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Industry News
H U R R I C A N E U P D A T E
Big "I" Katrina Relief Efforts Underway
The national Big "I," the Independent Insurance Agents & Brokers of Louisiana, the Independent Insurance Agents of Mississippi and the Alabama Independent Insurance Agents have moved quickly to spearhead relief efforts for those affected by Hurricane Katrina, arranging funds, supplies and resources to those in need.
"Immediately following the Katrina catastrophe, the Big ‘I’ state and national associations moved rapidly to assist independent agents, brokers, their families and their customers in unprecedented ways," says Big "I" CEO Robert A. Rusbuldt. "We immediately established the Big ‘I’ Katrina Relief Fund, which has received incredible support from Big ‘I’ members around the country as well as our company partners. A number of companies and Big ‘I’ state associations have donated significant sums to help those affected by this disaster. The response has been overwhelming."
Rusbuldt announced that Big "I" National Board voted last week to donate $100,000 to the Big "I" Katrina Relief Fund. Among the other contributions to the fund: Safeco Insurance donated $25,000; OneBeacon Insurance donated $25,000; the Massachusetts Association of Insurance Agents donated $20,000; and Encompass Insurance donated $10,000. Even Big "I" member brokers from Japan donated to the fund at the National Convention in New York.
Additionally, the Big "I" sent hundreds of catastrophe packs to the Louisiana, Alabama, and Mississippi state associations. Those catastrophe packs include items for agents to use in the field: windbreakers, ponchos, flashlights, hard hats, clipboards, polo shirts, T-shirts, duffle bags and more.
The Big "I" Virtual University created a free Hurricane Katrina resource page, complete with FAQs, satellite and aerial imagery, links to health and safety pages, flood and mold clean up tips, survivor information, housing space and more. Also, the VU’s Ask an Expert service is providing agents and brokers across the Gulf Coast with answers to their specific coverage questions.
InsurBanc, in collaboration with the Big "I," put together a special loan program for qualifying agency principals affected by Hurricane Katrina. InsurBanc is offering special pricing on short-term loans for hurricane-related expenses. Without forcing agents to tap into personal money and credit cards, the program helps agencies get back to work immediately. To learn more about the special loan program, contact InsurBanc at 866-467-2622 or lending@insurbanc.com.
The Big "I" Flood Program is providing continuous updates and offering its resources to agents working in the affected areas, as well as to other agents handling the flood claims and inquiries. For more information, contact the Big "I" Flood Program at flood@iiaba.net.
The Big "I" Professional Liability Program, provided by GE Insurance Solutions (GEIS) and underwritten by Westport Insurance Corporation, suspended all cancellations and non-renewals on insurance agency professional liability policies issued after Aug. 19. The moratorium will stay in effect until Oct. 31.
The Independent Insurance Agent & Brokers of Louisiana and the Independent Insurance Agents of Mississippi both have emergency contact information for independent agencies that have relocated due to the storm, as well as information for the customers of independent agents in the affected areas posted at www.iiabl.com and www.msagent.org.
The state associations are working hard to help agents and brokers find office space and get loans. They created customer call centers for agents overwhelmed with claim reports, job banks for agents and agency employees affected by the storm, listings of office space for lease or loan and offers of partnerships with agencies in other states. Their Web sites offer consumers guidance on how to report losses and make claims, as well as links to emergency insurance rules.
The national and state Big "I" associations are working with insurance carriers and their respective departments of insurance as advocates on behalf of independent agents and brokers, dealing with such important issues as: claims administration, coverage problems, grace periods, business interruption issues, short term financing and other financial matters.
"It has been amazing to see how Big "I" members who have lost their businesses and personal homes turn around in a second to set up and help their customers, Rusbuldt says. "They are completely committed to their customers and to doing everything they can to make them whole again. These independent agents are making tremendous personal sacrifices to serve their customers. They are unheralded heroes in many respects."
All donations to the Big "I" Katrina Relief Fund will assist insurance industry colleagues, including independent agents, brokers, their employees and their families in the impacted areas. Checks should be made payable to "Big ‘I’ Katrina Relief Fund" and mailed to:
Big "I" Katrina Relief Fund
c/o InsurBanc
10 Executive Drive
Farmington, CT 06032
If you prefer to contribute via credit card, please go to the Big "I" Katrina Relief Fund site on the InsurBanc Web site at http://insurbanc.com/vsitemanager/smartforms/default.asp.
All funds contributed to the Big "I" Katrina Relief Fund are tax deductible as charitable contributions.
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L E G A L A D V O C A C Y
Big "I" Board Adopts Policy on Producer Compensation Disclosure by Carriers
IIABA has worked proactively on the evolving issues concerning producer compensation disclosure triggered by investigations commenced by New York Attorney General Eliot Spitzer and other regulators. This has included extensive work on things such as model laws adopted by the NAIC and NCOIL, testimony in Congress, a policy on placement service agreements, memoranda on key lawsuits and settlements, interviews in the press and articles tracking new developments. Additionally, IIABA focused significant effort on providing input to carriers considering their approaches to this issue in an effort to assure that the strategies carriers select effectively accomplish their goals without imposing burdensome duties on agents.
In furtherance of its company advocacy efforts, and to maintain a clear and consistent message to carriers, IIABA’s National Board adopted a policy on producer compensation by carriers on Sept. 9, 2005. The policy recognizes that insurance agents, brokers and companies make independent decisions about whether and how to provide disclosures regarding producer compensation. It also acknowledges that IIABA believes every industry participant should take all necessary steps to comply with its own legal obligations, but that disparate and conflicting company requirements would disrupt the efficient work flows and business operations of insurance agencies and brokerage firms.
IIABA will continue its outreach to carriers on this issue and urges them to consult with IIABA, its state associations and independent agents selling their products before implementing any producer compensation disclosure. With respect to any insurer that chooses to make its own disclosure, IIABA’s board policy encourages them to have their disclosure notify the insurance purchaser that: 1) the insurance policy was placed by an independent insurance agent or broker, not an employee of the company; 2) the company believes it is efficient and effective to distribute its policies through independent insurance agents and brokers; 3) the agent or broker placing the policy with the company may receive commission for that placement; 4) if applicable, the agent or broker may be eligible to receive additional incentives; and 5) any questions about the nature of the compensation should be directed to the agent or broker.
A copy of the policy is available in the members-only Legal Advocacy section of www.independentagent.com under "Producer Compensation: Legal and Business Issues."
Debra Perkins (debra.perkins@iiaba.net) is Big "I" executive vice president and general counsel.
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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
Key Considerations in Disaster Planning & Management
In the aftermath of Hurricane Katrina, emergency management is now top of mind for independent agents and brokers. The Agents Council for Technology’s "Key Considerations in Disaster Planning & Management for Independent Agencies & Brokerage Firms" is a report that can help your agency brace for the worst.
The report, available at no charge to Big "I" members, helps agents take steps now that will protect the ongoing viability of their agency or brokerage firm should a disaster strike. A disaster can bring a business to a standstill, it can keep you from servicing the needs of your policyholders when they most need it, and it can jeopardize the ongoing viability of your business.
Unfortunately, all agencies are susceptible to some type of disaster, whether it’s fire, wind, ice, flood, hurricane, earth movement, terrorism, hazardous material, spyware, viruses, worms or other causes. No one is immune. To the affected business, the net result is the same, because it may not have access to its systems, its phones (land lines or cell), the Internet, nor its fax lines, at the very time when hundreds of its policyholders need assistance.
The ACT report focuses on the key, strategic issues agents need to be aware of to implement an effective disaster plan. It is divided into three major sections: Steps to Take Well Before a Disaster; Steps to Take When a Disaster is Imminent; and Steps to Take After a Disaster Strikes. In addition, the report lists the catastrophe planning tools available on the market.
Learn more by visiting the ACT Web site. To download the report, click here. For more information, contact Jeff Yates at jeff.yates@iiaba.net; 800-221-7917.
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T R U S T E D C H O I C E ®
Leverage Trusted Choice® in Your Agency
As Trusted Choice® participation surges past 5,100 agencies across the country, every member firm has an opportunity to truly demonstrate to prospects and current customers the powerful benefits of their unique brand: choice, customization and advocacy. As part of an expansive outreach to consumers, we all must take a measured look at the appearance of our office settings. Sure, this has less to do with an insurance policy and more to do with the environment in which we offer insurance—but from the customer’s point of view, the latter is a critical component in perceiving the qualities of your brand. We must all do our part to provide a clean, modern, inviting and friendly environment that leverages the Trusted Choice® brand. If you’re like most independent agents and brokers, you already have a solid agency brand. Trusted Choice® is not meant to supplant your local identity. Instead, you can position Trusted Choice® as adding further value to the services your agency offers. Here’s how to do this. Review all marketing materials, checking for consistency in message, tone, color and professional appearance. Integrate the Trusted Choice® Pledge of Performance with everything. Every time a consumer sees the Trusted Choice® logo and connects it with your firm, you build awareness and appreciation of your brand. Add the logo and wording from the Pledge of Performance everywhere it makes sense. Some examples include a new client welcome package, proposal kit—which should include sales presentations, proposals and materials—letterhead, business cards, office signage and vehicle signage. Visit www.TrustedChoice.com to download the logo and the usage guidelines. For more information about how to integrate Trusted Choice® in your agency's local brand identity, contact Trusted Choice® at 800-221-7917 or TrustedChoice@iiaba.net.
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I I A B A N E W S
Indiana Agent Elected to Big "I" Executive Committee
J. Michael Miley has been elected to the Big "I" Executive Committee.
"It is a great pleasure to announce the election of our newest national Executive Committee member," says Big "I" CEO Robert A. Rusbuldt. "Mike is exceptionally committed and dedicated to the Big "I" and independent agents and brokers. We appreciate everything Mike Miley has done for this association, and look forward to seeing his leadership and hard work continue on the Executive Committee."
Miley, an account executive with Gibson Insurance Group in Plymouth, Ind., began working with the Big "I" in 1978, as a member of the Marshall-Fulton-Starke Counties Independent Insurance Agents Association. Miley has served on a number of committees at the state level including the Young Agents Committee of Indiana, the State Government Affairs Committee, as chairman of the New Products and Services Committee, as chairman of the Big "I" PAC and as an Executive Committee member. Miley served of president of the IIAI in 1995 and was elected Indiana’s State National Director in 1997.
On the national level, Miley has served on several boards, including: Membership Services, Inc., Agency Administrative Services, Inc., and Trusted Choice®, Inc. Most recently, Miley served on the board of the Big "I" Advantage, chairman of IIAA Agency Administrative Services, Inc. and chairman of the Professional Liability Committee’s Rating Subcommittee.
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Furey Joins Big "I" Government Affairs Department
Elizabeth Furey joins the Big "I" as the Director of Grassroots Programs. Furey comes to the Big "I" from the office of Congressman Mike Ferguson of New Jersey (R-N.J.). Prior to her Capitol Hill work, Furey did a Fulbright Assistantship in Klagenfurt, Austria for one year. Furey graduated from the University of Notre Dame in 2003 with a B.A. in political science and German. Furey grew up on Long Island, N.Y. She can be reached at elizabeth.furey@iiaba.net.
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