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T H U R S D A Y , J A N U A R Y 1 8 , 2 0 0 7 Industry News IIABA NEWS The Big “I” Releases 2007 Legislative Agenda The Big “I” is committed to building on its successes in 2006 by advocating aggressively for a number of important legislative reforms, at both the federal and state levels, in 2007.
The last two editions of IN&V featured the first six of 10 items on the Big “I” 2007 legislative agenda. The final installment of the association’s top issues is below:
Crop Insurance—Independent agents and brokers will continue to oppose federal funding for Premium Reduction Plans (PRPs). The Big “I” advocated for, and Congress agreed to, the de-funding of this program in 2006 because of various issues with PRPs that are contrary to the best interests of consumers. The United States Department of Agriculture’s Risk Management Agency (RMA) published an unprecedented interim rule allowing providers to give rebates to their customers, a provision at odds with the laws of 48 states and longstanding Federal Crop Insurance Program (FCIP) regulations prohibiting rebating.
Additionally, PRP rebating would allow for rebates to be offered to farmers in some states but not others, contrary to FCIP regulations disallowing discrimination in favor of farmers in any state at the expense of farmers in other states. The funding prohibition of PRP was successfully extended in the recent continuing resolution passed at the conclusion of the 109th Congress, and the Big “I” will work with the leaders of the 110th Congress to continue this prohibition of PRP and to eliminate the plans altogether.
Tax Reform—The Big “I” supports S. 3974 and H.R. 4960, introduced in 2006, and will seek to move that legislation forward in 2007. The bills would amend the current tax code to allow a more accurate depreciation schedule for intangible assets, such as customer lists, when they are acquired in the purchase of small businesses, and to allow purchasers of eligible small businesses to write-off as much as $5 million of purchased intangibles over a five-year period, with ratable depreciation over 10 years. S. 3974 was introduced by Sen. Jim Bunning (R-Ky.) and Sen. Kent Conrad (D-N.D.), and H.R. 4960 was introduced by Reps. Eric Cantor (R-Va.) and Earl Pomeroy (D-N.D.).
Data Security—Independent agents and brokers will continue to push for legislation that will address this issue while making sure any national standard is not burdensome and enforcement of the standard is done primarily through state insurance regulators. “We also will work with carriers and vendors through the Agents Council for Technology and other advocacy outreach to assure that any new legal or regulatory requirements are implemented in ways that do not interfere with agency efficiency or necessitate inconsistent work flows for different carriers,” says Debra Perkins, Big “I” executive vice president and general counsel.
Health Care Reform—Independent agents and brokers will continue to seek increased access to health insurance to help the uninsured obtain the coverage they need. The Big “I” was heartened by enactment of the Tax Relief and Health Care Act of 2006, which includes a number of provisions designed to improve the operations of Health Savings Account (HSA) plans, and we look to build upon this legislation in the coming year.
To view the entire Big “I” 2007 legislative agenda click here.
BIG “I” LEGISLATIVE CONFERENCE & CONVENTION One-Stop Shop for Advocacy, Innovation and Exhibits Successful professionals are often busy from the moment they arrive in the office to the time they go home. And when they finally make it home to family and friends, the responsibilities are still there in the form of soccer practices, homework, neighborhood barbecues, community volunteer projects, etc. The Big “I” understands these kinds of schedules and that’s why the Big “I” Legislative Conference & Convention is only 56 hours---less than two and a half days and in one location. This is the premier place for independent agents to further professional development, learn how to protect the industry and discover how, with the right staff and sales techniques, it’s possible to keep New Years resolutions for a more profitable agency in 2007.
April 25-27 will be three action-packed days where insurance professionals can meet with legislators, network with companies and service provides and learn from industry leaders and coaches. This could very easily be the most important 56 hours this year for your agency. The Big “I” is the one voice for independent agents on Capitol Hill, in state governments and insurance departments and with companies. The 2007 change in Congress is a mixed bag for the industry. It is important that agents and brokers’ voices are heard through the halls of Capitol Hill. The Big “I” makes it easy by providing briefings and talking points to agents in attendance before they visit with legislators. Help the Big “I” keep the industry strong by participating in the 2007 Big “I” Legislative Conference & Convention. If you’re looking for more reasons to attend, click here to check-out the sights and sounds of Washington, D.C.
BIG "I" MARKETSSM Contractors Market Available Big "I" member Steve Lake of Emil Crockett Insurance Agency in Stafford, Ariz., has had trouble writing monoline contractors' equipment coverage as his existing markets all required it to be wrapped up in a package. He was recently relieved to find a home for them through the Big “I” Markets contractors' equipment product.
"I hope more agents use this product – it’s very simple and I’ll use it every chance I get,” Lake says.
Log on to www.bigimarkets.com, click “Contractors Equipment” and click "Request a Quote." Users can attach ACORD applications in the window that pops up. The whole process takes less than five minutes. Coverage is generally quoted within 24 hours and is available through admitted carriers. All types of contractors' equipment are eligible with the exception of coal mining operations. Log in to Big "I" Markets, the online market access program available exclusively to Big "I" members at www.bigimarkets.com.
TRUSTED CHOICE® Get the Most from Logo on Your Web site Those who followed the Trusted Choice® suggestions on the branding checklist already have the Trusted Choice® logo on their Web site. But to go an extra step further into “living the brand,” Trusted Choice® suggests linking the logo to an explanation of Trusted Choice® or the Pledge of Performance, in case a consumer tries to click on it to see what Trusted Choice® is all about. And since Trusted Choice® is a selling point for agencies, agents should want consumers to know that information. Here is an example explanation to use:
“Trusted Choice® agencies are insurance and financial services firms. We represent multiple insurance companies, offering individuals and business owners a variety of coverage choices, customized insurance plans to meet specialized needs as well as advocacy support. We also adhere to a pledge of performance, committing our agency to providing excellent customer service.”
To access the Pledge, click here.
For more information, contact Jenner Gohr at 800-221-7917; jenner.gohr@iiaba.net.
BEST PRACTICES Automate Your Agency/Carrier Planning Agents don’t have to be familiar with IIABA’s Best Practices Study to know that having effective relationships with carriers is key to the success of any agency. Recognizing this simple fact, one of the very first tools created when the Best Practices program began in 1993 was the joint agency/company planning tool (JPT). The notebook contained a description of how to begin the planning process; worksheets for the use of both agency and company participants to complete prior to the joint meetings and how to combine the two often divergent sets of needs; and production targets into a single set of goals that would move towards the realization of both parties success.
As useful as the JPT proved to be, agents had to fill out the forms and do the math by hand, but that problem has now been resolved. All the JPT worksheets are now available in a new automated format through the joint planning tool quick step. A Microsoft Excel spreadsheet template, the quick step is ready to load and on any PC. Simply start on page one and follow the simple step-by-step approach towards entering agency data. The quick step takes data as it is entered and performs the necessary calculations to bring it into a planning format. And the data entry is “once and done”---if any data entered or calculate is also used in future steps, the tool automatically carries it into the appropriate future field.
To illustrate how the tool works, take a look at step 1B – determining realistic production goals by line of business. One obvious key to the planning process is to develop new business goals. But beyond the math, are those goals realistic? The quick step handles it all. For a particular line of business (for example, commercial), input last year’s revenue and the average account retention rate. As soon as the latter is entered, the tool has already combined the two to determine the anticipated renewal revenues for the coming year. Then enter the anticipated growth percentages in those revenues due solely to rate increases or exposure base increases. At that point the tool will explain what amount of revenue to expect without any new production. Now enter the planned new production target amount. The spreadsheet now shows you the total anticipated revenues based upon all of the entered data. Now for one final bit of information – is this anticipated revenue a realistic goal?
The tool asks for the total number of current accounts for this line of business. From that number, the tool automatically calculates the average revenue per account and from that determines how many new accounts need to be written to meet the projected figure.
Each step functions in the same “fill in the blank and see instant results” manner. Each step can be redone as many times as needed to arrive at goals and revenue estimates that an agents feel are reasonable. If during the process an agent is unsure of what is being asked for at a given entry line, the program includes built-in help. Just run the mouse pointer over the item and an explanation of what the program is looking for pops up. Once all the steps are completed, agents will have a comprehensive set of calculations and worksheets filled out and ready for the joint meeting with the carrier. The information can kept on a computer or can be printed out.
The program includes the planning template and complete sets of printable planning worksheets for both the agency and carrier. Let IIABA’s new JPT quick step simplify the mechanics of the planning process. Click here for an order form.
For more information on the Best Practices program click here or e-mail BestPractices@iiaba.net.
InVEST Silent Auction Items Online Participate in the InVEST silent auction and support the program’s annual scholarships awarded to graduates of InVEST pursuing higher education with an emphasis on insurance. The InVEST board of directors will hold the 2007 InVEST silent auction during the Big "I" Legislative Conference & Convention. The InVEST Silent Auction will open at 6 p.m., April 26 and close at 1 p.m., April 27. Be sure to keep an eye on bids---the auction is a popular during the Big “I” Legislative Conference and Convention.
A 501(c)3 educational trust, InVEST introduces high school and community college students to insurance and the more than 350 diverse careers available within the industry, giving students a new outlook on the future. The program also offers insurance agencies, brokers and carriers a diverse and talented group of entry-level recruits. Play an important roll in the future of InVEST’s brightest students by making a donation to the 2007 silent auction. Click here to access information regarding the InVEST Silent Auction, including updates on the great auction items. Visit www.independentagent.com and click here to download a contribution form. For more information, contact Sandra Skipper at 703-706-5437; sandra.skipper@iiaba.net.
VIRTUAL UNIVERSITY Online Insurance Learning Made Easy More adults than ever are pursuing online education to advance their careers. A 2004-2005 study from the National Center for Education Statistics (NCES) shows nearly a third of adults (32%) ages 16 and up used some type of online learning. Also, the percentage of adults using online learning cuts across all age groups, ranging from 25% of adults 65 or older to 36% of adults ages 45 to 54.
Online learning is an attractive option for professional development as it eliminates many of the hassles of traditional learning, such as class schedules that interfere with work. Fortunately, there is an online learning center tailored to the needs of insurance professionals: the Big “I” Virtual University. This industry-focused education and resource center offers both professional development and continuing-education accredited courses, all without leaving the office. The VU curriculum covers a wide range of topics, including commercial and personal lines issues; more than 40 desktop computer skills courses; and organization and time-management classes. It even offers a designation program.
In addition to online classes, VU features a helpful “Ask an Expert” service, which boasts 50 industry experts providing advice on insurance, business and technology topics relevant to independent agents and brokers. It also features an exhaustive research library with thousands of articles covering a range of subjects from teen drivers to construction defects.
The VU’s online services make it possible for staffers to get the critical information they need—regardless of the time of day or where they are. All they need is Internet access and their personal login. The Big “I” VU brings unmatched online insurance learning to the computers of independent agents and brokers and their employees. To start getting an online insurance education today, click here.
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