Primary Agent - February 2013 - DE Edition

DELAWARE

ALSO INTHISISSUE:________________

How pollution liabilitypolicies differ

Assessing an E&O culture

9 tips to keep data secure

While everyone is talking about changes these days, we remain consistently committed to the values

and people who have helped us get where we are today. We remain loyal to the independent agents

who have delivered value to our customers every day for over 120 years.

Of course, there have been changes like advances in technology, more aggressive marketing and expanded lines

of business. At Donegal, we are determined to make any improvements we can to maintain a superior level of

quality.

We feel that consistency and loyalty are the rarest of commodities.

If your insurance agency could use a little consistency please give us a call.

www.donegalgroup.com

Consistent, Determined & Loyal

Call Rick Kelley,Senior Vice President800-877-0600

Getting on board with IA&B’s Marketing Center

The train has left the station: Branding your agency and marketing to consumersis no longer a “should do.” It’s a “must do.” Direct writers are chipping away atindependent agents’ personal lines market share. It’s time to fight back by gettingon board with the IA&B Marketing Center. Read on for a whistle-stop tour.

Page 12

Positioning members for success in the battle for business

IA&B’s fourth annual Executive Management Conference drew 150 independentagency owners and principals from throughout the tri-state area to historicGettysburg, Pa. The two-day event combined first-rate learning opportunitieswith ample networking and — of course — a few Civil War history lessons.

Page 18

Orange County Chopper rolls into ExecutiveManagement Conference

Fresh off of the Discovery Channel, the Trusted Choice® "Chopper for Charity"made a pit stop Dec. 11 at IA&B’s Executive Management Conference inGettysburg, Pa.

Page 22

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

Copyright 2013. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

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

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

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

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office. Ride-along enclosed.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2013-2 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

4 Chair of the Board’s Message5 Member FAQ6 State News8 Preventing E&O10 Coverage Corner23 Glance at Events

25 IA&B Partners26 Technology UpdateIBC Advertisers IndexIBC Classified AdsIBC Last & Least

In every issueMission Statement

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

Get social with IA&B

PennPRIME is the municipal entity specialist that can clearly illustrate ways to reduce risk. Formed, owned, and governed by our members, PennPRIME offers an array of products and services that are custom-tailored for Pennsylvania’s cities, townships, boroughs, and authorities.

Composed of two insurance Trusts, PennPRIME provides comprehensive property, liability and workers’ compensation coverage as well as unique service programs like grants, training opportunities and sample loss control policies.

Imagine a relationship with an organization that has the leadership,

risk management off your shoulders. Breathe easier with the right coverage. Imagine yourself a member of PennPRIME…call today!

Imagine lower riskWe’re specialists that keep you out of the heat

PennPRIME is a service program of the Pennsylvania League of Cities and Municipalities

A strong company just got stronger!

We are proud to have joined the Berkshire Hathaway Group – and give you one more reason to consider

requesting a GUARD agency appointment. Visit www.guard.com/apply or call 800-673-2465, ext. 4567!

Property and casualty insurance for small- to mid-sized employers – workers’ compensation coverage is our traditional specialty.

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a Berkshire Hathaway company

[ 3 ]

Driving members to distinction.

OfficersNorman F. Basso, CPCU

Chair of the BoardYork, Pa.

G. Greg Gunn, CICVice Chair of the BoardLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PImmediate Past Chair of the BoardWest Chester, Pa.

MembersJoyce M. Bailey, CIC, CRM, CPIW

Newark, Del.

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

Timothy P. BurrisMifflintown, Pa.

N. Lee Dotson, CIC, AAIWilmington, Del.

Michael P. ErtelColumbia, Md.

John L. FrankenfieldTelford, Pa.

John B. HollisterMilford, Pa.

Diana M. Hornung Hanby, ACSRWilmington, Del.

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

Robert S. Klinger, LUTCF, CPIA+

Germantown, Md.

Douglas A. Loesel, CPCUErie, Pa.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Craig S. Mader Gambrills, Md.

Ann Gallen Moll, CICReading, Pa.

Joseph R. Pastor, CPCU, AAIOil City, Pa.

April E. Ressler, CICAltoona, Pa.

Scott C. Rogers, CPIA*York, Pa.

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

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

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

Board of Directors

[ 4 ]

Norman F. Basso, CPCU

Chair of the Board’sM E S S A G E

Good things are happening

This is an exciting time to be an IA&B member. The mid-December Executive Management Conference was electric.Renowned instructors and eager independent agents met inGettysburg to discuss today’s critical agency issues — creating a sales culture, providing 24/7 service, valuing an agency, living an agency brand. If you missed this acclaimed event, turn to pages 18-21 to read more about it.

At the same time, IA&B launched a new Marketing Center. (Read more on page 12.) The initiative is the culmination ofextensive independent agency research to identify and work tocompile tools and services for members to enhance theirmarketing and branding efforts. In the ever-competitive world ofpersonal lines insurance, this is a resource you cannot afford notto utilize.

On top of these, your association is working to elevate andenhance its professional training efforts: from continuing free,members-only Power Hour webinars, to expanding on-demandcourse offerings, to updating licensing-preparation courses.

It truly is an exciting time to be an IA&B member. I encourage you to get involved and take advantage of your membership andall it offers.

Until next month,

Norm Basso

[ 5 ]

ANSWER:Good question. And no, you should not wait for the license renewal. Many producers may not realize that they need to notify the insurance regulator within a certain timeframe, and that timeframe is dictated by state law or regulation. Keep in mind that a change of name could also occur for an agency license and would be subject to the same procedure. In our threestates, the requirements are as follows.

DelawareProof of the name change along with a $10 fee needs to be submitted within 30 days of the name change. The basis is found under § 1707 of the licensing law.

MarylandChanges to a license are addressed under § 10-117 of the Insurance Article, which provides that a producer has 30 days to notify the Maryland InsuranceAdministration (MIA) of a change. In practice, licensedproducers can submit a Producer Licensing Service Request Form to the MIA and include a copy of a marriage certificate, divorce decree or court order. The form can be faxed to 410-468-2399.

PennsylvaniaA licensed producer must notify the Pennsylvania Insurance Department within 10 days of the name change and attach appropriate documentation. Therequirement is addressed in § 37.81 of the regulation.

For more information on licensing requirements, log on to www.iabgroup.com and go to Agency Operations /Licensing.

DO YOU HAVE A QUESTION? Email it to us at [email protected]. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to717-795-8347. We lookforward to answering your questions!

Member FAQ

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Tradition, Community, caringTradition, Community, caringTradition, Community, caring

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QUESTION: I am getting married next week. How do I change my name on myproducer license? Should I wait for the renewal?

Primary Agent | February 2013

State NewsCGL and CPchanges loomingProducers should start preparing formajor changes scheduled to affect theCommercial General Liability (CGL) andthe Commercial Property (CP) programsin the spring. Multistate filings submittedby the Insurance Services Office (ISO)have been approved for an April 1effective date. From liquor liability,blanket additional insured, waterexclusion or coverage for roof surfacing,and many more, the changes impactmany different facets of the policies.

DAIAB members must start preparing forcarrier implementation. As with any ISOfiling, some carriers will automaticallyadopt the changes, others may delay theadoption, and others still may adoptsome of them and file their ownseparate forms, picking and choosing theitems they wish to retain.

To help members keep up with therevisions — and keep E&O at bay —DAIAB developed a course (approved for8 hours of CE) that will allow producersto understand how the changes expandor reduce coverage and, ultimately, howtheir insureds are impacted.

www.iabgroup.com/education

Joann ScottMemorialScholarship appssoon dueSpread goodwill with an application forDAIAB's annual Joann Scott MemorialScholarships. The $1,500 scholarships areawarded to two college-bound studentsplanning to enroll as first-year studentsat an accredited college or university inthe fall 2012 semester or to full-timeundergraduate or graduate students.

Scott is remembered for her dedicationto DAIAB and for introducing theAccredited Customer ServiceRepresentative designation program toDelaware agents. Interested studentsshould be directed to the DAIAB websitefor more information and an application.

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

[ 6 ]

New memberresourcesNotifying clients when selling orpurchasing an agency

Announcing to your current customersthat you have purchased or sold youragency just became easier. DAIABdeveloped a sample letter that you canpersonalize based on your owncircumstances and use to notify yourclient base. The two samples have beenadded to the tools already available onthe association's agency perpetuationresources Web page.

www.iabgroup.com/de/ag_perpetuation/resources

Colony Specialtyexits agents E&OmarketColony Specialty Insurance Company,an Argo Pro company, began its exit ofthe retail E&O marketplace this month.Non-renewals of existing policies began Feb. 1.

IA&B’s sales center – which is theorganization’s independent agency,offering agency E&O and umbrellapolicies in Delaware — is committed toworking with its affected policyholdersand to ensuring a smooth transition to a new carrier.

Customers can expect to hear fromIA&B representatives prior to their nextrenewal. In the meantime, questionscan be directed to the sales center bycalling 800-998-9644, option 2.

In case you missedit … changes to WCmods in effectThe National Council for CompensationInsurance (NCCI) – the designatedlicensed rating and statisticalorganization in many states, ascompared to the DelawareCompensation Rating Bureau – filed achange in its Experience Rating Planformula effective starting with Jan. 1renewals. As a result, some clients’mods will change, even without achange in their loss experience, and thiswill impact their overall premium.

Producers with clients who areemployers in an NCCI-designated state (including Maryland, Virginia or West Virginia) should review DAIAB’s resource.

www.iabgroup.com/md/ncci_mod

Residual marketgoes electronicPlacing business with the DelawareInsurance Plan (DIP) recently becameeasier. The Delaware CompensationRating Bureau announced that the DIP (residual market) now offers an online tool for electronicallysubmitting applications and depositingpremium funds.

www.dcrb.com (select “Circulars”)

Last call forMember AgentPanel membersSpeak up now to speak out over thenext two years. DAIAB is recruitingparticipants for the 2013-2014 MemberAgent Panel (MAP) cycle.

DAIAB’s MAP consists of approximatelya dozen members — typically agencyprincipals and producers — andassociation leadership who cometogether to informally discuss issuesaffecting agents. MAP meetings areinstrumental in obtaining memberfeedback and, in turn, ensuring thatDAIAB evolves and remains relevant.

Beginning this year, participants will attend one three-hour meetingeach April in Dover. A statement-of-interest form is available via the Webaddress below.

www.iabgroup.com/get_involved

[ 7 ]

[ 8 ]

CURTIS M. PEARSALLCPCU, AIAF, CPIA

Curtis M. Pearsall, CPCU, AIAF,

CPIA, president of Pearsall

Associates Inc. and special

consultant to the Utica

National E&O Program,

supplied this article.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your E&O coverage,

contact IA&B at 800-998-9644

or [email protected].


The question posed in theheadline is probably not easyto answer. After all, there aremany issues to factor inmaking this determination. Abetter way to look at this isby comparing your E&Oculture today with a certainpoint in the past. Thequestion then becomes: Isyour E&O culture strongertoday than it was last year atthis time? In a recent industrysurvey, 85 percent of theagencies that respondedindicated an improvementover the previous year, with70 percent of that 85 percentindicating a substantialimprovement was made.

Creating and maintaining aculture of constantimprovement is key. It isprobably best to evaluateyour agency on a continuum.As you may not know wherethe end is, the goal is to beconfident you are makingprogress and improving.

If your agency is unsurewhere it stands or if you have not given it much

thought, here are some areas to consider:

Management/leadershipAs with most businesses, theculture of the organizationstarts with management/leadership. The staff willfollow suit to the degree thatmanagement “walks thewalk” and “talks the talk.”Thus, where it is readilyapparent that agencymanagement is committed toa strong E&O culture, thatmessage will heavily drivestaff behavior.

Conversely, if agencymanagement does not truly embrace an E&Oculture, the agency is onlyfooling itself and will neverachieve the desired level ofE&O commitment.

Staff engagementThis area will undoubtedlyheavily determine anagency’s E&O culture. Why?Agencies don't makemistakes, people do. Twoagencies could have the

same procedures andexpectations, yet have adifferent culture within theirrespective shops. E&O isserious stuff, requiring every staff member thatbelieves in the cause toperform their duties ethicallyand professionally.

Because an agency’s staffinvolves many differentfunctions and disciplines,assessing the agency’sculture requires anassessment of each person.While producers and CSRsare heavy drivers of E&Oclaims, virtually everyone inan agency, including thereceptionist and claims team,has the potential to cause,and are causing, E&O claims.

Educating your staffFor the staff to perform theirjobs professionally andefficiently, they must possessa high level of proficiency inthe technical aspects of theirpositions. Your customerscount on the staff’s expertiseon an insurance matters. Inaddition, training in the areas

HOW WOULD YOU ASSESS YOUR AGENCY’SOVERALL E&O CULTURE?

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

[ 9 ]

of sales, customer service andsystems is also extremely important.As you develop goals for each of your staff, identify educationalopportunities based on yourassessment. This may includecourses, designations, seminars, etc. Your local agents’ association is a great resource for this type of material.

Moreover, exposure analysischecklists are an excellent tool foragencies to totally understand classesof business, and the various insuranceissues and exposures.

Educating your customersMany agencies would contend thatthe best customer is an educatedcustomer. Has your agencyundertaken a campaign to educatecustomers on various coverages andhow these coverages respond? Thereare many approaches to accomplishthis, including producing a printed orelectronic newsletter to send tocustomers. There are many topics toaddress. Some apply regardless of thetime of year, while others are moreseasonal (e.g., boating, children goingoff to college, etc.).

A great approach is to perform an annual agency review for each of your customers. This will help your customers understand theircoverage and may also identify anyexposures the customer has that arenot properly insured. It is definitelybetter to discover and discuss theseissues before a loss occurs asopposed to afterward.

DocumentationWhat is the quality and timeliness ofthe documentation in the customer’sfile? For example, documentationstating “spoke with insured regardingtheir homeowners insurance” isunacceptable as it does not provideany real details. The best rule of

thumb for documentation is thatanother staff member should be ableto review the documentation andknow exactly what the issues are aswell as any open items.

AuditingTo truly assess the E&O culture andcommitment of the agency staff, it is necessary to review their files and the detail each contains. Howwell are agency procedures beingadhered to? What is the level andquality of the file documentation? Toeffectively perform this function,develop an audit form addressing thekey issues, and then perform periodicreviews of a pre-determined numberof files for each staff member. Whilethis takes time, it is a critical todiscover any issues before theybecome a problem.

Customer accountabilityIt seems that with many E&O claims,the customer does not take anyresponsibility for the decisions maderegarding his or her insuranceprogram. Some possible approaches:

w Provide options for the customerto consider and require thecustomer to sign off on thecoverages and limits selectedand rejected.

w Send a cover letter with thepolicy to the customerrequesting that the customerreviews the policy and advisesyour agency of any questions or problems. An example ofsuch a letter:

Enclosed please find the renewalof your Businessowners packagewritten with XYZ Insurance Co.You will be receiving yourpremium invoice shortly.

It is important that you take thetime to read this policy toensure your understanding of

the limits and the coverages. Ifthere are any questions, or ifyou wish to make any changesto this policy, please contact theagency promptly.

The limits of insurance havebeen selected by you, and wecan’t guarantee that the limitselected will be sufficient in the event of a major loss. Higher limits are available upon your request.

Thank you for your confidencein our agency. We appreciateyour business.

Sincerely,

Growth and improvementIf you are unsure that the agency’sculture has been enhanced comparedto last year, or even has regressed,don’t be disheartened. Start today ona path to growth and improvement. Itwill be time and energy well spent.

EducationThe author touts theimportance of staff education— and recommends your localagents’ association for thetraining. Look no further thanIA&B for award-winningcontinuing education programsthat include loss-controlseminars, licensing exam prep and special-topicprograms in both classroomand on-demand formats.

www.iabgroup.com/education

CoverageC O R N E R

[ 10 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.


The activities involved inshale gas extractionpotentially create liabilityexposures, not only duringthe extraction process, butalso for the transportation ofthe generated wastewater.

Between one and eightmillion gallons of fluid and80 to 300 tons of chemicals,collectively known as“fracking fluid,” are used tofracture a well. It is possiblethat a well will be fracturedseveral times throughout itsproductive life. Fracking fluidconsists of sand and water,and possibly up to 200different types of chemicals.The specifics of thechemicals are usually notdisclosed to the publicbecause the fluids are atrade secret.

Once injected into the well,between 60 and 90 percentof the fluids remain in thewell. The flow-back waterwill not only contain thevarious chemicals that arepart of the fluid, but also

natural constituents such asradon, metals, minerals andnatural gas which werecollected on its way downthe well and back up again.

It is possible that some ofthe chemicals used to createthe fluids have causednegative health effects onrespiratory, neurological,central nervous andreproductive systems.However, the 2005 EnergyPolicy Act exemptedhydraulic fracturing from theSafe Drinking Water Act and preserved the privacy of the composition offracking fluid. Legislation iscurrently pending to reversethis portion of the EnergyPolicy Act, and theEnvironmental ProtectionAgency is reassessing theeffects of fracking fluids ondrinking water.

The rapid expansion of wellshas also created additionalexposures due to thetransportation of freshwater, sand and chemicals to

the wells, as well as haulingthe waste water from thewells to disposal sites. Many of the wells arelocated in areas where theroadways are not designedfor heavy truck traffic andmay not be adequatelymaintained. This certainlyincreases the possibility ofroadway accidents.

It’s obvious that theproduction of natural gashas definitely created alltypes of pollution exposuresfor the land owners, wellowners, drilling companiesand trucking companies.They can’t depend on theirgeneral liability andcommercial auto policies tocover those pollutionexposures. Anybody writinginsurance for those folksknows that. The solution is apollution liability policy.

The question then becomes,“What are the terms,conditions and limitations ofthe particular pollutionliability policy I’m writing?”

HYDRAULIC FRACTURING = POLLUTION = CLAIMS

There is no standard pollution liabilitypolicy. No two are exactly the same.

Warren Drilling Company was sued bya homeowner who alleged hisdrinking water was contaminated bythe discharge of pollutants andindustrial waste, including frackingfluids, and resulted from Warren’soperations. Warren forwarded theclaim to its CGL insurer, ACE AmericanInsurance Company. The ACE CGL hadan “Energy Pollution Liability ExtensionEndorsement” attached.

Ace denied Warren’s claim based onthe language in their endorsement.The endorsement contained fiverequirements for a covered loss,including:

1. The discharge commencedabruptly and instantaneously andcan be identified as havingcommenced entirely at a specifictime on a specific date during thepolicy period;

2. The discharge was known by aninsured within 30 days of thecommencement of the dischargeof pollutants; and

3. The discharge was reported to us within 60 days of thecommencement of the discharge of pollutants.

In a letter to Warren denyingcoverage, ACE stated that Warrenfailed to satisfy all five requiredconditions. A few years ago we usedthe terms “sudden” and “accidental.”The ACE endorsement uses fancylanguage but says the same thing.Obviously, this discharge was not“sudden,” and Warren did not knowof the discharge within 30 days of thecommencement and did not reportthe discharge to ACE within 60 days of the commencement.

Warren settled this claim with thehomeowner and has filed suit against ACE. The case of WarrenDrilling Company, Inc. v. ACEAmerican Insurance Company &Equitable Production Company iscurrently pending.

Again, pollution liability policies havedifferent terms, conditions andlimitations. Be careful!

Y’all take care!

[ 11 ]

Learn morePollution Exposures & Coverages, one of IA&B’s newest on-demandcourses taught by Jerry Milton, tackles common environmentalexposures and the provisions of various Pollution Liability policies.

As federal and state governments institute numerous environmentalliability regulations, many businesses have become subject toincreased environmental liability and financial loss exposures. The unendorsed CGL policy provides very little coverage for thedischarge or release of a pollutant. And many insureds have nopollution coverage under their CGLs which have been encorsedwith the Total Pollution Exclusion endorsement. A separatePollution Liability policy is often needed.

www.iabgroup.com/on-demand

the “A” way — Attitude, Assistance, Adaptability

ATLANTIC SPECIALTY LINES

Independently OwnedReliable & Experienced Underwriters

www

DIANNE SPRAGUE

BARBARA BEAVERSON

PERSON

MARKETING

Getting on board withIA&B’s Marketing CenterA whistle-stop tour

The train has left thestation: Branding youragency and marketing toconsumers is no longer a“should do.” It’s a “must do.”Direct writers are chippingaway at independentagents’ personal linesmarket share. It’s time tofight back by getting onboard with the IA&BMarketing Center.


Over the past 10 years, independent agents’ sales inpersonal lines have plummeted. The lost marketshare equals $4.5 billion in net premium, whichmeans more than $540 in lost commission.

While independent agents fall far short in advertising budgetscompared to direct writers, they have strengths that theircompetitors lack. It’s a matter of communicating that valueand leveraging it to reclaim market share.

Enter IA&B’s Marketing Center. The initiative is theculmination of several years of member research. It includesthe base tools, services and education that small- to medium-size independent agencies need to consider when evaluatingtheir agency brand and marketing and communication efforts.The following pages detail the first generation of components.

Consumer EducationYou’re the expert. Position yourself as a trusted insuranceexpert and advisor. Stay visible to consumers (currentcustomers and prospects) by communicating regularly onproper coverage, not about price.

IA&B saves you the time and effort with a library of insuranceinformation that you can use to respond to questions – or toproactively educate your target market. Vetted by insuranceand legal experts and reviewed by independent agents, thecontent (see sidebar for topics) is truly turnkey, available asraw text for copying and pasting into an email, newsletter orother communication vehicle and as fully designed,customizable marketing flyers.

Consumer CommunicationYou’re more than an 800 number. Differentiate yourself fromdirect writers by showcasing the service and expertise thatyou provide customers. And rely on a regularly scheduledagency newsletter or as-needed email blasts to serve asconsistent, credible communication vehicles.

IA&B makes it easy and cost effective for you to communicatewith customers. Through partnerships with Strategic Agenciesnewsletter service and GetResponse email blasts, you havediscounted access to print and electronic communicationservices. From customizable templates to simple mailing-listmanagement, these offerings — combined with ready-madeconsumer content from IA&B (see above) — make consumercommunication manageable.

Trusted Choice®You have a seal of approval. Leverage the national brand forBig “I” independent agents by promoting yourself as a Trusted

O

[ 13 ]

Consumer content topicsw Collision Damage Waiver (for rentals)

w Condo Insurance Basics

w Cyber Liability

w Employment Practices LiabilityInsurance

w Flood Insurance & Water/Sewer Backup

w Homeowners' Insurance

w Insurance for College Students

w Limited-Tort vs. Full-Tort

w Personal Umbrellas

w Why Choose an Independent Insurance Agent

Look for additional consumer content inthe coming months.

Visit the Marketing Center:

www.iabgroup.com/de/marketing

[ 14 ]

MARKETING

Choice agent. Join 26,000independent agencies across thecountry that are adopting thebrand and its increasinglyrecognizable logo as a symbol fortrustworthy insurance service.

IA&B offers the turnkey tools you need to live the TrustedChoice brand. From a step-by-step guide to branding, to logos, to ready-to-use ads thatposition you as a Trusted Choiceagent, the Marketing Centerresources simplify adoption ofTrusted Choice.

Project CAPYou can compete online. Competein the digital marketplace — evenwithout the advertising budget ofa gecko. Utilize the joint power ofTrusted Choice agentsnationwide to collectively gainsearch engine optimization.

IA&B connects you with ProjectCAP to expand your onlinepresence and reach theincreasing segment of consumers(75 percent, at latest check) whostart their search for insuranceon the Web. In addition tooffering online marketingstrategies, Project CAP will beat

direct writers at their own gameby channeling all Trusted Choice agents together into onesearch-engine-optimized force.Insurance shoppers will befunneled to trustedchoice.com,and then qualified leads will be dispersed to their localTrusted Choice agent.

Make-A-Wish®You’re a vital part of yourcommunity. Be an agent ofchange and support your regionalMake-A-Wish chapter. You liveand play, worship and raise yourfamily in the same places thatyour customers do. Demonstrateyour commitment to communityby supporting the Make-A-Wishmission to grant wishes for localchildren with life-threateningmedical conditions.

IA&B simplifies joining the cause,the cause that Trusted Choiceagents across the country aresupporting. And when you joinyour fellow independent agenciesto support Make-A-Wish, thebenefit of your collectivegenerosity on the charity — andthe secondary benefits ofadvancing the image of theindependent agency system andTrusted Choice brand — growexponentially. IA&B providesopportunities to join inassociation-wide fundraisingevents and resources to supportagency-level charitable giving.

PR/Media RelationsYou have a message worthhearing. Position yourself as the industry expert you are.Share your insurance insight

MUTUAL BENEFIT GROUPHuntingdon, Pennsylvania

www.mutualbenefitgroup.com

104 years of keeping promises to policyholders.

Our value isOur value is crystal clear .crystal clear .

MBG. what a gem.

160 employees with a collective 3500 years’ experience in the insurance industry.

years running as one of the the top 3 insurance carriers in our region, according to an agent survey.

consecutive years since 2009 on the list of Best Places to Work in Pennsylvania.

our value is crystal clear.the numbers prove it.

e

c

with consumers (customers and prospects) through localmedia outlets.

IA&B streamlines mediaoutreach. Resources includemedia outreach strategies,template press releases and aprint-media contact database,along with step-by-stepinstructions on how to use each.IA&B simplifies your creation andimplementation of a PR strategy.

Marketing LibraryYou have a plethora of resources atyour disposal. Take advantage ofthe resources available to you.Read up on the latest tricks of the

marketing and branding trade,written by experts whounderstand small businesses andthe insurance marketplace.

IA&B compiles what you need toknow in one place. A dynamicresource library provideseducation on marketing andbranding principles. Theinformation shares thebackground necessary to bestplan your agency’s course ofaction to regain personal linesmarket share. IA&B is committedto updating the library based on members’ feedback andchanging needs.

Next Stop? SuccessThese initial offerings are only the beginning. IA&B isinvested in this initiative andcommitted to independentagencies’ success. Theorganization encourages memberfeedback and is poised to adaptand expand the Marketing Centerin the months and years ahead.All aboard!

[ 15 ]

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G. Greg Gunn, CICIA&B Service Group Vice Chairman

Gunn-Mowery LLCLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PIA&B Service Group Immediate Past Chairman

Francis Hall Insurance ServicesWest Chester, Pa.

Norman F. Basso, CPCUIA&B Service Group Chairman

E.K. McConkey & Co. Inc.York, Pa.

Henry “Butch” Bradley Jr.Bradley Atlantic LLC

Forest Hill, Md.

N. Lee Dotson, CIC, AAIDAIAB Vice Chairman

Bellevue Insurance ServicesWilmington, Del.

Michael P. Ertel Sr.The Jacobs Company Inc.

Columbia, Md.

John L. FrankenfieldFranconia Insurance & Financial Services

Telford, Pa.

Diana M. Hornung Hanby, ACSRThomas J. Hornung & Associates

Wilmington, Del.

Jocelyn R. Howard-Sinopoli, CIC, CISRIA&B of Pennsylvania Vice Chairwoman

C.W. Howard Agency Inc.Butler, Pa.

John B. HollisterRodgers-Olver-Polley Insurance

Milford, Pa.

Joyce M. Bailey, CIC, CRM, CPIWDAIAB ChairwomanAAA Mid AtlanticNewark, Del.

Timothy P. BurrisSausman Insurance Agency

Mifflintown, Pa.

2012-2013 Board of Directors

Scott C. Rogers, CPIAIIABA National DirectorThe Glatfelter Agency

York, Pa.

David B. Wasson Sr., CICWasson Insurance Agency Inc.

State College, Pa.

Douglas A. Loesel, CPCULoesel-Schaaf Insurance Agency Inc.

Erie, Pa.

Michael F. McGroarty Sr.IA&B of Pennsylvania Chairman

McGroarty & Bradburn Insurance Inc.Pittsburgh, Pa.

Ann Gallen Moll, CICGallen Insurance Inc.

Reading, Pa.

Joseph R. Pastor, CPCU, AAIBarr’s InsuranceOil City, Pa.

April E. Ressler, CICTeeter Insurance Agency Inc.

Altoona, Pa.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARMIIABA National DirectorS.T. Good InsuranceNew Castle, Del.

Robert S. Klinger, LUTCF, CPIAIA&B of Maryland Chairman

PIA National DirectorKlinger and Associates Inc.

Germantown, Md.

Craig S. MaderIA&B of Maryland Vice Chairman

Craig S. Mader Insurance Agency Inc.Gambrills, Md.

ASSOCIATION AT WORK

Positioning membersfor success in the battlefor business2012 Executive Management Conference in review

The battle lines are drawnand, thanks to the 2012Executive ManagementConference, IA&Bmembers are betterpositioned to win business.

See pages 20-21 for photos

from the conference.


IA&B’s fourth annual Executive ManagementConference drew 150 independent agency owners andprincipals from throughout the tri-state area to historicGettysburg, Pa. The two-day event combined first-rate learning opportunities with ample networking and — of course — a few Civil War history lessons.

LearningThe conference kicked off on Tuesday, Dec. 11 with“Developing, Marketing and Living Your Agency Brand,” an afternoon-long workshop taught by Robert Allen Paul,president of Company of One. Attendees learned how to take the marketing concepts used by Fortune 500 companiesand repurpose them to develop and share their agency’sunique brand.

Wednesday, Dec. 12 offered a full day of workshops.Participants chose their path among concurrent sessions tocustomize the learning to their individual agency needs.Nationally recognized instructors — including Chris Burand,Steve Anderson and Maureen Gallagher — presented on staffevaluations and producer compensation, agency valuation,social media and 24/7 service, and creating a sales culture.

Networking No insurance-industry conference would be complete without an opportunity to press the flesh. Attendees andcompany reps talked shop at the sponsor welcome receptionon Wednesday evening. Then they, along with their guests,enjoyed exclusive access to the Gettysburg Museum & VisitorCenter for a private screening of the short film “A New Birth ofFreedom,” a walk through the restored Gettysburg Cycloramaand entry to exhibit galleries.

[ 19 ]

Conference sponsorsand exhibitors A special thanks to these sponsors whosegenerous support made the 2012 ExecutiveManagement Conference possible.

Benefactor sponsors:Donegal Insurance GroupGreat American Insurance GroupHarleysvilleProgressive

Partner sponsors:Cumberland Insurance GroupThe Farmers Fire Insurance CompanyForemost Insurance GroupFrederick Mutual Insurance CompanyHighmark Casualty Insurance CompanyKey RiskMercury Insurance GroupMMG InsuranceMutual Benefit GroupOhio CasualtyPenn National InsurancePrime Insurance CompanyWestfield Insurance

2012 Annual MeetingPreceding the Executive Management Conference, the IA&B Board ofDirectors held its Annual Meeting, where association leadership (see pages 16-17 for a directory) recapped the year’saccomplishments and highlighted initiatives planned for 2013.

Company representatives met with attendees throughout the two-day conference.

ASSOCIATION AT WORK EMC 2012

1

3

4

5

2


1. Attendees spent the firstafternoon learning aboutdeveloping, marketing andliving their agency brand.

2. On day two attendeeschose among break-outsessions to customize theirlearning experience.

3. Robert Allen Paul,insurance industry veteranand marketing expert, led the session on agency branding.

4. A welcome and networkingreception kicked off the event.

5. Attendees mingled withsponsors during breaks.

6. Day one concluded withexclusive access to theGettysburg Museum &Visitor Center.

7. Tuesday evening endedwith a fireside dessertreception at the museum.

8. The museum tour featured a private screening of theshort film, “A New Birth of Freedom.”

7

8

6

ASSOCIATION AT WORK

Orange County Chopperrolls into ExecutiveManagement ConferenceMembers gear up to support Make-A-Wish

Fresh off of the Discovery Channel, theTrusted Choice® "Chopper for Charity"made a pit stop Dec. 11 at IA&B’sExecutive Management Conference inGettysburg, Pa.

Trusted Choice, the consumer brandingprogram for independent insurance agentsand brokers, commissioned OrangeCounty Choppers to create the custommotorcycle to raise money for the Make-A-Wish Foundation®. Following its debuton the Sept. 17 episode of "AmericanChopper," the bike began its yearlong,cross-country travels, which will culminatein its auction to benefit Make-A-Wish.

The chopper's Gettysburg stop coincidedwith the launch of IA&B’s regionalcharitable-giving campaign, spearheadedby independent insurance agents tobenefit Make-A-Wish.

Be an insurance agent of change!Join fellow independent agents in

supporting Make-A-Wish.www.iabgroup.com/de/marketing

Upper left: Trusted Choice agents across the country are hosting thechopper over the coming months to support Make-A-Wish.

Middle: Orange County Choppers customized the motorcycle forTrusted Choice.

Lower left: Joyce Bailey, of AAA Mid-Atlantic in Dover, and herhusband strike a pose with the chopper.

Date Topic LocationFebruary12 CISR Agency Operations Erie, Pa.

E&O Risk Management Seminar Philadelphia, Pa.

12-14 P&C Licensing Study Course Mechanicsburg, Pa.13 CISR Personal Auto Philadelphia, Pa.

William T. Hold: Learning From Losses Pittsburgh, Pa.

14 CISR Agency Operations Altoona, Pa.

CISR Personal Auto Reading, Pa.19 CISR Personal Auto Dover, Del.

20 CISR Personal Auto Baltimore, Md.20-23 CIC Personal Lines Harrisburg, Pa.

21 CISR Personal Auto Mechanicsburg, Pa.27 William T. Hold: Learning From Losses Salisbury, Md.

March

5 CISR Personal Auto Hagerstown, Md.Commercial Changes: Property & CGL Revisions Pittsburgh, Pa.

5-7 L&H Licensing Study Course Philadelphia, Pa.6 CISR Agency Operations Lehigh Valley, Pa.

7 CISR Agency Operations York, Pa.11 CISR Personal Residential Philadelphia, Pa.*

11-14 CIC Personal Lines Erie, Pa.12 William T. Hold: Learning From Losses Lancaster, Pa.

CISR Personal Auto Philadelphia, Pa.*

13 Commercial Changes: Property & CGL Revisions Mechanicsburg, Pa.

CISR Agency Operations Philadelphia, Pa.*13-14 James K. Ruble Ellicott City, Md.

14 CISR Commercial Property Philadelphia, Pa.*15 CISR Commercial Casualty II Philadelphia, Pa.*

19 CISR Agency Operations Pittsburgh, Pa.20-23 CIC Commercial Casualty Newark, Del.

20 William T. Hold: Learning From Losses Mechanicsburg, Pa.

CISR Personal Auto Pittsburgh, Pa.21 William T. Hold: Learning From Losses Baltimore, Md.

26 Commercial Changes: Property & CGL Revisions Philadelphia, Pa.

CISR Commercial Casualty I Wilkes-Barre, Pa.27 CISR Personal Auto Lancaster, Pa.

Commercial Changes: Property & CGL Revisions Lehigh Valley, Pa.

Glance at EventsFEBRUARY & MARCH CALENDAR

[ 23 ]

* = CISR Marathon Week

Platinum Profile

We believe that behind everyaccomplishment you’ll findhard work and a

commitment to excellence. That belief has been a big part of our success.

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For agents in Delaware, Maryland,and Pennsylvania and throughout theMid-Atlantic Region, an appointmentwith Liberty Mutual Insurance nowdelivers a single point of access tostandard commercial lines productsand services for small, midsize andlarge businesses through thecompany’s local territory managers.In addition, National Accountexecutives are available to help withplacement of larger, more complexaccounts. Agents and brokers mayalso access specialty coveragesincluding excess casualty, programs,and umbrella.

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“We are committed to alocal, agency-focused culturethat delivers the responsiveservice and relations thatagents value and need to besuccessful and grow profitably with us.”

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Insurance Agents & Brokers proudly recognizes Liberty Mutual Insuranceas one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level ofsponsorship to our organization.

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

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

Thank you for your continued sponsorship.

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupDonegal Insurance GroupErie Insurance GroupHarleysville InsuranceHM Insurance GroupInsurance Agents & BrokersService Group Inc

Liberty Mutual Insurance

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

GOLD LEVELProgressive Westfield Insurance

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

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance House

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent February 2013

Primary Agent | February 2013 TechnologyU P D A T E

Benjamin Franklin once said that distrust andcaution are the parents of security. Theexpression seems remarkably fresh andrelevant in today’s world, especially when itcomes to protecting sensitive client data.

In fact, this caution is becoming more andmore necessary. In an age of highly portabledata (and of increasing identity theft)1,independent agents have an ever-increasingresponsibility to keep a lock on their clientdata. State and federal privacy and databreach notification laws and regulations, suchas the Gramm-Leach-Bliley Act and the HealthInsurance Portability and Accountability Act(HIPAA), put pressure on you to keep your

clients’ sensitive personal data safe. Evenmore important, if a data breach were tooccur, your company’s reputation would takea nosedive.

In an attempt to simplify a complex area, thisarticle will touch on nine things — some basicand some not-so-basic — that an agency cando to mitigate risk of a data security breach.

1. Keep data in a password-protected, encrypted space.

Because so many of us these days carry ourcomputers around with us, there is alwaysdanger of them being lost or stolen. Whilemost people are honest, unfortunately the

This article was written for Agents

Council for Technology (ACT) by

Kate Gluck, director of marketing,

and Paul Fuller, EVP – product

management, of Strategic

Insurance Software (SIS). Kate and

Paul can be reached at

[email protected] and

[email protected]. This article

reflects the views of the authors

and should not be construed as an

official statement by ACT.

[ 26 ]

9 TIPS TO KEEP AGENCY DATA SECURE

1 Kristin, Finklea M. "Identity Theft: Trends and Issues." Federation of American Scientists. Congressional Research Service, Feb. Web. 22 Oct. 2012.

same cannot be said for everyone,and precautions must be taken tostore client data in a way that isinaccessible to unauthorized users.The best way to do that is to encryptand password protect it. There arethree easy ways to do this:

Store data in your agencymanagement system — Because youragency management system ispassword protected and data it sendsover the Internet can be encrypted,data that is saved in your system orsent via Real Time, secure email or aVirtual Private Network has somemeasure of safety from prying eyes aslong as the proper protocols arefollowed. Data retained on mostagency management systems,however, is not encrypted, so it isextremely important to keep yourserver in a secure location if housedwithin your agency or, if you use yourvendor’s online system, to haveconfidence in the security measurespracticed by your vendor.

Encrypt a folder on your hard drive— While your agency managementsystem is a good location to storemost client data, it is almost inevitablethat you will have things savedoutside of your system, such as on alaptop or USB flash drive. Werecommend that the agency strictlylimit the employees and instanceswhere client personal data can bekept on such mobile devices and thenonly for a specific use, after whichtime the data is deleted from suchdevices. The trick is to keep this datasecure as well. The first option forsecurely storing confidentialinformation outside of your agencymanagement system is to encryptspace on your hard drive. While thismay sound complicated, in reality it israther simple, so long as you knowwhat to do.

w To create an encrypted space —essentially a password-protectedfolder that you can save files to “on the fly” — ourrecommendation is that you use the very good (and free)TrueCrypt software. The open-source software is availablefor download at(http://www.truecrypt.org/), as isa step-by-step beginner's tutorialon how to create and use aTrueCrypt container.

w Once you get the system installedand in use, the beauty ofencrypted space is fourfold. First,in many cases it’s free. Second,the simple step of creating andsaving to a single file provides anadded layer of protection.Because you and you alonedecide where you want to fileyour encrypted folder, anyonetrying to gain unauthorized accesswould not only need thepassword, they’d also need toknow where to look. Third, it’smobile. You can copy and backupthe password-protected fileanywhere. Lastly, it won’t slowdown your machine.

Summary: creating encrypted spaceon your machine is a convenient andcontrollable way to protect data thatdoesn’t cost performance.

Encrypt the entire hard drive — Ifyou’d prefer not to worry abouthaving to remember to saveconfidential information to onespecific folder, another option is toencrypt your entire hard drive. From auser standpoint, essentially all thiswould mean is an extra login. From asecurity standpoint, it is about assecure as you can achieve, short ofprohibiting that such data be kept onsuch portable devices. So secure, in

fact, that if you were to forget yourpassword, the likelihood you’d evenbe able to get back in is slim.

One option to do this is BitLocker(available in the Ultimate andEnterprise editions of Windows 7 andVista and in the Pro and Enterpriseversions of Windows 8.) Another isthe aforementioned TrueCrypt.

Something to consider when decidingwhether to encrypt your entire harddrive or just space on your hard driveis that in some cases, particularly witholder computers, encrypting the harddrive may slow the performance ofyour machine somewhat.

Summary: The beauty of encryptingyour entire hard drive is that if yourmachine gets stolen, without thepassword, no one can make senseout of it. The whole hard drivebecomes a puzzle.

Smart phones and tablets — Agentuse of these devices is growingexponentially, and they poseadditional security risks. Personal datamight be contained in emails receivedfrom the client. Agency employeesshould take care to delete theseemails promptly and not transmit thiskind of data from these devices viaunsecure email. In addition, theagency should make sure itsemployees have activated thepassword protection on these devicesand should employ a remote wipingtechnology, so that if the employeeloses or misplaces the device, theagency can restore the device to itsoriginal manufactured state with all ofits data removed. In addition, somelarger agencies are starting to employsoftware on the mobile device thatwalls off and secures businessapplications and data.


[ 27 ]

[ 28 ]

2.Create “strong”passwords and keepthem secure.

Because your password is the firstline of defense in preventingunauthorized file access (whether toyour agency management system,your encrypted file or your entireencrypted hard drive), it isimportant to create strongpasswords and store them in a safeplace. Best case scenario would benot to write them down at all. If youmust write them down, don’t carrythem around with you or leavethem in an easily accessible place.

Microsoft offers the followingsuggestions for creating a strongpassword2:

w Make sure it is at least 8characters long.

w Make sure it does not containyour user name, real name orcompany name.

w Make sure it does not contain acomplete word.

w Make sure it is significantlydifferent from other passwordsyou have used.

w Make sure it contains at leastone uppercase letter, one lowercase letter, one number andone symbol.

To protect yourself against a bruteforce hack, an attack where allpossible character combinations aretried in an effort to crack yourpassword, increase the length of thepassword. Though longer passwordsmay be tougher to remember, theyare definitely a safer option.

3. Change passwords often. Experts have different opinions as tohow often passwords should bechanged. Our best advice on this isto set a standard for your agency(whether it be every month, everythree months or every six months)and enforce that policy agency-wide. Of course, if you ever haveany reason to believe that yourpassword has been compromised, itshould be changed immediately.

Many systems require this from youand do so for good reason. It ismuch harder to hack systems thatrequire frequent password resets. Itadds a level of complexity for thehacker that can be both a deterrentand a safeguard if there is a breach.As you know, carrier portalscontinually request passwordchanges from all of their users toensure fraudulent access isminimized. Make sure your agencymanagement system has passwordmanagement capabilities so whenyou change your password on thecarrier site, you can change yourpassword in the agencymanagement system and retainyour Real Time access.

Changing these passwords formultiple employees, carriers andother entities is cumbersome. Thegood news is that there is anindustry movement underway tostreamline these processes. The IDFederation (http://idfederation.org/)is a not-for-profit group dedicated tocreating the trust framework toenable agencies and others to use adigital identity provided by a trustedidentity provider to authenticatethemselves with carriers and other

business partners in place ofpasswords. Look for vendors toemerge to start to provide thesedigital identities to agencies in thecoming year.

4. Keep user permissionstightly controlled.

Unfortunately, one of the biggestpassword-related problems we’veseen across the board is that manyagencies not only share their agencymanagement system passwordsamong staff members, they leavethe user permissions wide open.Because of the sensitivity of the datastored in the system, the only oneswho should have access are thosewho use it day in and day out.

Use your user permissions well. Thebetter systems will have fairlycomprehensive permission lists thatare assignable by individual user.Make sure you:

w Understand the levels ofpermission you can set withinyour system.

w Understand the access thateach of your team membersneeds to your system toperform their job optimally.

w Implement based on youragency’s best practices.

w Make sure employeesunderstand that they should notshare their passwords with anyother employee or person.

For example, many agency systemshave permissions to dictate who canpull data in a mass fashion fromyour system. Take the time tounderstand these permissions and

TECHNOLOGY UPDATE

2 “Tips for Creating a Strong Password.” Windows. Microsoft, n.d. Web. 22 Oct. 2012. http://windows.microsoft.com/en-US/windows-vista/Tips-for-creating-a-strong-password.

who needs to have access. Do yourproducers need to be able to export aclient list with sensitive data? Do yourCSRs? If not, consider implementingthis permission to restrict their abilityto do so.

5. Remember to log out. While it may seem simplistic,remembering to log out is one of themore important steps you can taketowards keeping your data secure. Aslong as you are signed in, it doesn’tmatter how many layers of securityyou have or how good your passwordis — anyone who can get their handson your computer or mobile devicecan access your data.

Most systems will have an automaticlog-out feature that you can set. Forexample, if you are not active on acomputer for 10 minutes, you will belogged out of the system. Make sureyou are using this effectively. If youwalk away from your office with yoursystem left open and this auto log-outfeature is not active, you essentiallygive the keys to your kingdom toanyone that walks in the door.

6. Protect outbound data.While everything we’ve discussed upuntil this point has related to the dataresiding on your computer, protectingyour outbound data is just asessential, if not more so. Here are afew quick tips:

Use Real Time — As emphasized inthe ACT article, Agency Strategies toSend & Receive Personal DataSecurely, Real Time offers a muchmore efficient and secure method tohandle transactions with carriers thanemail. When you send a file usingReal Time, communications areautomatically encrypted and keptwithin both the agency’s and carrier’smanagement systems.3

Secure your email with TLS(Transport Layer Security) emailencryption — ACT has published a number of articles outlining the basicsof TLS encryption. Rather thanduplicate these efforts, we suggestthe following reading:


[ 29 ]

3 Yates, Jeff. "Agency Strategies to Send & Receive Personal Data Securely." Independent Insurance Agents &Brokers of America. ACT, Agents Council for Technology, n.d. Web. 22 Oct. 2012.

“ Reducing losses adds value for your clients.”

Provide more than protection to your clients. Provide the added value of EMC’s no-fee loss control services, which could help reduce the cost of their insurance. It’s just one of the many reasons policyholders Count on EMC®.

Acquisition Strategy #11LOSS CONTROL SERVICES

Chad Veach, Engineering Services Supervisor

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA www.emcins.com© Copyright Employers Mutual Casualty Company 2013 All rights reserved

w Protect Your Clients with SecureEmail Using TLS

w TLS Email Encryption —Frequently Asked Questions

w Insurance Carriers Enabled for TLS Email Encryption forthe Agencies

TLS is the industry-recommended,secure email solution for businesspartners where there are frequentemail communications going backand forth, such as between agenciesand carriers. TLS is an openstandard that is transparent to endusers, but it requires that it beactivated in the email servers ofboth partners.

Most agencies are also likely toneed to employ a proprietary email solution for use with theirclients (or set up a secure clientportal on the agency website), forthose instances when sensitivepersonal data is transmitted to theclient, such as that contained in theinsurance policy.

When storing/saving client emails, attach them to files within your password-protectedagency management system instead of saving them in theOutlook application.

7. Use security software.If you are using a reputable, online-hosted agency management system,the data in your system should beprotected with Internet and serverfirewall data protection, malwareand anti-virus protection, as well asweekly security patch updates toWindows and Internet and serverfirewall data protection. You shouldbe receiving maintenance window

updates from your agencymanagement system provider thatlet you know these things are beingkept up-to-date. If your agencymanagement system is housedwithin the agency, you should makesure similar security hardware andsoftware are employed.

To protect data saved outside your agency management system,we also recommend that you useone antivirus program and aspyware scanner regularly, andkeep your PDF reader (usuallyAdobe Acrobat Reader) updatedand on the latest version.

While this paper will notrecommend one particular vendor,below are a number of vendors thatsupply both a standalone anti-viruspackage, along with a suite ofsecurity software for your machine.

w McAfee

w Symantec

w Sophos

w AVG

w Microsoft Security Essentials

In addition, it is recommended thatyou update your Microsoftoperating system with the latestpatch levels on your machine. Formore information on the latestpatch levels for your operatingsystem, visit www.microsoft.com.

8. Be careful when usingpublic Wi-Fi.

While free public Wi-Fi is certainlyconvenient, if you don’t protectyourself against data thieves andhackers, that convenience could willcome at a price. Steve Anderson putit quite succinctly in his Tech Tips

article, Free, Public Wi-Fi Can BeDangerous to Your Health when hewrote, “You go to an airport orother hot spot and fire up your PC,hoping to find a free hot spot. Yousee one that calls itself "Free Wi-Fi"or a similar name. You connect.Bingo — you've been had! Theproblem is that it's not really a hotspot. Instead, it's an ad hoc, peer-to-peer network…”4

Fortunately, there are things youcan do to protect your data, yet still access the Internet while you are on the road. Here are a few suggestions:

w NEVER pick a “free” wirelessnetwork that is not identifiedclearly as a usable network bythe provider. For example, mosthotels and all Panerarestaurants have clearly namednetworks and writteninstructions for accessing. Becareful not to use the networkthat advertises itself only as“FREE-WIFI!”

w ALWAYS select the publicnetwork option whenprompted. This uses Windowstechnology to make your device as undiscoverable aspossible on the network. This can be hacked, but it is acritical first step.

w Read the terms and conditionsthat come up if prompted (e.g., at Panera); make sure you are familiar with thesecurity the specific Wi-Finetwork is offering, and theassociated liabilities.

w Use a virtual private network(VPN) when accessing your

TECHNOLOGY UPDATE

4 Anderson, Steve. "Free, Public Wi-Fi Can Be Dangerous to Your Health." Steve Anderson.com Tech Tips. Ed. Steve Anderson.

n.d. Web. 22 Oct. 2012.

agency’s system. A VPN is arelatively inexpensive way toensure secure online accesswherever you are. Threeexamples of providers offeringVPN solutions designed toprovide a secure onlineexperience — even in a free,public Wi-Fi environmentinclude: HotSpot Shield(http://www.hotspotshield.com/);GoTrusted(http://www.gotrusted.com/)and Witopia(https://www.witopia.net/)

w Purchase and use a wirelessInternet card. In very non-technical terms, a wirelessInternet card is a small device

you attach to your computerthat will provide access to theInternet over a wireless carrier’scellular network. These areavailable, for a fee, from themajor cellular providers. Many3G and 4G smartphones canalso substitute for the wirelesscard for a small extra fee permonth and data charges.

9. Create a security-minded agency culture.

You want to have a clearunderstanding throughout theagency as to the major informationsecurity risks facing your firm,grounded in a written security planand written proceduresimplementing the plan that are

consistently applied. It is also criticalfor you to have a goodunderstanding of the informationsecurity requirements imposed bythe state and federal privacy anddata breach notification laws andregulations that are applicable toyour agency. A commonrequirement of these laws, inaddition to having andimplementing a written securityplan, is to appoint a securitycoordinator who takes ownership of the information security issuewithin the agency.

Most important of all, it is essential for you to train youremployees so that they have a goodawareness of the security risks

[ 31 ]

“ Don’t let clients compromise on data compromise coverage.”

An incident of data compromise can have a negative impact on your clients’ credibility and profits. You can help protect them by adding EMC’s data compromise coverage to their insurance program. It’s just one of the many reasons policyholders Count on EMC®.

Tanya Wentzel, Des Moines Branch Marketing Manager

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA www.emcins.com© Copyright Employers Mutual Casualty Company 2013 All rights reserved

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[ 32 ]

facing the agency, or in the wordsof Franklin, a healthy sense of“distrust and caution.” Manyavoidable security breaches resultdirectly from employee mistakes,because they are unaware of therisks. Agencies should ask theiremployees to commit to therequirements of the firm’s agency’sinformation security plan andprocedures, and the agency shouldregularly audit for compliance.

ACT has created a prototype agencyinformation security plan thatagencies can use as a starting pointin creating their own plan. Inaddition, see the Security & Privacy section of the ACT websitefor a wealth of additional security-related information.

SummarySome of these tips can easily beimplemented; others will take a bit more time. When it comes tofile- and hard-drive encryption,setting up VPN security measures orTLS email encryption, andstandardizing security softwareacross your agency, we highlyrecommend you get your ITconsultant or department involvedin the planning andimplementation. The importantthing, however, is to start: Defineand outline security measures andmake them a standard requirementfor everyone in your office.

__________________________

Note: Products mentioned inthe above article should not be considered productendorsements, just suggestionsfor where you can go to learn more.

TECHNOLOGY UPDATE

Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . .11

Coastal Agents Alliance . . . . . . . . . . . . . . . . . . .32

Donegal Insurance Companies . . . . . . . . . . . . .1

EMC Insurance Companies . . . . . . . . . . . .29, 31

Guard Insurance Group . . . . . . . . . . . . . . . . . . .3

IA&B Partners Program . . . . . . . . . . . . . . . . . . .25

Insurance Club of Pittsburgh . . . . . . . . . . . . . . .5

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

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .14

PennPRIME Insurance Trust . . . . . . . . . . . . . . . .3

Preferred Property Program . . . . . . . . . . . . . . .15

TAPCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Ad Index

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

SOUTHEAST PA PRODUCERS & AGENCIES

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

If you would like to place a

Classified Advertisement, simply

fax your ad on company letterhead to

717-795-8347, and we will take

care of the rest.

Duck Hunting

Two actuaries are duck hunting. They see a duck in the air,and they both shoot. The first actuary's shot is 20 feet wide tothe left. The second actuary's shot is 20 feet wide to the right.The actuaries give each other high fives because, on average,they shot it.

Source: Insurance Networking News

Barn Fire

Larry's barn burned down, and his wife, Susan, called the insurance company. Susan told the insurance company, "We had that barn insured for fifty thousand, and I want my money."

The agent replied, "Whoa there, just a minute, Susan. Insurance doesn't work quite like that. We will ascertain thevalue of what was insured and provide you with a new one of comparable worth."

There was a long pause before Susan replied, "Then I'd like tocancel the policy on my husband."

Source: www.YoungInsure.com

----------------------------------------------------------------———————-------The Last & Least column is dedicated to the industry’s oddities —from creative claims and kooky coverages, to (tasteful) jokes andstrange stories. Submit yours to [email protected], subject line:Last & Least. The editor will happily protect sources’ anonymityupon request.

Jokes ofthe month

Contact your Interstate underwriter today for a quick, competitive quote or email your applications to [email protected]. Call today for more details.

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In Pennsylvania, Delaware, Indiana, Maryland, Michigan, New Jersey, Ohio, Virginia & West Virginia2307 Menoher Blvd. Johnstown, PA 15905814-255-7878 1-800-452-0297 Fax 814-255-6010

Demolition DebrisScrap Metal

Coal (PA, MD & WV only)Sand/Gravel/Stone

Dirty DirtAggregate

Documents

Primary Agent - February 2013 - DE Edition