the tennessee insuror - may/june 2016

8INSURORTHE TENNESSEE

May/June 2016 Vol. 27 No. 3 10

The New DOL Overtime

Rule

48Stats, Facts

& Tips for Growth

Some Perspective

on E&O Claims

www.insurors.org

Already ThereLonestar Frontman Richie McDonald Will Headline the

Insurors of Tennessee 123rd Annual Convention

123rd ANNUAL CONVENTION

OCTOBER 29 -NOVEMBER 1

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contents

INSURORS OF TENNESSEE2500 21st Avenue South, Suite 200

Nashville, TN 37212-0539www.insurors.org

THE TENNESSEE

INSURORVol. XXVII, Number 3

May/June 2016

Phone (615) 385-1898Toll Free: 1-800-264-1898Email: [email protected]

Editor: Charles T. Bidek, CPCUPublisher: Daniel D. Smith Jr.

INSURORS OFFICERSPresident ............................. Christie Reeves, CIC, CPCU, CPIWImmediate Past President ......................... Cindi Gresham, CICIIABA National Director ......................................... Lou Moran IIIVice President, Region I ..................................... Chris Allison, CICVice President, Region II ................................................... Joe Hunt VP, Region III and President Elect ................ John McInturff IIITreasurer .............................................. Battle Bagley III, CIC, CPASecretary ...................................................................... Rush PowersDirector, Region I ....................................................... Portis TannerDirector, Region I ............................................ Stephen MastersonDirector, Region I .......................................................... Tim RobertsDirector, Region II ....................................................... Chip FridrichDirector, Region II .................................. Matt Swallows, CIC, CRMDirector, Region II ................................................. Steve CopelandDirector, Region III ..................................................... Kevin OwnbyDirector, Region III .................... Kym Clevenger, CPCU, CACWDirector, Region III .................................................... Eric CampbellYoung Agents Chairperson .................................. Brent Chance

ADVERTISINGDisplay advertising rates, deadlines and specifi-cations may be obtained by writing to Insurors of Tennessee, 2500 21st Avenue South, Suite 200, Nashville, TN 37212, calling 615.515.2601, e-mailing [email protected] or online at

www.insurors.org

The Tennessee Insuror is provided to all Insurors of Tennessee members and associate members

as a member service.

3

features

departments

8 The New DOL Overtime Rule

10 Stats, Facts & Tips for Growth

12 Are You Ready for Voting Season?

14 Daniel Learns About Ins.: Stick to Your Guns Don’t Misfire on Insuring Firearm Collections

48 Some Perspective on E&O Claims

21 From Your President Reflections From the Capital

23 From Your IIABA National Director No “Typical” Day for An Independent Agent

25 From Your CEO So, When is the Next Election?

29 Education Calendar

31 Government and Legal Affairs

37 Programs Spotlight New Agency Employee Resources

39 Company Spotlight ACUITY

51 Meetings

53 Member Tips Disability: A Gamble Worth Taking?

4 Already There Lonestar Frontman Richie McDonald will Headline Insurors Convention

4 The Tennessee Insuror

Richie McDonald was born on February 6, 1962 in Lubbock, Texas. A lifelong lover of country music, he began performing in Nashville at Opryland USA. It was there that he met fellow Texans Michael Britt, Randy “Keech” Rainwater, Dean Sams and John Rich. The group founded the band Texassee in 1992, before changing their name to Lonestar. Lonestar signed to BNA Records in 1995, and with McDonald as lead vocalist, they released seven studio albums, a Christmas album and a greatest hits package.

Lonestar charted more than 20 singles on Billboard’s “Hot Country Songs,” including 9 that reached Number 1; “No News,” “Come Cryin’ to Me,” “Amazed,” “Smile,” “What About Now,” “Tell Her,” “I’m Already There,” “My Front Porch Looking In,” and “Mr. Mom.” “Amazed” also charted at Number 1 on the Billboard Hot 100, becoming the first country song to do so since “Islands in the Stream” acheived the feat in 1983.

McDonald left the band in 2007, pursuing a solo career that saw him chart twice as a guest vocalist on other recording artists’ songs, in addition to releasing two independent albums and four solo singles. He rejoined the Lonestar as the lead vocalist in 2011, helping the group write, record and release two new studio albums – Life as We Know It in 2013 and the newly released Never Enders, which debuted in the Top 50 in the Billboard U.S. Country album chart and features the title track as their current single.

Already There

Lonestar Frontman Richie McDonald Will Headline the Insurors 123rd Annual Convention

A Well-Known Talent in the Country Music Industry

Richie McDonald has long been one of music’s most accomplished and wide-ranging talents. Recognized as one of country’s best singers and a polished and engaging entertainer, McDonald is the face and voice of Lonestar, ranked among the genre’s preeminent groups. As one of the industry’s most successful songwriters, he has penned some of the era’s most memorable songs and earned a mantle full of awards and nominations.

The list of accomplishments McDonald brings is among

McDonald is considered one of the preeminent singers, performers and songwriters of the Country music genre

5The Tennessee Insuror

all intertwined and I don’t think I could do one without the other. Still, I feel like it all starts with the song, and the rest will take care of itself.”

“Nobody said it was going to be easy,” he says with a characteristic smile. I think the great thing is I do have relationships I’ve built over the years. It’s nice to go into a radio station and see familiar faces and not feel like a total stranger.” He is renewing those relationships as an artist extending his impact on the musical genre he loves, and a family man deepening his ties at home. He currently lives near Murfreesboro with his wife, Lorie and their three children. As he carves out the proper balance between home and road, he is looking forward to the joys and thrills of that connection with his audience. Being on stage is a thrill that never gets old for any performer, and for Richie McDonald, it is one he can see both through his windshield and in his rear-view mirror. “I’m grateful every day,” he says, “for the chance to continue to do something I love so much.”

Insurors 123rd Annual Convention Performance

Richie McDonald will perform live for attendees at the Insurors of Tennessee 123rd Annual Convention, taking place October 29th - November 1st in Nashville. His concert will be on Sunday evening, October 30th at the Ford Theatre inside the Country Music Hall of Fame and Museum. He will perform many of his hits from Lonestar as well as some of his solo material.

music’s most noteworthy. His is the voice behind songs like “Amazed,” “Smile” and “No News” and the pen behind songs like “My Front Porch Looking In” and “Let Them Be Little.” He has earned six gold and platinum albums, several CMA and ACM awards as well as BMI awards for songwriting. In writing and singing “I’m Already There,” he was responsible for a song embraced so warmly by the military and their families it became an unofficial anthem for U.S. troops serving the Middle East.

“That has to be the most rewarding part about writing songs,” he says, “when you can actually see the effect it has had on other people’s lives.” In addition to his group and solo work, Richie has had a big role and writing and recording with other respected country artists. He sang background vocals on Mindy McCready’s 1997 single “Maybe He’ll Notice Her Now,” which reached No. 18 on the Billboard country charts. He has also co-written singles for other country music artists, including “She’s Always Right” by Clay Walker, “Jimmy’s Got a Girlfriend” by The Wilkinsons, “Let Them Be Little” by Billy Dean (which Lonestar itself also recorded), “Coalmine” by Sara Evans, and “Once a Woman Gets a Hold of Your Heart” by Heartland.

The Second Act of a Career After more than twenty years of success in Country music, Richie is finally finding some balance between being an artist and building a life and career. “I feel like I have reached a crossroads in my personal and professional life,” he says. “I want to have a better balance and spend more time with my family and yet keep being an artist, hopefully making music that can really make a difference in people’s lives.” Richie also released a Christian record (“Something I always wanted to do and another side of me the fans get to hear”).McDonald is embracing as strongly as ever the wide-ranging nature of his musical talents. “Songwriting, recording and live performance are all connected for me,” he says. “My passion is writing, but when I write a song and get to record it myself, it means that much more to me because then I get to perform it. I think they’re

The current Lonestar lineup features McDonald on lead vocals, along with Michael Britt, Keech Rainwater and Dean Sams.

McDonald released Slowdown, his

second solo album, in 2010. This album included “How Do I Just Stop”, which

peaked at number 51.

McDonald released Christian album “I

Turn to You” in 2008. It peaked at number

6 on the Billboard Top Christian Albums

chart.


In addition to our special guest entertainment, the convention will feature the largest tradeshow for independent agents in Tennessee; special guest speakers including Vaughn Graham of the Big “I” Executive Committee; networking and social functions; golf at Richland Country Club; a special Government Affairs session and a unique wine collection insurance course at City Winery Nashville.

For more information, or to register now, please visit www.insurors.org/IOT/Convention/IOT/Convention/IOT_Convention_Home.aspx. u

123rd ANNUAL CONVENTION

OCTOBER 29 -NOVEMBER 1

NASHVILLEJOIN US AT THE OMNI IN NASHVILLE FOR:

EXHIBITS • NETWORKING • ENTERTAINMENT

EDUCATION • AND MORE...

ONLINE REGISTRATION IS NOW OPENVISIT INSURORS.ORG TO

REGISTER NOW

The beautiful Omni hotel in the heart of downtown Nashville will be the host venue for this year’s convention

The Ford Theatre inside the beautiful Country Music Hall of Fame

Picturesque Richland County Club will host our golf outing


Directionthere when it matters most there when it matters mostthere when it matters most

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Unlike many others in the industry, Donegal has no interest in any other distribution channel. Instead, we focus our energy on consistently delivering greater value to our agents.

Staying true to our chosen course of supporting the independent agency system… another way Donegal is “There When It Matters Most.”

To learn more visit www.donegalgroup.com or call Bill Anderson at 800-277-7442 ext. 3418.


The following article initially appeared in the March issue of IA magazine.

Last week, the Department of Labor (DOL) finalized a rule that will have a significant impact on many Big “I” agencies and their business clients.

The DOL rule updates a regulation that exempts certain em-ployees from overtime and minimum wage requirements—commonly referred to as the “white-collar” exemptions. The new rule will require employers to pay overtime to many employees who were not previously entitled to it. In order to comply with the new rule, which is set to take effect on Dec. 1, 2016, employers should review and adjust employee salaries and overtime eligibility status.

In response to numerous questions about the rule, the Big “I” has prepared a Q&A document that summarizes the rule changes and provides information specific to insurance agen-cies regarding how the changes interact with current federal law under the Fair Labor Standards Act. The DOL has also is-sued various guidance documents related to the rule.

The New DOL Overtime Rule

Questions, Answers and Concerns - Oh My! by Jennifer Webb, Big “I” Gov. Affairs Counsel

In short, under the rule:

• For any employee who is classified as exempt—does not require overtime pay—under the administrative, execu-tive, professional or computer “white-collar” exemptions and who makes less than $47,476, employers must ei-ther re-classify them as non-exempt—requires overtime pay—or raise their salary over the threshold. The $47,476 threshold is a 100% increase from the current $23,660.

• Nondiscretionary bonuses and incentive payments, in-cluding commissions, can satisfy up to 10% of the $47,476 salary threshold.

• Any employee who is properly classified under the “high-ly compensated employee” exemption must earn at least $134,004 in total compensation. The $134,004 threshold is a 34% increase from the current $100,000.

• Starting in 2020, both the $47,476 and $134,004 thresh-olds will be automatically updated every three years. The thresholds are expected to reach $51,168 and $147,524, respectively.

In addition to providing assistance to Big “I” members on the


Advocacy efforts will continue, including the association’s support of S. 2707 and H.R. 4773, the “Protecting Workplace Advancement and Opportunity Act,” by Sens. Tim Scott (R-South Carolina) and Lamar Alexander (R-Tennessee), and Reps. Tim Walberg (R-Michigan) and John Kline (R-Minneso-ta). The legislation would halt the current rule and forbid the DOL from re-proposing it unless it meets certain conditions, including protections for small businesses. Congress is also considering options to halt the rule under the Congressional Review Act, which allows the U.S. Senate and House of Repre-sentatives to vote on a joint resolution of disapproval to stop a federal regulation.

The Big “I” will continue to actively support legislative efforts ahead of the December 1st effective date. However, any suc-cessful legislation is likely to face a Presidential veto. The Big “I” Q&A document on the rule may be downloaded at http://www.iamagazine.com/docs/default-source/Legislative-Ac-tivity/dol-overtime-q-and-a.pdf.

About the Author

Jennifer Webb is the Big “I” Government Affairs Counsel. Webb joined the association’s bipartisan lobbying team in 2015 and primarily serves as a liai-son to Democrat congressional offices. She also as-sists in formulating federal policy positions. She may

be contacted at [email protected]. u

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substance of the new rule, the association continues to advo-cate before the Obama Administration regarding the nega-tive impacts of the rule as implementation moves forward. The DOL has made a number of adjustments since its first pro-posal, though the Big “I” remains concerned about the impact the rule’s provisions will have on member agencies.

When the DOL first proposed the update to this rule in the federal register in July 2015, the Big “I” submitted written comments to the DOL and met with the Administration to convey its concerns. Big “I” and member advocacy helped lower the salary threshold from $50,440 to $47,476; extend the time between salary threshold updates from one year to three years; extend the time for employers to comply with the threshold updates from 60 days to 150 days; change the mea-sure the DOL uses to set the salary threshold to a statistic that better reflects lower cost-of-living regions; and, for the first time, permit the inclusion of commissions to satisfy up to 10% of the salary threshold test. Big “I” advocacy also helped stop potentially burdensome changes to the “duties test.”

At the legislative level, the Big “I” and its member agents have had numerous meetings with members of Congress and pro-vided congressional testimony in relation to this rule. The Big “I” is also actively participating with the Partnership to Protect Workplace Opportunity, a coalition comprised of a diverse group of businesses and trade associations on congressional advocacy efforts.


You can also uncover other topics of interest to your future planning, such as agency corporate structure, employees by number and responsibility, population density of home loca-tion, best sources for recruiting employees and average num-ber of locations. There is a surplus of information available for your use.

Order the study in electronic format ($59.95) or as a hard-copy ($99.95) by visiting http://www.independentagent.com/Resources/AgencyManagement/BestPractices/Pages/Products/2015-Best-Practices-Update.aspx.

Learn more about Best Practices online at http://www.inde-pendentagent.com/resources/agencymanagement/best-practices/Pages/default.aspx, and be sure to check out the free webinar series Best Practices for Agency Operations, which will continue on June 15th with a 15-minute session on mergers & acquisitions. Register for the webinar now at http://www.independentagent.com/Resources/AgencyMan-agement/BestPractices/Pages/Webinars/default.aspx

About the Author

Jennifer Becker is the Director of Educational Programs for the Big “I” National Association. She helps coordinate the Big “I” Best Practices Study and its associated materials. She may be contact-ed at [email protected]. u

A wealth of potentially profitable ideas awaits readers of the 2015 Best Practices Study Update. The latest release includes data from the actual reported results of the 213 Best Practices participating agencies (including seven agencies from Ten-nessee). Stay on top of the latest financial and benchmarking information with the 2015 Update and see how the economy, market and insurance environment are affecting some of the best agencies in the country.

You can search and sort these results in numerous ways, be-ginning with the data specifically applicable to your agency revenue size, with six categories ranging from “under $1.25 million” to “over $25 million.”

Once you’re there, dig deeper to compare according to:

• Revenue: by source, niche, account concentration or size, and acquisition information

• Expenses: compensation, selling, operating, administra-tive and change over the past year

• Profitability: ratios for profit/loss, as well as financial stability• Producer information: number (commercial, personal,

life-health), commissions, compensation, time manage-ment and source of hire

• Technology: staffing, expense and vendor or type of sys-tem Carriers: number represented, commission and rev-enues, and use of service centers

Stats, Facts & Tips for Growth written by Jennifer Becker, Big “I” Director of Ed. Programs


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Are You Ready for Voting Season? State Mobile App Can Help Clear the Confusion on Voting written by Dakota Weatherford

As the polls draw closer to opening for early primary vot-ing on Friday, July 15th, many Tennesseans have questions about where to vote, how to vote, and who is running their district. The solution? The State’s new GoVoteTN application for mobile devices. Secretary of State Tre Hargett introduced the app as an easier way to access information about polling places, candidates, districts and elected officials.

The GoVoteTN app is broken down into four categories:

• Search by voter• Search by address• Election results and/or • Full site

Since Tennessee is divided into several districts for one voter, knowing who will be on the ballot could be confusing. This al-lows individuals to locate and access their information quick-ly and accurately.

Helpful Features for Voters

The app is provided by the Tennessee County Election Com-mission and is available for Apple and Android devices as well as online. You can easily access the download by going to your phone’s app store or marketplace. The app is updated by each County’s Election Commission for the fastest and most accurate information.

Once downloaded, it has many featured highlights including Early Voting and Election Day polling locations and hours of operation. Since there are several locations to vote, this cre-ates a simplified way for voters to schedule a time during their day to get out and vote. It also offers navigation to your poll-ing site. You will also have the ability to mark sample ballots for your district, eliminating confusion when at the ballot box. In addition, the app provides online election results for each voting district.

With all of these features provided, voting is made easier and hopefully more efficient. Download your GoVoteTN app to-day and be prepared for when you arrive at the polls to vote.

Think the next election isn’t until November? Be sure to read our CEO’s article on page 25 for more info.

About the Author

Dakota Weatherford is the Marketing & Research Associate for Insurors. She earned a public relations degree from Tennessee

Tech University and her experience ranges from the Wilson County Mayor’s Office, Chamber of Com-merce and the Convention and Visitors Bureau. She may be contacted at [email protected]. u


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Daniel Learns About Insurance: Stick to Your Guns? Don’t Misfire on Insuring Firearm Collections written by Daniel Smith

Insurors Director of Communications Daniel Smith is far from an insurance expert, but he is trying to learn! In this series he will look into insurance industry and coverage questions he has about popular trends in day-to-day life.

Let’s admit it, most of our State loves guns. Earlier this year, the State Legislature even passed a resolution naming the Barrett .50 caliber rifle as the official “State Rifle.” The rifle is manufactured by Barrett Firearms in Christiana, Tennessee, and is powerful enough to bring down a small aircraft. How much does an official state rifle set you back? Around $6,000 in this case.

Think $6,000 is a lot for a firearm? Recently we were in Mem-phis and took a look around their gigantic Bass Pro Shop and the Beretta Gun Lounge within it. On display was a hand-as-sembled, hand-tooled Beretta shotgun at an asking price of $84,000. While that may be a bit extreme, guns – and gun col-lections – can quickly add up in value. So, how do you make sure that these collections are fully covered?

Is a Homeowner’s Policy Enough?

For small collections, a Homeowner’s policy may be all that is required to insure them. Most HO or Renter’s policies will cov-

er guns up to a sub-limit (often between $2,000 and $3,000). This will cover guns from theft, fire and some catastrophic events.1 For slightly larger collections, scheduling out per-sonal property coverage may be an option – although some carriers may exclude or limit collections coverage from their policies.

Many gun owners are members of the National Rifle Associa-tion (NRA). The NRA provides an insurance policy for mem-bers that covers, “firearms, airguns, bows and arrows against theft, accidental loss and damage” up to $2,500. They have additional coverage available for $17.40 per $1,000 in cover-age.1 However, larger collections are often best insured with blanket protection. A blanket policy will allow collectors to cover their guns without providing serial numbers, and in some cases, without providing details of the guns being cov-ered. Scheduling higher value firearms is also an option, but in those cases serial numbers, detailed descriptions and pos-sibly a certified appraisal will be required.

When working on a policy for gun collections, some of the coverage concerns to be aware of include accidental break-age, burglary and theft. Additional coverages for travel and transit, exhibition and storage may be of interest to the in-sured. Inflation or appreciation may also be an optional cov-

A U.S. soldier aims his Barrett .5o caliber rifle dur-ing field training. Image credit U.S. Army via Flickr Creative Commons

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erage for firearm collections.

Historic Firearms and Valuation

Historic firearms must also be taken into consideration. Some of these classic weapons can hold values into the hundreds of thousands. In these cases, it is likely that a competent apprais-al will be needed to accurately determine the value of cover-age. One place to begin is the Blue Book of Gun Values. This trusted resource is known by gun collectors as the clearing house for gun information. You can look up values on their website, request information or ask for a formal valuation.

Don’t make the mistake of letting your client believe that since their firerms are “antique” that they will not be excluded as standard firearms under homeowner’s policies. That was exactly what happened to a homeowner in California who had 19 antique firearms stolen from his home.3 He owned the guns merely as investments, and had never fired them. Since the guns met the definition of “antique firearms,” as defined by the U.S. Gun Control Act of 1968, 18 U.S.C. § 921 et seq., the owner believed they should not be subject to the policy limits for theft of firearms. A California appeallate court disagreed with his position, siding with the insurer who only reimbursed him for his $5,000 policy limit.

Several insurers and MGAs have experienced staff in handling firearms and collectibles insurance. Make sure you consult with such experts to get your insured the most “bang for the buck” on gun collection insurance.

1-Per “Guns and Insurance – A Firearm Owner’s Guide” via https://news.leavitt.com/personal/guns-and-insurance-a-firearm-owners-guide/2-Per “Affordable NRA Endorsed Gun Collector Insurance” via https://myn-rainsurance.com/insurance-products/firearms-gun-collector3-Per “Watch Out For Those Policy Limits on Valuable Collections” via http://www.propertyinsurancecoveragelaw.com/2014/10/articles/insurance/watch-out-for-those-policy-limits-on-valuable-collections/

About the Author

Daniel Smith serves as the Director of Communica-tions for Insurors of Tennessee. He has a Bachelors degree in Marketing with a minor in Graphic Design from the University of Tennessee at Chattanooga. He may be contacted at [email protected]. u

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Brandon Clarke is a Knoxville native who graduated from Farragut High School. After college he worked on the MGA side of the business before returning home to Knoxville to work in the family agency. He lives there now with his wife Lauren and their three daughters, Emerson, Taylor and Bankston. He is active in his community, passionate about helping the younger generation and

enjoys playing golf in his spare time.

The Insuror: Can you tell us a little about your current job title and responsibilities?

Brandon: I serve as the President of John Bailey Company. I manage the agency, put processes in place to service clients and make life easier for our team, work with our agency partners, and establish relationships with clients. It is very important to me to be in the trenches with my team. Often, I will process certificates and Acord forms, market accounts, take out the trash, go to the P.O. Box and work weekends.

The Insuror: What can you tell us about your educational background?

Brandon: I graduated from Farragut High School and went on to earn my diploma from Ole Miss, receiving a Bachelor’s degree in General Business in 2001. I completed my CIC designation in 2009.

The Insuror: How and why did you get your career in the insurance industry started?

Brandon: As a second generation independent agent owner, the family business was obviously always an option for me. During an insurance class at Ole Miss, Greg Thompson (former president of Thomco later sold to Markel, currently the Senior Managing Executive for Programs at Markel), came and spoke to our class about insurance. I was intrigued by how he explained the expertise of examining a business and breaking down risk. That was really the moment that sealed the deal for me. I knew then that I wanted to be an insurance entrepreneur. So if you ever have a chance to speak to a group of college or high school kids, please do it! You may

be surprised by the impact you can make on someone’s life.

The Insuror: Do you have any influences/role models in the industry?

Brandon: My dad, John Clarke, is my role model. I have watched him grow the business and I don’t know anyone who has worked harder. Surely there were tough times growing up, but my sister and I never knew. Now he has left his legacy and his life’s work with me and my family.

Building the business with him over the last 10 years has been the best time of my life to date. Every day with him I learn something new about business and life. Tom Gillingham and Glenn Sudol (from my previous MGA underwriting/marketing position in Denver at Gillingham & Associates) taught me everything about reading policy forms, processes and building relationships. Another mentor was Coach Don Meyer. He taught me about goal setting and mental approach when I attended his Lipscomb Basketball camps.

The Insuror: Is there any advice you could offer Young Agents or others in the industry to achieve success?

Brandon: My advice to young agents is to be teachable and have a willingness to learn, soak everything up and then create action with your knowledge. The world only cares about what you have to offer. Being good with people is not a skill, working hard isn’t a skill, your Master’s degree doesn’t offer anything to the world. Insurance is a skill - you must learn and practice it over and over again.

I like the “10,000 hours to achieve mastery” rule from Malcolm Gladwell’s Outliers – it takes 10,000 hours to really understand insurance; most people quit before they even get there. Where you put your time in will define what you know and what skills you develop. Insurance is hard work – there is no 4 hour work week. If you’re looking for that you’re in the wrong industry.

The Insuror: As an independent agent, you have many partners in this industry, including carriers, MGAs and many more. How do you determine which ones are the right relationships?

Brandon: Much of what is available today is driven by historical data and call centers, which is great for efficiency, but isn’t a long term recipe for success. Relationships are sustainable. Great companies hire great people. It has always

Future Leaders Spotlight presented by

Brandon Clarke, CIC • John Bailey Company - Knoxville

Brandon Clarke of John Bailey Company


been that way and we invest our resources with the ones that we identify as having those traits.

The Insuror: You have worked hard to become an expert on Cyber Insurance. Why do you feel that is such an important subject?

Brandon: Data is the new liability, and disruption in the business markets has changed the way businesses operate. If you aren’t selling cyber liability you are a dinosaur.

The Insuror: Thank you for giving us your time, Brandon, we appreciate it and wish you continued success in your career. Brandon: Thank you. I truly believe that the future of our industry depends upon the relationships we establish with other high quality insurance professionals. As generational change and technology upsets our current marketplace, we realize the importance of a strong peer and support group like the Insurors of Tennessee.

The future will be about educating the consumer on who the independent insurance agencies are, and what we do. Advertising is dead, movement is alive! u

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Berkley Southeast Insurance Group is a member company of W. R. Berkley Corporation, whose insurance company subsidiaries are rated A+ (Superior) by A.M.Best. Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued.

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The Young Agents Committee has held four events already in 2016, with well over 100 total Young Agents attending these events. The committee has now finalized the dates and locations for the final three remaining local receptions for this year. Those event details are below, and more information will be shared with you soon.

If you are interested in providing suggestions and/or participating in events, please e-mail Daniel Smith at [email protected] or call him at 615.515.2601. You can also visit our website at www.insurors.org/IOT/About/Young_Agents/IOT/News/IOT_Young_Agents.aspx for updates and articles tailored for young professionals.

The following is the current schedule of events for Young Agents in 2016. Please mark your calendars and join us for these great opportunities to network and grow in the insurance industry.

June 7 - Tri-Cities Young Agents Reception50Fifty Sports Tavern • 5-7 pm EST • Johnson City

Young Agents ‘16Upcoming Events and Information


June 9 - Knoxville Young Agents ReceptionBalter Beer Works • 5-7 pm EST • Knoxville

October 30 - Convention Young Agents After PartyLocation TBD • 8-11 pm CST • Nashville

Young Agents Committee

Brent Chance - ChairPrincipal Agent/OwnerIvy [email protected]

Stuart Oakes, CRIS - Immediate Past ChairProducer/Construction DivisionTIS Insurance [email protected]

Tim Treadwell V - Region IAccount ExecutiveBoyle Insurance [email protected]

Alan Sisk, AU, AINS - Region IIProducerGeny [email protected]

David Allen, CIC, CRM - Region IIIPrincipal AgentRSS [email protected]

We define Young Agents as anyone under 40 years of age or who has been a licensed agent for less than 5 years. Young agents are producers, CSRs or agency personnel who are hoping to grow in their careers by developing business, making new connections and participating in the future of our industry.

Our committee goals are to foster this growth through events, education and research. Are you part of Insurors Young Agents? If not, we hope you consider contacting us or attending an upcoming event in your area.

For more information, or questions on the Young Agents program, please e-mail [email protected] or call him at 615.515.2601. u

Aaron Jensen Adam Reeves Andrew Powers Blake Dickens Brandon Patterson Chad Richardson Chad Snider Charlie Taylor Clement Ledbetter Cooper Permenter David Allen David Clark David Evans Jamie Williams Jared Smith Jason Teague John Brock John Fritts Josh Witt KC Covington Kevin Lockmiller Kevin Ownby Matt Spellings Michael Greer Michael Novarese Mike Thomas Neil Scott Paul Steele Preston Martin Ramsey Brock Robert Harris Stacy Woodard Stuart Oakes Taylor Ragan Taylor Walker Tim Treadwell Trey Powell Will Webb

Shafer Insurance Agency, Knoxville Union City Insurance Agency, Union City Burke, Powers, and Harty Insurance, Bristol Harris, Madden and Powell, Memphis Ownby Insurance Services, Sevierville Swallows-Newman Insurance, Cookeville Westan Insurance Group, MartinBurke, Powers, and Harty Insurance, Bristol Battle Page Insurance, FranklinHarris, Madden and Powell, Memphis RSS Insurance, ChattanoogaRSS Insurance, ChattanoogaThe Insurance, Group, Inc., Knoxville Hardin County Bank Ins. Agcy., Savannah TIS Insurance Services, Knoxville Watauga Insurance, Johnson City Heritage Brock Insurance, ChattanoogaTIS Insurance Services, KnoxvilleThe Insurance Group, Inc., Knoxville Carroll Insurance Agency McKenzieV.R. Williams & Company, WinchesterOwnby Insurance Services, Sevierville Consolidated Insurance Agency, ParisV.R. Williams & Company, Winchester McDaniel-Whitley, IncInsurance, Inc., NashvilleInsurity Group, ChattanoogaMartin & Zerfoss Insurance, Nashville Union City Insurance Agency, Union City Brock Insurance, ChattanoogaTigrett & Pennington, NashvilleShafer Insurance Agency, KnoxvilleTIS Insurance Services, KnoxvilleMartin & Zerfoss Insurance, Nashville Thompson & Smith Insuance, Jackson BoyleInsurance, MemphisRSS Insurance, ChattanoogaBattle Page Insurance, Franklin

Congratulations Exceptional Agents 2016

Berkley Southeast Insurance Group recognizes the need to mentor the growth of new talent

and to perpetuate the Independent Agency System, as well as provide young agents with a competitive

advantage. Tennessee’s Young Agents are the future of our business. That’s why we are working

together for success.

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INTRODUCING

Exceptional Agents

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From Your President


we got to our meetings with legislators, we were all giving the same well thought out mes-sage. Of course we were free to bring up any other topics of importance to us.

I am happy to report that our team was able to meet with all the legislators on our list and I thought we had some meaningful conversa-tions. I left there feeling good about the visits and the impact these talks had on the legisla-tors. I also realized that some of our team mem-bers had really good relationships with their legislators and that helped a lot. I need to work harder on that both at the State and National level.

It has been less than a month since our visit and we have already seen some positive action on bills that we discussed during our meetings. The U.S. House approved a resolution to block the Department of Labor fiduciary regulation from taking effect – no vote yet in the Senate. The House also passed favorable legislation on Flood insurance – we are still waiting for the Senate to act.

Get Involved

What can we as agents do to help? One of the most powerful ways to act is to develop a rela-tionship with your elected officials. I hope you know your legislators, at both the State and national level – if not, please make an effort to get to know them. I can tell you I saw firsthand that it can really make a difference. I urge you to go to Washington at least once to participate in this national process; you will be glad you did.

Of course, donating to our Association PACs is also a key part of our involvement. Having strong PACs allows us to support candidates who understand our industry and will listen to our input.

Our State Association is blessed to have many contacts in Washington. We also have capable informed advocates from the Big “I” on the job in D.C. That should make us all feel good that the future of our industry is in their hands. u

Reflections from The Capital

“O n e o f t h e m o s t p o w e r f u l ways to act is to develop a relationship w i t h y o u r e l e c t e d o f f i c i a l s . ”

Christie Reeves, CIC, CPCU, CPIW

I have been in the insurance business for more than 40 years and have been a member of In-surors for more than 25 of those years. But in the past year I have learned more about the “big picture” of national politics and how it af-fects our business than I have ever known.

I have been aware of what happens at the state level and my involvement with Insurors over the years has kept me informed. These are is-sues right here at home that affect what we do every day so I have been very interested in what happens. But I must confess that I have not always paid the same amount of attention to issues at the national level.

My excuse has always been that I am just not a very political person. I do vote and I do study where the candidates stand on a lot of issues. And I have kept up with some insurance is-sues such as the Affordable Care Act. But I have not spent the time to really focus on most in-surance issues at the national level the way I should. These issues also affect what we do and how we do it.

National Legislative Conference

Several of us went to Washington, D.C. in April for the Big “I” Legislative Conference. It was my second time to attend, the first year was full of firsts for me and I just took it all in. This year I understood “how things work” a little better and was more of a participant than before. I must say I was very impressed with the organi-zation and dedication of our national political team. It is obvious they have clout on The Hill and people listen when they speak. Of course, part of that is because of our Federal political action committee Insurpac National. We raised more than a million dollars last year and as you all know – money talks. But this national team is well-versed on the issues and they know how to get things done.

Before our journey to the hill to meet with our legislators, we had a briefing on the most im-portant key issues facing our industry along with talking points on each subject. By the time


Meeting my customers where they work.

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Why is being a Trusted Choice Independent In-surance Agent one of the best jobs ever?

Just think about your typical day as an insur-ance agent, customer service representative, account manager or any other position within our agencies. “Typical?” you ask. I know that there is no “typical” day in the lives of indepen-dent agents – and that is what is so great about our industry!

You may begin your week working with a new-ly married couple, making sure that their new home and possessions are adequately covered. Is it time for their separate auto policies to be combined and take advantage of that multi-policy discount? How about life insurance, can we help them with that too? Soon a call comes from an older insured that just has some ques-tions about her current home statement and needed someone to explain it to her in layman’s terms, because she didn’t understand when she talked to the carrier. Our response to her – that’s what we are here for!

The next day, over in the commercial depart-ment, a phone call comes in early from a small business owner that thinks he only needs basic liability coverages. After a conversation with an account manager, he realizes that he needs work comp coverages and an auto policy for his vehicles too. Soon after that, a call from a larger insured starts the wheels rolling as he has just purchased a new multi-million dollar business! He is going to need it all – package, umbrella, commercial auto, D&O, work comp, group health, several bonds and probably some flood coverage. At the end of the day, the call from an insured that needs to file a work comp claim. It thankfully turns out to be nothing too serious. The CSR is ready to take all of the information

and file the claim with the carrier to ensure quick attention.

It Sets Us Apart

These type of scenarios are what make a Trust-ed Choice agent unique. We can help our in-sureds understand coverages and options avail-able and make sure they are properly covered. We can guide insureds through claim processes to assist with prompt and fair resolutions. We can offer our experience and multiple company relationships to find the most accurate cover-age for each individual, family or business. And above all, we conduct our business in an ethical manner.

A National Network

The IIABA (or Big “I”) represents more than a quarter million agents and their employees in all 50 states and Washington D.C. This network helps the Big “I” to understand what is impor-tant to independent agents locally, and then provide the tools, knowledge and protection to serve their clients effectively. They also serve a vital role as an advocate on the issues that mat-ter most to our success. Whether it is through State-level legislation and insurance depart-ment regulation or it is on Capitol Hill in D.C., Insurors and the Big “I” have our back.

I continue to be humbled to serve as the Na-tional Director, representing the state of Ten-nessee. I have been in the independent agency industry for some 30 years now, and every day I learn something new. Just as none of our in-sureds are “typical,” I am vitalized that there is never a “typical” day for a Trusted Choice Inde-pendent Insurance Agent! u

From Your IIABA National Director

“Our response to her – that’s what we are h e r e f o r ! ”

No “Typical” Day for an Independent Agent

Lou Moran III


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From Your CEO


Chuck Bidek, CPCU

So, When is the Next Election?

“T h e n e x t e l e c t i o n i n the Volunteer St a t e i s t h e August 2nd p r i m a r i e s , w i t h e a r l y voting starting J u l y 15 t h .”

You would have to be in a coma to not have heard about the 2016 election. When asked about the election date, most people would say it was “in November,” or more specifically, Tues-day, November 8th. Personally, I would say it is exactly one week after the Insurors Convention. In any case, all of those answers are wrong.

The next election in the Volunteer State is the August 2nd primaries, with early voting starting July 15th. Think of it like preseason football for the Titans, and kickoff is closer than you realize.

However, the primary in politics is much more than a preseason game. Winners and losers for state races are determined in what could be lik-ened to wild card elimination games with the "loser goes home" rule in effect. Surprisingly, usually less than 50% of eligible voters turn out. Therefore, the vote you make in the primary counts more than the one you make in the gen-eral election due to the lower turnout. Another way to say it, since two less voters are present, your one vote actually counts for three votes.

Due to the low turnout for elections, the State Representative races are usually very close in votes. For example, a representative might ex-pect 10,000 votes from the 30,000 possible vot-ers. If one candidate gets 6,000 votes and the other get 4,000 votes, you certainly could say the winner, trounced the loser by 2,000 votes. But what would it have taken to change the out-come. If 1,001 votes were moved to candidate 2, they would have ended up with 5,501 votes leaving candidate 1, with 4,999 and a new win-ner is declared. A percentage swing of only 10 points – plus one vote – changes the outcome. That’s why candidates promote the “get out and vote” model and hope to sufficiently to fund a name recognition campaign. The old saying in politics that, “He who has the most yard signs wins the election,” is still relevant today.

Who will be running in the “elimination” games? In the State Senate, only 4 out the 32 sitting sen-ators will face primary challengers. This is what Mike Keith refers to as interdivisional games. Two or more from the same party fight it out to meet the other party in the general election. The rela-

tively low number is due to the fact that only half the Senate is up for re-election in any given year. Six of those Senators have no competitor in the primary. Simply stated, no one of the same party wants or thinks they can win in the first round.

Since all of the House runs every two years the numbers dramatically change. There are 18 Representatives with no primary challenger – so about 1 in 5 get a “pass” on the first round – while 20 get competition from members of their own party. The winners move on to the general round in November where 67 seats (Senate & House) will actually be fought out between the parties, or about 1/3 of the ballot will be statistically gone before the election. Of the 2/3 left, at least half of those will have heavy odds on likely winners. So if you wait for the General Election, you have likely given up 2/3 of your choices before the “big” day in November.

Who you personally get to vote on depends on where you live and your choice of party affilia-tion. In Tennessee, we don’t have to declare that until we go to vote. But you will need to declare a political party at the polls. I once heard of an Insurors member who took his tax return to the polls to prove he made sufficient money to vote in the party primary of his choosing. That is not the case, neither is a poll tax, reading test or anything like that to bar you from voting. You do need to show a government issued ID just like the one you show to get on the airplane or purchase adult beverages in the grocery store. It doesn’t matter which party you have chosen in the past. Either way it is important you get the coveted, “I Voted,” sticker. Returning in No-vember you can qualify you for another sticker! Please vote and encourage friends and family. That aforementioned 10% could be changed by a couple of families or one subdivision.

If you are not registered to vote or need to make a change to your ID card, you have until July 5th to be eligible for the August election. You can easily attain the forms from your County Elec-tion Commission website or in-person. The form is brief and will only take about five minutes to complete. Once turned in, you will receive the official ID and be eligible to vote in August! u


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Education CalendarThe Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialities that satisfy individuals at many different experience levels. If you are looking to further your career, seeking a professional designation, or need to satisfy continuing education requirements, check out the variety of courses available.

Registration is fast and easy at www.insurors.org. More information about each class can also be found online.

Indicates course is presented by The National Alliance. Register for these courses at www.thenationalalliance.comRegister Online at www.insurors.org

CRM Fee: $430

8/16-19 Analysis of Risk* Nashville

Risk Seminars Fee: $430

10/13-14 Advanced Risk Management* Memphis

Online Courses (www.iiaba.net/vu) Available from IIABA Virtual University. Member pricing shown.Ethics for Insurance Professionals CE: 3 $75How to Calc. Business Income in 5 Min. CE: 3 $50National Flood Insurance Program CE: 6 $80New Employee Training Course CE: 9 $100 *check VU site for current information on CE and pricing

Available from The National Alliance (www.scic.com) Legal & Ethical Requirments of Insurance CE: 4 $75Insuring Flood Exposures - NFIP Review CE: 4 $75

Available from The Institutes (insurors.ceu.com)

Insurance Principles and Policies CE: 7 $49Long Term Care CE: 24 $99Workers’ Compensation CE: 10 $59Employee Benefits for Small Companies CE: 4 $39Healthcare Reform and Affordable Care CE: 5 $49e-Coverage CE: 15 $79Fundamentals of Personal Auto Insurance CE: 3 $29Management Process for Ins. Professionals CE: 21 $89Intro to Flexible Spending Accounts CE: 4 $39Terrorism and Its Impact on Insurance CE: 4 $39Toxic Mold and Homeowners Insurance CE: 15 $79Understanding the Industry of Insurance CE: 5 $39

CISR Fee: $186 CE: 7 6/15 Life & Health Memphis7/13 Commercial Casualty I Knoxville7/14 Commercial Casualty I Johnson City8/9 Commercial Casualty II Nashville8/10 Commercial Casualty II Memphis10/4 Personal Residential Knoxville10/5 Commercial Casualty I Chattanooga12/1 Elements of Risk Nashville

CIC Fee: $424 (Ruble $430) CE: 24 (Ruble 16)

6/8-10 Life & Health Institute Knoxville7/28-29 Ruble Graduate Seminar Nashville9/14-16 Life & Health Institute Nashville11/9-11 Commercial Casualty Institute NashvilleThe National Alliance for Insurance Education & Research is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org. Advanced Curriculum Rating = 20 CPE Credits. For more information regarding administrative policies such as complaint and refund, please contact our offices at 800-633-2165.

ABEN Webcasts (insurors.aben.tv) 6/14 E&O - Role of Agency Defenses CE: 3 $486/14 Data Privacy Insurance CE: 3 $486/15 Business Income-Beyond the Basics CE: 3 $726/16 E&O - Understanding Agent Duties CE: 3 $486/16 Double Trouble-COI & Business Auto CE: 2 $486/16 Characteristics of Ultimate Acc. Mng. CE: 2 $486/17 E&O - Claim 360 View CE: 3 $486/21 Hot Topics in Personal Lines CE: 2 $486/23 D&O Liability Insurance CE: 2 $486/23 Home Based Business Exposures CE: 2 $48

2016 CONTINUING EDUCATION SCHEDULE

Nashville3/2-4 CIC Agency Management

4/13 CISR Personal Auto

5/4-6 CIC Commercial Property

7/28-29 CIC Ruble Graduate Seminar*

8/9 CISR Commercial Casualty II

8/16-19 CRM Analysis of Risk

9/14-16 CIC Life & Health

11/9-11 CIC Commercial Casualty

12/1 CISR Elements of Risk

MEMPHIS

4/6-8 CIC Personal Lines

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8/10 CISR Commercial Casualty II

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Government and Legal AffairsWhere There’s No Will There’s A Hard WayWritten by Ashley N. Gold, JD, Insurors General Counsel

Robin Williams life and legacy touched many people. Best known as a comedian, begin-ning as a stand-up comic and then moving to television and film, Williams’ talent was widely celebrated. Williams was also phil-anthropic in nature, and used his celebrity and fortune to support the USO, the home-less, literacy rights for women and veterans to name a few. Williams had several children and was married three times. Prince Rogers Nelson, better known to the world as Prince or just , also touched many people. Children of the 80s remember fondly “Purple Rain” and the many songs that Prince wrote and recorded that changed the musi-cal landscape forever. He was also philan-thropic, but intensely private so much of his activism will never become public. Person-ally, he was married twice and did not leave any living children. Why am I telling you all of this? I am using examples of very well-known individuals who have recently passed away and the vast differences between what can happen with Estate Planning and no Estate Planning. Rob-in Williams had an excellent will, Prince had none. While most of us may not have $300 million dollar estates that are ever expand-ing, the benefits of thoughtful Estate Plan-ning are enormous. Examining the Two Situations Prince died without a will.1 Among other things, that makes it even more likely that the estate will face lawsuits by claimants who hope to collect a piece of Prince’s vast estate. A simple will–or as in Prince’s case, no will at all–means probate. The probate pro-cess is public and expensive. And it can invite disputes. Already, it’s clear that Prince’s large estate will face major taxes. The current federal estate tax law says that a person can (by will or intestacy) give $5.45

million tax free to anyone. In addition, you can give gifts to qualified charities by will. But beyond that, there is estate tax. The current federal estate tax rate is 40%. For every million dollars, the IRS will get $400,000. As a result of legislation that was passed in 2012, Tennessee's inheritance tax was repealed in 2016. How-ever, federal estate taxes are why many people set up trusts and tax-reduction plans during their lifetime to try to reduce the tax burden to benefit their heirs. As mentioned, Robin Williams completed an excellent estate plan. His estate plan included a residence placed in trust for his wife to use during her lifetime including a fund to pay insurance, taxes and other costs related to the upkeep of the property. Additionally, Williams’ trust divided assets equally among his children, and once all gifts from Williams’ to his children during life and at death were totaled, they were to receive equal amounts. This allowed him to “even up” everything at the end. The trust also allowed each child to redirect how the trust assets passed to their heirs. This allows the children the flexibility to modify the trust in order to meet their children’s needs. There are many reasons why you should take the time to review your current will and trusts. First, if you are a business owner, the disposition of your business can be addressed through good estate planning. Do you want your spouse or children to be responsible for paying taxes on your share of the business upon

NOW YOU’VE GOT THEMNINE monoline workers’ compensation markets

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your death? Do they want to run the business? Is your partner the better person to buy out your share and how should it be valued? All of these are decisions that can be made now. What about children? Are your children grown? Do they still need support? Or would your estate be better left in trust to support grandchildren? To achieve the best outcomes before meeting with your state attorney, take stock of your assets, debts, real estate and in-surance policies and retirement accounts. Are there any spe-cific bequests you want to give to individuals or are there any charities that have meaning? Keep those in mind as you plan. Ultimately, take the time to properly plan your estate and what will happen to your assets. If not, you leave the deci-sions to the Court and the government, and who wants that?

1 - Per New York Times “Prince Died Without a Will, According to Court Docu-ments...” via http://www.nytimes.com/2016/04/27/arts/music/prince-died-without-a-will-according-to-court-documents.html?_r=1

About the Author

Ashley N. Gold has served as General Counsel of In-surors of Tennessee since 2007, and previously con-sulted for the Association on legal and government affairs matters. She received her undergrad degree from the University of Kentucky and her Juris Doc-

tor from Samford University. She may be contacted at [email protected] or by calling her at 615.515.2606. u

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You are obligated to protect the data you collect, and package policies are often not enough.

Make sure your agency has the right coverage in place to protect you and your insureds.

Contact your Insurors E&O Specialist, Stephen Holmes, CIC, CISR, for information on Data Breach coverage.

1. Privacy Rights Clearinghouse: Chronology of Data Breaches

Stephen Holmes, CIC, [email protected]

615.515.2609


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Association UpdateInsurors Adds Small to Staff

Insurors of Tennessee has announced the addition of Ellie Small to the Association staff, where she will serve as Membership Specialist.

Small will manage the continuing education program, coordinate course registration and provide administrative

support to the Insurors office.

Small is a native of Evansville, Indiana and a graduate of Purdue University. She joins our team from Uber, where she was a partner support representative based at the Nashville location and managed partner accounts. Small also worked for Purdue University’s Office of the Registrar and was a student office assistant for the Military Extension Internship Program.

Allen Wins Keystone Thoroughbred Award

Keystone Insurers Group recently announced the recipients of the annual Keystone Thoroughbred Award, which recognizes the top insurance producer in each state in which Keystone has partner agencies. The 2015 winner for Tennessee was David Allen, CIC, CRM, a principal agent of RSS Insurance in Chattanooga and the Region III member of the Insurors Young Agents Committee.

Crichton Group Promotes Madison and Wiedman

Nashville-based insurance agency The Crichton Group has promoted partner Austin Madison to senior vice president and Blake Wiedman to partner and vice president.

Madison, who joined the agency in 2007 and will continue to oversee the employee benefits department, previously served as vice president and helped clients understand the impact of healthcare reform, according to a release. In addition to his experience in employee benefits insurance, Madison has expertise in captive insurance,

life and disability insurance, wellness and population health management. He earned his bachelor’s degree in corporate communications from the University of Kentucky.

Wiedman, who joined the agency in 2011, will help lead the agency’s risk management services with a focus on cybersecurity. Previously, he served as a commercial insurance advisor for the agency. Wiedman’s expertise is in private equity, technology, healthcare and law firms. He obtained his bachelor’s degree

in business administration in finance from Ole Miss.

Reliance Partners Promotes Chastain

Reliance Partners in Chattanooga has announced the promotion of Jordan Chastain to the position of senior director of sales for the transportation division of the company. The company is one of the fastest-growing insurance providers to the trucking and logistics market in the nation.

Jordan is a native of Gainesville, Georgia and a graduate of the University of Mississippi’s Risk Management and Insurance program. “Jordan’s work ethic has been instrumental in his success and the continued growth of our trucking division,” said Reliance VP Jason Coleman. “We are excited to see him take on additional responsibilities on our sales team.”

McIntire Inducted Into Bradley County “Old Timers” Hall of Fame

Former Insurors Board member Bob McIntire of McIntire & Associates in Cleveland has been inducted into the Bradley County “Old Timers” Hall of Fame. McIntire was honored for his contributions to golf in the community. He played golf in high school before going on to play at Cleveland State Community College

and then becoming first golfer to attend Lee College on an athletic scholarship. He went on to finish in the money in several tournaments, including the Chattanooga Coke Open and the Ping Open at Oak Ridge Country Club.

Former Insurors Ed. Director Wilson Retiring

Bill Wilson, Director of the Big “I” Virtual University and former Education Director of Insurors of Tennessee, has announced that he will retire in December of this year. Wilson has been in insurance for 47 years, beginning his career the Insurance Service Office (ISO). He plans to continue working in some capacity, and is developing a

website at www.insurancecommentary.com. u

David Allen receives the award from

Keystone’s Michelle Bicknell


“Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.”

The Allison Insurance Group - JacksonBagley & Bagley Insurance - FayettevilleBoyle Insurance Agency, Inc. - Memphis

Burke, Powers & Harty - BristolCarnal-Roberts Agency, Inc. - LexingtonCate-Russell Insurance, Inc. - Maryville

Goss Insurance - HixsonInter-Agency Insurance Services - Knoxville

Martin & Zerfoss, Inc. - Nashville

McInturff, Milligan & Brooks - GreenevilleMiller | Loughry | Beach Insurance Services - Murfreesboro

Ownby Insurance Service, Inc. - SeviervilleSmith-Berclair Insurance, Inc. - Memphis

S.N. Anthony, Inc. - RipleyTigrett & Pennington Inc. - Dyersburg

V.R. Williams & Company - WinchesterWatauga Insurance, Inc. - Johnson City

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You’ve finally found a new employee for your agency, and you’re anxious to get them started. The only problem is, they’re new to the industry and they haven’t even been li-censed yet. Where do you start? Luckily, you’re an Insurors member, and that provides you access to some great resourc-es for new employees.

National Alliance Introductory Courses

Earlier this year, the National Alliance for Insurance Education & Research introduced a series of courses for new hires. These courses are only $30 each and offer curriculum, quizzes and exercises at a self-learning pace. Topics include Intro to P&C Insurance, Intro to Commercial Property, Intro to Commercial Casualty, Intro to Personal Auto, Intro to Personal Residential, Benefits classes, Miscellaneous Coverage classes and several more.

For more information, or to register, please visit http://www.scic.com/news/introductory_courses_new_offerings_for_new_hires.

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Kaplan Financial Pre-licensing and Licensing

Once your new hire is ready for licensing, Kaplan Financial of-fers live, online and self-study options to prepare for the State licensing exam(s). In addition, Insurors members can visit www.kaplanfinancial.com/firm-insce and use code INSTN for 20% of the standard retail pricing.

Laws to Know/Unlicensed Personnel

In addition to information and licensing, you can also get your employees started right away on some tasks in the agency. Insurors offers members a list of duties that unlicensed per-sonnel may legally perform in an agency. View the list now at http://www.insurors.org/IOT/Resource_Center/Agency_Man-agement/Unlicensed_Personnel.aspx

We also have a list of “Laws Every Insurance Agent Should Know,” which is updated annually and available to members for download at http://www.insurors.org/pdf/Tennessee-AgentLaws1-16.pdf. u

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NATIONAL ALLIANCE INTRODUCTORY INSURANCE COURSESVISIT WWW.THENATIONALALLIANCE.COM FOR MORE INFORMATION


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ACUITY understands that commitment is an essential quality agents need from an insurer—commitment to remain a viable resource for new and existing business; commitment to relationships with you and the independent agency system; and commitment to protecting and enhancing the well-being of the families and businesses we insure.

“Independent agents know they can rely on ACUITY as the ‘go to’ company for the type of business we like to write,” said Ben Salzmann, President and CEO. “We provide agents the products, technology, and services that help them write business with us.”

An Array of Products and Services

ACUITY’s product portfolio is expansive: a wide array of monoline, package, and portfolio policies, as well as many important and unique coverage enhancement endorsements designed for Tennessee accounts. In personal lines, ACUITY provides true tiered rating programs in both auto and homeowners. In commercial lines, ACUITY offers monoline and commercial package policies and business owners (BOP) forms, as well as endorsements designed for target classes of business, such as contractors, truckers, mercantile and manufacturing accounts.

In delivering technology solutions agents can use, no company can claim a stronger commitment than ACUITY, which has earned more awards from ACORD than any other P&C carrier in the nation. ACUITY’s ease-of-business solutions for agents include real-time, online policy quotation and application and automatic issuance and delivery of policies to agents within seconds in both personal and commercial lines.

ACUITY’s value-added services for agents include a wide array of educational offerings through ACUITY

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U. Offered free to independent agents, ACUITY U has provided agents with over 100,000 continuing education (CE) credits through both in-office and online courses. ACUITY’s online courses include The Tale of Two Claims, Ethics: Divergent Dilemmas, and CCI: Construction Contracts Investigated, with new courses being regularly introduced.

Committed to Independent Agents

A strong commitment to independent agents has driven ACUITY’s growth in the state. The mutual insurer finished 2015 with $38.5 million in written premium in Tennessee. Importantly, this has been profitable growth, with the company running a combined ratio of just 93.0.

Additionally, ACUITY knows the bottom line is vitally important to agents. “We pay a lot more in contingent commissions as a percentage of written premium than our peers,” said Wally Waldhart, Vice President - Sales and Communications.

With strong growth and profitability, ACUITY offers independent agents remarkable financial stability. A fiercely independent company firmly committed to remaining mutual, ACUITY is also remarkably well-run: the company is rated A+ by both A.M. Best and Standard & Poor’s and has been named to the Ward’s 50 Top Performers for 16 consecutive years.

ACUITY also offers independent agents stability in staffing. Ranked the number 2 large company to work for in America, ACUITY maintains a remarkable long-term voluntary turnover of less than 2 percent.

As a result of its comprehensive and well-rounded strategy, ACUITY, which generates over $1.3 billion in revenue and manages over $3.5 billion in assets,

Tennessee Contacts

Greg Davis, CIC, CPCU, AMIMTerritory Director [email protected]

About ACUITY

ACUITY provides property and casu-alty insurance products for consumers and businesses in the United States. At ACUITY, protecting what mat-ters most to you and your family is the number one goal. ACUITY is the only commercial re-gional insurer to be rated A+ by both A.M. Best and Standard & Poor’s, making them an icon of strength.

ACUITY retains over $1.5 billion policyholder surplus, enabling them to protect the financial well-being of its policyholders.

In business since 1925, ACUITY is the 61st largest insurer in the nation and manages over $3.5 billion in assets.

For 2016, Fortune named ACUITY the #2 large company to work for in America.

provides consistency and security in an industry marked by wide market swings and financial uncertainty.

“We are a healthy, strong, and truly regional mutual carrier,” Salzmann said. “We are thankful to Tennessee agents for the trust they have placed in us, and we are confident in our future thanks to our strong agency partnerships.” u


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Company Briefstices, including talking points and the value of participating in the study.

Preferred Mutual Insurance Companies, which is working to help agents through activity in two phases: training and edu-cation, and incorporation of planning to marketing represen-tatives and agents.

Travelers, which supports agents and the Best Practices pro-gram and regularly features and promotes the program’s tools in its agency publications.

Westfield Insurance, which presented Best Practices sessions, guest speakers from Reagan Consulting, webinars and educa-tion field staff.

National Alliance Updates CRM Principles

The Certified Risk Managers (CRM) Program is one of the forward-looking designation programs of The National Al-liance for Insurance Education & Research. The program is comprised of five courses which describe and demonstrate the entire risk management process. New participants are

Big “I” Company Best Practices Awards

The Best Practices Awards of Excellence recognize insurance companies for their exceptional efforts in promoting and marketing Best Practices tools, seminars and philosophies throughout the year.

During this Big “I” Legislative Conference, Bob Rusbuldt, Big “I” president & CEO, presented Best Practices Awards of Excel-lence to the following honorees:

Applied Systems, which launched a formal campaign to en-courage participation in the Best Practices program and sup-ports clients to consistently evaluate their company’s perfor-mance as well as growth and perpetuation strategies.

Central Insurance Company, an active supporter of Best Prac-tices that has nominated more than 15% of its agencies for the Best Practices study with a personal letter encouraging them to participate.

EMC Insurance Companies, which produced articles, semi-nars and webinars based on the foundations of Best Prac-


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Progressive CEO Renwick to Retire

The Progressive Corp. announced that Glenn Renwick, presi-dent and chief executive officer, will retire after more than 15 years as CEO and almost 30 years with the company, effec-tive July 1, 2016. Tricia Griffith, currently Personal Lines chief operating officer, will succeed Renwick as CEO and president and will join the board of directors. Renwick will continue as executive chairman of the board.

Renwick joined Progressive in 1986. He was named CEO of insurance operations in 2000 and has served as the CEO of the parent company since 2001. He has served in a variety of operating roles during his tenure at Progressive, including product manager, the head of the company’s mar-keting organization and business technol-

ogy leader.

Renwick’s successor, Griffith, joined Pro-gressive as a claims representative in 1988 and has served as Personal Lines chief op-erating officer, responsible for the com-pany’s personal lines, claims and customer relationship management groups, since April 2015. She held several managerial positions in the claims division before be-

ing named chief human resources officer in 2002. In 2008, she returned to claims as the group president, overseeing all claims functions. Before her current position, she served as president of Customer Operations, overseeing claims and the customer management group, which comprises the com-pany’s contact center group (sales and delivery), as well as the customer experience, systems experience and workforce management groups.

Accident Fund Names Hassenzahl Southeast Region Manager

Accident Fund Insurance Company of America has announced the appointment of Dan Hassenzahl to regional director, Southern region. In this role, Dan is re-sponsible for underwriting and marketing in Tennessee, Mississippi, Arkansas and Georgia. Hassenzahl joined the company in 2005 as a claims examiner and in 2007

moved to Internal Audit. He became a business development consultant in 2009.

“Dan has done a tremendous job for us in Business Devel-opment over the past seven years,” said Mike Seling, vice president, Business Development & Regional Operations. “His energy, experience and expertise in agency relationship management will be a strong asset to Accident Fund in the Southern region.”

Hassenzahl earned a Bachelor of Arts degree in Business Administration from Davenport University. He holds the Certified Authority on Workers’ Compensation (CAWC) des-ignation and is currently pursuing Chartered Property and Casualty Underwriter (CPCU) and Certified Insurance Coun-selor (CIC) designations.

CNA Appoints Hallstrom to Lead Cyber

Chicago-based insurer CNA has named David Hallstrom to assistant vice president and industry leader, Cyber Insurance. In this role, Hallstrom is responsible for CNA cyber product management.

Hallstrom has more than two decades of experience in tech-nology, cyber and information risk insurance. He is frequent speaker and blog author on cyber risk. Prior to joining CNA in 2008, he held management positions at Risk Placement Ser-vices, Zurich North America, Near North National Group and Aon.

Hanover Wins Automation Award from NetVU

In recognition of its investments in innovative technologies, streamlined workflows and its deep commitment to indepen-dent agents, The Hanover Insurance Group, Inc. has earned the NetVU Automation Excellence Award for the second consecutive year. The award was presented to The Hanover at NetVU16, one of the largest insurance trade technology shows in the country.

The Automation Excellence Award is presented annually by the users group to an insurance carrier that implements leading technology solutions that help simplify processes for independent agents nationwide, empowering agencies to grow.


selected by a panel of judges comprised of highly respected leaders from the wealth management community, including heads of family offices, wealth advisory firms, banks, law firms and others.

WAHVE Adds Rick Morgan to Lead Marketing

Rick Morgan, a technology and marketing leader in the independent agency chan-nel, has joined Work At Home Vintage Ex-perts (WAHVE) as senior vice president of marketing.

WAHVE, formed in 2010, is an innovative talent solution that engages vintage insur-

ance professionals “phasing” into retirement who work re-motely on a contract basis for insurance firms.

Morgan, who served on WAHVE’s advisory board from its in-ception until 2014, also helped guide WAHVE in his most re-cent role of senior vice president of Aartrijk, a marketing firm specializing in the insurance industry.

“Rick’s keen understanding of the industry and his insights into marketing and the digital world are strong assets for WAHVE,” said Sharon Emek, Ph.D., CIC, CEO and founder of WAHVE. “Rick will help guide the next phase of WAHVE’s on-line presence.”

Hodson Joins Brent Re as Senior VP

Brentwood Reinsurance Intermediaries Inc. (BRII), a provider of insurance and rein-surance brokerage services, has appointed William (Bill) J. Hodson, of Burlington, N.C., as senior vice president.

According to Brentwood Reinsurance Pres-ident Keith Fawcett, Hodson will broaden

the reinsurance products and capabilities offered through BrentRe. His focus will be placing and servicing specialty lines reinsurance for traditional carriers, program-oriented business produced through managing general agents, and alternative risk reinsurance placements for captives and risk retention groups.

American Strategic Insurance Promotes Tharpe

American Strategic Insurance (ASI) in St. Petersburg, Fla., has promoted Michael Tharpe to account executive for ASI’s Na-tional Accounts team. Tharpe has worked with ASI for five years, previously serving as account manager.

In his new role, Tharpe is responsible for profitability, strate-gic direction, training, commission and contingency, expense decisions and field visits. u

Patriot National Launches Consulting Group

Patriot National, Inc., a leading provider of technology and outsourcing solutions, has announced the official launch of Patriot Risk Consultants (“PRC”), a subsidiary of Patriot Na-tional that offers loss and safety consulting services across a broad spectrum of industries nationwide.

PRC is dedicated to creating a safe work environment, the protection of physical assets and the resilience of business, and uses a combination of best practices and established standards to deliver best-in-class advice. PRC’s consulting services span health and safety services, including preventing workplace injuries and complying with Occupational Health and Safety (OSHA) regulations, premise operations and prod-uct liability services, federal and state mandated services, and fleet transportation and warehouse safety services.

ACUITY Among “Best Companies to Work For”

ACUITY has moved up to number two in the entire nation on the 2016 FORTUNE “100 Best Companies to Work For®” list. This is the second consecutive year ACUITY was named to the large-company list and a spot in the top three.

“We are tremendously honored and proud to move up to number two in the FORTUNE ‘100 Best Companies to Work For®’ list, and the credit for this accomplishment goes to our people,” said Ben Salzmann, ACUITY President and CEO. “Our knowledgeable, experienced, and enthusiastic people make the difference in delivering on the promise we make as an insurer. Their enthusiasm is the most important component of creating a great workplace and maintaining the culture for which we are known.”

The FORTUNE “100 Best Companies to Work For®” list recog-nizes businesses that have exceptional workplace cultures.

PURE Awarded as “Best Insurance Provider”

Privilege Underwriters Reciprocal Exchange (PURE), the pol-icyholder-owned property and casualty insurer for high net worth individuals and families, was awarded “Best Insurance Product Provider” at the third annual Family Wealth Report Awards 2016.

“PURE is honored to be named Best Insurance Product Pro-vider and recognized alongside so many exceptional organi-zations that serve high net worth families,” said Mark Galante, senior vice president and chief marketing officer of PURE Insurance. “It’s recognition like this that further inspires our team to deliver an exceptional member experience every day.”

The Family Wealth Report Awards were designed to recog-nize companies, teams and individuals who have demon-strated innovation and excellence during 2015. Winners are


CNA is proud to support Tennessee’s independent agents and brokers with customized coverages, local industry knowledge and the strength and stability of an “A” rating by A.M. Best. When you’re looking for a carrier with a broad industry appetite, who understands your commitment to business success … we can show you more.®

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Seminar, please get in touch with me, as participation in this also entitles your agency to a 10% credit for three policy terms. It is a win-win for all.

So what type of business is driving loss payments in Tennes-see? The answer, commercial lines – occurrence based policy form. The money spent on commercial claims in Tennessee is greater than four to one when compared with non-commercial claims and slightly above the national average. These numbers highlight where much of your agency’s exposure is coming from, and emphasizes the necessity of using a thorough check-list for all of your commercial lines clients.

If your agency is not using a commercial checklist or if you don’t think you have a comprehensive list at your disposal, please get in touch with me about the Virtual Risk Consultant, which pro-vides detailed commercial lines checklists on more than 600 lines of businesses, and is available to all Insurors members at reduced rates.

With so much of the total loss dollars in Tennessee stemming from commercial lines business, it makes sense to see what type of agency is driving the loss ratio. Is it the agency that writes a lot of commercial lines business, or the agency that dabbles in it? In Tennessee the commercial lines losses are driven by the agen-cies that predominately write commercial lines business. More than four out of every five dollars spent on a commercial lines claim comes from agencies that write more commercial lines coverage than non-commercial lines coverage. Furthermore,

The Swiss Re Claims Department recently released to Insurors some interesting Tennessee claims data from 2010 through 2015. We thought we would share some of this information with you, as there are several noticeable differences between our state and the national averages during this 6-year time period.

Perhaps the most eye-opening statistical example pertains to the person in the agency alleged to have committed the error, when looking at claim severity. In Tennessee, owners/partners are the employee most likely to be accused of committing an error. This happens roughly four-and-a-half times more often than it does on the national average. If you add in claims made against producers you get more than two-thirds of all loss dol-lars paid on Tennessee Agents E&O claims. Meanwhile, Ten-nessee Licensed CSR claims cost only one fourth of what the national average is for Licensed CSR claims.

It is crucial to maintain a proper and positive E&O culture in your agency, from owners to clerical personnel. Agencies that have open discussions with agency personnel regarding E&O create an atmosphere where agency staff are comfortable making managers aware of a potential claim, which in turn helps with the claims process.

Swiss Re Corporate Solutions data also reveals that agencies that attend an E&O Risk Management seminar have fewer overall claims, and the more agency employees who attend the seminar, the better the claims statistics become. So if your agency has not participated in the E&O Risk Management

Some Perspective on E&O Claims

Tennessee Claims Data Shows Trends by Stephen Holmes, Insurors E&O Specialist


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Tennessee’s average is 17% higher than the national average.

Another substantial deviation Tennessee has from the national norm comes from the transaction type. Nationally, alleged er-rors occur more frequently with new customers or new cover-ages for existing customers. In Tennessee, most claims stem from renewal business and at a rate double that of the national average. On the flip side, the total loss amounts on new busi-ness for both new and existing clients in Tennessee is half the national average. This shows the necessity to properly assess all risks at renewal, but in particular your commercial lines clients.

Finally, far and away the process step that is producing higher loss amounts in Tennessee is a recommendation error, such as type or limits of coverage. This process step accounts for more than one third of all loss payments and is nearly three-and-a-half more than the second highest process step, risk as-sessment/exposure error. It is also two-and-a-half times higher than the national average.

As you can see, an alleged recommendation error is serious business, and emphasizing documentation of all coverage and limit recommendations is paramount to a strong defense if a claim were to arise. While we know this is more than enough evidence for you to implement and maintain a strong docu-mentation procedure, there is also a major benefit exclusive to Swiss Re/Westport policyholders that gives another incentive. On the Westport E&O policy, if your agency maintains proper

documentation of a recommendation on coverages or limits, and you are subsequently sued for failure to provide such a recommendation, then your agency can earn a 50% reduction on your deductible, up to $12,500. This is called the Deductible Reduction, and is one of the best and most liberal features re-garding deductibles in the marketplace.

While these statistics aren’t necessarily a reflection of what will happen in the future, they do shed some insight on the trends our state has been seeing through the last six years and how we differ from the national average. Hopefully, these facts can serve as a reminder of how crucial it is for all agency person-nel – from CSRs to owners – to use checklists and best prac-tices procedures on all your commercial lines renewals. Don’t forget that Swiss Re policyholders can also visit www.iiaba.net/ eohappens for more information on claims data, case studies, articles on protecting your agency and much more.

If you need more information, or have questions about this article, please contact me at 615.515.2609 or by e-mail at [email protected].

About the Author

Stephen Holmes, CIC, CISR, is the E&O Specialist for Insurors of Tennessee. Stephen has been in the insur-ance industry for 8 years and began his career as an underwriter for Preferred Comp. He is a graduate of the University of Tennessee at Knoxville. u

.

Visit www.iiaba.net/EOContact to connect with your state associa on today.

Prevent. Our exclusive risk management resources help your agency avoid making common preventable mistakes.

Protect.Our superior coverage through Swiss Re Corporate Solu ons and our experienced claims teams are in your corner in the event of a claim.

Prosper. When you know you have the best agency E&O Protec on, you can focus on growing your most important asset–your business.

Swiss Re Corporate Solu ons policyholders: Don’t miss out on the invaluable risk management resources available exclusively to you. Log in to www.iiaba.net/EOHappens to access claims sta s cs, preven on tools, insigh ul ar cles and more.

The Big “I” and Swiss Re Corporate Solu ons are commi ed to providing IIABA members with leading edge agency E&O products and services. IIABA and its federa on of 51 state associa ons endorse the comprehensive professional liability program offered by Swiss Re Corporate Solu ons.

Insurance products underwri en by Westport Insurance Corpora on, Overland Park, Kansas. Westport is a member of Swiss Re Corporate Solu ons and is licensed in all 50 states and the District of Columbia.

WHY WALK

WHEN YOU CAN SOAR?

THE BIG “I” PROFESSIONAL LIABILITY PROGRAM

WHY WALKWHEN YOU CAN SOAR?


A.M. Best Rating of “A”(Excellent) FSC “XIV”

Connect with us

I AmTrustedJoin our unmatched team of independent agents offering workers’ comp and commercial lines insurance, including:

• Small-Business, Multi-Line Coverage

• 3rd Largest National Workers’ Comp Provider

• A.M. Best Rating of “A” (Excellent)FSC “XIV”

Get started with an application at amtrustnorthamerica.com or call 877.528.7878 for more information.


You have goals.Nationwide® has independent solutions to help you meet them.

Whether you’re looking to

build, grow or sell your agency,

Nationwide offers you choice when

it comes to independent solutions

and partnership opportunities.

Let’s start a conversation about your independent opportunities

with Nationwide.

Not all Nationwide affiliated companies are mutual companies and not all Nationwide members are insured by a mutual company. Nationwide, Nationwide is On Your Side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2015 Nationwide NPO-0627AO (08/15)

Dan SchillingPhone: (423)[email protected]


MeetingsSpring Calendar Filling Up With Great EventsInsurors of Northwest Tennessee Golf June 14

The Insurors of Northwest Tennessee will host their annual golf outing on Tuesday, June 14th at Dyersburg Country Club at the Farms. The event will feature an informal lunch, a reception and the famed pork chop dinner after the tournament. For more information, contact Matt Russell at [email protected] or download the flyer at http://www.insurors.org/pdf/InsurorsNWTNFlyer16.pdf

Insurors of Nashville Golf Tourney August 8th

The Insurors of Nashville annual golf tournament was rained out, and has been rescheduled for Monday, August 8th at Old Natchez Country Club. The event will feature a lunch, golf outing and social, with proceeds benefiting Tom Joy Elementary School. For more information, please visit www.insurorsofnashville.com.

Chattanooga Local Golf Outing August 29th

The Chattanooga local board will hold their annual golf tournament on Monday, August 29th at Chattanooga Golf & Country Club. For more information, please contact Mike Langley at [email protected].

Knoxville Local Luncheon August 30th

Insurors will host a local luncheon in Knoxville on Tuesday, August 30th at Buddy’s BBQ on Kingston Pike. The luncheon will feature a recap of the 2016 bills passed into law that effect our industry, as well as an update on the Association goals and events. Find more information or RSVP now at www.insurors.org.

Insurors 123rd Annual Convention 10/29-11/1

The Insurors of Tennessee 123rd Annual Convention will feature exhibits, education, guest speakers, entertainment and events geared to enhancing the experience and success of Tennessee’s Independent Insurance Agent & Broker community. The event will take place at the Omni Hotel in downtown Nashville on October 29th-November 1st. We will be announcing more details in the coming weeks.

For more info, please visit www.insurors.org/IOT/Convention/IOT/Convention/IOT_Convention_Home.aspx. u

Preferred Comp of Tennessee is endorsed by

the Insurors of Tennessee (IOT) to provide member

agencies competitive workers’ compensation options.

Meadowbrook Insurance Group, Inc.

Low to Moderate Hazard Workers’ Compensation

• Artisan Contractors

• Auto Repair & Service

• Goods & Services

• Hospitality

• Light Contracting

• Light Manufacturing

• Office/Clerical• Physicians

• Restaurants

• Wholesale/Retail

www.preferredcomp.com

YOUR FIT FOR WORKERS’ COMP AND MORE!

For more information or to get started,

please contact:

Keller Chapman (615) 406-8033 [email protected]

Josh Allen-Bottoni (978) [email protected]

BigI TN VA 8.5x11 Intro.pdf 1 1/4/15 8:47 PM

Disability: A Gamble Worth Taking? by Christine Munoz, Big “I” Dir.

Member Tips

Your most important asset is not your car, house, boat or other possessions. It is your ability to earn an income. An accident or illness that causes a disability could end your ability to earn.

While most people think it won’t happen to them, statistics show that this isn’t true. According to the Commissioners Disability Table it is far more likely that your clients will suffer a disability than be in an auto accident or have a house fire. In fact, the chances of suffering a long term disability of 90 days or more before an individual reaches the age of 65 are unbelievably high: a 25-year old has a 52% chance of becoming disabled; a 35-year old has a 48% chance; and a 50-year old has a 34% chance. The odds are not in your favor.

People often incorrectly believe they will be covered by Social Security, work comp or their own savings. This simply isn’t true most of the time. Social Security Disability is often difficult to obtain since the restrictions state the client must be completely disabled with no hope of recovery for at least one year. Work comp only covers if you are injured on the job. And personal savings goes fast when trying to keep up with the mortgage, care and other obligations. Although these programs can help supplement your income you cannot realistically expect to recoup your entire income using these sources.

A quality disability policy will provide coverage in the event of disability. Take the time to educate your clients about the facts and the options available to them.

Big “I” Employee Benefits offers a variety of Disability Solutions through our partnership with Crump Life Insurance Services. Visit us at www.iiaba.net: Products/Crump Life Insurance Services to learn more.

About the Author

Christine Muñoz is the Big “I” Director of Employee Benefits. She may be contacted at [email protected] for more info. u

ACUITY (920) 458 - 9131 www.acuity.com 38Allstar Financial Group (877) 950 - 3222 www.allstarfg.com 22Amerisafe (800) 897 - 9719 www.amerisafe.com 17AmTrust North America (877) 528 - 7878 www.amtrustnorthamerica.com 49Applied Underwriters (877) 234 - 4450 www.auw.com/us 2Arlington/Roe & Co. (800) 878 - 9891 www.arlingtonroe.com 13Auto-Owners Insurance (615) 373 - 5200 www.auto-owners.com 55Bailey Special Risks, Inc. (800) 768 - 7475 www.bsrins.com 9Beazley Data Breach Coverage (615) 515 - 2609 www.insurors.org 32Berkley Southeast Insurance Group (615) 932 - 5508 www.berkleysig.com 19, 20Berkshire Hathaway Guard Insurance Cos. (800) 673 - 2465 x4567 www.guard.com/apply 24Brentwood Services Administrators (800) 524 - 0604 www.bwood.com 24Builders Mutual (800) 809 - 4859 www.buildersmutual.com 22Burns & Wilcox (800) 341 - 4844 www.burnsandwilcox.com 15CNA Insurance (800) 251 - 5852 www.cna.com 45CompTrust AGC Tennessee (800) 524 - 0604 www.comptrustagctn.com 26Consumers Insurance (615) 896 - 6133 www.ciusa.com 52Donegal Insurance Group (800) 277 - 7442 www.donegalgroup.com 7EMC Insurance (800) 239 - 2005 www.emcins.com 34FCCI Insurance Group (800) 226 - 3224 www.fcci-group.com 16INSBANK (866) 866 - 4268 www.insbanktn.com 11J.M. Wilson (800) 595 - 0063 www.jmwilson.com 42Johnson & Johnson (931) 704 - 0810 www.jjins.com 28-29Kaplam University (877) 761 - 9150 www.kaplanfinancial.com/firm-insce 47Keystone Insurers Group (800) 416 - 5498 www.keystoneinsgrp.com 40MetLife Auto & Home (615) 812 - 4811 www.metlife.com 26The National Alliance for Insurance Ed. (800) 633 - 2165 www.thenationalalliance.com 37National Security Group (800) 239 - 2358 x267 www.nationalsecuritygroup.com 41Nationwide (614) 948 - 4107 www.nationwide.com 50Penn National Insurance (800) 395 - 0518 www.pennnationalinsurance.com 56Preferred Comp/Meadowbrook (800) 755 - 8090 www.meadowbrook.com 30, 51Preferred Property Programs (888) 549 - 2465 www.umbrellaprogram.com 42Securerisk (770) 723 - 8096 www.securerisk.com 38South & Western (800) 492 - 5351 www.southandwestern.com 33Summit Holdings (800) 971 - 2667 www.summitholdings.com 26

Directory of Advertisers Advertiser Phone Website Page

register now at insurors.org

INSURORS 123rd ANNUAL CONVENTIONOCTOBER 29 - NOVEMBER 1 | OMNI NASHVILLE

Thank you, agents.

Auto-Owners has always been

dedicated to the independent agency

system and proudly standing behind

the agents who represent us. We

would like to thank you for your

continued loyalty, which has helped

us achieve tremendous growth and

accomplishments over the years.

2500 21st Avenue South Suite 200Nashville, TN 37212

We look for the best independent

agents and build relationships

that last the duration. We are

committed to the independent

agency system as the only means

to deliver our products. Because

of that, we work hand-in-hand to

help our agencies grow profitably.

Our agents set us apart.

www.PennNationalInsurance.com

Business • Surety • Auto • Home

PRSRT STDU.S. Postage

PAIDNashville, TN

Permit No. 380

the tennessee insuror - may/june 2016

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