ALSO INTHISISSUE________________AgentPAC past, present and future

Agency PAC Challenge winner

DELAWARE

© Copyright Employers Mutual Casualty Company 2009 All rights reserved

www.emcinsurance.com

MAKE EMC YOUR CHOICE FOR MAIN STREET BUSINESSWhen you think main street business, start thinking about the EMC Choice® Businessowners Program. Small and midsize businesses will enjoy the flexible coverage options designed to meet their specific insurance needs, the added value of free loss control services, plus the responsive service from an EMC branch office nearby. So if you still think EMC is just for niche programs, think again. Count on EMC ® for your main street commercial lines marketing, too. For more details, contact your local EMC branch office.

I used to think EMC was ju st for niche commercial programs. Then again, I used to think babies came from storks.

Valley Forge Service Office: 800.362.3620 | Home Office: Des Moines, IA

Election 2010: Looking into the crystal ballPolitical analysts have long looked to mid-term elections, or ones occurringbetween presidential elections, to gauge approval and to forecast the comingyears. Here, IA&B highlights the most-watched state and federal races.

Page 10

AgentPAC builds from 2009 accomplishments, sets goalsfor 2010For AgentPAC, IA&B’s statewide political action committee, 2009 was animportant year. And 2010 promises to be just as crucial and demanding.

Page 18

Agency staff stands behind AgentPACHealth care reform. Federal regulation. Licensing standards. Educationrequirements. The legislative issues poised to affect independent agents aremany. But thanks to the support of the John T. Fretz Insurance Agency andother generous member agencies, IA&B’s political action committee,AgentPAC, is better equipped to protect agents’ interests.

Page 22

10

18

22

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

Copyright 2010. All rights reserved. No material may be reproduced in whole or in part without written consentof 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 EditorPO Box 2023Mechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100Fax (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 # 2010-2) is published monthly by IA&B Service Group Inc.,a subsidiary of IA&B.

2 Chair of the Board’s Message3 Member FAQ4 State News5 New Members6 Preventing Errors & Omissions8 Coverage Corner

17 IA&B Partners20 Glance at Events24 Technology Update28 Advertisers Index28 Classified Ads28 Last & Least

In every issue

Mission StatementPrimary Agent delivers ideas to helpInsurance Agents & Brokers’ membersnegotiate their unique position asguardians of trust between insuranceconsumers and companies whilefacing the challenges of maintaininga small business. Primary Agentalso supports IA&B’s mission topreserve and advocate the AmericanAgency System.

OfficersKathleen M. Glattly, ChFC, CLU, CPCU

Chair of the BoardFactoryville, Pa.

David Rosenkilde, CICVice Chair of the BoardReisterstown, Md.

Robert J. “Buc” Cawley, AAIImmediate Past Chair of the BoardWexford, Pa.

MembersNorman F. Basso, CPCU

York, Pa.

Vincent D. “Chip” Boylan Jr., CPCURockville, Md.

Henry “Butch” Bradley, Jr.Crofton, Md.

Timothy P. BurrisThompsontown, Pa.

M. Scott Clemens, CIC, CPCU, CLU, ChFCSouderton, Pa.

John T. “Chip” Colwell Jr., CICCorry, Pa.

G. Greg Gunn, CICLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PWest Chester, Pa.

Diana M. Hornung-Momot, ACSRWilmington, Del.

Linda A. McCann, AAI, CPCU, CPIWSalisbury, Md.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Scott C. Rogers, CPIAYork, Pa.

Susan A. Sallada, CIC**Ft. Washington, Pa.

William D. Schneider, CPCU, ARM*Pittsburgh, Pa.

Robert A. Walbeck, CICHomer City, Pa.

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

James M. Watkins*Dover, Del.

King W. “Kip” White, LUTCFFallston, Md.

John S. Yasik, CICNewark, Del.

* IIABA National Director** PIA National Director

Board ofDirectors

Elect to make your voice heard

For better or worse, we’re in the spotlight. Congress’s toppriorities over the past year have included addressingsystemic risk and health care — topics that directly impactindependent agents. And some contentious debates, such asthe one over regulation, don’t appear to be going away.

So during this election year, perhaps more than any other inrecent memory, it is vital that we voice our educated, unifiedopinions and endorse the candidates most understanding ofour industry.

This issue of Primary Agent magazine includes an electionpreview, on a national and state scale. It also provides anupdate on AgentPAC, our association’s political actioncommittee, and showcases the winner of last year’s AgencyPAC Challenge.

AgentPAC is the lifeblood of our lobbying efforts and issustained by voluntary contributions from our members.These lobbying efforts voice the concerns of and garnersupport for our industry and cement the bond betweenlegislators and our association’s members. It is vital topossess legislative relationships that open the door fordiscussion of current issues. Many such relationships startedwith AgentPAC — and more importantly — through thevoice of the agents who supported it.

It is your livelihood at stake, so I encourage you to getinvolved with the legislative process. Whether it iscontacting your legislators, donating to AgentPAC or simplyvoting; make this the year where your voice is heard onCapitol Hill.

Thank you in advance for your participation in our legislativeefforts. I deeply appreciate your membership and support!

Until next time,

Kathleen

[ 2 ]

Kathleen GlattlyCPCU, CLU, ChFC, AIM

Chair of the Board’sM E S S A G E

?QUESTION:

Does IA&B have a sample privacy agreement available? I am looking for an agreement to use with an

IT provider, who would have access to private information on our hard drives.

ANSWER:Yes. And your question is more relevant than ever withthe increased scrutiny on information sharing. In additionto the sample privacy policy that is posted on our Website, a sample Information Security addendum isprovided. That is the document you are looking for.

For those who need a refresher, read on: Insuranceagencies, in the course of their business, regularly contractwith service providers for a host of different services thatthey are not able or willing to perform themselves. In theprocess, the service provider may need to gain access toclient information in order to perform those services.For example:

� a marketing firm sending a mailer to your customerswould access a client list, or

� an Information Technology (IT) provider wouldaccess client information housed in your system.

All three states in which we operate — Delaware,Maryland and Pennsylvania (and, for that matter, manymore) — have adopted privacy regulations which containa provision relative to service providers. The regulationsrequire the agency to enter into a contractualagreement prohibiting the service provider from usingthe information for any purpose other than the one forwhich the information was disclosed. Simple enough, buteasily overlooked.

IA&B’s privacy page houses various samples, includingthis sample service provider agreement. Better yet, thisagreement may be needed to comply with other lawsthat have been enacted since (such as Maryland’s databreach law). Using the sample will serve both purposesat once. The page is accessible from www.iabgroup.com(go to Agency Operations, then Privacy).

Your privacy notice should state separately that youare using service providers and confirm that youhave entered into an agreement with them to protect

your clients’ information. If you used IA&B’s sampleprivacy notice, language was included in the sample toaccount for this.

If you’re not sure where you stand, check your privacynotice and check your contracts with service providers.If the language is missing, make sure you add it.

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!

[ 3 ]

Member FAQ

In memoriamHarriette B. Geistwhite

Harriette passed awayon Dec. 17, 2009.She was the PIA ofPennsylvania, Marylandand Delaware’s firstnon-agent volunteerand, later, first employee.Her kitchen tableserved as the

association’s first headquarters, and she tookon the roles of caterer, secretary, editor andtreasurer, to name a few. For 34 years, Harrietteshowed great loyalty and gave selflessly to theassociation, and the success of what is nowIA&B is owed in part to her dedication.

Primary Agent | February 2010

[ 4 ]

State News

Watching the budgetFollowing last year’s budget deficit,DAIAB and the independent agentcommunity are monitoring the state’sfinancial health for continued gloom.There is also concern over potentialrevenue-increasing plans to balance thebudget for the upcoming fiscal year.

In order to bridge last year’s gap, thelegislature decreased the state’s overallbudget by 8 percent and approved over$200 million in tax increases, rangingfrom the gross receipts tax to thefranchise tax.

While DAIAB was pleased that targetedtax increases aimed at the insuranceindustry were not realized in thatbudget, agents are not off the hook in2010. This year brings fewer availablereserve funds, including federal stimulusdollars, so lawmakers’ book-balancingmoves likely will become more creativeand perhaps more desperate.

Monitoring billsIn addition to the looming budget, thereare several pieces of legislation floatingin the General Assembly that DAIAB ismonitoring. HB 247 aims to increaseconsumer fraud-protection efforts.DAIAB will push for a carve-out for theinsurance industry by arguing there aresufficient protections already in place.Another, HB 255, pertains to victimsaccessing their own underinsuredbenefits. DAIAB is keeping an eye on thelegislation, which is being pushed by theTrial Bar, for any potentially negativeimpact on members.

DAIAB will maintain a presence inDover through the end of the legislativesession in June, advocating for agentsboth in the budget process and onlegislation that impacts them and theiragency. Look for continued updatesthroughout the course of the legislativesession in editions of CapitolConnection, DAIAB’s electronic politicallyand legislatively focused newsletter.

Legislative session forecastDAIAB monitors budget, lingering bills

[ 5 ]

Once again DAIAB and a delegationof member agents will travel toWashington, D.C. as part of theBig “I” National Legislative Conferenceand Convention.

DAIAB will attend the March 3-5conference in full force, with over 50Pennsylvania and Delaware members –regularly one of the largest participatingfactions. The event marks an opportunityfor agents from throughout the countryto convene in Washington, D.C. andlearn about the federal legislative issuesimpacting the agent community. Thenthey visit lawmakers in the Capitol tovoice their opinions and convey theircombined agenda.

Every year DAIAB meets with eachmember of Delaware’s Congressionaldelegation, and the 2010 conferencepromises more of the same.

While each year’s convention is billed asa must-attend event, this year isespecially critical given the laundry list oflegislative issues that could impactagents’ daily operations. These include:

� the future of health care and therole agents play in delivering healthinsurance to their clients,

� the returning focus to possiblefederal regulation of insurance andthe creation of a Federal InsuranceOffice,

� the chronic, short-termreauthorizations of the NationalFlood Insurance Program and

� the looming threats to drasticallycut funding to the crop insuranceprogram.

Attending the National LegislativeConference and Convention offers anopportunity to learn more about theissues affecting the industry and to meetone-on-one with policymakers.

Missed this year’s registration?Then mark your calendar forApril 13-15, 2011 and plan to attendnext year’s conference.

Agents to descend on Washington, D.C.for annual legislative conference

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

[ 6 ]

CURTIS M. PEARSALL,CPCU, AIAF, CPIA

Curtis M. Pearsall contributed

this article on behalf

of Utica Mutual Insurance

Company in Utica, N.Y.

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 Errors &

Omissions coverage, contact

IA&B at (800) 998-9644 or by

e-mail at iab@iabgroup.com.

2010: THE YEAR TO IMPROVE YOUR AGENCY… FROM AN E&O STANDPOINT

Primary Agent | February 2010

As we begin another year, it’sa good time to reflect on whatyou need to do to be moresuccessful and to reduce thelikelihood of an E&O claimbeing presented against youragency.

While E&O frequency hasbeen down for the lastnumber of years, there aremany reasons to suggest thatE&O claims frequency is goingto rise. By taking some keysteps now, you can protectyourself more effectively.

One of the leading indicatorsfor an increase in claimsfrequency is the deteriorationin carrier results during thissoft market. Some recentfeedback from industrygroups seems to suggest thatwhen the final profit numbersare in for 2009, they will notbe pretty. As carriers reviewand address these results,many may take somesignificant underwriting/rateactions. How your agencydeals with these actionsis a key.

Here is one area that, ifdiscussed openly andimplemented effectively, couldmake a noticeable difference.

At the next staff meeting,dedicate some time todiscussing E&O. Specifically,ask each staff person what hethinks is his E&O exposurewithin the agency. For some,this is going to be very easy.There is no doubt that CSRsand producers generally knowand understand their roleand the exposure associatedwith it. But how aboutreceptionists and claims staff?They may not totallyunderstand that what they do(or in some cases, don’t do)can result in an E&O claimagainst the agency.

Examples:

� A direct bill client comesinto the agency andproceeds to give thereceptionist money forher auto coverage. Seemsfairly harmless. But whatif the policy was cancelledyesterday? By the

receptionist taking thepremium, the client couldargue that she assumedeverything was taken careof and that coverage wasin effect.

� An agency claims persondoesn’t send a claim tothe carrier, assuming itwasn’t covered, only tofind out that it wouldhave been covered.

� A staffer sends in aclaim late … potentiallya disclaimer for a latenotice. This is not asfarfetched as it maysound because,unfortunately, it isoccurring moreand more.

It would be beneficial for eachstaff person to identify a list ofactivities (at least five) that hecould do in 2010 that has thepotential to reduce his E&Oclaims exposure and, at thesame time, improve his workproduct and efficiency.

[ 7 ]

Here are some examples to consider:

Receptionists: Based on the exampleprovided, it may be prudent to requestthat the CSR who handles that specificaccount meet with the client before anymonies are exchanged. Anotherpossible improvement could be thatwhen a client calls to request a changein coverage, the receptionist makes itvery clear that the client needs to speakwith the producer or CSR for thechange to be effective.

CSRs/Account Executives: The areashere are numerous as the activity andworkloads are heavy. Consider acommitment to improve accountrounding to ensure that clients areaware of gaps and have theopportunity to secure coverage toaddress those gaps. Or put a greaterfocus on the issues involving Excessand Surplus Lines and the importanceof binding coverage prior to theeffective date, or to ensure thatrenewal policies from E&S carriers arechecked against the expiring coverageto identify any changes. Certainly theissue of dealing with certificateswarrants some involved discussion.

Producers: This is a key area where astrong commitment can pay bigdividends. Do you know what you selland sell what you know? If not, takethe time to educate yourself on theexposures of your clients. They arerelying on you for your expertise andknowledge, so be up to the challenge.The various Exposure AnalysisPrograms (through AMS/Rough Notes,etc.) are excellent resources. (Go touticanational.com for more informationon these.)

Claims: Do you have staff that willmake a judgment call as to whetherthere is coverage or not? What if youdid not promptly handle that claimon behalf of your client? Could theclient suffer additional loss by yourlack of attention?

Marketing: This is a key area that canposition your agency extremely well inyour community. Develop a newsletterthat explains policy coverages,limitations, exclusions, etc. Forexample, a recent article in aninsurance periodical stated that 75percent of women’s diamond rings inthe United States were not insured.Why? Do clients think that the contentssection of the Homeowners’ policy

adequately covers them? What if thestone comes out and is lost? There isno coverage unless it is specificallyscheduled under some type of inlandmarine coverage.

Don’t be afraid to discuss E&O with thestaff. Let them know the major rolethey play in ensuring the future success(production and profitability) throughsolid E&O loss control activities. Goodluck, and let’s all have a great 2010.

G R O U P1844

MI N E R V A

CUM

BER

LAND INSUR

AN

CE

STRONG RELATIONSHIPSPRODUCE RESULTS

Contact Cheryl Oswald at:610-857-9900, ext. 3117 orcoswald@cumberlandgroup.com

There is no bettertime to become partof The CumberlandInsurance GroupTeam. We are nowappointing agents inCentral Pennsylvania.

Commercial and Personal LinesCompetitive CommissionsExceptional Customer ServiceFinancial StrengthExperienced UnderwritersMarketing Support

Celebrating 165 years of service ◆ 1844 - 2009

CoverageC O R N E R

[ 8 ]

JERRY MILTON, CIC

Jerry M. Milton 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.

WHO IS ISO?

Primary Agent | February 2010

Whether you’re an agent, abroker or a company, you areaffected every day of yourbusiness life by anorganization known as theInsurance Services Office. Wecall them ISO for short. Themajority of the insurancecontracts you write have thefollowing printed at thebottom of each page:“Copyright, ISO PropertiesInc.” or “Copyright, ISO RiskServices, Inc.”

Well, who is ISO? Most of usdon’t really know. Notice Isaid “us.” That includes me.

ISO was founded in 1971 asan unincorporated associationof insurance companies. Theassociation was developed bymerging several smallerunderwriting serviceorganizations. At that timethese smaller organizationswere, for the most part, staterating bureaus.

I was an agent in 1971, andprior to that time we agents inAlabama depended on theAlabama Rating Bureau forour rules and rates. I don’t

know what you had inPennsylvania, Maryland andDelaware at that time. Maybesome of you who werearound at that time can sharethat information with me thenext time we see each other.

ISO became a not-for-profitorganization in 1982, andthen a private for-profitcompany in 1997, owned byits member insurers andemployees.

Verisk Analytics, Inc. wasincorporated in Delaware in2008 as a subsidiary of ISO.Verisk made its first publicoffering of stock in 2009, andat that time ISO became asubsidiary of Verisk. VeriskAnalytics, Inc. is a publicly-held company, and its stock istraded on the NASDAQExchange. ISO is consideredits major subsidiary.

ISO is headquartered in JerseyCity, N.J. and has officesthroughout the United States,along with internationaloperations offices in theUnited Kingdom, Israel,Germany, India and China. It

employs approximately 3,500people worldwide. Thecurrent chairman, presidentand CEO is Frank J. Coyne.

How does ISO produceincome? The companyprovides risk-related servicesto its clients. These clientsinclude insurers, reinsurers,agents, brokers, self-insuredentities, risk managers andinsurance regulators.Obviously the services are notfree. In the fiscal year endedDecember 2008, ISO’srevenues were reportedlyover $893.6 million.

ISO’s databases contain morethan 11 billion (yes, that’s a“b”) detailed records relatingto insurance and riskmanagement. The services thecompany provides to itsclients include:

� statistical, actuarial andclaims data forunderwriting;

� development ofstandardized insurancepolicy language;

[ 9 ]

� information about specificproperties and communities;

� fraud identification;

� information for marketing, losscontrol and premium audit;

� catastrophe modeling systems;

� rating and underwriting rules;

� motor vehicle records;

� litigation and regulatory support;

� mortgage fraud analytics;

� real estate;

� restoration and remodelingestimation services and software;and

� rates, underwriting and policy-management systems for allcommercial and personal linesinsurance.

ISO is constantly changing the wordingof its insurance forms. You know that.When the company makes thesechanges, it relies on the advice of insurerand reinsurer clients and others, such asthe members of the Casualty ActuarialSociety. Certainly no one consults withyou or me.

Maybe we should buy a few shares ofVerisk Analytics, Inc. Then we can writeISO as a stockholder, rather than as adisgruntled agent, to complain aboutsome of its changes.

Y’all take care!

805 N. Front St., Harrisburg, PA 17108

Success

YourUnderwriting

SM

GIVING PROPERTY OWNERS CONFIDENCE TO BUILD UPON.

Years ago, Mike Serluco had a national company insuring his growing property development business. “But they go the way the wind blows,” he says. Then Independent Agent Don Kingsbury, of Christian Baker Insurance Agency, Lemoyne, suggested a local insurer with a stronger commitment to building owners – Millers. “It’s very, very important for an investor to have an insurance partner, and that’s what I call Millers,” Mike says. With the few insurance claims he’s had, “Bing, bam, boom – it’s done and taken care of.” Adds Kingsbury, “With Millers, they actually listen to what you have to say. And not only do they know this industry, they offer package policies at a good price, and they back it up with excellent claims service.” Smart business people, independent agents and Millers...truly partners in protection.

POLITICS

Political analysts have longlooked to mid-termelections, or ones occurringbetween presidentialelections, for many things:gauging the president’sapproval, determining theelectorate’s satisfaction withthe party in control ofCongress, and an earlyindicator of how things mayshape up in the nextpresidential election, just toname a few.

Election 2010: Looking intothe crystal ball

[ 11 ]

Primary Agent | February 2010

This year’s midterm elections will likely beanalyzed for all of those reasons and more,with shifting political landscapes and a list ofhighly charged legislative issues headliningthe way.

The following pages showcase some of the many statewideand federal races IA&B members should watch in 2010.

GovernorMaryland

The races for governor and lieutenant governor appear to bea lock for incumbents Martin O’Malley and Anthony Brown,both Democrats.

O’Malley will face competition in his party’s Septemberprimary from Baltimore teacher Richard Jaffe, who ran for thesame office in both 2002 and 2006, and possibly from GeorgeOwings, the former state delegate and state Secretary ofVeterans Affairs.

The field is wide open on the Republican side. The long list ofpotential candidates includes former U.S. Rep. and Gov.Robert Ehrlich, former Lt. Gov. and current Chairman of theRepublican National Committee Michael Steele, DelegatePatrick McDonough and Delegate Anthony O’Donnell, toname a few.

A preliminary poll released last fall projected O’Malleywinning over Ehrlich and Steele. Should O’Malley be electedagain, it will be his last term, due to the state’s two-term limit.

Pennsylvania

Gov. Ed Rendell will reach the end of his eight-year tenure in2010. If history is to be repeated, a Republican will takecontrol of the governor’s office. Pennsylvania has elected agovernor from alternating parties every eight years since atwo-term limit was implemented in 1968.

However, the political trends have changed starkly in the stateover the past 10 years to favor Democrats. According to 2008voter registrations, Democrats have a 1 million voter edge,and the party has made strong inroads in areas that wereonce GOP strongholds, such as suburban Philadelphia.

Attorney General Tom Corbett is the clear front-runner forRepublicans. The western Pennsylvania native handily wonhis 2008 re-election in an otherwise tough year for stateRepublicans. Since then, he has gained notoriety fromBonus Gate – his investigation into illegal campaign activityconducted in the state legislature. Many pundits agree thathis perceived handling of the indictments may play a role inthe campaign.

T

ELECTIONSCHEDULE

PRIMARY ELECTION

Delaware:Tuesday, Sept. 14

Maryland:Tuesday, Sept. 14

Pennsylvania:Tuesday, May 18

GENERAL ELECTION

Nationwide:Tuesday, Nov. 2

The other Republican in therace is current state Housemember Sam Rohrer, a staunchconservative from Berks County.

The field is much more open forDemocrats. The five potentialcandidates include frontrunners from Allegheny County:current Auditor General JackWagner and County ExecutiveDan Onorato. Wagner hasstatewide name recognition,while Onorato is seen as arising star by many in theDemocratic Party.

Other Democratic candidatesinclude Scranton Mayor ChrisDoherty and former U.S. Rep.and current MontgomeryCounty Commissioner JoeHoeffel. And Tom Knox, awealthy businessman who ranin the 2007 Philadelphiamayoral race, can self-fund hiscampaign for governor.

U.S. SenateDelaware

Following former Sen. JoeBiden’s ascent to the vicepresidency, Gov. Ruth Minnerappointed his then chief-of-staffTed Kaufman to replace himin Congress.

Early in his tenure, Sen.Kaufman indicated that hewould not run in this year’sspecial election to fill theremainder of the term. This setthe stage for a showdownbetween two well-knownpolitical names in the state.

On the Republican side, currentU.S. Rep. Mike Castleannounced in October 2009 his

intentions to vacate his currentseat and run for the Senate.Castle is also a former stateGeneral Assembly member,lieutenant governor and two-term governor.

Opposing him in September’sRepublican primary is ChristineO’Donnell, a marketingconsultant and politicalcommentator who ran againstJoe Biden in his 2008 re-electionbid. O’Donnell lost to Biden bynearly a 2-to-1 margin. DespiteRep. Castle’s entrance into theSenate race, O’Donnell does notplan to drop out.

The Democratic front runner iscurrent State Attorney Generaland son of Vice President Biden,Beau Biden. When he returnedfrom active National Guard dutyin Iraq last September,speculation immediately swirledabout his aspirations to run forhis father’s former seat.

Should Castle and Biden comeface to face in November’selection, the contest will be aclose one. President Obama,buoyed by the presence of JoeBiden on his ticket, tookDelaware with over 60 percentof the vote, and the state as awhole is often viewed as beingsafely Democratic. However,with Rep. Castle’s politicalhistory and name recognition,the Republican has a strongshot at making the racecompetitive.

Whoever prevails will enjoy anabbreviated term, however, andwill have to run again in 2014for a full, six-year term.

Maryland

Incumbent Democratic Sen.Barbara Mikulski is expected torun for re-election, seeking herfifth term. Party opposition inthe primary is not expected, asshe remains fairly popularthroughout the state and haswon previous re-election bidsby margins as large as 30percent. If Mikulski is victoriousin November, she would tie PaulSarbanes as the longest-servingMaryland senator.

Republican opposition remainsscant. Queen Anne CountyCommissioner Dr. Eric Wargotz,lawyer Jim Rutledge andpolitical consultant CorroganVaughn have indicated interestin running.

Pennsylvania

Current U.S. Sen. Arlen Specterinitiated a political free-for-alllast spring when he changed hisparty registration to Democrat,in effect changing allexpectations for his re-electionthis year.

Specter’s move opened up thefield for Republicans, includingformer U.S. Rep. Pat Toomey.Toomey, a strong conservativefrom Lehigh Valley, challengedSpecter during his 2004re-election bid and lost by only1.7 percent. Toomey’s path tothe Republican nomination isclear. What remains unclearis how broadly Toomey willappeal to more moderate votersin the state for November’sgeneral election.

POLITICS

[ 12 ]

Challenging Sen. Specter in theDemocratic primary is U.S. Rep.Joe Sestak and dark-horsecandidate Bill Kortz, who nowserves in the state legislature.

Most polls project Specter likelywill be victorious in May’sprimary election, but numbershave varied in predicting hissuccess over Toomey inNovember. With Democratspossessing a narrow majority inthe U.S. Senate, expect theDemocratic Party to devotesignificant money and resourcesto Specter’s bid.

U.S. House ofRepresentativesDelaware

With Rep. Mike Castleannouncing his plans run for theopen Senate seat, a second seatopened in Delaware’s lone U.S.House district.

On the Democratic side, formerLt. Gov. John Carney, Jr.announced his candidacy.Carney lost his 2008 bid forgovernor to Gov. Jack Markell inthe primary election. Thenomination appears to beCarney’s to lose, as hisopposition is transportationconsultant Scott Spencer.

The Republican field is not asclear. Businessman Fred Cullisalready announced hisintentions to run, and formerstate Sen. Charlie Copelandindicated his consideration.Copeland lost by 22 percent toMatt Denn in the 2008lieutenant governor race.

Early polls indicate that Carneyhas an edge over Spencer, Cullisand Copeland, making this seatone Democrats are eyeing topotentially increase theirmajority in the U.S. House.

Maryland

Most U.S. House districts areexpected to remain safely inincumbents’ hands through the2010 elections. However, alleyes are on the re-election bid

Primary Agent | February 2010

[ 13 ]

WHAT IT MEANS TO YOUMembers must get involved politicallyduring the 2010 election year. Withinsurance and small-businessregulations and reforms in debate, theoutcome of many races will haverepercussions on the industry for yearsto come.

IA&B encourages members to perusethese pages and learn about thecandidates who will appear on theirprimary-election ballot — and thosewho likely will make it to thisNovember’s general election.Education is vital in developingpolitically savvy producers.

And for members who aren’t politicaljunkies, IA&B can do the work for them.With AgentPAC contributions, IA&Bsupports pro-agent legislators andcandidates. IA&B spends considerabletime determining which legislatorsunderstand insurance and small-business issues. And then IA&B workswith them on members’ behalf.(See page 18 for more on AgentPAC.)

Remember, if you don’t getinvolved in politics, politics will getinvolved in your business.

of freshman Rep. FrankKratovil, a Democrat whosurprisingly took theRepublican-leaning EasternShore district in 2008.

At this time, Kratovil’s stiffestcompetition in the generalelection appears to beRepublican Andrew Harris, hisopponent from the 2008 cyclewho is currently serving in thestate Senate.

Pennsylvania

Of the 19 Congressionaldistricts in Pennsylvania, atleast one will have an openseat for the 2010 election.

The one definite open seat isfor the seventh district, whereRep. Joe Sestak is retiring torun for the Senate. The district,also located in thesoutheastern part of the state,has historically been close invoter registration but has beentrending Democratic.

Frontrunners are State Rep.Bryan Lentz, a Democrat, andformer U.S. Attorney PatrickMeehan, a Republican.

The other potential open seatis in the sixth district whichincludes Berks, Chester, Lehighand Montgomery counties.Incumbent Jim Gerlach initiallydropped out of his re-electionbid to run for governor.However, in January he endedhis run for that post, leaving inquestion whether or not hewill now decided to run againfor his congressional seat.Should Gerlach run or not,several other candidates havelined up for the ballot,including Philadelphia Inquirercolumnist Doug Pike on theDemocratic side and StateRepresentative Curt Schroderon the Republican side.Regardless of the result of theprimary election, many willbe watching this race duringthe General Election due tothe area’s close voterregistration numbers.

In addition to the open seats,several incumbent Housemembers will face toughre-election bids. Many aremoderate Democrats beingtargeted by Republicans asbeing too progressive for theirdistricts, including freshmanRep. Kathy Dahlkemper andsophomores Rep. JasonAltmire and Rep. Chris Carney.

One of the few incumbentRepublicans facing aformidable challenge is Rep.Charlie Dent of Lehigh Valley.The anticipated Democratic

POLITICS

[ 14 ]

challenger, Bethlehem MayorJohn Callahan, already hasstarted a strong party-supportedfundraising program. Callahan’sfunding combined with thearea’s political-bellwether statuswill make this a closely watchedrace beyond the state.

State legislatureDelaware

In the halls of the Capitol,Republicans are viewing the2010 midterm elections as anopportunity to regain thenarrow, three-seat majoritythey lost in the state House ofRepresentatives during the2008 election. Democrats pickedup a handful of seats andattained a voting majority of24 to 17.

Democrats are also looking tomaintain their majority in theSenate that they strengthenedduring the 2008 election cycle.However, with last summer’sdeath of Democratic SenatePresident Thurman Adams,Republicans tallied one seatback, as party member andformer state Rep. Joseph Boothwon his bid for the vacatedseat. The party balance in theSenate is now 15 Democratsto 6 Republicans.

Delaware’s political districtswill be reapportioned in 2010,so several senators runningfor re-election this year willbe on the ballot again intwo years.

Maryland

All members of the MarylandGeneral Assembly, both in theSenate and House of Delegates,are up for re-election this year.A significant shake-up thatwould alter the balance ofpower is not anticipated.Currently, the Senate maintainsa party balance of 33 Democratsto 14 Republicans, while theHouse of Delegates maintains aparty balance of 104 Democratsto 36 Republicans, with oneindependent delegate whocaucuses with Republicanmembers.

Pennsylvania

Moving back to Harrisburg, in2010 all 203 seats in the stateHouse of Representatives andhalf of the state Senate, or 25seats, will be up for re-election.

The Senate side of the rotundais expected to be the calmerchamber during the upcomingelection cycle. Republicans areexpected to maintain theirmajority, which currently standsat 30 to 20.

The picture on the House side isa different story. Democratshave a narrow 104-to-99majority, and Republicans seempoised to regain the control theylost in 2006 as fallout from the2005 pay-raise vote. Whetherthe three-plus-month budgetimpasse of 2009 will resonate ina similar manner has yet to beseen, but public discontent withthe legislature has left manyincumbents nervous.

In addition, the effect ofAttorney General Tom Corbett’sBonus Gate investigations onthe election remains anotherquestion mark. Needing onlythree seats for control,Republicans are expected tofocus on the southwesternpart of the state, which hasbecome incrementally moreconservative. Conversely, to winback the majority, Republicansmust preserve seats insoutheastern Pennsylvania,where they have beenhemorrhaging control.

Other state seatsDelaware

The state attorney general,treasurer and auditor ofaccounts are all up forelection in 2010. Each has afour-year term.

The race for attorney generalhinges on the aspirations ofincumbent Beau Biden.

For treasurer, Democrat VeldaJones-Potter will seek to holdher post. She was appointed byformer Treasurer Jack Markellafter he was elected governor in2008. Jones-Potter will face stateSen. Colin Bonini, a Republican,in the General Election.

Current Auditor ThomasWagner, a Republican, willalso run for re-election. He hasheld the post for fiveconsecutive terms, making himthe longest-serving auditor instate history.

_________________________

Kari Kissinger is government affairsmanager for IA&B.

Primary Agent | February 2010

[ 15 ]

FEATURED PARTNER:Swiss Re

HEAD OF U.S. AGENTS E&O:Sabrena Sally

COMPANY LOCATIONOverland Park, Kansas

A.M. BEST RATINGA (Excellent)

Platinum Profile

Insurance Agents &

Brokers proudly recognizes

Swiss Re as one of its

Platinum Partners.

IA&B Platinum Partners

dedicate the highest

level of sponsorship to

our organization.

For more than 30 years,agents across America havetrusted Swiss Re to protect their

reputations and assets. Swiss Re isproud to be the endorsed E&Ocarrier of the Big I.

More than 15,000 agencies andbrokers place their trust in us. Inreturn, they’re guaranteed access tothe longevity, financial strength andenduring market knowledge ofSwiss Re.

In Pennsylvania, Maryland, Delawareand Virginia and beyond, we offererrors and omissions liabilitycoverage for insurance agents andbrokers. We have a full array ofE&O solutions for insurance agenciesof all sizes and operations. All comewith the experienced and professional

claims handling and underwritingthat insureds have come to expectand value over the years.

In collaboration with the IIABAProfessional Liability Program, theSwiss Re policy form can providelimits up to $20 million, withdeductibles starting at $2,500.Coverage extensions are available forsales of real estate, mutual funds andsome types of investment products.The policy is widely respected in themarketplace, with a definition ofinsured tailored to your businessrealities, various extended reportingperiod options, and availableadditional coverage for catastropheextra expenses, insurance consultingand expert witness activities. Thecoverage is supported by a claimsteam experienced in handling

agent’s professional liability claims,in conjunction with an extensivepanel of outside counsel. TheUmbrella policy offers theconvenience of higher limits ofliability for premises, auto andE&O exposures, all in one policy.

Swiss Re protects insureds withspecialized needs in niche marketsin the U.S. and Canada. Productsinclude property and casualtyinsurance, professional liabilityinsurance, excess medical expenseand risk management services.Swiss Re has served the primaryinsurance community since 1908and is committed to providingservice, creative solutions andsecurity for its clients.

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 thatstrongly support the independent agency

system and Insurance Agents & Brokers.Thank you for your continued sponsorship.

PLATINUM LEVELBerkley Mid-Atlantic GroupErie Insurance GroupHarleysville InsuranceInsurance Agents & BrokersService Group IncMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupPenn National InsuranceSelectiveSwiss ReThe Main Street America GroupTravelersUtica National Insurance Group

GOLD LEVELOhio CasualtyProgressive

SILVER LEVELAegis Security Insurance CoAmerican Mining Insurance CoCumberland Insurance GroupDonegal Insurance GroupFrederick Mutual Insurance CoHarford Mutual Insurance CoJuniata Mutual Insurance CoMMG Insurance CompanyPrivate Client GroupPSBA Insurance TrustThe Motorists Insurance GroupWestfield InsuranceZenith Insurance

BRONZE LEVELAAA Insurance

Agency Insurance Company

Allied Insurance

Briar Creek Mutual Insurance Company

Builders Insurance Group

Capitol Insurance Company

Chubb Group of Insurance Companies

Companion Property & Casualty Group

Countryway Insurance Company

Encompass Insurance

Foremost Insurance Group

Friends Cove Mutual Ins Company

Goodville Mutual Casualty Company

Grange Insurance Companies

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Mutual Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn Millers Insurance Company

Penn Prime Municipal Insurance

PMSLIC Insurance Company

Reamstown Mutual Insurance Company

Rhoads & Sinon LLP

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Mutual Service Office Inc

The Philadelphia Insurance Companies

Tuscarora Wayne Mutual Insurance Company

UPAC Insurance Finance

Primary Agent February 2010

ASSOCIATION AT WORK

For AgentPAC, IA&B’sstatewide political actioncommittee, 2009 was animportant year. And 2010promises to be just ascrucial and demanding.

AgentPAC builds from2009 accomplishments,sets goals for 2010

[ 19 ]

Primary Agent | February 2010

Looking backDespite ambitious fundraising goals (15 percent higher than2008) and a tough economy, members rose to the challengeand supported AgentPAC in record numbers. In Delaware andMaryland, contributions surpassed IA&B’s goals. And inPennsylvania, they fell just a few percentage points short.

In all three states, significant progress was made in solidifyingthe PAC’s reserves, and IA&B is looking to build upon thisbalance throughout 2010.

Over 50 state legislators – Democrats and Republicans – inDelaware, Maryland and Pennsylvania received support fromAgentPAC. By targeting key legislative leaders and committeechairs who are supportive of IA&B’s legislative agenda andwho are attuned to the concerns of independent agents,AgentPAC used its financial resources as effectively andefficiently as possible.

____________________________________________________________

Significant progress was made in solidifyingthe PAC’s reserves last year.

____________________________________________________________

Delaware

A small fraction of members contributed to the PAC last year,but the average contribution rate was impressive, coming inat about $170 per person. Total: $3,500.

Maryland

Approximately 60 members gave to the PAC in 2009. Sixobtained the Governor’s Club, 12 reached the Senate Leveland 20 the House Level. Total: $10,700.

Pennsylvania

Over 190 members contributed to the PAC last year, and 20of them reached the Governor’s Club. Nearly 25 attained theSenate Level, and over 90 were included in the House Level.Total: $30,000.

Looking aheadWhile 2009 was critical for establishing the building blocks ofAgentPAC, 2010 will be even more crucial as elections forgovernor, U.S. senator, U.S. House of Representatives, and thestate House and Senate will occur. AgentPAC, as a state-focused committee, will channel its resources to thoserunning for the state House and state Senate.

Once again, AgentPAC is looking to increase its fundraisinggoals this year, aiming to raise approximately $4,000 in

In 2009, IA&B introduced new

levels of recognition for

contributors.

Governor’s Club: $500+

Senate Level: $250-499

House Level: $100-249

Delaware, $12,500 inMaryland and $37,500 inPennsylvania.

Even by state-capitalstandards, AgentPAC is not alarge political actioncommittee, but that does notmean agents are left withouta voice in the halls of thestate Capitols. Each yearIA&B works to buildAgentPAC so that, ultimately,it can become a go-to,powerful PAC.

During 2010, keep an eye outfor AgentPAC literature. Aletter will arrive during

February to kick off theannual fundraising campaign.The mailing will also includethe AgentPAC 2009 AnnualReport, which containsinformation on howAgentPAC dollars were spentand recognizes our generouscontributors. Also, rememberthat AgentPAC information isincluded in your annual duesrenewal, making it easy tosupport AgentPAC when youare making your yearlycommitment to IA&Bmembership.

ASSOCIATION AT WORK

[ 20 ]

Glance at EventsDate Topic Location

2-4 L&H Licensing Mechanicsburg, Pa.

3 Legal and Ethical Responsibilities of Insurance Personnel seminar Hagerstown, Md.

4 Legal and Ethical Responsibilities of Insurance Personnel seminar Columbia, Md.

9-11 P&C Licensing Mechanicsburg, Pa.

10 CISR—Personal Auto Scranton, Pa.

16 CISR—Agency Operations Mechanicsburg, Pa.

17 CISR—Personal Auto Baltimore, Md.

William T. Hold Seminar York, Pa.

17-20 CIC—Personal Lines Harrisburg, Pa.

18 CISR—Personal Auto Philadelphia, Pa.

William T. Hold Seminar Lehigh Valley, Pa.

23 CISR—Personal Auto York, Pa.

24 CISR—Personal Auto Lehigh Valley, Pa.

25 CISR—Personal Auto Wilmington, Del.

F E B R U A R Y C A L E N D A R

Every contribution, no

matter the amount, can

make a huge impact in

catapulting AgentPAC into

political prominence.

_______________________________

Over 50 state legislators —Democrats and Republicans

— in Delaware, Maryland andPennsylvania received support

from AgentPAC in 2009.

_______________________________

One interesting tidbit toremember as we movefurther into 2010 and work toachieve our AgentPACfundraising goal: If everylicensed agent who is amember of IA&B gave just $10for the year, we would raisenearly $6,000 in Delaware, over$23,000 in Maryland and nearly$85,000 in Pennsylvania.That goes to show that everycontribution, no matter theamount, can make a hugeimpact in catapultingAgentPAC into politicalprominence.

[ 21 ]

ASSOCIATION AT WORK

Health care reform. Federal regulation.Licensing standards.Education requirements.The legislative issuespoised to affectindependent agents aremany. But thanks to thesupport of the John T. FretzInsurance Agency andother generous memberagencies, IA&B’s politicalaction committee,AgentPAC, is betterequipped to protect agents’ interests.

Agency staff stands behindAgentPAC

Above: John T. FretzInsurance Agencyemployees – andAgentPAC contributors —gather outside of theirSouderton office.

Right: Clemens’ support ofIA&B’s AgentPAC ignitedhis staff’s interest in theAgency PAC Challenge.

[ 23 ]

Primary Agent | February 2010

It’s greater than being a sales person,” said M. ScottClemens about independent agency personnel’spolitical involvement. “It’s the bigger picture.”

That attitude is contagious at Clemens’ agency, John T. FretzInsurance in Souderton and Lansdale, Pa. In the spring of2009, the 24 employees chose IA&B’s AgentPAC as a recipientof their charitable-giving campaign that benefits a differentorganization each month.

The impetus was IA&B’s inaugural Agency PAC Challenge —a competition among member agencies to raise funds forAgentPAC. The Board of Directors initiated the campaign afterseeing the results of IA&B staff’s internal fundraising tobenefit AgentPAC.

“I shared my interest in the challenge with the staff, and theyran with it,” shared Clemens.

Ran with it, indeed. The staff achieved 100 percentparticipation and raised more per employee than anyother agency.

“The employees’ understanding of the AgentPAC mission isevident by their generosity,” said Kathleen Glattly,chairwoman of the IA&B Service Group. “They know thatthey’ll reap the benefits of our PAC’s efforts.”

Clemens, who has participated in national lobbying events inWashington, D.C., has seen first hand the effects lobbying anda well-supported PAC can have.

“What I have observed of those in government is that they arewell-meaning but under-informed,” he explained. “The valueof PAC is information.”

AgentPAC takes independent agents’ collective voice toDover, Annapolis and Harrisburg. It allows IA&B tosupport candidates who understand independent agents’interests. In turn, when elected, these politicians are morelikely to hear agents’ concerns during the legislativesession.

I About theAgency PAC Challenge

IA&B’s spring 2009 Agency PAC

Challenge pitted member

agencies against one another in

a competition to raise money for

AgentPAC. The top three

finishers, based upon average

contribution rate per employee,

follow:

1. John T. Fretz Insurance

Agency – Souderton

and Lansdale, Pa.

2. Barr’s Insurance Oil City –

Titusville and Franklin, Pa.

3. Hartman Agency –

Williamsport, State College

and Duncannon, Pa.

“

________________________________

_Read more about AgentPAC

and national politicalaction committees byvisiting iabgroup.comand choosing PoliticalAction Center from the

left-hand menu.

_________________________________

ENHANCE YOUR BOTTOM LINEWITH TECHNOLOGY

PATRICIA ALEXANDER,CIC

Patricia Alexander, CIC, is a

consultant, coach and mentor

with many years of experience

in retail agency and MGA

settings. She may be reached

at pat@patalexander.com.

Alexander developed this

article for the Agents Council

for Technology (ACT), part of

the Independent Insurance

Agents & Brokers of

America. ACT’s Web site is

www.independentagent.com/act.

This article reflects the views of

the author and should not be

construed as an official

statement by ACT.

Primary Agent | February 2010 TechnologyU P D A T E

[ 24 ]

For years agencies have beenarming themselves with moreand more technology.Technology is an essential toolto enable you to accomplishyour daily tasks, accumulatedata and provide the agencywith critical information aboutits business. However, manyagents feel little satisfactionwith their systems and do notsee their return oninvestment. In my work, Ihave found the commonreasons for this to be lack of

full utilization, neglecting toclearly define for employeeshow the systems are to beutilized and failing to have theproper systems in place.

If the use of the technology isnot defined and not usedproperly, then the agencydoes not have the informationit needs and desires. My goalin this article is to discuss whatyou currently have and howto better use it. Each of theareas I will discuss requires

minimal investment but willgive you a big return. In manycases you have already madethe investment; it is just amatter of using the technologyto its fullest potential.

Agency automationfrustrations and timewastersEverywhere I go, I hear fromagency owners, managersand staff — as well as read inagent surveys — that the twomajor agency automation

frustrations are learning and usinginsurance carrier proprietary systemsand multiple user IDs and passwords.I am also told that the two primaryagency automation time wasters areduplicate data entry and proprietaryprograms/ software products.

These issues are real and cause aripple effect throughout the agency. Iconsider the two “frustrations” timewasters as well. Time wasters causebacklog and inefficiencies. It seemsthe backlog is always looming.Juggling backlog and the dailydemands of servicing customers andmarketing business causes misseddetails and deadlines.

Your customers increasingly expectimmediate answers to theirquestions. Most direct writers havethis capability and use it to competeagainst you. Meanwhile, it often takesyour staff well over an hour to securequotes at carrier Web sites on thesimplest of risks.

Use Real TimeUtilizing Real Time can help level thecompetitive playing field for you.Real Time is the ability to click on abutton from a client file in youragency management system orcomparative rater for immediateaccess to carrier information on thatclient. The transaction may be aquote, billing inquiry, claiminquiry/loss runs, policy view,endorsements or a request forinformation. This approachprovides a single workflow forservicing or quoting.

Visiting the insurance carrier Web siteand entering information there, andthen entering information in theagency management system isduplicate entry, a costly “timewaster” and a huge drain on thestaff’s valuable time. In the case ofsecuring quotes, the user is often

visiting multiple carrier Web sitesand re-entering informationnumerous times.

Real Time from your agencymanagement system is typicallyabout twice as fast as doing thetransaction on a carrier Web site.Using Real Time gives your agencyback time — time that you can use toprovide proactive customer service,round accounts, sell new business orgrow without adding staff. Real Timeallows you to respond to customerswhile they are on the phone. Moretime regained. Telephone tageliminated. More satisfied customers.

Real Time will provide you thesebenefits:

� Automatically logs you on andnavigates you directly to theclient at the insurance carrierWeb site

� Reduces duplicate data entry

� Provides you with a consistentworkflow and simplifiesstaff training

� Provides you with E&O trackingvia the activities created inyour agency managementsystem.

As you seek to identify and eliminateunnecessary costs and redeploy stafftime to more productive uses,consider your staff’s workflow today.Are some of them using carrier Websites, others agency managementsystems or a combination of both?

Consider the following examples:

Some users perceive that usingthe carrier Web sites is fasterbecause they are in constantmotion working through the site.However, when agencies actually doa time study comparing Real Time toWeb site transactions, they typicallysee significant time savings. Mypersonal experience in observingusers is that the Real Time solutionstake one-half to one-third of the timeneeded to achieve the same resultsby going direct to the carrierWeb site. ASCnet’s and AUGIE’sReal Time studies reach essentiallythe same conclusion.

Carrier Web site:

1. Find login for Web site

2. Log into Web site

3. Find the customer

4. Find needed info

5. Log activity in your agencymanagement system

Agency ManagementSystem:

1. Start with customer;Real Time logs you intocarrier Web site and takesyou right to customer

2. Find needed info

3. Activity automatically opensin agency managementsystem for completion

[ 25 ]

The following illustration from theASCnet study shows the significanttime and cost savings that can beachieved.

Consider how you and your staffcould use this found time. If youtranslate this into dollars, the agencywould save $2,400 in processing time.Multiply this number by the numberof CSRs and other staff that areprocessing work. Wow! This can bebig. These resources could beredirected to spend more time onproactive client serviceand cross selling.

You are asking, “What does Real Timecost me, the owner/manager?” Inmost cases, this function is already apart of your agency managementsystem. It’s paid for! It just needs to beactivated. You will find a really helpfulAgency Real Time ImplementationGuide and other resources atwww.getrealtime.org.

Clearly define howemployees are to use yoursystemsI find that most agencies don’t use allof the functionalities of their agencymanagement system. There may notbe written definitions provided to thestaff for the information required oneach customer and/or policy andwhere it is to be kept. All users don’tuse the system in the same way. Yourcustomer data could very well residein the following places rather than inyour agency management systemwhere it should:

1. File folders or other pieces ofpaper

2. In the producers’ and the CSRs’heads

3. In Outlook or other e-mailprograms

4. In date books and on calendars

5. Flash drives, discs, laptops,personal computers, etc.

It is critical to get your data undercontrol so that all of your employeeshandle it in a consistent way, keepingit in a common place in your systemwhere everyone can find it. Failure todo so creates significant E&O andclient-privacy issues. Bottom line:Define how employees are to use allaspects of your agency managementsystem and other technology. Monitorthis and hold everyone accountable.

Use Download for personaland commercial linesAnother under-utilized function in theagency management system isDownload. Download provides for theroundtrip of data back to the agencymanagement system following a RealTime transaction. Many users say thedrawback to Download is that itoverwrites their underwritinginformation. In many cases, this is notreally true. While the most currentview/version of the policy may notshow this information, it can stillusually be found on the originalapplication. Do you really need theunderwriting information on a dailybasis to service the customer or onlyat re-marketing time?

Assess your real needs and make aneducated move to this functionality.Each time data is re-keyed results inthe ineffective use of time and thechance for a clerical error that couldcreate an E&O exposure. Having theDownload in your system alsofacilitates the next Real Timetransaction because the policy dataexactly matches the carrier’s data.

Fully utilize your system’sWord merge functionOne of the most under-utilizedfunctions in your agency managementsystem is the Word merge function.Yes, everyone uses it. But is it usedeffectively, consistently and to itsmaximum? Maintaining a robustselection of appropriate documents inyour agency management systemprovides you better control of thequality of your agency’scommunications, as well assignificantly reduces redundant entriesand saves time.

TECHNOLOGY UPDATE

[ 26 ]

Agency example ofReal Time savings:

� CSR @ $20/hour (40K)

� 10 Real Time transactions/day(200/month)

� Four minutes using carrierWeb site v. one minute usingReal Time transaction via agencymanagement system

� Annual time saved — 15 days!

� Annual CSR savings — $2,400!(Source: www.ascnet.org)

Your agency’s action planMy message here is maximize what you have:

1. Use Real Time through your agencymanagement system

2. Download — If you are not doing this, you should lookat it again. If you are only doing personal lines, youneed to look at commercial lines, especially for small tomid-size accounts

3. Capture all customer/policy data in your agencymanagement system

4. Use your agency management system to itsfullest capacity.

Also consider implementing multi-carrier rating and dual ormultiple monitors as additional low investment technologiesthat can provide a quick and significant boost to productivity.

Use a systematic, controlled approach to deciding onsystems and processes. Training and implementationneed to be well planned and managed. Don’t try to do

everything at once. Agencies must monitor staff’s usageof Real Time and require usage. Push your insurancecarriers to add more Real Time functionality and to improvewhat they currently provide where needed. Real Timerepresents your future and is a superior workflow thatwill keep you competitive. We finally have the opportunityto realize the agents’ vision of single-entry, multi-company

interface as Real Time continues to evolve and tobe more broadly used.

[ 27 ]

84th Annual

Pittsb

urg

h I D

ay

Thursday, April 22, 2010Hilton Pittsburgh

Doors Open 8:00 a.m.

� CE Credits will be Available� 80+ Exhibitors� Grand Prizes� Cocktail Reception� And Much More!

Contact the Insurance Club of Pittsburgh

for More Information or to Register

Phone: (412) 489-5626Email: icp@insclubpgh.comWeb: www.insclubpgh.com

YOU MUST REGISTER TO ATTEND!

Insurance Industryof Champions

Technology is key to increasing

productivity between agents and

carriers. The Technology section of

iabgroup.com, offers a collection of

articles and resources to bring you up

to speed with this ever-changing

aspect of your business.

Cumberland Insurance Group . . . . . . . . . . . . . .7

EMC Insurance Companies . . . . . . . . . . . . . . .IFC

IA&B Partners Program . . . . . . . . . . . . . . . . . . .17

IA&B Series Ads . . . . . . . . . . . . . . . . . . . . . . . .IBC

Insurance Club of Pittsburgh . . . . . . . . . . . . . .27

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

Knightbrook . . . . . . . . . . . . . . . . . . . . . . . . . . .IBC

Millers Mutual Group . . . . . . . . . . . . . . . . . . . . .9

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .21

Penn National Insurance . . . . . . . . . . . . . . . . .13

Preferred Property Program . . . . . . . . . . . . . . .21

Ad Index

ClassifiedA D V E R T I S E M E N T S

AGENCY MANAGER

Manage and grow mid-size agency,primarily personal lines, located inSoutheast PA. Equity position witheventual purchase opportunity.Send resume in confidence to:Editor #202, PO Box 2023Mechanicsburg, PA 17055.

SOUTHEAST PAPRODUCERS & AGENCIES

Professional agency since 1926 locatedin Feasterville, Bucks County, Pa.Call for confidential informationand a review of our services.Contact Ray Reinard at(215) 375-8600, Ext. 119.

If you would like to place aClassified Advertisement, simplyfax your ad on company letterheadto (717) 795-8347, and we will takecare of the rest.

Strange Bedfellows

Where some may see insurance andpolitical campaigns as unrelated, Market RiskSolutions sees opportunity. The Glen Allen, Va.-basedinsurer offers a multi-line, admitted product thatcovers campaigns.

A statewide campaign, for example, employs dozensof staffers who engage in myriad activities.Exposures abound.

Campaigns operate like a small business and,therefore, have the same liabilities. And then there arethe unique exposures related to publishing andspeaking.

Exhibit A: Jackson Browne sued John McCain for usinghis “Running on Empty” song in a 2008 campaign adwithout permission.

One more reason Market Risk Solutions has enteredthe market? No matter the economy, the political showmust go on — along with a steady supply of potentialinsureds.

Source: Insurance Journal

--------------------------------------------------------------------------------------------------The Last & Least column is dedicated to the industry’soddities — from creative claims and kooky coverages,to (tasteful) jokes and strange stories.

Submit yours to iab@iabgroup.com, subject line:Last & Least. The editor will happily protect sources’anonymity upon request.

[ 28 ]

A-Rated Carrier Now AppointingNew Producers in Pennsylvania,

Maryland & Delaware! (More states to be added in the near future.)

� Business Insurance—CPP, BOP Monoline Fire, GL

� Competitive pricing—All LinesMSO rates and policy forms

� Personal lines roll overs will be considered

� Commercial auto for artisan contractors, retailers and wholesalers

� Contractor’s policy rated on number of employees, not payroll

� Internet rating system

� No minimum premium requirement forour producers

� Fast and friendly service for our customersfrom company staff

Knightbrook Insurance Company

P.O. Box 686, 927 West Main Street

Valley View, PA 17983

Office: 215-249-1394

Cell: 215-272-1442

Fax: 215-249-1395

E-mail: richard.riddle1@comcast.net

To get started, please contact Dick Riddle, CPCU

PREMIUM FINANCING FOR YOURCUSTOMERS FROM IA&BUsing IA&B’s premium financing program throughPremium Financing Brokerage (PFB) you can provide yourclients more affordability in managing their insurancepremiums. This IA&B-endorsed program comes as animproved financing solution for you to offer peace ofmind to your personal and commercial lines clientsregardless of account size. Program features include:

� Credit Card Down Payment option

� Interest Rate Guarantee

� Flexible payment terms

� Rapid accessibility to quoting and account servicing

� Minimum account size

Make the most of your IA&B membership and enroll inPFB premium financing.

FOR MORE INFORMATION ABOUT THEBENEFITS OF PFB, CALL (866) 381-6501OR VISIT IABGROUP.COM.

Driving members to distinctionIn Delaware &Pennsylvania

Affiliated with