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OneBeacon Enhances Profit-Sharing Contract Terms | Redesigned ACTtech Web Site Offers Real-Time Interface Resource | Ultimate InVEST Silent Auction in the Ultimate Location | 2005 Young Agents Sales & Leadership Conference | Keep IA Coming! | Industry News

L E G A L   A D V O C A C Y
OneBeacon Enhances Profit-Sharing Contract Terms

"I am pleased to recognize OneBeacon for the positive changes it has made to its profit-sharing agreement, based on its work with IIABA," says Debra Perkins, Big "I" executive vice president and general counsel. "The company is to be commended for addressing three important issues IIABA raised on behalf of its members and for demonstrating a strong commitment to independent agents by revising its profit sharing agreement based on the feedback IIABA provided."

First, IIABA expressed serious concern about the provision requiring agents to comply with the NAIC Compensation Disclosure Amendment to the Producer Licensing Model Act if there is no other applicable local, state or federal compensation disclosure requirement. OneBeacon addressed the many problems that provision created by instead requiring that the Agent "comply with all relevant local, state and/or federal agent compensation disclosure requirements, however implemented by such governmental body." This is a significant and important enhancement to the contract for agents by OneBeacon.

Second, IIABA expressed concern that the profit sharing agreement could be terminated any time by the company based on its "interpretation of any legal, legislative, regulatory or governmental activity." OneBeacon responded by revising that provision to allow either party to terminate the agreement based on its "interpretation of any legal, legislative, regulatory or governmental enforcement activity related to customer disclosure which in the reasonable interpretation of such party may subject such party to adverse legal consequences."

And, third, IIABA expressed concern about the company reserving the right to amend the incentive calculation at any time prior to the payment being made. OneBeacon addressed this issue by modifying that provision to allow for the incentive calculation to be adjusted only "due to an extraordinary event that has a material impact on the company’s operating results or surplus."

IIABA’s Office of the General Counsel has been advised by OneBeacon that the profit sharing contract changes will apply to all its profit sharing agreements and that the changes will be effectively immediately.

IIABA members can access a complete copy of the review of OneBeacon’s profit sharing contract (as well as reviews of other agency/company contracts) on the Legal Advocacy page of independentagent.com. For more information, contact Debra Perkins at 800-221-7917; debra.perkins@iiaba.net.

A G E N T S   C O U N C I L   F O R   T E C H N O L O G Y
Redesigned ACTtech Web Site Offers Real-Time Interface Resource

The Agents Council for Technology (ACT) unveiled a new design and functionality for ACTtech, a Web site resource to help independent agents and brokers leverage the latest real-time interface, download and other time-saving technology capabilities that their particular vendors and carriers offer.

ACTtech gives agents and brokers carrier and vendor system-specific information so that they know what solutions will work for them. It drills down information to line of business, transaction type and state, and also can generate comparison reports for the particular carriers, vendors and transactions selected by the agent. (ACTtech is located at www.acttech.org or can be accessed via the ACT Web site.)

"Our objective with the site from the start has been to give agents, brokers, and the industry a single place to go to ascertain what new technologies are available to them, given their particular systems and carriers, or the systems and carriers they are considering," said Linda Dodson, e-business consultant, strategic marketing for Chubb Group of Insurance Companies, and chair of ACT’s Agency Communications Working Group. "We want to do everything we can to accelerate agent, carrier and vendor implementation of these money-saving technologies."

"Carriers and vendors should register on the redesigned site to enter or update their real-time interface and download   data," added Jeff Yates, ACT executive director. "We have begun a major campaign to drive agents and brokers to use the site, and it is important for them to see the innovative technologies their carriers and vendors are offering to make them more efficient."

There is no charge for parties to use the site or to add their information to it. It is an industry resource to accelerate the adoption of real-time interface, download and improved workflows within the independent agency distribution system. ACT, ACORD, and AUGIE are all cooperating closely on ACTtech as well as on other Web site information tools in order to use industry resources most efficiently and to avoid duplicate data entry for carriers and vendors.

The new ACTtech site allows users to search under four major categories: "Carrier Possibilities," "Vendor Possibilities," "My Possibilities" and "Process Possibilities." One of the major improvements on the site is contained in "My Possibilities," which permits agents and brokers to create and print comparison reports for any combination of transactions, carriers, systems and states. The site includes greatly improved tools that carriers and vendors can use to manage their data on the site more efficiently. The site also features a rotating display of the latest carrier/vendor additions to the database so that visitors to the site can always see what’s new.

Afni Insurance Services developed the new ACTtech Web site and database for ACT and will provide ongoing management of these resources. For more information, contact Jeff Yates at jeff.yates@iiaba.net.

I N V E S T
Ultimate InVEST Silent Auction in the Ultimate Location

The 2005 InVEST Silent Auction will be held in September during the Big "I" Convention in New York City. Due to space restrictions, the auction will feature a total of 30 items from the following categories: "Getaways   & Sports Weekends," "Fine Jewelry" and "Technology Tools." Additional donations are certainly welcome and will be reserved for the 2006 silent auction at the Big "I" event in Washington, D.C. All proceeds from these events support InVEST’s annual scholarships awarded to graduates of the program pursuing higher education with an insurance emphasis. Proceeds from the 2004 auction helped to fund $40,000 in InVEST scholarships to be awarded this month to 13 graduates in the form of three $5,000 and 10 $2,500 scholarships.

InVEST, a 501(c)3 educational trust, introduces high school and community college students to the more than 350 diverse careers available in the insurance industry. The program furnishes graduates with a basic insurance education and the career-building financial and business skills they need to assume entry-level positions within the agency or company ranks. Not only is InVEST instrumental in securing the future workforce in the insurance industry, it is a gateway to a better future for many of the students who participate. Graduates of the program gain a new perspective on careers in insurance, and agencies, brokers and carriers are introduced to a new and diverse group of talented recruits. Your donation to silent auction will help support their higher education. Click here  to download a contribution form. For more information about the auction, contact Sandra Skipper, at 703-706-5437; sandra.skipper@iiaba.net.

  Y O U N G   A G E N T S
2005 Young Agents Sales & Leadership Conference

The rising stars of the insurance industry will take over New York City at this year’s Young Agents Sales & Leadership Conference. The ultimate experience for the next generation of industry leaders, this event brings together young agents and brokers from across the country to network with peers and company partners, develop sales and leadership skills and learn about the latest industry trends and technology. Whether you’re new to the industry or already in a leadership role in your agency or association, this event benefits all young agents and brokers regardless of experience and helps create a solid foundation for long-term success. As an added benefit, when you register for the Sales & Leadership Conference, you are automatically registered for the Big "I" Convention at no additional cost. Being committed means being involved. Attend the New York Sales & Leadership Conference and gain invaluable career experience. Click here to register online and make hotel reservations. For more information, contact Leslie Mularski, National Young Agents Program Director, at 703- 706-5459; leslie.mularski@iiaba.net.

I A   M A G A Z I N E
Keep IA Coming!

Want to have the latest industry news and trends, management information, specialty lines access and government affairs coverage at your fingertips? To improve the profitability and efficiency of your agency, renew your subscription to Independent Agent magazine. And the best part—it’s free! Take action now. Keep your IA magazine coming, delivered straight to your home or office each month. To validate your subscription online, go to IAmagazine.com and click on "Update Your Subscription." Use the six-digit ID printed on your magazine mailing label and follow the directions. While you’re visiting IAmagazine.com, don’t forget to check out the Premier Insurance Directory (PID). PID is the ultimate monthly guide for insurance products and services, including specialty lines, and the information is searchable by category online. Direct IA subscription questions to Jill Cosgrove at 800-221-7917; jill.cosgrove@iiaba.net.