PENNSYLVANIA

ALSO INTHISISSUE:________________

How to insure volunteers

Proposals’ E&O power

Why not to ignore Google+

Growing agency-carrier relationships

Goodbye, paragraph of legal jargon and resulting paralysis. Hello, definitiveanalysis and enhanced agency-carrier relationships. IA&B’s new agencyagreement analyses empower agencies and open lines of communication with carriers.

Page 12

2013 Company Satisfaction Index

Members can have their cake and eat it too with IA&B’s Company SatisfactionIndex. The survey, which remains open until May 15, allows them to sharepraises and frustrations – and to contribute to a tool that benefits agencies,carriers and the association alike.

Page 18

IA&B Marketing Center

Share your insight with consumers (customers and prospects) through localmedia outlets. The new Marketing Center offers public relations strategies,template press releases and a print-media contact database, along with step-by-step instructions on how to use each.

Page 20

12

18

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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 # 2013-5 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 Corner15 Glance at Events

17 IA&B Partners22 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

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

The latest in a long line of member benefits

Greetings, and welcome to the May issue. This spring, we havesomething beyond warm weather, longer days and vacationcountdowns to celebrate. The IA&B team unveiled a new tool thatis going to have a pretty exciting impact on the agency/carrierrelationship. It’s a whole new approach to agency agreements.

The new resource is detailed on page 12, but the gist is that theassociation revamped the review process. It’s unlike anythinganyone else is doing. So now instead of going into an agreementblind or stumbling through legal jargon, member agencies canapproach an agreement with confidence — or with specificsuggestions for improvement.

This is just the latest in a long line of resources your associationhas delivered. I encourage you to take advantage of yourmembership by using this and IA&B’s other tools. They’re yoursfor the taking. Just visit your association's website atwww.iabgroup.com.

Until next month,

Norm Basso

[ 5 ]

QUESTION: One of my carriers is askingus to send a letter to our homeownerpolicyholders, notifying them that we will beadding Identity Theft coverage to their policiesat renewal. In the letter, we will ask them to“opt out” if they don’t want it. Can we do that?

ANSWER:No. The regulators in Delaware, Maryland and Pennsylvaniahave long viewed this as impermissible. Sometimes referredto as “negative automatic roll-on,” the gist of the practice isthat customers are forced to monitor and opt out of offersin order not to be charged extra at renewal.

While as independent insurance agents, we often havestrong feelings about some of the coverage choices madeby our customers, the reality is that if we were on thereceiving end of this kind of offer, we would likely react the

same way they do, and view the offer as an attempt toforce us to accept coverage that we just don’t want.

As the saying goes, “The road to hell is paved with goodintentions.” While your goal is to protect customers whosecoverage you view as lacking, from the regulators’standpoint, it is an unfair trade practice. The coverageselection needs to be based on an opt-in mechanism. Froma marketing standpoint, you need to rethink the offer sothat your customers make the decision to add the coverageonto the policy, not to remove it. Will it be as effective?Probably not. Will you be less likely to explain yourself tothe regulator and pay a fine? Absolutely.

DO YOU HAVE A QUESTION? Email it to us at iab@iabgroup.com. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to 717-795-8347. We lookforward to answering your questions!

Member FAQ

Primary Agent | May 2013

State News

[ 6 ]

Using replacementcost estimatorswithout fearArming oneself with a disclaimer can bethe best protection when handling adouble-edged sword like replacementcost estimators. Producers usingestimators sometimes are uncertainabout the value calculated by thesoftware. And they sometimes worry itcould expose their errors & omissions if customers over-rely on the amount —or claim they did — when selecting theirpolicy limits.

To help members limit their exposure,IA&B developed a disclaimer thatproducers can use and tailor to theiragency as they see fit. The disclaimerreminds applicants that the use of theestimator is not a guarantee that theactual cost to repair will match theamount calculated. In addition, languageis also available for those who choose alower limit and could be exposed to aloss settlement penalty if they do notmeet the insurance-to-valuerequirement.

www.iabgroup.com/pa/rc_estimator

Lapses leaveDelaware non-resident licenseesin limboDelaware’s Feb. 28 license renewal datefor non-residents came and went.Without the Delaware Department ofInsurance’s (DOI) renewal notice (thedepartment stopped issuing them lastfall), some individuals and businessentities may have missed paying theirrenewal fees and now have a lapse in their license. The DOI recentlyencouraged non-residents to verify the status of their license online.

www.delawareinsurance.gov/services/licenseelookup.shtml

PCRB shareshistorical insightLearn what shaped Pennsylvania'sworkers' compensation (WC) pricingsystem over the past 20 years. A recentPennsylvania Compensation RatingBureau (PCRB) circular providesbackground discussion and explanationabout loss cost revisions and the pricingsystem as a whole.

www.pcrb.com, select“Circulars,” then “1614”

IA&B memberstalk shop in D.C.Independent agents’ voices were heardon Capitol Hill. IA&B members — alongwith agents from across the country —congregated in Washington, D.C. for theannual IIABA (Big “I”) NationalLegislative Conference.

Participants met with their congressionaldelegation to discuss terrorism riskinsurance, health care, insuranceregulation and agent licensing, among other hot-button federallegislative issues.

A sincere thank-you goes out to theagents who participated, as well as toTravelers, which sponsored IA&B’sdinner reception for attending members on April 17.

Mapping outIA&B’s futureIA&B members, staff and leadership puttheir heads together at a series ofMember Agent Panel (MAP) meetingsheld across the state last month. Theissues at hand? How the association canbest support members in their disasterpreparedness, technology needs, andmarketing and branding efforts.

The now-annual MAPs allow members,most of whom are agency owners andprincipals, to weigh in on their needs,industry issues and the association’sdirection. Each meeting also includesoverviews of the regulatory and legislativeclimate and IA&B’s recent activities, aswell as an open forum for attendees toswap struggles and solutions.

As always, participants’ feedback nowheads to the IA&B Board of Directors.Watch for updates and outcomes of theApril MAP meetings in Agent Headlinesand upcoming issues of Primary Agent.

New MembersW E L C O M E

Keystone Program Group LLCNorthumberland, Pa.

Jacob Forrest Kratz AgencyQuakertown, Pa.

Kramer Insurance CenterLanghorne, Pa.

Fritz Insurance Agency IncEast Norristown, Pa.

PIADA Insurance Agency IncHarrisburg, Pa.

The Cayemitte GroupYardley, Pa.

Gilmartin Insurance AgencyScranton, Pa.

[ 7 ]

Need help finding

a good match?

Introducing IA&B’s new Agency Agreement Analysis

Before you fall head over heels for another carrier agreement, make sure it’s a good match for your agency with our new member benefit — the Agency Agreement

Analysis (AAA). The AAA is a new method of evaluating contracts to assure they protect your interests and are compliant with laws and regulations. A comprehensive rating system will help you determine whether an agreement is a perfect match or a heartbreaker. IA&B can also offer sample language to help improve your compatibility with any carrier.

Learn more at iabgroup.com/AAA.

[ 8 ]

CURTIS M. PEARSALLCPCU, AIAF, CPIA

Curtis M. Pearsall, CPCU, AIAF,

CPIA, president of Pearsall

Associates Inc. and special

consultant to the Utica

National E&O Program,

supplied this article.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your E&O coverage,

contact IA&B at 800-998-9644

or iab@iabgroup.com.

Primary Agent | May 2013

Most agencies and theirrespective producersprobably look at theinsurance proposals theyprovide to customers andprospects as one of the keytools that will determinewhether they land theaccount. In many respects,this is correct. While a great proposal does notguarantee success, a poorproposal almost certainlyguarantees failure.

Typically, the insuranceproposal is broken down byline of business and lists thecoverages offered/proposedand the correspondingpremium. That’s fine andprobably serves the purpose.For example, say you areproviding a proposal to ahardware store. The store’sowner undoubtedly knowsthe hardware store businesswell, but how knowledgeableis he or she on the finerpoints of the insurancebusiness? Imagine youare the hardware storeowner who is receiving

this proposal. Does theproposal help youunderstand the insuranceprogram? Does it includereferences to terms such asACV/RC or co-insurance? Are these terms defined?

Educate customersand prospectsIf your proposals arestructured strictly to providean overview, you may bemissing an importantelement — one that mayactually play a role in landingthe account while alsoproviding some quality errorsand omissions protection.What is it? Look for yourproposals to educate yourprospects and help themunderstand their insuranceprogram. Educatingcustomers and prospects has been shown to be a keyissue in minimizing E&Oclaims activity.

If an E&O claim developed,the defense attorney(defending the agency) andthe plaintiff’s attorney

(defending your customer)would review the agency fileas well as all of the specificdocuments involved in theprocurement of the coverage.You can bet that the proposalprovided will be reviewed indepth. The goal is to ensurethat when this occurs, theproposal helps your case, not hurts it.

Customers and prospectsheavily rely on proposals to make informed purchasingdecisions. The best proposalsclearly lay out the coveragesoffered, with documentationultimately being made todetail what was — and wasnot — purchased. To ensure there is nomisunderstanding, it is highly suggested to securethe insured’s signature/acknowledgement detailinghis or her buying decision.

Moreover, to ensurethoroughness andconsistency, the agencyshould have a standardtemplate detailing what the

INSURANCE PROPOSALS — A POTENTIALLYPOWERFUL E&O PREVENTION TOOL

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

[ 9 ]

proposal should include and how itshould be communicated. Withoutthis, the potential exists thatproposals will lack the necessarydetail and explanation.

Key ingredients of a proposalDetailed explanations and definitionsof key terms. Just because the agencyunderstands the terms does not mean the client does. Educating yourclient on the finer points of theproposal will help him or her betterunderstand the insurance programand should also help minimize thepotential for an E&O claim. As youpresent the proposal, look foropportunities to ensure that theprospect understands the material.Avoid abbreviations if there is anychance the customer will notunderstand what they mean.

Easy-to-understand information. The language should not be abovethe ability of the prospect tounderstand it.

Reference any mortgagee or losspayee you know of.

Be as detailed as necessary. Forexample, if you are providing aproposal for Commercial Auto andsome drivers are excluded, areference to the excluded (orconversely acceptable) drivers isappropriate. When dealing withWorkers’ Compensation, based onthe corporate structure of the entity,reference should be made to whetherthe policy affords coverage for soleproprietors/partners. On GeneralLiability, it should be clearly stated if the policy is “subject to audit.” For a Professional Liability/D&Opolicy, provide clarification on issuessuch as “retro date” and whether the defense is within or outside of the limit of liability.

Where applicable, include astatement that clearly denotes that higher limits are available. This would certainly be applicable in references to an umbrella or excess limits policy.

Include A.M. Best information foreach of the carriers, with anexplanation of what the ratingmeans. It is recommended to use the exact definition as provided by A.M. Best.

Include a disclaimer. There is no waythe proposal can include every singleaspect of the insurance program. Adisclaimer, such as the following, willprovide a degree of E&O protection:

Information contained in thisproposal is intended to provideyou with a brief overview of thecoverages provided for referencepurposes only. It is not intended to provide you with all policyexclusions, limitations andconditions. The precise coverageafforded is subject to the terms,conditions, and exclusions of the policies issued.

In addition, if your agency has reliedupon information provided directly by the prospect, consider including a statement such as “this proposal is based on information provided and we cannot attest to the accuracyof this information.”

If any of the carriers referenced isnon-admitted, provide an explanationof what this means. Verbiage such as the following is suggested:

The insurance company does notparticipate in any of the insuranceguarantee funds created by [theapplicable state] law should theinsurance company becomeinsolvent and be unable to honorclaim payments.

A clearer understandingAt the end of the day, while yourproposals may be a little longer, your client will have a much clearerunderstanding of the coveragesproposed and how they work. Thiscould very well be the difference that helps you land the account. Plus, if a problem develops down the road, the detail provided in your proposal could be key in thedefense of your agency.

Look or your

proposals to

educate your

prospects … a key

issue in minimizingE&O claims activity..

Coastal AgentsAlliance, LLC

Coastal Homeowners

Insurance

Sharon KarlssonPhone: 201-407-7151

skarlsson@coastalagentsalliance.com

ISO HO3/HO6Immediate Quotes15% commission

Primary & Secondary Homes are eligibleAM Best “A” Rated

For an appointment, contact:

CoverageC O R N E R

[ 10 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

Primary Agent | May 2013

Margaret Morse, a memberof Christ King church, wasdelivering a statue of theVirgin Mary to a parishioneron behalf of a volunteerservice organization whichconsisted of members of thechurch. Ms. Morse ran a red light and crashed into a vehicle being driven byHjalmar Heikkinen, an 82-year-old barber. Mr. Heikkinen sufferedpermanent paralysis as aresult of the collision.

In the case of Heikkinen v.United Services AutomobileAssociation (USAA),Margaret E. Morse, CatholicMutual Relief Society ofAmerica, and theArchdiocese of Milwaukee,the Wisconsin trial courtawarded Mr. Heikkinen$16,308,366 for past andfuture medical expenses andpast and future pain andsuffering. In addition, the juryalso awarded Mr. Heikkinen’swife $500,000 for loss ofconsortium.

Two questions. First, did the church’s Workers’Compensation policy coverthe medical expenses for Ms. Morse’s injuries? Second,was Ms. Morse an insuredunder the church’s BusinessAuto policy?

Workers’CompensationThe large majority of states,including Pennsylvania,Maryland, Delaware and Ms. Morse’s state ofWisconsin, do not extendcoverage to volunteers undertheir workers’ compensationstatutes. There areexceptions. Some states do extend workers’compensation coverage to volunteers, especiallyvolunteer firefighters, undertheir statutes. In some ofthose states that do recognizethe volunteers’ rights toworkers’ compensation, the coverage is mandatory. In other states, workers’compensation coverage for volunteers is optional.

Since workers’ compensationpremiums are based onpayroll, how can a premiumbe determined for unpaidvolunteers? The states usevarious methods. Forexample, the State ofWashington charges $0.0478per volunteer hour.

One final note. Do not bemisled by the VoluntaryCompensation AndEmployers Liability CoverageEndorsement. It does notextend coverage tovolunteers. It is used toextend coverage to exemptemployees; e.g., domestic,farm and casual.

Since a volunteer is notusually covered under theworkers’ compensationstatutes, then the “exclusiveremedy” of workers’compensation for work-related injuries does notapply. Therefore, thevolunteer can bring suitagainst the organization forany work-related injury oroccupational illness.

VOLUNTEERS — WHAT COVERAGE DO THEY HAVE?

Business AutoIf the organization has a Business Auto policy and their Liability coverage is triggered by Symbol 1, Symbols 2, 8 and 9, or Symbols 7, 8 and 9, the organization and thevolunteer are covered if the volunteeris driving a covered auto owned, hired or borrowed by the namedinsured. Therefore, volunteers are notcovered under the Business Autopolicy when driving their personallyowned autos (the usual situation).

If you want to push the envelope andsay that the organization borrowed the volunteer’s auto, it won’t work. The Business Auto policy specificallyexcludes coverage for the owner of a hired or borrowed auto.

If the Employees As Insuredsendorsement is added to the BusinessAuto policy, coverage is extended toemployees when they are using autosthey own, hire or borrow on behalf ofthe named insured. It does not extendcoverage to volunteers.

Unlike the Commercial GeneralLiability policy, the Business Autopolicy makes no reference tovolunteers. They are treated as any other member of the generalpublic. They must rely on theirPersonal Auto policies, which likelyalso covers the organization.

Commercial General LiabilityGood news. The Commercial General Liability policy includesvolunteers as insureds whileperforming duties related to theconduct of the named insured’sbusiness. In addition, the MedicalPayments exclusion for any insured,does not apply to volunteers. Thisexception exists since there is usuallyno workers’ compensation coverage.

One final question. How many of youthink Ms. Morse’s Personal Autoliability limits were sufficient to pay hershare of the $17,000,000 judgment?

Y’all take care!

[ 11 ]

Want moreJerry? Previous editions of JerryMilton's Coverage Cornercolumn are available on theIA&B website.

Read up!www.iabgroup.com/pa/coverages

800-334-5579www.gotapco.com

“Ar

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The TAPCO Service Pledge

1,000 Strong More than 1,000 classes of P&C businesswritten under binding authority.

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Call. Quote. Bind. TAPCO’

Personal Liability coveragein a five-minute phone call.

CARRIER RELATIONS

Growing agency-carrierrelationshipsIA&B breaks new ground on agency agreements

Goodbye, paragraph oflegal jargon andresulting paralysis. Hello,definitive analysis andenhanced agency-carrier relationships.IA&B’s new agencyagreement analysesempower agenciesand open lines ofcommunication with carriers.

Primary Agent | May 2013

Agency agreements come in various shapes and sizes, and have long been a source of tension for independent agencies. A perceived (or, in some cases, actual) imbalance in power in the

agency-carrier relationship, the lack of time or legalknowledge for proper analysis, and a wariness of carriers’openness to discussion have prevented agencies from being able to provide input and having an active role in theagreement-review process. Until now.

IA&B recently unveiled a new process to improve agency-agreement analyses. While the review continues to address the same key provisions of agency agreements (see sidebar), the resulting report differs drastically from whatagencies — and carriers — have seen before.

The final product is now summed up into a “meets/does notmeet” overview, so agencies can recognize immediately if theagreement is generally consistent with industry standards andadequately protects an agency’s interests. From there, IA&Bprovides a complete picture of the agreement, including anassessment of the core provisions and, when necessary,sample language agencies may suggest as a substitute.

Reaching a turning pointAgency-agreement reviews are nothing new. IA&B and otherstate and national agents’ associations have offered them as aservice to members for years. The cookie-cutter approach tothose reviews and resulting lack of usefulness are nothingnew either.

Then two years ago, IA&B had an epiphany of sorts. ErieInsurance approached IA&B with a draft of its revised agencyagreement and asked for the association’s input before theinsurer released it to agents. From there, IA&B worked withErie to make substantial edits that resulted in a “clean”product. The process was constructive and, in the end, a win-win: Erie avoided the potential influx of questions andrequests for revisions from agencies, and agencies had peaceof mind signing the agreement.

The process was a turning point for how IA&B approachedagency agreements. It gave precedence for a collaborativereview process and a truly useful outcome for agencies andcarriers alike.

Providing a complete pictureFrom discussing agencies’ needs at IA&B Member AgentPanel meetings to poring over and comparing countlessexisting agency agreements, IA&B employed a holistic

[ 13 ]

A

Key provisionsIA&B’s analysis considers theseagency-agreement components:

Agent’s authority

Agent’s duties and representations

Handling of funds

Billing responsibility

Commissions

E&O

Indemnification/hold harmless

Ownership of expirations

Privacy/confidentiality/security

Agency change of ownership

Terminations

Broker of record

Dispute resolution

[ 14 ]

CARRIER RELATIONS

approach to revising itsagreement-review process.

The result is a consistentprocess that IA&B employs toreview an agreement. For anycriteria that is not consistentwith industry standards or donot protect an agency’sinterests, IA&B notes theagreement’s current stance,shares how other agreementsaddress the provision and then provides sample languagefor consideration. The criteriaare weighted by how criticalthey are, so IA&B canaccurately provide an overallrating on the agreement.

IA&B’s final analysis isavailable in two forms — asummary sheet and a fullreview. The summary sheetprovides an overall rating thatdesignates whether theagreement “meets” or “doesnot meet” agencies’ interestsand industry standards. It thenlists any critical provisions thatare not “met” and providespossible alternatives, toinclude sample language. The full review provides amore in-depth assessment ofthe agreement, including anoverview of the criteriaconsidered in the analysis.Member agencies, in manycases, can gain enough insightfrom the summary sheet todecide if they want to requestrevisions from the carrier and,should they choose, to knowhow to approach them.

Enhancing agent-carrierrelationshipsThe overarching goal of thiseffort, in addition to providinga unique educational tool, is toimprove the agency-carrierrelationship. Member agencies,as well as carriers, can submitagreements to IA&B. Fromthere, the process will be open,with IA&B notifying carrierswhen their agreements areunder review and encouragingdialogue when analyses arecomplete. The finalizedreviews will be posted in alibrary on IA&B’s website.

The process is a win-win.Agencies gain confidence inthe agreements they sign andimproved rapport with thecarriers they represent, whilecarriers receive a unifiedresponse to their agreementsand, when necessary, concreteideas and sample language for consideration.

To submit an agreement forreview, member agents (andcarriers) may contact IA&B at800-998-9644, option 0, oriab@iabgroup.com.

Law 101While an agency agreement is, bydefinition, rooted in contract law, some ofits provisions may overlap with statutoryand/or common law. When this happens,some provisions of the contract may bepreempted or overruled by applicablestatutory or common law.

Knowing these key concepts and termswill aid in understanding the agency-company relationship.

Statutory law: is clearly rooted in a statutethat was promulgated either by Congress(federal statute) or a state’s GeneralAssembly (state statute)

Common law: also known as case law, isdriven from decisions made by the courts

Contract law: defines rights andobligations that are derived from acontract, where parties agree, for adequate consideration, to perform or not to perform certain things

Date Topic Location

1 William T. Hold Commercial Lines Baltimore, Md.

CISR Commercial Property Pittsburgh, Pa.

2 CISR Commercial Property Altoona, Pa.

CISR commercial Property Salisbury, Md.

7 CISR Commercial Property Philadelphia, Pa.

8-11 CIC Personal Lines Hunt Valley, Md.

8 E&O Risk Management Mechanicsburg, Pa.

9 Commercial Changes Seminar Wilkes-Barre, Pa.

14 CPIA Module 1 Pittsburgh, Pa.

14-15 James K. Ruble Graduate Seminar King of Prussia, Pa.

14-16 P&C Licensing Study Course Mechanicsburg, Pa.

15 CPIA Module 2 Pittsburgh, Pa.

16 CPIA Module 3 Pittsburgh, Pa.

21 Commercial Changes Seminar Baltimore, Md.

22 CISR Personal Residential Frederick, Md.

CISR Personal Lines Miscellaneous Reading, Pa.

23 Commercial Changes Seminar Lancaster, Pa.

CISR Commercial Casualty I Lehigh Valley, Pa.

29 CISR Elements of Risk Management Mechanicsburg, Pa.

Glance at EventsMAY CALENDAR

[ 15 ]

CERTIFIED INSURANCE COUNSELOR (CIC)PROGRAM

Learn how coverages work in the real world from nationallyrecognized instructors who’ve been there. The CICcurriculum expands your knowledge beyond the basics,developing a keen awareness of special coverage types andthe ability to detect hidden exposures.

Upcoming CIC institutes:Personal Lines May 8-11 Hunt Valley, Md.Agency Management* June 17-20 Erie, Pa.Life & Health June 17-20 Lancaster, Pa.*Approved for loss-control credit for Utica policyholders.

For more information or to register, go to:iabgroup.com/CIC

JAMES K. RUBLE GRADUATESEMINARS—CIC Update Option

Concurrent sessions give you flexibility to focus your learningon more complex or specialized coverage type. Update yourCIC, strengthen your client relationships and increase yourbusiness with the knowledge gained in just two days at aRuble Graduate Seminar.

Upcoming James K. Ruble Graduate seminars:May 14-15 King of Prussia, Pa.June 3-4 Annapolis, Md.

For more information or to register, go to:iabgroup.com/Ruble

Platinum ProfileInsurance Agents & Brokers proudly recognizes Selective Insurance

Company of America as one of its Platinum Partners. IA&B Platinum

Partners dedicate the highest level of sponsorship to our organization.

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 1,100 independentagents in 22 Eastern and Midwesternstates. Commercial insurance for smalland medium-sized businesses, lightindustry, and public entities representsabout 83 percent 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 49th 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.

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 in 1926,Selective has remainedcommitted to building strongrelationships with all of ourstakeholders. We value therelationships we have built witha select group of independentagents, and are dedicated tosupporting their successthrough the powerfulcombination of our ‘hightouch’business model and leading-edge technology.”

Gregory E. Murphy, Chairman, President and CEO

FEATURED PARTNERSelective Insurance

Company of America

CHIEF EXECUTIVE OFFICERGregory E. Murphy

Chairman, President and CEO

HOME OFFICE LOCATIONBranchville, New Jersey

A.M. BEST RATING A (Excellent)

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

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

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at 800-998-9644,

717-795-9100 or visit us

online at www.iabgroup.com

to get started.

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

Thank you for your continued sponsorship.

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupDonegal Insurance GroupErie Insurance GroupHarleysville 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 LEVELISU insurance Agency NetworkProgressive 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 May 2013

ASSOCIATION AT WORK

2013 CompanySatisfaction IndexMember participation is key ingredient in survey’s success

Members can have their cake and eat it toowith IA&B’s CompanySatisfaction Index. Thesurvey allows them to share praises andfrustrations — and tocontribute to a tool thatbenefits agencies, carriersand the association alike.

Primary Agent | May 2013

The proof is in the pudding. Slicing in half the timenecessary to participate in IA&B’s CompanySatisfaction Index (CSI) contributed to an 80 percentincrease in completed surveys last year. For member

agencies, that means a more comprehensive look at theagency-company relationship and, in turn, a greater benefitwhen comparing their experiences or considering newappointments.

Recipe for successLast year, IA&B separated the eight-year-old CSI into twoannual surveys, which alternate between personal lines and commercial lines, thus reducing participants’ timecommitment. The 2013 index, which opened April 15, focuses on commercial lines carriers.

Participants rate their top three carriers on a series ofstatements using a four-point scale, where 4 indicatessatisfaction and 1 denotes dissatisfaction. Categories includeproducts, pricing and underwriting; policy service and claims;agency/company relationship; and technology.

Worth its saltCompleting the CSI helps carriers to improve theirperformance. There are tangible benefits to member agenciesas well: Results provide the ability to compare relationshipswith those of their peers and to benchmark companies beforeaccepting appointments. And globally, the tool is vital toIA&B’s dialogue with carriers.

As member participation increases, the CSI is gainingcredibility within the industry. Results are showing up in tradepublications, as well as in carriers’ marketing materials andagency-visit discussions. And company executives are toutingthe results’ use when evaluating their agent relationships.

What it boils down toIn the day where agency-company relationships are strainedby mounting pressures, growing competition and an uncertainmarket, opening up lines of communication is more importantthan ever. And IA&B’s CSI accomplishes just that.

All member agency employees are encouraged to share theirexperiences with commercial lines carriers before the 2013CSI closes on May 15. Participation has never been easier andthe results never more valuable.

[ 19 ]

TFood for thoughtfrom the 2012 CSIThe 2012 CSI gauged members’experiences with personal lines carriers. A record-setting 507 participants completed the survey. Comprehensiveresults and analysis are available atwww.iabgroup.com/csi; a synopsis follows.

Members' overall satisfaction with personallines carriers remained nearly constantbetween the 2010 and 2012 CSI.

Collectively, larger regional carriersreceived the highest satisfaction rating,while national carriers, as in past surveys,received the lowest rating.

When dissected by category of questions,survey respondents' satisfaction remainedthe highest with their carriers' policyservice and claims and lowest withtechnology — a trend continued fromprevious surveys.

The following carriers received the highestsatisfaction ratings: Goodville MutualCasualty Co., MMG Insurance, Donegal,Penn National Insurance and Selective.

CSI in a nutshellThe survey is a gauge of IA&B members’ collective experienceswith carriers’ products, underwriting, claims and technology.

Save thedates

Who: all IA&B member-agencypersonnel

What: 2013 Company SatisfactionIndex survey

Where: www.iabgroup.com/csi

When: April 15 through May 15

Marketing Center tip! At a loss for press release content?Look no further than IA&B’sconsumer education pieces. Vettedby insurance and legal experts andreviewed by independent agents, thecontent is available as raw text forcopying and pasting into a pressrelease — or other communication.Read more in the Marketing Center.

IA&B Marketing CenterPR/Media Relations ResourcesPosition yourself as the industryexpert you are

Share your insight with consumers (customers andprospects) through local media outlets. All too often theinsurance industry receives a bum rap in the press. Youcan counteract that by sharing tips to reduce risk, localcommentary on national (or international) insurance newsand tales of your agency’s good deeds. And building arapport with local media outlets will pay dividends.

IA&B streamlines media outreach. 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 creatingand implementing a PR strategy.

Best practices:

Commit to the task. The benefits of earned media(publicity) far outweigh the efforts that media outreachrequires. However, understand that developing andimplementing a public relations strategy and creatingmedia relationships take time and perseverance.

Establish media relationships. Reporters and editorsappreciate reliable, knowledgeable sources who make their jobs easier. Build lasting media relationships by being concise in your communications and prompt in your responses.

Select a media contact. Choose one agency staff person to serve as the media conduit for disseminating pressreleases and responding to requests. While this persondoesn’t need to be the one who handles interviews, he or she does need to be readily accessible to coordinateyour agency’s responses.

Visit the Marketing Center:www.iabgroup.com/pa/marketing

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[ 21 ]

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Primary Agent | May 2013 TechnologyU P D A T E

MATTHEW MARKO

Matthew Marko is a marketing

process manager for Progressive

Insurance and can be reached at

matthew_marko@progressive.com.

He works to provide local

marketing strategies and tools to

help independent agencies grow

their business and has developed

online marketing programs and

webinars for Progressive agents on

ForAgentsOnly.com. He is one of

40 local search experts invited to

contribute to the authoritative

annual Local Search Ranking

Factors (www.davidmihm.com/

local-search-ranking-factors.shtml)

study. Matt also recently did an

Insurance Journal podcast on this

subject which can be found at:

http://www.insurancejournal.tv/

videos/8821/

This article reflects the views

of the author and should not be

construed as an official statement

by ACT.

[ 22 ]

WHY GOOGLE+ SHOULD BE PART OF YOURAGENCY’S ONLINE STRATEGY

If you’ve been following Google’s socialexperiment from afar, you may have lostGoogle+ in the shadow of social media’s 800pound gorilla, Facebook. But before youdismiss the search giant as an also-ran insocial, take note of Facebook’s own petproject, Graph Search. Facebook’s foray intosearch despite Google’s clear dominance(two out of every three searches online areconducted using Google1) reveals the cracksforming in the wall separating search andsocial. Both companies are preparing forwhen the wall comes tumbling down, andnow’s the time to position your agency tocapitalize. If Progressive’s marketing datahold true, many more agents are opting for

a place on Facebook over Google+. Here’swhy you should diversify by building astrong presence on both.

Google+ is much more than socialGoogle+ does have social strengths, such asthe ability to easily segment and targetcommunications to customers using Circlesand host Hangouts with customers oninsurance topics. However, for now theprimary insurance agency benefit ofGoogle+ is local search optimization.Americans conduct 3.6 billion local searcheson Google each month, and Google+, actingas an online business directory, is the mosteffective way to capture those prospects.2

It’s also the best way to do sowithout having to compete with bigbrands’ multi-million dollar onlineadvertising budgets. A key reason toengage with Google+ is to acquirenew customers in a way that noother social media site or onlinedirectory can currently offer.

From Places to PlussesGoogle reports that one in threesearches have local intent, and 83percent of consumers search onlinefor local businesses.2 If a searchquery suggests local intent, Googleincludes the Google+ local pages inthe search results, typically near thetop. Formerly called Google Places,Google+ local business pages nowinclude social elements as well,making an agency’s participation inGoogle+ (and customer interactionon the platform) a growing factor inshowing up in local searches.

Here are five steps to start takingadvantage of Google+ for localsearch:

1. Claim and verify itIf you haven’t done so already, claimand verify your Google+ listing. Thisis something you can easily do onyour own(www.google.com/+/business/get-started.html). Be sure not to create aduplicate Google+ listing for youragency if one already exists. It’sagainst Google’s rules.

To check if your business already has a Google+ listing, simply go to www.google.com/maps and enter your business address andphone number into the search bar. If a listing shows up reflecting your business name, then youragency already has a Google+ localbusiness page.

Ensure it is under your controlthrough the owner-verificationprocess. If someone in your agencydoes not have the log-in informationto manage your Google+ listing, click on “Manage this Page” on your business’ Google+ page tobegin the verification process. Owner verification is a critical step inbuilding trust with Google andguaranteeing that you control yourbusiness information on Google+.Progressive research indicates that

as of November 2012, more than halfof independent insurance agencieshad failed to complete this criticalfirst step, significantly diminishingtheir ability to rank highly in localsearch results.

If you’re not the do-it-yourself type, programs like Progressive’sListAgent or local search packagesfrom Project CAP can help you with claiming your business listingsonline and optimizing your localpresence. While you’re at it, it’s anexcellent idea to also claim localsearch listings at sites like Yahoo,Bing, and Yelp.

2. Build trust in itReview your Google+ listing foraccuracy and be sure that you’reusing the identical name for youragency and its contact informationacross all directories, on the Internetand on your agency website. Searchengines like Google look forconsistency in your agency’s name,address and phone number (NAP)online, and your visibility in searchresults improves if you haveconsistent listings. Exact NAP matchis important. For example, you don’twant your agency website to say“ABC Insurance Agency” while yourGoogle+ listing says “ABC InsAgency.” GetListed.org and Yext.comoffer free, simple tools to assess theconsistency of your agency’s name,address and phone online.

You also can improve your localsearch ranking over time by creatingreferences to your agency NAP onadditional local directories. There arehundreds of local directory siteswhere you can submit your NAPinformation for free, with the onlycost being the time it takes you tomanually claim them. Alternatively,Progressive’s ListAgent program cando this for your agency for under$100 a year.

Primary Agent | May 2013

Americans conduct 3.6billion local searches on Google each month,and Google+, acting as

an online businessdirectory, is the most

effective way to capturethose prospects.

Personalized helpProject CAP, which providesdigital marketing productsand services to agenciesand oversees the newtrustedchoice.com agent-locator infrastructure, offers a local searchoptimization package thatfocuses on Google+.

ProjectCAPMarketing.com

[ 23 ]

3. Connect it Google changed its local rankingalgorithm in 2012 to favor Google+business listings that link to well-optimized websites, making youragency website’s searchoptimization an important factor inboth organic and local searchresults. While website optimizationcan be time-consuming andexpensive, here are a few simplechanges to help your website’slocal search optimization:

w Include your agency’s name,address and phone number intext (not as an image) in theheader or footer of everypage on the site.

w Include your city or townname in your title tags, metadescriptions and header (H)tags.

w If you have multiple agencylocations, create a separate“location” page on yourwebsite for each location, anda separate Google+ localbusiness page for eachlocation. Submit eachlocation’s page to itsrespective Google+ localbusiness page.

w Start using AuthorshipMarkup (http://webmarketingtoday.com/articles/authorship-the-top-search-marketing-tactic-in-2013/) on youragency website and blog posts.

If you don’t have a website,consider using a carrier directorypage in place of a website in yourGoogle+ listing. For example, the

ProgressiveAgent.com agentdirectory offers Progressive agentsfree locally optimized agency pagesthat work well for this purpose.

4. Populate itPopulate your Google+ profile withcontent. Thoughtfully consider yourbusiness description, including keysearch terms that describe whatyour agency does. Make use of allbusiness listing categories available

and include photos and videos.Providing this content not onlyhelps your agency rank higher inlocal searches, but it also makesyour listing stand out to consumersand increases the likelihood thatthey’ll do business with you. Read Local Search Ranking Factors(www.davidmihm.com/local-search-ranking-factors.shtml) formore tips on optimizing your local listings.

5. Legitimize itOn your agency website and withinyour established agency referralprocesses, ask for reviews onGoogle+ as well as other sites likeYelp and Citysearch. Not only arereviews important to yourprospects – 70 percent ofconsumers say that they trustonline reviews as much as personalrecommendations, according toBrightLocal. Reviews are alsoknown to be an important localsearch ranking factor. Progressiveresearch indicates that the averageindependent insurance agency hasless than one online review, socreating a slow-but-steady reviewgeneration process can really makeyour agency stand out.

The battle between Facebook andGoogle remains fierce, and both aremaking big moves to enhance theirvalue to consumers and businesses.Questions may remain over socialROI, but there’s no question localsearch is critical as more and morepeople start their insuranceshopping online. Adding Google toyour online strategy brings a fewsocial benefits, but the local searchimpact makes it a clear plus.

References:

1http://techcrunch.com/2012/10/11/comscore-googles-search-engine-market-share-increased-in-september-yahoo-down-another-0-6-percentage-points/

2http://blumenthals.com/blog/2012/11/13/ed-parsons-1-in-3-searches-at-google-are-local/

TECHNOLOGY UPDATE

[ 24 ]

Owner verification is acritical step in buildingtrust with Google….More than half of

independent insuranceagencies [have] failedto complete this criticalfirst step, significantlydiminishing their

ability to rank highly inlocal search results.

Coastal Agents Alliance . . . . . . . . . . . . . . . . . . . .9

Donegal Insurance Group . . . . . . . . . . . . . . . . .1

GreenWing Solutions . . . . . . . . . . . . . . . . . . . . .5

Guard Insurance Group . . . . . . . . . . . . . . . . . .21

Harleysville Insurance . . . . . . . . . . . . . . . . . . . . .3

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

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

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

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

TAPCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

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.

Q. How many producers does it take to change a light bulb?

A. None. They’ll just have a CSR do it.

Q. How many CSRs does it take to change a light bulb?

A. Eight. One to change it, and seven to stand around and complain about how producers do it.

Q. How many actuaries does it take to change a light bulb?

A. It depends. How many did it take last year?

Source: www.barricksinsurance.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 iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

Jokes du jour