MARYLAND

INTHISISSUE________________

How to add Life to a P/C agency

Differentiating yourself inemployee benefit sales

G14408_Covers.qxp:May10Primary 4/16/10 9:44 AM Page 2

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G14408_IFC-IBC-OBC.qxp:Layout 1 4/16/10 9:53 AM Page c2

Mixing Life into the P/C agency

Simply adding a Life producer isn’t enough to launch an agency into the Lifemarket. There needs to be agency-wide buy-in. Here, Dick Langhough offersthe key ingredients for mixing Life into a P/C agency.

Page 10

Differentiate yourself in employee benefit sales

The voluntary benefits market is lucrative, and carriers are making it easierthan ever for producers to dive in and quickly get into the swim of things. This article explains how.

Page 16

10

16

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

Copyright 2010. All rights reserved. No material may be reproduced in whole or in part without written 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 EditorPO Box 2023Mechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

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

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2010-5) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

2 Chair of the Board’s Message3 Member FAQ4 State News6 Preventing Errors & Omissions7 Glance at Events8 Coverage Corner

15 IA&B Partners20 Technology Update24 Advertisers Index24 Classified Ads24 Last & Least

In every issue

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

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 1

OfficersKathleen M. Glattly, ChFC, CLU, CPCU

Chair of the BoardFactoryville, Pa.

David Rosenkilde, CICVice Chair of the BoardReisterstown, Md.

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

MembersNorman F. Basso, CPCU

York, Pa.

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

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

Timothy P. BurrisThompsontown, Pa.

M. Scott Clemens, CIC, CPCU, CLU, ChFC Souderton, Pa.

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

G. Greg Gunn, CICLemoyne, Pa.

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

Diana M. Hornung-Momot, ACSRWilmington, Del.

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

Michael F. McGroarty Sr.Pittsburgh, Pa.

Scott C. Rogers, CPIAYork, Pa.

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

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

Robert A. Walbeck, CICHomer City, Pa.

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

James M. Watkins*Dover, Del.

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

John S. Yasik, CICNewark, Del.

* IIABA National Director** PIA National Director

Board of Directors

Spring your agency to life

Springtime has arrived. Flowers are blooming, birds arechirping, golf courses are bustling…. So what better time toadd life (pun intended) to your book of business?

Offering L/H coverages should be a necessity for most P/Cagencies. Some carriers require it. Some customers requestit. And it makes good business sense.

But how do you do it right?

This issue of Primary Agent magazine is dedicated to justthat. You’ll find a feature article on seven considerations fortruly integrating L/H into your agency. A second articlelooks specifically at the rapidly growing employee-benefitsmarket and how producers can up the ante in sales.

Springing full force into the L/H and related markets is noteasy. But your clients need it and so does your bottom line.And, as always, your association is behind you every step of the way. Check out IA&B’s education courses (includingon-demand long-term care training) or give the staff a call if you have any questions. Good luck!

Until next time,

Kathleen

[ 2 ]

Kathleen GlattlyCPCU, CLU, ChFC, AIM

Chair of the Board’sM E S S A G E

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 2

?QUESTION: Our agency hasreceived a subpoena to provide

copies of a client’s file following a

claim. The client’s file is huge. Do

we have to provide the whole file?

And what about privacy?

ANSWER: Your question can beviewed from different angles. First, thereare different types of subpoenas. Asubpoena for records is an official written request for documents from anattorney. Keep in mind that a subpoenafor records is not approved by a judge.This is not to say that you shoulddisregard it and go about your business,because the attorney could then go tocourt and get an order seekingcompliance or financial sanctions againstyou. However, this request can, to acertain extent, be flexible.

If the subpoena for recordsseems excessiveYou can discuss and negotiate thesubpoena with the attorney. It is notunusual for a subpoena to requesteverything, when the relevant sectionsare only a small part of the whole. If therequest is overly burdensome, call theissuing attorney. He or she may bewilling to settle for only part of therecord. Pick up the phone, explain whatand how much is in your file, and youwill likely be able to narrow down therequest to something more manageable.

Concern for privacy To keep things simple, let’s assume weare dealing with a Property & Casualtyaccount (with no involvement of anyhealth information that could trigger theHealth Insurance Portability andAccountability Act, a.k.a. HIPAA).

w If it’s a commercial account, P&C commercial accounts arenormally outside the scope of theprivacy regulation.

w If it’s a personal line account, theregulation still provides anexception that allows producers toshare information “to comply witha properly authorized civil, criminalor regulatory investigation, orsubpoena or summons by Federal,state or local authorities.” In yourcase, this is not a court-orderedsubpoena, but it would be aproperly authorized civilinvestigation.

Side note on record retentionThere is a clear connection between thisrequest and your agency’s recordretention policy. Producers have tofollow certain requirements when itcomes to record retention. Thetimeframe to retain documents dependson your state’s legal and regulatoryrequirements, the statute of limitations,the type of document, and whatever you

have agreed to in your agencyagreement. Whatever the case may be,the retention schedule applies the sameto paper and electronic records, and itmust be applied consistently. If not allrecords are kept with the same scheduleand you make exceptions, the credibilityof the agency’s record-keepingprocedures is going to be challenged.

DO YOU HAVE AQUESTION? E-mail it to us at iab@iabgroup.com.Please use “Primary Agent FAQ” in thesubject line of your message. You canalso fax your question to (717) 795-8347.We look forward to answering yourquestions!

Member FAQ

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 3

Primary Agent | May 2010

[ 4 ]

State NewsHow can IA&B help members meetregulatory requirements, navigatetechnology advancements and improvecarrier relations? The Board of Directorshas a better idea thanks to the AprilMember Agent Panel (MAP) meetings.

Three meetings held across the stategathered member agents to weigh in onindustry happenings and IA&B activities.

The spring 2010 MAP meeting formatwas dubbed Round Robin. Associationstaff jumped through a dozen topics(see sidebar) by providing a briefoverview and then asking for memberinput, experiences andrecommendations.

“MAP meetings are one way we keep apulse on members’ needs,” said LindaMcCann, IA&B of Maryland chairwoman.

“What we heard in April will drive theBoard’s strategic direction.”

MAPs are held in 13 locationsthroughout the association’s three-statefootprint. Participants – usually agencyprincipals – sign on for a two-yearcommitment and then meet each spring and fall to provide feedback tothe association and bounce ideas off of colleagues.

For more information on MAPs, contact IA&B’s Member Service Centerat (800) 998-9644, option 0.

Members pinpoint priorities

ROUND ROBIN TOPICS:AgentPAC and national PAC

Carrier downgrade letters

Certificates of insurance

Company Satisfaction Index

Credit scoring

E-newsletter service

Executive ManagementConference

Legislative update

Political action committee

Premium increase notifications

Privacy

Workers’ comp seminar

G14408_MD_04-05.qxp:May2010 4/16/10 10:33 AM Page 4

Workers’ CompCommissionissues amendedformMembers handling workers’compensation policies, specificallyfor sole proprietors, should note thatthe Workers’ CompensationCommission has amended its formfor sole proprietors’ status as acovered employee.

The form now stipulates a timeperiod for coverage and includes abox for sole proprietors to attest theyhave no employees.

To access the form, visitwww.wcc.state.md.us/pdf/pdf_forms/sole_prop.pdf.

Water-damagebills dead in thewaterMovement on potentially harmfullegislation that sprang from the September 2009 Dundalk water-main break (and larger, aging infrastructure concerns) hasbeen plugged.

The House Economic MattersCommittee released unfavorablereports on two bills that would haveimposed a new insurer mandate tooffer coverage for a loss caused by adischarge or release of water orsewage. This followed committeedelegates’ receipt of IA&B’sopposition memos that explainedpotential confusion with floodinsurance coverage.

As this issue of Primary Agent wentto print, the Maryland InsuranceAdministration (MIA) was expectedto form a commission to study the

coverage issue and/or issue a relatedbulletin. IA&B will update membersas the MIA acts.

Look for an additional recap of the2010 legislative session in the Juneissue of Primary Agent magazine.

Non-residentsaffected byPennsylvanialicense renewaltransitionRenewals for all producers who holda Pennsylvania insurance licensehave – or soon will – change from anissue date to a birth-month date.

For producers whose licenserenewed between Jan. 1, 2010 andApril 17, 2010: The license renewedat its expiration date (issue date).However, the new license was issuedwith a new expiration date (last dayof the birth month). The dateconversion is handled through therenewal process.

For producers whose license renewson April 18, 2010 and later: Thecurrent licensing cycle will beextended to the last day of theproducer’s birth month. The renewalinvoice will be sent 45 days inadvance of the new renewal date.

For more information, visit IA&B’sWeb site. Select Agency Operationsfrom the menu bar and then choosethe Licensing link.

Win-win: Refer amember, earn aneducation voucherClient referrals are as good as gold inyour business. The same holds true at IA&B.

When you refer a new member, you’llearn a $185 continuing educationvoucher. Here’s how it works:

w Refer as many colleagues as you’d like through May 31.

w Receive a voucher for any IA&Beducation program when yourreferral joins by Dec. 31.

Visit www.iabgroup.com/join/mem_referral.html to submit a referral.IA&B will take it from there.

[ 5 ]

New MembersW E L C O M E

Lighthouse Insurance ServicesGambrills, Md.

Campion Insurance Inc.Bel Air, Md.

Strachan Insurance Agency Inc.Ft. Washington, Md.

Personal Touch Insurance Agency Inc.Baltimore, Md.

G14408_MD_04-05.qxp:May2010 4/16/10 10:33 AM Page 5

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

[ 6 ]

CURTIS M. PEARSALL,CPCU, AIAF, CPIA

Curtis M. Pearsall contributed

this article on behalf

of Utica Mutual Insurance

Company in Utica, N.Y.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your Errors &

Omissions coverage, contact

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

e-mail at iab@iabgroup.com.

GREEN RISKS: SHOULD THEY BE A RED FLAGFOR YOUR AGENCY?

Primary Agent | May 2010

I was recently approached byan agency asking if I wouldwrite an article on insuringgreen risks. No problem. As Ibegan my research, however,it was apparent that this wasan exposure I was not up tospeed on.

While I had a generalimpression of what “green”meant, this industry has trulyexploded. Fortunately, thereare many excellent Web siteswhich helped educate me onwhere this industry is andwhere it is headed. (Simplygoogle “green buildings” andyou, too, can access moreinformation on this subjectthan you probably thoughtimaginable.)

Since there is no doubt this industry is here to stay,this presents a tremendousopportunity for your agencyto increase its knowledge to more adequately serve this building segment, both on the personal andcommercial sides.

This industry is projected togrow over the next five years,according to the consultingfirm McGraw HillConstruction, to a $96-140billion market — and that’sdespite current negativemarket conditions. The firmfurther notes that today theglobal green building marketis around $36-49 billion forresidential and non-residentialbuildings, compared to the2005 total of $10 billion.

This article will not delve into why this is occurring. Its primary goal is to shedsome light on some potentialissues your agency might faceas it looks to insure greenrisks. Because yourcommunity most likely hassome personal or commercialbuildings being renovated orbuilt green, this is a criticaltime to invest in increasingyour knowledge level.

What it’s all aboutEssentially, green buildingsheavily involve increasing theefficiency with which buildingsand their sites use and harvest

energy, water and materials.In addition, they protect andrestore human health and theenvironment throughout thebuilding’s life-cycle: siting,design, construction,operation, maintenance,renovation anddeconstruction.

There are many issuessurrounding this industry aswell as potential insuranceimplications of which youshould be aware. E&O claimactivity in this area has beenminimal — if there’s been anyat all — but it’s fair to say thatit is only a matter of time.

Potential issue:placement of riskWith respect to yourhomeowners’ carriers, arethey receptive to these risks?If so, do you have authority tobind the way you do for amore traditional homeconstruction risk? Speak withyour carriers to determinetheir appetite as you mightfind they get a little uneasywhen you state you have acustomer looking to insure a

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 6

“rammed earth home” or a homeconstructed of straw bales. Or whatabout insulated concrete forms,described as essentially Lego® blocksmade from Styrofoam? If you find yourcarriers are not receptive to these risks,research companies that are.

Potential issue: coverage afforded Is the carrier using the standardhomeowners’ policy? If so, be alert to gaps for such items as cisterns,underground storage tanks and stormsystems to collect water. I suspect that carriers serious about writing these risks will develop a customizedform addressing the uniqueness andthe exposures. For example, acontractor you insure has a significantexposure in making sure the risk meets the necessary certificationstandards. Does the GL form coverthat? You need to know.

Determining the value of the structure Valuation is a key issue to both yourcustomer, in the event of a loss, andyour agency in properly protectingyour customer. Each home may be sounique that they may struggle toadequately address these risks anddetermine the proper factors forvaluation. There are probably parts ofthe risk for which you will be able todetermine a value and others whichmay require the assistance of acontractor or professional appraisalservice. This is where you will benefitfrom the expertise and understandingof exposures of a company committedto dealing with green risks.

When customer suffers a lossHow confident are you that the loss willbe adjusted fairly? One of the Web sitesI visited raised some questions andpoints worth repeating: Is the cost for aLEED (Leadership in Energy and

Environmental Design) accreditedprofessional to consult on the repaircovered? Are recertification feescovered? The question of “like kind andquality” will come into play if thelumber used was extremely rare orunique. These and other questionsneed to be addressed and resolvedbefore a loss, not after.

It’s probably only a matter of timebefore you have a customer — personalor commercial — involved with a greenrisk. Don’t wait. Take time now tobetter understand these risks as well asthe exposures and issues. This will keepyour agency from raising a red flagwhen it’s asked to insure a green risk.

Date Topic Location

3-6 CIC-Commercial Casualty Ellicott City, Md.

4-6 P&C Licensing Study Course Allentown Area, Pa.

5 CISR-Agency Operations Hagerstown, Md.

6 CISR-Agency Operations Altoona, Pa.

11 Best Practices of E&O King of Prussia, Pa.

CISR-Agency Operations Reading, Pa.

E&O Coverage Standards Williamsport, Pa.

12-14 James K. Ruble Graduate Seminar King of Prussia, Pa.

12 CISR-Agency Operations York, Pa.

Mistakes That Lead to E&O Claims State College, Pa.

17-20 CIC-Life & Health Erie, Pa.

18 Dynamics of Service Mechanicsburg, Pa.

20 Flood Webinar Online

25 William T. Hold Seminar Frederick, Md.

26 William T. Hold Seminar Wilmington, Del.

27 CISR-Commercial Property Lancaster, Pa.

Glance at EventsM A Y C A L E N D A R

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 7

CoverageC O R N E R

[ 8 ]

JERRY MILTON, CIC

Jerry M. Milton teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

WHEN IS THE CLAIM MADE?

Primary Agent | May 2010

None of us want a liabilityclaim filed against us. Thatincludes our insureds.Therefore, we may hide ourheads in the sand when wereceive a complaint and hopeit will go away and not turninto a full-fledged claim. Afterall, notifying the insurancecompany every time wereceive a complaint by letter,e-mail or a phone call throwsup a red flag.

The question here is, “Whatconstitutes a claim?”

An engineering firmpurchased ProfessionalLiability insurance fromEverest National InsuranceCompany for the time periodof April 15, 2005 to April 15,2006. The policy wassubsequently renewed foranother 12 month period.

A developer wrote a letter tothe engineering firm in March2006 stating that theengineering firm’s slopedesign was faulty, resulting inthe parking lot not draining.The letter concluded bydirecting the engineering firmto “develop a plan to correctthe drainage problem.” Theengineering firm did notnotify Everest of a “claim,” butinstead wrote a letter to thedeveloper explaining that theproblems were caused bydefective construction ratherthan defective design.

The engineering firm met withthe developer on severaloccasions and sent a follow-up letter reiterating that theproblem was caused byconstruction defects. Afterreceiving that letter, thedeveloper sent another letterto the engineering firm in May2006 specifically accusing theengineer of design error.

In August 2006 theengineering firm advisedEverest of the “claim” itreceived in May. Thedeveloper subsequently fileda suit against the engineeringfirm as well as the architectand contractor. Everestrefused to defend the suit onthe basis that the engineeringfirm did not give timely noticeof the claim as required bythe policy.

The engineering firm filed suitagainst Everest for breach ofduty to defend it against thislitigation. The court in thiscase (Matkin-HooverEngineering, Inc. v. EverestNational Insurance Company,2009 WL 1457669 W.D. Tex.,2009) denied Everest’s motionfor summary judgment. Thismeans that the case will goforward on its own merits todetermine whether Everestproperly declined to defendthe engineering firm.

“Claim” was defined in theEverest policy as follows:

Claim means a demand formoney or professionalservices received by aninsured for damages,including but not limited to,the service of a lawsuit orthe institution of arbitrationproceedings or otheralternative disputeresolution proceedings,alleging a wrongful actarising out of theperformance ofprofessional services.

The court explained that it didnot find this definition to beambiguous. The judgeevaluated the letter from thedeveloper to determine if it fitin the definition of a “claim,”and explained that thisdetermination requires a fact-specific analysis to beconducted on a case-by-casebasis. The judge further statedthat the question “asks whencircumstances known to theinsured would have suggestedto a reasonable person thepossibility of a claim.”

Everest argued that areasonable person shouldhave understood the letter toconstitute a claim because itdemanded performance ofprofessional services to repairthe drainage problem. Inrejecting that argument, thecourt stated that “considering

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 8

the circumstances known to the insured,the letter did not necessarily suggest to a reasonable person the possibility of a claim.”

Based upon the number of meetingsbetween the developer and theengineering firm and the fact thedeveloper eventually sued everybody(engineer, architect and contractor), thecourt found that the developer wasuncertain who was responsible for theproblem. This supported theengineering firm’s argument that theydid not consider the letter a “claim.”

As stated earlier, this case will proceedthrough the Texas courts. Who knowswhat the eventual outcome will be.Sounds to me like the engineering firmhas a pretty good argument. But I haveno legal knowledge whatsoever.

When does a claim become a “claim” asdefined in the policy? If we don’t notifythe insurance company when wereceive that letter, e-mail or phone call,we may be at the mercy of the court.

Ya’ll take care!

805 N. Front St., Harrisburg, PA 17108

Success

YourUnderwriting

SM

GIVING PROPERTY OWNERS CONFIDENCE TO BUILD UPON.

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

GoodvilleMutualNew Holland, Pa.

Contact Fred Macy, CPCUfred.macy@goodville.com800-448-4622goodville.com

Partnering with the finest independent agentsfor over 80 years

[ 9 ]

G14408_01-09.qxp:May2010 4/16/10 8:58 AM Page 9

MARKETS

Simply adding a Lifeproducer isn’t enough to launch an agency into the Life market. There needs to be agency-wide buy-in. Here, Dick Langhoughoffers the key ingredientsfor mixing Life into a P/C agency.

Mixing Life into theP&C Agency

G14408_10-15.qxp:May2010 4/16/10 9:03 AM Page 10

[ 11 ]

Primary Agent | May 2010

I’ve never met a P/C agent who was completely happywith his Life production. And I’ve never met a Lifeproducer who didn’t think he could expand Lifeproduction in a P/C shop.

So why then, according to a recent industry report, does theaverage P/C shop derive less than 2 percent of revenues fromindividual Life production? I would wager that it’s becauseneither producer described above is focused on a plan to workeffectively together.

The following pages will detail the key ingredients I believe arenecessary for an agency to maintain a synergistic, consistentand profitable flow of Life, LTC and related business.

CompensationThe obvious motivator is “What’s in it for me?” It’s importantto every member of the food chain. From the person whosecures the prospect, to the person who supports thepaperwork, to the person who finishes the file —compensation drives behavior.

Experience tells us that the way compensation will bedistributed must be agreed early in the process and that allparties must feel that they are being compensatedappropriately for the work they are doing.

If the commercial producer makes less than he believes is fairfor exposing his client to the “Life guy,” then he most certainlywill find excuses to stop doing it. Referral fees don’t workhere. There must be a correlation between the target premiumon the case and the compensation paid to the P/C producer.

However, if I am the CSR on a nice salary and I get a “fat”finders fee for simply referring a client, I might be pretty happy.

The bottom line is that we all want to be paid and recognizedfor performance, and management should have a clearunderstanding of each person’s expectations. If compensationis not properly distributed, the program will break down andultimately fail.

Lead generationEvery business unit should have its own system to generateand communicate leads. For Life insurance purposes, theproducer, CSR and managers all should be involved ingenerating leads.

The CSR only needs to be equipped with enough knowledgeto ask a client, “Who currently handles your Life Insuranceneeds?” Let’s say the typical personal lines CSR speaks with30 clients a day and the typical commercial lines CSR talks to10-15 clients each day. Those contacts alone constitute over12,000 client contacts a year. If 25 percent of those contacts

What is the worst phrase you

can hear from your best client?

“If I knew that you could

handle my Life insurance

needs, I would have bought it

from you.”

_____________________________

When a new line of business is sold to an existing

client, the percentages of keeping the client long term increasedramatically. Life

insurance can be a niceretention strategy.

_____________________________

I

G14408_10-15.qxp:May2010 4/16/10 9:03 AM Page 11

have interest and 10 percent ofthose buy a new Life insurancepolicy, that’s 300 new Lifeinsurance policies.

Too often, the service rep justdoesn’t ask (mostly becausethere is nothing in it for her), or she asks for the business but doesn’t know how totranslate the information into a prospect. Easy to do, but often overlooked.

The P/C producer who doesn’tbroach the subject of Lifeinsurance with the executive at his commercial accountprobably walks past thousandsof dollars a year in bottom line revenue. Just asking the question about reviewing a policy will result in new Life production and help lockout competitors.

P/C agent engagementThe Life insurance program isonly as good as the willingnessof the individual P/C agent toparticipate. The agent must seethe value a Life insuranceprogram can generate,including but not limited togenerating new revenue,protecting and retainingexisting clients and recruitingnew clients.

Client controlTo optimize the value of a Life insurance program, the P/C agent must have clientcontrol. Meaning, the agentmust have direct and credibleaccess to the client. The agentmust also have access to andthe trust of the client’s advisors,such as other executives in the

firm, accountants, lawyers, etc.The client must trust the P/Cagent, and the client must takethe P/C agent’s suggestions and recommendations on howto proceed.

Executive endorsementThis is simply an issue of theP/C shop owner stating to all ofthe associates of the firm thatthe Life insurance program isimportant and part of theoverall growth strategy.Experience shows thatexecutive endorsement clearsthe way for all producers toparticipate and gives rise tocreative thinking on how to bestparticipate in the “company-wide” program.

Cooperation among business unitsThe agency principals anddepartment managers should befrequent guests of the otherdepartments’ sales meetings. Itis in this way that an agencycan maximize its assets andresources. These meetingsshould include the designatedLife department manager.

The goal of most meetings is topass information about marketchanges or company productsand policy changes in order tokeep the producers, CSRs andclients aware of any newmarket conditions. The simpletask of letting the right handknow what the left is doing withrespect to Life insurance isoften left undone.

For example, if the personallines manager announces a change in a specific

Homeowners’ policy, wouldn’tthat be a good time to reviewall the personal insurance for those clients?

If a commercial carrier makesan enhancement in a liabilitypackage, wouldn’t it be nice ifthe messenger carriedinformation on the new estatetax law changes as well? “Bythe way, did you know that ouragency also specializes in LongTerm Care Insurance?”

All of these things create talkingpoints and, as a result, createthe possibility of new cross-selling opportunities. Anotherrecent study showed thatstatistically, when a new line ofbusiness is sold to an existingclient, the percentages ofkeeping the client long termincrease dramatically. Lifeinsurance can be a niceretention strategy.

Employee awarenessThis is the process of keepingemployees in the know withrespect to what the agency islooking to accomplish in itsmarketplace. It is vitallyimportant that each employeehave a sense of what they meanto the greater goals of theoperation in which they work.An uninformed employee addslittle or nothing to growthoutside of his immediate focus.

How many times has one ofyour sales people been at asocial function and opened theopportunity to work on a salebecause she simply informedothers about what she does?Why not arm the other

MARKETS

[ 12 ]

G14408_10-15.qxp:May2010 4/16/10 9:03 AM Page 12

members of the team with thebasic knowledge that can bepassed along at any time,whether in a casual or business setting?

I have heard the following storymany, many times. A P/Cproducer will share that he justmet with one of his best clientsand decided to ask about thatclient’s Life insurance needs.The client responded by sayingthat he just bought Lifeinsurance from an outsidesource because he “didn’t knowyour agency handled that typeof insurance.”

Just asking for this business isan easy fix for the agency tomake, but so many never do it.What is the worst phrase youcan hear from your best client?“If I knew that you could handle my Life insurance needs, I would have bought itfrom you.”

________________________

Dick Langhough, Senior VicePresident for LifeSource — aCrump Company, authored this resource.

LifeSource is a division of CrumpLife Insurance Services, aninsurance outsourcingorganization. Crump representsover 100 carriers and 6000 Life,Long Term Care, Disability andAnnuity products, as well as uniquespecial risk offerings. LifeSourcespecializes in working withProperty and Casualty insuranceagents, offering them the ability totake advantage of seasoned lifeinsurance professionals to assistwith detailed fact finding, total casedesign and face-to-face support

with clients at the point-of-sale —creating a “virtual” LifeDepartment.

To reach LifeSource – A CrumpCompany, call (888) 852-3727.

Editor’s note: This article wasadapted from a white paper:“Creating and Sustaining a

Consistent Flow of Individual Lifeand Related production within aProperty-Casualty Operation.” The complete paper is availableby contacting Anne Rockwell at(888) 852-3727 Ext. 8407.

Primary Agent | May 2010

G R O U P1844

MI N E R V A

CUM

BER

LAND INSURA

NC

E

STRONG RELATIONSHIPSPRODUCE RESULTS

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

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

Commercial and Personal LinesCompetitive CommissionsExceptional Customer ServiceFinancial StrengthExperienced UnderwritersMarketing Support

Celebrating 166 years of service � 1844 - 2010

G14408_10-15.qxp:May2010 4/16/10 9:03 AM Page 13

Platinum ProfileInsurance Agents & Brokers proudly recognizes Selective as one

of its Platinum Partners. IA&B Platinum Partners dedicate the

highest level of sponsorship to our organization.

FEATURED PARTNER:Selective

CHIEF EXECUTIVE OFFICER:Gregory E. Murphy

Chairman, President and CEO

HOME OFFICE LOCATION:Branchville, New Jersey

A.M. BEST RATING: A+ (Superior)

In 1926, Selective was started by asmall business owner committed toproviding prompt, fair settlements

and exceptional personal service.Today, Selective’s outstandingperformance continues, and can becredited to people at every level of theorganization who turn individualcreativity, skill, purpose and hard workinto the collective innovation,strategies and energy that characterizeexcellence. Their expertise atdelivering the distinctive combinationof high-touch through strongrelationships and high-tech throughease of seamless automation hascreated a powerful engine forprofitable growth.

The company’s value-added productsand services are offered throughapproximately 960 independentagents in 22 Eastern and Midwesternstates. Commercial insurance for smalland medium-sized businesses, lightindustry, and public entities representsabout 84% of the company’sinsurance operations.

Selective’s highly regarded field forceis dedicated to servicing andsupporting agents and customers.Living and working in their territoriesprovides Selective’s field-basedemployees with unlimitedopportunities to develop extraordinaryrelationships and to deliver a level ofservice unmatched by competitors.

The 48th largest property and casualtygroup in the U.S., Selective is acustomer-focused, super-regionalcompany providing a broad range ofinsurance and alternative riskmanagement products and services.Rated “A+” (Superior) by A.M. Best for48 consecutive years.

Selective’s financial stability in themarketplace, coupled with thenimbleness of a regional carrier,provides security for policyholders andthe capacity for profitable growth forthe company and its agents.

“Since our founding more than80 years ago, Selective hasremained committed tobuilding strong relationshipswith all of our stakeholders.We value the relationships wehave built with a select groupof independent agents, and arededicated to supporting theirsuccess through the powerfulcombination of our ‘high-touch’ business model andleading-edge technology.”

Gregory E. Murphy,Chairman, President and CEO

G14408_10-15.qxp:May2010 4/16/10 9:03 AM Page 14

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

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

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at (800) 998-9644,

(717) 795-9100 or visit us

online at www.iabgroup.com

to get started.

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

Thank you for your continued sponsorship.

Primary Agent May 2010

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

GOLD LEVELOhio CasualtyProgressive

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

BRONZE LEVELAAA InsuranceAgency Insurance CompanyAllied InsuranceAuto-Owners Insurance CompanyBriar Creek Mutual Insurance CompanyBuilders Insurance GroupCapitol Insurance CompanyChubb Group of Insurance CompaniesCompanion Property & Casualty GroupCountryway Insurance CompanyEncompass InsuranceFirst General ServicesForemost Insurance GroupFriends Cove Mutual Ins CompanyGoodville Mutual Casualty CompanyGrange Insurance CompaniesHanover Fire & Casualty Insurance CompanyInsurance Alliance of Central PA IncInsurance Placement Facility of PAKeystone Insurers Group IncLebanon Mutual Insurance CompanyMercer Insurance GroupMerchants Insurance GroupMercury CasualtyPenn Millers Insurance CompanyPenn Prime Municipal InsurancePMSLIC Insurance CompanyReamstown Mutual Insurance CompanyRhoads & Sinon LLPRockwood Casualty InsuranceState Auto Mutual Insurance CompanyTAPCO Underwriters IncThe Brethren Mutual Insurance CompanyThe Mutual Service Office IncThe Philadelphia Insurance CompaniesTuscarora Wayne Mutual Insurance CompanyUPAC Insurance Finance

G14408_10-15.qxp:May2010 4/16/10 9:03 AM Page 15

MARKETS

The voluntary benefitsmarket is lucrative, andcarriers are making it easier than ever forproducers to dive in andquickly get into the swim of things. Read on todiscover how.

Differentiate yourself inemployee benefit sales

G14408_16-19.qxp:May2010 4/16/10 9:10 AM Page 16

[ 17 ]

Primary Agent | May 2010

What do you do that differentiates yourself from all the other producers out there? Do you offer a higher level of customer service? Do youspecialize in a specific industry? What if you

could differentiate yourself by offering your clients moreresources and making them feel like they are receiving ahigher level of service without incurring any additionaloverhead?

Do I have your attention now? Then why aren’t you offeringvoluntary benefits?

Voluntary benefits market opens upMany voluntary carriers are offering services well beyond thetraditional policies. And these extra services, such as coreenrollments, dependent verifications, benefits counseling,benefit statements and access to human resource Web sites,come at no cost to your clients.

According to a small business study by LIMRA in 2009, 78percent of employers with more than 1,000 employees offervoluntary benefits to their employees. Only 27 percent ofemployers with less than 100 employees offer voluntarybenefits to their employees.

Voluntary benefits and the added value services they offer notonly allow you to generate a new revenue stream, but allowyou to help your smaller clients by offering “big companybenefits.” These benefits and programs can help your clientsattract and retain better employees.

Educating consumersIn most cases, the standard enrollment goes something like this:

w Group presentations are held, and you speak about theplan being offered.

w Many employees are timid about asking questions. Thinkabout it: Who wants to ask a personal question during agroup presentation?

w Many employees leave this presentation confused and donot fully appreciate the benefits being offered.

How do you differentiate yourself? Let’s take a look at thisscenario.

w Employees receive a one-on-one enrollment with abenefits expert.

w Employees feel more comfortable asking questions.

w Employees understand and appreciate their benefits more.

You are offering a service your competition doesn’t. You areseparating yourself and differentiating your services frommany other producers.

Voluntary benefits and the

added value services they offer

not only allow you to generate

a new revenue stream, but

allow you to help your smaller

clients by offering “big

company benefits.”

______________________________

As health care reform isfleshed out, it is moreimportant than ever

that your clients perceive your full value. Talk to your

clients about something rather than rate increases. Tell them a different story and advise them about the

additional services available.

______________________________

W

G14408_16-19.qxp:May2010 4/16/10 9:10 AM Page 17

MetLife’s 2009 Study ofEmployee Benefit Trends showsa direct correlation betweenbenefits satisfaction, loyalty andthe benefits communicationemployees receive. The moreemployees know about theirbenefits, the more likely theyare to be happy in their jobs.

We all know that if theemployees are happy and loyalto their company, the boss isusually pretty happy, as well.

Adding valueBeyond the enrollments, manyvoluntary carriers offer theability to provide benefitstatements or totalcompensation statements. Thisis one of the most useful toolsthat you can use to maintainand develop your business.Imagine being able to providethese statements to all of yourclient’s employees at no cost toyour company.

Employers love thesestatements because it allowsthe employees to fullyunderstand and appreciate thebenefits being offered by theircompany. We have all heardemployees complaining abouthow much their healthinsurance costs, but many ofthese employees are shockedwhen they find out how muchtheir employer is contributing.

Many employees feel underpaidand underappreciated. Totalcompensation statements allowemployees to learn just howmuch they are really worth.

Their salary may be $35,000 peryear, but they do notunderstand that they really areworth an additional 30 percentor more when you add in theirbenefit package.

It is important to note thatbeyond these services, you arealso offering these clientsadditional benefits such asshort-term disability, lifeinsurance, accident coverage,cancer coverage, critical illnessand MediGap policies. (Note: Insome cases, too many offeringsleads to confusion. Try keepingyour enrollments to no morethan three or four policies.)

Delivering serviceAs health care reform is fleshedout, it is more important thanever that your clients perceiveyour full value. Talk to yourclients about something ratherthan rate increases. Tell them adifferent story and advise themabout the additional servicesavailable. Develop a benefitstrategy for your clients that iscentered on rising health carecosts. Develop a strategy forclient retention, and show yourcommitment to them by takingthe time to address the needs oftheir employees. You can do alot of this at no direct cost.

Last week, I had the opportunityto conduct a webinar for asmall broker. Before thewebinar, he was just anotherbroker who offered healthbenefits to his clients.

After our meeting, he is abroker who offers:

w Employee educationservices

w One-on-one benefitscounseling

w Custom benefits portfolio

w Benefit statements

w Enrollment services

w Case-scrubbing services

w Section 125 premium onlyplans at no cost to clients

w A human resources Website for his clients to use atno cost

Best of all, he is able to offerthese services without incurringany additional overhead.

If an employer is looking tochoose a producer, who do youthink they want to work with?The one who offers the samegeneric services or the producerwho has differentiated himselffrom the rest of the pack?

__________________________

Brian Summers is a partner withThe Madison Benefit Group. He can be reached atbsummers@thembg.com.

The Madison Benefit Groupassists brokers and their clients indeveloping, educating,communicating andimplementing voluntaryemployee benefit packages. For more information, visitwww.thembg.com.

This article was republished with permission fromProducersWEB.com.

MARKETS

[ 18 ]

G14408_16-19.qxp:May2010 4/16/10 9:10 AM Page 18

New Ventures accepted Up to 50% work subcontracted Exterior work up to 4 stories Blanket Additional Insureds Expanded list of eligible classes Tool Floaters Business Auto

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Leading Insurance Services, Inc.US Manager for Leading Insurance Group Insurance Co., Ltd.

Building and Building Owners Business Personal PropertyDry Cleaners Retail StoresPharmacies Pizzerias / Takeout

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NJ CAmarketing@ligmsi.com

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G14408_16-19.qxp:May2010 4/16/10 9:10 AM Page 19

THE CHANGING INSURANCE CONSUMERDuke Williams has been a leader in

insurance automation since 1981. You

can follow him through his blog at

http://dukethinkingonline.blogspot.com.

Primary Agent | May 2010 TechnologyU P D A T E

[ 20 ]

“If you dislike change, you are really going to dislike irrelevance.”– General Shensecki

Communication technologyhas changed the insuranceconsumer permanently.

Today’s newest insuranceconsumer is a part ofGeneration M. This is the firstgeneration not based on ageor date of birth. Thisgeneration is based on workand activity habits. Anyonecan be part of Generation M.

M is for mobile, multitaskingand multimedia. Work ismobile. Family is mobile.Schedules overlap, so Gen Msmight work and play at thesame time – and probably noton a traditional nine-to-fiveschedule. Information isconsumed through manysources: phones, texts,Facebook, search, Twitter,blogs, RSS readers, YouTubeand even television. Those arejust some of the names andterms you may recognize;there are many more to come.

Connecting withGeneration MThey have to find you – andyou have to find them.

Technology changes, buthuman nature doesn’t.

Humans are social critters.Today’s technology enables usto be social in a wider varietyof ways. Your goal should beto allow your customers toget the same result and levelof interaction with you onlineas they now do via phone orin person.

They have to be able tointeract with you.

Consumers today want tointeract with you through thecommunications methodsthey prefer. Remember: Thecustomer is always right. Ifyou can’t (or won’t) be wherethey are, then you don’t existto them.

Change keeps comingIn the spring of 2008, I wouldhave advised you to optimizeyour Web site for searchengines. But now, everythingabout being found haschanged. It has become morecomplicated. The good newsis that competitors who wereahead of you are probablynot as far ahead anymore.Google is still the king ofsearch, but now YouTube isnumber two.

Social networks and socialmedia have passed thetipping point. Some sites getmore traffic from links and

mentions in social media oron social networks than theyget from a Google search.

Here is what is true today:

1. The Web is now aboutwhat is going on now.

2. New technologies allowyou to create newrelationships with newpeople online.

3. New technologies allowyou to make existingrelationships stronger.

The Web is the greatest directmarketing tool ever created.And that is a fantastic use forthe Web. Search and staticWeb pages can be a majorsource of business andrevenues. The social Web isnot the best for directmarketing. The social Web isbest for relationshipmarketing. You can do both. Ido. I keep direct marketingseparate from relationshipmarketing, but you could alsocombine them.

Here is what I believe to betrue and constant aboutinsurance agents and theircustomers.

1. Customers like to have a relationship with areal person.

G14408_20-24.qxp:April2010 4/16/10 9:12 AM Page 20

2. They prefer to find you insteadof you direct selling to them.

I admit that direct sales can workvery well. But I believe customerretention — which is where you makeyour profits — is much, much better ifyou can sell through relationshipmarketing. In the past, many peoplefound you through the Yellow Pages.Some found you through other staticmedia — newspapers, billboards, etc.

Take action todayThe Internet has passed these formsof advertising. Most insurance agentsstill don’t completely understand howto use the Internet. And now that theInternet is changing significantlyagain, many of you will wonderexactly what steps to take. Here is mysuggested list of action items, listed inorder of priority.

1. Create a Gmail account (aGoogle account).

2. In your Google account, set up Google Alerts andGoogle Reader.

3. Create a Twitter account.

4. Create a blog.

5. Create a YouTube account.

6. Look and listen for a littlewhile. Then, join theconversation!

Create a Google accountTo create a Google account, go towww.google.com. If you click on the“Sign in” link on the top right, you willthen see “Don’t have a GoogleAccount? Create an account now.”Click on that link to create an account.

The next page will ask you for acurrent e-mail address and apassword. The password is not yourcurrent e-mail’s password; it is thepassword you’d like to use for yournew Google account. You cannothave more than one Google accountper e-mail address.

The Google account will create a newGmail account for you. Use this newe-mail address for all other accountsthat I am going to suggest youestablish. That way, all of your socialWeb e-mail will come to the sameplace and will be accessible to youfrom any Internet connection.

Google will walk you through settingup an iGoogle page. This is a portalpage where you can add gadgets thatmake monitoring your social Webeasier and more convenient. On theright-hand side at the top of the pagewill be a link for “My Account.” Clickon this link to activate other tools thatGoogle provides for free.

Google AlertsThe first tool you should set up is“Alerts.” Just click on the link for“Alerts” and follow the instructions.Alerts lets you keep track of words orphrases that are mentioned on theWeb. This is your first step at trackingyour online reputation. Enter yourbusiness’ name, your name, yourcompetitor’s name, names for theinsurance companies you represent,etc. Don’t worry, you can come backand add, delete, or change these atany time.

Alerts will send you an e-mail once aday with a summary of any hits andthe link to that hit. You may go aweek or more without getting any e-mails related to certain phrases (suchas your business name). Don’t worryabout this.

Google ReaderNext, set up Reader. Reader enablesyou to track many blogs in one place.This is more convenient thanbookmarking the blogs and going toeach to see if there is an update. Tohave Reader track a blog for you, justenter the blog’s address in theReader by clicking on the “Add aSubscription” button at the top left-hand side of the Reader page.

What blogs should you enter? Well,you could look for blogs in or aboutyour local community. In search, lookfor the name of your town plus theword “blog.” Most newspapers, radiostations and TV stations now haveblogs. Ask around. You will besurprised.

Reading and commenting onblogs One of the first things you should dois add appropriate comments tosome of the blogs you read. Thisdoes two things. It introduces you tothe person writing the blog. Folksalways appreciate that. It also helpsothers discover that you exist online.You should not try to sell anythingthrough your comments. Yourcomments are just a way for you tojoin the conversation and begin tobecome a member of the community.

Create a Twitter accountTo create a Twitter account, go towww.Twitter.com and sign up.

Just like reading blogs, Twitter canhelp you create relationships. Start byfollowing someone on Twitter. MyTwitter name is williduke. SteveAnderson’s is stevetn.

To find folks to follow, click on the linkat the top right-hand side of yourTwitter page that says “Find People.”Then type the name of your town orother towns in your area. Click onanyone who appears. This will takeyou to their profile. The profilegenerally includes a brief descriptionof the person and a link to a Web site.Follow the link and see if the personlooks interesting. If so, follow thatperson by clicking on the “Follow”button under his/her picture.

This brings up a point about yourprofile. Upload a picture. Also, if youhave a Web site, enter the link sopeople can learn more about you.Other places to find folks to followinclude www.wefollow.com andhttp://search.twitter.com.

[ 21 ]

G14408_20-24.qxp:April2010 4/16/10 9:12 AM Page 21

What should you say onTwitter?You can say anything. But Irecommend you start by doing whatis called re-tweeting other people’stweets. When you find somethinginteresting that someone else hastweeted, copy it and paste it as yourown post. BUT start with “RT” (for re-tweet) followed by the @ sign andthen — with no spaces — the Twittername of the person whose tweet youare re-tweeting. People alwaysappreciate being re-tweeted. Theywill come check you out.

You can also reply to interestingtweets by starting your reply with the“@” sign followed by (no spaces inbetween) the person’s Twitter namewhom you are replying to. This doestwo things. It lets everyone know you are replying and to whom. Itshows up as a reply in the originalperson’s account.

You will need to click on the links on the right-hand side of your Twitter page regularly to see if youhave anyone sending you replies. You should also check “DirectMessages” regularly.

Links in tweetsYou will notice that many tweets havea link in them. This lets the personposting the tweet give you a way to goto a page and find more informationon the subject. This is a great way touse Twitter. A problem can be that thelink may be too long — remember,Twitter only allows 140 spaces.

There are several services thatshorten links. I use www.idek.net. Inaddition to giving you a shorter link,this service also keeps click-throughstatistics. This helps you know if otherfolks are finding your tweetsinteresting. You can also post pictureson TwitPic (www.twitpic.com). TwitPicthen creates a link to the page withthe picture.

Other Twitter toolsWhen you start following too manypeople, you will want to managethem in separate groups. I useTweetDeck (www.tweetdeck.com).Once you download it onto yourdesktop, you can follow and postwithout having to go online to theTwitter site. If you want to include alocation and map in your tweets, youcan use services such aswww.brightkite.com.

Twitter mobileAbout 40 percent of people usingTwitter use it primarily from their cellphones. Just like using TweetDeck onyour desktop, there are third-partyapps for your cell phone. I useTwitterrific on my iTouch and iPhone(www.twitterrific.com).

Create a blogYou can create a blog as a part ofyour Google account. In fact, you cancreate as many as you wish. Whyshould you create a blog, especially ifyou already have a Web site? A blogis regularly updated. It is aconversation.

I have always thought that the mostimportant thing about any Web site isnot why a person visits, but why theyshould return. Since your blogcontent will constantly change, thisgives people a reason to return. Bycontrast, a Web site is usually static.

What will you say in your blog?There are three types of content forany blog. The first is telling folksthings like what you had forbreakfast, etc. This is not the best usefor your blog.

The second is to provide authoritativeinformation on a subject in whichyou have some expertise. You are aninsurance professional. You cancertainly provide this type ofinformation. But don’t make it adirect selling type of post. Make it

something you would tell a friend orfamily member.

The third type of content is to providea way for others to discover newthings. You can, and should, also dothis. In fact, I think this should be atleast two-thirds of your content.

Will you find enough to say?When you read a blog that isinteresting enough for you tocomment on, create a short postabout that subject based on yourcomments. As a courtesy, alwaysinclude a link back to the originalblog post you are commenting on.The original blogger will most likelysee you have done this (rememberAlerts) and appreciate it.

When you discover somethinginteresting in Twitter posts you arereading – especially from peoplewhose links you follow – use it forthe basis of a short post. Rememberto provide a link to the place youfound the interesting information inthe first place. Be regular in yourposting. It doesn’t have to be daily,but you should not go a weekwithout a post.

You can also cover the hot topics ofthe day – news, weather events, etc.– from your perspective. Justremember, once you post it, it willhave a long life of its own. Even ifyou delete it, it has been indexed onsearch engines and still exists.

Create a YouTube accountGoogle owns YouTube, so you can do this through your Google account. YouTube is the second mostused search engine on the planet.People use it to find out “How To” do something.

Currently, there are almost no videos on how to do anything relatedto insurance. You should fix thatproblem. I use several tools to make videos.

[ 22 ]

G14408_20-24.qxp:April2010 4/16/10 9:12 AM Page 22

First, I use a Flip video camera. Theycost $100 to $150. The Flip cameracan be connected to your computerusing a USB connection built into thecamera. When you connect it to yourcomputer, it loads decent editingsoftware. This lets you film severalshort pieces and then combine themwith transitions. I find it helpful tocreate a storyboard on a pad ofpaper outlining what I want my videoto be before I start filming. This savesa lot of time later.

I also use a program called Camtasiafrom www.techsmith.com. It costs$300. It has great editing tools andlets you capture whatever you aredoing on your computer screen andturn that into a video.

I also have an inexpensive mixingboard and microphone for doingvoice-overs for my Camtasia videos.Decent audio quality is veryimportant. My mixing board was $85.You can get a good Shure condensermicrophone for about $75. I alsohave a basic microphone stand. Iconnect the mixing board to mycomputer’s audio input jack. I recordthe audio using Audacity, which isfree (http://audacity.sourceforge.net).Then I copy this as a .wav file into myCamtasia editor.

Putting it all togetherOverwhelmed? All of this may seemlike too much for you. Take it a stepat a time. I currently spend 30 to 90minutes a day on the thingsdiscussed in this article.

That may sound like a lot of time, butwhen you realize that it’s a primaryway I market my business, it makessense. Surely you (or someone atyour organization) should bespending more time than this onmarketing every day. If not, you willbe very pleased by how much betteryour business will do when you beginmarketing on a regular basis.

These tools are a great start tocreating new relationships andenhancing existing ones. They are alldesigned to allow you to become apart of the conversation that ishappening 24/7. Remember, this iswhere your current and futurecustomers are – or are going. Plus, this new technology is fun and fascinating.

Regardless of your age, it is alwaysgreat to get to know new people.

People are the lifeblood of anybusiness. Your future is with peopleyou have yet to meet. Put yourself ina position to say hello.

_________________________

This article was printed withpermission from the June2009 issue of The AndersonAgency Report (TAAR).www.taareport.com

[ 23 ]

G14408_20-24.qxp:April2010 4/16/10 9:12 AM Page 23

Absolute Risk Placement . . . . . . . . . . . . . . . . .IFC

Cumberland Insurance Group . . . . . . . . . . . . .13

Goodville Mutual Cas Co . . . . . . . . . . . . . . . . . .9

IA&B Partners Program . . . . . . . . . . . . . . . . . . .15

IA&B Series Ads . . . . . . . . . . . . . . . . . . . . . .5, IBC

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

LIG Insurance Co Ltd . . . . . . . . . . . . . . . . . . . .19

Merchants Insurance Group . . . . . . . . . . . . . .25

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

Penn National Insurance . . . . . . . . . . . . . . . . .23

Preferred Property Program . . . . . . . . . . . . . . . .3

Tri-State General Ins Ag . . . . . . . . . . . . . . . . . .19

Ad Index

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When Life insurance is a laughing matter

“Do you know the present value of your husband’spolicy?” the life insurance salesman asked his client.

“What do you mean?” countered the woman.

“If you should lose your husband, what would you get?”asked the salesman.

The woman thought a minute, then brightened up andsaid, “Probably a poodle.”

________________________________

Question: Do you know the difference between a manand a whole life policy?

Answer: A whole life policyeventually matures.

Source: http://www.insurance-finder.info/category/humor/jokes/life/

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

[ 24 ]

G14408_20-24.qxp:April2010 4/16/10 9:13 AM Page 24

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Affiliated with

In Delaware &Pennsylvania

Insurance Innovators, Inc.’s

Property DepartmentBuilder’s Risk

Contractor’s Equipment

MercantileHabitational

Shopping CentersOffice Buildings

HotelsDay Care/Health Care Facilities

Municipal/Educational InstitutionsBuilding Renovations

One to Four Family DwellingsVacant Property

Carriers have an A.M. Best rating up to A++Capacity up to $60,000,000 on better construction

Coverage may be written monoline or package

Inland Marine:

Primary and ExcessProperty Coverage:

Additional Advantages:

Barb Randall, ext. 134, barbara@iiigroup.comFran Reh, ext 135, fran@iiigroup.com

800-523-6422, 215-885-7300

Home Office Contact :

www.iiigroup.com

The property/casualty insurance companyIndependent Agents can trust most to serve

their valued customers.Become an Agent...

* It’s easy to do business with us

* Great agent compensation programs

* Competitive personal lines and

commercial lines products

* Rated “A-” excellent by A.M. Best

To become a Merchants Agent, contact:

www.merchantsgroup.com

Tina SchaedlerRegional Manager

Western Pennsylvania1-800-462-1077

ext. 3253tschaedler@

merchantsgroup.com

Sam GuarnieriRegional Manager

Eastern Pennsylvania1-800-322-8608

ext. 2200sguarnieri@

merchantsgroup.com

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Let Interstate help you reap the abundance of summer opportunities.

Ripe For the Picking

Your clients with outdoor businesses need extra protection for the unique risks that the summer season brings. Interstate can cover:

• Amusement Parks, Batting Cages, Kiddie Rides, Go-Karts & Bumper Boats• Festivals, Special Events, Parades and Carnivals• Hole-in-One and Fishing Contests and Bowling Tournaments• Sports Camps and Instructors• Horse Clubs, Boarding, Shows and Races• Pet Groomers, Kennels and Trainers• Outdoor Guides and Out�tters

Interstate also o�ers coverages for a variety of other seasonal and non-seasonal businesses with special coverage needs including:

• Flea Markets and Vendors• Driving Ranges• Beauty and Barber Shops• Health and Fitness Clubs• Bars, Taverns and Restaurants• Lawn Care and Landscaping Contractors• Janitorial and Window Cleaning Services• Power Washers• Garbage and Refuse Haulers

In Pennsylvania, Maryland, Delaware, West Virginia & Virginia 2307 Menoher Boulevard • Johnstown, PA 15905814-255-7878 • 1-800-452-0297 • Fax: 814-255-6010In Ohio, Indiana & Kentucky663 Park Meadow Road • Suite E • Westerville, OH 43081614-794-0800 • 1-800-701-5587 • Fax: 614-794-0840interstate-insurance.com

Call Interstate for the best coverages for all your hard-to-place risks.

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