The Connecticut Independent Agent

October 2011

The Connecticut Independent Agent

This Issue’s Features

IIAC Mid-Year Convention 03 The E&O Corner - What Valuable Lessons Can Be Learned After Hurricanes Irene & Lee? 04

Trusted Choice®

Marketing Reimbursement Program Disaster Resources Page 06 Big “I” Installs New Leadership 07 Month in Review 08 Personal Guarantee Insurance

How an Attorney-Turned-Franchisee Discovered

the Hidden Risks in Business Financing 09

Agency Perpetuation from the Lender’s Perspective “Only Well Positioned Agencies Need Apply” 11 Member Benefits - IIABA System Assigning Individual Employees a Username and Password 13 RLI Stand Alone Personal Umbrella 14 Swiss Re 14

In Every Issue

October and November Continuing Education Courses 15

Events 17

Big “I” Advantage Programs 18

2010 - 2011 Officers 20

Committees 20

About Us 25

Associate Member Index

Associate Members - Insurance Brokers & Services 21

Associate Members - Insurance Companies 23

“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 - October 2011 Page 3

The IIAC Mid-Year Convention is scheduled to be held on November 10, 2011 at the Aqua Turf Club in Plantsville. This con-vention draws 450+ attendees from all avenues of the insurance industry. Every year the business session at the convention provides attendees with 3 continuing education credits for Laws, Regulations and Ethics. The convention exhibit hall is filled with a variety of vendors who offer valuable insurance services and products to better agencies’ success in today’s market. Each year’s program is different from the previous year and has a new course code. Agents who attended last year’s con-vention will receive CE credit for attending again.

Exhibit Hall Open: 8:00 AM - 9:15 AM and 12:00 PM—1:00 PM Morning Business Session: 9:15 AM - 12:00 PM - 3 CE Credits (LRE) Course #TBD

Lunch: 1:00 PM—2:00 PM

IIAC Mid-Year Convention November 10, 2011

For complete convention details and individual registration forms, please visit the “Events” page of our website. All registrations should be sent to: IIAC, Tracy Hearn, 30 Jordan Lane, Wethersfield, CT 06109

ATTENDEE REGISTRATION FEE MEMBERS/ASSOCIATE MEMBERS $ 95.00

EACH ADDITIONAL PERSON FROM MEMBER AGENCY OR ASSOCIATE MEMBER COMPANY $ 80.00

NON-MEMBERS $155.00

NAME OF INDIVIDUAL FOR BADGE: __________________________________________ CT Producer Lic. # _________________

AGENCY / COMPANY: _________________________________________________________________________________________

ADDRESS: ____________________________________________________________________________________________________ (include City, State & Zip Code) TELEPHONE: _____________________________________ E-MAIL: __________________________________________________

EXHIBIT BOOTH REGISTRATION FEES (Fee Included one person per booth) AMOUNT ENCLOSED

MEMBER & ASSOCIATE MEMBER $325 _________________________

NON-MEMBER $450 _________________________

EACH ADD’L PERSON PER EXHIBIT (limit 2 add’l / fee includes lunch) $ 50 _________________________

ELECTRICAL OUTLET $ 70 _________________________

WIRELESS INTERNET ACCESS $ 35 _________________________

LIST INDIVIDUAL NAMES AS THEY ARE TO APPEAR ON BADGES:

______________________________________________________________________________________________________________________________________________________________________________

Sponsorship Opportunities Platinum Sponsorship $1000 – includes 2 complimentary full day registrations to the convention, website link, and a full page advertise-ment (3 ½”w x 7 ½h”) in the convention Program Book. Full page advertisement can include one image file. *

Gold Sponsorship $500 – includes 1 complimentary full day registrations to the convention, website link, and a half page advertisement (3 ½”w x 3 ¾ ”h) in the convention Program Book. Half page advertisement can include one image file. *

Silver Sponsorship $250 – includes website link and a quarter page advertisement (3 ½”w x 1 ½”h) in the convention Program Book. Quarter page advertisement to consist of text only. *

Sponsorship Enclosed: $__________ Complimentary Registrations - Gold or Platinum Sponsors only

Complimentary attendee: _____________________________________________________________________________ (Name and complete address. If CE credits are needed, include Connecticut Producer License Number)

Complimentary attendee: _____________________________________________________________________________ (Name and complete address. If CE credits are needed, include Connecticut Producer License Number)

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 4

WHAT VALUABLLE LESSONS CAN BE LEARNED FOLLOWING HURRICANES IRENE & LEE?

The aftermath of Hurricane Irene and Hurricane Lee caused a great deal of damage in Connecticut. Even before these storms made landfall in Connecticut as tropical storms, we received numerous telephone calls from insurance agents and brokers concerning issues arising out of these powerful storms. Like most Connecticut businesses, Keidel, Weldon & Cunningham, LLP was without power in our Connecticut Office for a period of time. In this issue of The E&O Corner, we are going to discuss some of the valuable lessons we learned from these catastrophic events. 1. Know Your Authority

As the impending storms were barreling down on Connecti-cut, we received a call from an agent who was in the proc-ess of making changes to a policy from one named insured to another because there was a sale of the property from an old insured to a new insured. After receiving the call and confirming the change was made, the agent received a notice from the insurance company which wrote the cover-age. The notice advised the agent that its binding authority was suspended due to the impending storm and the sus-pension would remain in place from the time when a “storm watch” or “storm warning” was posted by the Na-tional Weather Service until twenty-four (24) hours after the National Weather Service lifted the “storm watch” or “storm warning.” They were also advised that the suspen-sion of authority applied to any personal or commercial property that may be subject to loss or damage because of hurricane, tornado, windstorm, flood or surface water. As a result of the suspension, most Connecticut agents lost their binding authority with their respective insurance carri-ers the Friday before Hurricane Irene was scheduled to make landfall in Connecticut and did not get it back until the following Monday. The agent had verbally bound the coverage change with the insureds on the Thursday before the warnings were posted but did not notify the carrier of the change until after the warning was posted. The agent inquired of us as to whether the insurer would accept the change since it received the request after the storm watch. We were able to work through the agent and persuade the insurer to accept the change as the agent bound the cover-

age under his authority be-fore the storm watch was posted. The lesson here is simple. As an insurance agent, you should always know your binding authority and how it may be limited in certain situations like impending storms. About ten per-cent of the claims we handle for insurance agents in any one year arise out of an agent acting outside his/her bind-ing authority and the insurance company suing the agent to recover on a loss it would not have been involved with ex-cept for the agent acting outside of his/her binding author-ity.

2. Confirm in Writing that Flood Coverage was Rejected at the Time of Application

By the time Hurricane Irene made landfall in Connecticut, it was downgraded to a tropical storm. At the height of Tropical Storm Irene in Connecticut, we were contacted by an agent seeking our advice on a call he received from an irate insured who had a home on the shore. The agent’s customer was calling to complain that the agent had not offered flood coverage. The agent advised that he had of-fered flood insurance to the insured’s spouse but it was declined. In response, the insured advised he could not believe that his spouse would have rejected such coverage. Following his conversation with the insured, the agent im-mediately called us and asked what could be done. Obvi-ously, at that point, all that could be done should have been done. Specifically, with all the flooding that has oc-curred throughout the United States in the last couple of years, agents should confirm at the time an application is signed that flood coverage is rejected. One form that does this well is Acord’s “Flood Insurance Selection/Rejection” Form (Acord 60 (2010/04)). This form reviews the types of flood coverage under the National Flood Insurance Pro-gram, requires the signature of the insureds, and advises the insured that his/her/their “selection/rejection will ap-ply to all future renewals, continuation and changes unless *the insured+ notif*ies+ you otherwise in writing.” This form, or a similarly worded form, provides the needed pro-tection in the event that the insured claims that the agent failed to offer flood coverage. Even with this added protec-tion; however, we recommend that an agent re-offer flood coverage upon every renewal, even if such coverage has previously been declined.

The E&O Corner

The E&O Corner is authored by James C. Keidel, Esq., Christopher B. Weldon, Esq., Lori A. Eaton, Esq., and Darren Renner, Esq. of Keidel, Weldon & Cunningham, LLP.

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 5

3. Does Your Client Understand the Difference Between the Wind Deductible and Hurricane Deductible and the Significance of Each?

After Tropical Storm Irene passed, besides the question most asked by insureds in Connecticut was whether their hurricane deductible would or would not apply. Based on the news stories and the hard work by many in the insur-ance industry, a number of insurers agreed not to apply a hurricane deductible based on the fact that Irene was downgraded to a tropical storm before making landfall in Connecticut. However, even though the hurricane deducti-ble was not applied, some of your insureds may have had a Wind or Named Storm deductible apply. To fully appreci-ate your understanding of this topic, you must understand the difference between these various deductibles. A hurri-cane deductible applies to a hurricane and usually is appli-cable from the point when the National Weather Service posts a hurricane warning for any part of a state where you maintain property that may be damaged by such an event and usually expires 24 hours after the National Weather Service pulls the posting of the hurricane warning. Unlike the hurricane deductible, the wind deductible normally ap-plies to all losses resulting from wind or hail. The last com-monly used deductible is the Named Storm deductible which applies to any loss of property caused by a Named Storm posted by the National Weather Service and usually terminates 24 to 48 hours following the termination of the last named storm warning posted by the National Weather Service. The lesson here is that all agents selling policies with special deductibles, similar to the ones described above, must understand how those deductibles are trig-gered and should explain these deductibles to their cus-tomers so that your customers can make educated deci-sions in the purchase of insurance. Again, as noted above with flood insurance, the acceptance or rejection of any coverage subject to a special deductible should be con-firmed in writing by the insured. 4. Various other Claimed Coverage Deficiencies Raised by Hurricane/Tropical Storm Irene

In addition to the selection and explanation of the special deductibles, there were several other claimed coverage deficiencies that came to light following the storms. While under Connecticut law an insurance producer has a duty to obtain coverage requested or advise of the inability to do so, it is a good practice for an agent to offer all obtainable options for the insured’s consideration. We had several calls from agents indicating that their customers were threatening litigation because a separate structure dam-aged by a fallen tree was not covered under their home-owners or commercial property policies. We also received several calls regarding potential claims against agents

where their customers were forced to close their busi-nesses for an extended period of time and there was no business interruption coverage in their commercial policies. Some of those businesses were restaurants or small gro-cery stores that suffered food spoilage, and these custom-ers questioned their agents on whether they had coverage for that type of loss. Regardless of the claimed coverage deficiencies, they are easily combated from an errors and omission perspective if the agent properly documents his/her discussions with the insured about coverages for a particular risk. As you may recall from our seminars and previous E&O Corner articles, these conversations are easily documented through an in-surance proposal where you list these optional coverages; in a signed commercial or homeowners application where some of the various coverages are offered by virtue of the questions on the application; or, in an insurance summary which is reviewed with the insured once the policy is deliv-ered by the agent. The lesson that can be learned here is two-fold. First, the agent should have a checklist of optional coverages the agent has available and it should be reviewed with each insured when placing coverage for the insured. Second, an agent should document, whether through an acknowledge-ment form, a letter, an email or a proposal, the insured’s rejection of the optional coverages and the willingness on the part of the agent to attempt to assist in procuring the rejected coverage if the insured later opts to procure such optional coverage. The claims that resulted from both Irene and Lee clearly have served to identify both the types of insurance cover-ages that should be considered and various insurance cov-erage issues that the prudent insurance agent or broker should consider when assisting an insured in the procure-ment of their insurance. Doing so will not only help to bet-ter protect a customer from a potential loss but will also go a long way in helping to protect the agent or broker from a potential E&O claim or lawsuit.

Keidel, Weldon & Cunningham, LLP concentrates its prac-tice in the defense of 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 & Cunning-ham, LLP at 190 Old Ridgefield Road, Wilton, CT 06897 or to James C. Keidel at the New York office of Keidel, Weldon & Cunningham, LLP at 925 Westchester Avenue, Suite 400, White Plains, NY 10604.

Copyright 2011, Keidel, Weldon & Cunningham, LLP All rights reserved

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 6

Apply for the Trusted Choice®

Marketing Reimbursement Program and Get Up to $500 TRUSTED CHOICE MRP DOLLARS AT WORK Need a New Web Site or Office Sign? "We offer you a choice of insurance products and customized policies to meet your needs." This phone message at Big Bear Insurance in Tallahassee, Fla. defines what it means to work with a Trusted Choice® independent insurance agency. Earl Os-sorio, the owner of Big Bear Insurance, recently received $500 in Trusted Choice® marketing reimbursement dollars. After 20 years in the financial services industry, Ossorio decided it was time to take the plunge and start his own agency. Within a year, Big Bear Insurance, with a staff of three, was ready to compete with larger agencies. Being part of a nationwide brand with TV commercials, print ads and a membership of more than 10,000 agencies was just what they needed to put their agency front and center in the minds of consumers. "It all clicks. I use the logo on everything I do, business cards, brochures, everything. I know many agencies in Florida are part of Trusted Choice® and bigger agencies in town use the logo, too." Os-sorio says. "I needed a new sign and a Web site so applying for the marketing dollars just made sense. Trusted Choice Mar-keting Reimbursement Program (MRP) dollars bought Big Bear Insurance a Web site, www.bigbearins.com, and a brand new sign with the Trusted Choice® logo. At least 1,500 agencies will benefit from the MRP and applicants can apply for a maxi-mum of $500 on a first come, first serve basis. If you have signed your Connecticut Annual Dues renewal form and are now a Trusted Choice® agency and haven't applied for your Trusted Choice® dollars, now is the time. For more information, email Trusted.Choice@iiaba.net. APPLYING FOR MRP DOLLARS IS EASY AS 1, 2, 3, 4. 1. Take stock of your inventory. Is it time to re-order anything? Marketing dollars can be used towards stationery, business cards, brochures, shirts, folders, a sign, pledge certificates, decals, insurance card holders, newsletters and give-a-ways. 2. Evaluate your Web site or develop a new one. Do you have a Web site? Does your current Web site lack the Trusted Choice® logo or need a little upgrade? You can use Trusted Choice® dollars to give your Web presence a fresh new look and add the Trusted Choice® logo/pledge. 3. Find a vendor. If you don't have a vendor you already work with, don't fret. Trusted Choice® has a list of preferred ven-dors who offer anything from a consumer brochure about Trusted Choice® to Web services — all customizable with your brand and the powerful Trusted Choice® logo. 4. Fill in the blanks. Download the Marketing Reimbursement application and send the completed application along with a professional proof of your items to Trusted Choice® at 127 S. Peyton St. Alexandria, VA 22314, attention MRP or just email the information to Trusted.Choice@iiaba.net. The MRP was created with the goal of helping agencies in co-branding with the Trusted Choice® brand. However; the MRP does not reimburse for any type of direct advertisement (radio, TV, print ads, yellow pages and billboard ads). MRP Guidelines

Suggested Vendors

Download Application

Trusted Choice® MRP Home Page

TRUSTED CHOICE® Smart Marketing (Still) Pays You Back

The 2011 Trusted Choice®

Marketing Reimbursement Program

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 7

Minnesota's Donohoe as New Chairman Oklahoma's Bramlett as Chairman Elect New Hampshire’s Minkler as Vice Chair

Connecticut's Houldin Joins Executive Committee

Michael Donohoe has been inaugurated as the new chair-man of the Independent Insurance Agents & Brokers of America, with Bobby Bramlett as chairman elect, Tom Min-kler as vice chairman and Spencer Houldin as the new execu-tive committee member. The new officers began their terms at the conclusion of the board meeting held in conjunction with the Big “I” Leadership Conference this weekend in Min-neapolis, Minn.

“The Big ‘I’ is proud to announce that such highly respected and top professionals in our industry will be heading the Big ‘I’ executive committee,” says Robert Rusbuldt, Big “I” presi-dent & CEO. “Mike Donohoe, Bobby Bramlett, Tom Minkler and Spencer Houldin, along with the rest of the executive committee, are a remarkable team that is expected to lead to a productive year.”

Mike Donohoe is owner and agent of the James R. Weir In-surance Agency in Mankato, Minn. He was elected to the Big “I” Executive Committee in September 2006. Donohoe has contributed to the independent agency system in a vari-ety of ways, including serving the Minnesota Independent Insurance Agents & Brokers as its president and as its repre-sentative on the Big “I” national board of directors. He was named Minnesota “Young Agent of the Year” in 1979 and 1981. Donohoe, who has been instrumental to the success of the Big “I” Virtual University, served as the chair of the VU Oversight Task Force from 2001 to 2006. In 2005, he re-ceived the Woodworth Memorial, the highest honor the Big “I” awards to an agent. Donohoe grew up in Lake Forest, Ill., and is a graduate of St. Mary’s College, in Winona, Minn. He has been married to his wife Mary for more than 30 years and they have four children: Katie, Gina, Meghan and Pat-rick.

Bobby Bramlett is president & CEO of the Bramlett Agency in Ardmore, Okla. He began his insurance career with The Bramlett Agency in 1975 and has served as its president and CEO since 1983. He purchased the agency from his parents, Jim and Janie Bramlett. The agency celebrated its 60th anni-versary in 2008. He is past president of Independent Insur-ance Agents of Oklahoma (IIAO) and is currently is serving as Vice Chairman of IIABA. In 2008, Bramlett received the IIABA Government Affairs’ highest award, “The Sydney O. Smith National Legislative Award.” He was also given IIAO’s highest award, “The Eagle of Excellence Award,” in 2009.

In his community, he serves as a Director of First National Bank and Trust Company, Trustee of The Glen Foundation, and as a Trustee of St. John’s Northwestern Military Acad-emy. Bramlett is a graduate of St. John’s Military Academy in Delafield, Wis., and earned his Bachelor of Business Admini-stration degree from the University of Oklahoma. Bobby and his wife Nanette are proud parents of son, Jake, who is now a producer in the agency, daughter-in-law, Jennifer and grandson Bryce.

Thomas “Tom” Minkler is president of the Clark-Mortenson Agency in Keene, N.H. Minkler is a past chairman of the In-dependent Insurance Agents and Brokers of New Hampshire, past New Hampshire director on the Big “I” National Board and past president of the Massachusetts Association of In-surance Agents. At the national association level, Minkler is past chairman of the Big “I” Government Affairs Committee and has served on various other Big “I” committees including the Professional Liability Committee, the Agents Advocacy Fund, the Agency Administrative Services Committee, the Additional Markets Subcommittee and the Captive Study Committee. He is a frequent speaker for the insurance in-dustry and has provided testimony before the U.S Congress on behalf of the Big “I” on a variety of topics. Earlier this year, he testified before Congress on behalf of the Big “I” in a hearing of the House Committee on Financial Services Sub-committee on Capital Markets, Government Sponsored En-terprises, and Insurance, to discuss insurance regulatory re-form. Minkler is active in his community and serves on nu-merous charitable organizations and civic boards. He resides in Keene, N.H. with his wife, Heather and step-son Mike, and has three grown children.

Spencer M. Houldin is president of Ericson Insurance Ser-vices, LLC, a second generation, insurance agency with of-fices in Litchfield County, CT and New York City. From 2008 - 2011, Houldin served as chairman of the Big “I” Government Affairs Committee and testified before numerous Congres-sional committees on behalf of the association. He has also represented the state of Connecticut on the IIABA Board from 2006 - 2011. In 2004, Houldin served as Independent Insurance Agents of Connecticut president. He has held seats on agent advisory councils for many insurance compa-nies. He is also active in his local community serving on the executive committees of The Western Connecticut Health Care Network, which is a multi-hospital organization. Houldin is also past president of the local rotary. Houldin earned a Bachelor of Arts degree at Lafayette College. He resides in Roxbury, CT with his wife, Carol, and two children.

The 2011-2011 Big “I” chairman, J. Michael Miley, who will serve on the committee as immediate past chair for one year, is an account executive with Gibson Insurance Group in Plymouth, Ind.

Big “I” Installs New Leadership Team

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 8

MONTH IN REVIEW

Insurance Commissioner Requests ALL Carriers to NOT Invoke Hurricane Deductibles

George Bradner, Director of the Property and Casualty Division of the Connecticut Insurance Department issued the follow-ing email this morning: “Please be advised that the Commissioner, at the request of the Governor's office is asking ALL carriers to NOT invoke their hurricane deductibles as this event was NOT a hurricane. Please confirm your company's compliance with this request by the end of the day today. I am also including a link to the Joint press release which was issued by the Governor and Commissioner on Friday. Please note the Department has confirmed to date that 8 of the 10 top ten companies have confirmed they will not be invok-ing their hurricane deductible even though their trigger was met, this represent 80% of the written premium volume in the

IIAC Agent Notice Originally Released on September 6, 2011

Connecticut Health Insurance Exchange

The Connecticut Health Insurance Exchange held their first meeting last month. Members were introduced and a schedule

was developed for hiring a CEO for the exchange and for future meetings. Connecticut received $6.7 million dollars in federal

grant money to get started and will apply for more funds next year. Additional information about the exchange can be ob-

tained at www.healthreform.ct.gov

Connecticut, Swiss Regulators Sign Cooperation Agreement CID: New Releases Dated 09/23/2011

Insurance Commissioner Thomas B. Leonardi announced today that the Connecticut Insurance Department (CID) and the Swiss Financial Market Supervisory Authority (FINMA) have signed a memorandum of understanding to allow for closer regu-latory cooperation between the two. FINMA is the government body responsible for financial regulation in Switzerland, which includes the supervision of banks, insurance companies, stock exchanges and securities dealers, as well as other finan-cial intermediaries. “The insurance industry is an international one and continues to expand its global reach. Regulating it cannot stop at the border and must be looked at in its totality. This commitment will allow Connecticut and Swiss regulators to work effectively together and ensure market stability for consumer protection,” said Commissioner Leonardi, who along with Governor Dan-nel P. Malloy, was among the key speakers today at a UConn Law School forum on international insurance regulation. As a result of the agreement, both regulatory agencies may request assistance from the other and that includes obtaining information on a regulated company or individual. The Commissioner said the CID has a similar memorandum of understanding with De Nederlandsche Bank, N.V, the financial regulator for the Netherlands and has another agreement pending with the Germany Federal Financial Supervisory Authority (BaFin). The CID has also applied to be a signatory to the International Association of Insurance Supervisors Multilateral Memorandum of Understanding on Cooperation and Information Exchange, which currently includes 17 non-U.S. jurisdic-tions.

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 9

In 1996, as a successful attorney in Los Angeles, I realized the only business inventory I had built up over the years was my billable hours. I wanted to build a solid income stream for my children and grandchildren.

Then my son-in-law called about joining him in a Krispy Kreme franchise business in Southern California. Back then, Krispy Kreme was a red-hot brand, and we thought we had found the ideal business vehicle.

Our first store opened in La Habra, CA in January 1999, and was an instant hit, logging $141,000 in first-week sales, compared to $300,000-$500,000 per year at the average California doughnut shop. In its first year, the store did an incredible $9 mil-lion in sales.

“Late Night with Jay Leno,” celebrity patrons and tremendous growth When a second store opened eight months later in Van Nuys, Calif., Jay Leno joked on “The Tonight Show” about no cops being on the streets because they were all at our opening. While a subsequent 15% sales drop-off at La Habra seemed omi-nous, it was still one of the most successful California doughnut restaurants.

The business continued to mushroom, following the aggressive growth plan required by the franchise contract. By the end of the second year, Great Circle Family Foods, as our business was called, owned and operated 10 California restaurants, pump-ing out 70 million doughnuts annually and doing $34 million in sales.

We were obligated to open 42 stores in six years, leaving no room to moderate the growth. At our peak in 2004, we ran 31 stores generating $64 million in sales, more than any other franchisee in the chain.

Signing the Personal Guarantee – no big deal As the business grew, we consolidated financing, and two large lenders required our managing partners to sign a personal guarantee (PG). Under the terms, the lender could pursue personal assets (homes, bank accounts, etc.) if the loan defaulted. We were “jointly and severally liable,” meaning any one of us could be on the hook for up to 100% of the loan in that sce-nario.

While I worried about signing a PG for a company I didn’t own outright, demand was red hot and I wanted to believe repay-ment wasn’t an issue. When I balked at signing, the lenders said no loans could be made without a PG, that every partner would sign one, and that it wouldn’t be called unless there was a misrepresentation or some other serious breach of trust.

As we opened new stores, we realized the growth plan was unsustainable due to cannibalization and other factors. So Krispy Kreme granted us a year reprieve from the plan if we agreed to get into the wholesale business.

Adventures in wholesale We struck marketing partnerships with iconic California brands like Walt Disney, UCLA, the L.A. Dodgers and the Los Angeles Times. But the wholesale grocery business was a disaster.

People came to the stores due to the buzz created by the franchises, but instead of the doughnuts being ambassadors of

goodwill, they became ambassadors of ill will because of their short shelf life.

The perfect storm and the aftermath With the wholesale business failing, revenue per new store declining, and growth plans eating up cash, the business was not

healthy. Then in 2004, Krispy Kreme told shareholders it would have to restate all financial reports from 2000 onward.

Personal Guarantee Insurance: How an Attorney-Turned-Franchisee Discovered the Hidden Risks in Business Financing

By Richard Reinis

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 10

In October 2005, Great Circle stopped servicing its debt as its cash flow dried up. Transparency, a new CFO, a workout spe-cialist and some hard work with lenders followed, but it was not enough. I was sued by two lenders to collect on my PG. These cases settled as Great Circle sold 20 of 31 stores and exited the wholesale business.

After two years of negotiations, we agreed to sell the entire business to Krispy Kreme. While we argued bankruptcy was un-necessary, the company insisted on purchasing the assets out of Chapter 11. So we filed in August 2007 – only to have Krispy Kreme back out of the deal three months later. By 2009, a newly capitalized Great Circle emerged from Chapter 11 with 11 stores doing $18 million in sales.

But this all came at a steep personal and professional cost. I left myself open to this nightmare because I wasn’t protected, and I underestimated the risks inherent in a PG. Instead of my plan to add value to my kids’ lives, I diluted that value and risked everything my wife and I had worked so hard to build.

Here are some key lessons learned:

Tell your family the truth about the PG upfront – not after you’re already in trouble. When you sign a PG, it’s completely unfair to obligate shared assets such as your home and retirement accounts without telling your spouse. You’d be amazed how few businessmen tell their wives, “Honey, I’ve just hocked our house.”

If possible, don’t guarantee an obligation for a franchise business you don’t own outright. If it’s a “joint and several” situa-tion, and your stake is just 25%, you might think you’re OK, but you’re not. If you’re more liquid than your partners, the bank will go after you if the PG is called. So unless you own 100% of the business, think carefully about this. Get your partners and your company to agree to pay their share.

Don’t believe the myth that all PGs are created equal. Some will give you a carve-out, others won’t; some will offer a burn-off or a cap, while others won’t. There are many ways to modify a PG, although it’s harder to do in today’s credit market. I tell people they can walk into the bank and say, “I love my wife more than my banker, so carve out the house;” it can be done.

Get insurance for your PG. Don’t wait on this one. You won’t be able to defend yourself once your company defaults. And if you try, it will be very costly. By the time the PG is called, the game is over – your equity may be wiped out, your business is in default, and you haven’t protected yourself. Had Personal Guarantee Insurance been around when I signed, it would have given me bargaining leverage and peace of mind I didn’t have.

********************

About Asterisk Financial, Inc.

Asterisk Financial, Inc., a wholly-owned subsidiary of Asterisk Financial Group, Inc., is the developer of Personal Guarantee Insurance, the only insurance product available today that specifically addresses the risk mitigation needs of loan guarantors. Personal Guarantee Insurance protects small-to-medium-size business owners, commercial real estate investors and other guarantors from the liability and property loss arising from personal loan guarantees.

For more information on PGI or to register as a producer, please visit www.personalguaratee.com, email info@asteriskfinancial.com, or call the IIAC Program Manager, Angelo Tebano at 860.704.4728.

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 11

This article originally appeared in the September 2011 issue of Florida Underwriter magazine and is reprinted here with permission. For insurance agency owners, a well-conceived and prop-

erly executed perpetuation plan is a great mechanism for

harvesting the value generated through their dedication

and commitment to building their business. If planned

properly and structured correctly, it is possibly the most

rewarding and efficient method of harvesting value while

allowing successors the opportunity to grow and yield value

for themselves down the road.

While a sale of the business to an aggregator or public en-

terprise may appear to be lucrative for the seller up front, it

forestalls the same opportunity for the next generation of

owners, including the owner’s descendants. Further, an

ownership transfer through a perpetuation takes place

when the timing is right for all involved rather than relying

on the vagaries of the market or “which company is looking

to buy right now.”

Perpetuation is an option, however, only for well-run, prof-

itable, and growing agencies. If your agency is not a good

performer, it is unrealistic to expect your younger produc-

ers to “bail you out” with an offer. However, businesses

with reliable, recurring revenue will almost always have an

opportunity to improve their operations if they are profes-

sionally run and managed with a daily focus on growing

value.

The best-conceived perpetuation plans that yield com-

pleted transitions share some common characteristics. As

stated previously, the first leg of the stool is a profitable,

well-run agency. The other characteristics are reasonable

expectations on the part of the buyers and sellers, a prop-

erly structured and sustainable deal arrangement, and buy-

ers that have the willingness and necessary experience to

be agency owners. The final characteristic—one that is of-

ten overlooked until it is too late—is financing.

Show Me the Money

The willingness of the seller to finance a portion of the

transaction is secondary only to the availability of third-

party financing from a bank or finance company. The abil-

ity to make a substantial down payment to the owner fi-

nanced by a source outside of the business is the best way

to convince a seller that the internal sale can be as good on

day one as a sale to a public broker or aggregator. In these

days of low investment returns and ratings agency down-

grades, cash received in-hand speaks volumes.

The well-run agency is one that can grow organically and produce a healthy bottom line. The agency valuation is de-pendent upon profitability since the value of an agency represents the capitalization of profits to the owners over time. How can an agency that is not profitable have good value? Agencies usually trade at multiples ranging from five to seven times cash flow. Even using the old revenue multiple rule of thumb that assumes an agency is worth 1.5 times revenue, there is an implicit assumption that the business has a 25-percent profit margin. The multiple represents approximately six times that bottom line. Agency profits over time not only represent value but also provide the cash flow needed to repay the debt used to acquire the agency. Agency owners can position their agencies to be peak per-formers by installing a growth culture in their organization. To accomplish this:

Hire only producers who you truly believe can be own-ers someday. Pay for performance of your staff; do not pay for non-performance. Pay particular attention to the compensation structure of producers and staff.

Remember, compensation is usually the most significant expense for an agency. Be reasonable in the compensation expectations for yourselves, reduce debt aggressively whenever possible, and keep balance sheet risk low by maintaining an appropriate level of working capital and staying in trust. There is a wealth of available information to benchmark the financial performance of your agency to other agencies of similar size.

Agency Perpetuation from the Lender’s Perspective

Only Well Positioned Agencies Need Apply By Robert J. Pettinicchi

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 12

Coming to Terms Reasonable expectations of buyers and sellers are a little more subjective to determine. However, the most sensitive discussions usually pertain to differences in perspective regarding the value of the agency. Profitable, growing, well-run agencies are more valuable and can repay the debt incident to the perpetuation transaction. Getting profes-sional advice and a valuation from a reputable advisor is strongly recommended for both parties early in the proc-ess. A proper and sustainable perpetuation structure is vitally important. The perpetuation plan should allow a selling owner to achieve retirement goals of reaping a solid return on the productive time and effort he put into the business. By the same token, the plan should enable the successor owner(s) to achieve their own business goals (which pre-sumably are to buy a productive agency with a bright fu-ture). The plan cannot be one-sided. It must be designed to work for both the seller and the successors. Important elements of the plan should include how taxes will be mini-mized for both the buyer and seller, how control will be passed on to the succession team, how the buy/sell agree-ment is funded, what flexibility the plan allows, and the role of outside financing. A strategic lending partner can help work out the details for a financing structure for an agency perpetuation. Tradi-tional banks have not been a good source of capital for agency perpetuation transactions because they usually re-quire hard collateral (tangible assets such as property, plant, and equipment) to back up business loans. However, insurance agencies do not typically have significant tangible assets. When traditional bankers scan financial statements, they may not view intangible business assets as valuable for collateral. Thus, some banks may require agency owners to pledge a house or other assets as personal collateral. On the other hand, a specialized lender that works fre-quently with insurance agencies tends to understand agency value and the business’s ability to repay a loan. To use intangible assets as collateral requires a lending institu-tion that recognizes how independent insurance agencies operate and create value. When shopping for a lender for your agency, an agency owner or the acquiring parties should look for an institution with insurance industry knowledge. The more a lending institution’s decision-makers recognize the unique aspects of the agency business, the more likely they will understand the value to be created or harvested in a perpetuation transaction for an independent agency.

A good rate does not a good deal make. Just like a con-sumer or business owner needs to shop on more than price, an agency principal should look at more than interest rates and terms. Banking professionals should be knowl-edgeable, informed, and informative. Finding the Right Advice The guidance and perspective of a qualified, experienced lending officer and/or an industry financial consultant can help agency principals avoid costly missteps and capitalize on opportunities. Often, banks tout their insights into busi-ness to try to attract customers. However, the number of bankers with insurance experience and expertise is rela-tively low. One size does not fit all in agency perpetuation. Agency principals need lenders that are fair and disciplined in their analyses, while also being flexible and creative in develop-ing lending solutions. As an agency owner looks to realize the value held within his agency, a key ally is an experi-enced lender who takes a complete look at the agency to determine needs and recognize the long-term value. A good banker is like a good insurance agent. Each looks at the whole picture of a situation, considers the client’s ob-jectives, and prepares a professional recommendation based on experience and expertise. The independent agency owner who has that type of relationship is an agency owner with a strong ally and a bright future. Robert J. Pettinicchi is chief lending officer of InsurBanc, a federally-chartered bank dedicated to providing banking products and services to independent insurance agents. The bank is based in Farmington, CT. (866) 467-2262

Member FDIC

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 13

One of the benefits of being a member of IIAC is access to the IIABA system. This system offers a wealth of resources ranging from the Virtual University to the “Ask an Expert” feature. Every member agency has an organization administrator who has the authority to assign a username and password to each of their employees. Organization administrators can access this feature by going to www.iiact.org and following the steps below.

Log-In using your username and password. If you do not know your username and password click on “Forgot username or password?” on the website to have that information emailed to you. If you need additional assistance, please contact Tracy Hearn at 860-563-1950 or by email at thearn@iiac.org.

Once logged in, on the left side of the red bar you will see “XXXX’s Info” / “log-out” (XXXX’s will be your name) – click on “XXXX’s Info”

You will now be in your organizations information screen. (Important - Only Agency Administrators can view and edit agency information. All other individuals can only view and edit their own information.)

It’s important that no changes be made to your organizations address or phone number information without sending notifi-cation to Tracy Hearn at the Independent Insurance Agents of Connecticut either by mail or e-mail. Otherwise your state association will not have the most up-to-date mailing information for your agency.

To Add Users to your Organization:

Click on the “Users” tab

On the right side of the blue bar, click on “Add New User” Under the “General Information” tab, enter the employee’s Personal Information and Address Information. Each employee will be assigned their own National ID number.

Once saved, your employee will now have their own account with the username being their e-mail address and their unique National ID number which is their default password. However passwords can be changed by clicking on the “Set / Reset Password” tab.

The username and password will provide the employee with their own individual access to member only information on the IIAC website as well as all IIABA websites which include the Virtual University and the Ask an Expert functionality.

Items to Note:

“Group Role/Information” tab is where the roles assigned to individuals are listed. In addition this is where you can assign an individual the Organizational Admin role that allows that person to edit agency information. We strongly recommend that only 1 or 2 individuals have that role assigned to them.

Each employee will be given their own user ID (email address) and password that will provide them with their own indi-vidual access to the IIAC website and all the IIABA websites to include the IIABA National website, Virtual University, IA Magazine, and Big I Markets.

If an employee leaves the agency they need to be removed from the system as a user. To do this, go to the “Users” tab and click on the Delete option next to the employee’s name that is no longer with the agency.

Also do not change an existing individual’s record to make it usable by another individual. A new employee should be added and the old employee deleted rather than modifying an existing record.

MEMBER BENEFITS

Directions for Agency Organization Administrators

To Add Employee Users in the IIABA System

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 14

For more information on the RLI Personal Umbrella program, contact Rose Mullaly at

860-563-6510 or

rmullaly@iiac.org Or visit the “Member Resources”

page of our website www.iiact.org

TAKE ANOTHER LOOK AT THE RLI PERSONAL UMBRELLA!

See how you can write more business with an admitted, secure, A+ rated carrier

A smart choice for your customer

Today’s legal environment calls for extra protection for almost all your clients. Ask every new and current cus-tomer about Personal Umbrella coverage.

The RLI Personal Umbrella Policy …

Financial stability and responsible underwriting are the foundations of this program that has been consistently available for over 25 years.

Up to $5 million in additional insurance $1 million Excess UM/UIM available Expanded underwriting – more acceptability No underlying carrier information required Immediate availability & very affordable

A smart choice for your agency

By making customers aware of these important extra lay-ers of protection, you won’t have to answer the E & O question – “If extra coverage was available, why didn’t you offer it to your client before this accident?”

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, regulations (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

Sun Mon Tue Wed Thu Fri Sat

1

2 3 4 5 ACSR #2

Personal Auto Insurance 8:30 - 4:30

6 7 8

9 10 11 12 13 Life &

Health Pre-Licensing

8:30 - 4:30

14 15

16 17 18

ACSR #4 E&O Loss Control

8:30 - 4:30

19 20 Life &

Health Pre-Licensing

8:30 - 4:30

21 22

23 24 P&C

Pre-Licensing 8:30 - 4:30

25 26 27 28 29

30 31 P&C

Pre-Licensing 8:30 - 4:30

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

Sun Mon Tue Wed Thu Fri Sat

1 2 3 4 5

6 7 8 9 10Mid-Year

Convention Aqua Turf 8:00 - 2:00

3 LRE Credits

11 12

13 14 15 16

ACSR #7 Commercial

Liability 8:30 - 4:30

17 18 19

20 21 22 23 24 25 26

27 28 29 30

AAI 81C Commercial

Property 8:30 - 4:30

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 17

2011 - 2012 IIAC EVENTS

Mid-Year Convention November 10, 2011

Aqua Turf Club, Plantsville, CT

Spring Conference Sponsored by the IIAC Young Agents Committee

May 2012 Exact Date, Location & Program TBA

Annual Dinner Meeting and Installation of Officers

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

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

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 - October 2011 Page 18

Big “I” Professional Liability As a member of your state association, 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. With comprehensive rates and a long-term market, the Big “I” Profes-sional Liability program is properly positioned to meet your professional needs, protecting the future of your agency. 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 our 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. They offer quality investments, state of the art administration and the support of your association as an advocate for your agency. Look to us also for Group Long Term Disability, Group Short Term Disability and Group Term Life Insurance. 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. With RLI's PUP program, auto or home coverage can be maintained with any insurance company provided the mandatory minimum underlying coverage limits are met. RLI’s @Home Business policy, responds to the needs of over 100 eligible business classes on an ISO BOP form. Premiums starting at $150, competitive commissions, easy under-writing and a self-rating application should makes this product an easy sell. 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); Big “I” Store (logowear); Hertz (car rental); Artizan Internet Services (Service 911, CSR 24). www.independentagent.com.

OF ALL YOUR MEMBERSHIP HAS TO OFFER??

ARE YOU TAKING

ADVANTAGE

??

?? Big “I” Advantage Programs

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 19

InsurBanc InsurBanc is an independent community bank founded by agents exclusively for agents. You can rely on InsurBanc for custom products designed to underwrite your success, like acquisition and perpetuation financing and cash management services perfectly suited to the way you do business. www.insurbanc.com.

Virtual University www.independentagent.com/vu

Research Library For those who seek a smarter way to research, the VU provides access to hundreds of insurance, business and technology articles written by volunteer faculty and other contributors. Technical insurance articles and white papers on issues affecting today’s marketplace, often include links to full sample ISO forms. Resources in the VU are limitless.

Ask an Expert Service Sometimes you need answers to questions that can't be found in the research library. To help with these "just in time" is-sues, we have assembled a faculty of leading experts from around the country. 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 to enhance and expand insurance technical and business skills. Many designa-tion programs are also available through the Virtual University.

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.

Trusted Choice®

In a world full of millions of media messages each day, differentiating the services of independent agents and brokers to con-sumers is critical. Trusted Choice®, the national consumer branding program sponsored by the Big “I”, uniting more than 10,000 independent agency locations and 53 insurance companies. Based on extensive consumer and industry research, Trusted Choice® highlights the value of the independent agent distribution channel: choice, customization and advocacy. www.trustedchoice.com

Governmental 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. Through common-sense, pragmatic legislative initiatives, we seek to protect your business while keeping the consumer in mind.

OF ALL YOUR MEMBERSHIP HAS TO OFFER??

ARE YOU TAKING

ADVANTAGE

??

?? Big “I” Advantage Programs

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 20

2011 - 2012 Officers

Chairman Tom Wilson

The Wilson Agency, Shelton

Chairman-Elect Michael Gergler, CIC

Wilcox & Reynolds, Storrs

Treasurer Jim Suzio, CIC

Suzio Insurance Center, Inc., Meriden

Secretary Kim McGillicuddy, CPCU

Pierson & Smith, Inc., Norwalk

State Director Jay Byrnes

Byrnes Agency, Dayville

IIAC Committees The Independent Insurance Agents of Connecticut has several committees which are dedicated to furthering both the benefits of membership and the professionalism of individuals within the insurance industry. Committee members are volunteers who are either an owner or an employee of a member agency. IIAC is always looking for new individuals to serve on its committees. If you are interested in becoming a committee member, please com-plete the information below and return this form to: IIAC, 30 Jordan Lane, Wethersfield, CT 06109 or email to the committee staff liaison

Name: ___________________________________________________________________________________

Agency & Full Address: ______________________________________________________________________ Phone: (______)__________-__________ E-Mail: _____________________________________________

Indicate Committee: ________________________________________________________________________

Education Committee – members help create IIAC programs and locate teachers and resources. Staff Liaison, Ed Meaney, emeaney@iiac.org Executive Committee – members must be a principal in an IIAC member agency and are part of the governing body of the association. Membership on the committee is limited and must be voted upon by the Board of Direc-tors. Staff Liaison, Warren C. Ruppar, wruppar@iiac.org Technical Committee – members analyze current industry topics and issues, make recommendations on how to handle, and funnel information to the Education Committee to create programs. Staff Liaison, Ed Meaney, emeaney@iiac.org Young Agents Committee – members create networking programs to promote young professionals in the insur-ance industry. Staff Liaison, Tracy Hearn, thearn@iiac.org

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 21

Absolute Logic 917-658-9008

www.absolutelogic.com

ACE Private Risk Services 860-828-7931

www.aceprivateriskservices.com

Agency Intermediaries, Inc. 203-453-2859

www.agencyint.com

Agility Recovery 704-341-8700

www.agilityrecovery.com

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

Astonish Results, LP

401-440-5955 www.astonishresults.com

Auto Glass of New England, LLC

203-375-4700 www.autoglassofnewengland.com

Broadway Premium Financing

800-728-7255 www.broadwaypremium.com

CATIC Exchange Solutions, Inc.

860-513-3131 www.caticexchange.com

Connecticut Interlocal Risk Management Agency

203-498-3000 www.ccm-ct.org/insurance/

Connecticut Underwriters, Inc.

860-347-9600 www.ctunderwriters.com

Crystal Restoration Services 203-853-4179

www.crystal1.com

Paul Davis Restoration 860-539-0911

www.pdrestoration.com

Deep South 410-771-0682

www.deep-south.com

Demetriou General Agency, Inc. 212-897-6912

www.demetriougroup.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

Gill and Roeser Holdings, Inc. 212-972-3306

www.grholdings.com

Glass America 860-444-6344

www.glassusa.com

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

Insurance Agency Accounting & Bookkeeping

860-614-7268 www.brendadicarlollc.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 - October 2011 Page 22

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

Lyons Solutions, LLC 860-559-3194

www.lyonssolutions.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

Anthony J. Martini & Co., Inc. 203-445-6640

www.thatsmybroker.com

Maynard Insurance Group 203-318-0008

maynardinsgrp@yahoo.com

Mergers & Acquisition Services 212-750-0630

www.merger-acquisition.net

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

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 - October 2011 Page 23

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

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.amtrustgroup.com

AmTrust North American, Inc.

860-257-7286 www.andoverco.com

The Andover Companies

860-257-7286 www.andoverco.com

Chubb & Son Insurance

203-782-4115 www.chubb.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

Great N.Y. Mutual Insurance Company 860-652-7090 www.gny.com

Harleysville Worcester Insurance Company

800-225-7387 www.harleysvillegroup.com

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

ASSOCIATE MEMBER INSURANCE BROKERS AND SERVICES

(Click on the website for a direct link)

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 24

The Hartford 860-409-6150

www.thehartford.com

HCC Global Financial Products 860-674-1900

www.hcc-global.com

The Hingham Group 781-749-0841

www.hinghammutual.com

Kemper, A Unitrin Business 203-775-5846

www.ekemper.com

MetLife Auto & Home 860-668-2699

www.metlife.com

MiddleOak 860-638-5132

www.middleoak.com

NLC Insurance Company 860-887-3553

www.nlcinsurance.com

Ohio Mutual Insurance 419-563-0959

www.omig.com

Peerless Insurance 860-571-2201

www.peerless-ins.com

Pennsylvania Millers Ins. Co. 860-677-8488

www.pennmillers.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

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

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)

Independent Insurance Agents of Connecticut - www.iiact.org - October 2011 Page 25

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.