The Connecticut Independent Agent

August 2012

The Connecticut Independent Agent

This Issue’s Features

The E & O Corner Considerations When an Insurance Agency Purchases Another Agency 03 Technical Bulletin Domestic Workers Unlawfully Employed at the Time of Injury are Entitled to Benefits 05 Workers’ Compensation—3.A Issues Massachusetts 06 Month In Review 07 IIAC Agent Alerts Insurance Department Bulletins NEW IIAC Member Benefit Introduced! 09 RLI Stand Alone Personal Umbrella 12 Swiss Re 12

In Every Issue August and September Continuing Education Courses 10 Events 13 Big “I” Advantage Programs 14 About Us 19

Associate Member Index Associate Members - Insurance Brokers & Services 15

Associate Members - Insurance Companies 17

“The Connecticut Independent Agent

is the official publication of the Independent Insurance Agents of Connecticut

30 Jordan Lane Wethersfield, CT 06109 Phone: (860) 563-1950 Fax: (860) 257-9981

www.iiact.org

Warren C. Ruppar President

Tracy Hearn Office Manager / Event Planner

Ed Meaney, CPCU Education Director

Laura Szatkowski E&O Program Administrator

Rosemary Mullaly

Lawyers’ Liability Program RLI

This publication is intended to provide accurate and authoritative information on the subject matter covered. It is dis-tributed with the understanding that nei-ther IIAC, nor any contributing author, publisher or contributor is rendering le-gal, accounting or any other professional service and assume no liability whatso-ever in connection with its use. Further, the electronic links to our associate mem-bership found in this publication are pro-vided as a courtesy to our readers and do not necessarily indicate an endorsement by IIAC. News items will be accepted / printed at the discretion of the IIAC. No paid advertisements are accepted in this publication. Please contact Warren Ruppar for further information.

IIAC Staff

Independent Agents Services Staff

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 3

Tax considerations must also be addressed in advance of en-tering into a stock purchase agreement. Most, although not all, insurance agencies that are stock companies are Subchap-ter S corporations – meaning that they are “pass through” entities for tax purposes. The profits and losses realized by these companies are passed through to the owners in propor-tion to the percentage of ownership of each owner. Such enti-ties file federal tax returns for informational purposes only and do not pay federal income tax. State tax rules differ from state–to-state.

(b) Asset Purchase - An Asset purchase is the more frequently used method for the purchase of an agency/brokerage or a book of business. By an asset purchase agreement, the pur-chaser is only purchasing a particular list of assets from the seller for a specific price. The sale need not include all of the selling entity’s assets. Although variations exist, the purchaser in this type of transaction generally is not assuming any liabili-ties of the selling entity. There is still the need, however, to delineate the specific financial documents provided to the purchaser in connection with the transaction and also to in-clude appropriate and complete indemnification language in the agreement for both the purchaser and the seller, depend-ing upon the facts of a particular transaction. The same con-siderations come into play when purchasing a book of busi-ness since the book of business is the only asset being pur-chased.

Consideration will also have to be given as to the manner of payment for the assets. Payment can either be made in a lump sum, over a period of time, or a combination of the two. What is most appropriate depends upon the specific nature of the business being sold and the financial situations of both the purchaser and the seller.

A popular alternative to stock corporations is the limited liabil-ity company or LLC, which has been authorized by all states, including Connecticut. This entity combines the protection from liability to owners afforded in traditional stock corpora-tions, while also allowing for simpler formation and treatment of income and losses. A purchaser may purchase the entire business of a selling entity that is a limited liability company (along with all of the liabilities of the seller), or may buy all, or a portion of, the assets of the selling limited liability company.

Sometimes it is prudent for a purchaser to form a new entity for the purposes of purchasing the assets or business of a sell-ing insurance agency. In such instances, it is most often ap-propriate to form an LLC for that specific purpose.

Other Considerations The other considerations of a buy/sell transaction are numer-ous and varied, depending upon the particular transaction in

The E&O Corner is authored by James C. Keidel, Esq., Christopher B. Weldon, Esq., and Jan A. Marcus, Esq. of Keidel, Weldon & Cunningham, LLP.

CONSIDERATIONS WHEN AN INSURANCE AGENCY OR BROKERAGE PURCHASES ANOTHER AGENCY

OR BROKERAGE OR A BOOK OF BUSINESS

The current market conditions present many opportunities for insurance agencies and brokerages with regard to the acquisi-tion of other agencies or brokerages or books of business. There are various issues and concerns that must always be considered by both the selling and purchasing entities before and during any acquisition process. As we regularly handle these types of matters, in this issue of The E & O Report we will review some the considerations that come into play when an agency or brokerage is looking to acquire another agency, brokerage or a book of business.

Types of Purchasing Agreements The precise type of purchase agreement for a particular trans-action will vary in specifics from transaction to transaction. However, there are basically two types of purchasing agree-ments that are used in connection with the purchase or sale of an agency or a brokerage; a stock purchase agreement and an asset purchase agreement. There are substantial differences between those types of purchase/sale transactions. Obvi-ously, when buying a book of business, the transaction is more akin to the purchase agreement.

(a) Stock Purchases – This type of transaction involves the purchase of the shares of stock of the selling stock corporation – in other words, a purchase of all of the business of the sell-ing entity. There is no need to list the particular assets that are being purchased in this type of transaction, since by defini-tion a stock purchase includes all assets owned in the name of the selling entity. One or more new stockholders are replac-ing the previous stockholders in the selling entity or a new entity can be created to purchase the stock.

However, along with the purchase of all of the assets of the selling entity in a stock transaction, the purchasing entity also assumes all of the liabilities of the selling entity. This includes any tax liability and any potential E & O Liability incurred by the entity being sold while still owned by the sellers, and any such liability will become the new owner’s responsibility. Ac-cordingly, the existing or contingent liabilities of the selling entity must be fully disclosed and carefully scrutinized by the purchaser in any such transaction. Appropriate indemnifica-tion provisions are important to protect the purchasers from future claims of liability which the sellers may have honestly overlooked or may have been unaware of at the time the agreement to sell was executed.

The E&O Corner

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 4

coverage for any potential E&O claims that arose before the sale. The buyer must make sure that its E&O carrier is aware of the purchase and the acquired agency/brokerage must be added to their E&O policy.

Selecting the Right Counsel Choosing the appropriate counsel can save substantial time and money in the purchase and sale of an insurance agency/brokerage or a book of business. Getting the lawyer involved earlier rather than later is always prudent, and avoids the situation where the client believes that all necessary items have been agreed to, and that the only thing remaining is to “formalize” the agreement in writing – only to discover that counsel on both sides have raised additional questions and concerns for the protection of their respective clients. The clients then may be frustrated when they realize that the agreement they thought was all but completed still needs to be finalized. The involvement of an attorney at an early date will help avoid any misconception as to the realistic closing date for the transaction, and will actually save time and money by dealing with all issues up front.

The transactional team at KWC regularly handles matters in-volving the purchases and sales of large and small insurance agencies/brokerages and books of business. KWC also regu-larly litigates issues that arise in connection with these types of buy/sell agreements. Accordingly, KWC is cognizant of many of the potential pitfalls that may exist for the client in the drafting of the buy/sell documents.

An insurance agency or brokerage that is contemplating a pur-chase of another agency or brokerage or a book of business should make certain that, whether it is KWC, or another law firm, the attorneys who handle the purchase or sale fully un-derstand all of the issues that need to be addressed in order to fully protect the agency/brokerage in connection with the transaction. Doing so will help ensure that the transaction goes smoothly and the agency/brokerage can spend time fo-cusing on its business.

Keidel, Weldon & Cunningham, LLP concentrates its practice in the defense of insurance agents and brokers errors and omissions litigation and insurance coverage litigation. Kindly direct comments to Christopher B. Weldon at the Wilton, Connecticut office of Keidel, Weldon & Cunningham, LLP at 190 Old Ridgefield Road, Wilton, CT 06897 or to James C. Kei-del at the New York office of Keidel, Weldon & Cunningham, LLP at 925 Westchester Avenue, Suite 400, White Plains, NY 10604.

Copyright 2012, Keidel, Weldon & Cunningham, LLP All rights reserved

question. Some issues to consider are the reactions of existing clients to the selling of the entity, and what may happen if a substantial portion of those clients transfer their business from the new owners. In addition, there may be issues with regard to the appointments of particular insurance carriers which should be addressed in connection with the sale.

Future Disputes Between the Parties No one enters into a buy/sell agreement anticipating that a dispute will develop in the future. However, disputes often arise no matter how carefully the buy/sell agreement has been drafted. It is for this reason that the agreement should contain provisions as to how and where any such future dis-putes will be handled, including whether to arbitrate those disputes or submit the disputes to the jurisdiction of a particu-lar court for adjudication.

Although arbitration and alternative dispute resolutions have gained popularity in recent years, that mechanism of dispute resolution may not be the panacea arbitration proponents tout it to be. Our experience has shown that arbitration can often be much more expensive than anticipated by the par-ties, and sometimes not substantially faster than litigation in court. In addition, the arbitration clause must be carefully drafted in order to provide for payment of administrative and other expenses, and for the precise powers of the arbitrators. The decision as to whether or not to include an arbitration provision in the agreement should be jointly made by the par-ties and their counsel. It has been our recent experience that arbitration has become much more costly than merely litigat-ing the matter in court. Thus, the decision to litigate in court or arbitrate must be weighed carefully. Another issue that the parties may want to consider is whether any dispute should be first submitted to mediation before any arbitration or litiga-tion is commenced. Surprisingly, many disputes are settled during the mediation process.

Ancillary Agreements No matter which type of purchase transaction is involved, there are often other agreements which the parties need to contemplate and possibly execute supplemental to the buy/sell transaction. Often the owner or owners of the selling entity will remain with the new owners as employ-ees or as independent consultants. The preferred approach is to have such arrangements set forth in a separate agree-ment which contains all of the terms of the arrangement; that separate employment agreement should be referred to and incorporated into the buy/sell agreement.

Potential E&O Claims in Connection with the Purchase or Sale With our specialty in handling E&O matters, we would also like mention here that both the buyer and seller may have potential E&O exposure that must be managed. Obviously, some of the exposure will be managed by the indemnification clause in the agreements as discussed above. However, the seller should always seriously consider the purchase of tail

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 5

Domestic Workers Unlawfully Employed at the Time of Injury are Entitled to Benefits

It might be of interest that the NCCI ranks the State of Connecticut as one of the leading states in the employment of domestics as a residual market class. On February 9, 1996 Victoria Dowling / unlawfully employed was issued a Finding and Award ordering her employment to pay tem-porary total disability payments, medical and testimonial expenses, and attorney’s fees for unduly delaying payment of Workers’ Compensation Benefits. The case is Dowling vs. Sol V. Slotnik & Diane Reverand, Case No. 3062 CRB -4-95-5 and Case No. 3277 CRB – 4 -96-2. Domestic workers are hired to perform work inside and outside of a private residence. They are employed directly by the resident owner, the estate of the owner, or family of the owner. Types of work included: cooks, housekeepers, laundry workers, maids, butlers, companions, nannies, private chauffeurs and gardeners. If commercial farming is involved, the ap-propriate farm classification applies. Code 0913 – Domestic Workers – Residences – Full Time Inside or Outside. Full Time means more than 26 hours per work-week. Au pairs or domestic workers compensated by room and board are considered Full Time. Code 0908 – Domestic Workers – Residences – Part Time Inside or Outside. Part Time applies to domestic workers who are employed 26 hours or less per workweek. Code 0913 is rated with a flat amount per each domestic employed over 26 hours or provided room and board. The present amount per employee is $1,084 ($1,209 Minimum Premium). Code 0908 is rated based on the aggregate hours for part-time domestics (a part-time domestic is less than or equal to 26 hours per work week). A flat charge is made for each unit of 26 hours. An additional unit is charged for any remainder less than 26 hours. The present 26 hour unit charge is $410 ($535 MP). An example would be 5 employees each at 10 hours per week would equal 2 unit charges (50/26 = 2 units). 5 employees each at 12 hours per week would be 3 unit charges (60/26 = 3 units). One part-time domestic any number less than 26 hours is 1 unit. Another example - 2 employees each working 10 hours per workweek, would equal 1 unit. The presence of one domestic working over 26 hours or being supplied room and board mandates WC according to Connecti-cut statute. One employee less than 26 hours or the sum of hours from various employees amounting to over 26 hours (no individual over 26 hrs.) does not mandate coverage – but it is advisable. If it is the intent to provide voluntary coverage, cov-erage for part-time domestic worker must be listed and purchased, as it will not be automatically picked up at audit. Health workers would be rated by appropriate classification with applicable payroll – 8835 – Nursing Home Health All Employees as an example. Code #8835 is assigned to both public and privately owned enterprises engaged in furnishing healthcare services in the homes of individual patients. The employees rendering such services can be registered nurses, licensed practical nurses, certi-fied nurses’ aides, social workers, therapists, and home health aides. Employees of this nature are principally engaged in adminis-tering medications, intravenous therapy and injections, wound care, checking vital signs of patients, giving physical therapy treat-ments, educating, and counseling, etc. This coverage is based upon the payroll of the workers. If insureds have out-of-state exposures the limited 3A endorsement of the Connecticut residual market may not respond. It is rec-ommended they explore coverage in that state should a claim be presented in that state.

Technical INDEPENDENT INSURANCE AGENTS

OF CONNECTICUT Edward Meaney, CPCU

Director of Education

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 6

Workers’ Compensation – 3.A Issues – Massachusetts Connecticut based employers need to make sure they are meeting the Massachusetts Workers’ Compensation requirements if they are working in that state. Recently, the state posted this advisory statement:

Out-of-State Workers' Compensation Coverage

Out-of-State employers are required to cover all their employees, who are working in Massachusetts, with workers' compen-sation benefits under Massachusetts law. You do not need to buy a policy strictly for Massachusetts if in your existing work-ers' comp policy Massachusetts coverage is listed in Section 3.A of the policy's Information Page. If Massachusetts is specifically listed in Section 3.C of the Information Page, the policy is acceptable only if the Insurer (Insurance Carrier) verifies the coverage in Massachusetts. The Insurer must forward a statement verifying workers' compen-sation coverage in Massachusetts to the Office of Investigations. If the Insurer fails to meet this requirement, a Stop Work Order is immediately issued. Furthermore, any notation in Section 3.C of the policy's information page that "all states are covered" or "all states are cov-ered except those listed in Item 3.A and the States of: ND OH WA WY" or something similar is acceptable only upon verifica-tion of workers' compensation coverage in Massachusetts by the insurer. The insurer must forward a statement verifying workers' compensation coverage in Massachusetts to the Office of Investigations. If the insurer fails to meet this require-ment, a Stop Work Order shall be issued immediately. 2012 Commonwealth of Massachusetts. Mass.Gov® is a registered service mark of the Commonwealth of Massachusetts. http://www.mass.gov/lwd/workers-compensation/investigations/ We suggest that you review this information with your contractor customers or any employer that may be performing work in Massachusetts. The Massachusetts Department of Industrial Accidents will issue a stop work order and fine contractors and other Out-of-State workers up to $250 per day for non-compliance.

Technical INDEPENDENT INSURANCE AGENTS

OF CONNECTICUT Edward Meaney, CPCU

Director of Education

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 7

MONTH IN REVIEW

IIAC Agent Alerts

Agent Alert Released on July 2, 2012 Big “I” Applauds Passage of Flood Insurance Reform and Modernization Bill

deductibles for flood claims, requiring the NFIP administrator to develop a plan for repaying the debt incurred from Hurri-cane Katrina, and establishing a technical mapping advisory council to deal with map modernization issues. The legislation would also require the Government Accountability Office (GAO) to conduct a study on the prospect of adding business interruption and additional living expenses coverages to the NFIP and would require the Federal Insurance Office (FIO) to study and submit a report to Congress on natural disaster in-surance issues and possible legislative solutions.

“Both the House and Senate should be commended,” said Charles Symington, Big “I” senior vice president of govern-ment affairs. “This legislation has been a top priority of the Big ‘I’ for almost seven years, and we are very proud today that Congress has finally passed this balanced, bipartisan bill that will provide long-term protection for both consumers and taxpayers. In particular, the Big ‘I’ would like to thank Chair-men Spencer Bachus (R-Ala.) and Tim Johnson (D-S.D.), Rank-ing Members Barney Frank (D-Mass.) and Richard Shelby (R-Ala.), Reps. Judy Biggert (R-Ill.) and Maxine Waters (D-Calif.), and Sens. David Vitter (R-La.) and Jon Tester (D-Mont.) for their leadership and hard work in this endeavor.”

The Independent Insurance Agents & Brokers of America re-cently praised Congress for passing the “Biggert-Waters Flood Insurance Reform and Modernization Act of 2012.” The legis-lation would extend the National Flood Insurance Program (NFIP) for five years and make needed reforms to the pro-gram. The bill was passed as part of a Conference Report package along with the Surface Transportation Act of 2012 and an extension of the Federal Direct Stafford Student Loan program.

“The Big ‘I’ commends the House and Senate for their action on flood insurance,” says Robert Rusbuldt, Big “I” president & CEO. “A five year extension is of the utmost importance, as are the needed reforms to the program. The Big ‘I’ strongly supports the legislation passed today and looks forward to the implementation of the many provisions that will help put the program on more solid financial footing.”

The legislation passed on June 29, 2012 would extend the NFIP for five years, until Sept. 30, 2017, and would make important reforms to modernize the NFIP. These include phasing out subsidies for many properties, raising the cap on annual pre-mium increases from 10% to 20%, allowing multifamily prop-erties to purchase NFIP policies, imposing minimum

Agent Alert Released on July 9, 2012 Big “I” Applauds President for Signing Flood Insurance Reform Bill Into Law

annual premium increases from 10% to 20%, allowing multi-family properties to purchase NFIP policies, imposing mini-mum deductibles for flood claims, requiring the NFIP adminis-trator to develop a plan for repaying the debt incurred from Hurricane Katrina, and establishing a technical mapping advi-sory council to deal with map modernization issues. The new law will also require the Government Accountability Office (GAO) to conduct a study on the prospect of adding business interruption and additional living expenses coverages to the NFIP and would require the Federal Insurance Office (FIO) to study and submit a report to Congress on natural disaster in-surance issues and possible legislative solutions.

“This legislation has been a top priority of the Big ‘I’ for the last several years, and we are very proud today that this bal-anced, bipartisan bill that will protect both consumers and taxpayers has finally been signed into law,” said Charles Sym-ington, Big “I” senior vice president of government affairs. “In particular, the Big ‘I’ would like to thank Chairmen Spencer Bachus (R-Ala.) and Tim Johnson (D-S.D.), Ranking Members Barney Frank (D-Mass.) and Richard Shelby (R-Ala.), Reps. Judy Biggert (R-Ill.) and Maxine Waters (D-Calif.), and Sens. Jon Tester (D-Mont.) and David Vitter (R-La.) for their leadership and hard work in this endeavor.”

The Independent Insurance Agents & Brokers of America praised President Barack Obama for signing the “Biggert-Waters Flood Insurance Reform and Modernization Act of 2012” into law. The new law extends the National Flood In-surance Program (NFIP) for five years and makes needed re-forms to the program.

The Senate and House passed the legislation on June 29th as part of a Conference Report package along with the Surface Transportation Act of 2012 and an extension of the Federal Direct Stafford Student Loan program.

“The Big ‘I’ commends President Obama and Congress for working together, and in a bipartisan fashion, to protect mil-lions of homeowners and businesses across the country who are threatened by flooding,” said Robert Rusbuldt, Big “I” president & CEO. “The Big ‘I’ looks forward to the implemen-tation of the many provisions that will help put the program on more solid financial footing.”

The legislation that was signed into law on July 6, 2012 will extend the NFIP for five years, until Sept. 30, 2017, and make important reforms to modernize the NFIP. These include phasing out subsidies for many properties, raising the cap on

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 8

MONTH IN REVIEW

Insurance Department Bulletins & News Releases

On July 6, 2012, the Connecticut Insurance Department Released Bulletin HC-70-12 “Notice Pursuant to Connecticut General Statute 38a-477a of New or Modified Benefits Required to be Provided.” For information on this bulletin, please visit the CID website.

Insurance Department: “Be Prepared” Web Page A Resource for Tropical Storm Season

Reminder: On June 6, 2012 the Insurance Department issued a News Release regarding their web page “Be Prepared,” A Resource for Tropical Storm Season.

Notice Pursuant to Connecticut General Statute 38a-477a of New or Modified Benefits Required to be Provided

Reminder: On June 16, 2012, the Connecticut Insurance Department Released Bulletin SL-3 “New Procedures for Filing Sur-plus Lines Taxes and Surplus Lines Affidavits.” For information on this bulletin, please visit the CID website.

New Procedures for Filing Surplus Lines Taxes and Surplus Lines Affidavits

More Coastal Homes Need Flood Insurance

On July 14, 2012 the Norwalk Citizen ran an article written by John Bergerson regarding the new flood zone maps and their affect on Connecticut’s shoreline homes. To read the article in the newspaper’s archives, please click here.

IIAC Agent Alerts

Agent Alert Released on July 12, 2012 Information on the Flood Insurance Reform Bill

President Obama signed into law the Biggert-Waters Flood Insurance Reform & Modernization Act of 2012. Below are links to three documents that provide greater details on this very important legislation:

1. A legislative memo outlining the Big I’s involvement in enacting this law,

2. A summary of the legislation prepared by Big I staff that highlights the key provisions for independent insurance agents and their customers, and

3. A detailed section-by-section of the legislation prepared by Congressional staff.

FloodSmart.gov is the official site of the National Flood Insurance Program (NFIP)

FloodSmart.gov is designed to be both consumer and agent friendly. The web-site contains information on how to prepare for a flood and information about flood insurance coverage.

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 9

A simple, but powerful reward. Thousands of leading merchants, everyone from Best Buy and Travelocity to Target and countless others, pay cash back of 1 - 40% on purchases of over 300 million products. You’ll be amazed by how quickly it all adds up! Shop. The rewards are waiting. Get cash back from 5,000 of your favorite on-line stores

and travel sites - tax free Find extra ways to save with coupons, discounts, and

other specials Pay the lowest price on the items you want Save time and gas, and avoid crowds by purchasing your

everyday needs and have them shipped right to your door.

New IIAC Member Benefit . . .

WE HOPE YOU ENJOY OUR NEW PROGRAM!

We appreciate your membership. As a way of saying 'Thank You', we’re excited to announce our new loyalty pro-gram, just for you and your employees, our valued members! Introducing a no-cost online shopping portal that pays YOU! Earn hundreds of dollars on purchases you’re already making.

Same stores you're shopping at today, just starting today you get more for your money — cash back. Download to your home / personal computer and use the shopping toolbar for your browser to make it even easier. Too good to be true? Not really. Just the benefit you deserve. Get started. A "tutorial" video is available to help you get started. (http://retailbenefits.com/video?audience=shopper). So, as a 'thank you' for your business, we are excited to offer you this new money saving program. Click SIGN UP, start shopping and start earning your cash back.

“This is a great benefit for you to use for your business and office supply needs, as well as at home for your personal shopping.” Tom Wilson, IIAC Chairman

Sun Mon Tue Wed Thu Fri Sat

1 2 3 4

5 6 7 8 ACSR #4

Errors & Omissions

Loss Control 8:30 - 4:30

9 10 11

12 13 14 15 16 Laws,

Regulations & Ethics Seminar

8:30 - 12:10

17 18

19 20 21 22 ACSR #5

Professional Development & Account Mgmt.

8:30 - 4:30

23 24 25

26 27 28 29 30 31

August 2012

A COMPLETE ANNUAL CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE

CONNECTICUT CONTINUING EDUCATION REQUIREMENTS

All resident agents are subject to continuing education for every line of authority.

The Connecticut Insurance Department has an extensive website (www.ct.gov/cid) offering information on licensing, forms, statutes, regu-lations (proposed and finalized) Please take advantage of this web site for valuable information.

Individual transcript information can be obtained by accessing www.sircon.com. Once on the website, select “For Individual Agents” from the “Products and Services” menu. Under “Quick Start for Agents” (at the top of the page) select “Look Up Education Courses / Credits.” This will bring you to an “Inquiries” page. Select “Continuing Education Transcript Inquiry.” Select “Connecticut” from the drop-down menu. Enter your license number and last name and click “submit.” You will now be able to view and print your transcript. Please note that transcripts are only accessible using producer license numbers. Social Security numbers are no longer usable.

Flood Insurance Course Requirement Newly licensed agents are required to complete a flood program course during their first compliance period.

A COMPLETE CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE

Sun Mon Tue Wed Thu Fri Sat

1

2 3 4 5 AAI 81A

Principles Of Insurance 8:30 - 4:30

6 7 8

9 10 11 ACSR #6

Commercial Property Cov.

8:30 - 4:30

12 13 AAI 82B

Commercial Lines 8:30 - 4:30

14 15

16 17 18 19 Flood

Insurance 8:30 - 4:30

20 Annuity

Compliance 8:30 - 12:10

Long Term Care 1:15—4:10

21 22

23 24 25 26 27 28 29

30

September 2012

A COMPLETE ANNUAL CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE

CONNECTICUT CONTINUING EDUCATION REQUIREMENTS

All resident agents are subject to continuing education for every line of authority.

The Connecticut Insurance Department has an extensive website (www.ct.gov/cid) offering information on licensing, forms, statutes, regu-lations (proposed and finalized) Please take advantage of this web site for valuable information.

Individual transcript information can be obtained by accessing www.sircon.com. Once on the website, select “For Individual Agents” from the “Products and Services” menu. Under “Quick Start for Agents” (at the top of the page) select “Look Up Education Courses / Credits.” This will bring you to an “Inquiries” page. Select “Continuing Education Transcript Inquiry.” Select “Connecticut” from the drop-down menu. Enter your license number and last name and click “submit.” You will now be able to view and print your transcript. Please note that transcripts are only accessible using producer license numbers. Social Security numbers are no longer usable.

Flood Insurance Course Requirement Newly licensed agents are required to complete a flood program course during their first compliance period.

A COMPLETE CALENDAR CAN BE OBTAINED ON THE “EDUCATION” PAGE OF OUR WEBSITE

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 12

This year RLI has been working hard to provide you with

the tools you need to place coverage with them. They

have added Uninsured Motorist coverage, The PUP ACCESS

system to monitor your RLI business, the PUP Special rating

tier that allows placement of your more difficult to place

prospects and as always, they will write coverage over

households with no personal automobiles.

Another improvement is RLI’s new easy to use website,

www.rlipersonalumbrella.com. Please add it to your fa-

vorites list! This is something many of you asked for and

RLI has delivered a site that is simple and easy to get a

quote quickly.

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 13

2012 IIAC EVENTS

23rd Annual Golf Tournament

Sponsored by the IIAC Young Agents Committee August 2, 2012

Blackledge Golf Course, Hebron, CT

Mid-Year Convention November 8, 2012

Aqua Turf Club, Plantsville, CT

Spring Conference Sponsored by the IIAC Young Agents Committee

Was Held on May 2, 2012 Wethersfield Country Club, Wethersfield, CT

Annual Dinner Meeting and Installation of Officers

Was held on June 7, 2012 St. Clement’s Castle, Portland, CT

Additional information and registration forms for the above events can be obtained by clicking on the event name above, going to the “Events” page of our website or by contacting Tracy Hearn at 860-563-1950 or emailing to thearn@iiac.org.

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 14

Big “I” Professional Liability As a member, you have access to the Big “I” Professional Liability program, the most respected and comprehensive program in the business offering a variety of insurance agent’s E&O products that are hand-selected for their superior reputation and exceptional performance. www.iiact.org - Member Resources page / Or call Laura Szatkowski at 860-563-6510

Big “I” Markets Exclusively available to Big “I” members, IIABA’s online market access program features specialty/niche coverages, program business and hard-to-find markets. Unlike similar programs, there are no registration fees, no volume commitments and competitive commissions. www.bigimarkets.com

Big “I” Flood Big “I” Advantage operates as a managing general agency and agents participate as sub-producers for the Big “I” Flood Pro-gram. Selective Insurance Company is the provider for this NFIP Write-Your-Own program and they make writing flood insur-ance easy and profitable leaving the method of quoting up to the agent. www.independentagent.com/flood

Big “I” Retirement/Benefits Having trouble deciding which retirement plan is right for you or your agency? Big "I" Retirement Services is here to help you choose which plan best meets your circumstances. www.independentagent.com/retirement

RLI RLI's Personal Umbrella Policy stands atop your client’s existing homeowner and auto insurance to provide an extra layer of personal liability protection. RLI’s @Home Business policy, responds to the needs of over 100 eligible business classes on an ISO BOP form. www.iiact.org - Member Resources page / or call Rose Mullaly at 860-563-6510.

Business Resources Enjoy group discounts for a variety of services to assist in managing your agency. Caliper (employee testing) ; DHL (express delivery); Mines Press (printing); Hertz (car rental); Artizan Internet Services (Service 911, CSR 24). www.independentagent.com.

InsurBanc InsurBanc is an independent community bank founded by agents exclusively for agents. www.insurbanc.com

Virtual University Research Library - For those who seek a smarter way to research, the VU provides the access. Ask an Expert Service - Big "I" Members can submit questions to our "Ask an Expert" service and a response is usually sent within 3-5 business days, but often sooner. Online Courses - The VU offers a wide variety of online classes. www.independentagent.com/vu

Best Practices The Best Practices program provides member agents with meaningful performance benchmarks and business strategies that can be adapted to improve the performance of your agency, thus enhancing agency value.

Government Affairs The Big “I” is your advocate on the issues that matter to your success, whether the issues occur in state legislatures, Washing-ton D.C., your state insurance department, the NAIC, or the judicial system.

OF ALL YOUR MEMBERSHIP HAS TO OFFER??

ARE YOU TAKING

ADVANTAGE

??

Big “I” Advantage Programs

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 15

ACE Private Risk Services 860-828-7931

www.aceprivateriskservices.com

Agency Intermediaries, Inc. 203-453-2859

www.agencyint.com

American Integrity Restoration 860-657-2100

www.ctrestoration.com

Arthur J. Gallagher Risk Management Services, Inc. 860-560-2766 www.ajg.com

Astonish Results, LP 401-440-5955

www.astonishresults.com

Broadway Premium Financing 800-728-7255

www.broadwaypremium.com

Capitol Bail Bonds, LLC 860-899-1956

www.capitol-bail-bonds.com

Chroma Building Corporation 203-602-8838

www.chromabuilding.com

Connecticut Interlocal Risk Management Agency 203-498-3000

www.ccm-ct.org

Connecticut Underwriters, Inc. 860-347-9600

www.ctunderwriters.com

Crystal Restoration Services 203-853-4179

www.crystal1.com

Empire State Brokerage Services 203-798-0067

www.empirebrokerage.com

Fairfield County Bank 203-431-7527

www.fairfieldcountybank.com

W. Ford Agency, Inc. 203-549-0005

www.wfordagency.com

Heimgartner Insurance Services, Inc. 860-436-3991

www.heimgartnerinsurance.com

The Hingham Group 781-749-0841

www.hinghammutual.com

HSB Associates, Inc. 860-722-5539 www.hsb.com

For information on how to become an Associate Member of the Independent Insurance Agents of Connecticut and a complete list of benefits, please visit the “Join” page of our website or

contact Rose Mullaly at 860-563-1950 or email rmullaly@iiac.org

ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 16

Hybrid Insurance Agency 860-688-440

www.hybridins.com

Insurance Agency Accounting & Bookkeeping 860-614-7268

www.brendadicarlollc.com

Insurance Engineering Solutions 860-429-5156

www.insuranceengineeringsolutions.com

InsurBanc 866-467-2262

www.insurbanc.com

Iroquois of Connecticut, Inc. 860-621-8412

www.iroquoisct.com

Kapura Cleaning & Restoration 860-747-2100

www.kapurarestoration.com

Joseph Krar & Associates 860-628-3967

www.jkrar.com

J.P. Maguire Assoc., Inc. 800-233-8220

www.jpmaguire.com

McGrath Insurance Group, Inc. 508-347-6850

www.mcgrathinsurance.com

Maynard Insurance Group 203-318-0008

maynardinsgrp@yahoo.com

Oakbridge Insurance Services 860-906-0120

www.oakbridgeins.com

Plymouth Glass & Mirror 860-283-0276

www.plymouthglass.com

JN Phillips Auto Glass 781-939-3400

www.877autoglass.com

Premium Assignment Corp. 603-421-1953

www.premiumassignment.com

Pro-Klean Cleaning & Restoration Services, Inc. 866-463-2313

www.pro-klean.com

PuroClean Mitigation Services 860-516-8083

www.puroclean.com

Renaissance Group, Inc. 860-307-2957

www.renaissanceins.com

ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

For information on how to become an Associate Member of the Independent Insurance Agents of Connecticut and a complete list of benefits, please visit the “Join” page of our website or

contact Rose Mullaly at 860-563-1950 or email rmullaly@iiac.org

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 17

Servicemaster QRV Regional Group 203-386-1565

www.servicemastergb.com

ServiceMaster by Wills 860-447-3265

www.servicemasterbymason.com

SERVPRO Cleaning and Restoration of New Haven, Waterbury & Naugatuck Valley

1-800-243-8812 www.servproofnewhaven.com

SERVPRO of Manchester-Bolton 860-649-0836

www.servproofwesthartford.com

Steamatic of CT 203-985-8000

www.steamaticct.com

TAPCO 800-334-5579

www.gotapco.com

Target Insurance Services 860-284-0088

www.target-capital.com

Thompson Agency, Inc. 860-693-4999

www.thompsonagency.net

Travel Insured International, Inc. 860-528-7663

www.travelinsured.com

United Cleaning & Restoration, LLC 800-835-0740

www.unitedcr.com

XS Brokers Insurance Agency, Inc. 617-471-7171

www.xsbrokers.com

Acadia Insurance Company 860-331-2391

www.acadiainsurance.com

American Commerce Insurance Company A MAPFRE Company

603-888-8900 www.acilink.com

AmTrust North American, Inc. 860-257-7286

www.amtrustgroup.com

The Andover Companies 860-257-7286

www.andoverco.com

Central Mutual Insurance Company 877-281-4941

www.central-insurance.com

Chubb & Son Insurance 203-782-4115

www.chubb.com

Cincinnati Insurance Company 513-870-2000

www.cinfin.com

C N A Insurance 860-513-6460

www.cnacentral.com

Connecticut Fair Plan 860-528-9546

www.ctfairplan.com

FirstComp 888-500-3344

www.firstcomp.com

Guard Insurance Group 570-825-9900

www.guard.com

ASSOCIATE MEMBER INSURANCE COMPANIES

(Click on the website for a direct link)

ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

For information on how to become an Associate Member of the Independent Insurance Agents of Connecticut and a complete list of benefits, please visit the “Join” page of our website or

contact Rose Mullaly at 860-563-1950 or email rmullaly@iiac.org

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 18

Harleysville Worcester Insurance Company 800-225-7387

www.harleysvillegroup.com

The Hartford 860-409-6150

www.thehartford.com

Kemper, A Unitrin Business 203-775-5846

www.ekemper.com

The Main Street America Group 603-358-1352

www.msagroup.com

MEMIC 207-791-3370

www.memic.com

MetLife Auto & Home 860-668-2699

www.metlife.com

MiddleOak 860-638-5132

www.middleoak.com

New London County Mutual 860-887-3553

www.nlcinsurance.com

Ohio Mutual Insurance 419-563-0959

www.omig.com

Peerless Insurance 860-571-2201

www.peerless-ins.com

Plymouth Rock Assurance Corporation 860-681-2766

www.plymouthrock.com

PMA Insurance 203-379-3825

www.pmagroup.com

Progressive Insurance Company 800-274-4055

www.progressiveagent.com

QBE 860-570-0802

www.qbeamericas.com

Quincy Mutual Fire Insurance 671-770-5171

www.quincymutual.com

Safeco Insurance 603-358-4156

www.safeco.com

State Auto Insurance Companies 860-633-4678

www.stateauto.com

Travelers 860-277-6948

www.travelers.com

Utica National Insurance Group 800-695-1914

www.uticanational.com

ASSOCIATE MEMBER INSURANCE COMPANIES

(Click on the website for a direct link)

ASSOCIATE MEMBER INSURANCE COMPANIES

(Click on the website for a direct link)

For information on how to become an Associate Member of the Independent Insurance Agents of Connecticut and a complete list of benefits, please visit the “Join” page of our website or

contact Rose Mullaly at 860-563-1950 or email rmullaly@iiac.org

Independent Insurance Agents of Connecticut - www.iiact.org - August 2012 Page 19

WHO ARE THE INDEPENDENT INSURANCE AGENTS OF CONNECTICUT?

The Independent Insurance Agents of Connecticut was founded in 1899 as the Connecticut Association of Local Fire Insurance Agents. The organization’s name was changed in 1913 to the Connecticut Association of Insur-ance Agents. This name was considered more representative of the membership due to the expansion of the property-casualty business coverages and the increased presence of casualty and surety agents. In 1975 the organization became The Independent Insurance Agents of Connecticut to emphasize its members abilities to work with a variety of insurance companies and industry representatives. The Independent Insurance Agents of Connecticut has always been in the lead on important issues for agents. The list is long as IIAC has worked with regulators and the insurance industry on important issues such as agent licensing, anti-rebate laws, ownership of expirations, banking and insurance, and agent compensation to name a few. Today IIAC offers a wide variety of products and services to its members. The education calendar offers a full assortment of choices for licensing, continuing education and advanced degree programs. In addition, IIAC of-fers several insurance programs for our members that can be purchased to protect their agency business and insurance products that members can sell to their customers. IIAC also offers technical and regulatory assistant to our members. Technical advice is available at the staff level and through the Virtual University where you can “Ask The Expert.” In addition, IIAC meets regularly with the Insurance Commissioner and department staff to discuss current market conditions and consumers issues. IIAC is a strong advocate for independent agents at our state capital and in Washington D.C. Whatever the is-sue may be, IIAC is the voice for independent agents as we represent the interests of our membership. Our na-tional association, IIABA is a predominant lobbying force in Washington and is constantly ranked among the top 10 of all the lobbying groups in the United States. The Big “I” mission succinctly captures our purpose: “to pro-vide independent agents with a sustainable competitive advantage.” To accomplish that, IIAC is the unrelent-ing advocate on the issues that shape the environment in which our membership conducts business. IIAC is the voice in the halls of Congress, the state capital and in boardrooms across the nation.

INSURPAC

InsurPac is the Political Action Committee (PAC) of the Independent Insurance Agents & Brokers of America (IIABA). It represents the unified political voice of IIABA's 23,000 member agencies and 300,000 agents and brokers nationwide. It is the largest property-casualty insurance industry PAC in the country, and is one of the primary reasons the Big "I" is rou-tinely rated among the most successful lobbying groups in Washington, DC.

"Lobbying and a well-funded PAC go hand-in-hand," says Charles Symington, IIABA's Senior Vice President of Government Affairs. "InsurPac's voice resonates through the halls of Congress on behalf of the Big "I". Every elected official knows that a contribution from InsurPac is a contribution from 23,000 small business owners."

InsurPac raises funds by asking for voluntary personal contributions from independent agents and brokers throughout the country. By pooling money together, InsurPac helps elect candidates and re-elect members of the U.S. Congress who share IIABA's business philosophy.

This concept of pooling personal contributions together for the greater good is essential to understanding the importance of PACs. As an individual, you can make the average contribution of $200 to a Congressman, or you can invest that $200 in a PAC, which in turn combines that with 9 other donors and gives the same Congressman $2,000. At the end of the day, PACs are able to speak with a collective voice that is much louder than that of an individual. It is impossible to overvalue the power of a collective voice -- of a collective InsurPac speaking on behalf of the Independent Agency system.