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Industry News

TRUSTED CHOICE^®
Trusted Choice^® Disaster Relief Fund --- Helping Those in Need

The most recent tornado in Alabama threw an agency CSR and her four month old baby 200 yards from where their house once stood. The CSR has a broken arm and pelvis, the baby has two skull fractures, bleeding on the brain and a bruised spleen, but is expected to make a full recovery. The house and its contents are destroyed, the car totaled.

When a disaster strikes, victims face overwhelming challenges. Some lose loved ones or are seriously hurt. Some lose their homes and all their belongings, and others lose their jobs or time from work to care for children and family members recovering from injuries.  Some people face all of these things and more.   

Unfortunately, disasters arise at uncontrollable times and often with little time to prepare. From 9/11 to Hurricane Katrina and beyond, IIABA members and others in the insurance industry have suffered tremendous losses and inevitably there are more tragedies ahead.

In an effort to provide ongoing outreach to those most in need following devastating natural and other disasters, the Trusted Choice^® Disaster Relief Fund was created by the IIAA Educational Foundation, which is a 501(c)(3) entity. 

The Trusted Choice^® Disaster Relief Fund enables the insurance industry, including IIABA members, their agency staffs and others, to make financial contributions to aid victims and surviving family members of disasters, and to provide insurance agents with supplies and resources to provide disaster relief efforts to aid victims and surviving family members. No fees are deducted from contributions for staff time to manage it and make distributions. 

If you want to support those in the industry who need help, the Trusted Choice^® Disaster Relief Fund is an easy way to do so. You can make a contribution to the fund at any time, and all contributions are tax deductible, as they would be with other 501(c)3 organizations. Contributing to the Trusted Choice^® Disaster Relief Fund online is easy --- click here to donate and thank you in advance for your support!

For more information on the Trusted Choice^® Disaster Relief Fund, please contact Debra Perkins, IIABA executive vice president, at 800-221-917; debra.perkins@iiaba.net.

LEGISLATIVE CONFERENCE & CONVENTION
Sen. Susan Collins to Address Big “I” Members

Sen. Susan Collins (R-Maine) will speak to members of the Big “I” during the Legislative Conference & Convention in April.

The Big “I” Legislative Conference & Convention is the insurance industry’s premier legislative meeting. This year’s event will take place April 2 through 4 at the Marriott Wardman Park Hotel in Washington, D.C. Collins will be a featured speaker at a breakfast on April 3. Participants will also include agent and broker leaders from Collins’ home state of Maine.

“Sen. Collins is a pragmatist and widely regarded as a knowledgeable leader on insurance issues,” says Big “I” President & CEO Robert Rusbuldt. “She is respected by her colleagues and known for her ability to work with members on both sides of the aisle. We’re looking forward to hearing her thoughts in this election year on insurance regulation, natural disaster and other important topics facing our members, their businesses and our nation.”

Collins is uniquely positioned to speak on both insurance and small business issues affecting independent agents. After working for 12 years on the Capitol Hill staff of Sen. William Cohen (R-Maine), she joined the cabinet of Maine Gov. John McKernan in 1987 as Commissioner of Professional and Financial Regulation, the office that oversees state insurance regulation. After five years in that post, she served as New England administrator of the U.S. Small Business Administration until 1993. She was elected to the Senate in 1996 and was reelected in 2002 with 59% of the vote.

“We’re pleased to have Sen. Collins address our members,” says Charles Symington, Jr., Big “I” senior vice president for government affairs. “She has been active on many insurance issues that have come before Congress, including terrorism insurance, and we know our members will want to hear her perspective on the issues we’re bringing to the Hill this year.”

Each year during the legislative conference, Big “I” agents and brokers hold hundreds of meetings with their elected officials on Capitol Hill to share their perspective on how legislation affects their business. Top issues this year include agent licensing reform, insurance regulatory reform, flood insurance and natural disasters.

Highlights of the Big “I” Legislative Conference & Convention include an in-depth issues briefing session, the annual Big “I” congressional reception on Capitol Hill, appearances by numerous high-profile speakers and the industry’s largest and best-attended trade show. This year’s event will also include an election year debate moderated by Big “I” President & CEO Bob Rusbuldt featuring Democratic strategist Paul Begala and Tucker Carlson of MSNBC’s Tucker.

To register online and make hotel reservations go to www.independentagent.com and select the “Events and Conferences” link.


TRUSTED CHOICE^®
Ohio Mutual Insurance Group Joins Trusted Choice^®

Trusted Choice^®  welcomes the newest independent agency system insurance company ---Ohio Mutual Insurance Group --- to the branding program. Ohio Mutual is based in Bucyrus, Ohio and began insuring farms in 1901 as the Ohio Mutual Tornado, Cyclone and Windstorm Insurance Association.

Trusted Choice^® was launched in 2001 by the Independent Insurance Agents & Brokers of America and several independent agency companies to highlight the benefits independent agencies and brokerage firms offer consumers --- choice of companies, customization of policies and advocacy support. 

 “For over 100 years, it has been our belief that independent agents provide the most thorough and professional advice to insurance buyers,” says Jim Kennedy, president and CEO of Ohio Mutual. “Our joining forces with Trusted Choice^® is just further proof of our support and belief in the independent agency distribution channel.”

Today, Ohio Mutual Insurance Group, with an “A” Excellent rating from A.M. Best, has more than 107 years of protecting policyholders. The company is currently represented by more than 300 independent insurance agents and protects more than185,000 farm, home, auto and business policyholders throughout Ohio, Rhode Island, Nebraska and Kansas. For more information, visit www.omig.com.   

“Ohio Mutual Insurance Group has been an important business partner for independent insurance agents in Ohio and their participation in Trusted Choice^® demonstrates their past and future commitment to independent insurance agents,” says Scott Nein, CEO of the Independent Insurance Agents of Ohio. 

“We are pleased to have Ohio Mutual Insurance Group join Trusted Choice^®. While they have been in business for more than 100 years, they have joined Trusted Choice^® as part of a strategy to increase their footprint with independent insurance agents and their customers for the next 100 years,” says Dave Evans, Executive Director of Trusted Choice^®.


IIABA NEWS
Agent Testifies on Natural Disasters

The Independent Insurance Agents & Brokers of America testified Monday before a hearing of the House Committee on Financial Services Subcommittee on Oversight and Investigation to discuss the homeowners' insurance crisis and its impact on communities, homeowners and the economy.

Alex Soto, an independent agent and Immediate Past Chairman of the Board of IIABA, testified on the importance of natural disaster legislation. On behalf of the Big “I”, the only producer trade association testifying at the hearing, he thanked Reps. Ron Klein (D-Fla.) and Tim Mahoney (D-Fla.) for introducing the Homeowners' Defense Act, intended to address the growing problem of natural disaster risks. 

Soto expressed the association’s gratitude to the House of Representatives for passing the legislation. He also urged the Senate to give the legislation serious consideration, as the proposals could potentially be a part of a comprehensive solution for the problem of natural catastrophe insurance. He pointed out that the key to success for any solution is how the private market will react and whether changes will result in increased coverage.

“We strongly believe our industry must come together with policymakers to find a common solution that will encourage participation in at-risk markets,” said Soto. “We believe the Homeowners Defense Act of 2007 provides a number of provisions that could have a positive impact on the availability and affordability of natural disaster insurance. However, there are important questions associated with these provisions that must be answered.”

Soto pointed out that one strength of the Homeowners’ Defense Act of 2007 lies in its attempt to have a plan in place to encourage greater reinsurance availability for the private market. Soto stressed that the goals of the legislation are consistent with the long-standing Big “I” principle that the best solution is for a program to be in place before events happen, and that assistance from the government should be limited.

“Any solutions should have a clear, well-structured mechanism that encourages the private sector to handle as much of the risk as possible, and only trigger federal involvement as a last resort after private market failure,” said Soto. “We believe that it is important to have such a structure in place to protect both consumers and taxpayers living across the country.”

Finally, Soto reiterated the association’s desire for the insurance industry to come to a consensus on a solution to the catastrophe insurance availability crisis. He also praised the Committee, along with Reps. Klein and Mahoney and Rep. Ginny Browne-Waite (R-Fla.) for taking the lead, bringing forward proposals and working together to find the answer.

“The Big ‘I’ is committed to an open dialogue with all interested parties in the public and private sectors to address these important issues that consumers face,” said Soto. “We stand ready to assist your efforts in any way we can.”


IA MAGAZINE
Fall in Love with the February Issue

Celebrate Valentine’s Day with the February edition if IA! This month’s edition is packed with articles readers will love including: “Don’t Be a Cheapskate,” a look at why cutting costs in marketing and technology is bad for business; “The World is Flat,” which includes suggestions on how to better serve international clients; “Seal the Deal,” an explanation of why long-term care insurance is critical; and “Uncluttering Clusters,” a story of two agencies that combined forces to meet a carrier’s volume requirements, plus much more! Visit www.iamagazine.com for the issue’s Online Extras.


BEST PRACTICES
Before Hiring a Producer, Read This

Do your producer contracts reflect the difference between independent contractor and employee producers? Are you certain that your non-compete and non-piracy agreements will stand up in court? Can you be sure that you are developing compensation packages that are fair to you and to your producers? If these issues concern you, then the Best Practices Guide to Producer Contracts is a must for your agency. This concise guide leads you through the steps of compensating and contracting new producers. The Guide to Producer Contracts will save principals thousands of dollars in lost time, effort, cash and potential legal fees, and is priced at only $29.95. The guide contains sample contracts, making it a perfect reference for principals, agents, their attorneys and advisors. Don’t hire another producer without one. For the full story on hiring, training and compensating producers, check out the Best Practices guide, Top Producers: Discover, Train, Reward, which includes the Guide to Producer Contracts free. To obtain an order form and view other recent releases such as Best Practices of Crisis Management or the 2007 Best Practices Study, click here or email BestPractices@iiaba.net.


VIRTUAL UNIVERSITY
Big “I” Virtual University Helps Adult Learners

As an adult learner, what motivates you to learn more and enjoy the process?  Recent research from a variety of education groups suggest adult learners can’t be threatened, coerced or tricked into learning something new. The traditional flogging or gold stars have little power to persuade. While just about any adult can be ordered to attend a class and take a seat, they cannot be forced to learn. However, it does seem most adults can be motivated to learn something new and many do seek out that opportunity at least twice a year.

So, what are some of the things that act as learning motivators for a majority of adults?

1. Often, many adults look for learning experiences in order to better deal with life-change events. Marriage, divorce, a new job and moving to a new city are examples. The more life-change events an adult encounters, the more likely he or she seeks ways to learn. Just as stress increases as life-changing events accumulate, so does the motivation to cope with change through engagement in a learning experience. Since people who most frequently seek out learning opportunities are those who have the most years of education, it is reasonable to guess that for many learning is a coping response to significant change. 

2. As many adults encounter work-related changes that impact their lives, research finds the learning adults seek out is directly related --- at least in their own perceptions --- to what created the change. Therefore, if 80% of the event encountered is work-related, then 80% of the learning experience will be work-related. 

3. Adults typically engage in these new learning experiences before, after and even during the actual life-change event. Once convinced that the change is certain, adults are more likely to engage in any learning that promises to provide them with the ability to better cope with the impending change. 

4. While many adults are likely to engage in learning for wide array of reasons such as job advancement, simple pleasure, love of learning and so on --- it is equally true that the actual learning is not the real reward. Adults who are motivated to seek out a learning experience do so primarily (80% to 90% of the time) because they have a use for the knowledge or skill being sought. Learning is a means to an end, not an end in itself. 

Whether the motivation to learn comes from pleasure, need or a life-changing event, the Big “I” Virtual University can help you achieve your learning goals. If you are motivated to seek a more creative and fun way to get the insurance education you need, the Big “I” Virtual University offers a wide variety of unique, quality online classes to enhance and expand insurance technical and business skills. The classes, which can be purchased by members and non-members, include certification and designation programs, as well as beginner, intermediate and advanced classes --- all online and available anytime. To access the Big “I” Virtual University visit www.indpendentagent.com or to go directly to the online course catalog by  clicking here.


YOUNG AGENTS
Young Agents to Visit the Newseum During Big “I” Legislative Conference & Convention

The Newseum, a state-of-the-art museum about the news industry, will have its grand opening on April 11, but prior to the opening the Young Agents will have an exclusive VIP tour of the newest, “must-see” Washington, D.C. attraction. The museum features seven levels of galleries, 15 theaters and state-of-the-art broadcast facilities where visitors can go behind the scenes to learn how and why news is made.

The National Young Agents Committee is offering events geared specifically for up-and-coming leaders at the Big “I” Legislative Conference & Convention. Special sessions include a first-timers reception, the Young Agent attendee and InsurPac chairs luncheon, a hospitality event and the always popular Presidents’ Panel breakfast with Big “I” leadership. 

Young Agents will gain valuable legislative and leadership skills at this valuable insurance industry event. The Big “I” Legislative Conference & Convention will be held April 2-4 at the Marriott Wardman Park Hotel in Washington, D.C. For more information, contact Katie Cosgrove, Young Agents program manager at 800-221-7917; Katie.Cosgrove@iiaba.net.


InVEST
Don’t Forget to Donate to the 2008 InVEST Silent Auction

Don’t miss your chance to support the next generation of industry professionals! The InVEST Board of Directors will host the 2008 InVEST Silent Auction during the Big “I” Legislative Conference & Convention. This highly regarded insurance industry event will take place April 3-4 at the Marriott Wardman Park Hotel in Washington, D.C.

Contribute an item to the InVEST Silent Auction and support the program’s annual scholarships awarded to graduates of InVEST who are pursuing higher education with an emphasis on insurance.

All of the proceeds generated from the auction are used to fund the scholarships given to InVEST students each year, who plan on majoring in insurance, risk management, actuarial science or business. Convention attendees will have the opportunity to bid on sporting event tickets, golf clubs, Broadway shows, wine tours, spa days, gadgets, trips and more. Items are donated by insurance carriers, agents and brokers, IIABA and its state affiliates, other professional organizations and individuals.

The InVEST Silent Auction will open at 6 p.m., April 3 and will close at 1 p.m., April 4. Be sure to keep an eye on your bid --- this is a popular event. The deadline for InVEST Silent Auction donations is Feb. 15. Thank you in advance for your contribution and support of InVEST. For more information, please contact Sandra Skipper, InVEST program manager, at 703- 706-5437; sandra.skipper@iiaba.net.


BIG “I” FLOOD PROGRAM
Wells Fargo Special Risks, Inc. Expands to Include Excess Flood

The Big “I” Flood Program has been expanded to include excess flood availability throughout the U.S. Eligible properties include residential dwelling (1-4 family), other residential (i.e. apartments), commercial properties and condominiums. Coverage is also available for non-participating community properties and designated Coastal Barriers Resource Act properties, subject to meeting underwriting criteria.

“We’re pleased to introduce this expansion of the Big “I” Flood Program as agents can now offer coverage limits beyond that available from the National Flood Insurance Program (NFIP),” says Big “I” Flood Program Manager Linda Mackey. “This new relationship will give Big “I” agents and their clients access to underwriting resources to meet their specialized flood insurance needs. In addition to opening up new markets, agents can now up-sell excess flood to clients who have already purchased a flood policy but need the higher limits for protection that an excess policy provides.”

Backed by the financial strength and the property underwriting expertise of Lloyds of London, this program will be underwritten and managed by Wells Fargo Special Risks, a program administrator for specialty programs.

“The combined team efforts of the Big “I” Flood Program and Wells Fargo Special Risks will enhance how an agent interacts with their customers in making recommendations on risk and exposures inherent to flood,” says Patrick Small, vice president, Wells Fargo Special Risks, Inc.

For more information or to access product details, log on to www.bigimarkets.com and select Excess Flood from the product menus. If you have questions about this product, contact Linda Mackey at 800-221-7917; linda.mackey@iiaba.net. 


InsurBanc
InsurBanc Provides Short-Term Financing for Tornado Expenses

InsurBanc, the trusted and respected full-service financial services provider to the Independent Agency community, announced today that it has put together a special loan program for qualifying agency principals affected by the recent tornados in Alabama, Arkansas, Kentucky, Mississippi and Tennessee.

Realizing that independent agency owners affected by the tornados may have special financing needs over the next several months, InsurBanc is offering special pricing on short-term loans for tornado-related expenses. InsurBanc will offer this assistance to independent agents who have been financially impacted in the states of Alabama, Arkansas, Kentucky, Mississippi and Tennessee

“The tornados had a devastating effect on thousands of people,” says Robert Pettinicchi, chief lending officer at InsurBanc. “InsurBanc’s loan program will help minimize the financial impact on independent agency owners who are feeling the effects most closely, so that they can start getting their lives and businesses back to normal.”

Rather than having to tap into personal money, credit cards or wait for other emergency funds to become available, this program will help qualifying agency principals get back to work immediately.

“Our unique expertise in agency financing allows us to offer these loan products quickly and inexpensively to qualifying agency principals to help them get back to serving their clients insurance needs,” added Pettinicchi.

For more information about InsurBanc’s special loan program, call 1-866-467-2622 or e-mail agencyfinancing@insurbanc.com. InsurBanc is a member FDIC and an Equal Housing Lender.


IIABA NEWS
2008-2009 IIABA Committee, Taskforce and Board Appointments

Nothing IIABA does in planning for the next year is more important than the perpetuation of IIABA’s strong committee/task force/board structure. IIABA seeks help in identifying qualified agents to serve on committees/task forces/boards. IIABA is looking for recommendations for appointments from state associations, and, in an effort to broaden our reach, agents interested in serving on committees/task forces/boards are invited to submit their own committee/taskforce/board appointment request form. Those who have not previously been active at the national level are encouraged to get involved, including young agents and multicultural agents. If you are interested in being considered for a committee/task force/board appointment, please click here and complete a separate request form for each committee/taskforce you are interested in serving on. The deadline to submit the form is March 10, in accordance with the directions on the bottom of the form. If you have any questions about a particular committee or task force, its current activities or the frequency of its meetings, please contact Cathy Spencer at cathy.spencer@iiaba.net.