T H U R S D A Y ,   S E P T E M B E R  4 ,   2 0 0 8

Industry News

Trusted Choice^®
Big “I” Encourages Donations to Trusted Choice^® Disaster Relief Fund

As Tropical Storm Hanna and Hurricane Ike develop, and Hurricane Gustav lingers in the Gulf Coast, the Big “I” stands ready to help meet disaster assistance needs through the Trusted Choice^® Disaster Relief Fund. Although better planning and disaster preparedness helped to lessen the damage from Gustav, there are still more than two months left in the 2008 hurricane season, and those in the Midwest are still recovering from flooding earlier this summer.

The Trusted Choice^® Disaster Relief Fund was established by the IIAA Educational Foundation of the Big “I” to assist those who have suffered losses due to natural or man-made disasters. The foundation is a 501(c)(3) entity and all contributions are tax deductible.

“An established permanent relief fund allows us to financially assist victims when and where a disaster strikes, rather than raising the funds after the fact as we did for 9-11 and Hurricane Katrina,” says Bob Rusbuldt, president & CEO of the Big “I.” “We encourage those affected not only by the recent storms in the Gulf, but also by the flooding in the Midwest, to apply for a grant.”

The fund makes cash grants to those in the insurance industry, including Big “I” members and their agency staffs, and others to pay for immediate or ongoing financial needs when other funding sources (such as insurance and other grants) are not available, to fill the gap until other funding sources can be accessed and to provide insurance agents with supplies and resources to assist with disaster relief efforts to aid victims and surviving family members in their communities.

“This fund is a great way to show our ongoing support as an industry for victims of disasters and to assist independent agents, industry colleagues and others during their greatest time of need,” added Dave Evans, executive director of Trusted Choice^®.

To make a tax-deductible contribution to the fund or to apply for a grant, go to www.independentagent.com and click on “About Us” and then “Trusted Choice^® Disaster Relief Fund.” To contribute via check, send a check payable to the “Trusted Choice^® Disaster Relief Fund” to:

Attn: Lillian Carter
Trusted Choice^® Disaster Relief Fund
127 S. Peyton St.
Alexandria, VA 22314


IIABA News
Big “I” Opposes SEC Equity Indexed Annuities Proposal

The Big “I” has submitted a comment letter to the SEC concerning a proposed rule to subject equity indexed annuities to oversight by the SEC rather than state insurance regulators. The Big “I” strongly objects to this increase in federal regulatory authority.  IIABA believes the commission’s proposal to subject indexed annuity products to federal regulatory oversight is unwarranted and counterproductive.

Should this proposal be implemented, independent insurance agents would be forced to become licensed as registered representatives or stop selling these products altogether.  Those individuals willing to complete the additional regulatory process will also be forced to associate with a broker-dealer who may impose contractual terms, conditions and sales quotas that make it practically impossible to continue to sell indexed annuities.  These licensing hurdles, unprecedented compliance obligations and costs, and marketplace realities would result in fewer individuals available to sell these products.  Inevitably, the end result would be less competition and consumers being less ably served by their insurance advisors. To read the letter from the Big “I,” click here.


IIABA News
Online Registration for Big "I" Fall Leadership Conference Closes Tomorrow

Online registration for the 2008 Big “I” Fall Leadership Conference will close tomorrow, Sept. 5. Don’t forget to register yourself and any guests for the Installation of Officers Luncheon on Sept. 13 if you plan to attend. Luncheon tickets will be distributed onsite with registration materials. Click here to find details about the event or to register online.  There are also spaces left to play in the golf tournament on Sept. 12. Click here to find details about the tournament or to register online. For questions about registration, contact Lauren Batch at lauren.batch@iiaba.net.


Best Practices
The Gateway to Best Practices

Did you know you can access Best Practices information and tools online via the Best Practices Gateway? From the Big “I” home page, members can link to the Best Practices Gateway to browse the latest research on top rated agencies, rank their performance against the Best Practices agencies, download useful tools to improve performance and share their opinions and experiences on a variety of agency management issues. 

At the center of the Best Practices Gateway is the 2007 Best Practices Study, a joint effort of the Big “I” and Reagan Consulting, Inc. The annual study compiles the financial and operational results of the country’s top performing agencies and provides industry benchmarks in six revenue categories. Members can browse these benchmarks through the executive summary and download a Best Practices Excel comparison spreadsheet for calculating their agency’s performance gaps. The spreadsheet downloads with the results from each of the six revenue groups.   

The Gateway also provides a performance quick check that lets members compare their agency’s performance in seven areas critical to agency value and to obtain an overall weighed performance score. From the score page, members can drill down to specific information for assessing and improving agency performance in each of the seven areas.  Members can also review a complete menu of all available Best Practices resources, download samples from each and obtain ordering information.  

The Gateway also provides a tool kit that allows members to review other Best Practices resources broken out via agency management topics such as procedures/workflows, sales development, leadership, team building, customer service and more.

To access the Best Practices Gateway, visit www.independentagent.com, select “Member Resources” then select “Best Practices” and “Best Practices Gateway.”


InVEST
Do You Have an InVEST Success Story?

InVEST is in search of success stories! Share your InVEST news with all your Big “I” colleagues. Here’s one of many InVEST success stories from an insurance industry professional in North Carolina.

“I’ve really enjoyed working with InVEST and I love spending time with the students,” says Susan Audino, assistant vice president of Chubb Specialty Insurance and InVEST guest speaker. “They are so respectful and appreciative of my time and presence.”

Audino was first introduced to InVEST four years ago by Bob Betters, an agent with Watson Insurance in Gastonia, N.C. In 2004, Betters launched his own class at Charlotte Catholic High School, teaching some 40 students about insurance and business each Friday. Every semester Audino assists Betters in teaching his InVEST class by making a presentation on kidnap & ransom insurance that is very well received by the students.

“The students really get a kick out of risk prevention,” she says.

When asked her biggest challenge of working with high school students, Audino says it’s “getting them to talk…but, once you get the first question, then they start rolling. Their scope is so fresh. They each throw a zinger. And, what I love is when the students start checking each others questions.”

What is your story? InVEST wants to hear about your classroom experiences, internship opportunities, event information or even testimonials. Feel free to submit photos too. Send in your stories and maybe you’ll see your story in Insurance News & Views or on the InVEST Web site.

When submitting your stories, please include your name, your role with InVEST and permission for InVEST to publish your news. Send news to Amber Williamson at amber.williamson@iiaba.net. For more information, contact Williamson at 1-800-221-7917.

InVEST, a 501 (c)(3) educational trust, is dedicated to improving insurance literacy and attracting new talent to the industry. For more information, visit www.investprogram.org.


Big “I” Markets
Habitiational Market Offers Guaranteed Replacement Cost

In today’s marketplace agents are looking for an advantage when it comes to servicing their clients. Most know what their clients want, but sometimes struggle to deliver what they need. Attributes such as great service, being in business for a long time and representing numerous markets don’t make agents different --- they make them the same. The true competitive edge lies in being different. So how do agents separate themselves from the pack? They position themselves as experienced professionals who stand out from the competition.

Take MiddleOak Specialty^®’s guaranteed replacement cost loss settlement option for example. Most commercial insurance policies provide replacement cost but limit the maximum payable with a percentage cap. Other insurance companies offer blanket and/or agreed value with a statement of values filed with the company. In essence, limiting what the insured can collect from the carrier if a disaster should happen. Most agents believe these are adequate solutions. But what if the loss is above and beyond the blanket limit?

With guaranteed replacement cost coverage there is no percentage cap and/or maximum limit set. So agents and their insureds will have the peace of mind knowing that, after a devastating loss to their business, this loss settlement option will truly bring them back whole even if the loss goes above the scheduled limit on the policy. MiddleOak Specialty^® will figure the value of the buildings at policy inception. All MiddleOak Specialty^® requires is that agents insure to that value and advise them of any future improvements to the building that exceed $25,000. MiddleOak Specialty^® will guarantee the replacement of the building regardless of the cost at the time of the covered loss. For example, if MiddleOak Specialty^® insures the building for $2.5 million and the loss is $3 million, it’s covered. With so many different insurance contracts in use, there are just too many variables to consider when setting a replacement cost limit. For more information, visit www.bigimarkets.com.


Big “I” Flood Program
Got Selective Flood Claims? Refer to this Claims Process

For agents with flood policies through Selective, the Big “I” Flood program’s endorsed carrier, the following information explains how to get claim information to the company.

Notice of Loss
1. Report the first notice of loss to Selective Flood via:

o The Web site at www.floodonline.com. Select search, enter policy number, click search and then click notice of loss. (Available only if agency has been given access to the site.)
o Report by phone by calling 877-348-0552 (either from agent or insured).
o Fax an ACORD or flood notice of loss form to 973-948-4415.

2. Once Selective receives the new loss, it will be entered into the Flood Online^® system and verified.

3. The coverage verification sheet and loss notice are then forwarded to the adjusting company so the FEMA certified adjuster can contact the insured to arrange an inspection within 48 hours of receiving the claim.

4. The Selective claims representative will also make contact with the insured within 24 hours of receiving the claim to let them know what to expect, who their adjuster is and answer any questions. The claims handbook, policy, declaration page and contact information is also mailed to the insured at the time a claim is opened.

5. You can view the status of your claims at www.floodonline.com (available only if agency has access to the site):
o Individually by viewing the policy history screens available through the search function.
o In your agency profile using the “Claims by Agency” report which will list all of your claims by date of loss.

Selective’s flood claim staff is available to assist you with any of your flood claims needs. To contact them call 877-348-0552 or 973-948-3311. For after-hours emergencies, call 973-903-0229.

Handling claims is the most important aspect of servicing a client and Selective offers a “promise to pay” in the event of a claim. To check out Selective’s quality of service during the Midwest floods, click here.


Big “I” Markets
Agents Find Success with BIM

In case you missed them --- the following success stories about agents and Big “I” Markets were featured in a recent Two for Tuesday newsletter. Feel free to share these stories with your agency’s staff.

Turning an Obstacle into an Opportunity
Arline Kogas of the Kagawa Insurance Agency in Los Angeles, Calif. was in a bind. The agency had just lost its direct appointment with Fireman’s Fund and she knew her clients would not be happy if she tried to move them to another carrier. She had sold them on the value of the Prestige^® Portfolio product for high net worth households and now she was stuck. Then she remembered reading about Fireman’s Fund in a Two for Tuesday publication. So she called Jodie Bacote of the Big “I” Markets affluent underwriting team and got set up for access to Big “I” Markets.

“I am so happy,” Kogas said. “I have begun moving my Fireman’s Fund customers into Big ‘I’ Markets and to them it is a seamless transition. They get to keep the same coverage and I get to keep it with the same company.”

If you find yourself in a similar situation, remember to check out the product offerings on Big “I” Markets to see if you can still access the same carrier or perhaps even discover you can access a better product from a different carrier.

Filling Vacancies
Starting a new agency is not easy. And even though agent Larry Peyton of the Tahoe Insurance Group in Lake Tahoe, Nev. worked in his brother’s agency before going off on his own, the challenges were still formidable. With only a year of experience running his own agency, Peyton is a relative novice to the industry, but showed the savvy of a seasoned veteran by quickly carving out a niche with local builders. So when he read about the new vacant dwelling product he quickly took advantage of it.

“I found out about the market while cruising through the Big “I” Web site,” he said. “I do a lot of business on the north shore of Tahoe where builders put up homes to sell. Once they are built they are vacant until sold and that’s where I come in. I have found that builders really like the 3-6-12 month policy period options that Lexington offers. It also helps that properties can be in the name of a LLC or corporation. Overall it’s a really cool program. I’ve already bound two for close to $20,000 in premium and I have a couple more in the works that I expect to bind.”

And what about the underwriting support? Peyton says, “Carla Eiring, the underwriter I dealt with, is just awesome. I called her at 4:55 p.m. one day with a rush job and the next morning I came in and the quote was waiting for me.” But the hanging of a “no vacancy” sign won’t mean the end of Peyton’s opportunity. He has used the Fireman’s Fund Prestige^® Portfolio and Chubb Masterpiece^® products before to write some affluent homeowners. Peyton says the builder he works with will refer him to the people who buy the homes insured under the vacant dwelling product. And when he talks to those new homeowners he says, “Fireman’s Fund is great and a lot of my high net worth clients really appreciate the $100,000 deductible option.”

To access these products, visit www.bigimarkets.com.