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To learn more, contact your Business Development Manager or Customer Service at 1.800.442.0593 or [email protected]

The MEM Difference

www.mem-ins.com

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May-June 2013 missouriagent 3

contentsSpecial Focus: Leadership ConferenceOn Innovation 242013 Leadership Conference 26

Serving You First 7Small Agency Conference in Pictures 14Mo. Outstanding CSR of the Year 16Staff Profile: Sheryl Van Leer 33You Will Make a Difference 353 Tips for Motivating Employees 37Establishing Brand Leadership 39

AdvertisersAccident Fund 23Amerisafe 47AmTrust North America 38Anthem Workers’ Compensation 40BankDirect Capital Finance 22Bohrer-Croxdale & McAdoo 36Burns & Wilcox 32Capital Premium Financing 28Columbia Insurance Group 30EMC Insurance 29, 31EMPLOYERS 20FCCI Insurance Group 19Grinnell Mutual 6Guard Insurance Group 12IPMG 18

DepartmentsFrom the President 5The Legal Side 9Errors & Omissions 11Technology 18From the DIFP 28

Missouri News 30Regulatory Actions 43Agency News 45Company Partners 46 Classifieds 46

missouriagent

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. Hoffman, AIPAdvertising Manager Amy J. Hoffman, AIP

Officers of the MAIAPresident Doug Clift, CIC, St. LouisPresident-Elect Brian Harrison, CIC, ColumbiaVice President Louis Landwehr, CIC, CRM, Jeff CitySec’y-Treasurer Randy Baker, Kennett IIABA National Director Mitchell C. Mills, CWCC, ClintonPIA National Director Richard Minor, CIC, Hannibal Past President Byron Robison, Springfield

Board of DirectorsRegion 1 Ricky Baker, CIC, ChillicotheRegion 2 Darren Smiley, MexicoRegion 3 Chris Rupp, LUTCF, CIC, LibertyRegion 4 Shane Davolt, Kansas CityRegion 5 Lee Wilbers Jr., LUTCF, CLU, CFP, Jefferson CityRegion 6 Jim Baxendale, CPCU, St. LouisRegion 7 Jeff Mentel, J.D., St. LouisRegion 8 Patrick Clarkin, AIP, AAI, CLCS, St. LouisRegion 9 Randy Smart, MarionvilleRegion 10 Tom Montileone, CIC, CISR, AIS, SpringfieldRegion 11 Steve Rackley, CIC, CISR, GainesvilleRegion 12 Mark Gibbins, PortagevilleAt-Large #1 Wil Turner, CIC, BeltonAt-Large #2 Vickie Winkler, CISR, Ste. GenevieveAt-Large #3 John Patterson, ChesterfieldCo. Rep. Ben Finan, Maryland HeightsCo. Rep Jim Lay, CIC, CPCU, Springfield

Staff of the MAIAExecutive Vice President Larry CaseVice President of Operations Sheryl Van LeerVice President of Marketing Lindsay Griffin, AIPInsurance Services Manager Leona LoethenEvents Manager Jeanne Blomberg, AIPDatabase Administrator Laura BerendzenCustomer Service Representative Theresa Flippin, AIPCustomer Service Representative Monica Mize, AIPEditor Amy J. Hoffman, AIPEducation Director Emily KoenigsfeldAdministrative Assistant Dawn PattersonCustomer Service Representative Anna BrockesMember Services Representative Lauren Eichelberger

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.

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

Address & Other Changes

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

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

© 2013 Missouri Association of Insurance Agents

On the Cover: Agency management issues run the gamut from human resources to marketing. It can be an overwhelming task for the unprepared.

Volume 22, No. 3

JM Wilson 45MAIA Events & Education 21MAIA Partners 47MEM Insurance 2Meramec Valley Mutual Insurance 8Missouri Rural Services 4M.J. Kelly Co. 13Philadelphia Insurance Cos. 17Progressive 42SECURA Insurance Cos. 10Surplus Lines Association of Mo. 16Swiss Re 27Valley Insurance Agency Alliance 44West Bend 34

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Which came first, the chicken or the egg?

Doug Cliftpresident, MAIA

fromthepresident

When I wrote my last article, I talked about spring training and starting over. Another rite of spring every year for MAIA is filling the positions of board members who are re-tiring or term limited. As we go through the process this year of recruiting people to fill these positions, I can’t help but think about involvement. I’m reminded of the age-old question, “Does the chicken or the egg come first?” Or, in the case of the association, “Does involvement create participation, or does participation lead to involvement?” A simple yet enduring philosophy 101 question!

As I leave messages or send emails to indi-viduals whom I think would be great on the board, I can’t help but think they know why I am calling (and maybe dodging my call?). It is someone from the association tracking them down to suck the last minute of free time away from them. I get it! Time is one of the most precious commodities we have, and it is limited. I truly believe that people in the in-surance industry give more than most. Many of us are involved in our local communities in many different ways because our business and customers are there We live where we work. We volunteer at our schools, churches and non-profits. Sure we donate money to worthwhile causes, but more importantly, we give the give the most precious resource that we have, our time.

As we give this precious commodity to our communities and worthwhile causes, isn’t is just as important to give back to our industry, our insurance community? We are blessed to be in a business that helps so many people and doesn’t ask for much in return. I will admit I took a break after being involved in Young Agents and the local St. Louis board. I thought I had done my time and let my fa-ther and brother-in-law, Jeff Crump, do the heavy lifting. But if you truly love something and know how good the industry has been to you and your family, can you really stop giv-ing back?

There are many ways to participate, and over the past year, I have talked about all the great events and educational oppor-tunities offered to you as a member of our association. There are also many ways to be involved. In addition to our local associations, which do great work right in our own com-munities, there are also committees at the state level, and some have volunteer oppor-tunities, which require no more than three or four phone calls a year. Talk about an easy gig! There are the MAIA board positions and of course our Young Agents Committee. Granted, these positions may take more than a few phone calls, but they are great ways to give back to our industry.

Lest you think I’m completely selfless about giving back, I have to admit, while “giving back,” I’ve gained more knowledge, friend-ships and pride in and through our industry than I could have ever expected.

I had the pleasure of attending the Small Agents Conference in March, and I saw a tremendous amount of participation. Atten-dance at the Crawfish Feast was the highest since 2008, and we had a nearly 10 percent increase in agent attendees at the confer-ence. Does participation lead to involvement? I sure hope so. These attendees were great examples of giving back, and I saw many fu-ture leaders in the group. You can bet they’ll be getting phone calls asking for their lead-ership in the coming years.

Larry Case and his extremely talented staff are a well-oiled machine, but like any ma-chine, it takes moving parts to continue to operate. The moving parts are us; don’t stand on the sidelines. Participate. Get involved. Be a moving part in the great “insurance machine.”

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A Policy of Working Together®


Larry Caseexecutive vice president, MAIA

Serving you first

myturn

Remember the old Big “I” logo, which had the “I” surrounded by the words, “Your Inde-pendent Insurance Agent Serves You First”? That was the initial logo used when the organization changed its name from the Na-tional Association of Insurance Agents to the Independent Insurance Agents of America in 1956. The wording survived until 1987 when the logo was updated and the “Serves You First” tagline was dropped.

Even though the association’s logo has been updated over the years with the evo-lution to the modernized “Trusted Choice” branding initiative, MAIA has never wavered from a philosophy of “serving you first” in everything we do. Our goal is to be a mean-ingful resource to your agency and provide value in return for your membership.

Of course, time does not stand still, and the marketplace is constantly evolving. Thus, as an association, we are constantly challenged to alter how we communicate with you, update our educational programs to reflect form changes and new product offerings, push for reforms in legislative and regulatory arenas to reflect changing business practices, overhaul event agendas to provide you with cutting edge information and business prac-tices, and anticipate threats to your business as well as opportunities for business growth.

Last fall, every member of your MAIA board of directors was provided with a copy of a book titled Race for Relevance and asked to read it. The book was written by two rec-ognized association experts and challenges association leaders to evaluate key areas including our governance model, staff orga-nization, committee structure, technology use, environmental (marketplace) evolution, program justification, priority needs, etc. In essence, the book challenged us to perform a critical self-evaluation and to utilize the re-sulting information to determine if we are on the right track for meeting member needs in the future.

In addition, MAIA participated in a nation-wide survey with other IIABA state associa-tions around the country earlier this year. Random agencies across the nation were selected to receive the survey. First and fore-most, I want to thank you for responding in such an overwhelming manner. Missouri had the third highest feedback with 221 agencies responding. (Michigan had 304, and Texas had 266.) That means even though not all of you received the survey, we nevertheless have relevant data from more than 40 percent of our agency membership.

Below is a sampling of your responses:

• A large majority of you, 85%, anticipate increased revenue performance in the next few years. (Only 4% anticipate a decrease.)

• You believe the number one factor in agen-cy success is your strong relationship with your customers (86% of respondents).

• The number one impediment to your agency growth is a weak local economy. The number two impediment is reduction in your commercial premiums due to reduc-tion in your clients’ business.

• You believe prominent visibility in commu-nity relations is important, and 76% of you believe you perform well in that category.

• Nearly three-fourths of you (71%) believe you have been successful in attracting and retaining a good staff.

• Your biggest challenge is the need to become more effective in marketing and sales (according to 75% of you).

• You agree or strongly agree (80%) that MAIA has been a helpful resource to your agency. (Only 3% express concern or disagree.)

• Only 2% believe you do not have access to adequate resources to address your business issues.

continued on page 41


Lewis E. Melahn, J.D.

Lewis E. Melahn is a practicing attorney in Jefferson City. He provides free legal consultation to MAIA members on a limited basis. He served as the director for the Mis-souri Department of Insurance from 1989-1993. You can contact Lew Melahn at 573-636-5057.

thelegalside

Protecting trade secretsAll agency principals understand the intrinsic value of their agency lies in their ownership of expirations, the long recognized resulting economic value of their customer relations. I have had many discussions with agency prin-cipals regarding the potential use of the Uni-form Trade Secret Law to protect the value of those expirations. A recent case in the Missouri Court of Appeals, Southern District, examined the issue of trade secret law appli-cation to customer lists, which are similar but certainly not the same as expirations.

In Central Trust & Investment Co. v. Ken-nedy, the court essentially found that the cus-tomer lists were not protected in that case. The court’s discussion is useful for noting the manner in which the lists were not protected, which can provide guidance for agency prin-cipals when employing methods to protect such information. The court noted that an al-leged violation of trade secret law must show three things:

1. A protectable trade secret; 2. Misappropriation of the trade secret; and 3. Damages.

The central issue is whether the informa-tion involved is a trade secret. Case law has essentially created six standards when deter-mining whether particular information is a trade secret:

1. The extent to which the information is known outside the business.

2. The extent to which it is known by employees.

3. The extent of measures to protect its secrecy.

4. Its value to the holder or competitors5. The effort expended in developing the

information.6. The ease or difficulty in acquiring the in-

formation by other means.

In this particular case, the court found that the customer lists were fairly widely distrib-uted among employees, no agreements were in place saying the lists could not be used, the

lists were shared with affiliates, some names and likenesses of customers were used in ad-vertising, and the owner had not sufficiently addressed how it attempted to protect such information. In short, the owner of the lists had not treated them as trade secrets in a diligent manner.

The court suggested the better remedy would have been a non-compete agreement with employees, which may also be subject to problems to be discussed in the next issue of this publication.

What the case does accomplish is reinfor-cing the steps an agency principal should take to preserve its claim of expirations as a trade secret. First, the agency should clearly define the ownership of the expirations in all con-tracts with producers and employees. Second, all agency procedures, employee manuals and other operating instructions should clearly define the information as confidential and secret, not to be discussed outside the agency. Third, all of those communications should remind producers and employees of the value of the information to the agency. Fourth, all contracts, operating procedures and employee manuals should clearly advise employees that the agency will take all legal steps necessary to protect such information and the agency, and should have producers and employees acknowledge receipt of those instructions in writing.

While the court in this case found the information not to be a trade secret, it did acknowledge other cases from the Missouri Supreme Court, which have discussed customer lists as potential trade secrets. Clearly the six-step analy-sis is important in any individual case addressing what information is a trade secret. Because expirations have a recog-nized economic value, they more easily are recognizable under certain of those stan-dards. Nevertheless, agency principals should always take steps to ensure that that all valu-able information is appropriately protected.

Intensity can set one apart from all others. Agents know this. That’s why so many choose

SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.

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Intensity can set one apart from all others. Agents know this. That’s why so many choose

SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.

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SECURA YELLOW: C=0: M=30: Y=100: K=0

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&errors omissions

Most agencies and their producers probably look at the insurance proposals they provide to customers and prospects as one of the key tools that will determine whether they land the account. In many respects, this is correct. While a great proposal does not guarantee success, a poor proposal almost certainly guarantees failure.

Typically, the insurance proposal is broken down by line of business and lists the cover-ages proposed and the corresponding pre-mium. That’s fine and probably serves the purpose. However, imagine you are providing a proposal to a hardware store. The store’s owner undoubtedly knows the hardware store business well, but how knowledgeable is he or she on the finer points of the insur-ance business? Imagine you are the hardware store owner who is receiving this proposal. Does the proposal help you understand the insurance program? Does it include refer-ences to terms such as ACV or co-insurance? Are these terms defined? Educate customers and prospectsIf your proposals are structured strictly to provide an overview, you may be missing an important element, which could actually play a role in landing the account while also providing some quality errors and omissions protection. What is it? Look to your propos-als to educate your prospects and help them understand their insurance program. Educat-ing customers and prospects has been shown to be an important factor in minimizing E&O claims activity.

If an E&O claim developed, the defense at-torney (defending the agency) and the plain-tiff’s attorney (defending your customer) would review the agency file, as well as all of the specific documents involved in the procurement of the coverage. You can bet that the proposal will be reviewed in depth. The goal is to ensure that when this occurs, it helps your case, not hurts it.

The proposal: a powerful prevention tool

Curtis M. Pearsallspecial consultant, Utica National E&O Program

Customers and prospects rely heavily on proposals to make informed purchasing decisions. The best proposals clearly lay out the coverages offered, with documentation ultimately being made to detail what was and was not purchased. To ensure there is no misunderstanding, it is highly suggested that you secure the insured’s signature to acknowledge the details of his or her buying decision.

Moreover, to ensure thoroughness and consistency, the agency should have a stan-dard template detailing what the proposal should include and how it should be com-municated. Without this, the potential exists that proposals will lack the necessary detail and explanation.

Key ingredients of a proposalExplanations and definitions of key termsJust because the agency understands the terms does not mean the client does. Educat-ing your client on the finer points of the pro-posal will help him or her better understand the insurance program and should also help mini-mize the potential for an E&O claim.

As you present the proposal, look for op-portunities to ensure that the prospect understands the material. Avoid ab-breviations if there is any chance the customer will not understand what they mean.


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12 missouriagent May-June 2013

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Easy-to-understand information. The language should not be above the abil-ity of the prospect to understand it.

Mortgagees or loss payees It is important to include reference to any mortgagees or loss payees you know of in the proposal.

Coverage detailsFor example, if you are providing a proposal for commercial auto and some drivers are excluded, a reference to the excluded (or conversely acceptable) drivers is appropri-ate. When dealing with workers’ compen-sation, based on the corporate structure of the entity, reference should be made to whether the policy affords coverage for sole proprietors and partners. On general liabil-ity, it should be clearly stated if the policy is subject to audit. For a professional liability or a directors and officers policy, provide

clarification on issues such as the retro date and whether the defense is within or outside the limit of liability.

Coverage limitsWhere applicable, include a statement that clearly denotes that higher limits are available. This would certainly be applicable in refer-ences to an umbrella or excess limits policy.

Financial ratingInclude A.M. Best information for each of the carriers, with an explanation of what the rat-ing means. It is recommended to use the exact definition as provided by A.M. Best.

DisclaimerThere is no way the proposal can include every single aspect of the insurance program. A dis-claimer, such as the following, will provide a degree of E&O protection:

errors & omissions continued from page 11


Information contained in this proposal is intended to provide you with a brief over-view of the coverages provided for refer-ence purposes only. It is not intended to provide you with all policy exclusions, limi-tations and conditions. The precise cover-age afforded is subject to the terms, condi-tions and exclusions of the policies issued.

In addition, if your agency has relied on in-formation provided directly by the prospect, consider including a statement such as, “This proposal is based on information provided, and we cannot attest to the accuracy of this information.”

Explanation of non-admitted carriers.If any of the carriers referenced are non-admitted, provide an explanation of what that means. Verbiage such as the following is suggested:

The insurance company does not par-ticipate in any of the insurance guarantee funds created by (the applicable state) law should the insurance company become insolvent and be unable to honor claim payments.

A clearer understandingAt the end of the day, while your proposals may be a little longer, your client will have a much clearer understanding of the coverages proposed and how they work. This could very well be the difference that helps you land the account. Plus, if a problem develops down the road, the detail provided in your proposal could be key in the defense of your agency.

Curtis M. Pearsall, CPCU, AIAF, CPIA, is presi-dent of Pearsall Associates and a special con-sultant to the Utica National E&O Program.

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March 21-22, 2013


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1. James Hackney visits with Carol Teasley during the trade show.

2. Randy Smart, Bob Allen & Deb Huffman work together at the keynote session.

3. Julie Prather answers a question in the commercial lines session.

4. Jenifer Poole and Vickie Winkler discuss technology in the Idea Lab.

5. Adam Mills, Josh Stafford and Jennifer Gerling present their group project during Mark Holmes’ keynote presentation.

6. Howard Beck and Frank McCollough enjoy the main course at the Crawfish Feast.

7. Barb Okenfuss talks with Marc Menninga during a break.

8. Jon Ogren, Ryan Herrmann and Scott Martin share a laugh.

9. Mendy Crigger presents a company prize to April McGurgen.

10. Kevin Krueger, Shane Davolt, Chad Connell and Pauli Clariday sit on the technology panel.

11. Hilary Belt makes a basket while Ron Mattli watches.

12. Matt Kujath, Tim Jernigan, Dwight Hager and Barry McCullough chat during the Crawfish Feast.

13. New CISR Conferees: back (l-r) Jenifer Poole, Amy Berry, Lori Weibel, Vicky Villinger, Alison Minnick; front (l-r) Tarah Fortner, Elizabeth Morgan, Pauli Clairday, LeAnn McCabe, Diane Henke

14. New CIC Conferees: (l-r) Bruce West, Karen Harrison, Parker Mills, Vickie Winkler and Summer Cole


2012 Missouri Outstanding CSR of the Year award-winning essay

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 1496 • Jefferson City, MO 65102(573) 635-0736

American 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.comBreckenridge Insurance Services, LLC 314-725-8394 800-999-4774 Fax 314-725-4317 www.breckis.comBurns & Wilcox - St. Louis 314-819-0400 800-331-4128 Fax 314-819-0440 www.burns-wilcox.comBurns & Willcox - Kansas City 913-451-3135 866-476-0439 Fax 913-451-3156 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.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 800-255-6503 Fax 636-524-0088 www.medjames.comM.J. Kelly Company 417-883-2688 800-725-7211 Fax 800-678-7211 www.mjkelly.comSwett & Crawford 314-821-2699 Fax 314-822-2135 www.swett.comWestrope 816-842-8222 Fax 816-842-3081 www.westrope.comWestrope General Agency 816-246-1200 800-788-4347 Fax 816-246-1290 www.westrope.comWorldwide Facilities, Inc. 314-436-3318 Fax 314-436-4309 www.wwfi.com

Association of Missouri

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Essay prompt: Given the emphasis that many of your commercial lines and personal lines clients place on price, identify and explain four important actions your companies have taken or could take to help you and your agency become more competitive.

I believe in today’s tough economic condi-tion that companies have to be able to justify a higher price in order to keep their current custom-ers. They need to strive to find competitive ad-vantages to offer customers great value in their product versus the competitor that quite pos-sibly has lower rates. Companies can provide agents a variety of tools to obtain this com-petitive advantage.

Sarah MorrowLuebbering Insurance

First of all, companies should focus more on relationship building with their custom-ers. I believe agents already have this ability to create relationships with their customers, but sometimes the companies do not carry this same obligation, therefore tearing down the relationships the agent built. If everyone at the company, from the service center to the claims department, would develop and imple-ment ways to help solidify the client-company

relationship, the client would be-come a more loyal customer.

An example of a procedure they could adapt is to follow up with the client after a claim with a phone call

to inquire about their claim experience. They should then use those comments and ideas from the customers to further modify their

Sarah Morrow is a CSR at Luebbering Insurance Agency, Jefferson City, with 14 years’ experience in the industry. She was nominated for Outstanding CSR of the Year by Stacey Eickhorst.


Philadelphia Insurance Companies (PHLY) designs, markets and underwrites commercial property and casualty insurance products for select target niche industries. PHLY staffs 46 offices located in major markets throughout the United States. Business is also accepted from over 10,000 independent insurance brokers.

Philadelphia Insurance Companies is the marketing name for the insurance company subsidiaries of the Philadelphia Consolidated Holding Corp., a Member of the Tokio Marine Group. Coverage(s) described may not be available in all states and are subject to Underwriting and certain coverage(s) may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. | © 2013 Philadelphia Consolidated Holding Corp. All Rights Rserved.

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practices to keep enhancing customer experi-ence and making the customer feel that they individually matter to the company.

Secondly, the company should and sometimes does offer product en-hancements to justify a higher price. We have some companies that offer unique coverage that others do not, and your clients will stay with those com-panies for that cov-erage. For instance, one com-pany we write with offers cell phone coverage on their home insur-ance policy with a $0 deductible. For iPhone customers, this is a very important coverage since Apple does not offer insurance for their phones. These customers will likely not switch their insurance from their carrier even at a higher price.

Another important tool a company can provide agents is a good company image. They need to know that the company is trust-worthy and honest. If they have claims, they need to know that the company will step up and take care of it and not try to avoid pay-ing the claim. As an agent, we need to also keep this same good image. We need to en-sure that this customer is getting a fair rate but at the same time getting the coverages they need to protect them in the unfortunate event of a claim.

For example, we have a carrier that prides itself on and has won awards for excellent claim service. We have clients that have expe-rienced this service first hand and have told us that they will likely never leave this carrier.

Lastly, I believe that every person within the agency and the company who has inter-action with customers needs to display that they are knowledgeable in the area they are working in. They need to know and offer what that customer needs even if the custom-er does not specifically ask for that coverage. They do not know they may need different types of endorsements added or specific cov-

erage for their situation or business type. It is our responsibility as profes-sionals to know what they need and

convey that to the customer. Therefore, that customer will likely not leave an agent or company that they believe truly understands and looks out for their best interests.

SC R

Sarah received her award at the 2013 Small Agency Conference.


There are many things that are important for an agency to ask and consider when looking at agency automation systems, com-pany interfaces and other technology. Many of these are obvious and have been report-ed on by others. This paper focuses on issues that often take agents by surprise after the purchase of a system and include:

• Purchases based on unused features• Upgrade costs• Technical system support• System security• Third-party software• Electric interface.

Purchases based on unused featuresIt is easy to get caught up in the functional-ity of a system, but the agency should keep its focus directly on its office procedures and

strategic plans as it weighs the importance of each feature. For example, many systems have sophisticated marketing and campaign soft-ware. It shows very well and reminds agents how much they can gain with good marketing, but if you have no plans for such marketing campaigns, the importance of this function should not hold top place in the selection cri-teria. Measure a system’s value based on your agency’s procedures, strategic plan, and sales and service processes.

Upgrade costsAlmost all vendors offer upgrades to their own software for free. The cost of these up-grades is included in the system support fees. This is a great benefit for the buyer, but costs aren’t always fixed. Agencies don’t realize that often the vendor application software up-grades require underlying software upgrades as well, such as for Windows, Office, SQL,

Key questions when considering an agency management system

Mele FullerSafeco Insurance Co.

technology


etc. You will usually have to pay for these upgrades yourself, not to mention find them and get a technician to help with the instal-lation. It is imperative that you understand this potential effort and cost as you plan for automation. Make no assumptions. You also need to understand the licensing and pricing issues related to these software upgrades:

• Are the management system upgrades in-cluded in the support fees?

• Are there any additional charges when management system upgrades are shipped? Shipping and media charges? In-stallation charges?

• What underlying software is required by the system that will need periodic updates? (This is almost always unanswerable. It depends on upgrade schedules, what new underlying software features the vendor wants to use and other issues. But you need to ask how often in the past upgrades have been required.)

• Who pays for upgrades for this underlying software?

• Will the vendor assist in installation of these upgrades on servers or desktop work stations?

• What underlying software and hardware will the vendor simply not be responsible for? This may include imaging systems, Mi-crosoft’s Outlook Firewalls, fax servers, etc.

A couple of examples will help. One vendor took advantage of some new features in SQL 7.0 to enhance the performance of its system. To load the new vendor release, agencies had to upgrade to SQL 7.0, which in some cases required a low-end server to be upgraded as well. That’s a hardware and software cost.

Another vendor is implementing XML real-time interfaces. It requires agencies to be on the latest release of vendor software, which requires Win95 or higher on each work sta-tion. Many of the users were still on Win 3.1. This required a software and possible hard-ware upgrade on each desktop.

Technical system supportA number of vendors provide hardware with their sales, either the entire system or just the server. If a vendor sells you the hardware, it will normally provide hardware support. (You

should always verify what level of support is included.) However, if you buy any of the hardware from an independent provider, the vendor typically does not provide hardware support. You must have an outside source for troubleshooting hardware problems. The vendor may have a recommended list of con-sultants and technicians to do the work, but it will still be at your expense.

Sometimes this presents difficulties when the actual problem cannot be identified. Is it the hardware or software? Both an outside technician and the vendor must work on the solutions simultaneously. This can present a continued on page 20


MAIA SuMMer eventS

regISter At www.MISSourIAgent.org.

E&O Risk Management SeminarMay 14, 2013, MAIA Headquarters, Jefferson City

Benefits

In addition to reducing your E&O

claims risk, you will receive loss con-

trol credit for your Westport or Uti-

ca E&O policy and ethics CE credit.

Topics

• Agency Duties

• E&O Defenses for the Agency

• Exposures in Agency Operations

• Certificates of Insurance, & More

6 hours ethics

ce

Life & Health Options for the Business OwnerJune 26-27, 2013, MAIA Headquarters, Jefferson City

12l-h ce

credits

About this Course

This Risk Specialist Series course ad-

dresses four distinct areas where

you can become a trusted advisor

for your commercial clients.

Topics

• National Health Care Reform

• Estate Planning

• Retirement Account Options

• Employee Benefit Programs

Young Agents ConferenceJune 2-4, 2013, Crowne Plaza Downtown, St. Louis

About the Conference

This conference is designed to help

new producers succeed through

motivation, education and network-

ing opportunities.

Benefits

• Sales and Technical Education

• Experienced Instructors

• Foundation for Leadership

• Agent-to-Agent Networking

up to 6

hoursCE

Leadership ConferenceJuly 17-19, 2013, Tan-Tar-A Resort, Osage Beach


The Leadership Conference is host

to agency prinicipals and managers

from any size agency. It combines

education and celebration.

Benefits

• Classes for Principals & Managers

• Timely Session Topics

• Awards and Installation Banquet

• Themed Trade Show

up to 4

Hours ce

All CE filed in Missouri and Kansas only.

Educ tionfor insurance professionals

Programs that give you “Response-Abililty”

CIC InstitutesCIC Institutes now start at 8 a.m. Wednes-day and end by 12 p.m. Friday (test from 2-4 p.m.), so you can enjoy the weekend!

James K. Ruble SeminarMay 15-16, 2013, Osage Beach

Personal Lines InstituteJune 19-21, 2013, Springfield

CISR SeminarsCheck out all of the new CISR options

online at www.missouriagent.org.

Personal Residential PropertyMay 9, 2013, Blue SpringsMay 29, 2013, Chesterfield

Personal Lines MiscellaneousJune 4, 2013, Jefferson City

Commercial Casualty II SeminarJune 11, 2013, Springfield

Commercial PropertyJune 25, 2013, Blue Springs

Register online at www.missouriagent.org.

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scheduling problem. Plus, if your agency is located in a rural area, obtaining the inde-pendent technical support can be difficult, expensive or slow. You need to pay particu-lar attention to the source of all support and consider the potential additional costs:

• Will the vendor provide hardware support if you purchase hardware from them?

• What is the level of that support? If a serv-er fails, how quickly can a replacement be shipped?

• What hardware support will the vendor provide if the hardware on the worksta-tion or server is purchased from outside sources?

• Where is the closest recommended consul-tant or technician to the agency?

• Ask consultants and technicians about their costs, their experience, their re-sponse time and the availability of re-placement hardware. These individuals may easily become your first line of sup-port. Get references.

• Are there mileage charges for onsite support?

System securityAscertain the level of security available on the system. You may want only the ac-

countant or bookkeeper to change or delete invoices, for example, but CSRs to be able to enter them. Only the principal should be al-lowed to see accounting reports. Only the office manager can access the setup screens. All the vendors typically handle this very well, but think of exactly what you want the various staff members to change or see, and ask the vendor these questions:

• Can authorization be assigned at the menu level?

• Can security be set up by user ID as well as by job function?

• Do we manage our list of company IDs and passwords and notify companies and oth-ers to delete IDs when employees leave the agency?

Third party softwareThird party software is a reality in any agency, whether it is a sales and prospecting system, a life insurance proposal system, comparative rating software, or company proprietary soft-ware. There is no one piece of software that is going to meet all of an agency’s needs. You should understand how the vendor responds to this software, whether on the a desktop or when the agency uses application service pro-vider software:

• Can you load third party software on the vendor’s server? If not, what is recommended?

• Does the addition of third party software to a desktop affect the vendor’s support of its own software?

• What data integration capabilities does the vendor software have with third party software?

• Can the vendor integrate with the agency’s comparative rating system? With the compa-ny-specific software?

• If you are considering an application service provider product for a management system, can any third party software be loaded at the ASP site? If not, what are the integra-tion capabilities between the ASP server and the agency desktop? (Very often, there are none.)

technology continued from page 19


MAIA SuMMer eventS

regISter At www.MISSourIAgent.org.

E&O Risk Management SeminarMay 14, 2013, MAIA Headquarters, Jefferson City

Benefits

In addition to reducing your E&O

claims risk, you will receive loss con-

trol credit for your Westport or Uti-

ca E&O policy and ethics CE credit.

Topics

• Agency Duties

• E&O Defenses for the Agency

• Exposures in Agency Operations

• Certificates of Insurance, & More

6 hours ethics

ce

Life & Health Options for the Business OwnerJune 26-27, 2013, MAIA Headquarters, Jefferson City

12l-h ce

credits

About this Course

This Risk Specialist Series course ad-

dresses four distinct areas where

you can become a trusted advisor

for your commercial clients.

Topics

• National Health Care Reform

• Estate Planning

• Retirement Account Options

• Employee Benefit Programs

Young Agents ConferenceJune 2-4, 2013, Crowne Plaza Downtown, St. Louis


This conference is designed to help

new producers succeed through

motivation, education and network-

ing opportunities.

Benefits

• Sales and Technical Education

• Experienced Instructors

• Foundation for Leadership

• Agent-to-Agent Networking

up to 6

hoursCE

Leadership ConferenceJuly 17-19, 2013, Tan-Tar-A Resort, Osage Beach


The Leadership Conference is host

to agency prinicipals and managers

from any size agency. It combines

education and celebration.

Benefits

• Classes for Principals & Managers

• Timely Session Topics

• Awards and Installation Banquet

• Themed Trade Show

up to 4

Hours ce

All CE filed in Missouri and Kansas only.

Educ tionfor insurance professionals

Programs that give you “Response-Abililty”

CIC InstitutesCIC Institutes now start at 8 a.m. Wednes-day and end by 12 p.m. Friday (test from 2-4 p.m.), so you can enjoy the weekend!

James K. Ruble SeminarMay 15-16, 2013, Osage Beach

Personal Lines InstituteJune 19-21, 2013, Springfield

CISR SeminarsCheck out all of the new CISR options

online at www.missouriagent.org.

Personal Residential PropertyMay 9, 2013, Blue SpringsMay 29, 2013, Chesterfield

Personal Lines MiscellaneousJune 4, 2013, Jefferson City

Commercial Casualty II SeminarJune 11, 2013, Springfield

Commercial PropertyJune 25, 2013, Blue Springs

Register online at www.missouriagent.org.


Learn more about our state-of-the-art features and partnership with MAIA members. Call today.

David RudolphVice President, Business Development

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From an agency’s perspective, this is prob-ably one of the weakest areas of any man-agement system.

Electronic interfacesPerhaps the single most important feature today is electronic interface. It is often not given the level of importance it should re-ceive. With the widespread use of the Inter-net, more and more of your agency business is going to use electronic interfaces with customers, carriers and other third party business partners.

In the arena of agency-company down-load and upload, there are a number of points that are often overlooked. Remember

that as the agency, you are entirely dependent on the company download to maintain your policy database. There is growing implemen-tation of Direct Bill Commission Download, and we will see Claims Status Download in the near future. All this information, electronically updating the agency system automatically, saves you tremendous time and provides cur-rent, accurate and complete data. Make sure you get what you want and expect from these downloads in order to manage your data and support your customers.

• What lines of business does the vendor ac-cept in download with each of your compa-nies? Be very specific (i.e., commercial auto, commercial property, etc., not just commer-cial lines).

• If the vendor does not have all of your lines of business, when is it going to add them?

• Ask each of your companies specifically which lines of business they download and when they are going to add what’s missing, including Direct Bill Commissions and Claims Status.

• How does the vendor load the data into its system? You must look at the system or see sample screens to determine this.

• How does the vendor load multiple options on coverages? In personal injury protec-tion states, there are often multiple options available. Make sure all the options are loaded and see where they are.

• Does the vendor load only ACORD coded values? If yes, what does it do with the company-specific code? (Some will load just the code, and others require that the agency complete setup screens to add them.)

• What causes a policy or data not to load in download? How do you know what did not load?

• Can the vendor load company-specific data (versus codes) in the system? Where? If not, how do you know what was sent?

• Can the agency readily find the data it needs to support its customers? Visit an agency that is already on the system, and attend a local user group meeting.

• For download and upload, can company-specific data be captured and sent in up-load? Many companies require some data that is not readily stored on the vendor sys-

technology continued from page 20


We are the WorkSafe People • Trustedfriendtobusinessessince1912• Strongindependentagentpartnerships• Service-focused

11224

tem. This situation is getting better as com-panies simplify their own systems and rules.

• Are your companies doing or planning to do XML real-time interfaces? When? What transactions (quotes, new business, policy changes, inquiries)? What lines of business?

• What connection speed is recommended for company communications, whether In-ternet based or not?

• Will the vendor help you determine con-nectivity needs and solutions? (Probably not.)

• Ask your local and long distance phone companies what type of high-speed con-nections are available at what costs.

• Talk to your Internet service provider about true pass-through speeds. For instance, a local ISP may pass through multiple serv-ers before reaching the Internet backbone. Each of these servers slows down the pass-through speed. Consider a major ISP to get a more direct connection and high speeds.

A couple of closing comments: The vendor system sales teams have historically been less familiar with interface features on their system than any other. They often cannot, or possibly should not, be answering detailed questions without accessing resources in their home offices. Make sure you are comfortable with their knowledge, and feel free to ask them to do some research.

Finally, as has been written for years, the only way the get the most out of an agency management system is through training. Regular, consistent training is needed for everyone in the office. You can find in-house training, training from consultants and from the vendor’s own training staff. Ask what the costs are and make it part of the agency bud-get. As part of the training process, join the vendor’s user group and attend at least the local meetings. Just as much can be learned from other users as from a structured class.


specialfocus leadershipconference

It is important to remember that as you “motor” through your company — holding meetings, speaking to colleagues, giving presentations — you leave a big wake be-hind you.

That wake consists of what you say and, even more importantly, how you say it.

Employees have very sensitive antennae that detect (or think they detect) the hidden meaning behind everything you say. Their perception of your true intentions is what shapes their actions.

Do you support, amplify, and endorse new ideas?

Or, more often, do you find yourself minimizing, sidelining, and playing “devil’s advocate”?

In your own mind, you see this as looking at new ideas from all angles to ensure their via-bility. But from your employees’ point of view, it may seem you always shoot down what they say.

What you and your managers say, every day, matters a lot.

Although “Walk the walk and talk the talk” has become a hackneyed phrase, it is crucial when building and sustaining an innovative culture.

During a rough economic patch at American [Airlines], we were discussing cost cutting. To illustrate the point that small things can add up to big savings, our president told a group of VPs this story:

“I was on a flight the other day and noticed there was one olive in the salad I was served. I asked our food service director what that olive cost, and was amazed to learn we spent $40,000 a year on having just one olive in each salad. Figuring that no customer would complain about one missing olive, I ordered it removed!”

He set a wonderful example for us VPs to follow. Soon, we were all searching for our “olive.” What small cut could we make that would add up to big savings?

To insure innovation will flourish in your company, watch your wake!

If you sometimes say, well that is a good idea, “But we’ve never done it that way.” Or you say, “But Bob, we’ve always done it this way!”

Those words just suck the air out of a room. They are the stake in the heart of

innovation.Innovators must stand up to those words.

People who are afraid of change say those words. People who want to keep things just the way they are. We don’t move ahead by staying the way we are … We move ahead by being willing to do the new.

fromOn Innovationby Terry Jones

“Your wake is larger than you imagine!” Kip Tindle



Unfortunately, many leaders want to keep the way it was the way it is. Why? Because it was their idea to be that way in the first place. They’re invested in protecting and per-fecting “the way it was” because it was their vision and they still want to be right.

So, if you’re going to challenge the way it was, you better come armed.

By armed, I mean armed with benchmarks. Armed with evidence and precedence of where your idea has worked elsewhere. Armed with the support of influential indi-viduals who believe your proposed idea is a calculated risk worth taking.

In the past few years, many large insur-ance companies have hired me to speak at their annual meeting. They see the parallel between the demise of travel agents and the current state of insurance agents and want to get ahead of that curve. They want to insure their agents survive in an industry that is rap-idly evolving in an online world.

Good for them for being proactive, not passive. Many established companies view disruption as a threat, not an opportunity. They try to protect the status quo rather than saying, “How can we adapt?” or, more importantly, “How can we use our unique attributes to be even better than those new guys?”

The Internet is accelerating economic Darwinism.

Access to perfect information on product, price, and availability is dooming the com-placent middleman. It is quickly creating the “frictionless” commerce that Bill Gates pre-dicted in the mid ’90s.

I was lucky at AA to have a boss that un-derstood the forces of change could work for you or against you. An innovator himself, he almost always stood on the side of moving forward and facilitating change rather than fighting it.

When someone proposed selling our yield management software to other airlines, most of us were aghast, as it was key in those days

“Your wake is larger than you imagine!” Kip Tindle

to our rev-enue supe-riority. The marketing department in particular was vigor-ous in its opposition.

But our presi-dent, Bob Crandall, said, “Well, somebody is going to copy this software and make a lot of money, so it might as well be us!” He reserved the crown jewels of the code for our company, but allowed the sale of the rest.

“Someone will do this, it might as well be us” thinking can be a helpful piece of ammu-nition when fighting naysayers.

Another way to turn a potential no into a green light is to say, “Let’s try this on a small scale and see how it works.” A smaller ask can make it easier to say yes.

When presenting a new idea, ask yourself if the decision maker has a vested interest in protecting the status quo. If so, make sure to come armed with documentation of exactly how this idea is going to produce bottom-line results for the organization. By making your arguments objective, not subjective, the decision maker is more likely to embrace the idea rather than ignore it.

Author, entrepreneur and business investor Terry Jones is the keynote speaker at the 2013 Leadership Conference in July. See pages 26 and 27, and the wrap on your magazine, for more in-formation about Terry and the conference.

CEO

fOundEr



Who is this conference for?Any insurance professional who guides the insurance ca-reer of another is encouraged to participate in the Leader-ship Conference. This includes agency owners, department managers, sales managers, principals and company person-nel who advise Missouri agency managers in any capacity.

Don’t forget the family! Spouses are encouraged to at-tend, and we anticipate that they too will look forward to our keynote session and book-signing with Terry Jones.

SessionsKeynote: Building Digital

RelationshipsTerry Jones

How will your customer contact you today? In the agency, via the phone,

on your website, through Twitter or on your Facebook page? The answer might

be any of these, but businesses without an effective online relationship strategy

are being left behind. Terry Jones will take you through the stag-

es of digital relationships so you can redesign your customer processes for the digital age.

The Road to the Future is Paved with GoldChris Burand

Opportunities for independent agencies are great-er today than ever before if agency owners accept

the reality that smart agency management is crucial to achieving that success. Simply being a great guy and

a good salesman is no longer enough. Those agency owners who focus on building their leadership skills and developing people rather than just focusing on clients will achieve far faster growth, higher profit margins, happier clients and significantly less frustration.

How Much Do Your Sales Cost?Chris BurandThis is no longer a cost-plus industry. To be adequately profitable, agencies must know and control their cost of sales. Otherwise, like some agencies that have already failed, your agency may find itself writing plenty of new business while simultaneously going bankrupt.

This detailed presentation covers how to measure the cost of a sale, how to minimize the cost of a sale, proper producer compensation and producer requirements. Each of these factors is critical to your agency’s success.

Cyber Liability: Protecting Yourself & Your BusinessMichael BazzellThis session focuses on recent trends of online fraud, In-ternet scams and ways that suspects steal identity. The presentation includes the details of how hackers commit their crimes and what you can do to protect yourself. Live examples of hacking into information will shock you, while detailed solutions will show you how to stop the threat. Free software apps will be presented toward the end of the session.

Eggs & IssuesLarry Case and Special Guest“Eggs & Issues” is your chance to get information right from the source. This Q&A session gives you access to MAIA Executive Vice President Larry Case and an elected or government official as a special guest. They will address audience questions over a variety of regulatory and leg-islative issues affecting the insurance industry. Bring your questions, or just come to learn from others. Either way, this unscripted session is a unique opportunity to put your officials to work for you.

Block Party & Strolling DinnerJoin us for our annual (adults-only) Block Party and Strolling Dinner, now being held from 5:30-7:30 p.m. On Wednesday night, the exhibit hall will be trans-formed into a theme party extravaganza, with each of our four “blocks” (and their occupants) transforming into one of four storybook themes. Don’t worry, our company partners will do all the

If you’d like to be more committed, more energized and more enthusiastic about your career, attend our 2013 Leadership Conference. The amazing networking and learning opportunities are sure to benefit you and your agency. We have packed the agenda with sessions designed specifically for agency owners and managers led by nationally acclaimed presenters. Both agents and company representatives will enjoy this great chance to social-

ize and make contacts with some of the most successful agency managers in Missouri.

2013LEadErship COnfErEnCE



WHY WALK WHEN YOU CAN SOAR?

Call MAIA’s Theresa Flippin at 800-617-3658 for a quote.

The Big “I” Professional Liability ProgramPrevent.Our exclusive risk management resources help your agency avoid making common preventable mistakes.

Protect.Our superior coverage through Swiss Re Corporate Solu-tions and our experienced claims teams are in your cor-ner in the event of a claim.

Prosper.When you know you have the best agency E&O protec-tion, you can focus on growing your most important as-set: your business.

Insurance products underwritten by Westport Insurance Corp., Over-land Park, Kan. Westport is a member of Swiss Re Corporate Solu-tions and is licensed in all 50 states and the District of Columbia.

work. Just come and enjoy the sights, sounds, food and drinks. And don’t forget to vote for your favorites.

Mega Trade ShowMore than 60 insurers, technology vendors, MGAs and others will proudly display their wares in MAIA’s trade show. Learn all about new markets, products and services available to you and your agency. The exhibit hall will be open Wednesday evening for our Block Party and Strolling Dinner. It will open again Thursday morning starting with a book signing session with Terry Jones and ending with lunch and prizes.

On Thursday, bring the entire staff! Fully registered member agents can bring additional staff to the Exhibit Hall Thursday only for just $25 each. This includes lunch and the company prize drawings!

Opening Night After-PartyWhen you leave the exhibit hall, continue the fun and excitement at our “After-Party.” Sit back, sip your cocktail and snap your fingers while you relax in our completely casual night-club environment. It’s the perfect way to cap off your opening night.

Banquet & DanceIt’s the Missouri Association of Insurance Agents’ most important night of the year. Join us for a sumptuous meal and the installation of our new board officers. This is also when we bestow the association’s highest honors: Insurance Person of the Year

and the E. Ellwood Willard Outstanding Service Award. Dress at this prestigious event is black tie optional. Follow-ing the banquet, you can enjoy the music of The Shanks, a well-known cover band from Kansas City.

Golf TournamentOur optional golf tournament will be held at The Oaks, one of Tan-Tar-A’s signature courses. The tournament has been moved up to Wednesday morning for the conve-nience of our guests who are traveling.

All conference registrants can compete in the tourna-ment, which is an 18-hole scramble. Teams will be assigned by the tournament coordinator.

LEadErship COnfErEnCE

Register and get full details online at www.missouriagent.org.


fromtheDIFP

You may have heard the stories about the New Madrid earthquakes of 1811-1812 being so strong that tremors were reportedly felt in cities along the East Coast or how it brief-ly changed the flow of the Mississippi River. The damage caused by those earthquakes was catastrophic, but the cost of rebuilding was minimal because the population in the region at the time was small. That can’t be said today, as there are millions of people living within and around the New Madrid Seismic Zone.

The high population density and the potential for catastrophic damage from a sizeable earthquake is why regulators, MAIA and industry leaders in insurance recently came together at the Earthquake Insurance Roundtable sponsored by the California Earthquake Authority inside the historic

Wainwright Building in St. Louis. Discussions centered on the dangers of an earthquake striking the area, the trend of earthquake insurance coverage in the state over the past decade, and the ways to better prepare Mis-souri and its residents for the possibility of a damaging seismic event.

During the roundtable, experts from the CEA, a privately funded organization, which provides catastrophic residential earthquake insurance and encourages consumers to re-duce their risk of losses by buying earthquake insurance, talked about their mission to make Californians more aware of earthquake insur-ance. They also discussed the direction they are taking to help minimize the state’s losses to commercial and residential property from earthquakes.

The CEA did not craft its mission overnight. They learned from past earthquakes on how to better prepare California and its residents for future ones. In that same fashion, we learned a great deal from the Joplin 2011 tor-nado, so much so that agencies in states re-cently affected by Superstorm Sandy came to us for assistance and guidance.

With more than $2 billion in insured losses, the Joplin tornado was the largest insurance event in Missouri history, but an earthquake like the ones during 1811-1812 could have di-sastrous consequences in Missouri and the sur-rounding states. During one of the presenta-tions, we were told that if the 1811-1812 earth-quakes were to happen today, the estimated cost of insured losses would be more than $120 billion. That’s a staggering number, but it does not account for the losses to those who do not have earthquake insurance. And the number of covered residents has been on the decline in Missouri over the past decade.

Even though our state is the third largest market in the country for earthquake insur-ance, the decline in coverage is an alarming trend. While rising deductibles (some as high as 25 percent of home values), along with increasing costs of coverage may have at-

Regulators, industry & MAIA discuss earthquake insurance

John M. Huffdirector, Missouri DIFP

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tributed to the decline, we must work together to help find solutions, which will better protect Missourians and residents in surround-ing states from damages caused by earthquakes.

As a consumer advocacy agency, our department will continue to emphasize the importance of earth-quake insurance, but we cannot do it alone. We welcome those within the insurance industry to join our efforts in helping to pro-mote the importance of this vital coverage. As regulators, agents and industry profes-sionals, we must keep the conversation going as to how we can better protect consumers from seismic peril loss.

License renewalOn another note, our department is making it easier for agents to pay their application or renewal fees. Up until now, if you filed for a license or renewed your license with our department by mail, you could not pay the application or renewal fee with a personal check. Now our department is accepting per-

L-R: Director John Huff, Brenda Otto, Kim Gross and Shelly Stephenson


An incident of data compromise can have a negative impact on your clients’ credibility and profits. You can help protect them by adding EMC’s data compromise coverage to their insurance program. It’s just one of the many reasons policyholders Count on EMC®.

Paula Hutchinson, Kansas City BranchSenior Marketing Representative

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcins.com© Copyright Employers Mutual Casualty Company 2013. All rights reserved

Clients want more value, and one valuable way in which EMC helps clients is providing access to online loss control services. From training programs to safety posters, materials your clients need to reduce losses are within reach. It’s just one of the many reasons policyholders Count on EMC®.

Nick Shemwell, Kansas City Branch Risk Improvement Representative

Acquisition Strategy #8ONLINE LOSS CONTROL

“ Sell the value of online loss control services.”


missourinews

With health care reform foremost on many agents’ minds, MAIA had a robust turnout at its annual Day at the Capitol state legisla-tive event. More than 90 agents showed up from across the state to attend the hour-long issues briefing and to represent the independent agency force to their Senators and Representatives.

Among the health care bills currently before the Missouri General Assembly, S.B.

Legislators receive agents’ message at annual event

Amy J. Hoffmaneditor, MAIA

401, S.B. 403 and H.B. 701 were talking points for MAIA Executive Vice President Larry Case and association lobbyists Chris Liese and Gary Burton. Each of these bills provides authority for the Mo. Department of Insurance, Finan-cial Institutions and Professional Registration to regulate and license Navigators. MAIA is pushing for mandatory Navigator licensing as a consumer protection. S.B. 403 and H.B. 701 also include language that allows for flexibility in the health products available through the voluntary health insurance market.

Despite the furor surrounding implementa-tion of the Patient Protection and Affordable Care Act, property-casualty issues remain a focus for MAIA’s member contingency, and several bills before the General Assembly are also priorities for the independent agency force. S.B. 1 and H.B. 321 offer fixes for the long insolvent Second Injury Fund and affirm that occupational diseases are exclusively cov-ered under workers’ compensation laws. S.B. 154 and H.B. 338 seek to expand the current valued policy law statute to apply to all cov-ered perils, not just fire. The need for this ex-pansion was brought to light after the Joplin tornado in May 2011 when some policyholders had problems collecting the full value of their policies despite suffering total losses.

As important as it is to educate our agency force, the heart of Day at the Capitol lies in the halls of the Capitol itself, where agents meet after the briefing with their Senators and Representatives. They are there to forge relationships and to advocate for the indepen-dent agency system and its consumers.

Randy Smart (r) greets Rep. Jeff Messenger.


“With so much turnover each year [in the General Assembly], this was a good time to establish relation-ships with members of both houses,” says Ran-dy Smart of Smart Insurance Agency, Marion-ville. “All members were generous with their time.”

In fact, Smart was able to meet with Reps. Jeff Messenger, Jay Swearingen and Bob Burns and Sen. Jay Wasson despite both houses being in session to talk about the valued policy law and the licensing of health insurance Navigators.

“All were receptive to my explanation of our position,” Smart says.

“We got a very warm recep-tion,” agrees Matt Speight of the Scott Agency, Montgomery City, who discussed some of the same issues with Reps. Bart Korman, Jeanie Riddle, Jay Houghton and Jeff Jus-tus, as well as Sen. Jolie Justus. “It’s nice to be a part of help-

ing the insurance industry with some key issues and also meet those who represent us at the state level.”

Randal Kraft & Kyane Marble at the briefing.

L-R: Brent Speight & Matt Speight speak with Rep. Jeanie Riddle.

Employee lawsuits are more likely to occur than a fire. Include EMC’s Employment Practices Liability coverage to make certain your clients are protected from all the risks they may face. It’s just one of the many reasons policyholders Count on EMC®.

Paula Hutchinson, Kansas City BranchSenior Marketing Representative

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcins.com© Copyright Employers Mutual Casualty Company 2013. All rights reserved

Cross-Sell Strategy #21EPLI COVERAGE

“ Addressing the growing concerns of clients can grow your business.”


Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services

P E R S O N A L I N S U R A N C E

When it comes to placing personal insurance for high-net-worth clients, your success is our success.

Grow your business by partnering with Burns & Wilcox. By working with our Elite Client Solutions team, you do not have to turn away clients: We have the products to cover all their needs. Our high-net-worth specialists have the expertise to create personalized solutions. Plus, our unrivaled access to markets allows us to create solutions with speed and diligence. Making personal insurance even more personal is what Burns & Wilcox does best as the largest independent wholesale broker.

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Commercial | Personal | Professional | Brokerage | Binding | Risk Management Services

P E R S O N A L I N S U R A N C E

When it comes to placing personal insurance for high-net-worth clients, your success is our success.

Grow your business by partnering with Burns & Wilcox. By working with our Elite Client Solutions team, you do not have to turn away clients: We have the products to cover all their needs. Our high-net-worth specialists have the expertise to create personalized solutions. Plus, our unrivaled access to markets allows us to create solutions with speed and diligence. Making personal insurance even more personal is what Burns & Wilcox does best as the largest independent wholesale broker.

Overland Park, Kansas | 913.451.3135 | toll free 866.476.0439fax 913.451.3156 | overlandpark.burnsandwilcox.com

St. Louis, Missouri | 314.819.0400 | toll free 800.331.4128 fax 314.819.0440 | stlouis.burnsandwilcox.com

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What is your educational background?I have a BSBA in accounting from Central Missouri State University in Warrensburg.

Tell me about your typical work day.I handle all the accounting and human resources, and I’m also the onsite IT person, so I handle the basic issues here. Most days, I enter deposits and write checks then spend the rest of the day working on financial reporting or database cleanup and maintenance.

What do you enjoy most about your job?Numbers! I enjoy things most people hate: budgeting, ana-

lyzing financials and anything else that lets me play around in Excel.

What was your first job?Engraving plastic signs with teach-ers’ names on them for the school district. My dad was the shop teacher, so he had the machine, and they always had him (and he had me) make any new ones they needed. When they built a new

school and needed signs for ev-ery room, he told them that

was too many, but they could pay me to do it.

What has been your most sig-nificant accom-plishment as a professional?

Figuring out ways to do things more efficiently. Every minute

I can shave off one task is a minute I can spend on other projects. We now have more financial reports than we did when I started, but I spend much less time compiling them now than I did then.

Who has had the most influence on your career?Probably my dad. When I was trying to decide where to go to college and what to major in, it was between account-ing and journalism. My dad made a comment about how it might be hard to find a job in journalism in smaller towns. Based in large part on that comment, I decided on account-ing. Best decision I ever made.

What is a goal you’re still trying to accomplish?I’d like to break the Van Leer record for biggest catfish. My family set the record in 1997 with a 55 pounder. I think it’s time we broke that!

Do you have any phobias?Snakes. I once had one in my bathroom, and by the time I got back with something to kill it, it was gone. The only thing worse than having a snake in your house is losing a snake in your house.

Who do you admire most in your family?My grandpa got osteomyelitis when he was 14 and wasn’t expected to survive. He lived, but they told him he would never walk. When he did, they told him he would never walk without crutches. He eventually did that too and went on to own a very successful business and become a promi-nent member of the community.

What are some qualities you value in a person?Honesty, intelligence, kindness, generosity, objectivity and a good work ethic.

Staff profile

Sheryl Van Leer

Title: Vice President of OperationsStarted: December 2007

FavoritesFood: MorelsColor: RedMusic: CountryTV show: The A-TeamMovie: The American President

Pet PeevePeople who don’t use common sense

The Operations Department: (l-r) Laura Berendzen, Sheryl Van Leer, Dawn Patterson

Sheryl with nephew Ben.

Operations department (l-r): Laura Berendzen, Sheryl Van Leer, Dawn Patterson

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

West Bend provides a Silver Lining, no matter what the claim may be. When the scoreboard at the Panther’s little league field was struck by lightning, it was important to get it fixed in time for the championship game. So that’s just what we did.

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

Silver Lining.®Your customers deserve a


At the time of writing this column, MAIA is fresh off a very successful Small Agency Conference in Columbia, and at that event, MAIA’s PAC Fundraising Committee, with strong support from MAIA staff, spent quite some time visiting with many of our fellow members regarding a contribution to Insur-Pac. We are very pleased to report that we were all somewhat successful, and by “all,” I mean the committee and our fellow mem-bers. Thank you very much, but the work has only started!

We were very encouraged to see so many new, younger faces at the Small Agency Conference, and we committee members and staff agreed that we need to continue communicating with all of our members re-garding the importance of contributing to InsurPac and MAPAC, our national and state political action committees.

When I was one of those new, young faces many years ago, I might not have fully com-prehended the importance of either, and I certainly appreciated the advice I received from more experienced members of our state association. So we ask the rest of our more experienced members for your assistance in doing what was done for me many years ago. Please reach out to help!

Also, at the time of writing this column, several of your fellow association members and I are getting ready to go to Washington, D.C., to visit with our two U.S. Senators and our eight Representatives. For those of you who might not have had the opportunity to make this trip, it is quite an experience, and I would encourage each of you to consider making the trip sometime in the future. My reason for mentioning it is that face-to-face time with our Congressional leaders can be more effective when we have a strong PAC to back us up. Knowing that our agent members are making commitments to MAPAC for 2013 helped me to be more confident speaking to our state legislators at MAIA’s Day at the Capitol in March.

Seven areas of legislation will be discussed in Washington, D.C., including agent licens-ing reform and health care reform. In the

case of health care reform, the devastating impact of medical loss rations for those of us who provide health insurance for clients will be thoroughly discussed with our leaders, as will be the potential impact the Navigator program could have on agents and consum-ers. Most of these leaders have little under-standing of these issues, and most will listen to our positions very intently. Do you want to have to tell your clients that you can no longer assist them with their health insurance needs? In my opinion, we are very close to having to do just that!

One side note here: I have read recently that the medical device tax of 2.3 percent, which is included in the Affordable Care Act and was effective Jan. 1, 2013, is closer to be-ing repealed, as 79 U.S. Senators, including 33 Democrats, recently voted to repeal this tax. Are any of you aware that prescription glasses may be subject to this tax? My reason for commenting on this tax is that someone convinced 79 U.S. Senators that this tax might be wrong. It’s an example of what your activ-ism can do.

Thank you very much if you have made a contribution to InsurPac in 2013. Those of you who have not made your 2013 contribu-tion, now would be a great time. So please sit down and make a contribution to InsurPac and MAPAC. We need your support, as you will make a difference!

Brent Speight, CIC, MPA, is president of the Scott Agency, Montgomery City. He is a past president of MAIA and became chairman of the PAC Fundraising Committee in 2012 after serving on it and numerous other association committees over the past two decades.

Brent Speightpresident, Scott Agency

YOUwill make a difference


tips for motivating employees

I’ve traveled all over the country to teach people from all over the world about cus-tomer care, customer loyalty and workplace happiness. It’s given me a thorough under-standing of the pain points businesses face each day, and one big challenge for so many is motivation.

It’s tough to motivate employees to consis-tently create the kinds of positive customer experiences that lead to customer loyalty. It’s like customer care: You can’t mandate moti-vation any more than you can mandate that frontline employees feel genuine care for your customers. And the challenge can never be fully resolved if managers don’t learn more about what makes their employees tick.

The bottom line: One size does not fit all when it comes to motivating all of your customer-facing employees. Different people are motivated by different things, and you should never assume you know what those things are.

Motivation is directly linked to what an em-ployee values. Uncover what they value and how they perceive the world, and you’ll have the key to what it takes to motivate them to be and do their best, to go above and beyond to build trusting and loyal customer relationships. Today, more than ever, creating happy, engaged and willing-to-say-great-things-about-you customers is key to long-term profitability.

Put these three action steps to work, and then incorporate what you learn into your motivation initiatives.

The multigenerational danceToday’s workforce is comprised of four

distinct generations, each one having very specific needs and desires. While the World War II generation typically responds to au-thority, Gen X is self-reliant and tends to seek work-life balance. Meanwhile, Boomers tend to look for meaning in the ways they make a living, while the youngest generation, Gen Y, is looking to be recognized for their efforts.

Though these generalizations aren’t cut in stone, they’re a great starting point for

JoAnna Brandichief inspiration officer, JoAnna Brandi & Co.

beginning to understand what your staff members really want. Our belief systems are almost completely formed by the time we are 14 years old. Understanding a little about what was going on in the early years of each generation really helps to understand their world view.

Money isn’t everythingBe mindful that when it comes to motivat-

ing employees, money isn’t the be all and end all. Want proof? My friend and colleague Mel Kleiman (the world’s leading authority on recruiting, selecting and training the best hourly employees) offers this simple test: Write down four words: money, opportunity (growth and challenge), recognition and life-style. Rank them one through four in order of importance. People are always surprised to learn that nine out of 10 people do not put money in the number one slot. Be sure to share this test with your team as well and to encourage people to share their results.

Inside-out & outside-in Provide your employees with a balance

of intrinsic and extrinsic motivations. Intrinsic motivation comes from within an individual while extrinsic, as the name implies, is being motivated from outside oneself by someone or something else. Most managers rely solely on the latter, using money and special privi-leges, thank-you notes, pizza parties, and the like. The problem: These can lose their power over time.

To inspire intrinsic motivation, look for op-portunities to get to know your employees and find out their individual goals, values and strengths. Make it your habit to notice, ap-preciate and build on them. Understand that everyone has their own individual combina-tion of motivators. When you find the right combination, you unlock the passion inside.

Would they like more opportunities for growth and challenge? Recognition in the company newsletter or in a memo to your boss? A chance to collaborate with others on a creative project? Telecommuting so they continued on page 41

32

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Establishing brandleadership

Deciding strategic direction for any business is the owner’s domain and responsibility. If you’re looking to strengthen your agency’s brand, you need to establish leadership on the issue. Branding isn’t a short-term adver-tising project for a lower-level employee. Your brand is your most valuable asset, and you, as principal, must come out of the gate strongly committed, dedicated to a long-term process and firmly in control.

Here are some ways to assert your role as “chief brand steward” at your firm:

• Discuss with the other owners or senior staff the reasons for reenergizing your agency’s brand. Talk about the likely chal-lenges you’ll face. Remember assessing and leveraging your brand is time consuming but ultimately rewarding. Note that brand-ing is a comprehensive approach to busi-ness management, which impacts budgets,

infrastructure, customer service and your marketing

voice.

• Help staffers understand that a stronger brand means a more focused operation, a better environment, a more profitable firm and possibly more compensation for them. Keep them informed about the steps in branding; when employees are involved in change, they are stronger supporters.

• Organize a brand team. Smaller agencies will include every employee; for a larger agency, work with a representative of each department. Assign every member of the team an area of responsibility based on his or her expertise.

• Reinforce your brand with words and deeds. Communicate the brand promise to employees, carriers and customers. Provide your staff resources and initiatives that enhance the brand. Inspire all to champion the brand in their tasks.

• Listen to employees’ concerns about this process and answer their questions candid-ly. Talk with skeptics; they can be an energy drain for others. Remember, you’re the boss and you’re taking your firm to a bet-ter place. Get the folks who are passionate

about the brand on the bus with you.

Although branding affects every facet of your agency’s image and operations, it doesn’t have to be over-

whelming for employees. Trusted Choice® pro-vides great tools. For additional resources,

visit www.Trusted-Choice.com/agents.

from TrustedChoice.com


Now that we have read up, critiqued our performance and have information from your perspective, we will be pouring over every issue and brainstorming ways MAIA can con-tinue to provide meaningful benefits and ser-vices and enhance our standing as a valuable resource for you in the future. In May, your board of directors will be participating in our

annual planning retreat. Each board mem-ber will have all of this information at his or her fingertips as we evaluate how we can best be structured and operate as a nimble organization.

I can assure you that our focus will continue to be on “serving you first.”

my turn continued from page 7

sonal checks. When submitting your license or renewal application, you can pay the $100 application or renewal fee by making the check payable to DIFP Insurance.

Life Policy LocatorI want to encourage agents to remind con-sumers that our department offers a Life Policy Locator service on our website. The service helps consumers locate benefits from life insurance policies or annuity contracts purchased in Missouri. The Life Policy Locator request form can be downloaded at insur-ance.mo.gov, under the consumers tab by clicking on “Annuities” or ”Life Insurance.”

DIFP attends MAIA conferenceRecently, I joined some of our team to attend the MAIA Small Agency Conference. It was a great experience to bring agents and regula-tors together in the same setting to promote networking opportunities and enhance work-ing relationships. I enjoyed visiting with so many of you at the conference.

This article expresses the official views and opinion of the Missouri Department of Insur-ance, Financial Institutions and Professional Registration, which may not necessarily be those reflected by the Missouri Association of Insurance Agents.

from the DIFP continued from page 29

can spend more time with their kids? Pres-tige? Independence? A chance to teach their colleagues?

Paying attention to ordinary conversation can reveal this extraordinary information. Scheduling a little one-on-one time with each employee every few months to tell them what they are doing right will put this infor-mation into a useful context for delivering feedback that will be appreciated.

By putting these tips into action, you’ll be off to an excellent start in creating an envi-ronment where your employees feel good about themselves in your presence and are inspired to perform at their best.

JoAnna Brandi facilitates workshops on Posi-tive Leadership and Creating Positive Cus-tomer Experiences. She is publisher of the Customer Care Coach © and Monday Morn-ing Motivation – Positive Self Talk for the Cus-tomer Service Pro.

Brandi is the author of three books. She is an Authentic Happiness Coach and has written hundreds of tips and articles since starting her business in 1990. She shares her insights in her twice monthly Customer Care TIP. You can reach Brandi through her web-site, www.returnonhappiness.com.

© 2007 JoAnna Brandi. Used with permission.

three tips continued from page 37

ALL WHEELS WELCOME.

Progressive Casualty Ins. Co. and its affiliates. 12A00257 (03/12)

FOUR WHEELS, TWO WHEELS OR NO WHEELS AT ALL,

WE CAN HELP YOUR CUSTOMERS INSURE ANYTHING

It’s no secret why drivers use independent agents.

You offer quality service, and expertise that’s second

to none. But Progressive can help too. We’re not

only a leader in auto insurance, but also truck,

boat, motorcycle and RV. Plus, our claims service

keeps the promises we make to your customers.

So no matter what you’re helping your customers

insure, together — we can provide peace of mind.

Choice and service made simple…

now that’s Progressive.

12A00257_B2Bad_8.5x11.indd 1 4/1/13 3:26 PM


Enforcement actions• Auto Insurance Express dba Insurance Pro-

viders, Joplin, Mo., voluntary forfeiture of $500.

• Derek Balance, St. Charles, Mo., motor ve-hicle extended service contract producer li-cense granted subject to special conditions.

• Ryan Bell, St. Charles, motor vehicle ex-tended service contract producer license granted subject to special conditions.

• Mark Berry, St. Louis, Mo., motor vehicle extended service contract producer license refused.

• Donald F. Clark, Olathe, Kan., non-resident insurance producer license refused.

• Fernando G. Crissien, Phoenix, Ariz., non-resident insurance producer license revoked until complaint can be served.

• John Dinnella, Florissant, Mo., motor ve-hicle extended service contract producer license refused.

• Kirk Eisenbise, Smithville, Mo., voluntary forfeiture of $375.

• John W. Garrett, Kansas City, Mo., bail bond agent license granted subject to spe-cial conditions.

• Gabriel Gonzalez, Kansas City, Mo., non-resident insurance producer license revoked until complaint can be served.

• Bruce Hammann, St. Louis, Mo., voluntary forfeiture of $1,000.

• Jeremy Hanebrink, St. Charles, Mo., mo-tor vehicle extended service contract pro-ducer license granted subject to special conditions.

• Neal M. Hudson, Farmington, Mo., insur-ance producer license revoked.

• Insurance Protection, Carrolton, Mo., busi-ness entity producer license revoked.

• Phillip Jaurequi, Tempe, Ariz., non-resident insurance producer license refused.

• Denise R. Lacy, Tonganoxie, Kan., non-resi-dent producer license refused.

• Donald Lee, St. Charles, Mo., motor vehicle extended service contract producer license refused.

• Brandon Lojacono, Chesterfield, Mo., mo-tor vehicle extended service contract pro-ducer license refused.

• Gary Lung, St. Charles, Mo., voluntary for-feiture of $1,000.

• Mark Malamut, O’Fallon, Mo., motor ve-hicle extended service contract producer license refused.

• Michael Marion, Florissant, Mo., voluntary forfeiture of $1,000.

• Kenneth O’Toole, motor vehicle extended service contract producer license refused.

• Christopher Roberts, Salem, Mo., voluntary forfeiture of $1,000.

• Patrice W. Robertson, Chillicothe, Mo., in-surance producer license revoked.

• Glenda Scott, Carrolton, Mo., insurance producer license revoked.

• Billy M. Snyder, Linn Creek, Mo., bail bond agent license revoked.

• Jarred Sykes, St. Charles, Mo., voluntary forfeiture of $250.

• Eric Tankins, St. Louis, Mo., motor vehicle extended service contract producer license refused.

• Patrick Webb, Kansas City, Mo., voluntary forfeiture of $250.

• Misan V. Wiles, Charlotte, N.C., non-resi-dent insurance producer license refused.

• Heath L. Wilson, Springfield, Mo., insurance producer license granted subject to special conditions.

• Morgan A. Winn, Morrisville, Mo., insur-ance producer license refused.

• Julie Young, Little Rock, Ark., voluntary sur-render of insurance producer license.

Market conduct exams• ACIG Insurance Co., Dallas, Texas, stipula-

tion of settlement filed with voluntary for-feiture of $76,400.

• General Casualty Company of Wisconsin, Sun Prairie, Wis., stipulation of settlement filed with voluntary forfeiture of $14,000.

• HMO Missouri, Springfield, Mo., stipulation of settlement filed.

• National Union Fire Insurance Company of Pittsburgh, Pa., New York, N.Y., cease and desist order filed relating to the sale of travel insurance products, and company ordered to refund the premium charged to Missouri residents who purchased said products.

• Virginia Surety Company, Chicago, Ill., company ordered to suspend sales of travel insurance products in Missouri and Minne-sota for two years and to refund Missouri and Minnesota consumers who purchased said products. Company ordered to pay fees and penalties to states of Missouri and Minnesota.

Company changes• Advantica Insurance Co., St. Louis, Mo.,

effective Feb. 1, 2013, converted from a property-and-casualty company to a life-and-health company.

• All Savers Insurance Co., Indianapolis, Ind., effective Jan. 25, 2013, was admitted with life, annuities and endowments, and acci-

regulatoryactionsALL WHEELS WELCOME.

Progressive Casualty Ins. Co. and its affiliates. 12A00257 (03/12)

FOUR WHEELS, TWO WHEELS OR NO WHEELS AT ALL,

WE CAN HELP YOUR CUSTOMERS INSURE ANYTHING

It’s no secret why drivers use independent agents.

You offer quality service, and expertise that’s second

to none. But Progressive can help too. We’re not

only a leader in auto insurance, but also truck,

boat, motorcycle and RV. Plus, our claims service

keeps the promises we make to your customers.

So no matter what you’re helping your customers

insure, together — we can provide peace of mind.

Choice and service made simple…

now that’s Progressive.

12A00257_B2Bad_8.5x11.indd 1 4/1/13 3:26 PM



dent and health authorities.• Allied Eyecare dba Advantica Eyecare,

Clearwater, Fla., effective Feb. 5, 2013, withdrew as a third party administrator.

• American General Life Insurance Co., Houston, Texas, effective Dec. 31, 2012, the following companies merged with and into the aforementioned company: SunA-merica Annuity and Life Assurance Co.; SunAmerican Life Insurance Co.; American General Assurance Co.; American General Life and Accident Insurance Co.; American General Life Insurance Company of Dela-ware; and Western National Life Insurance Co.

• Bearing Midwest Casualty Co., Kansas City, Mo., effective Jan. 25, 2013, was ad-mitted with fidelity and surety authority.

• Billings Mutual Insurance Co., Billings, Mo., effective Jan. 1, 2013, Missouri State Insurance Co. and Mutual Insurance Co. merged with and into the aforementioned company.

• Build America Mutual Assurance Co., New York, N.Y., effective Jan. 9, 2013, was ad-mitted with fidelity and surety authority.

• Catamaran PRM of Maryland, Lisle, Ill., effective Feb. 1, 2013, changed its name from Catalyst RX.

• Compwest Insurance Co., San Francisco, Calif., effective Feb. 17, 2013, withdrew its certificate of authority.

• Express Scripts Insurance Co., St. Louis, Mo., effective Feb. 5, 2013, withdrew as a third party administrator.

• Gardner & White, Indianapolis, Ind., effec-tive Feb. 14, 2013, withdrew its certificate of authority as a third party administrator.

• Genesis Insurance Co., effective Dec. 31, 2012, Fairfield Insurance Co. merged with and into the aforementioned company.

• Healthways Wholehealth Networks, Franklin, Tenn., effective Feb. 8, 2013, withdrew its certificate of authority as a third party administrator.

• Jackson National Life Insurance Co., effec-tive Dec. 31, 2012, Reassure America Life Insurance Co. merged with and into the aforementioned company.

• Landcar Agency, Sandy, Utah, effective Feb. 1, 2013, registered as a motor vehicle service contract provider.

• Lewis & Clark Risk Retention Group, Atlanta, Ga., effective Jan. 3, 2013, registration was rescinded.

• Medmarc Casualty Insurance Co., Chantilly, Va., effective Jan. 31, 2013, Medmarc Mu-tual Insurance Co. merged with and into the aforementioned company.

• Missouri Care, Columbia, Mo., effective Feb. 7, 2013, filed Form A for proposed acquisi-tion of aforementioned company by Well-care Health Plans.

• Molina Healthcare of Illinois, Long Beach, Calif., effective Feb. 15, 2013, was admitted as an HMO.

• North Central Mutual Insurance Co., Albany, Mo., effective Feb. 4, 2013, was dissolved.

• Permaplate Co., Salt Lake City, Utah, effec-tive Feb. 6, 2013, registered as a vehicle pro-tection product provider.

• Preserver Insurance Co., New York, N.Y., effective Feb. 5, 2013, was admitted with property, liability, fidelity and surety, and miscellaneous authorities.

• Public Service Insurance Co., New York, N.Y., effective Feb. 8, 2013, changed its name from Publish Service Mutual Insurance Co. and redomesticated from New York to Illinois.

• Quanta Indemnity Co., New York, N.Y., ef-fective Jan. 1, 2013, Quanta Specialty Lines Insurance Co. merged with and into the aforementioned company.

• Renters Legal Liability Risk Purchasing Group, Chicago, Ill., effective Feb. 11, 2013, registered as a purchasing group.

• Residential Insurance Co., effective Dec. 30, 2012, National Home Insurance Co. merged with and into the aforementioned company.

• Selman and Co., Cleveland, Ohio, effective Jan. 29, 2013, was admitted as a third party administrator.

• Service Plan, Chicago, Ill., effective Feb. 21, 2013, registered as a product service con-tract provider.

• Tower Insurance Company of New York, New York, N.Y., effective Jan. 25, 2013, add-ed fidelity and surety authority.

• United Mutual Insurance Co., Washington, Mo., effective Jan. 1, 2013, Century Mutual Insurance Co. merged with and into the aforementioned company.

®

®

regulatory actions continued from page 43


agencynews

Heffernan acquires Benefits Solu-tions, makes top workplace listHeffernan Insurance Brokers, Chesterfield, has expanded its local office with the addi-tion of Benefits Solutions Group, St. Louis. The Benefits Solutions Group will relocate to Heffernan’s offices to work as a united team. Linda Huber, of Benefits Solutions Groups, has been named Heffernan’s senior vice pres-ident and employee benefits practice leader for St. Louis.

Heffernan was recently honored by the St. Louis Business Journal as a finalist in the “Tiny Companies” category (with 10-50 em-ployees) on the journal’s annual “Best Places to Work” list.

Connell vies for small biz awardConnell Insurance, Branson, is one of five finalists for the “W. Curtis Strube Small Busi-ness Award,” which will be presented by the Springfield Area Chamber of Commerce May 8, 2013. The award is determined by written applications scored by an independent panel of judges.

Members receive company recognitionThe following MAIA member agencies were recognized by Columbia Insurance Group as 2013 Pinnacle Agencies: Ceteris, Dexter; Cook Insurance Agency, Butler; Dewitt Insurance, Manchester; First State Insurance Agency, Farmington; Fred Vogel Insurance, Jefferson City; Gene E. Wills Insurance Services, Jack-son; and PJC Insurance, Springfield.

BancorpSouth Insurance Services, Spring-field, was recognized as a 2013 Premier Part-ner Agency by EMC Insurance Co.

Grinnell Mutual Reinsurance Co. recognized Dysart Agency, Marshall, and Naught-Naught Insurance Agency, Eldon, as members of its 2013 President’s Club.

New Faces, new placesLarry Jensen, PJC Insurance Agency, Spring-

field, has been promoted to senior producer.

New membersACME Insurance Exchange, John McQuiller,

Florissant

David Grupe Insurance, David Grupe, Smithton

David Layman Insurance Group, David Lay-man, Lebanon

Farmers Mutual Insurance Agency of Livings-ton County, Matt Morrison, Chillicothe

Michael Watterson, Michael Watterson, Holden

S.G. Insurance, Sheldon Gray, Kansas CitySpectrum Insurance Solutions, Alissa Evans-

Moore, WentzvilleSuretybonds.com, Josh Kayser, ColumbiaWorksite Innovations, Bryan Swyers, Jeffer-

son City

RELATIONSHIPSIT’S WHY WE STAND OUT FROM THE CROWD

“ I’m a mom, and for me excellent communication is important. The same holds true for my role as a Bond Underwriter. Developing personal relationships with our customers is essential—it’s who we are.”

Robyn Shepherd Bond Underwriter—professional listener and “customer care” expert

Connect with Robyn on LinkedIn!

800.538.4796 jmwilson.com

Managing General Agency Since 1920

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


ClassifiedsThe basic classified ad contains a maximum of 35 words (including head). Cost: $27.00 for up to 35 words. Blind ads: $41.00 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 or [email protected]. Ads will be invoiced.

Deadline for classified ads: first of month preceding publication.

United Fire adds Besong to boardThe board of directors of United Fire Group has appointed John-Paul (J.P.) E. Besong to its ranks. Besong is senior vice president of e-business for Rockwell Collins, a Fortune 500 company based in Cedar Rapids, Iowa.

BCBS KC ranks highest for re-gion’s customer satisfactionBlue Cross Blue Shield of Kansas City has received the “Highest Member Satisfaction among Health Plans in the Heartland Re-gion” award for a second consecutive year, according to the J.D. Power and Associates 2013 Member Health Plan Study. The study measures satisfaction among more than 33,000 members of 136 health plans in 17 regions throughout the United States.

Forbes announces Most Trust-worthy Cos.Forbes has recognized four MAIA Partners on this year’s list of “Most Trustworthy Companies.” EMC Insurance Co., Selective Insurance Company of America, State Auto Insurance Co. and United Fire Group have all been recognized as being among the most transparent and trustworthy businesses trading on American exchanges on this cross-industry list compiled by GMI Ratings.

Progressive among World’s Most Ethical Cos.The Progressive Group of Insurance Cos. was recognized as one of “The World’s Most Ethical Cos.” for 2013. The designation rec-

ognizes companies that promote ethical busi-ness standards and practices internally, exceed legal compliance minimums and shape future industry standards.

Anthem BCBS gives $2M to Mo. health causesAnthem Blue Cross and Blue Shield donated $2.1 million and hundreds of volunteer hours to health-related organizations and causes across the state of Missouri in 2012. Key areas of support included smoking cessation, cancer research, flu immunizations and cystic fibrosis, among others.

United Healthcare wins AppyUnited Healthcare received an Appy Award at the South by Southwest Conference for its Health4Me mobile app, which makes it easier for people to take greater control of their health by managing their health care, treatment and payment costs. Health4Me was selected over three finalists in the Health & Fitness category.

Philadelphia wins Gold SteviePhiladelphia Insurance Cos. was named the Gold Stevie Award winner for “Contact Center of the Year” (with fewer than 100 seats) in the Financial Services and Insurance Industry cat-egory. The Stevie Awards for Sales & Customer Service recognize the achievements of call center, customer service and sales profession-als worldwide. Philadelphia also won a Bronze Stevie Award in the Relationship Management Solution category.

companypartnernews

American Interstate Insurance Company Silver Oak Casualty Inc.

Toll Free: 1.888.758.5036 | Fax: 1.800.450.1091 | Amerisafe.com

wOrkerS' COmp InSurAnCe

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Some Agents Have Seen It All.

That's when They Call On us.

Missouri Association of Insurance Agents

PROGRAM 2013Listed below are the companies that strongly support the independent agency sys-tem and the Missouri Association of Insurance Agents.

DIAMOND

PLATINUM

GOLD EMC Insurance Co.Consumers InsuranceWest Bend MutualUnited Fire GroupCameron Insurance Cos.Columbia Insurance GroupMadison Mutual Insurance Co.The Hartford

Insurance Program Managers GroupTravelersAnthem Workers’ CompensationLiberty Mutual Business InsuranceBankDirect Capital FinanceSafecoFirstCompAnthem BCBS

SILVER ACUITYElectric InsuranceSelective Insurance Co. of AmericaSECURA InsuranceCNA InsuranceForemost Insurance Group

United Home InsuranceQBEAccident Fund Insurance Co. of AmericaContinental Western GroupStandard Insurance

BRONZE InsuRisk Excess & Surplus LinesCapital Premium FinancingCFM InsuranceValley Insurance Agency AllianceMJ Kelly Co.Cornerstone National Insurance Co.Risk InnovationsBituminous Insurance Co.Commercial Insurance UnderwritersColumbia Commercial General AgencyEMPLOYERSThe Cincinnati Insurance Cos.Billings Mutual Insurance Co.J.M. WilsonBlueCross BlueShield of Kansas CityPatriot National Insurance GroupPhiladelphia Insurance Co.AmTrust North America

FCCI Insurance GroupAuto-Owners Insurance Co.State Auto Insurance Co.Gateway Underwriters AgencyMed JamesAAA MissouriMidwestern Insurance AllianceAllstate Insurance Co.Grinnell Mutual Reinsurance Co.United HealthcareAmerican Modern Insurance GroupWestropeASNOM (Agent Support Network of Mo.)Imperial PFSNet Comp InsuranceAmerisure Mutual Insurance Co.SAMBA Safety

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

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missouri agent may-june 2013

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