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INDEPENDENT AGENT JANUARY 2017
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INDEPENDENT AGENT JANUARY 2017 Eric Schwartz, Editor
Open Door Policy New Member Benefit: Monthly Government Affairs Conference Call . . . . . . . . . . . . 5 Virtual University Ask An Expert Briefs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Government Affairs The Wisconsin Healthy Jobs Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Technology Could Channel Integration Be the Future of Personal Lines? . . . . . . . . . . . . . . . . . .10 Commentary From Counsel EEOC to Employers: Focus on Mental Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Agency Management We’re Not Happy Until You’re Not Happy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Community Service Acuity Employees Distribute $500,000 to Charity . . . . . . . . . . . . . . . . . . . . . . . . . .18 Errors & Omissions Self Help: Creating an E&O Culture at Your Agency . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Industry Service Nickel Elected NAIC President, Lenane Joins InVEST National Board . . . . . . . . . 23 Sales Take Action! Tactics to Boost Your Phone Sales Game . . . . . . . . . . . . . . . . . . . . . . 24 Marketing Get Ready for 2017: Great Marketing Ideas for Insurance Agents . . . . . . . . . . . . . 26 Annual Convention Schedule of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2016-2017 Executive Committee President....................................................... Matt Weimer 100 North Corporate Dr., #100, Brookfield, WI 53045 President-Elect................................. Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Secretary-Treasurer ............................................ Jason Bott 330 East Kilbourn Ave., Milwaukee, WI 53202 Chairman of the Board .................................. Steve Leitch P.O. Box 85, River Falls, WI 54022 State National Director ................................ Linda Steiner 555 Main Street #320, Racine, WI 53403 2016-2017 Board of Directors Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Cindy Burns 500 South Central Ave., Marshfield, WI 54449 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Jack Demski 101 East Grand Ave. #11, Port Washington, WI 53074
Jack Riesch P.O. Box 1610, Waukesha, WI 53187-1610
On The Cover… The political landscape is everchanging and the need for quality information and communication is important. As a new member benefit, starting next month, the IIAW will host a conference call to keep interested members up-to-date about the latest legislative, regulatory and political developments going on in Madison. Read more about it on page 5. Here’s to healthy and prosperous 2017!
> ADVERTISERS & INFORMATION AAA Wisconsin ................................................ 30 Acuity Insurance ............................................ 31
Pam Utpadel 100 West Lawrence St. Suite 313, Appleton, WI 54911
Badger Mutual ................................................ 20
Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701
Berkshire Hathaway/Guard .............................. 4 Big “I” Retirement .......................................... 17
2016-2017 Committee Chairs Agency Services ............................................ Kim Dandrea N19 W24200 Riverwood Dr., Waukesha, WI 53188 Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949 Emerging Leaders ...........................................Jack Demski 101 East Grand Ave. #11, Port Washington, WI 53074 Employee Benefits.......................................... Mike Farrell 1300 South Green Bay Rd., Racine, WI 53406 Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Carrier Relations ......................................... Kevin Murray 525 Junction Road, Madison, WI 53717
Ryan McClone 150 Main St. Suite 102, Menasha, WI 54952
Marketing & Membership Development ........... Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610
Marc Petersen 15171 W. National Ave., New Berlin, WI 53151
Technical ...............................................Timothy Kakuska P.O. Box 547, La Crosse, WI 54602-0547
Burns & Wilcox ................................................. 7 Convention w/David Spade ................Back Cover Erickson-Larsen ............................................. 25 IIAW Online CE ..................................................11 IIAW 2107 Prelicensing Classes ........................ 21 J.M. Wilson ..................................................... 22 Pekin Insurance............................................... 14 Robertson Ryan & Associates.......................... 15 SECURA Insurance ............................................ 8 The IMT Group ................................................ 27 West Bend ........................................................ 2 Western National ............................................ 12
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IIAW TO HOST MONTHLY GOVERNMENT AFFAIRS CONFERENCE CALL Beginning on January 30, 2017, the Independent Insurance Agents of Wisconsin (IIAW) will host a Government Affairs conference call at the end of every month exclusively for IIAW members. This new member benefit is designed to keep interested members informed of the latest legislative, regulatory and political developments going on at the Wisconsin State Capitol. The calls will also allow us to solicit members for feedback on important issues. These monthly conference calls will hopefully encourage increased interest and participation among the IIAW membership in the legislative and political process. One regulation or law change could have a significant impact on your business, bottom line and livelihood. Therefore, we want to make sure to inform and engage as many of the members as possible on any proposed rule or law changes. An informed membership allows us to have a strong Association on your behalf. Please consider participating in our new monthly Government Affairs conference calls starting next month. Details of the monthly call will be provided in our weekly e-newsletter, Spotlight, in January.
an expired policy. These changes became effective January 1, 2017, applicable to new and renewal business only. The WCRB released Circular Letters 3134 and 3149 that provided pertinent information. Find both letters at wcrb.org/WCRB/circulars/ ViewCirculars.aspx?y=2016. The ANC penalty is fixed at a flat 2 times the estimated annual premium. The ANC is not a premium surcharge. It is an incentive for the insured to cooperate with the premium audit as required by the policy contract. The ANC endorsement is mandatory on all Wisconsin worker’s compensation insurance policies. The ANC endorsement will be treated the same as the WI Law Endorsement and the WI Cancellation and Nonrenewal Endorsement. Policies without the ANC endorsement attached will be sent a mandatory NTC. Therefore, subject to fine for carrier noncompliance. Additionally, according to the Wisconsin Worker’s Compensation and Employers Liability Insurance Manual:
In other news:
Audit Noncompliance Charge The Wisconsin Compensation Rating Bureau (WCRB) adopted an Audit Noncompliance Charge (ANC) last year. The ANC’s purpose is to provide uniformity in assessing a penalty for noncompliance with the final audit of WISCONSIN INDEPENDENT AGENT
1. If the employer does not comply with Part Five – Premium, Section G (Audit) of the policy, the employer will be considered noncompliant with the policy terms and conditions. When this occurs, the carrier must apply an Audit Noncompliance Charge (ANC) of two times estimated premium.
2. On a multistate policy, the ANC applies only to the exposure in the states where an employer is noncompliant with an audit and where this ANC rule is approved for use. 3. The ANC is a premium charge and is applied in accordance with the applicable state premium algorithm. The ANC is not part of standard premium. 4. The application of the ANC is subject to the following conditions: a. Carriers must comply with all applicable state laws and/or regulations related to audits of workers compensation insurance policies. b. The Audit Noncompliance Charge Endorsement must be attached to the policy at inception of the policy term eing audited. c. The carrier must make two attempts to obtain the audit information and/or complete the audit.
CONTINUED ON PAGE 15
> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at matt@ iiaw.com.
JANUARY 2017 | 5
ASK AN EXPERT: QUICK Q&AS ABOUT REPLACEMENT COST AND PAP COVERAGE Members using the Big “I” Virtual University (VU) sometimes need answers to questions that they can’t find in the VU archives (independentagent.com/Education/VU/). In such instances, the VU’s faculty of experts put their heads together to find the answers. What follows are two briefs from this Ask An Expert resource.
Q: A:
CP “Broadened Replacement Cost”…Good or Bad? I’m competing against a direct writer on a church policy. Instead of ACV or RC, it says BV (Broad Value) by the buildings on their declarations page. I’ve never seen that term. Can you clarify the difference? My form is RC.
Q:
Our insured loaned his pickup to his son. The son was pulling a borrowed utility trailer with our The Virtual University is insured’s pickup. Two a Big “I” members-only wheels came off the trailer resource. Many articles are based on real-life questions into the other lane of received by the Ask an oncoming traffic, causing Expert service. This service damage to an oncoming ensures that the information car. Our insurance is current and topical. Go company, which insures to www.independentagent. the pickup on a personal com/Education/VU/. You will auto policy, has denied need to login with your IIABA liability coverage. Is this username and password correct? before using the VU. The
I visited their website and they have a glossary that defines “broadened replacement cost” to mean “cost of replacing property is limited to 125 percent of the scheduled amount of each building on the policy.” I’m assuming that’s what they are referring to with the “BV” abbreviation. At first glance, this sounds something like the “guaranteed replacement cost” provided by some HO policies where you can collect 125% of the policy limit. However, the reality (IF this is what they mean by “BV” on the dec page) is that this could be a margin clause that they euphemistically refer to as “broadened replacement cost.” This is actually a bad provision if coverage on the buildings is written on a blanket basis. Check out these articles on the Virtual University: • Margin Clauses • Margin Clauses and Blanket Insurance (To find the articles, login to independentagent.com, hover over Education & Events and click Virtual University. Under Virtual University, click Insurance, then Commercial Lines, Property, and then Endorsements. The articles are on the Endorsements page.) So, if you’re both writing the buildings on a blanket basis with the same blanket limit, but they have a margin clause and you don’t, then the coverage you’re offering from that standpoint could be significantly superior in that respect.
6 | JANUARY 2017
PAP Coverage for Pulling a Nonowned Trailer
A:
IIABA does not assume and You would be amazed at has no responsibility for liability or damage which how many questions we may result from the use of get about trailers. On the any of this information. Virtual University, search for the word “trailer” and you’ll get a number of hits on articles dealing with HO, PAP, BAP, and CGL exposures involving all types of trailer situations. The ISO PAP extends liability coverage to nonowned trailers. If the carrier on this claim denies it, it is likely that either (1) they’re using an ISO equivalent form and don’t know what it covers or (2) they’re using a non-ISO form and likely (a) don’t know what it covers or (b) they’re rightfully denying > Various faculty the claim. members of the Virtual University contributed to this article.
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RING IN THE NEW YEAR WITH
THE WISCONSIN HEALTHY JOBS ACT As you prepare to ring in the New Year and make business plans for 2017, I wanted to bring to your attention a little known state grant program intended specifically for small businesses that I am told has gone largely unnoticed since its inception in 2014. 2013 Wisconsin Act 137, otherwise called the “Healthy Jobs Act”, appropriated $3 million each year for grants to reimburse small businesses that sponsor workplace wellness programs for their employees. The Wisconsin Department of Health Services (DHS) administers the grant program which ends on December 31, 2018. Many employers are not taking advantage of the program. Insurance agencies may be able to tap into the program designed to help smaller employers. But as insurance agents, you are also continuously looking for ways to maximize benefits and limit costs for your customers. Wellness programs have proven to do just that and can be used as a marketing tool to obtain new business, strengthen your role as a benefit advisor for your existing customer base, and be used as a revenue generator. According to the Centers for Disease Control and Prevention, for every $1 invested in wellness programs, businesses see a direct return on their investment by saving $3 to $7 in costs. Productivity losses related to personal and family health problems have been cited by an American Productivity Audit (APA) survey to cost U.S. employers approximately $1,685
WISCONSIN INDEPENDENT AGENT
per employee per year, or roughly $225.8 billion annually. And a U.S. Department of Health and Human Services (HHS) report highlighted that workplace wellness programs have proven to reduce health care costs by 20 to 55 percent, reduced short-term sick leave by 6 to 32 percent, and increased productivity by 2 to 52 percent. Workplace wellness programs can be a practical investment to help reduce healthcare costs for many employers, and the Healthy Jobs Act is specifically designed to assist smaller sized businesses that may not have the resources or personnel to implement, promote and support a full blown workplace wellness program. In order to be eligible, businesses with 50 or fewer full-time employees can apply for grants covering up to 30 percent (maximum of $15,000) of the costs of starting new wellness programs in a 12-month period. A wellness program must also include a health risk assessment and at least one or more of the following health component programs or services: 1. Chronic disease prevention 2. Weight management
To learn more about how to take advantage of the state Workplace Wellness Grant Program, visit the DHS’ Workplace Wellness Program Grants web page at dhs.wisconsin.gov/physicalactivity/worksite/grant.htm.
3. Stress management 4. Worker injury prevention programs 5. Health screenings 6. Nutrition education 7. Health or fitness incentive programs 8. Vaccinations 9. Employee physical examinations The Healthy Jobs Act grant program was originally proposed as an income tax credit, but was changed to a direct reimbursement prior to the law’s enactment. Businesses interested in applying for the grant must go through the DHS and, once approved, may submit applications for reimbursement at any time during the year. To learn more about how to take advantage of the state Workplace Wellness Grant Program, visit the DHS’ Workplace Wellness Program Grants web page at dhs.wisconsin. gov/physical-activity/ worksite/grant.htm. On this page you will find a program brochure, application form and Q&A section. Thank you for the privilege to serve as your IIAW state > Misha Lee is Owner/ lobbyist in 2016. I wish Founder of Lee all of you a very happy Government Relations, LLC and lobbyist holidays and for IIAW. Follow Lee much success in the Government Relations on Twitter@mishavlee. New Year!
JANUARY 2017 | 9
TECHNOLOGY
COULD CHANNEL INTEGRATION BE THE FUTURE OF PERSONAL LINES? For a number of years, the auto insurance marketplace has been defined by one chief showdown: direct sellers versus agents. Now, developments in the online comparison and insurtech spaces promise to upend the status quo and redefine how insurance policies are sold.
Fortunately for insurance agents, this change does not leave them just another profession threatened by the Internet. Rather, it may actually help the channel gain ground against its greatest competitors. As founder and CEO of Insurify, Snejina Zacharia leads what is now the industry’s largest marketplace for auto insurance shopping. The virtual insurance agent is partnered with 102 carriers across 48 states and, most notably, more than 800 agencies. It’s part of what Zacharia sees as an eventual “full integration” of distribution channels in auto and potentially all personal insurance lines.
that will create a big, integrated distribution network that gives agents the tools to remain
relevant in a digital environment.” Insurify has aimed to do that by creating a sophisticated algorithm that partners customers with one of the company’s agency partners at the point of sale. About one of every four users go on to contact the agent, who splits the commission with Insurify. Supporters of the system say it allows agencies to connect with customers they may have otherwise lost to direct carriers, who have far more marketing and consumer outreach resources. “The Insurify partnership has helped us grow five times [and] makes our agents 50% Supporters of the system say it more efficient,” said Joe Orr, executive vice allows agencies to connect with president of insurance customers they may have otherwise with Clearlink. “We lost to direct carriers, who have are able to compete with companies such as far more marketing and consumer GEICO and State Farm outreach resources. and continue to grow our business.” “I think it’s superficial to think we can Insurify staff and partners are not the just replace agents,” Zacharia told Insurance first comparison service to make this Business America. “The agent network is argument. When Google Compare launched powerful and a significant portion of US in 2015, Compare.com CEO and Google consumers continue to be served by it, so Compare partner Andrew Rose told IBA the what we need to do is build an infrastructure development was actually a positive one for
10 | JANUARY 2017
agents. “Our model is something that gives agents considerations where they wouldn’t have it otherwise,” Rose said. “We have a shot in competing against GEICO and other big advertisers. You may have to sacrifice a bit of commission up front…but it will allow you to take the personal relationships you offer and put it out on the multi-product market.” If Rose, Orr and Zacharia are correct, such an “integration” of the channel may help agents regain some ground against direct writers, which claimed 51.2% of property/ casualty insurance net premiums written in 2014. Zacharia even hopes to see insurtech, and Insurify specifically, expand to other lines, including home, rental and motorcycle in 2017 and life insurance in 2018. “In 2020, 50% of shoppers will be Generation Z and they’re looking for tools to serve their needs in the easiest way possible,” Zacharia said. “Our goal is to provide those tools and be the dominant marketplace for auto, and eventually > Caitlin Bronson is a all, insurance shopping senior journalist with in the United States.” Key Media. WISCONSIN INDEPENDENT AGENT
CONTINUING EDUCATION
ABEN ONLINE CE CLASSES
IIAW ONLINE CE CLASSES
E&O Risk Management: Meeting the Challenge of Change 6 CE Credits Approved Date: January 19, 2017 Location: ABEN Online – iiaw.aben.tv Time: 9:00 AM – 3:45 PM Premium Financing 2 CE Credits Approved Date: January 20, 2017 Location: ABEN Online – iiaw.aben.tv Time: 10:00 AM – 12:00 PM Cyber Gaps, UASs and TNCs 3 CE Credits Approved Date: January 31, 2017 Location: ABEN Online – iiaw.aben.tv Time: 1:00 – 4:00 PM From Medicaid to the Exchange: What Every Agent Should Know 4 CE Credits Approved Date: February 8, 2017 Location: ABEN Online – iiaw.aben.tv Time: 12:00 – 3:20 PM Ethics in Today’s Changing Times 4 CE Credits Approved Date: February 15, 2017 Location: ABEN Online – iiaw.aben.tv Time: 2:00 – 6:00 PM Insuring Condominiums 3 CE Credits Approved Date: February 21, 2017 Location: ABEN Online – iiaw.aben.tv Time: 9:00 – 11:00 AM Commercial Lines Claims That Cause Problems 2 CE Credits Approved Date: March 21, 2017 Location: ABEN Online – iiaw.aben.tv Time: 8:00 – 10:00 AM
Top 10 Countdown of Personal Lines Coverages & Current Issues 3 CE Credits Approved Date: January 23, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM
Business Auto Coverages 3 CE Credits Approved Date: January 30, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM
Farm Property Coverages 3 CE Credits Approved Date: February 6, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM
E&O Risk Management: Meeting the Challenge of Change, Part 1 3 CE Credits Approved Date: February 8, 2017 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM
E&O Risk Management: Meeting the Challenge of Change, Part 2 3 CE Credits Approved Date: February 8, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM
Insuring Toys and Collectibles 3 CE Credits Approved Date: February 9, 2017 Location: IIAW Webinar – iiaw.com/events Time: 8:00 – 11:00 AM
Contractors Liability Exposures: Risk Analysis to Coverage Solutions 3 CE Credits Approved Date: February 13, 2017 Location: IIAW Webinar – iiaw.com/events Time: 12:00 – 3:00 PM
FOR MORE CLASSES AND TO REGISTER, PLEASE GO TO IIAW.COM
COMMENTARY FROM COUNSEL
EEOC TO EMPLOYERS: FOCUS ON MENTAL HEALTH Happy New Year! 2017 will no doubt bring changes, perhaps even some surprises, on the legal and regulatory front. As the Trump administration transition wound up, and 2016 wound down, the Equal Employment Opportunity Commission (EEOC) continued to issue publications regarding employee rights and employer obligations under federal anti-discrimination laws. The EEOC’s final publication of 2016, regarding the Americans With Disabilities Act (ADA) and mental health covered issues that could impact your agency and many of your agency clients.
what may be a reasonable accommodation for one employee may not be so for another employee who has a different disability or works in a different job.
discrimination based on their pregnancy or pregnancy-related status.
The Americans With Disabilities Act
2016 EEOC Guidance on HIV, AIDS and Pregnancy
The EEOC’s latest publication – issued on
A brief reminder: The ADA makes it illegal, as a matter of federal law, for private sector and state and local government employers with fifteen (15) or more employees to discriminate against qualified individuals with disabilities or to retaliate against any person who complains about disability-related discrimination, participates in an investigation or lawsuit related to such discrimination, or files a charge of discrimination against an employer. The ADA also requires that employers “reasonably accommodate” the known physical or mental limitations of an otherwise qualified individual with a disability—whether a job applicant or current employee—unless doing so poses an “undue hardship” on the operation of the employer’s business. What constitutes a “reasonable” accommodation of an individual’s disability is determined on caseby-case basis, taking into account the nature of the employee’s condition as well as the workplace in which he/she works. As a result,
Earlier in 2016, the EEOC issued guidance addressing protections for workers living with HIV and AIDS, focusing on the extent to which workers are permitted to keep their condition private, suggesting ways in which employers may be required to accommodate such a condition in the workplace, and reiterating that employees may not be harassed or discriminated against on the basis of their condition. 2016 also saw the EEOC issuing guidance on legal rights related to pregnancy, highlighting the fact that such rights extend not just to workers who are pregnant, but also to workers who have been pregnant, intend to become pregnant, and to those who have had or are considering terminating a pregnancy. Similar to the HIV/AIDS guidance, the guidance for pregnant workers also discussed how women may be entitled to workplace accommodations and protections against harassment and
Mental Health Conditions and the ADA December 13, 2016 – focuses on mental health conditions and their coverage under Title I of the ADA. The EEOC’s press release highlights the seriousness and frequency of mental health condition charges under the ADA: EEOC charge data shows that charges of discrimination based on mental health conditions are on the rise. During fiscal year 2016, preliminary data shows that EEOC resolved almost 5,000 charges of discrimination based on mental health conditions, obtaining approximately $20 million for individuals with mental health conditions who were > Josh Johanningmeier is the IIAW’s General unlawfully denied CONTINUED ON NEXT PAGE
Counsel. Call the Legal Services Hotline at (877) 236-1669.
Source: The National Association of Mental Illness (NAMI) WISCONSIN INDEPENDENT AGENT
JANUARY 2017 | 13
COMMENTARY FROM COUNSEL
EEOC TO EMPLOYERS: FOCUS ON MENTAL HEALTH CONTINUED FROM PREVIOUS PAGE
employment and reasonable accommodations. While physical disabilities make up the bulk of ADA cases, the idea that mental health conditions can qualify as disabilities under the ADA is nothing new, and the EEOC’s latest guidance does not break fresh ground as compared to how the EEOC has addressed mental health issues in the past. The ADA has required (and continues to require) employers to address and accommodate “substantially limiting” mental health conditions in the same manner as physical disabilities. Similar to the HIV/AIDS guidance issued earlier this year, the mental health guidance addresses the circumstances under which an employee may keep his/her disability private. In particular, this means that, with limited exceptions, employers may not ask questions about an employee’s mental health once an employee has started employment unless (1) the employee has asked for a reasonable accommodation or (2) the employer has objective evidence that the employee cannot perform his/her job or poses as safety risk due to his/her condition. Where the EEOC’s latest publication does provide new insight is in the specific examples given by the EEOC of mental health conditions and potential accommodations. In
its companion press release, the EEOC noted that charges of discrimination based on mental health conditions are on the rise, specifically mentioning “veterans who have returned home with service-connected disabilities.” Indeed, the title of the EEOC’s new guidance specifically references both depression and post-traumatic stress disorder (PTSD) as mental health conditions for which workers have rights under the ADA. The focus on veterans suggests that, going forward, the EEOC may be seeking out claims where military service-related disabilities, both physical and mental, are involved. Employers should be wary that some statements in the EEOC’s guidance may mislead employees into mistakenly believing they are entitled to certain benefits. For example, while accommodations under the ADA must be analyzed on a case-by-case basis—taking into account the nature of the employee’s condition as well as the workplace in which he or she works—the EEOC’s guidance provides specific examples of “possible” accommodations, which include: altered break and work schedules, quiet office space or devices that create a quiet work environment, changes in supervisory methods, specific shift assignments, and permission to work from home. A casual reading of the
examples—from the agency charged with overseeing and enforcing the ADA—may well appear to be a menu of employee options untethered to the specific condition of the employee or the needs of the business. Consequently, the EEOC’s guidance will likely place employers in a difficult position when an employee expects the accommodations listed in the EEOC’s guidance. Likewise, while the EEOC guidance states that certain conditions, such as, bipolar disorder, schizophrenia, and obsessive compulsive disorder (OCD) “easily” qualify as disabilities, employers must still follow their standard process of requesting information from a health care provider (through the employee) to determine whether an accommodation is needed and to what extent.
Conclusion For employers, the ADA is like all antidiscrimination and anti-retaliation laws: compliance is non-negotiable and the consequences for violating the law are high. The complexities of mental health conditions make managing ADA obligations particularly difficult and require additional vigilance when those issues arise.
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At each attempt, the carrier must notify the employer regarding the specific, required records and the amount of the ANC to be applied if the employer continues to refuse to comply with the audit. d. The carrier must adequately document the audit file regarding the above attempts to obtain the required audit information. e. When a carrier applies an ANC to the policy, and cancellation for audit noncompliance is permissible under state law, the carrier may cancel the policy and must issue a cancellation notice in accordance with applicable state laws and/ or regulations. 5. This ANC rule applies to mail/e-mail, telephone, computer (remote access), and physical audits, unless otherwise provided by state law. 6. The ANC may be applied to guaranteed cost policies as well as retrospectively rated policies. 7. The scenarios listed below may occur and are treated as follows: • If an ANC is applied and the employer pays the ANC and later allows the audit then the carrier may: 1.Perform the final audit and detrmine the final policy predmium based on the results of the audit; and 2. Refund the ANC
RRA_IIAW_Ad_March_16_Outlines.indd 1 AGENT WISCONSIN INDEPENDENT
to the employer; or applies the ANC amount to any outstanding balance on the policy. • If an ANC is applied and the employer does not pay the ANC but later allows the audit then the carrier may perform the final audit and determines the final policy premium based on the results of the audit. • If an ANC is applied and the employer pays the ANC but does not later allow the audit then the carrier does not change the previous reported Unit statistical data and Noncompliance transactions. • If an ANC is applied and the employer does not pay the ANC and does not later allow the audit then the carrier does not change the previous reported Unit statistical data and Noncompliance transactions.
1095-B and 1095-C Reporting Deadlines The IRS has pushed back the reporting deadline for 1095-B and 1095-C, originally scheduled for January 31, 2017. The new deadline for submitting these documents is March 2, 2017. The IRS said: “Following consultation with stakeholders, the Department of the Treasury and the IRS have determined that a substantial number of employers, insurers, and other providers of minimum essential coverage need additional time beyond the Jan. 31, 2017, due date
to gather and analyze the information and prepare the 2016 forms 1095-B and 1095-C to be furnished to individuals.” Business owners must file Forms 1095B and 1095-C (the size of the company determines which form is used) in order to be in compliance with the Affordable Care Act (ACA). The data collected shows whether or not businesses are fulfilling their legal obligations with regard to employee health coverage under the ACA. For more information on this topic, visit Accounting WEB’s website at accountingweb.com/tax/irs/ irs-extends-aca-reporting-deadline-for-1095forms.
Anniversary Rating Date In November 2016, OCI approved the elimination of the Anniversary Rating Date (ARD) rules set by the WCRB. The policy’s effective date is May 1, 2017. Effective May 1, 2017, prior policy effective dates will not be used to govern the application of rates, rules and forms with the issuance of a replacement policy. Policies with an effective date of May 1, 2017 or later, will not have an anniversary rating date applied. The Anniversary Rating Date endorsement will be withdrawn. For information about the ARD, go to WCRB. org, click FAQ at the top of the page and enter ‘Anniversary’ in the Search by word or phrase field. Happy New Year! Here’s to a prosperous 2017!
2/2/2016 JANUARY 20178:31:25 | 15AM
AGENCY MANAGEMENT
WE’RE NOT HAPPY UNTIL YOU’RE NOT HAPPY Every once in a while I jokingly will say the motto of a company who gives me bad customer service is:
We’re not happy until you’re not happy. There are certain industries that this seems to be especially true. People complain and joke about some of their experiences with government agencies. Or, how about the reputation of the cable TV industry? It’s hard to shake off a reputation for bad service that has been going on for years – although they do seem to be getting better. Other industries, such as the airlines and cell phone service providers are doing their best to improve.
Unfortunately, businesses can let their customers down. It’s not just happening in the cable TV, airline and phone industries; it’s happening in all industries. Businesses upset their customer’s in many ways. Here are just a few:
a They make mistakes that cause complaints. No one or no company is perfect. Even the best brands that are known for the customer First, you have to know that customer’s service, such as Zappos, Nordstrom and others. expectations are higher than ever. They expect Customers understand this. It’s the way the problems and complaints are handled that make No one or no company is perfect. It’s the way the the difference between problems and complaints are handled that make the best and the rest.
the difference between the best and the rest. good service. We teach the customer what good service is when we tout our awards and make promises. When United makes a promise such as Fly the Friendly Skies, they better be prepared to deliver on that promise. That’s why they call it a brand promise! And when it is delivered, the brand is established.
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a They make bad hires that aren’t good at delivering customer service. I’m surprised at how some companies allow questionable employees to work in direct customer-facing jobs — or any job for that matter. One bad employee can lose a customer and bring down a company’s culture. a They have policies that aren’t customer focused. I hate it when an employee says,
“That’s our policy.” Typically, that is the line that is used to hide behind rules and policies that are more company-focused than customer-focused. Employees should be given guidelines, not hard-and-fast policies. They should be empowered to come up with creative solutions that are good for the customer, and at the same time, don’t hurt the company. a They make it hard to do business with them. I always ask my clients, “How easy is it to do business with you?” It’s important to make the customer experience frictionless. Customers want a hassle-free experience. They want speed and simplicity. If you’re going to make a brand promise, keep it. Otherwise, you and your company may be the brunt of the punch line — We’re not happy until you’re not happy!
> Shep Hyken, CSP, CPAE is a customer service expert, speaker and New York Times and Wall Street Journal bestselling author. For more information visit Hyken.com.
WISCONSIN INDEPENDENT AGENT
Don’t hide from your fiduciary responsibility. Do you sponsor a retirement plan for your agency? There is a continuous stream of judicial and regulatory developments in the 401(k) plan world with many addressing the definition and duties of a plan fiduciary. Many plan sponsors mistakenly believe that they are not a plan fiduciary or have outsourced that role to another party. In reality, while steps can be taken to mitigate duciary risk, no agency owner can eliminate that role entirely. The Department of Labor expects a plan fiduciary to perform responsibilities that include: Acting solely in the interest of plan participants and their beneficiaries with the exclusive purpose of providing benefits to them Carrying out their duties prudently Following the plan documents Diversifying plan investments Paying only reasonable plan expenses
The Big “I” MEP 401(k) Plan, available exclusively to Big “I” members, has helped many agencies fulfill their fiduciary obligation by reviewing their plan expenses and educating them on the true cost of their plan. In addition, many were able to reduce their recordkeeping and investment expenses. Let us compare your plan to our and industry benchmarks! Don’t hide–thrive. Contact us today for a complimentary plan consultation.
www.iiaba.net/Retirement
©2016 Big “I” Retirement Services, LLC (“BIRS”), sponsor of the Big “I” MEP 401(k) Plan. Participating employers may retain limited fiduciary responsibility in connection with a decision to participate in the MEP and other matters. BIRS assumes fiduciary responsibility of sponsorship and administration unless otherwise delegated. Mesirow assumes certain fiduciary responsibilities as investment manager for investment selection and other similar functions.
COMMUNITY SERVICE
ACUITY EMPLOYEES DISTRIBUTE
$500,000 IN CHARITABLE CONTRIBUTIONS Sheboygan-based Acuity Insurance announced that, at a December 2016 Town Hall staff meeting, employees determined the distribution of a special year-end contribution of $500,000 among six different organizations.
Feeding America’s Rayna Andrews spoke to Acuity’s employees during the Town Hall meeting. Laura Roenitz from Safe Harbor also addressed the crowd. Those organizations included the Conquer Cancer Foundation, Feeding America, Safe Harbor of Sheboygan County, The Salvation Army, Sharon S. Richardson Community Hospice, and Mental Health America.
“Our mission is conquering cancer by funding breakthrough research and sharing cutting-edge knowledge,” said Gina Grantham, Grants Administrator. “The moment we live for is being able to help
Acuity’s donation was distributed to the following organizations: Conquer Cancer Foundation, Feeding America, Safe Harbor of Sheboygan County, The Salvation Army, Sharon S. Richardson Community Hospice, and Mental Health America. Based on employees’ direction, the Conquer Cancer Foundation received the largest allocation of nearly $115,000. The Conquer Cancer Foundation (CCF) was founded by the foremost cancer doctors of the American Society of Clinical Oncology and works to seek dramatic advances in the prevention, treatment, and cure of all types of cancer.
18 | JANUARY 2017
children and adults in the communities where we all live and work. The work that we do every day is not possible without the support of donors like Acuity.” The other five groups each received donations ranging from nearly $60,000 to over $99,000. Acuity’s special contribution adds to the company’s ongoing support
to the community throughout the year. Guided by the Acuity Charitable Foundation, Acuity contributed nearly $1.8 million in 2016 to worthy organizations. According to benchmarking organization Ward Group, Acuity donates 300 percent of what other corporations its size give to charity. “We have a strong commitment to supporting charitable organizations and helping the communities where we work, live, and do business,” said Ben Salzmann, Acuity President and CEO. “We also know that organizations face a particular budget crunch at the end of each year, which is why we have made a special year-end donation for the past several years.” Acuity’s community support throughout the year also includes in-kind donations and use of the company’s corporate headquarters for charitable events. In addition, Acuity employees contribute to charitable causes each year through donations of time, money, and much-needed supplies. WISCONSIN INDEPENDENT AGENT
ERRORS & OMISSIONS
SELF HELP:
CREATING AN E&O CULTURE AT YOUR AGENCY Early in my career, I was assigned a multi-million dollar claim that was in suit for 10 years and included two jury trials, two trips to the court of appeals, and one to the state supreme court before our insured was finally vindicated. As the ink was drying on the final judgment in his favor, the agency owner hired his defense attorney as in-house counsel and assigned him the task of training the agency’s staff and reviewing agency procedures to prevent future E&O claims.
Be mindful of the connection between marketing and client expectations. I would love to see every agency owner hire a winning trial lawyer with E&O experience as in-house counsel, but I recognize that’s not possible. Here are a few feasible steps agency owners can take to lessen their E&O exposure. Checklists. Using checklists helps make sure agents don’t forget something when reviewing coverage with a customer. It also gives the customer something to read regarding available coverages and a place to initial coverages both accepted and rejected. Checklists help the agency produce a thorough proposal, accurately reflect what WISCONSIN INDEPENDENT AGENT
coverages the customer does and does not want, and may lead to increased sales. If you’re looking to implement checklists at your agency, look no further than the Big “I” Advantage Virtual Risk Consultant (VRC), powered by Rough Notes. A VRC subscription gives you access to more than 700 coverage checklists from different industries, as well as many other risk exposure assessment tools. (To access the VRC: Login into independentagent.com, hover over Big ‘I Resources and click E&O Risk Management. On the E&O Happens page, click on the Big ‘I” Advantage Virtual Risk Consultant icon.) Expectations. Be mindful of the connection between marketing and client expectations. Insurance agents are professionals who are well versed on the products they sell, but they are also salespeople who are often willing to go—or at least promise to go—the extra mile for their customers in order to make a sale. Unfortunately, agency employees sometimes make promises they can’t keep. Documentation. This is your best defense in
an E&O claim. Consider “good,” “better” and “best” documentation: Good: a note made in the agency system outlining what the agent offered to the client, as well as what they accepted and rejected. Better: a letter or email to the customer memorializing what the agent proposed, as well as what the client accepted and rejected. Best: signed rejection of coverage or increased limits. Most agencies can’t afford to keep an ace trial lawyer on staff to watch their every step. But it’s possible for your agency to create an E&O culture on its own—which just might increase the efficiency of your operation.
> Jim Redeker is VP and claims manager at Swiss Re Corporate Solutions.
JANUARY 2017 | 19
WS E N E H T N I S R E B M ME new and renewal transportation accounts, setting up and binding policies and serving independent insurance agents in Illinois and Wisconsin. Prior to this promotion, Chance served as an Assistant Transportation Underwriter.
Integrity Named a Best Place to Work in Insurance Integrity Insurance has been named in the annual Best Places to Work in Insurance program, which recognizes employers for their outstanding performance in establishing workplaces where employees can thrive, enjoy their work and help their companies grow. “Integrity is thrilled to be selected as one of the best places to work in insurance,” said Integrity President Jill Wagner. “It’s no secret associates play an important role in the success of our company. We take great pride in cultivating a culture that’s attractive and inspiring for them to thrive.”
Chance Winke
Before joining J.M. Wilson, Chance worked for a retail agency, where he handled both personal lines and commercial property and casualty business. Previously, he was a financial representative with a decade of experience in retail banking. Chance achieved his Associates degree from Heartland Community College, specializing in Business Administration. For more about J.M. Wilson, please visit jmwilson.com.
“Being named to Business Insurance’s list of the Best Places to Work in Insurance for 2016 demonstrates that Integrity has built a culture in which employees are supported and engaged, which benefits their customers and the employers’ financial performance,” says Business Insurance Publisher Peter Oxner. Integrity’s key to success includes dedicated associates and a winning workplace culture. Their associates are happy and enjoy a competitive compensation/benefits package, career development opportunities, work-life balance and a catalog of great perks. Best Places to Work in Insurance is an annual feature presented by Business Insurance and Best Companies Group that lists the agents, brokers, insurance companies and other providers with the highest levels of employee engagement and satisfaction. Harrisburg, Pa.based Best Companies Group identifies the leading employers in the insurance industry by conducting a free two-part assessment of each company. The first part is a questionnaire completed by the employer about company policies, practices and demographics. The second part is a confidential employee survey on engagement and satisfaction. The program divides employers into the categories of small, 25-249 employees; medium, 250- 999 employees; and large, 1,000 or more employees. This year’s report features 74 companies of various sizes, from 25 employees to more than 6,500. For more about Integrity, please visit integrityinsurance.com.
J.M. Wilson Promotes Winke to Transportation Underwriter J.M. Wilson is pleased to announce the promotion of Chance Winke as Transportation Underwriter in their Arlington Heights, Illinois office. Chance is responsible for quoting
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Since 1887, Badger Mutual has been the insurance company independent agents and policyholders can trust. Now, with our new TRUST Auto and Home plans, policyholders are receiving contemporary, broad coverages at our best rates.
Visit our website to quote your customer in the TRUST program today!
badgermutual.com 800/837-7833 WISCONSIN INDEPENDENT AGENT
2017 PRELICENSING CLASS SCHEDULE
Conducted at State Association Headquarters, IIAW prelicensing classes fulfill the study requirements for life, health, property and casualty. Full course materials — not just an outline — are included with registration. The classes are:
REGISTER AT IIAW.COM 2017 CLASS DATES L IFE & A CCIDENT /H EALTH January 9-12 February 6-9 March 6-9 April 3-6 May 15-18 June 5-8 July 10-13 August 7-10 September 11-14 October 9-12 November 6-9 December 4-7
P ROPERTY & C ASUALTY Jan. 30-Feb. 2 February 20-23 March 27-30 April 17-20 May 22-25 June 19-22 July 24-27 August 21-24 September 25-28 October 23-26 November 13-16 December 11-14
!Designed to help you pass your state licensing examination. !The quickest way to meet the Wisconsin education hours requirement. !Taught by experienced insurance professionals who know the business. !Conducted in a comfortable classroom with free parking. !Approved by the Office of the Commissioner of Insurance.
IIAW MEMBER PRICING: $340 - Pricing given for full class registrations.
NON-MEMBER PRICING: $355 You may also take individual classes.
DAILY SCHEDULE Life & Accident/Health Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Life Policies, Terms & Concepts Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) SECTION B: Life Policies, cont. & WI Life Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) SECTION B: Accident & Health Policies, Terms & Concepts Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Accident & Health, cont. & WI Health Insurance Law
Property & Casualty
Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Property Policies, Terms & Concepts CLASS SITE/DIRECTIONS The IIAW is located at 725 John Nolen Dr. in Madison, WI. Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) When traveling south on John Nolen, it’s the last driveway SECTION B: Property Policies, cont. & WI Property Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) before Highway 12/18 (Beltline). Located near the Alliant SECTION B: Casualty Policies, Terms & Concepts Energy Center and Sheraton Hotel. Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) INCLEMENT WEATHER SECTION B: Casualty Policies, cont. & WI Casualty Insurance Law If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public ! Please contact Katie@IIAW.com for information about multiple registration discounts. schools are closed, the IIAW is closed and prelicensing is canceled for the day. Canceled classes are made up on The course fee includes all class materials. Materials are Friday. distributed on the first day of class. You receive: HOTEL INFORMATION • The Life & Accident/Health or Prop. & Casualty Insurance Students requiring lodging will receive a special rate at the Study Manual. Clarion Suites, 2110 Rimrock Rd. in Madison. Please call • The Intermediary’s Guide to Wisconsin Insurance Law. the hotel directly at 608.284.1234, and ask for the • The State of Wisconsin Ins. Licensing Candidate Handbook. independent insurance agent’s discount. This provides all the necessary information to obtain a license.
To register, click the Education tab on IIAW.com. For Wisconsin exam info, visit prometric.com.
EEOC LAUNCHES SMALL BUSINESS RESOURCE CENTER One of the most challenging aspects of owning a small business is knowing and following legal requirements regarding hiring, managing, and sometimes terminating employees. Fortunately, the Equal Employment Opportunity Commission (EEOC) recently launched a Small Business Resource Center (eeoc.gov/employers/smallbusiness) designed to assist small business owners in their compliance with employment laws enforced by the agency. As you may be aware, several federal laws prohibit employment-based discrimination and apply to small employers. For example, laws impacting employers employing 15 or more employees include:
a The Americans with Disabilities Act (ADA). a The Genetic Information Nondiscrimination Act of 2008 (GINA).
a The Title VII laws addressing employmentbased discrimination relating to race, religion, sex (including pregnancy, sexual orientation, or gender identity), and national origin.
a The Age Discrimination in Employment Act (ADEA), applicable to employers employing 20 or more employees, prohibits discriminatory practices against individuals aged 40 and over.
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1 in 4
underwriters at J.M. Wilson previously worked for a retail agency
RELATIONSHIPS IT’S ALL ABOUT WHO YOU KNOW
This new, dedicated EEOC Resource Center contains a general overview of small business obligations including the posting and record-keeping requirements to assist in staying compliant with the myriad of nondiscriminatory laws. The website also has available FAQs, tips, fact sheets and videos, as well as no-cost outreach programs. This is a good resource to keep in mind when you need to make sure how you are treating employees is legal.
> Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/or reduce expenses.
GENERATIONS OF LEADERSHIP
55% OF OUR AGENTS HAVE WRITTEN BUSINESS WITH US FOR 10 YEARS OR MORE
BROKERAGE / PROFESSIONAL PERSONAL LINES PROPERTY & CASUALTY TRANSPORTATION SURETY
1947
the year our longest-standing carrier relationship began 22 | JANUARY 2017
MGA and E&S Broker since 1920
(800) 666-5692 | JMWILSON.COM WISCONSIN INDEPENDENT AGENT
INDUSTRY SERVICE
COMMISSIONER NICKEL
ELECTED AS 2017 NAIC PRESIDENT Ted Nickel
Wisconsin Insurance Commissioner Ted Nickel was elected as President of the National Association of Insurance Commissioners (NAIC) on December 13, 2016. The annual elections comprise the votes of all commissioners.
“I extend my congratulations to our Insurance Commissioner, Ted Nickel, who has become the new NAIC President,” said Governor Walker. “Ted has been an outstanding insurance commissioner for Wisconsin and he will be an exemplary leader for the NAIC.” “I am honored and humbled to lead the NAIC and appreciate the support of my fellow commissioners,” said Commissioner
Nickel. “Wisconsin was one of the founding members of the NAIC, and our first insurance commissioner served as the organization’s first president. As a result, Wisconsin has long appreciated the work the NAIC does to protect consumers and assist states with regulating their domestic insurance industry.” The NAIC is an organization created in 1871 and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state regulators take a number of actions including establishing standards and best practices, coordinating regulatory oversight, and conducting peer review of member regulators. The NAIC staff provides support for these efforts as well as representing the views of state regulators both domestically and internationally.
The following officers were elected by NAIC membership: President: Theodore K. Nickel, Wisconsin Commissioner of Insurance President-Elect: Julie Mix McPeak, Commissioner of the Tennessee Department of Commerce and Insurance Vice President: Eric A. Cioppa, Superintendent of the Maine Bureau of Insurance Secretary-Treasurer: David Mattax, Texas Insurance Commissioner Newly elected officers assumed their duties on January 1, 2017. For more information on the NAIC, visit naic.org.
PROGRESSIVE EXECUTIVE
JOINS INVEST NATIONAL BOARD
Neil Lenane
InVEST, the insurance industry’s premier classroom to career education program, recently announced that Neil Lenane has joined its national board. Lenane is Progressive Insurance business leader for talent acquisition.
“InVEST is pleased to announce Neil Lenane has joined its distinguished board of directors,” says Cindy Hower, InVEST board chair and president of Kellerman Insurance, an independent agency in Holton, Kansas. “Neil brings a wealth of experience and talents to the InVEST board of directors and we look forward to continuing to work with him to improve the program.” WISCONSIN INDEPENDENT AGENT
Lenane has been on the Progressive team for 26 years in various operational and human resource roles including business leader talent management, human resources director, human resources manager and regional claims director. He also currently leads the Progressive Senior Diversity Council and is the business sponsor for the company’s STEM initiatives. Prior to joining the Progressive team, he was with Aetna L&C for three years as a litigation representative. Lenane earned a Bachelor of Arts degree in Human Resource Management from the University of Georgia and is certified as a Senior Professional in Human Resources. “InVEST is vital to the perpetuation of the independent agency system and the success of the insurance industry as a whole,” says Robert Rusbuldt, Independent Insurance
Agents & Brokers of America president & CEO. “Educators, volunteers, and independent agency and industry leaders, like Neil Lenane, are key to the success of this program as it continues to develop and expand. We applaud Neil and thank him for him commitment to this critical endeavor.”
JANUARY 2017 | 23
SALES
TAKE ACTION! 8 TACTICS TO BOOST YOUR PHONE SALES GAME Sidney Roe, digital content manager for TrustedChoice.com, devised eight great ways to maximize your phone sales.
1) You have 7 seconds to make a great first impression. Own them. Consider: 67% of people who reach a business and don’t get a live person have reported hanging up. People clearly crave the human connection that comes from a live person answering their call. 60% of TrustedChoice.com referrals choose to call agents instead of email
2) Focus on what you can do, not what you can’t do. Every phone call is an issue waiting to be solved. Focusing on your limitations - what you can’t do - doesn’t help move toward a solution; it distracts and makes your caller feel less confident in your ability to give them what they want. Even if what you can do doesn’t solve the problem immediately, your caller will be one step closer to the solution than they were before they picked up the phone.
3) Pick up the phone in 4 rings. People count rings. Think about it. You do, don’t you? Heck, I know I do. The more rings someone hears, the more they think no one is home. Even when a lot of time hasn’t passed, callers can still feel like their waiting too long because of the number of rings.
Outstanding phone service is more than being nice and friendly; it’s understanding what your caller is going through when you pick up the phone and relating to it.
them. These are consumers handing us direct opportunities to make an incredible first impression. Own it and trust begins to form. Drop the ball and don’t ask why they took their business elsewhere.
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Ashley from Ruby Receptionists says the best practice is to pick up the phone in four rings. By five or six, callers start to get irritated. Ruby Receptionists has provided personalized live, virtual receptionist services to small businesses throughout North America since 2003.
4) Maybe it’s time to say goodbye to automated phone trees. Over 70% of people have reported hanging up when they reach a phone tree. Businesses see phone trees as a tool to help them disseminate calls. Consumers see phone trees as a nuisance keeping them from talking to a live human. A phone tree places the burden on the caller to figure out how to reach the person they need. Conversely, if a live person answers, it’s the live person’s job to get the customer to the right individual or solve the problem. A phone tree is work for the customer.
5) Expectations are important. Set them. Consumers love transparency (ask anyone who likes to track shipments) and they loathe being kept in the dark. For example, if someone leaves you a voicemail, don’t let them wonder when you’ll call them back. It makes them nervous and tense. Make sure your voicemail sets their expectation about receiving a callback.
6) Consider a live receptionist for late night calls. The mobile world is 24/7. Having a phone with me at all times in all places makes businesses more susceptible to my after-hours needs. Ashley shares that Ruby Receptionists has seen an increase in mobile calls in recent WISCONSIN INDEPENDENT AGENT
SALES years (their business is 13 years old). That’s why they answer phone calls from 8 a.m. to 12 p.m. EST for many of their clients. When a tired and frustrated client thinks they’ll hit a voicemail at 9 p.m., but
what your caller is going through when you pick up the phone and relating to it.
Ashley and I talked quite a bit about the
The Power of 30 seconds is a free inbound
instead hears a friendly and helpful person on the other end, it makes a huge impact.
cool, incredibly user-friendly features available in the Ruby Receptionists mobile app. But what really stood out were the analytics features. It made me wonder how many agents track and measure their phone service.
phone sales training course created just for Independent Agents. Get started here: independentagent. com/30seconds. You can find out more about Ruby Receptionists at callruby.com.
7) Don’t be nice. Be empathetic. Ashley explains that Ruby Receptionists hires people who really want to help others. They hire people who genuinely want to positively impact other people’s lives. Outstanding phone service is more than being nice and friendly; it’s understanding
WISCONSIN INDEPENDENT AGENT
turn into new clients? And what impact your phone service had in that conversion? Might be time to find out.
8) Track and measure.
Amazingly cool mobile apps aside, do you know how much your callers enjoy the phone service you provide? Do you know how many phone prospects
> Sydney Roe is the digital content manager for TrustedChoice.com.
JANUARY 2017 | 25
MARKETING
GET READY FOR 2017:
GREAT MARKETING IDEAS FOR INSURANCE AGENTS With 2017 just around the corner, we’re back with a new round of marketing ideas for insurance agents that will help you expand your reach and retain more policyholders. 1. Keep Cleaning That Data Last year, we suggested cleaning up your database, and we’re suggesting it again! In fact, data cleaning should be part of the monthly routine. Why? Because the accuracy of your data impacts every other facet of your insurance marketing strategy. According to the 2016 Experian Data Quality Report (edq.com/contact-dataquality-statistics), 75 percent of companies believe that dirty data is undermining their ability to serve customers. Case in point, 81 percent of companies report experiencing problems with email deliverability over the past 12 months. And while poor deliverability is a problem that wastes time and resources and could affect your sender reputation, that’s only the tip of the iceberg. Think about it. You’ve segmented your list based on the data you’ve collected and created personalized content that depends on that data being accurate. If it’s not, you may as well be throwing spaghetti at the wall to see if it’ll stick.
2. Don’t Forget to Optimize Your Emails Data hygiene will help you land your insurance agency marketing emails in more inboxes, but that’s only half the battle. You can deliver emails all day, but it won’t do you much good if no one is reading them. So how do you get the open? Think about the first impression. Would you open an email from a sender you don’t recognize? Neither will your policyholders. In fact, they may report it as spam. Then there’s the subject line. Is it relevant? Is it valuable? Is it a must-see proposition? Well, it should be all of these things and more.
26 | JANUARY 2017
And if you really want to increase your open rate, consider a touch of personalization. Personalized emails subject lines have been known to boost open rates by 41.8 percent. For a more in-depth explanation of email optimization, check out Understanding the Anatomy of an Email Newsletter (outboundengine.com/ blog/anatomy-of-an-email-newsletter). A few small adjustments can go a long way!
3. Shoot for Brand Consistency Across All Channels Brand consistency isn’t a moving target; it just requires a little forethought. Remember, branding is more than just slapping your logo on something. Whether you’re talking about social profiles, online business listings and online review sites, email campaigns, business cards or promotional mailings, it’s essential that you maintain a consistent all-around look and tone that makes you easily recognizable to WISCONSIN INDEPENDENT AGENT
MARKETING prospects and policyholders. Online, that means taking control of your social profiles, business listings and online reviews. The same great headshots, colors and logos you use for your physical promotions can be leveraged to create a consistent image across all online platforms. And please don’t forget to update contact info and crosspromote your profiles!
When we bring up paid advertisements, people tend to cringe. But the truth is they’re effective. In 2015, 76 percent of B2C content marketers in North America used promoted posts, with 61 percent reporting they were effective or very effective. 4. Get Used to the Idea of Paid Social Media Advertisements When we bring up paid advertisements, people tend to cringe. But the truth is they’re effective!
In 2015, 76 percent of B2C content marketers in North America used promoted posts, with 61 percent reporting they were effective or very effective. The numbers for social ads were just slightly lower, with only 74 percent of B2C marketers using them and 59 percent reporting them to be effective. We’ve talked about Facebook Ads (facebook. com/business/products/ads) and boosted posts before. They’re affordable, easy to use and can really increase your exposure. But Facebook doesn’t have the market cornered. There are now great ways to promote your social posts across all major platforms:
referrals and increase policyholder retention all in one go. Automation can help you identify warm leads, fast track hot leads and improve referral follow-ups so that you make the most of every connection, automatically. From content creation to email campaigns and social sharing, insurance marketing automation can help you save time while providing value to your policyholders, strengthening your relationships long-term, and keeping you top of mind for future business opportunities and referrals. And that leaves you free to attend to do what’s really important…
> Twitter ads (ads.twitter.com/login)
Wrap-up
> LinkedIn ads (business.linkedin.com/ marketing-solutions/ads) > Instagram ads (business.instagram.com/ advertising)
5. Take Advantage of Marketing Automation We know some of you are the hands-on, do-ityourself types, and we respect and admire you for it. But we all need a little help sometimes. Automation is a great way to maximize
And there you have it, five easy marketing ideas for insurance agents in 2017. With the right automated insurance marketing strategy, you can increase policyholder > Erin Myers is the retention and content marketing maximize your specialist at referral business! OutboundEngine.com.
118 IIAW ANNUAL TH
CONVENTION
SCHEDULE OF EVENTS WEDNESDAY, MAY 3 8 AM 8:30 9:30 AM
CONVENTION REGISTRATION OPENS IIAW AUTOMATION/TECHNOLOGY OPEN FORUM (1 CE FILED) Presented by the Automation/Technology Committee
8:30 10:30 AM
BECOMING A PERSON OF INFLUENCE Presented by Brent Kelly, CEO of BizzGrizz
8:30 – 10:30 AM
FEDERAL HEALTH CARE REFORM: NOW WHAT? (2 CE FILED) Presented by David Grunke
9:30 – 10:30 AM
LEGAL RISK OF AN AGENCY’S WEBSITE (1 CE FILED) Presented by Josh Johanningmeier, IIAW General Counsel
10:45 12:15 PM
WELCOME REMARKS: IIAW President Matt Weimer, Diversified Insurance Solutions KEYNOTE: CREATING GROWTH AND PROSPERITY FOR OUR ORGANIZATIONS: GETTING IN FRONT OF THE NEXT TECH TIDAL WAVE Presented by Artell Smith, Adjunct Faculty, UW-Madison
12:30 2:30 PM
2:45 4 PM
CE SESSIONS Working lunch provided for all sessions 12:30-2:30 PM INSURTECH: DISRUPTION & INNOVATION IN OUR INDUSTRY (1 CE FILED) Ryan Hanley, Sr. VP of Marketing, TrustedChoice.com 12:30-2:30 PM HOW TO GROW YOUR BENEFITS BOOK (2 CE FILED) Presented by Aflac 1:30-2:30 PM AUTONOMOUS VEHICLES (1 CE FILED) Presented by Charlie Kingdollar, Global Emerging Issues Specialist, Gen Re CEO PANEL Featuring: Ben Salzmann, Acuity; Dave Gross, SECURA; Paul Mueller, The Hanover; and Kevin Steiner, West Bend (tentative).
4:308 PM
CONVENTION SHOWCASE Food and beverage available in exhibit hall. $ 100 awarded every 5 minutes for 1 hour, sponsored by The IMT Group
7:30 – 11:30 PM
CONVENTION COMEDY SHOW Headliner: David Spade (10-11 PM) Opener: Kevin Farley (9:00-9:45) No alcohol will be served during the show. VIP Meet-and-Greet with David Spade to follow VIP package includes: Meet-and-greet, VIP seating, complimentary drinks and beverage service
THURSDAY, MAY 4 89:30 AM
ANNUAL AWARDS BREAKFAST & BUSINESS MEETING
10 11:45 AM
WALKING RISK MANAGEMENT TOUR (2 CE FILED) Todd Davis, Principal of Davis Agency
12 PM
CONVENTION ENDS
[ Visit IIAWConvention.com for complete details ]
MAY 3-4, 2017 FEATURED ENTERTAINMENT AND SPEAKERS DAVID SPADE “And you are...?” There’s no doubt who he is! Nominated in
1999 for an Emmy Award for his memorable role as Dennis Finch, the wisecracking, power-hungry assistant on “Just Shoot Me,” David Spade became a household favorite during his five-year stint as a cast member of NBC’s “Saturday Night Live.” The comedian was nominated for a Golden Globe in 2000 and an American Comedy Award in 1999 for his work on NBC’s “Just Shoot Me”. On the big screen, Spade continues to be a box office draw. He was recently seen in Sony Pictures’ GROWN UPS 2 alongside Adam Sandler, Chris Rock and Kevin James. The film earned over $200 million dollars worldwide at the box office. On the small screen, Spade previously starred in the CBS comedy “Rules of Engagement”, which ran for seven seasons from 2007 through 2013. This will be an unforgettable performance!
KEVIN FARLEY is a regular at notable venues such as The Laugh Factory
in LA and Chicago, The Improv in LA and Palm Beach, Florida and The Comedy Store. Farley studied at the famous Second City in Chicago and then soon after starred in films such as Black Sheep (with his brother Chris Farley) and The Waterboy with Adam Sandler.
PAUL ARTELL SMITH has nearly 30 years of experience in all facets of
human resources management and has worked for four industry leaders during his career, including ExxonMobil, Fidelity Investments, Hewitt Associates, and Aon plc. Artell is also currently CEO of two entrepreneurial ventures, WatchWorks Management Consulting and CUPSAFE.
REGISTRATION INFORMATION Your annual convention registration options are below. Option A Full Registration, both Wednesday and Thursday Member: $199 Non-Members: $249 Option B Full Registration, Spouse $119 Option C Wednesday Registration Only Member: $179 Non-Members: $224 All registration options increase $50 on March 1. Group reservations of 8 or more receive a 10% discount. This applies to full registrations only. For complete descriptions, please go to IIAWConvention.com. Cancellations received by April 5 will be refunded less a $10 processing fee. No refunds will be given for cancellations received after April 5. Attire is business casual for all convention events. Questions? Please call the IIAW at (800) 362-7441 or (608) 256-4429. Refer to IIAWConvention.com and our e-brochure for the latest convention information and expanded details of each session.
HOTEL INFORMATION All convention events take place at the Madison Marriott West. The special IIAW room rate is $139 for all rooms. Reserve your room at Marriott.com, or call (888) 745-2032. Please mention that you are attending the Independent Insurance Agents of Wisconsin Convention. Rooms are available for the evenings of May 2-3. The hotel reservation deadline is April 11, 2017.
EXHIBITOR INFORMATION Exhibitor registration fees are as follows: Member registration: $850 until April 1, 2017. After April 1: $900 Non-member: $950 until April 1, 2017. After April 1: $1,000 For complete details and to register as an exhibitor, please visit IIAWConvention.com
FOOD FOR THOUGHT WHO’S FRANK SINATRA? MINDSET LIST FOR THE CLASS OF 2020
Students heading into their first year of college this year are mostly 18 and were born in 1998. Among those who have never been alive in their lifetime are Frank Sinatra, Phil Hartman, Matthew Shepard, Sonny Bono, and Flo-Jo. The Ali/Frazier boxing match for their generation was between the daughters of Muhammad and Joe. Since they were born: 1. There has always been a digital swap meet called eBay. 2. They never heard Harry Caray try to sing during the seventh inning at Wrigley Field. 3. There have always been Cadillac Escalades, but they just don’t seem to be all that into cars. 4. Vladimir Putin has always been calling the shots at the Kremlin. 5. The Sandy Hook tragedy is their Columbine. 6. Cloning has always been a mundane laboratory procedure. 7. Elian Gonzalez, who would like to visit the U.S. again someday, has always been back in Cuba. 8. The United States has always been at war. 9. SpongeBob SquarePants has always lived at Bikini Bottom. 10. They have never had to watch or listen to programs at a scheduled time.
21. They have always eaten irradiated food.
11. John Hinckley has always been able to get out of the hospital to go for a walk.
22. A Bush and a Clinton have always been campaigning for something big.
12. Each year they’ve been alive the U.S. population has grown by more than one million Latinos.
23. While chads were hanging in Florida, they were potty training in all 50 states.
13. Vaccines have always been erroneously linked to autism.
24. The once-feared Thalidomide has always been recognized as a cancer-fighting drug.
14. Laws against on-the-job harassment have always applied to parties of the same sex.
25. DreamWorks has always been making animated creatures heroic and loveable.
15. If you want to reach them, you’d better send a text—emails are oft ignored.
26. John Elway and Wayne Gretzky have always been retired.
16. They disagree with their parents as to which was the “first” Star Wars episode.
27. They have never seen billboard ads for cigarettes.
17. NFL coaches have always had the opportunity to throw a red flag and question the ref.
28. Peregrine falcons have never been on the endangered species list.
18. Bada Bing – Tony and Carmela Soprano and the gang have always been part of American culture.
29. Newt who?
19. They have no memory of Bob Dole promoting Viagra.
30. Michael J. Fox has always spoken publicly about having Parkinson’s disease.
20. Exxon and Mobil have been one company—and it doesn’t own any gas stations.
Source: Beloit College (Go to beloit.edu/mindset/2020 for the full list)
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118th IIAW
ANNUAL CONVENTION DAVID SPADE LIVE Appearing May 3
MAY 3¯4, 2017
MADISON MARRIOTT MADISON, WI
VISIT IIAWCONVENTION.COM