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Industry News

YOUNG AGENTS
North Carolina Young Agents Raise Big Bucks for Habitat

Some independent agents in North Carolina will be trading in their laptops and telephones for hard hats and hammers next month thanks to North Carolina Young Agents.

Last year, the group raised $70,000 for Habitat for Humanity and in February, the Young Agents, along with agents from across the state, will start construction on a house in Wake County.

“We wanted this project to be start-to-finish, soup-to-nuts, from scratch,” says Ray Tedder, Jr., North Carolina Young Agents chair and vice president of BB&T McPhail Bray Insurance Services. “We chose Wake County because it’s in the center of state and would allow agents from around the state to participate.

To raise the funds, the Young Agents petitioned for donations from other members at conferences, events and through the state association’s Web site and magazine. They also held a “Habitat-a-thon,” a telethon during which 25 agents spent two hours making calls and asking for support, according to Jason Byers, North Carolina Young Agent Habitat sub-committee chairman and insurance account executive at First Citizens Insurance Services.

For their efforts, the group received 100 individual donations and 25 agency donations, as well as support from a few carriers --- including their premier carrier sponsor, Builders Mutual Insurance Company, which specializes in residential home builders.

A ground-breaking ceremony will be held next month to kick off construction of the house, which should be done sometime this spring, according to Tedder.



The North Carolina Young Agents with a $70,000 check for Habitat for Humanity.

YOUNG AGENTS
Apply for a YAC Scholarship

During the 2008 Big “I” Legislative Conference & Convention, April 2-4 at the Marriott Wardman Park Hotel in Washington, D.C., the national Young Agents Committee will host seminars geared specifically toward young agents. Events include a first-timers reception, the Young Agent Attendee & InsurPac Chairs Luncheon, a hospitality event and the Presidents’ Panel Breakfast with Big “I” leadership.

The Big “I” Young Agents Committee is offering each state association two $500 scholarships to assist those who have not previously attended the Big “I Legislative Conference & Convention. Scholarship funds will be paid to the order of the state association in May 2008. Interested young agents should return a completed application form to their state association by March 1 to be considered. It is at the discretion of the state association to determine the recipients of these scholarships. 

The $1,000 Maurice Herndon Scholarship will be presented to one young agent who has not attended a conference in the past to help defray the cost. The recipient will receive his or her scholarship check in May 2008 after the event. To be eligible for the Herndon scholarship, you must compose a 250-to-500-word essay describing why you should be considered for the scholarship and submit your essay and completed application form by March 1. 

Click here to download both the scholarship applications. For more information, contact Katie Cosgrove at 800-221-7917; Katie.Cosgrove@iiaba.net.

VIRTUAL UNIVERSITY
VU Earns Praise from Agents Nationwide

When it comes to trying something new, some of us need a push. If you haven’t visited the Big “I” Virtual University (VU), some positive word of mouth might be just the nudge you need.

A free resource for Big “I” members, the VU is an online gateway to insurance education and information that’s at your fingertips 24-7. The VU offers: 

* An extensive research library
* Links to helpful insurance Web sites
* Ask an Expert, where leading industry minds answer insurance questions
* The VUpoint, a biweekly e-newsletter tailored to independent agents 
* Fee-based, online continuing education classes

If you still need convincing, consider the opinions of some fellow members:

“VU has far exceeded my expectations,” says J. Alan Johnson, of the Johnson Agency in Madisonville, Tenn. “The ability to get the information I need, when I need it, without having to leave the office, is excellence at its zenith.”

“We have used the ‘Ask an Expert’ service on more than one occasion and each time received the information we needed in a timely manner,” says Kristi Norfleet of McCaw Insurance Agency in Greenville, Texas. “You have a wonderful way of providing professional service in a way that helps us increase our knowledge and understanding of ‘tricky’ insurance situations.”

“My husband and I own a small agency and have only been in business for two years,” says Michelle O’Connor of O’Connor Insurance Associates in Charlotte, N.C. “The information on the Web site is very useful to us in growing our new agency”

“The insurer has agreed to defend --- no reservation of rights,” says Jill Butler of Western States Insurance Group, Inc., Clovis Insurance Center in Clovis, N.M. “Not only that, but they are changing the coverage form to be clearer. We think that their ‘agreement to defend’ and ‘changes in coverage form’ are likely largely due to Virtual University’s timely opinion. We thank you a lot.”

Members are talking about VU. Discover its benefits for yourself by logging on today at www.iiaba.net/VU.

InVEST
New InVEST Teacher Portal

Check out InVEST’s new teacher portal. The portal was designed to offer InVEST teachers and liaisons resources not available on the public InVEST Web site. Some of the items now available include the InVEST personal auto/homeowners teacher and student textbooks, BOP manuals, InVEST internship guide, calendar and resource library. The portal is linked to the public InVEST Web site and requires a user name and password to enter the site. To obtain access to the portal please visit the InVEST homepage by clicking here. For questions about the portal, contact Sandra Skipper, InVEST program manager, at 703-706-5437; sandra.skipper@iiaba.net.

BIG “I” LEGISLATIVE CONFERENCE & CONVENTION
Contractual Risk Transfer in Construction

The Big “I” Legislative Conference & Convention offers agents premier education opportunities, including contractual risk transfer in construction*. Presented by Jack Gibson, president of the International Risk Management Institute (IRMI), this course reviews the ways in which risk is allocated in construction contracts. In addition to a technical review of the types of techniques available, this course examines strategies for maximizing the effectiveness of risk transfers in construction contracts. Join us on April 4 to learn about indemnification provisions, waivers of subrogation, limitations of liability, insurance requirements and some of the key areas of risk allocation in standard construction contracts. Tips for writing and negotiating fair and effective insurance requirements will be provided where appropriate, as well as well as verifying compliance with these requirements. By taking this course, agents earn C.E. credit as well as hours toward a construction risk and insurance specialist (CRIS) designation. To learn more about the course, click here.

This is just one of the many offerings of the Big “I” Legislative Conference & Convention, April 2-4 at the Marriott Wardman Park Hotel in Washington, D.C. Click here to learn about the advocacy, innovation and exhibits taking place during this year’s event.

*Separate registration fee applies.

BIG “I” MARKETS^SM
Big “I” Markets an Important Tool for Agents

By a large margin, agents who have accessed Big “I” Markets (BIM) think it is a very important tool. BIM is the association’s online market access platform (www.bigimarkets.com) that provides members with hundreds of markets at no cost and with no minimum volume requirements.

In January, BIM users were surveyed to determine their perceptions of BIM on a range of issues. From a sample of 791 randomly selected agents, survey respondents were split into two groups; those who have bound business on BIM and those who have submitted quotes, but have not bound any business. So far, 20% of recipients have responded.

Over the next several weeks, BIM will be highlighting member agent responses to various survey questions. This week features a question at the core of BIM --- how important is it for members to maintain access to the platform? Here are the responses:

How important is it to you to have access to BIM?



Clearly user agents think BIM is valuable. Even 93% of agents who submitted a quote, but did not bind any business, think it is important. What about you?  If you have not yet registered for Big “I” Markets, log on to www.bigimarkets.com. Registration takes only a few minutes. Access to BIM is a benefit of joining the state association. There are no minimum volume requirements and there is access to hundreds of commercial and personal lines markets. Anyone who needs help should contact BIM at bigimarkets@iiaba.net and one of the support staff will contact you.    

BIG “I” MARKETS^SM
Contractor Liability Now Available on Big "I" Markets

Contractor liability has been near the top of the list of the product development member surveys. For 18 months, Big “I” Markets has been piloting a program with a provider who has the capacity to handle both admitted and non-admitted contractor liability risks. Due to the complexities of contractors’ liability, the Big “I” felt it was critical to take the time to make sure the provider could demonstrate it could effectively manage all aspects of the non-admitted/E&S segments of the market. The provider has been successful and the Big “I” is happy to announce the contractor liability product is now available almost nationwide.

The Big “I” has partnered with A.D. Carlton, a firm that has an admitted market in some states, while in others it will be the facility for harder-to-place risks that typically go to non-admitted markets. One of the challenges of the pilot was determining who will file the taxes associated with surplus lines policies. In 28 states A.D. Carlton can file them; however, 14 states prohibit these “courtesy filings.” In those states, members will only have access to this product if the agency has an E&S license and is willing to file the taxes on any policy written. Below is a chart showing the breakdown of admitted and non-admitted markets by state:

Admitted Market & Surplus Lines Market: Full access to surplus lines providers only: Available only if member agency has E&S license: Not available: AL, AR, AZ, GA, MO, MS, NM, NV, OK, OR, PA*, SC, TN, TX CO, CT, DC, IA, IL, IN, MA, MI, MN, NC, NE, OH, VT, WI AK, CA, DE, FL*, ID, LA, ME, MT, NH, NJ, NY*, RI, SD, UT HI, KS, KY, MD, ND, VA, WA, WV, WY.




The admitted carrier is a very good market for a wide variety of artisan contractors, as well as general contractors involved in residential and commercial construction. Their minimum premium is only $1,000 and they are admitted, so members will be able to compete with other standard carriers in these states. Small to mid-size contractors are the best fit for this program.

For other types of contractors, A.D. Carlton has access to multiple non-admitted carriers and/or approved risk retention groups. When an account is quoted agents will receive information on who will be providing the coverage. Target risks include construction contractors who are difficult to place with standard carriers. They can be residential and/or commercial, subcontractors or general contractors.

Target contractor operations for one or more carriers (admitted and non-admitted) and risk retention groups include: roofing, steel erection (including fabrication), crane operations, millwright, excavation, grading, underground utilities, foundation, pile driving, demolition, home builders (including tract and custom homes), apartment construction, framing, masonry, swimming pool and street & road construction.

Ineligible contractors are those with a significant pollution and/or professional liability exposure, scaffolding, nuclear, EFIS and oil/gas.

Some further details for prohibited courtesy filing states are as follows:

* An agent will not see the contractor liability product on Big “I” Markets until he/she provide a copy of his/her E&S license and a signed statement on agency letterhead that the agency will take responsibility for filing the tax in accordance with the state regulation and provide proof of the filing to A.D. Carlton. Once an agency has been approved to write this product, agents will see details on where to send proof of the filing. Please fax the letter and a copy of the license to 703-995-4406, attention Big “I” Markets.

The contractor market can be volatile and now that the market has softened, agents probably have more options available than a year ago. The Big “I” knows from working with A.D. Carlton that market conditions vary greatly by state, so for some this announcement is no big deal, while for others it may generate a lot of excitement and opportunity. Either way, check out what Big “I” Markets can do for you and your contractor liability clients.

* Florida members: You have access to two providers. Our partner for commercial package policy and other products, Standard Lines, which is your primary source for this market listed under contractor general liability (FL). Should your risk not qualify for their markets you can submit it to A.D. Carlton for consideration. That product is called difficult-to-place contractors liability and will require an agency to have an E&S license.

* New York members: There is one market available; however, it is a surplus lines carrier and there is a minimum premium of $25,000.

* Pennsylvania members: Although Pennsylvania prohibits courtesy filings, agents are not required to have an E&S license as the provider has a resident E&S license and can file taxes on your behalf.

For more information, contact Big “I” Markets at bigimarkets@iiaba.net.


LEGISLATIVE CONFERENCE & CONVENTION
Coming Soon! 2008’s Premier Event for Independent Agents

The 2008 Big “I” Legislative Conference & Convention will be hosted April 2-4 at the Marriott Wardman Park Hotel in Washington, D.C. This program offers members an opportunity to experience advocacy, innovation and exhibits not available anywhere else. In addition to the annual Big “I” Day on Capitol Hill, attendees can learn about the Best Practices of agency financial management or earn hours toward a CRIS designation by attending the contractual risk transfer in construction seminar. This year’s general session will include a state-of-the-industry address by IIABA Chairman Bob Fulwider and an election year debate, moderated by Big “I” President & CEO Bob Rusbuldt, between Paul Begala, CNN political analyst, and Tucker Carlson of MSNBC's Tucker.

Need more reasons to attend this year’s event?

* Visit with your key federal legislators--they take notice and listen.
* Use your influence to affect the future of the industry on issues such as insurance regulation, agent licensing, flood insurance and many other issues.
* Improve your agency's efficiency and profitability with new tools.
* Discover how industry leaders are addressing perpetuation, technology and agency workflows.

Click here to register today and save 20% (offer good through Feb. 14).