verify the current standing of the carrier with its resident state’s department of insurance.

5. Determine if the carrier is protected by any applicable guarantee fund by using the National Organization of Life and Health Insurance Guaranty Associations’ website. (www.nolhga.com)

6. Communicate the known financial criteria to the customer at the time the quote is presented, at renewal and any time there is a significant change in financial condition mid-term.

7. Consider including disclaimer language in your proposals to clarify that while the financial rating of the company may indicate that it is financially stable at the time of placement, it is not a guarantee of future performance and, further, that the agency is not an expert in the financial analysis of insurance companies.

8. Review the approved carrier list at least semi-annually for changes in financial ratings, and update the list accordingly.

9. Review your agency errors and omissions policy for any limitations for placing coverage with carriers rated below a certain level or not subject to state guarantee funds.

The financial environment in which agencies operate is constantly changing. By establishing a process, updating information, sharing the information with your clients and documenting your customer files accordingly, your agency will be better prepared to proactively address the changes that are certain to come in the future. You can find sample customer letters regarding changing carrier rates on the Big “I” risk management website, E&O Happens, at www.iiaba.net/EOhappens.

Analysis of unrated carriers: 9 Best Practices for insurance agencies

Swiss Re

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These Best Practices are intended to be used for general informational purposes only and are not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. Copyright 2010 Swiss Re America Holding Corp.

12 missouriagent july/august 2010

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Trusted Choice benefits to be included in membershipIn the May-June issue of Missouri Agent, we announced the decision of the IIABA board of directors to implement the Trusted Choice branding program across the membership. At the recent MAIA board of directors meeting in May, your state board of directors voted to implement the change Sept. 1, 2010, in order to expedite the members’ access to the benefits and potential marketing reimbursements available through the Trusted Choice program. What this means for your agencyIn exchange for a slight dues increase, all member agencies will be able to fully participate in the branding program, which previously cost $250 for agencies with fewer

than 10 employees and $499 for agencies with 10 or more. Now, all member agencies will have access to the Trusted Choice logo, co-branded advertising for all types of media, marketing materials such as brochures and office signs, and more. All that’s necessary for MAIA members is to sign the Trusted Choice Licensing Agreement, which contains the program’s Pledge of Performance, available on the Trusted Choice website at www.trustedchoice.com/licenseagreement. Additionally, MAIA will mail each agency a frameable Pledge of Performance to proudly display in their offices.

The new dues structure, which is now being developed by a task force within the MAIA board of directors, will be implemented for Sept. 1, 2010, (sent beginning in July) and all subsequent

&news know-howEXTRA!


renewals. All member agencies, however, will be considered Trusted Choice agencies starting in September, regardless of when their MAIA membership renews.

We fully expect this change to be beneficial to all of our member agencies. Those that are already participating in Trusted Choice will see a significant decrease in their total dues expenditure, and all MAIA member agencies will have the opportunity to recoup several times the small increase in their dues through the Trusted Choice Marketing Reimbursement Program. In essence, every MAIA member will have the opportunity to put money in their pocket from this change.

Trusted Choice Marketing Reimbursement ProgramThe program will reimburse agencies 50 percent of the initial cost of items such as letterhead, business cards and signage that is branded with the Trusted Choice logo, up to a maximum of $250. The program also allows for a separate reimbursement of up to $250 for the setup or redesign of an agency website using the Trusted Choice logo, bringing the total possible benefit to $500 per agency per calendar year.

The marketing reimbursement program serves agencies on a first-come, first-served basis and continues until the funds are exhausted. The program’s funds will be refreshed for the last time with the beginning of the fiscal year, September 1. MAIA members will therefore have an advantage over agencies in other states by becoming Trusted Choice agencies at the time the new funds become available. For the complete rules and a list of items eligible for reimbursement, contact Kelli Findley at [email protected].

Big “I” and Trusted Choice logosWith the addition of the Trusted Choice program as a membership benefit for all members, the Big “I” has introduced a new national association logo. It features the words Independent Insurance Agent embedded within the eagle “swoosh” used in the Trusted Choice logo. The change is intended to make the IIABA logo more harmonious with the Trusted Choice logo.

While the new association logo will be available to members upon request, it is intended for national and state association use in industry communications. Member

agencies are encouraged to co-brand their agencies with the Trusted Choice logo and the tagline, “You Need an Independent Insurance Agent.SM” The more agencies that make use of the Trusted Choice logo, the stronger the brand will become. Those agencies just now entering the program are already benefitting from strong, community-centered branding by the 10,000 agency locations and 53 carriers that chose to participate over the last nine years.

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Social networking is not new. This may surprise you, but let’s take a closer look at the terms. Social means forming cooperative relationships and interacting with other people. Networking is the cultivation of productive relationships in business. As an insurance agent, you’ve been doing these things your entire career.

The only change is that social networking has expanded to the Internet. Hearing about all the new technology can be daunting. My advice is to push that to the back of your mind and focus instead on how our society is changing – and how it is staying the same.

You may be thinking, “I’d like to push all of this to the back of my mind and ignore it completely.” Consider this: With 14 billion web searches a month, 300 million people on Facebook, 42 million on LinkedIn and 10 million on Twitter, there is no doubt that your customers are seeking information online. You may not personally like Facebook or want to deal with having an agency website, but in this case, it’s not about you. If your customers are there; you’d better be there, too.

Step One: Take a deep breath and recognize that you already know how to do this.Let’s take the mystery out of what your customers are doing online. People are connecting, collaborating and sharing — this is the same stuff you’re used to doing on the golf course, at a cocktail reception or during a local chamber meeting. An experienced insurance agent is constantly meeting new people and cultivating relationships.

Social networking sites are simply an open invitation to expand and enrich your network. They are not designed to replace face-to-face interaction, but to enhance it. The social web gives you some new ways to build relationships by allowing you to stay connected with people between meetings and events. It also helps you strengthen those connections by providing easy ways to share valuable information where and when your customers and business partners are looking for it.

Step Two: Do what you’ve been doing. Now do it online.The best way to get a feel for social networking sites is to try one. I recommend starting with LinkedIn. It’s mostly for business contacts, while Facebook is a mix of personal and professional that you may not be ready for yet. Spend a half-hour one evening setting up your free LinkedIn profile. Once you enter your industry, title, experience and other details, the site will start making recommendations for people to add to your network.

Groups are a great way to actively participate on LinkedIn, leading to new people and new relationships. If you’re trying to get more business in a certain market, search for a group by industry, for example, a restaurant owners association. Join the group, listen to what people are saying and be ready to contribute your expertise when the opportunity arises.

If you don’t feel comfortable jumping into the conversation, go back to the skills you’ve honed at in-person networking events. Just as you would introduce yourself and engage in conversation with a person standing in front of you, start discussions online by getting to know people and sharing information back and forth first. You wouldn’t barge into a cocktail reception shouting that you sell insurance and throwing business cards at people.

The same principles of networking apply online: Don’t start self-promoting until you’ve established a connection with some people and have shown the value you bring to the table. You might start by offering your expertise in a discussion on the restaurant owners’ group about risk management. If you are willing to help people first, your return on the social web will be greater.

Step Three: Listen. Really listen.Part of your relationships with customers is talking with them and listening to what they need. Through social networking sites, you can listen to customers and prospects to learn about their needs and how your services fit in. When you’re “connected” with them through sites like LinkedIn or Facebook, you can read their status updates and find out what’s new with their

5 steps to find your inner social networker

Katie Herbstsenior marketing communications specialist Westfield Insurance

technology



fromthepresident continued from page 5

attending Day at the Capitol and e-mailing, calling, and talking to your state and national representatives. Let them know where you stand.

One of our goals is to do a better job in the future of letting you know what insurance bills are being considered and of sending you action alerts when extra support is needed for an important issue. We are also working with some life-health associations to make a combined effort for the mutual success of our members.

Fourth, let your company partners know

you are an MAIA member. Companies look to our association for help appointing agents when they are new to the state or wanting to expand. Our company partners have told me that agencies that are members are better educated on insurance, better managed and have greater success than agencies that are not members. Our association is well respected by the carriers, as you can see by the great support we get from them as MAIA Company Partners. If you are contracting with a company, be sure to let them know you are a member, as it could make the difference to an appointment!

Fifth, know your board members! They are your association representatives, and they want to hear about issues you are dealing with. In May, the board held its annual planning meeting. Planning meetings are hard work. We are together for two full days in a room planning for the future of our association and dealing with everything from budgets and finances to ways to make our conventions successful to ways to help our members for the future.

The board of directors has your interests at heart and wants to make MAIA the best it can be for generations to come. No one realizes the time they spend sitting in meetings, listening to teleconferences or webinars, and donating their time and travel time to you as members. Be sure and thank them: They deserve it!

It’s been a great year, and I have enjoyed getting to know so many of you during this process. Thank you, Larry and Carol and staff, for all your help and patience with me. Thank you fellow board members for your support and willingness to do whatever I asked of you. Thank you members for this awesome opportunity to serve as your president.

One of my favorite poems is, “All I Really Know I learned in Kindergarten,” by Robert Fulghum. It states, “Live a Balanced life -- learn some and think some and draw and paint and sing and dance and play and work every day some.“


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business, or you can follow their discussions to shed light on problems for which you might have a solution. If your customers are blogging, or an account you’re trying to win has a blog on the company website, you should be following them.

Another way to listen is by subscribing to Google Alerts for your agency (www.google.com/alerts). This will send you an e-mail any time your agency name is mentioned online.

It is critical for your reputation that you know what people are saying about your business. If it’s good, celebrate and thank them. If it’s bad, figure out what the problem is (by asking and then listening) and see how you can solve it. Think about the last time you had a complaint from a customer that you were able to resolve, resulting in a satisfied customer. When that takes place online, the silver lining is that not only do readers see the complaint, they also see your timely and helpful resolution.

Step Four: Go back to your business goals.As you get more comfortable with what your customers and prospects are doing online, look for opportunities to leverage social networks to accomplish your business objectives. Let’s go back to the example of attracting more business in a certain market. Ask yourself, “How can I connect with these people? Do I have expertise in this area that I could share through a weekly blog or Facebook post?”

When it comes to attracting new business overall, your presence on the social web should be directed at bringing people to your website, where they can be turned into leads. An effective website brings leads into your agency through a strong call-to-action, such as, “Request a quote.” If your website is not set up to do this, you need to take another look at your web strategy.

Social networks can also provide new ways for you to improve retention by staying connected with customers between renewals. You have a lot of value to offer your customers all year long, and one way to share it easily and effectively is through your Facebook page or a blog on your agency’s website.

Step Five. Address risks up front – and make a plan.The three most common concerns about social networking are employee behavior, customer

complaints, and errors and omissions exposure. Each of these deserves its own article, but the bottom line is that you must talk openly about these concerns and plan how to handle them.

At Westfield, we have a Social Media Advisory Committee that includes marketing, legal, human resources, information technology and information security. Getting all the right players involved up front can help you seize opportunities while managing risks. You need to have a social media policy to educate employees and set expectations.

ACT provides a great resource, “Creating a Social Web Policy for Your Independent Agency,” that will help you through this process. It also offers two example policies from real agencies, as well as an article on E&O considerations when using social media (www.iiaba.net/act at the “Websites & Social Media” quick link). These materials can help you start the conversations that need to happen in your agency.

Once you have taken these five steps, you’ve entered the world of social networking, where you will discover exciting opportunities to reach new people and businesses, and to communicate with your existing clients on a more regular basis.

technology continued from page 15

Katie Herbst can be reached at www.linkedin.com/in/katieherbst, www.twitter.com/katieherbst or [email protected]. Herbst prepared this article for ACT. For more information about ACT, contact Jeff Yates, ACT executive director at [email protected]. This article reflects the views of the author and should not be construed as an official statement by ACT.

CISR — William T. Hold Seminar Filed for 8 CE credits in Missouri Tuition: $158 ($140 Early Bird Discount*)CIC — James K. Ruble Graduate Seminar Approved for 16 CE credits in MissouriTuition: $395 (There is no Early Bird Discount for this course.) CISR — Agency Operations Approved for 7 general and 1 ethics CE credits in MissouriTuition: $181 ($163 Early Bird Discount*)

Note: St. Louis-area CISR courses are now being held at the DoubleTree Hotel in Chesterfield, not at the Ameristar Casino.

Professional DevelopmentEducation

Title Description/Date/Location

*Early Bird Discount price applies to registrations received at least two weeks prior to class date.

CISR — Personal Auto Approved for 8 p-c CE credits in Missouri Tuition: $181 ($163 Early Bird Discount*)

Students will analyze the personal auto policy and its major endorsements; learn how the PAP responds to owned, rented or borrowed vehicles; examine the personal umbrella policy and how it benefits insureds; and define who qualifies as an insured.

Dates and Locations: Sept. 7, Hilton Garden Inn, Independence Sept. 8, Show-Me Center, Cape Girardeau

Students examine the commercial coverage and cause-of-loss forms, as well as optional coverages and endorsements. They discuss business income coverages; learn to qualify a risk with specific questions and checklists; and get up-to-date infor-mation on commercial property coverages to improve their cross-selling skills.

Date and Location: Sept. 1, DoubleTree Hotel, Chesterfield

CISR — Commercial Property Aprpoved for 8 p-c CE credits in MissouriTuition: $181 ($163 Early Bird Discount*) Note: St. Louis-area CISRs are now held at the DoubleTree Hotel in Chesterfield.

CISR — Personal Residential Approved for 8 p-c CE credits in MissouriTuition: $181 ($163 Early Bird Discount*)Note: St. Louis-area CISRs are now held at the DoubleTree Hotel in Chesterfield.

This course allows students to analyze the coverage provided by the homeowners policy and its major endorsements. Participants will also learn to recognize common exposures excluded by unendorsed polices; gain an understanding of the application of coverage to specific risks; and find out who is best served with a dwelling policy.

Dates and Locations: Aug. 10, DoubleTree Hotel, Chesterfield Aug. 11, MAIA Headquarters, Jefferson City Aug. 26, DoubleTree Hotel, Springfield

CISR — William T. Hold Seminar CE credits filed and pending Tuition: $181 ($163 Early Bird Discount*)

The Hold Seminar is a special program designed for CISR designees who want to expand their level of expertise and gain greater depth of knowledge on specialized subjects to better serve their customers. Each course covers a different topic. No examination. YOu MuST HAvE YOuR CISR DESIGNATION TO ENROLL.

Date and Location: Sept. 15, DoubleTree Hotel, Springfield

CIC — Life and Health Approved for 16 l-h CE credits in Missouri Tuition: $413 ($396 Early Bird Discount*)

This course covers the basic characteristics, provisions and riders found in most life, health and disability income insurance policies. It also covers the application of life and disability income insurance to specific personal and business needs, as well as the various types of annuities.

Dates and Location: Sept. 22-25, DoubleTree Hotel, Springfield

CIC — Commercial Casualty Approved for 16 p-c CE credits in Missouri Tuition: $413 ($396 Early Bird Discount*)

This course provides an in-depth study of the commercial general liability and busi-ness auto policy forms. Students will also review commercial umbrella and excess liability, along with the issues of concurrence and self-insured retention. They will develop a better understanding of workers’ compensation and its available endorse-ments.

Dates and Location: Aug. 18-21, Hilton Garden Inn, Independence

Winners of the golf tournament

young agents conference

Young Agent of the Year Steve Naught (r) with outgoing Young Agent

Chairman Ken Pines.

Risk Management Walking Tour

Legislative Panel


scrapbookKeynote speaker

Brian Holman

Winners of the golf tournament


As one of the nation’s fastest growing MGAs and surplus lines brokers, M. J. Kelly works as if our clients’ businesses were our own. Relax and leave the risk to M. J. Kelly Company.

Garage Liability—Dealers and Service: Mobile Detailing ▪ Mobile & Motor Home Dealers ▪ Motorcycle Dealers & Repair ▪ Paintless Dent Removal ▪ Stereo & Accessories Installation ▪ Dealers Open Lot ▪ Many Other Classes

As one of the nation’s fastest growing MGAs and surplus lines brokers, M. J. Kelly works as if our clients’ businesses were our own. Relax and leave the risk to M. J. Kelly Company.

Garage Liability—Dealers and Service: Mobile Detailing ▪ Mobile & Motor Home Dealers ▪ Motorcycle Dealers & Repair ▪ Paintless Dent Removal ▪ Stereo & Accessories Installation ▪ Dealers Open Lot ▪ Many Other Classes

John M. HuffdirectorMissouri DIFP

fromtheDIFP

The next time your producer license is up for renewal, you’ll get a new type of notice in the mail from our department. The Department of Insurance, Financial Institutions and Professional Registration will be moving to postcard renewal later this summer. For many years now, we’ve sent out a multi-page renewal notice to be filled out and mailed back to us.

From now on, you’ll get a simple postcard reminding you that it’s time to renew your license, listing your expiration date and directing you to the website to renew electronically. You don’t have to be a rocket scientist (or an insurance producer) to see the advantages here: It saves money, time, paper, ink, etc., to do a smaller mailing. Besides, most of our producers are now renewing electronically, so it makes sense to stop sending out renewal notices that encourage paper renewal.

Electronic renewal is superior in other ways as well: you can pay by credit card, and if your application is clean, you’ll most likely be renewed the next day.

More than 60 percent of producers are now renewing online, compared to less than half at the end of 2008. Hopefully those of you who have taken advantage of the electronic system found it user friendly and efficient. I am interested in your individual experience.

In late May, in time for the June 1 changes, DIFP released the “2010 Missouri Medigap Shopping Guide.” This is an updated and much improved version of the guide we’ve published for several years. It’s 46 pages, gives a thorough summary of Medigap insurance and lists all the insurers that offer this coverage in Missouri, as well as the prices they charge for the various plans. As you may know, this modernization effort by CMS marks the biggest change to the Medigap program since the mid-90s, so there’s a

Department Updates


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lot of new content in this publication. Feel free to download the PDF at insurance.mo.gov and have lots of copies made for your clients and prospects.

Our department has spent much of the spring preparing for implementation of the Patient Protection and Affordable Care Act, and we expect to be busy on that front for the next several years.

I’m pleased to report (and issued a press release stating) that several major health carriers decided to implement the age 26 requirement early. The new federal law requires health plans with dependent coverage to accept adult children on parents’ policies until their 26th birthday. The change is for plan years starting after September 2010, but at least seven major carriers in Missouri decided to make the change now so that college graduates wouldn’t lose their insurance. My compliments on the decision by Anthem, Blue Cross and Blue Shield of Kansas City, Humana, Coventry, Cigna, UnitedHealthcare and Aetna.

Next up for us is the new temporary high-risk pool funded by an estimated $81 million in

federal dollars for Missouri. We have elected to apply to operate this pool at the state level, rather than allow Health and Human Services to run it. Our belief is that, with our nearly 20 years experience running a high-risk pool, the program can be better run from Missouri than Washington. We also believe Missouri can run the pool in a way that best protects consumers and is most efficient for taxpayers. We expect applications to be available to consumers at some point this summer.

We enjoy and look forward to interacting with many of you at MAIA events. DIFP Legislative Cooridinator Melissa Palmer joined a legislative roundtable at the Young Agents Conference in June, and we’ll have a booth at the Leadership Conference at the Lake of the Ozarks. Director of Communications Travis Ford and I will be there for the Eggs & Issues breakfast on July 23, as well as the installation banquet the night before.

As always, I encourage you to sign up for our e-mail subscription list. Click the link at insurance.mo.gov that says “Get insurance news fast.” Hope to see you this summer.


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How can you make more money from your exisiting business?

Summertime and the livin’ is easy Take advantage of someone else’s summer sluggishness by avoiding these summer sales myths.

False: It’s summer. Nobody’s around. Why prospect?

True: Who takes a three-month vacation?

False: It’s summer. All of my prospects are out of town.

True: All prospects vacation at the same time?

False: It’s summer. Who can prospect in this heat?

True: Your prospects are probably in their air-conditioned offices waiting for your

call.

False: It’s Friday afternoon. Prospects close early.

True: The employees leave early. The boss stays and answers the phone.

False: It’s Monday morning. Prospects don’t want me to bother them now.

True: How do you know what your prospects want? You haven’t met them yet.

False: I’m going away next week. I can’t make appointments.

True: In other words, you’re taking a two-week vacation.

False: I’m just back from my trip. I need to catch up. I’ll prospect next week.

True: See No. 6. Now it’s a three-week vacation.

False: My assistant is away. I need to stick around.

True: Great. Make some calls while you stick around.

False: My assistant is just back from vacation. We need to catch up.

True: See No. 6. Now you’re up to a four-week vacation.

False: It’s the last two weeks in August. It’s a big vacation time. I’ll get going after Labor Day.

True: See Nos. 6, 7 and 9. You’re up to a six-week vacation. Fifty-eight percent of the summer is gone.

Four additional coaching tips for summer-time sales:

1. Your competitors are probably not making calls for several of the reasons stated above.

2. Your job is to relieve your competition of the burden of their accounts so they can take more time off in the summer!

3. The prospect’s gatekeeper may be out of town. Time to turn this possible advantage into an even greater advantage.

4. Have you noticed that as major summer holidays approach, your prospects offer the objection, “call me right after the holiday”? A particularly great time to call is on the Monday and Tuesday after a holiday. They have no appointments and are waiting for your call.

Reprinted from the Big “I” Virtual University with the permission from the author. Thomas M. Redmond Jr., CPCU, is the founder and president of Redmond Group, a firm that specializes in evaluating and improving client sales processes. Redmond can be reached at 732-957-0005 or [email protected].

Tom RedmondVirtual University faculty

Top true-false thoughts for summertime prospecting


Errors and Omissions Seminar“Best Practices for E&O Prevention” focuses on proactive steps for loss control. It will provide practical, real-world errors and omissions loss prevention and reduction techniques and will help agency personnel identify tools and resources available to assist in loss control. The seminar also covers recent trends in agency errors and omissions claims.

E&O InstructorKent Anthony, First Group Insurance, Sterling, Kan.Kent E. Anthony began his insurance career in 1977 and has served as president of First Group Insurance since 1985. He is a Certified Insurance Counselor and a Certified Financial Planner. Kent has served on the board of directors for the Kansas Association of Insurance Agents and has chaired committees for both KAIA and IIABA. He is a member of the National Faculty for the National Alliance.

Agency Compliance LuncheonLed by MAIA Executive Vice President Larry Case, this working lunch covers state and federal legislative issues that are affecting the insurance industry. Case will also provide valuable information regarding association news and activities. The following are just a few of the topics to be addressed:

• Rebatingversusvalue-addedservices

• Statusandimpactoffederalhealthcarereform

• Statehealthcoveragemandates

• Statehealthpoolandexchangestatus

• Multi-statelicensingissues

• SecondInjuryFundinsolvency

• Earthquakecoveragelimitations,availabilityandaffordability

• Uninsuredmotorists

• Agencyfeesandreferralfees

• Regulationofvariableannuities

Fall Agency Compliance and E&O Seminars

Schedule Independence, Tuesday, October 19

Jefferson City, Wednesday, October 20

Springfield, Thursday, October 21

Cape Girardeau, Wednesday, November 3

St. Louis, Thursday, November 4

Agenda8-8:30 am Registration

8:30-11:30 am E&O Class

11:30 am-1 pm Agency Compliance Luncheon*11:30 am-1:30 pm in St. Louis only

1-3 pm E&O Class*1:30-3:30 pm in St. Louis only

Registration available at www.missouriagent.org.

E&O plus Agency Compliance Luncheon:$100 ($120 after Oct. 5)

Agency Compliance Luncheon only:$30 ($36 after Oct. 5)

Approved for 5 hours ethics CE.

specialfocus legislativerecap

The 95th General Assembly of Missouri adjourned May 14, 2010, at 6 p.m. Throughout its course, the legislative session was fraught with budget disagreements in both the House of Representatives and the Senate, leaving other issues, including insurance, in the background for much of the year. Of the 106 bills that were given final approval, a handful addressed topics directly pertinent to the insurance industry. Most of those dealt with aspects of health care, though one large bill with multiple provisions modified several areas of insurance regulation.

Bills that would have established the Missouri Catastrophe Fund were among those that did not even see floor debate. This solution to the lack of availability of affordable earthquakecoverageforMissourianshasbeenan MAIA priority for several years, and we hope to advance the proposal further in the next legislative session.

Bills passedHealth insurance coverage for autism spectrum disordersH.B. 1311 requires all group health benefit plans that are issued or renewed on or after Jan. 1, 2011, to provide coverage for the diagnosis and treatment of autism disorders. Mandatory coverage is capped at $40,000 annually and only applies to dependents through 18 years of age.

Payment of health insurance claimsH.B. 1498 changes the laws regarding the payment of health insurance claims. The bill contains provisions relating to documentation of denied claims, time limits for carriers to communicate with insureds and health care providers, and penalties for unprocessed claims.

Health Care Freedom Act H.B. 1764 is a broad, insurance-related bill that includes the Health Care Freedom Act, which would prohibit any law from forcing a patient, employer or health care provider to participate in any government or private health care system. This issue will be placed on the August ballot for Missouri voters.

Women’s Heart Health ProgramUpon receipt of federal funding, H.B. 1898 establishes the Women’s Heart Health Program within the Department of Health and Senior Services to provide heart disease risk screenings for women who are between 40 and 64 years of age, and meet certain financial and insurance guidelines. If federal funding is not received, the department is not required to implement the program.

Insurance regulation provisionsS.B.583 modifies various provisions of law relating to the regulation of insurance, including:• prohibition of the operation of a motor vehicle

in Missouri by a nonresident unless the driver maintains financial responsibility that conforms to the minimum requirements in his or her state of residence.

• allowance of health benefit plan enrollees to receive documents and materials from a managed care entity in printed or electronic form so long as printed documents are available upon request.

• mandate that health benefit plans must provide coverage for adopted children on the same basis as other dependents.

• requirement of reimbursement of unearned portion of premium paid when a Medicare


shedding

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supplement policy is cancelled, effective Jan. 1, 2011.

• requirement of reimbursement of unearned portion of premium paid when a long-term care insurance policy is cancelled, effective Jan. 1, 2011.

• mandate that applications and eligibility criteria for the State Children’s Health Insurance Program be distributed to state-licensed child-care providers and public schools; mandate that applications for free and reduced lunch programs require the parent to indicate whether the child has health insurance, with reporting requirements for the Department of Elementary and Secondary Education.

Insurance company financial conditionsS.B. 777 authorizes the director of the Department of Insurance to determine whether an insurance company is in a hazardous financial condition and modifies Missouri law regarding risk-based capital reporting requirements for property and casualty insurance companies.

Liquidation,dissolutionofdomesticstock insurance cos.Under S.B. 834, a domestic insurer organized as a stock insurance company may voluntarily dissolve and liquidate provided that the director of the Department of Insurance, Financial Institutions and Professional Regulation approves the articles of dissolution prior to the insurer’s filing of such articles.

Mo. HealthNet Division Program paymentsS.B. 842 modifies provisions relating to the payment of claims submitted to the Missouri HealthNet Division Program by third parties.

Life-health guarantee fundLimited provisions contained in S.B. 900 and companion bill H.B. 1904 were passed as amendments to S.B. 538. The provisions clarify

statutory language relating to covered claims and which state fund(s) applies where multi-state issues exist. The changes bring Missouri into compliance with the Guaranty Fund Model Law. The amended language in S.B. 538 did not include any increase to guarantee fund limits.

Regulation of variable annuitiesS.B. 760 allows the secretary of state to regulate variable annuities as securities. Recent MAIA surveys indicated that members engaged in the sale of variable products are already in compliance with the new law.


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Bills not passedMissouri Catastrophe FundH.B. 1468 and its companion bill, S.B. 923, would have established the Missouri Catastrophe Fund, a reinsurance fund to help protect property and casualty insurers against insolvencies that could result from a high number of claims after major seismic activity in the New Madrid Fault Zone.

No pay-no playS.B. 748 would have required uninsured motorists to forfeit recovery of noneconomic damages resulting from a motor vehicle collision with an insured driver who is alleged to be at fault.

Second Injury FundProvisions in H.B. 2059 sought to address the financial insolvency of the Second Injury Fund by making modifications that would have decreased the types and numbers of claims paid out of the fund. The bill would also have altered the funding and borrowing regulations for the fund.

Texting while driving prohibitionAmong other public safety provisions, H.B. 1205 would have prohibited any driver, regardless of age, from sending, writing or reading a text message while driving on any Missouri highway. It also stipulated that one to two points would be assessed to a driver’s license for violations.

HIPAA complianceChanges to laws regarding health insurance included in H.B. 1570 would have brought Missouri into compliance with the federal Health Insurance Portability and Accountability Act.

Mo. Health Insurance PoolH.B. 1964 would have allowed people who have exhausted their total lifetime benefits to be eligible for coverage under the Missouri Health Insurance Pool.

Health insurance contracts and plansProvisions in H.B. 1495 sought to change the laws regarding health insurance contracts and plans, including co-payments for prescription drugs, standardized insurance applications, healthcare providers and health insurance contracts.

Small employer medical coverageH.B. 1260 would have allowed certain small employers to obtain medical coverage through the Missouri Consolidated Health Care Plan.

Health insurance information reportingBoth H.B. 1251 and H.B. 1625 sought to require that Missouri income tax returns include health insurance information for any claimed dependent children. Under the bills, uncovered dependents in certain households would trigger a notice from the Department of Revenue regarding eligibility and enrollment information for the State Children’s Health Insurance Program.



Federal health care reform: a timeline and perspective for Big “I” members

2010• Insurance plans prohibited from imposing

lifetime benefit limits and restricted annual limits.

• Insurance plans required to carry dependents up to the age of 26.

• Insurance plans required to cover preventative services without cost sharing.

• Insurance plans prohibited from denying coverage to individuals under the age of 19 based on pre-existing conditions.

• Temporary high risk pool established for individuals (older than 19) who are denied coverage based on pre-existing conditions.

• Insurance plans required to report proportion of premium dollars spent on non-medical care.

• Insurance plans prohibited from rescinding coverage except in cases of fraud.

• Temporary reinsurance program created for employers providing coverage to retirees over 55 who are not eligible for Medicare.

• States begin reviewing premium trends and companies must justify increases. Plans may be potentially blocked from Exchange for unwarranted increases.

• First phase of Small Business Tax Credit: Small businesses with fewer than 25 employees and average annual wages of less than $50,000 are eligible for tax credits of up to 35 percent of the employer’s health insurance premium. Employers must subsidize at least 50 percent of their employees’ premiums in order to be eligible for the tax credit. Credit only available through 2013.

• Create the Consumer Operated and Oriented Plan (Co-Op) program to foster the creation of non-profit, member-run health insurance companies in all 50 states. Six billion dollars is appropriated to finance the program and award loans and grants to establish Co-Ops by July 1, 2013.

• Establish state websites to help residents identify health coverage options (effective July 1) and develop a standard format for presenting information on coverage options (60 days after enactment).

• Executive and employee compensation deductibility limited to $500,000 for health insurance providers.

• Ten percent tax on indoor tanning services.• Annual tax of $2.3 billion on pharmaceutical

industry (increasing to $4 billion in 2017 and back to $2.8 billion in 2019 and after).



This timeline was provided by IIABA for member use. It outlines the implementation of various provisions, including market reforms, mandates, tax credits, taxes and revenue raisers, in the Health Care Reconciliation bill, passed by Congress this spring.

• Annual tax of $2 billion on medical device industry. Annual tax is increased to $3 billion in 2017.

2011• “CLASS Act”: a national long-term care

assistance/disability insurance plan is established. The benefit amount is varied based on the “scale of functional ability” with a $50-75 per day cash benefit. All working adults will be automatically enrolled in the program unless they choose to opt out.

• Insurance plans must comply with the new medical loss ratios: 80 percent for individual and small group plans and 85 percent for large group plans. Companies required to provide rebates to consumers if they fail to comply with the MLRs.

• Funding available for states to begin establishing Exchanges until Jan. 1, 2015.

• Provide grants for up to five years to small employers who establish wellness programs.

• States have the option to expand Medicaid to 133 percent of federal poverty level (must be completed by 2014).

• Annual tax of $2 billion on health insurance companies. The tax will increase each year until reaching $14.3 billion in 2018. For subsequent years, the fee shall increase based on the previous year’s premium growth.

• Over-the-counter drugs not prescribed by a doctor may not be reimbursed through a flexible spending account nor on a tax-free basis through an Archer medical savings account or health savings account.

• Tax increase on distributions for non-qualified medical expenses from an HSA (from 10 to 20 percent) or an Archer MSA (from 15 to 20 percent).

2012• Impose an excise tax of 2.3 percent on the

sale of any taxable medical device.

2013• Increase Medicare tax rate on employee

wages by 0.9 percent (from 1.45 to 2.35 percent) on earnings over $200,000 ($250,000 family) for individual taxpayers – not indexed for inflation.

• Impose a new 3.8 percent tax on unearned income for higher-income taxpayers ($200,000/$250,000 threshold) – not indexed for inflation.


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Health care timeline continued from page 27

• Tax of $2.6 billion on insured and self-insured plans to fund comparative effectiveness research.

• Contributions to FSAs limited to $2,500 per year.

2014• State-based American Health Benefit

Exchanges and Small Business Health Options Program (SHOP) Exchanges are implemented and open to individuals and small businesses (2-100 employees). Exchanges will include four tiers of private plans, OPM multi-state plans and co-op plans.

• Premium credits available via exchanges for individuals and families with incomes up to 400 percent of federal poverty level who do not receive employer-based coverage or whose employer-based premiums exceed 9.5 percent of their income.

• Insurance plans required to abide by guarantee issue, minimum benefit standards, revised rate bands for individual and small-group market (2-100 employees).

• Employers with more than 200 employees would be required to automatically enroll employees into health insurance plans offered by employer (employees may opt out).

• Phase II of Small Business Tax Credit: Small businesses with fewer than 25 employees and average annual wages of less than $50,000 are eligible for tax credits of up to 50 percent of the employer’s contribution toward the employee’s health insurance premium. Employers must subsidize at least 50 percent of their employees’ premiums in order to be eligible for the tax credit. Credit only available for two years.

• Employers with more than 50 employees who do not offer their employees health insurance will be subject to a $2,000 tax penalty per full-time employee per year if one of their employees is eligible for a tax credit subsidy (first 30 employees exempted from calculation).

• Individuals required to purchase health insurance or face a tax penalty of up to $695 per year (capped at 2.5 percent of income).

• States must expand Medicaid to 133 percent of federal poverty level. States will receive 100 percent federal financing from 2014-16, 95 percent financing in 2017, 94 percent financing in 2018, 93 percent financing in 2019, and 90 percent financing in 2020 and beyond.

• Allow states the option of merging the individual and small group markets.

• Limit any waiting period for coverage to 90 days.

2016• Permit states to form health care choice

compacts and allow insurers to sell policies in any state participating in compact. Insurers selling policies through a compact would only be subject to laws of the state where policy is written (except consumer protection laws). Compacts will only be approved if it is determined the coverage will be at least as comprehensive and affordable as coverage through Exchanges.

2017• States are permitted to allow businesses

with more than 100 employees to purchase coverage in SHOP Exchanges.

2018• “Cadillac tax” takes effect. A 40 percent

tax is administered to insurers of employer-sponsored health plans with aggregate values that exceed $10,200 for individuals and $27,500 for families. The tax is applied to the amounts that exceed the threshold, and it will be indexed for inflation.


author picture

Do not modify ACORD certificatesA major cause of errors and omissions claims for agents results from the use of certificates of insurance. We all have insureds who have entered into agreements or who have jobs requiring that they provide certificates with terms or conditions that are impossible to fulfill or that conflict with the actual policy’s terms and conditions. In the past, too many agents have provided to insureds certificates that were modified, contained incorrect information or exceeded the agent’s authority. Not anymore!

This past September, ACORD released new, revised ACORD 24 and ACORD 25 forms. In Missouri, these forms are filed by ACORD on behalf of its member companies with the Department of Insurance, Financial Institutions and Professional Registration. ACORD has made it clear that once agents have access to the new

forms on their agency management systems, they are required to stop using the old forms. Agency management vendors were given 12 months to remove the old forms and to make available the new ones.

Among the changes to the new certificate form is the elimination of a time period within which notice must be given to the certificate holder. There is no notice requirement under the current certificate because it would conflict with the policy terms, and this cannot be changed without a policy endorsement.

While a lot of time can be spent explaining why the new forms were created, and the changes thereto, one important fact that should be noted is that many agents were inserting incorrect information on certificates,

Tim WahlGallaher Insurance GroupMAIA Technical Committee


SUPPORT YOUR MISSOURI WHOLESALERSFor all hard-to-place, Excess and Surplus Lines and specialty accounts.

Call the people that support your organization.

P. O. Box 67 • Jefferson City, MO 65102-0067(573) 635-0736

3D Star Insurance Services 314-436-3318 Fax 314-436-4309 www.3dstarinsurance.comAmerican Surplus Lines Agency, Inc. 913-888-8400 877-642-2752 Fax 866-936-0400 www.ASLAINC.netBohrer, Croxdale & McAdoo 417-869-2550 800-779-2550 Fax 417-869-5102 www.bcmins.comBurns & Wilcox - St. Louis 314-819-0400 800-331-4128 Fax 314-819-0440 www.burns-wilcox.comChris-Leef General Agency, Inc. 913-631-1232 800-548-0491 Fax 913-631-1128 www.chris-leef.comContinental American Agency, Inc. 314-241-7969 866-764-8451 Fax 314-241-1474 www.caains.comDavidson-Babcock, Inc. 913-469-1188 800-203-3223 Fax 913-469-1177 www.davidson-babcock.comGateway Underwriters Agency, Inc. 314-238-0070 800-325-7652 Fax 314-238-0065 www.gua-stl.comGraham-Rogers, Inc. 918-336-2800 800-456-8123 Fax 918-336-7196 www.graham-rogers.comGresham & Associates 417-823-3924 866-251-9646 Fax 417-823-3979 www.gresham-inc.comJ.M. Wilson 816-561-6700 800-507-8656 Fax 816-561-3331 www.jmwilson.comMed James, Inc. - Kansas City 913-663-5500 800-255-6503 Fax 888-216-2014 www.medjames.comMed James, Inc. - Springfield 417-886-3535 800-255-6503 Fax 417-886-2295 www.medjames.comMed James, Inc. - St. Louis 636-524-0080 866-255-6503 Fax 636-524-0088 www.medjames.comMidwestern General 816-246-1200 Fax 816-246-1290 www.mgakcmo.comM.J. Kelly Company 417-883-2688 800-725-7211 Fax 800-678-7211 www.mjkelly.comM.J. Kelly of St. Louis LLC 314-416-4343 877-416-4343 Fax 314-416-4344 www.mjkstlouis.comS.A. Freerks & Associates 314-436-2682 800-342-2601 Fax 314-436-1532 www.safains.comSwett & Crawford 314-821-2699 Fax 314-822-2135 www.swett.comWestrope 816-842-8222 Fax 816-842-3081 www.westrope.com

Association of Missouri

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technicalities


information which was not in the policy(ies). The certificate is only supposed to confirm what the policy provides, but because of the way they were being prepared, they included a lot of information that did not appear in the policy. As a result, many states started to penalize agents for putting incorrect policy information on certificates. Misrepresentation of coverage on one certificate in Louisiana, for example, can mean a severe penalty for the agent, including a possible $5,000 fine, up to five years in prison, or both.

In Missouri, DIFP Director John Huff issued Bulletin 10-02 regarding certificates. The

bulletin is very clear: If an agent misrepresents the terms of the policy on a certificate (whether it be the old or new certificate form), the agent will be considered to have committed a level two violation under the Unfair Trade Practices Act. The fine for each level two violation is $1,000, up to an aggregate civil penalty of $50,000 for multiple violations.

The department’s bulletin goes on to say:

The only way an insurance producer can be certain that he or she has not varied or misrepresented the terms of the policy is to use the certificate of insurance form authorized by the insurer or to secure the insurer’s pre-approval of the altered certificate.

Agents Beware!Agents are well-advised not to modify or misrepresent any information. Missouri agents modifying a certificate of insurance by providing such information as the policy being subject to a waiver of subrogation, providing additional insured status on a primary non-contributory basis, or including a statement that the coverage is subject to a per-project aggregate need to make sure the policy provides these provisions. Otherwise, an agent may be confronted with not only an E&O claim but also a level two violation. In addition, there is nowhere on the new ACORD certificate that gives any notice of cancellation, whatsoever. The only notice the insurer is usually obligated to give under the policy is to the first named insured.

Agents issuing certificates showing the holder as additional insured using a blanket additional insured endorsement need to be aware that 95 percent of these endorsements require the insured to have a written contract in place that states the insured will add the certificate holder as an additional insured. If an agent issues a certificate noting additional insured status (under a blanket endorsement) without verifying that the insured actually has a written agreement in place to activate coverage, the agent is likely to have just committed a level two violation and be subject to a $1,000 fine.

Many ISO additional insured endorsements also contain limitations of coverage. For example, they no longer provide the additional insured

technicalities continued from page 29


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with sole fault coverage. If a contract required sole fault coverage under an additional insured endorsement but the endorsement did not provide coverage, a problem could be expected if the certificate reflects that coverage complies with the contract requirements.

The law says you cannot misrepresent the benefits, advantages, conditions or terms of any policy. If you show a certificate holder as an additional insured when in fact the certificate holder is not, for any reason, you may be confronted with a level two violation fine and a possible E&O claim for misrepresentation.

While reviewing blanket additional insured endorsements and the importance for correct information on certificates, be aware of requests made to list additional insureds like:

1) ABC Inc., its employees, officers, directors and subsidiaries, or

2) ABC Inc. and its direct and indirect parents and subsidiaries; any of their affiliated entities, successors and assigns; and any current or future director, officer, employee, partner, member or agent.

These requests simply cannot be handled by the ISO Blanket Additional Insured form CG 20 33, nor most company manuscript forms. I’ve only seen one blanket additional insured form which would provide additional insured status to those entities listed above, and the reason the endorsement provided coverage was due to the fact that an oral agreement was made and covered if a certificate was issued.

If an agent encounters a request to add additional entities, other than the party who signed the contract with the insured, the agent will need to request the additional insured be specifically scheduled on the policy via endorsement. Make sure the company lists the additional insured as “ABC Inc., its employees, officers, directors and subsidiaries,” or “ABC Inc. and its direct and indirect parents and subsidiaries,” etc., thereby granting all parties additional insured status.

For agents who run into problems with third parties accepting new certificates, the Big “I” Virtual University has put together an excellent one-page document, which we have included for your review on page 33. It can also be found by logging in to the VU and clicking on the link, “Why We Are Using the Latest ACORD 25 Certificate of Insurance” under Certificates and Notice of Cancellation.

It is a useful resource as you begin to explain to your clients why you cannot comply with the requirements of the contract that your client signed (without having the requirements reviewed by you in the first place) and why you cannot modify the certificate of insurance.

A certificate of insurance is an E&O claim waiting to happen, and under Missouri statute can be a violation of the Unfair Trade Practices Act, which is a level two violation and subject to substantial fines and penalties. You cannot be too careful in completing a certificate; never modify the form without written authorization from the insurer.

Visit our Web Site at— www.bcmins.com

Phone: 417.869.2550 / 800.779.2550 Fax: 417.869.5102 / 888.869.2550

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Our experienced team of insurance professionals work diligently to provide specialized insurance coverage for the professional.

Miscellaneous Errors & Omissions


Big “I” ACORD 25 notice form

Why We Are Using the Latest ACORD 25 Certificate of Insurance

Note: The underlined sentences below should only be used in states that require certificates to be filed. Be sure

to check each statement below to make sure that it accurately reflects your state laws and agency/company

agreements. Then delete this paragraph and any other inapplicable comments before providing a copy of this

form to a certificate requestor.

In September 2009, ACORD revised the ACORD 25 Certificate of Insurance form. One of the major changes was

the removal of the cancellation notice provision. For the following reasons, we are unable to issue an older

edition of this form, modify the current form, or complete a proprietary form you provide:

• ACORD certificate forms must be filed and approved for use in our state. When a new form is approved,

prior versions can no longer be used. Therefore, it is illegal for us to issue anything other than the currently

approved ACORD form.

• Notice of cancellation is a policy right, not an unregulated service. No insurer shown on this certificate is

able to provide the cancellation notice you desire by endorsement. For example, the insured can cancel

immediately, so it would be impossible for the insurer to give you the notice you request. State law also

grants the insurer the right to cancel for reasons such as nonpayment with less notice than you require.

• For the reason just cited, if our agency was to issue a certificate that provides the cancellation notice

you request, we would do so with the full knowledge that it would be impossible to actually give that

amount of notice under certain circumstances. As such, the certificate could be alleged to constitute a

misrepresentation or fraud which could subject our agency and staff to serious civil and criminal penalties.

• If a certificate purports to provide a policy right different from that provided by the policy itself, then the

certificate effectively purports to be a policy form. Policy forms must be filed and approved by our state

department of insurance. Use of nonfiled policy forms is illegal and could result in legal sanctions distinct

from the assertion that the certificate is fraudulent.

• Under the ACORD Corporation’s licensing agreement, the prior editions of superseded forms can be used

for one year from the time the new forms are introduced. Beginning in September 2010, this is another

reason we cannot use an older edition of the ACORD 25. Doing so would violate ACORD’s licensing

agreement and, as a copyrighted document, federal copyright law.

• Likewise, we are unable to modify the new certificate to add a notice of cancellation. ACORD forms are

designed to be completed, not altered. ACORD’s Forms Instruction Guide says that a certificate should not

be used “To waive rights...To quote wording from a contract...To quote any wording which amends a policy

unless the policy itself has been amended.” Also, since our state requires ACORD forms to be filed, any

alteration to a filed form would require its refiling. In addition, our insurance company contracts only allow

us to issue unaltered ACORD forms.

• We are often asked to issue proprietary certificates provided by the certificate requestor. Again, our

insurance company contracts only allow us to issue unaltered ACORD forms. In addition, our state requires

the filing of all certificates of insurance and has very specific regulatory guidelines on certificate language.

Many proprietary certificates include broad, vague or ambiguous language that may or may not be

incompliance with state laws, regulations, and insurance department directives. Therefore, we cannot issue

any proprietary certificates that have not been reviewed by our state insurance department.

You may be interested in how the City of Atlanta, Georgia is now reportedly dealing with this issue based on a

very detailed study they conducted in 2008.

http://tinyurl.com/26guax8

We appreciate your understanding of the legal restrictions on our ability to fully comply with your request.

This document, pro-vided by IIABA and

available on the Vir-tual University, may

be used to explain to clients the provi-

sions of the new ACORD 25 form.

See “Do not mod-ify ACORD Certifi-cates,” starting on page 29 for more

information.

Success is finding an advantage.

If you want to win, you have to come prepared. Agents know this. That’s why so many choose

SECURA to grow their business. Please call us at 1-800-558-3405. Write your own success story.

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Success is finding an advantage.

If you want to win, you have to come prepared. Agents know this. That’s why so many choose

SECURA to grow their business. Please call us at 1-800-558-3405. Write your own success story.

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It’s not too late! Register today for the 2010 Leadership Conference

make it pretty. three or four pictures for you to use as needed

care to Supreme Court nominations. Is the intensity and animosity of today’s political climate unprecedented or exaggerated? Or is this just business-as-usual Washington politics? And how has an intense political climate impacted the Obama Administration’s agenda? What affect will it have on the upcoming 2010 midterm elections? One of the most trusted voices on the political spectrum, William Bennett addresses these questions and more.

Best Practices educationLast year, MAIA made a renewed commitment to education at the Leadership Conference by creating a new platform for education sessions based on Best Practices recommendations. Building on the success of that implementation, we are bringing you three new sessions, each designed specifically to help leaders in the insurance industry implement Best Practices workflows and recommendations.

“Top 10 Ways the Best Practices Agencies are Kicking your Butt,” presented by Chris Amrhein, will identify proven techniques to thrive and will cover benchmarking strategies to help you determine your agency’s standing.

“Best Practices of Highly Effective Leaders,” presented by Steve Anderson, will explore the five most important practices of real-world business leaders and help participants build a strategy for bringing those practices into their agencies.

“Top Tech Tips Every Agency Manger Should Know,” also presented by Anderson, will highlight easy-to-implement tools and workflows that will give your agency an edge in the rapidly evolving world of technology.

Keynote speaker William Bennett presentsDivided or United? A Look at the Political Landscape

In today’s political culture, Democrats and Republicans divide on practically everything, from the war in Iraq to gay marriage to health

The Buzz from 2009:Best conference so far. Best Practices sessions were great, and Mike Huckabee was outstanding. Already looking forward to next year!

Between the sessions, our keynote speaker, the exhibit hall, etc., I felt this was one of the best conferences I have ever attended. The material presented was of high importance to me and was very helpful.

This may have been the best LC [Leadership Conference] I have ever been to!

Love the way the exhibit hall is working now. You all have that figured out for everyone.

Your conference gets better every year.

Photos on this page from the 2009 Leadership Conference, including an autograph-signing by keynote speaker Mike Huckabee (below).

Register online now at www.missouriagent.org.


MAIA announces new Missouri LearnCenterAre you thinking about hiring a new employee for your agency? Maybe you need a new commercial customer service representative, benefits producer, commercial lines producer or personal lines CSR. However, you don’t have any idea what to do with this new person in order to get them trained. And, you need a plan that will be cost effective and not take them out of your office for a period of time.

For the past year, the MAIA Education Committee has been tackling this problem, and we have a solution for you. The MAIA website now has a “New Employee Training Guidelines Outline.” You can access the outline from MAIA’s Education Calendar at www.missouriagent.org. It will guide you through a structured process for the first 30-day probationary period, followed by a 60-day educational period and finally, after 90 days, the licensing period.

Within this outline, there are links to the new Missouri LearnCenter. We have partnered with Virtual University to set up a list of courses arranged by topic of study. Categories include:• Personal lines• Commercial lines• Life and health• Technical insurance

• Business skills• Free courses

Online education is convenient and flexible

and is a valuable time-saver for today’s busy insurance professional. Beginning, intermediate and advanced classes are available anytime from anywhere. The content is one of a kind, designed specifically to meet the needs of independent insurance agents. Many of these courses also provide continuing education credits if needed.

The LearnCenter offers customized online training that allows you to track the progress of your new employee, and they can take courses geared to their needs in your office. Use your MAIA user name and password to receive member rates for classes.

Take a few minutes to check out this great new resource. You will find that hiring a new employee and turning that person into a trained and licensed CSR or producer isn’t as formidable a task as it might have seemed in the past.

I also want to be sure you are aware of the Elite Force Sales Training School brought to you by MAIA. Once your new producer has a good coverage foundation from the Missouri LearnCenter, you will want to enroll this person in the next session of Elite sales training. There is a link on MAIA’s website for this program as well.

Kathy Riley

Charles L. Crane Agency Co.

MAIA Education Committee Chairman

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After more than 20 years of service with MAIA, former vice president of operations, Carol Dulle, has left the association and headed west – but not for a milder climate and a comfortable retirement. Effective June 1, 2010, Dulle became the new chief executive officer of the Kansas Association of Insurance Agents. She replaces Larry Magill, who passed away in January 2010.

The KAIA board of directors selected Dulle because of her experience managing a state agents’ association and in recognition of her significant contributions to both the Missouri and national associations, as well as to the industry at large. Dulle was first hired as an editorial assistant for the Independent Insurance Agents of Missouri in 1989. Four years later, under a newly consolidated state association that represented both IIABA and PIA, Dulle was promoted to marketing director. She subsequently took on the position of director of operations and was finally promoted to her most recent position of vice president of operations in 1999.

Throughout her tenure with MAIA, Dulle demonstrated an outstanding willingness to take on new duties and to be a leader in all areas of the association. She served as the staff liaison to seven different MAIA committees and put her passion for technology to use in molding the office into a model, paperless operation. Dulle also helped to pioneer and manage several multi-state projects, including the Mid-States Young Agent Retreat, the Midwest Technology Conference and the Elite Force Sales Training School.

In addition to her duties at MAIA, Dulle gave generously of her personal time and resources to serve on committees and task forces at the national level. She served as the state liaison to the Agents Council for Technology, the chairman of the Membrosia Perpetuation Task Force and a member of both the Co-Branded Website Oversight Task Force and the Co-Branded Website Users Group.

The MAIA board of directors presented Dulle with a resolution of appreciation for her

service at its May 2010 meeting, along with two prints of Jefferson City by local artist Jim Dyke: One depicts the Missouri River; the other shows the store front of Central Dairy, Dulle’s favorite dessert spot and an icon in the community.

With Dulle’s resignation, MAIA Financial Manager Sheryl Van Leer has been promoted to vice president of operations, while Marketing

Manager Lindsay Schmidt has been promoted to vice president of marketing. Both will retain management of their respective departments.

lay out any way you want; use both pics of carol if you can make her face look less shiney on the informal one

MAIA


2010-11 Elite class begins with a bang

Emily KoenigsfeldMAIA education director

On May 9, we kicked off the first quarter of this year’s Elite Force Sales Training School. The 2010-11 class is composed of 11 students whose demographics vary in agency size, geographic location and gender. Their willingness to learn and their level of participation are going to make this experience very valuable to their careers.

We started off the first quarter with a small, meet-and-greet reception. I love watching relationships build from scratch! When the students arrived, they introduced themselves, and then there was silence for about a half-hour. I didn’t realize that this would be the last silence I would hear the rest of the night. They quickly found out they have a lot of common interests, especially their aversion to the University of Kansas (even though we have three students from Kansas).

Angie Heavener was our instructor for this quarter. On day one, we invited each student’s mentor to join them in class so they could go over what is expected of them and their students during the next 12 months. The mentors were there for the first half of the day.

Angie started the afternoon with a very important lesson, “Personal Discovery.” The students completed an exercise to discover their personality profiles, and it turns out that there are a lot of leaders in the pack.

We had a group dinner that night at a local restaurant called Prison Brews, where everyone continued to get to know one another. I left them that evening at the hotel, where they gathered in the meeting room, and all I needed were the stories to know they had a good night.

Days two and three were full of great information. The students began to work on their personal 30-second introductions. This is another part of the class I love to observe because by the fourth quarter, the students are pros; however, the first ones are the most memorable.

One of our evening activities was a team building exercise. In

small groups, the students had to design and implement a device that would protect an egg from breaking when dropped from atop a chair. Two of the teams were successful and walked away with not even a crack. We ended the evening with dinner at a local Mexican restaurant, Mi Tolteca.

During the final hour of class, the students found out they would have mandatory homework to complete between quarters. They took it surprisingly well; I only heard a couple of complaints!

I am very happy with the chemistry this class has. These relationships are what make the program so valuable. I am very confident that they will get the maximum amount out of this program and will walk away with great tools for success. I am looking forward to the second quarter, which starts August 2.

two pictures, use captions please

fromthe people

who

know.

stronger customer satisfactionstronger coverage

stronger loss control

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Continuous E&O protection since 1966.

4 Years

Agents Marketing Corp.2701 Industrial Drive • Box 1785Jefferson City, MO 65109Phone: 573-893-4301Fax: 573-893-3708Web Address: missouriagent.org


Enforcement actions• Wendell Agee, Overland Park, Kan., voluntary

forfeiture of $250 for department allegations of insurance law violations.

• Laura L. Amrhein, Chillicothe, insurance producer license application refused.

• Kari N. Aslinger, Cape Girardeau, voluntary forfeiture of $1,250 for department allegations of insurance law violations.

• Dallas E. Auch, Olathe, Kan., complaint and request to find cause to discipline insurance producer license filed.

• Michael Beckman, New Berlin, Wis., voluntary forfeiture of $200 for department allegations of insurance law violations.

• Jack H. Boucher, Kansas City, insurance producer license application refused.

• David E. Coffelt, Harrisonville, voluntary forfeiture of $3,200 for allegations of insurance law violations.

• Tandy S. DelCastillo, Liberty, insurance producer license application refused.

• Bette A. Devries, Osage Beach, decision issued and bail bond agent license application refused.

• Christopher Dorman, Washington, Okla., voluntary forfeiture of $250 for department allegations of insurance law violations.

• Delfina G. Gonzalez, Sedalia, insurance producer license application refused.

• Valerie A. Hanson Albers, Harrisburg, S.D., consent order filed and non-resident insurance producer license revoked.

• Pamela M. Hill, Springfield, insurance producer license application refused.

• Marcus J. Janitch, St. Charles, request to find cause to discipline bail bond agent license filed.

• Robert Kaiser, Scotch Plains, N.J., voluntary forfeiture of $250 for department allegations of insurance law violations.

• Carol Kellum, St. Louis, voluntary forfeiture of $250 for department allegations of insurance law violations.

• Beverly Metzger, Independence, voluntary forfeiture of $250 for department allegations of insurance law violations.

• Jason McMillen, Morrisville, insurance producer license application refused.

• Warren Moellering, Monroe City, complaint and request to find cause to discipline insurance producer license filed.

• Tina M. Ragland, Stockton, Calif., insurance producer license application refused.

• Sharon Ragsdale, Nixa, insurance producer license application refused.

• Richard Rippeto, St. Joseph, voluntary forfeiture of $200 for department allegations of bail bond law violations.

• Jerrad Rolf, Reed, voluntary forfeiture of $100 for department allegations of bail bond law violations.

• Ebert E. Schneider Jr., Jackson, insurance producer license application refused.

• Jeremy M. Smith, Marshfield, insurance producer license application refused.

• Dennis L. Streckfuss, St. Louis, bail bond agent license application refused.

• Lauren Tawney, Houston, voluntary forfeiture of $250 for department allegations of insurance law violations.

• Paul Thompson, Kirkwood, voluntary forfeiture of $250 for department allegations of insurance law violations.

• Kenneth L. Trice, St. Louis, insurance producer license application refused.

• Kathryn B. Wolcott, Olathe, Kan., decision issued that respondent is subject to discipline based on failure to respond to requests for information and on revocation of insurance agent license in another state.

• William Yancey Jr., St. Louis, voluntary forfeiture of $500 for department allegations of insurance law violations.

• American Community Mutual Insurance Co., Livonia, Mich., order issued suspending certificate of authority until further order from the director of the Missouri Department of Insurance, Financial Institutions and Professional Registration.

• Capital Reserve Life Insurance Co., Salt Lake City, proposed acquisition of control of aforementioned company by American Life and Security Corp., Lincoln, Neb., approved.

• Central United Life Insurance Co., Houston, respondent John M. Huff’s supplement record on review filed.

• First American Title Insurance Co. and Sandra Jerzy, Warrenville, Ill., voluntary forfeiture of $1,000 for department allegations of insurance law violations.

• Golden State Mutual Life Insurance Co., Los Angeles, order issued suspending certificate of authority until further order from the Missouri DIFP.

• Imperial Casualty and Indemnity Insurance Co., Frisco, Texas, order suspending certificate of authority until further order from the Missouri DIFP.

• Insurance Broker of MN and Gary Sorenson, Anoka, Minn., voluntary forfeiture of $500 for department allegations of insurance law violations.

• North Carolina Mutual Life Insurance Co., Durham, N.C., certificate of authority suspended.

• Money Concepts Capital Corp. and Dennis Walsh, Palm Beach Gardens, Fla., voluntary


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forfeiture of $250 for department allegations of insurance law violations.

• Park Avenue Property and Casualty Insurance Co., Frisco, Texas, order issued suspending certificate of authority until further order from the Missouri DIFP.

• Titan Title and Closing of Missouri, Springfield, first amended complaint and request to find cause to discipline business entity license filed.

• Underwriters Service Agency, Missouri Automobile Insurance Underwriters Agency, James C. McCain and Carol Herget, St. Louis, order issued for respondents to show cause why 1) a cease and desist order should not be issued, 2) a curative order or other orders should not be issued, 3) the summary order should not be made final, and 4) other relief, including penalties and investigation costs, should not be granted.

• Universal Casualty Co., Elk Grove Village, Ill., cease and desist order dismissed without prejudice due to company’s compliance with terms set forth in consent order.

Market conduct exams• State Auto Insurance Cos., Columbus, Ohio,

stipulation of settlement filed and voluntary forfeiture of $88,768.

Company changes• 21st Century Advantage Insurance Co.,

Wilmington, Del., effective April 1, 2010, changed its name from AIG Advantage Insurance Co.

• 21st Century Assurance Co., effective April 1, 2010, Wilmington, Del., changed its name from American International Insurance Company of Delaware.

• 21st Century Centennial Insurance Co., Wilmington, Del., effective April 1, 2010, changed its name from AIG Centennial Insurance Co.

• 21st Century National Insurance Co., Wilmington, Del., effective April 1, 2010, changed its name from AIG National Insurance Co.

• 21st Century North America Insurance Co., Wilmington, Del., effective April 1, 2010, changed its name from American International Insurance Co.

• 21st Century Premier Insurance Co., Wilmington, Del., effective April 1, 2010, changed its name from AIG Premier Insurance Co.

• Advantica Insurance Co., St. Louis, effective April 30, 2010, changed its name from Essex Benefits Insurance Co.

• Allied World National Assurance Co., Boston, effective April 27, 2010, added property, fidelity and surety, accident and health, and miscellaneous authorities.

• American Sterling Insurance Co., Laguna Niguel, Calif., effective April 22, 2010, withdrew its

certificate of authority.• Berkley National Insurance Co., Irving, Texas,

effective March 24, 2010, changed its name from Union Standard Insurance Co. and redomesticated from Oklahoma to Iowa.

• Castlepoint National Insurance Co., Chicago, effective April 16, 2010, changed its name from SUA Insurance Co.

• Catholic Knights, Milwaukee, Wis., effective April 1, 2010, Catholic Family Life Insurance merged with and into the aforementioned company.

• DT Preferred Group, Towson, Md., effective March 31, 2010, was registered as a purchasing group.

• F&N Enterprises, Creve Coeur, effective April 30, 2010, withdrew its certificate of authority as a third party administrator.

• Farm Bureau Property and Casualty Insurance Co., West Des Moines, Iowa, effective March 17, 2010, changed its name from Farm Bureau Mutual Insurance Co. and converted from a mutual company to a stock company.

• Genpact Mobility Services, Danbury, Conn., effective April 26, 2010, was admitted as a third party administrator.

• GM-Southwest a Delaware Corp., Frisco, Texas, effective March 12, 2010, was admitted as a third party administrator.

• Health Plan Administrators, Rockford, Ill., effective April 14, 2010, withdrew its certificate of authority as a third party administrator.

• Hewlett-Packard Administrative Services, Plano, Texas, effective March 9, 2010, changed its name from EDS Administrative Services.

• INEX Insurance Exchange, Chicago, effective March 9, 2010, withdrew as an approved surplus lines insurance company.

• International Benefit Administrators, Garden City, N.Y., effective April 23, 2010, was admitted as a third party administrator.

• Kinsale Insurance Co., Los Angeles, effective March 31, 2010, changed its name from American Healthcare Specialty Insurance Co.

• Leaders Life Insurance Co., Tulsa, Okla., effective April 2, 2010, was admitted with life, annuities and endowments, and accident and health authorities.

• Legal Professionals Risk Purchasing Group, Hartford, Conn., effective April 30, 2010, was registered as a purchasing group.

• MMIC Insurance, Minneapolis, Minn., effective April 19, 2010, changed its name from Midwest Medical Insurance Co.

• Medical Benefits Administrators an Ohio Corp., Newark, Ohio, effective March 12, 2010, was admitted as a third party administrator.

• National Contractors Insurance Company a Risk Retention Group, Bigfork, Mont., effective April 8, 2010, was admitted as a risk retention group.

• National Health Corp., Murfreesboro, Tenn., effective March 31, 2010, changed its name from National HealthCare Corp.

• National Real Estate Purchasing Group, New

regulatoryactions continued from page 41



QBE to acquire NAU CountryQBE has announced that it has agreed to acquire NAU Country Insurance Co. Completion is expected this month, subject to regulatory approvals. NAU is the nation’s third largest writer of Multi-Peril Crop Insurance.

EMC named Forbes Trustworthy Co.EMC Insurance Group has been included in the “100 Most Trustworthy Companies” list published by Forbes.com, which identifies the companies that are “the most transparent and trustworthy businesses that trade American exchanges.”

State Auto reaches milestoneState Auto Insurance Group has reached a significant milestone in its sales of personal lines insurance: 1 million policies and $1 billion in premium.

MAIA Partners Go Super RegionalTwelve MAIA Company Partners were included on Insurance Journal’s list of 2010

Super Regional Property-Casualty Insurers. Qualifying companies all meet specific activity and financial criteria. MAIA Super Regional Partners are listed here in alphabetical order.

ACUITYAmerisure Mutual Insurance Co.Auto-Owners Insurance Co.Bituminous InsuranceColumbia Insurance GroupFarmers Alliance Mutual Insurance Co.Safeco InsuranceSelective Insurance Company of AmericaState Auto Insurance Co.United Fire GroupWest Bend Mutual Insurance

Electric wins Communitas AwardElectric Insurance Co. has won a 2010 Communitas Award for Leadership in Community Service. Electric Insurance partners with local nonprofits to meet human needs in the community.

partnernews


MAIA members honored by company partnerCBIZ Insurance Services, St. Joseph, and Westrope and Associates, Kansas City, were recipients of the 2009 President’s Club Award from Accident Fund Insurance Co. The award is presented to a select number of independent insurance agencies that meet specific criteria for written premium and sustained profitability.

Ollis takes top honor from SBCAOllis & Co., Springfield, won the Small Business Commerce Association’s 2009 Best of Business Award in the insurance agency category, based on monthly SBCA surveys, and consumer rankings and reports.

Lockton Cos. top KC employerLockton Cos., Kansas City, appeared in a list compiled by the Kansas City Business Journal of the metro area’s top employers. Organizations on the list were ranked by number of full-time local employees.

New membersAinsworth Insurance Service, Chuck Ainsworth Jr., St. LouisAuto Home Center, David Clark, WentzvilleDECO Insurance Agency, Sunrise BeachME Risk Management, Bill Willenbrink, ClaytonNewcastle Financial Services, David Leimkuehler, ConcordiaO’Shea-Ward Insurance Group, Micheal O’Shea, St. LouisWells Fargo Insurance Services, Timothy Griffin, St. Louis

New associate membersAmerican Mining Insurance Co., Bryant Brown, Birmingham, Ala.Netspend Corp., Ross Terando, WildwoodU.S. Insurance Company of America, Al Klunick, Springfield, Ill.

agencynews

MAIA

Featured

Product

Contact Kelli F

indley,

kfindley@moagent.

org, 800-617-3658


ClassifiedsSeeking Books of BusinessOne of SW Missouri’s largest independent insurance agencies is seeking insurance agencies’ and producers’ books of business – commercial lines, personal lines, life, group health and employee benefits – for possible merger or acquisition. BPJ is a 100% employee-owned company. Interested parties contact Tom Montileone, pres., CEO. Ph: 417-887-3550, x326; fax: 417-887-3252; e-mail [email protected]. All inquiries held in the strictest of confidence.

The basic classified ad contains a maximum of 35 words (including head). Cost: $24.00 for up to 35 words. Blind ads: $37.00 for maximum of 35 words. MAIA agency members are entitled to a 50 percent discount on classified ads.

Ads must be submitted in writing to Advertising Manager, Missouri Agent, P.O. Box 1785, Jefferson City, MO 65102-1785. Payment (to AMC) should accompany request.

Deadline for classified ads: 10th of month preceding publication.

When responding to confidential ads, reply to: P.O. Box 1785, Jefferson City, MO 65102-1785.

York, effective March 31, 2010, was registered as a purchasing group.

• NextRx Services, West Hills, Calif., effective March 9, 2010, withdrew as a third party administrator.

• Old Missouri Mutual Insurance Co., Nixa, effective March 1, 2010, Nixa Farmers Mutual Insurance Co. merged with and into the aforementioned company.

• Praetorian Insurance Co., New York, effective March 31, 2010, redomesticated from Illinois to Pennsylvania.

• Presidential Life Insurance Co., Nyack, N.Y., effective April 2, 2010, added accident and health authority.

• Redland Insurance Co., New York, effective March 31, 2010, redomesticated from New Jersey to Pennsylvania.

• Response Insurance Co., Meriden, Conn., effective April 30, 2010, redomesticated to Illinois.

• Standard Life and Accident Insurance Co., Galveston, Texas, effective April 30, 2010, redomesticated to Texas.

• United States Fidelity and Guaranty Co., Hartford, Conn., effective March 24, 2010, redomesticated from Maryland to Connecticut.

• Warner Insurance Co., Meriden, Conn., effective April 30, 2010, redomesticated to Illinois.

• Workmen’s Benefit Fund of the USA, effective April 30, 2010, withdrew its certificate of authority.

• York Risk Services Group, Parsippany, N.J., effective April 9, 2010, changed its name from York Claims Services.

regulatoryactions continued from page 43

myturn continued from page 7

I find this surprising because MAIA members are some of the lowest contributors to InsurPac of all IIABA members across the country. We lag woefully behind other states and rarely reach half our annual goal. I fully understand that we are the “Show-Me” state, but indications are that we have shown you, so we should be reaching our goals.

I began this article talking about a TV game show. I am not much of a TV watcher unless it is sports, so I am going to switch around and talk about a sports-related movie, “Jerry Maguire.”

In the movie, a sign in the locker room states, “A positive anything is better than a negative nothing.” So we do thank you for the PAC contributions we get, but we must do much better.

In the movie, Jerry urges his client “Help me, help you!” That is how I feel about PAC contributions. They are a necessary evil if we are to remain effective in representing your interests. Think about it, and if you truly believe advocacy is important, I will refer you to the most famous line in the movie: “Show me the money.”

Vaca

nt P

rope

rtyDon’t Let Your Clients Skate By with

an Inferior Vacant Property Policy.

Want Vacant Property coverage your clients will flip over? Partner with Burns & Wilcox and you partner with a national network of brokers and underwriters with unparalleled access to the leading markets for Vacant Properties. Plus, full brokerage capabilities and large limits in protection against vandalism, fire and other unforeseen claims. So, for the best Vacant Property coverage across the board, turn to Burns & Wilcox, North America’s largest specialty insurance MGA/wholesaler.

St. Louis, Missouri314.819.0400 toll free 800.331.4128 fax 314.819.0440stlouis.burnsandwilcox.com

Kansas City, Kansas913.451.3135 toll free 866.476.0439 fax 913.451.3156kansascity.burnsandwilcox.com

26126_Burns_Missouri_Agent.indd 1 6/3/10 5:10:19 PM

Vaca

nt P

rope

rtyDon’t Let Your Clients Skate By with

an Inferior Vacant Property Policy.

Want Vacant Property coverage your clients will flip over? Partner with Burns & Wilcox and you partner with a national network of brokers and underwriters with unparalleled access to the leading markets for Vacant Properties. Plus, full brokerage capabilities and large limits in protection against vandalism, fire and other unforeseen claims. So, for the best Vacant Property coverage across the board, turn to Burns & Wilcox, North America’s largest specialty insurance MGA/wholesaler.

St. Louis, Missouri314.819.0400 toll free 800.331.4128 fax 314.819.0440stlouis.burnsandwilcox.com

Kansas City, Kansas913.451.3135 toll free 866.476.0439 fax 913.451.3156kansascity.burnsandwilcox.com

26126_Burns_Missouri_Agent.indd 1 6/3/10 5:10:19 PM

Missouri Association of Insurance Agents

PROGRAM 2010Listed below are the companies who strongly support the independent agency system and the Missouri Association of Insurance Agents.

DIAMOND

PLATINUM

GOLD Columbia Insurance GroupCompManagement from HealthLinkMeramec Valley Mutual Insurance Co.ACUITYAccident Fund and United HeartlandAmerica First InsuranceSafeco InsuranceStaff One

Cameron Insurance Cos.United Fire GroupWest Bend Mutual Insurance Co.Bank Direct Capital FinanceForemostTravelersContinental Western Group

SILVER Barton Mutual GroupEMC Insurance Cos.Electric Insurance Co.Berkshire Hathaway Homestate Cos.Guarantee Insurance Co.

SECURA InsuranceEncompass InsuranceAlexander, Morford and WooAnthem Blue Cross and Blue ShieldIllinois Casualty Co.

BRONZE AAA InsurancePhiladelphia Insurance Cos.MJ Kelly Co.Old Missouri Mutual Insurance Co.State Auto Insurance Cos.Central Mutual Insurance Co.QBE Agri InsuranceValley Insurance Agency AllianceBituminous InsuranceSelective Insurance Company of AmericaFarmers Alliance Mutual Insurance Co.MOPERMAuto-Owners Insurance Co.S.A. Freerks & AssociatesBMI Cos.Haulers Insurance Co.EMPLOYERSUnited HealthCare

Grinnell Mutual Reinsurance Co.Gateway Underwriters AgencyCCMSICommercial Insurance UnderwritersDairyland Auto/CycleCornerstone National Insurance Co.AmerisafeAmerisure Mutual Insurance Co.SAMBATAS InsuranceWestropePremium Financing SpecialistsJ.M. WilsonSelect ImagingCapital Premium FinancingCNA Insurance Co.Great American Insurance GroupGeneral Casualty

Missouri Association of Insurance Agents • 800-617-3658 • www.missouriagent.org

PART NERS

missouri agent july-august 2010

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