INTHISISSUE:____________

Bridging generational differencesA study in internshipsABCs of designations

FuelingTHE

INDUSTRYYoung agents

with drive

MARYLAND

WE’VE GOTYOUR BACK.

www.acuity.com

facebook.com/acuitywowIntroducing Eva & Ella, the ACUITY Cuties

Building a bridge between generationsThe human capital landscape is changing fast – in a very literal sense. Today’sinsurance workplace feels different, looks different and behaves like never before.And this is only the beginning....

Page 14

A study in internshipsWouldn’t it be great to “test drive” employees before hiring them? Two memberagencies share what drove them to create internship programs – and how they’rebenefiting.

Page 22

ABCs of designationsNew agents: Looking for a competitive edge to advance your career? A designationcould be your ticket. Here, IA&B filters through the alphabet soup to highlight whatit takes to tack a few letters behind your name.

Page 26

2012 Company Satisfaction IndexIA&B’s Company Satisfaction Index (CSI) survey is back – and it’s easier than everto complete. Now members can have their say on carrier experiences in half thetime.

Page 30

14

22

26

ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2012. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent Editor5050 Ritter RoadMechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-4) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

4 Chair of the Board’s Message5 Member FAQ6 State News8 Preventing Errors & Omissions10 Coverage Corner12 H.R. Headquarters

13 Glance at Events21 IA&B Partners29 Tools You Can Use32 Advertisers Index32 Classified Ads32 Last & Least

In every issue

Mission StatementPrimary Agent delivers ideas to help InsuranceAgents & Brokers’ members negotiate their uniqueposition as guardians of trust between insuranceconsumers and companies while facing thechallenges of maintaining a small business. PrimaryAgent also supports IA&B’s mission to preserve andadvocate the American Agency System.

Get social with IA&B

Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

We’re celebrating our 100th year by planning for our next 100 years.

Tanya Wentzel, Des Moines Branch Marketing ManagerTroy Boysen, Minneapolis Branch Commercial UnderwriterConnie Jarzynka, Omaha Branch Claims Adjuster

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

OfficersRobert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Chair of the BoardWest Chester, Pa.

Norman F. Basso, CPCUVice Chair of the BoardYork, Pa.

David Rosenkilde, CICImmediate Past Chair of the BoardReisterstown, Md.

MembersJoyce M. Bailey, CIC, CRM, CPIW

Newark, Del.

Henry “Butch” Bradley, Jr.Forest Hill, Md.

Timothy P. BurrisMifflintown, Pa.

N. Lee Dotson, CIC, AAIWilmington, Del.

John L. FrankenfieldTelford, Pa.

G. Greg Gunn, CICLemoyne, Pa.

John B. HollisterMilford, Pa.

Diana M. Hornung Hanby, ACSRWilmington, Del.

Jocelyn R. Howard-Sinopoli, CIC, CISRButler, Pa.

Robert S. Klinger, LUTCF, CPIA+

Germantown, Md.

Douglas A. Loesel, CPCUErie, Pa.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Ann Gallen Moll, CICReading, Pa.

April E. Ressler, CICAltoona, Pa.

Scott C. Rogers, CPIA*York, Pa.

David B. Wasson Sr., CICState College, Pa.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM**New Castle, Del.

* Pa. IIABA National Director** Del. IIABA National Director+ Md. PIA National Director

Board of Directors

[ 4 ]

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Chair of the Board’sM E S S A G E

Tapping into the fountain of youth

There’s been plenty of talk about the aging agencyworkforce. But how about the young blood that currently issurging through the independent agency system?

Truth is, there are plenty of young people who haverecognized the opportunity in our industry — and they’redoing well for themselves. And there are many agencies that are attracting young talent, and their agencies are better for it.

So let’s say you want to jump on this young-agent-recruitment bandwagon. Your agents’ association has yourback (as those 20-somethings might say). Think:

w Pre-licensing training and designation coursework forthe young folks to get their careers off the ground

w Employee management tools for the principals andowners to handle those new hires

w E&O prevention resources for everyone to sleep better at night

The industry is changing, and the change isn’t all bad. Along with the challenges of recent times come theoptimism, energy and fresh ideas of the next generation ofindependent agents.

Best,

Robert B Hall, ChFC, CLU, CPCU, ARM, ARM-P

[ 5 ]

ANSWER:Most state licensing laws (including Delaware, Marylandand Pennsylvania), contain a provision that allows anindividual, be it a spouse, court-appointed personalrepresentative, or even agency employee, to secure a“temporary license” for circumstances such as these.

The regulator may decide to limit the scope of the license,by limiting the lines of authority carried or otherwise, butthey are not generally difficult to obtain. The length oflicense will depend on state law: up to 180 days inDelaware and Pennsylvania, and 15 months in Maryland.It cannot be renewed.

How to secure a temporary licenseDelaware: An individual seeking a temporary license canapply online at www.nipr.com. The application will betreated just like a regular producer license. In addition, acopy of the death certificate should be faxed to theDepartment of Insurance at 302-736-7906 after theapplication is completed online.

Maryland: The easiest way to obtain a temporary licenseis to fill out the regular initial producer license form andmail it to the Maryland Insurance Administration with afee of $27. There is no special temporary license form. Theindividual will need to attach a cover letter with the nameand license number of the deceased producer along with

a death certificate. Even if you have applied onlinethrough NIPR, the license would not be fully processeduntil the additional documentation is provided.

Pennsylvania: The applicant should send a regularproducer application (with the $55 fee), along with acover letter explaining that the application is for atemporary license, and attach a death certificate. Nofingerprinting will be required.

Note that a temporary license can also be requested:

w When the licensee is physically or mentally disabled

w When a person enters active service in the armedforces of the United States

w For any other extenuating circumstances, subject tothe insurance regulator’s approval

DO YOU HAVE A QUESTION? E-mail it to us at iab@iabgroup.com. Please use “PrimaryAgent FAQ” in the subject line of your message. You canalso fax your question to 717-795-8347. We look forwardto answering your questions!

QUESTION: The agency principal just passed away: What do we need to do from a licensing standpoint?

Member FAQ

Primary Agent | April 2012

State NewsMembers step up forAgentPACAgentPAC – your statepolitical action committee– has hit the groundrunning in its efforts tocommunicate the agent'sperspective on issues.AgentPAC is your voice inAnnapolis, helping tokeep agent issues at the forefront andagent-friendly legislators in office.

In order to keep momentum, AgentPACrelies on engaged agents like youthroughout the state to contribute regularly.The most committed among them are theAgentPAC President’s Club members whopledge $1,000 or more in a single year. Asof March 5, the top donors included:

Richard S. Bramble, FAM&M Insurance Inc., Chestertown

Robert S. Klinger, Klinger & Associates, Germantown

Charles C. Veirs, III, C Clifton Veirs Agency, Rockville

Howard F. Wiedey, Jr., Wiedey & Associates Inc., Phoenix

Thanks to these and other early supporters, we have raised $650 towardour 2012 fundraising goal of $12,000. It’s easier than ever to make yourcontribution now (or spread it out over four easy quarterly payments) over thephone, by mail or online.

www.iabgroup.com/AgentPAC

MAPs take IA&B totown near youIA&B staff is gearing up for the spring 2012Member Agent Panel (MAP) tour, whichwill include stops in Gaithersburg, Bowieand Towson early this month. At eachlocation, member agents will weigh in onindustry issues and provide feedback onthe association’s activities and direction.

The MAP meetings also will allowassociation staff to recap recently launchedIA&B programs and services and to share legislative and regulatory updates.And, during an open forum, attendees mayair individual agency struggles andbrainstorm solutions.

As always, participants’ feedback then willhead to the IA&B Board of Directors. Watchfor updates and outcomes of the spring2012 MAP meetings in Agent Headlines andupcoming issues of Primary Agent.

Nominations foroutstanding CSRsbeing acceptedOutstanding customer service reflectsoutstanding agencies. As part of ourmission to “drive members to distinction,”IA&B encourages members to recognize anexceptional front-line employee bynominating her or him for the 2012Outstanding CSR of the Year Award. Theaward is sponsored by the National Alliancefor Insurance Education & Research, andIA&B is accepting nominations andcandidate entries.

[ 6 ]

[ 7 ]

The award is open to anyone,regardless of designation, andcandidates may nominate themselves.The only requirement is that thecandidate be an insurance CSR or have primary duties in customerservice. Upon receipt of a nomination,IA&B will mail the candidate thenecessary materials to complete theentry process.

Nominations should be made as soonas possible to allow the candidatesample time to complete all entrymaterials (including an essay) whichare due May 1. Winners will beannounced this summer.

www.iabgroup.com/awards/out_csr/index.html

SuburbanBaltimore to hostanother RubleseminarCIC designees can meet their annualupdate requirement in more places –and in less time. Thanks to demand, anadditional James K. Ruble GraduateSeminar was added for Ellicott City,Md. on Aug. 13-14. (Other dates andlocations are available in Maryland andPennsylvania throughout the summerand fall.)

Ruble seminars have been shortenedto two days for 2012. The condensedagenda with concurrent sessionsallows CICs to maximize their topicoptions while reducing time out of theoffice and related travel costs.

www.iabgroup.com/education

Tax time: retracted reportingrequirementreminderTax deadlines are looming … and yourvendors are requesting a Form 1099!?In case they missed it, the potentiallyburdensome Form 1099 mandate wasrepealed last spring.

Originally included in the PatientProtection and Affordable Care Act(health care reform law), it would haverequired businesses to file a Form 1099for any business-to-businesstransaction for goods or servicestotaling over $600 annually. Bipartisanlegislation repealed the mandate,which was intended to offset costsassociated with the health care bill byincreasing tax compliance.

Tomorrow's taxesmay triggeragency sales todayAging agency owners may want to puttheir perpetuation plan in motionsooner than later. Impending taxescould make 2012 a tempting year to sell.

w Without Congressional action, thecapital gains tax rate on Jan. 1,2013 will revert to the 2001 levelof 20 percent for most taxpayers.

w Assuming the Patient Protectionand Affordable Care Act (healthcare reform) remains in place, a3.8 percent tax on all unearnedincome above $250,000, toinclude capital gains, will begin as of Jan. 1, 2013.

Owners contemplating a sale areencouraged to contact an agencyvaluation consultant to determine a fair selling price. As a reminder,commission multipliers no longer areconsidered a good gauge of value and could prove detrimental to thebuyer or the seller.

IA&B's website shares a list ofconsultants, as well as merger andacquisition trends, an introduction tothe latest valuation techniques (such as EBITDA) and more.

www.iabgroup.com/md/perpetuation

New Power Hourwebinar onconcurrentcausationThe second installment of IA&B’s freePower Hourwebinar series isscheduled forWednesday, April18, at noon. Thismonth, coverageexpert Rita Hollada, CPCU, CIC, CPIA,will offer Concurrent Causation:Coincidence, Happenstance or JustDumb Luck?

This free one-hour webinar isexclusively for members and will betopical, engaging, and useful to you asan independent agent. Also mark yourcalendar for the June Power Hour,scheduled for Wednesday, June 20.This webinar is entitled Online GoldMine – Unearthing Valuable Resourcesat iabgroup.com. Watch AgentHeadlines each week for more details.

www.iabgroup.com/PowerHour

[ 8 ]

CURTIS M. PEARSALLCPCU, AIAF, CPIA

Curtis M. Pearsall, CPCU, AIAF,

CPIA, president of Pearsall

Associates Inc. and special

consultant to the Utica

National E&O Program,

supplied this article.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding

this article or your E&O

coverage, contact IA&B at

800-998-9644 or

iab@iabgroup.com.

Primary Agent | April 2012

From a distance, many mayview the job of a producer at an insurance agency asglamorous and rewarding.While those attributes apply, the job also presentstremendous challenges and responsibilities. Forinsurance agencies, thedegree to which these menand women perform this jobprofessionally and ethicallycan greatly determine notonly the agency’s success,but its errors & omissions(E&O) risk as well.

Producers must have astrong technical knowledgeof the industry, and there isdefinitely plenty to learn. Asthey interact with prospectsand customers, producerswill be looked upon to impartdegrees of this knowledge toassist the public in protectingthe customers’ assets. Toensure they are properlyeducating/informing thepublic, producers must makea strong commitment to notonly knowing the variousclasses and lines ofbusinesses, but also whatdifferentiates one from theother. While the licensingclass addresses this to a

degree, an ongoingcommitment to learning andknowledge is vital.

Know your clientOnce a producer has theknowledge, is he or sheready to sell? Havingknowledge with no salesskills – or sales skills withoutknowledge – is a “glass halffull” scenario. It also can bedangerous for the agencyfrom an E&O perspective.

Learning the sales structure/process is critical, yet thesales process doesn’t endwhen the sale is made.Many organizations whichprovide solid training forsales and marketing breaksessions down to pre-sale,sale and post-sale. Howproducers conductthemselves during thecomplete sales process willlikely determine whetherthey are successful and towhat degree they are an E&O risk.

Before that first appointment,the producer should get toknow his or her client. Oneapproach is by using thevarious exposure analysis

checklists which providetremendous detail by line ofbusiness for more than 650classes. For example, beforevisiting a prospect who is adry cleaner, the producermust educate themselves onthe exposures a dry cleanerfaces. In addition, usingavailable resources (websites,etc.) to understand yourclients can be beneficial.

PRODUCER DO’S AND DON’TS TO REDUCEE&O RISKS

PreventingE R R O R S A N D O M I S S I O N S

Learn more do’sand don’tsIA&B offers several E&O loss-prevention seminars. All areapproved for loss-control credit, as well as CE credits in Delaware,Maryland and Pennsylvania.

CLASSROOM TRAINING:

w Best Practices of Loss Control

w Mistakes that Lead to E&O

ON-DEMAND TRAINING:

w Ethical Behavior and E&O

www.iabgroup.com/E&Oseminars

[ 9 ]

When interacting with the client, it isextremely important that producersrealize that in many, if not all, states,an insurance producer (agent/broker)has a common-law duty to obtain thecoverage the client specifically requestswithin a reasonable time or inform the client of the inability to do so.Accordingly, producers must do a fair share of listening to what thecustomer/prospect is asking for.

Use the right wordsWhile producers want and need to sell to be successful, there is alsotremendous pressure andcompetition. There are times wheremarketing “puff” may enhance theirability to be successful, yet the words and phrases they use inpromoting themselves and theiragency should be chosen carefully.Telling customers and prospects you are an “expert” in insuringrestaurants or that “At XYZ agency, we make sure that you are properlycovered” may sound impressive, butcan also lead to the producer and theagency being held to a greater degreeof liability should a problem developdue to a “special relationship.”

Moreover, avoid using the word“recommend.” It might soundharmless, but, for example, if yourecommend that the client secures a$1 million umbrella and theyultimately have a loss well in excess of the $1 million, you could face anE&O claim for “recommending” a limit that was insufficient for the loss suffered.

Inherent in all of the interactions,whether with the prospect or themarkets you are using, is the need for prompt and professionaldocumentation. This is a keyingredient, but one that manyproducers struggle with. It’s as if thewords “documentation” and“producer” just don’t go together. If aproblem develops, this documentation– or lack thereof – will determine

heavily the direction of the E&O claim.Documentation is not an option; it ismandatory. It must also be promptand professional. There will besituations where documenting theessence of the conversation back to the prospect or customer, whether face-to-face or over thephone, is a must.

It’s your choiceDoes the customer always buy all of the coverages noted in theproposal? No. Producers should get the customer’s sign-off on thecoverages/ limits they will not be securing.

Let’s say the producer received theorder and requested the policies.Once they are received, it is crucialthat the policies be reviewed to ensure they reflect what was ordered.The producer should have a hand inthis process. Look to deliver thepolicies promptly. In all but a fewstates, the client has a duty to readtheir policy. Strongly encourage themto do so and, if they have anyquestions, advise them to contact theagency as soon as possible.

It will be necessary, over time, for the accounts be remarketed to other carriers in your office. Whenmoving an account from Company A to Company B, advise the customerof any coverages they are “giving up”with Company B. Once again,documentation of these discussions is a must.

Being a producer requires tremendousknowledge, professionalism andattention to detail. This will go a longway to ensuring success. Withoutthese attributes, you are an E&Onightmare waiting to happen. It’s yourchoice – and the right choice shouldbe easy to make.

Know your clientUnderstanding clients and their businessis vital to understanding (and covering)their exposures. IA&B members havediscounted access to a risk analysissystem that will help them:

w Understand exposures and learnrecommended minimum coveragesfor over 650 different industries

w Create questionnaires to collectnecessary information for ACORD applications

w Access coverage checklists to createa well-structured program anddocument clients’ selections

Delaware:www.iabgroup.com/de/rough_notes

Maryland:www.iabgroup.com/md/rough_notes

Pennsylvania:www.iabgroup.com/pa/rough_notes

CoverageC O R N E R

[ 10 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

Primary Agent | April 2012

In a perfect world a personor an entity purchases aninsurance policy from aninsurance company. Thatperson or entity becomes apolicyholder. Thepolicyholder has a loss andnotifies the insurancecompany. The insurancecompany either pays theclaim or defends thepolicyholder. Everybody ishappy. End of story.

However, we all know this isnot a perfect world. Life isjust not that simple. Manyclaims clearly are covered,many clearly are excluded,but, all too often, someclaims fall into a gray area.When claims do fall into thatgray area, insurers are facedwith a dilemma. What shouldthey do? Do they accept theclaim and provide defensefor the insured? Do theyreject coverage and abandonthe insured? Or do theyaccept the claim subject tocertain conditions?

If the insurer accepts theclaim, provides defense, andthen later determines theclaim is not covered, theinsurer may be preventedfrom abandoning the claim.A court might wonder whythe insurer abandoned theclaim after it initially thoughtit was covered. The courtcould say that by its ownacts, the insurer waived itsrights to deny coverage. Thelegal system often refers tothis as “bad faith.”

If the insurer denies theclaim, walks away from theinsured, and it’s determinedlater that the loss is covered,a court very likely will say theinsurer breached its contractwith the insured, and againuse that term “bad faith.” Ifthe claim is not clearlyexcluded, this option iscertainly the most perilousfor the insurer.

The third option is the safest– accept the claim subject tocertain conditions. Thisallows the insurer to tell theinsured, “We’ll take care ofyou now, but if certainconditions develop, we maywalk away.” In order toprotect its rights to walkaway from this claim in thefuture, the insurer will sendthe insured a reservation ofrights letter. The concludinglanguage of a typicalreservation of rights letteroften looks like this:

Nothing herein, norany action taken by us,including but notlimited to, investigation,defense, settlement, oradjustment, shall beconstrued as a waiverof right to denycoverage, and issubject to a fullreservation of rights.

RESERVATION OF RIGHTS —WHAT DOES THE INSURED DO?

[ 11 ]

A reservation of rights letter does notmean the claim isn’t covered. Itnotifies the insured that the insurerthinks that upon further investigationthere might be grounds to deny all orparts of the claim. Sometimes monthsmay pass before the insurer knowsenough to determine if coverageexists. As controversial as reservationof rights letters tend to be, they allowthe insurer to steer between the twinperils of total acceptance or totaldenial of coverage.

When an insured receives areservation of rights letter, what arethe options? There are several.

w Ignore it. This could be adangerous option, especially ifit’s later determined that the lossis not covered.

w Dispute it. Go on recordimmediately and advise theinsured why you disagree withthe interpretation of the policy.Press the insurer to give specificreasons why it could potentiallydeny the claim. This creates apaper trail which could behelpful later on.

w Put the insurer on the clock. Areservation of rights letter is notforever. Push the insurer tomake a decision. Eventually theinsurer must get off the fence.

w Notify your attorney. Keep inmind that the insurer maydecide to withdraw, and thenyou’re on your own. If you andyour attorney are confident thatcoverage exists, you may wantto seek a declaratory judgment.

What if the reservation of rights letterhas the following statement?

Subject to the foregoing, andwithout waiving any of its rightsand defenses, including theright to recover any defensecosts paid if it is determinedthe Company does not owe theInsured a defense in thismatter, the Company agrees toprovide the Insured a defensein the captioned suit.

Does this mean the insurer must bereimbursed for any amounts it spentdefending the insured for an

uncovered claim? Once it’sdetermined that the claim is notcovered, whether an insurer must bereimbursed for its costs and expensesincurred defending that claim isdependent on the specific facts of thecase as well as the jurisdiction.

On Aug. 17, 2010 the Supreme Courtof Pennsylvania ruled in the case ofAmerican and Foreign Ins. Co. v.Jerry’s Sports Center, Inc. that theinsurer could not obtainreimbursement of defense costs of$309,216 for a claim which a courtlater determined was not covered.This ruling was made even though theinsurer attempted to reserve its right

to be reimbursed in a series ofreservation of rights letters sent to the insured.

Many courts, including those inHawaii, Illinois, Wyoming and the U.S.Court of Appeals for the Third Circuithave agreed with Pennsylvania andrefused to enforce a reservation ofrights for reimbursement of defensecosts. However, the courts ofCalifornia, Florida and Colorado, aswell as the federal district courts ofColorado, Louisiana and Minnesotaplus the U.S. Court of Appeals for theFifth, Sixth and Ninth Circuits havetaken the opposing view. Their

rationale is that the insurer should notbe obligated to pay for non-coveredclaims when it does not receive apremium for the defense of thosenon-covered claims.

A reservation of rights letter is a redflag. The insurer is alerting theinsured that coverage may not existand, if not covered, the insurer hasreserved its rights to walk away fromthe claim. A reservation of rights letterallows the insurer to tell the insured,

“We told you this might happen. Youshould have been prepared.”

Y’all take care!

H.R.H E A D Q U A R T E R S

[ 12 ]

JEFFREY W. GERHARTCEBS, MBA

Jeffrey W. Gerhart, CEBS, MBA,

provided this article on behalf of

Mosteller & Associates, IA&B’s

contracted human resources

consulting firm.

IA&B members have access to

HR Solution©, a compilation of

products and services to help

them establish or improve their

human resources program.

Included are base-level

consultation services and

discounted professional services

from Mosteller & Associates.

Learn more at

www.iabgroup.com/hr.

What is this ruleabout?The National Labor Relations Board (NLRB)recently issued a ruling thatchanges election proceduresfor unions and employersand requires IA&B memberagencies (and most otheremployers) to post unionorganizing rights for theiremployees. The rule reduces the time and effort that employers canexercise to conduct aproactive campaign thatcounters potential unionallegations of unfair practices during anorganizing drive.

Background:The NLRB offered thefollowing explanation for the new rule:

The NLRB believes thatmany employees protectedby the National LaborRelations Act (NLRA) areunaware of their rightsunder the statute and that

the rule will increaseknowledge of the NLRAamong employees, inorder to better enable theexercise of rights under thestatute. A beneficial side effect may well be thepromotion of statutorycompliance by employersand unions. The final ruleestablishes the size, formand content of the notice,and sets forth provisionsregarding the enforcementof the rule.

Employers’ compliancedeadline was delayed from Nov. 14, 2011 until April 30, 2012 due to a legal challenge (see editor’s note). Pending anyfurther delays, employerswill be required as of April 30 to post theemployee rights noticein a conspicuous place,usually along with otherrequired workplace posters.

You can learn more aboutthe NLRA and its protections

and restrictions, as well asaccess the employee rightsnotice poster, at the NLRBwebsite: www.nlrb.gov/faq.

Is there anything Ican do in themeantime?Yes. As owners, evaluateyour vulnerability to a union-organizing campaign.The following are a few key points to consider:

w Do you treat youremployees fairly? Are you sure youremployees wouldagree?

w Do you have writtenhuman resourcespolicies andprocedures? And do your employees know about them?

w Are your supervisorstrained to understandtheir role? Do they haveappropriate authority?

NLRB EMPLOYEE RIGHTS NOTICE: WHATOWNERS NEED TO KNOW

Primary Agent | April 2012

[ 13 ]

Date Topic Location

3 CISR—Personal Auto Course Salisbury, Md.

CISR—Personal Auto Course Baltimore, Md.

4 CISR—Commercial Property Course Mechanicsburg, Pa.

5 CISR—Commercial Property Course State College, Pa.

10-12 P&C Licensing Study Course Pittsburgh, Pa.

16-19 CIC—Commercial Casualty Institute Allentown, Pa.

17-19 P&C Licensing Study Course Allentown, Pa.

18 Power Hour Webinar (Noon – 1 p.m.)

19 Dynamics of Service Seminar Linthicum, Md.

23-24 James K. Ruble Graduate Seminar Pittsburgh, Pa.

24 CISR—Commercial Property Course Reading, Pa.

Mistakes That Lead to E&O Claims Seminar Breinigsville, Pa.

24-26 P&C Licensing Study Course Mechanicsburg, Pa.

25 William T. Hold Seminar Philadelphia, Pa.

CISR—Commercial Property Course York, Pa.

30-May 3 CIC—Agency Management Institute Lancaster, Pa.

Glance at EventsA P R I L C A L E N D A R

w Do your employees know that you are competitive with wages and benefits, or the thingsyou do well that set you apartfrom your peers?

w Do you understand that youremployees are permitted todiscuss their terms and conditionsof employment, including theirwages and benefits, with eachother? (It is protected activityunder the NLRA.)

Now is also a good time to conduct a human resource audit of your office. You can access a model auditthrough IA&B’s HR Solution© atwww.iabgroup.com/hr. Or contact Jeff Gerhart of Mosteller & Associates,IA&B’s contracted human resourceconsulting firm, at 610-779-3870.

Editor's note: In early March, a U.S.District Court issued an opinionupholding the NLRB's authority torequire posting of the employee rights

notice, while simultaneously strikingdown other provisions of the NLRBrule. As this issue of Primary Agentmagazine went to print, an appeal ofthe court's ruling was anticipated,which may further delay theemployers' compliance deadline. IA&B will update members on anyappeal and/or resulting change in their obligations via Agent Headlines e-newsletter.

AGENCY MANAGEMENT

A brave new workplace:building a bridgebetween generations

The human capitallandscape is changing fast — in a very literal

sense. Today’sinsuranceworkplace feelsdifferent, looksdifferent and behaves likenever before.

And this is only the beginning....

[ 15 ]

Primary Agent | April 2012

The headlines blast that a Boomer turns 62 everyseven seconds; helicopter parents drop their kids off on their first days of work; and the talentshortage is looming. Insurance companies now face

a double threat: not only must they attract talent from ashrinking pool of qualified professionals, they must also be able to retain this talent. For the first time ever, thenation’s workforce spans four generations: theTraditionalists, the Baby Boomers, GenXers and theMillennials. A one-size-fits-all style is no longer an option.

The generations have different mindsets and values, as wellas communication and application methods. An organizationmust understand each generation’s idiosyncrasies in order tomeet their needs and expectations.

Meet the generationsEach generation, along with its unique talents andperspectives, is critical to a company’s success. Anorganization must appreciate the diversity of ideas andapproaches that the cross-generational workforce offers.

Traditionalists (born 1900-1945): Traditionalists are loyal,patient and dedicated. This generation maintains a strongwork ethic, placing responsibility before pleasure and rarelyturning down a work-related request. Traditionalists alsopossess a strong respect for the chain of command.

Understand that Traditionalists have spent the majority oftheir careers in a formal environment. Respect this mindsetand take a formal approach when addressing them. Face-to-face communication is key.

_________________________________________________________

Give your organization’s recruiting strategy cross-generational appeal and explore multiple

avenues to targeting this broad audience._________________________________________________________

Baby Boomers (born 1946-1964): Baby Boomers currentlycomprise the majority of the workforce. These workaholicsare disciplined, loyal and extremely competitive. They find asense of self in the work they do and are the last generationto believe that a job can be for life.

Often resistant to change, Baby Boomers are loyal totradition and bureaucracy. Give them your full attention andadmit that in certain situations they are older and more

T

An organization must

appreciate thediversity of ideas and

approaches that the

cross-generationalworkforce offers.

experienced. Boomers preferclear communication ofobjectives and desired results.

GenXers (born 1964-1976): Indirect contrast to the Boomers,Gen X works to live. Thisgeneration is starting familiesand greatly values work/lifebalance. They respond best toemployers that offer jobflexibility, job sharing ortelecommuting options.Independent, resourceful andcomfortable with authority, theyvalue productivity and desirehigh-quality results.

Gen X values challenge andfeedback. Do not micromanage;tell them what needs to bedone, but not how to do it. Thisgeneration prefers open, honestand direct communication. Theyvalue casual workingrelationships and theopportunity to be heard. Theyespouse to a “career lattice”rather than a “career ladder.”

Millennials (born 1977-1995):Millennials have highexpectations of their employers.They view work as anexpression of themselves;therefore, this mobile, goal-oriented generation wants tomake an impact. Their energyand optimism drive their needto succeed. Millennials werebrought up to believe that theycan do whatever they put theirminds to. Therefore, they havegreater demands of employersthan their predecessors.

A strong corporate brand andimage is important to this

group; they value teamwork,structured training, upwardmobility, and flexibility in hours and dress code. Theyplace emphasis on a well-rounded workplace, includingopportunities for communityservice, a commitment todiversity, environmentalawareness, office sports teamsand social events. Assign them multiple projects andresponsibilities and encouragethem to share new ideas andsolutions.

________________________________

A company’s corporateculture is critical to

overcoming the obstacles created by

generational differences.________________________________

Attract the generationsThe social networking andonline job boards that catchMillennials’ eyes may never beseen by Traditionalists.Likewise, newspaper and radioads are obsolete in attractingthe younger generations. Giveyour organization’s recruitingstrategy cross-generationalappeal and explore multipleavenues to targeting this broadaudience. Visit collegecampuses, post open positionson websites and industry jobboards, utilize word-of-mouthrecruiting, pull out a rolodex of connections, and employsearch firms. Revamp your

recruiting program to appeal tocollege students, as well asmature workers.

Engage the generationsA company’s corporate cultureis critical to overcoming theobstacles created bygenerational differences. Astrong, well-defined culture setsthe expectations, rules ofengagement and best practicesthat shape how employeesinteract on a daily basis.

Realize that each generationhas a distinct expectation ofhow managers shouldcommunicate. Millennials wantquick and consistent feedback.They seek involvement, newprojects and the opportunity togrow. Meanwhile, BabyBoomers believe in fostering aformal working relationshipwith their superiors and peers.They feel comfortable withscheduled meetings and want tobe recognized and rewarded ona company-wide scale. On theother hand, Traditionalistsoperate under the condition that “no news is good news.”They appreciate conventionalrewards such as plaques and certificates.

Build a bridgeIf a disagreement occursbetween a 35-year-old vicepresident with an MBA and a60-year-old director with 25-year company tenure, who doyou listen to? In an age whereyounger generations managethose with more years of

AGENCY MANAGEMENT

[ 16 ]

corporate experience and whereTraditionalists might be workingclosely with Millennials on adaily basis, it is imperative thatmanagers acknowledgegenerational differences andmake adjustments toaccommodate staff members.

________________________________

Managing a cross-generational workforce is a new challenge and

must be approached withsavvy and finesse. The

one-size-fits-all workforceis long gone; however, theincreased productivity andknowledge capital that will

result from a diverseworkforce is invaluable.

________________________________

Upon graduation from college,Generation Y will be the largest generation ourworkforce has ever seen; andthe insurance industry mustengage and prepare our futureleaders. Position the matureworkers as the bridge for thistransition. Utilize mentorshipprograms, a multi-generationaltask force or cross-generationalproject teams. Educatemanagers, supervisors and teammembers on the differencesbetween the generations, aswell as how to bridge the gapand leverage the diversity ofideas and approaches.

Continued on page 18

[ 17 ]

Member profileJohn Yurconic Agency pumpsyoung blood into workforce

John Walsh supervises a team of nine. He oversees the personal linesdepartment’s entire sales and service operation. And he manages a large,established book of business for the 43-year-old John Yurconic Agency.

Oh, and he’s only 26.

Welcome to the next generation of independent insurance agency staff. Walsh is enthusiastic about the business. He’s a hard worker. And he has noqualms about attracting clients through Facebook and managing accounts over email. He plays hardball with the direct writers by competing online and relates to the young consumers who surf the Internet for the best deals. Yet he recognizes the purpose of establishing relationships andproviding personalized customer service that differentiates the independentagency system.

The Allentown, Pa.-based John Yurconic Agency employs over 20 licensedstaff, many of whom fall into the Gen X and Millennial generations. Yet a core of seasoned insurance veterans balance out the team. Walsh sees howgenerational differences affect work style but believes in the advantage ofmiddle ground.

“Somewhere in the middle is a happy place, where both generations canmeet,” he shares. “Both can benefit.”

Walsh is the first to admit that he looks his age. He says some clients andprospects initially don’t take him as seriously as he’d like because of it. Butsharing with them that he has six years of insurance knowledge tends to erasetheir concerns.

“There are benefits to my age, too,” he says. “Some clients like the youngeragent who gets excited more easily.”

So what’s his advice for the elder statesmen (and women) of the independentinsurance agency system? Give young blood a chance – and be open mindedto where you find it.

“From what I’ve seen, [talented young producers] can come from anywhere,”he shares. “An insurance background is helpful but not necessary. A goodsales person is a good sales person. They can learn insurance. Find someonewho’s driven.”

The bottom line? A companymust be flexible and agile. Atthe end of the day, productivityand quality are the barometer ofsuccess. If employees wantformal meetings, schedule them.If they prefer that a project isexplained via email, do so. Ifthey work at their desks withiPods blasting, don’t assumenothing is getting accomplished;examine the quality of theirwork. If Boomers want toconduct face-to-face meetingsfor the duration of the project,let them. If Generation X prefers to work from home and hold conference calls, yetstill maintains productivity, offer telecommuting.

Managing a cross-generationalworkforce is a new challengeand must be approached withsavvy and finesse. The one-size-fits-all workforce is long gone;however, the increasedproductivity and knowledgecapital that will result from adiverse workforce is invaluable.The companies that will remainsuccessful throughout theimpeding talent crunch arethose that can alter theirmanagement styles to targetand accommodate eachgeneration.

_______________________________

Margaret Resce Milkint, managingpartner of The Jacobson Group,

contributed this resource. She canbe reached at 800-466-1578 ormmilkint@jacobsononline.com.

The Jacobson Group is the nation’sleading provider of insurancetalent. For 40 years, we have beenconnecting insuranceorganizations with professionalsfrom the board room to the backroom on both a permanent andtemporary basis. We offer a varietyof solutions from executive search,professional recruiting and RPO totemporary staffing, subject matterexperts, and onsite and offsiteoperations support. Whatever the need or situation, Jacobson isthe insurance talent solution. For more information, please call800-466-1578 or visitwww.jacobsononline.com.

AGENCY MANAGEMENT

[ 18 ]

HANOVER FIRE & CASUALTY serves the working families of our region by offering the insurance they need. No games. No tricks. Just good, solid insurance available to those who really need it. We settle claims promptly and fairly, and we manage to hold our rates. And the fact is, for nearly 100 years, our customers return and renew with us; well, that just drives the point home, doesn’t it?

Would you like to be a Hanover agent? For more information call 800-919-FIRE or visit www.hanoverfire.com. Learn more about our portfolio of products, our easy-to-use agent portal, and our com-petitive commission structure. Call today!

The Secret Is Out!Hanover Agents Love To Tell Their Customers

Why They Are Happy To Be Associated With Us.

Continued from page 17

[ 19 ]

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Insurance Agents &

Brokers proudly recognizes

Millville Mutual Insurance

Company as one of its

Platinum Partners.

IA&B Platinum Partners

dedicate the highest

level of sponsorship to

our organization.

FEATURED PARTNER:Millville Mutual Insurance Company

COMPANY PRESIDENT:M. Paige Raski

President

COMPANY LOCATION:215 State Street, Millville, PA

800-262-8495

A.M. BEST RATING: “A” (Excellent)

WEB SITE:www.millvillemutual.com

Millville Mutual InsuranceCompany has been inbusiness since 1875 and is

one of the four oldest continuouslyoperating businesses in ColumbiaCounty, Pa.

With $56 million of assets, $24million in premium and $32 millionin surplus, Millville Mutual is proudto announce that, due to financialstrength and efficient operations, ithas retained an “A” (Excellent) ratingby AM Best Company, which is arating it has maintained since 1973.

We have achieved significantprogress in the redesign of a web-based policy management systemwhich will allow our customers andagency force access to policy andbilling information 24/7. Last yearsaw the implementation of thissystem with the addition ofBusinessowners, Farmowners,Commercial Inland Marine, SpecialResidential, Personal Umbrella, andFarm Umbrella lines of business.2012 will see the completion of thisprogram along with the officialintroduction of Millville MutualInsurance Company of New York.

At this time we are offering FloodInsurance in the state of New Yorkand will also offer Dwelling Fire,Mobile Homeowners, andHomeowners in the near future.

Millville Mutual takes pride inserving its nearly 60,000policyholders throughout the state of Pennsylvania. The staff at MillvilleMutual is dedicated to buildingstrong ties to rural and suburbanPennsylvania, which gives them theinsight and knowledge to tailor theirproducts and services to fit thespecific needs of each individualpolicyholder. With more than 175independent agencies across thestate, customers can receive thepersonalized service andindividualized products they deserve.

Millville Mutual strives to providethe best possible combination ofpersonalized customer service andtechnological advancementavailable in today’s market, and arecommitted to building lastingrelationships with both theirpolicyholders and their independentagency force.

Millville Mutual company headquarters located in Millville, Pennsylvania

Platinum Profile

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at 800-998-9644,

717-795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agencysystem and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupDonegal Insurance GroupErie Insurance GroupHarleysville InsuranceHighmark Casualty Insurance CoInsurance Agents & BrokersService Group Inc

MMG Insurance CompanyMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupOhio CasualtyPenn National InsuranceSelective Swiss ReThe Main Street America GroupUtica National Insurance Group

GOLD LEVELProgressive

SILVER LEVELAccess Insurance Company Allied InsuranceAmerican Mining Insurance CoCumberland Insurance GroupFrederick Mutual Insurance CoJuniata Mutual Insurance CoPSBA Insurance TrustThe Philadelphia ContributionshipWestfield Insurance

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance House

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent April 2012

AGENCY MANAGEMENT

A study in internshipsTwo member agencies share their successes

Wouldn’t it be great to “testdrive” employees beforehiring them? To see howthey perform in a fast-pacedenvironment? How theymaneuver aroundunexpected road blocks?How they approachseemingly uphill tasks?

Several of the Seubert Associatesinterns-turned-permanent-employees:(from left) Doug Fleisner, Kristie Lulichand Brian Hartman

[ 23 ]

Primary Agent | April 2012

Those very thoughts drive the creation of manyindependent agencies’ internship programs.

MotivatorsBrian Long, president of Seubert Associates in Pittsburgh,Pa., hired his agency’s first intern simply to meet a claimsdepartment need. Eighteen years later, the internshipprogram is formalized and takes in two to five students per year.

As for that first intern? She came on board as a full-timeemployee and has worked for Seubert ever since. Fouradditional interns followed in her footsteps, takingpermanent positions with the agency, and two of those arenow agency principals and became Seubert’s top producersin 2011 at the ripe young age of 30.

The York, Pa.-based McConkey Insurance & Benefitsinternship program began in 2007 as a recruitment tactic — a tactic that already paid off. Two of the agency’s five internstook full-time positions with the agency; two others tookjobs within the industry.

______________________________________________________

“One of the main benefits of our internship program has been for us to create a pool of qualified candidates….

It’s a three-month job interview.” — Amanda Sides

______________________________________________________

“One of the main benefits of our internship program hasbeen for us to create a pool of qualified candidates,” sharesAmanda Sides, a client service agent with McConkey whooversees the internship program. “We know their work ethicand can be confident in their skills and abilities. Those arethings you can’t get out of an interview and resume alone.It’s a three-month job interview.”

Long agrees. He calls the internship program “a feeder” andtouts its ability to gauge students’ work ethic and promise asfuture employees.

“Finding young talent is the whole reason for our existence,”he says, explaining the Seubert agency’s business model,which requires employees to sell their stock back when theyreach age 65. “The goal is to find smart young people to buy

The next step:from intern tonew hire

Hiring and training young producersis a different game. Those firms that will succeed must do four things well.

1. If they want to recruit collegekids, they must establish apresence on college campuses asa means to identify the besttalent.

2. The firms should invest inmentoring of the youngproducers to the point thatmentoring becomes part of theirfirm’s culture.

3. Young producers should be hiredin classes, fostering a collegialbond among [them].

4. The young producers should beprovided with resources that willmake them successful.

Source: “Recruiting Young ProducersCan Pay Big Dividends,” AmericanAgent & Broker, June 2010

you out…. We use the threemonths to screen [potentialnew hires].”

ExpectationsThe benefits of an internshipto an agency are great, butrecruitment and managementrequire work and oftenagency-wide buy-in.

Sides partners with localcollege and university careerservice centers to post theinternship position and looksto recommendations fromcolleagues as well. Longmostly relies on word ofmouth and finds that everyone

on staff is looking actively forpotential candidates. Bothcredit the quality of localcolleges and universities fortheir applicant pool.

The McConkey and Seubertagencies bring on internsduring the summer months,when the students can focus solely on their agencywork, rather than competingclass syllabi.

Sides structures internshipswith a flexible summer-longschedule, outlining when thestudents will shadow andcomplete tasks for each of theagency’s six departments.

Then she doles out long-termprojects — often focusing onmarket research — that thestudents complete in anydowntime. The interns evenreceive a mid-summerevaluation to track theirprogress and encourageimprovement.

Seubert Associates interns arehired by a department, usuallyto complete a specific task.Projects vary from insurance-to-value research to data entryto equipment scheduling.Students also are required tocomplete homeworkthroughout the summer:

AGENCY MANAGEMENT

[ 24 ]

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reading Earl Nightingale’s “The Strangest Secret forSucceeding in the WorldToday” and watching his “TheBoss” video, then writing apaper on them.

_____________________________

“If we can find some smart young people and try to plant a seed that it’s a great industry to be in, we can not justsurvive but thrive.”

— Brian Long_____________________________

“Our internal environmentalenhancement groupbrainstorms projects ouragency needs to work on,” saysLong of the source of manyinternship duties. “Watchingthe interns work style andthought process, you can seewhich ones get it and whichones don’t.”

BenefitsThe McConkey and Seubertinternship programs aresuccess stories — for theiragencies and for the industry at large.

“This has been a positiveexperience for the agency,”shares Sides. “Even if we don’thire our interns full time, theprojects they completecontribute to our agency’ssuccess. Our interns bring newperspectives and ideas, and it’s

great to see those ideas turninto successes.”

Long agrees and adds, “If wecan find some smart youngpeople and try to plant a seed

that it’s a great industry to bein, we can not just survive but thrive.”

[ 25 ]

Primary Agent | April 2012

That’s just one of the reasons we’ve been ranked among the top 10 carriers nationally in ease of business by Deep Customer Connections.

www.PennNationalInsurance.com

Business Surety Auto Home

wow!

We don’t just create fast and simple

automation solutions for our agents.

With a “WOW” quoting system

and superior service,

we set out to delight them.

AGENCY MANAGEMENT

ABCs of designationsSending new agents to the head of the class

New agents: Looking for acompetitive edge? A wayto improve your value asan employee, help in yourinteractions with clientsand advance your career?A designation could beyour ticket. Here, IA&Bfilters through the alphabetsoup to highlight what ittakes to tack a few lettersbehind your name.

[ 27 ]

Primary Agent | April 2012

What’s a designation worth? Quite a bit in the insurance world. It’s a way to developknowledge in an ever-changing industry, gain clout among colleagues and build trustwith clients.

“A designation earns you respect and a level of authoritywhen talking about coverage issues,” says L. Allan Boyd, CIC,vice president and agency manager for Shoemaker & Besser Insurance in York, Pa. “Suddenly people in the agency come to you with questions.”

Kurt Richards, CIC, CPIA, sees the value in how a designationchanges an employee’s outlook.

“It improves your overall professionalism and attitudetoward your job,” says the vice president and commerciallines producer for the Swift Kennedy Insurance Group inDuBois, Pa. “I recommend it to the producers in our office,along with other agent friends.”

_________________________________________________________

“When I first received my designation, I was out selling commercial insurance,” says L. Allan Boyd, CIC. “What I learned

at the institutes gave me the ability to look at an account, pick it apart and offer an intelligent opinion about what

was wrong with it. It enhanced my ability to sell insurance.”

_________________________________________________________

CICThe Certified Insurance Counselors (CIC) program consists of five institutes: personal lines, commercialcasualty, commercial property, life & health and agencymanagement. Each institute includes two and one-half days — or 20 hours — of instruction followed by anexamination. Designees are then required to take oneprogram annually to retain the certification.

The designation is intended for agency owners, agents and brokers. To qualify, participants must be a licensedagent, broker, adjustor or solicitor; have at least two years of full-time experience in the industry as a riskmanagement practitioner; or have served as a full-timefaculty member at an accredited college or university.

How to getstartedIA&B long has been known for itsprofessional development. Expertinstructors, convenient locations andexceptional value keep insuranceprofessionals across the Mid-Atlanticcoming back for more.

Along with licensing preparation, E&O prevention and special topicseminars, IA&B offers CIC, CISR and CPIA designation courses.

Learn more and register:www.iabgroup.com/education

W

According to The NationalAlliance for InsuranceEducation & Research, whichoversees the CIC Program, theinstitutes focus on a hands-on,practical application ofinsurance principles.

More information: www.scic.com

CISRThe Certified Insurance ServiceRepresentatives (CISR)designation is intended foragency personnel interested in improving their customerservice.

The completion of five, one-day courses, along with

corresponding exams, isrequired within three years of starting the program. The topics include insuringcommercial casualty exposures, insuring commercialproperty, insuring personalresidential property, insuringpersonal auto expenses and agency operations.

Designees leave with athorough understanding ofrisks, coverages and exposures,which makes the program ideal for newer agents andagency personnel.

More information: www.scic.com

CPCUThe Chartered PropertyCasualty Underwriter (CPCU)program focuses on the legal,financial and operationalaspects of risk managementand insurance, as well as onfinancial services. Brokers,agents and risk managers arethe intended audience for thistheoretical coursework.

Participants complete fivefoundation courses and threeadditional classes with either acommercial- or personal-linesconcentration. Candidates mustalso log a minimum number ofhours in the insurance fieldduring the previous five yearsto receive the designation.

More information: www.aicpcu.org

CPIAThe Certified ProfessionalInsurance Agent (CPIA)designation is designed forproducers and sales supportstaff who create and distributeinsurance programs.

The American InsuranceMarketing and Sales Societyoversees the program, which istouted as “hands-on, how-totraining.” Candidates participatein three, one-day InsuranceSuccess Seminars: position forsuccess, implement for successand sustain success. They leavewith a guarantee of a 20percent increase in personalproduction within six months.

More information: www.cpia.com

AGENCY MANAGEMENT

[ 28 ]

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Tools Y O U C A N U S E

[ 29 ]

LinkedIn

Gone are the days of relying on newspaper Classified ads – or even Monster.com. The adventof the social Web opened up a new world of job searching and recruiting, and LinkedIn isleading the way. Ways to find new talent using a basic (read: free) LinkedIn account follow.

Get social at www.linkedin.com. And while you're linking, join IA&B's LinkedIn group, accessiblefrom www.iabgroup.com/soc_media.

Money talks. Access premium search tools and send InMail to anyone, regardless of whether or not you areconnected, with a membership upgrade. Buy a job-posting package for your position to show up on LinkedInusers’ homepages and in their searches.

Reach out to potentialcandidates through a

common connection. Orsend an invite for them to

connect with you.

Share a status updatethat includes a link toyour agency’s job onyour agency website.

Use the AdvancedPeople Search to findcandidates by name,job title, keywords,industry and more.

Post your agency’s jobon a LinkedIn group’s

job tab.

ASSOCIATION AT WORK

2012 CompanySatisfaction IndexHave your say in half the time

IA&B’s CompanySatisfaction Index (CSI)survey is back — and it’s easier than ever to complete.

[ 31 ]

Primary Agent | April 2012

Company Satisfaction Index[kuhm-puh-nee sat-is-fak-shuhn in-deks]

noun: a gauge of IA&B members’ collectiveexperiences with carriers’ products,underwriting, claims and technology

Slimming down the time commitmentThe CSI is half its former size. Beginning this year, thepreviously biennial survey is now an annual event thatalternates between personal lines and commercial lines.With half of the carriers to rate, participation requires only half of the time. Truly, it has never been easier to takethe survey.

Getting up to speedHere’s how the CSI works: All IA&B member agency staff areencouraged to rate their top three, or more, if they’re willing,carriers in an online survey. For 2012, participants will ratepersonal lines carriers. Next year the survey will gaugecommercial lines carriers.

Participants rank their satisfaction — 4 indicates satisfaction,while 1 denotes dissatisfaction — on a series of statements.Categories include products, pricing and underwriting; policyservice and claims; agency/company relationship; andtechnology. The survey is housed online, so participants cansave their progress and return whenever it’s convenient.

The overriding goal of the CSI is to improve carrierperformance. Beyond that, there are tangible benefits toagencies — comparing carrier relationships with those oftheir peers and benchmarking companies before acceptingappointments. And from a global perspective, the results arevital to IA&B’s dialogue with carriers.

Beefing up the credibilityParticipation has grown substantially since the CSI launchedin 2004. At its height, over 500 member agents rated 114companies. And for a non-scientific survey, the greater theparticipation, the more credible the results.

Along with credibility, increased participation also improvescarriers’ reception to the survey. CSI results are showing upin carriers’ marketing materials and agency-visit discussions,and company executives are touting their use forbenchmarking their agent relationships.

In the day where agency-company relationships are strained by mounting pressures, growing competition and a lingering soft market, opening up lines ofcommunication is more important than ever. And IA&B’s CSI accomplishes just that.

Top 10 reasons totake the CSI survey10. It takes half as much time as

previous CSI surveys.

9. The results bolster IA&B’scarrier relations efforts.

8. All the cool agency staffmembers are doing it.

7. The results can strengthen aclient proposal.

6. It’s a refreshing break frompinning on Pinterest.

5. The results are a must-readbefore accepting a companyappointment.

4. Speaking your piece iscathartic.

3. The results let you compareyour experience with others.

2. Greater participation equalsgreater credibility.

1. Carriers read the results.

Save the dateApril 16 - CSI Daywww.iabgroup.com/csi

ACUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Brokers Surplus Agency . . . . . . . . . . . . . . . . . .19

EMC Insurance Companies . . . . . . . . . . . . . . . .3

Guard Insurance Group . . . . . . . . . . . . . . . . . .19

Hanover Fire & Casualty . . . . . . . . . . . . . . . . . .18

IA&B Partners Program . . . . . . . . . . . . . . . . . . .21

IA&B AgentPAC . . . . . . . . . . . . . . . . . . . . . . . .IBC

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

Millers Mutual Group . . . . . . . . . . . . . . . . . . .IFC

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .28

Penn National Insurance . . . . . . . . . . . . . . . . .25

Preferred Property Program . . . . . . . . . . . . . . .24

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[ 32 ]

Friday, April 13 marks thesecond of three Friday the13ths in 2012. It’s exactly 13weeks after Friday, Jan. 13and 13 weeks before Friday, July 13.Which makes it enough for even the least superstitious togive pause, or — for those of us in the insurance industry— to ponder the date’s risks.

There are no shortages of studies claiming an increase ordecrease in accidents on Friday the 13ths:

A 1993 British Medical Journal report found “the risk ofhospital admission as a result of transport accident may beincreased as much as 52 percent.” Researchers went as faras to recommend staying home.

On the contrary, in 1998 the Dutch Centre for InsuranceStatistics found that fewer accidents and reports of fire andtheft occur on Friday the 13ths compared to other Fridays.Swedish insurer Trygg-Hansa concurred in 2012, findingthat it received 3 percent fewer reported accidents on Fridaythe 13ths than on other Fridays in the previous five years.

So whether or not you consider yourselfparaskavedekatriaphobic (fearful of Friday the 13th), be prepared for clients — particularly those making aclaim that day — to take note of the calendar.

Sources: Reuters, The Local

----------------------------------------------------------------———————-------The Last & Least column is dedicated to the industry’s oddities —from creative claims and kooky coverages, to (tasteful) jokes andstrange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

The risks ofFriday the 13th

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