INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA. January 2018

Transcription

1 INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA January 2018

2 IIASD Trusted Choice Make-A-Wish Sendoff IIASD Agents gathered at the Sioux Falls Airport on Tuesday, January 9th to send Sydney and her family on a trip of a lifetime to Hawaii where they experienced the sights, scenes and culture of this state. Sydney is a Sophomore at Madison High School and suffers from severe epilepsy. Sydney, shown at the center of the photo, was joined by Melanie Parsons, Elizabeth Nepodal, Jeff Pray, Steve Tripp, Ryan Karst, Jim Parsons, Amy Olson-Miller, Daschle Larsen and Carolyn Hofer. IIASD proudly sponsored two Wishes in 2017 and plans to do the same in

3 INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA PRESIDENT Jesse Konold Key Insurance Inc. Mobridge, SD VICE PRESIDENT Derrick Linn Leavitt Heartland Ins. Services Sturgis, SD PAST PRESIDENT Annette Conway Black Hills Agency Inc Rapid City, SD DISTRICT # 1 Josh Gilkerson Fischer Rounds & Assoc. Pierre, SD DISTRICT # 2 Mindy Huntington Fischer Rounds & Assoc. Watertown, SD DISTRICT # 3 Melanie Parsons Parsons Insurance Agency Viborg, SD DISTRICT # 4 Amy Olson-Miller McKinneyOlson Insurance Sioux Falls, SD 2018 OFFICERS 2018 DIRECTORS PRESIDENT-ELECT Derrick Linn Leavitt Heartland Ins. Services Sturgis, SD SECRETARY-TREASURER Josh Gilkerson Fischer Rounds & Assoc. Pierre, SD IIABA STATE NAT L DIRECTOR Dan Maguire Black Hills Agency Inc Rapid City, SD DISTRICT # 5 Elizabeth Nepodal Fidelity Agency Platte, SD DISTRICT # 6 John Meyen Rosholt Insurance Agency Rosholt, SD DISTRICT # 7 Amy Bailey Starr Insurance Custer, SD DISTRICT # 8 Deana Taylor Agents of Insurance Rapid City, SD EXECUTIVE VICE PRESIDENT Carolyn Hofer IIASD Fort Pierre, SD 2

4 Are you taking full advantage of your IIASD membership? We live in a fast-paced, industrious world and even though you may be waiting for the perfect time to get involved or participate by procrastinating, you may be missing out on opportunities that can improve your career and success. Education - IIASD events offer a wide variety of continuing education classes with online classes on our website for CE and new agent training. Networking is a valuable benefit of attending IIASD events. Success in the industry comes with knowledge, relationships, experience. Sharing ideas and successes allows learning from the experiences of others. Our Young Agents group is a great example of the Power of Networking. Scholarships are offered annually to students of members. If you have a child in college, be sure to submit their name. SE Tech Scholarship A $20,000 scholarship fund was established at SE Tech for students enrolling in the Business/Insurance course. Spread the word to build the industry workforce. Fire Department Grants Nominate your local fire department for a $5,000 grant. IIASD has contributed $68,000 to SD Fire Depts since Advocacy - actively support the state and national lobbying to protect and enhance the industry and small business. Know your legislators and contact them when we need their support. Contribute to I-PAC and InsurPac. Newsletter check out the monthly electronic newsletter for information on upcoming events, great industry articles, ads by our company partners and markets. E&O E&O coverage, tailored to your agency, along with annual training for your agency staff. National Event Opportunities Legislative Conference and Leadership Conference. These national events are a once-in-a lifetime experience that enhance your commitment to the industry and association. All members are eligible to attend. 3 Get Involved Attend Farm & Small Town Conference Feb. 7th & 8th Click here to register.

5 E&O EDGE Megan Linn, E&O Administrator How to Prevent Losses from Liquor Liability Coverage Errors By Julie Carter Which of your commercial clients needs to purchase liquor liability insurance? That depends. Does the state require the coverage? Does the client s commercial general liability policy include liquor liability? And when do you have a duty to recommend this type of coverage, anyway? According to the National Conference of State Legislatures, 30 states have dram shop laws that make it possible for licensed establishments which sell or serve alcohol to be held liable for injuries or death that occur as a result of a patron's intoxication. Laws vary by state, but settlement figures and verdicts do not: The average verdict for drunk driving-related deaths surpasses $1 million. That's not surprising considering one in four liquor liability claims Swiss Re Corporate Solutions receives involve death claims. Regardless of dram shop law, judges and juries often readily award significant monetary compensation to victims of drunk drivers. In many cases, the prime candidates for liquor liability insurance are obvious: bars, liquor stores, clubs and the like. But while caterers, convenience stores, gas stations and more may not focus primarily on alcohol sales, many still serve or sell it. In other cases, establishments may be part of a building that also houses other businesses that have nothing to do with the sale or service of alcohol. Liquor liability insurance may be an afterthought, or the client may assume they have coverage under a CGL policy. It s easy to assume too much. E&O carriers see many claims in which liquor liability coverage was a subject of confusion for the agent, client or both. Clients typically refrain from purchasing the coverage because of cost, ignorance of state laws, or a property or business change they do not communicate to the broker. Each state imposes its own legal standard regarding agent and broker duties. Do you have a duty to inquire about liquor liability insurance needs, or inform the client about legal requirements? To be proactive about liquor liability insurance with all your commercial clients, ask yourself these questions: Do you know your state s dram shop laws? Does the client s business involve alcohol in any way? Does the client s CGL policy provide this coverage (rare), or do you need to add it via endorsement with an additional premium (the norm)? If an endorsement is available, did you recommend, apply for and procure it? Did you personally visit the establishment or view the property online? At renewal, did you ask the client about any changes regarding the business, including adding, expanding or omitting alcohol sales or service? Did you document the file regarding any discussion of coverage, or a refusal to purchase the coverage? Your clients may overserve their customers. Don t underserve yours. Julie Carter is an assistant vice president, claims specialist with Swiss Re Corporate Solutions. Contact Info: Megan Linn E&O Administrator mlinn@iiasd.org Phone: (605) Fax: (605)

6 Division of Insurance News and Views 2018 Legislative Session Division of Insurance bills The 93rd Legislative Session is currently under way in South Dakota. This year s 38-day session began at Noon on Jan. 9, 2018, for both the Senate and House of Representatives. Four pieces of legislation have been introduced on behalf of the South Dakota Division of Insurance: House Bills 1033, 1034, 1041 and House Bill 1033 provides for a biennial license renewal for business entities. Currently, these entities are issued licenses in perpetuity and are not required to provide updated data, including status, to the Division. Licensed entities will also be asked to identify a responsible party for any licensing issues and compliance matters. Outlining reasonable steps to identify the death of an insured and locate rightful beneficiaries of annuity and life insurance contracts is the intent of House Bill The federal Death Master File or other comprehensive databases will be used to aid companies in completing this process. House Bill 1041 establishes an internal audit function requirement for large insurance companies. This function is designed to assist the board of directors in evaluating the company and management s ability to protect assets, effectiveness and efficient of controls, as well as overall compliance with policies and regulations. Executive Order transferred the functions of the Division of Securities to the Division of Insurance with the Department of Labor and Regulation. House Bill 1042 corrects department and division references in statute to reflect this transfer of function. In addition, the bill makes it optional instead of mandatory for the division to utilize a seal for certain transactions. Interested parties can follow the daily action of the South Dakota Legislature via the Legislative Research Council website at Farm & Small Town Registrations February 7th & 8th Cedar Shores, Oacoma, SD Join us for a great winter event! Connect one-to-one with company reps, network with agents and just have a great time Your rewards are worth it: Valuable Sessions: Update on Farm Bill & SD Ag Economy, Livestock Rev Prot. Assigned Risk Work Comp Program (3 hrs P&C CE) Security Training (3 hrs Gen CE) (offered Wednesday & Thursday) Sales Techniques & Training The final day of session will be March 26,

7 Kayla s Technology Advice What is Mass Customization and Why Does It Matter for Insurance? Article By: J. TED JOYCE, RICK MORGAN, BRADLEY WHITLEY-WILLIAMS & DOUG JOHNSTON Mass customization the mass production of individually customized goods and services offers the opportunity for a tremendous increase in variety without a corresponding increase in costs. Although the concept is not new, technological advances such as digital manufacturing, big data and social media, mass customization is now able to go mainstream, promising to impact marketing and product development while changing the nature of manufacturing and product and service delivery. In an age of Uber and Airbnb, today s consumer demands products and services that are tailored to their individual needs, and the insurance industry must adapt to this new reality. When one size no longer fits all, insurance products themselves must become customizable. The focus on differentiating individual markets can result in usage-based products and pricing, allowing companies to price, package and sell in a variety of ways. Emerging InsurTech companies like Lemonade and Metromile are already capitalizing on this idea, offering usage-based products and flexible pricing. At its core, mass customization creates tension between technology and stability, between efficiency and creativity. This is a call to action for successful businesses. Uses and Economic Impacts Digital/on-demand manufacturing and 3D printing One-to-one marketing Big data 3D printing Module-based product development Rapid distribution Lower search and overall costs for buyers Superior service. Replacement of some segments of the traditional supply chain, such as the wholesaler and retailer Insurance Industry Implications Mass customization efforts within the propertycasualty insurance marketplace can be refined by utilizing new data sources and applying predictive analytics. This will improve accuracy in identifying and targeting the most appropriate potential stakeholders for specific types of policies, coverages and endorsements. When it s done right, customization drives loyalty. Mass customization will give agencies greater opportunity to specialize and set themselves apart from traditional sales and service agencies. In essence, each customer will become their own market, making them to more expressive about their needs and desires. The result will be greater demand for a company's products and services and less of a need to market on price. How should you and your agency respond? First, review your current customer base for potential impacts. What new products, marketing and services can you offer around mass customization? What s the most effective platform for doing so? Second, educate your staff about the opportunity for marketing and offering additional services. The concepts behind mass customization will eventually enable agents to move into a more effective advisory role. By customizing products and services, we combat the idea that certain products are commodities. Finally, understand that privacy issues may be one of the biggest challenges presented by mass customization. All participants must work to understand the impacts and ensure we coordinate cybersecurity education and preparations. The social landscape is changing and evolving. Like most technology-based change, mass customization cannot be evaluated or judged based on current standards. 6

8 Don t choose countless providers. Choose the one you can count on. In an industry where an empty promise can be commonplace, EMC has been a reliable and trusted partner to our agents for more than 100 years. As true professionals, we treat all our agents with respect while reacting to their needs and giving them superior service and products that set them up for long-term success. It s a relationship you can always count on. Copyright Employers Mutual Casualty Company All rights reserved. 7

9 Young Agent s Corner Ryan Karst, Chairman I am extremely excited to announce that we have finally done it! Between young agent committees from SD, ND, WY and NE we have finally put together a Midwest Young Agent Conference! Obviously you can tell we are extremely excited for this opportunity to allow young agents from 11 states in the Midwest to mingle and associate with their peers from surrounding states. On top of that, we have landed a great speaker to showcase during our learning sessions, Brandie Hinen. Young agent growth is the lifeblood of our industry and without investing in them we soon won t have any left. I have been to similar conferences on a national level and found myself wishing I was talking with more young agents from the Midwest that go through the same things I do from day to day and now we have made that a reality! At this point we are thinking we have enough interest to do group transportation form Sioux Falls to Omaha and back. This is an opportunity and any young agent will NOT want to miss and space is limited. Please mark your calendars and I can t wait to see you all there! To save your spot or request more information, Ryan Karst at rkarst@dakfs.com or contact the IIASD office at To see the full agenda, click here. Help your clients answer the tough questions Ask your client, What if you don t lose your life, but suffer from a serious medical condition? With life insurance and the Care4Life rider, you can offer your clients death benefit protection and an acceleration of the death benefit if the insured faces a serious medical situation, such as critical, chronic or terminal illness. Highlights of the Care4Life Rider: Simple qualification No spending restrictions No extra cost Policy retains a residual death benefit Call Financial Markets, Inc. today to learn more about the Care4Life Rider! The Ameritas Care4Life accelerated death benefit rider may not be available in all states and may vary in some states. Life insurance policies on which this rider is available are issued by Ameritas Life Insurance Corp. Financial Markets, Inc. does not solicit in the state of New York. AD For agent use only, not for use with clients. 8

10 DUES DEDUCTIBILITY: Dues are not deductible as a charitable contribution, but may be deductible as an ordinary and necessary business expense. The portion of the dues related to lobbying expense is NOT DEDUCTIBLE as on ordinary and necessary business expense. The non-deductible portion of dues for 2017 are as follows: IIABA 18.72% IIASD- 17.6% Dr. Matthew Bunkers, founder of Northern Plains Weather Services, is a certified consulting meteorologist (CCM) and forensic meteorologist. He can provide reports, depositions, and testimony in the areas of weather and forecasting, severe summer and winter storms, applied climatology and meteorology, and statistics. Matt currently works for the Rapid City, SD, National Weather Service, but he is allowed to provide CCM services separate from his full-time job. More information is provided at and you can contact Matt at nrnplnsweather@gmail.com or SERVICE-ORIENTED TRUSTWORTHY ONLY IN SOUTH DAKOTA MULTIPLE LINES COMMITMENT A MUTUAL COMPANY EXCELLENCE EXPERIENCE Serving South Dakota for over 100 years Contact Brady Peck Andy Kraus, CPCU Vice President of Agencies akraus@fmne.com 9

11 Independent Insurance Agents Every day, you as independent agents put on a rocking show for your clients. We are proud to give you a standing ovation! 10 10

12 Joins IIASD Partner Program Concorde is an independently-owned general agency located in Fargo, ND, currently writing with 1,800 independent agencies across 12+ states. Their four divisions include: Personal Lines, Admitted Commercial Programs, Commercial Excess & Surplus Lines, and Preferred Farm & Ranch. Personal Lines has remained the key focus since their start more than 35 years ago. Today, there are few specialty Personal Lines property or liability accounts Concorde s team cannot provide options for. Concorde s underwriters have become experts in a wide variety of programs, and the company has built partnerships with a solid group of specialty carriers not typically found under one roof. In fact, in today s trend of business consolidation, their program and carrier depth is often the differentiating factor that leads agents to choose Concorde. Another differentiator is customer experience. We still like to hear the account s story, said Kim Bentley, Concorde s Personal Lines Sales and Underwriting Manager. We have the automation available we connect agents to our own peterater and multiple company platforms but our team is also here to personally help agents navigate all of the options. Their team can address some of the most common pain points agencies face with both admitted and surplus lines companies including American Modern, American Reliable, Aegis, Great Lakes and Lloyd s. Whether looking to place a vacant home owned by an LLC, a landlord with more than 10 properties, an account with prior claims or unrepaired damage, or even a homeowner with a high-risk breed of dog, Concorde s underwriters are available to personally talk agents through different programs and options. Within our Dwelling and Mobile Home programs, there is so much that we can do. I m still surprised when agents tell me they didn t know we write, for example, Vacants, president Bob Hanna added. We write Vacants every day, and we usually have four or five options available. Concorde is continually looking for additional carriers and programs to add to their portfolio because a variety of strong partners makes responding to market and appetite changes easier. Many times, if an account is not eligible for one program, we can find an alternative option in-house, said Bentley. Our motto is, We ll Find a Way, and we do our best to live up to that, even if the option available may not be with Concorde. Concorde s peterater is also growing to include additional Concorde exclusive Commercial Programs, which are available to all Concorde contracted agents. In the last year, they ve launched admitted Artisan Contractor and Irrigation Systems Programs, which are fully written online. Their Commercial Excess & Surplus Lines and Preferred Farm & Ranch divisions are also available to agents specifically contracted for these lines. For details on Concorde s team, programs and carriers, visit them online at or call

13 Featured Platinum Partner A GGGGG TTTT. At North Star Mutual we specialize in more than just Farm, Home, Auto and Small Business insurance - we specialize in service. With our straightforward agency tools and accessible staff, it s easy to get things done. Thank you to our independent agency partners for your excellent long-term support. We look forward to our continued commitment of serving you and your policyholders for years to come. 12

14 Trusted Choice Brings Consumer Brand to CNBC Prime Time Trusted Choice is bringing the independent insurance consumer brand to CNBC with a sponsored content partnership. The new partnership will place the consumer brand on one of CNBC's hit television shows, Billion Dollar Buyer." Tillman Fertitta, billionaire restaurateur and host of the show, will endorse" Trusted Choice agents during the spring premiere, presenting three 30-second vignettes that will highlight the importance of: Equipment breakdown insurance Employment practices liability Use of personal property Trusted Choice content will air throughout CNBC's business day and primetime windows alongside Fertitta's popular show. The brand will also appear in digital placements on CNBC-Make It properties and CNBC affiliate properties like Conde Nast, and will receive mentions and promotion from Billion Dollar Buyer" social media handles. Trusted Choice also plans to promote and host content to Trusted Choice-owned and -operated web properties, including Trusted Choice social media channels, the Big I" website, state association websites and TrustedChoice. com. The campaign flight is scheduled to last nine months, beginning with Billion Dollar Buyer's" season premiere in January For more information about the Trusted Choice sponsored content partnership, contact Demarcus Johnson. Not a complex point of view. At UFG, we have a national footprint, but operate with the service-oriented personality of a hands-on regional carrier. Our people know your region, and are empowered to make decisions specific to your area. We know your space. It s that simple. Visit ufgsolutions.com or call

15 Use Promo Code to receive your 15% member discount 1st Dakota Insurance offers competitively priced Continuing Education and Exam Prep materials and courses for their members. Sandy Kost 1st Dakota Insurance School 2601 S Minnesota Ave Suite Sioux Falls, SD or sandy@1stdakins.com **Licensing Materials and Classes (for Property/Casualty and Life/Health Exam Preparation) **Continuing Education Classes **Online Courses and Webinars We are continuing to offer the materials you are familiar with. Be sure to check out their website at 14

16 Sioux Falls Home Insurance More Visibility Program For IIABA of South Dakota members Investing in boosting your marketing edge with online insurance prospects Partnering with TrustedChoice.com on the More Visibility Program is an investment in enhancing your digital footprint. The More Visibility Program drives more local online handshakes to our member agencies through geostrategic search engine optimization. Last year, the South Dakota More Visibility Program drove 116% more insurance shoppers to TrustedChoice.com. More online visibility leads to more opportunities to turn online clicks into clients. MVP boosts agency visibility As an MVP champion, partnering with TrustedChoice.com gives our members a digital edge. Higher ranking for our member pro les in search results means higher visibility with online buyers. 15

17 MVP targets local insurance buyers We partner with TrustedChoice.com to create and host unique insurance content that s targeted geographically to online insurance searchers and pairs high-intent prospects directly to an agency s online digital pro le. It s time to take full advantage of MVP To shine online and stand out to insurance buyers, it s time to update your TrustedChoice. com digital pro le. 1 2 Sign in to activate your account. Visit and sign in using your IIABA credentials. Update your pro le. Click Agency Pro le in the main menu. Then, click the Edit Agency Pro le button. Complete the information on each of the tabs and then press Save. PRO TIPS Use a person s photo for your pro le image. Agencies with pictures of people in their pro les convert higher than those that do not. Use a producer s phone number in the Public Phone Number eld. This is the number consumers will call to get in touch with you so you want to be sure they connect with a real person right away. By default, all lines of business are selected for you, so it s important to review and re ne your appetite lter settings. Removing the lines of business you don t serve ensures you get referrals for the lines you like to write. Need assistance? Call (855) to speak with a TrustedChoice.com representative. Copyright 2017 TrustedChoice.com. All rights reserved

18 INSURANCE FOR: Homeowners Farmowners Modular Homeowners Personal Auto Farm Property Dwelling Property Mobile Homes Excess Liability Farm and Personal Liability Classic Vehicle Semi-Truck CWG Fire/EMS PAK Announces Your New South Dakota State Directors! WEST of the river Dan Maguire and Levi Olivier Black Hills Insurance Agency, Inc EAST of the river Daschle Larsen and Taylor Jacobsen McKinneyOlson Insurance

19 Featured Platinum Partner ~ We get you. We understand what agents want and we re committed to giving you the tools you need to grow your agency. For more information, contact Corey Obermeier at obermc1@nationwide.com or Selleck Davis at davis12@nationwide.com. Nationwide is proud to sponsor Independent Insurance Agents of South Dakota. Not all Nationwide affiliated companies are mutual companies and not all Nationwide members are insured by a mutual company. Nationwide, Nationwide is On Your Side, and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. NPO-0550AO.1 (2015) 18

20 2018 IIASD s Schedule of Events January 23rd 24th Board Meeting & Leg. Open House Day at the Capital in Pierre February 7th 8th Farm & Small Town/Spring Crop Seminar in Chamberlain April 17th 21st Legislative Conference in Washington, D.C. Why American West Insurance? Local company with over 60 years agriculture insurance experience Quality products Competitive pricing Expert claims and underwriting services Be Protected. Be Sure. yourawi.com To learn more about AWI contact Kelly Sunde at ksunde@yourawi.com or call June 4th 7th E&O Seminars in Sioux Falls, Aberdeen, Pierre, Rapid City June 20th 22st River Days/Walleye Classic in Pierre Board Meeting Agribusiness Farm & Ranch Farm & Ranch Auto Personal Auto Excess Liability Watercraft Crop Hail Multi-Peril July 15th 16 Five-State Regional Young Agents Conf. Omaha, Nebraska August 22nd 25th IIABA Fall Leadership Conference Springfield, MA September 23rd 25th Annual Convention The Lodge in Deadwood WE STAND FOR you. And support the great work you do as agents in the agricultural community. By working with us, the nation s number one farm insurer, you can offer your customers one-of-a-kind protection from an experienced industry leader. Partner with America s top farm insurer today. SHERRY PACZOSA Regional Sales Manager paczoss@nationwide.com WS4U.com Source: 2013 Munich Re: Report. Based on premium and loss data. Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company. We Stand For You is a service mark of Nationwide Agribusiness Insurance Company Nationwide Mutual Insurance Company. Products underwritten by Nationwide Agribusiness Insurance Company, Farmland Mutual Insurance Company, Allied Property and Casualty Insurance Company and AMCO Insurance Company. Home Office: 1100 Locust Street Des Moines, IA. GPO-0187AO.1 (01/15) 19

21 Innovative, Not Conventional Niche Workers Compensation and Commercial Line Coverages for Main Street America Get started with an agency appointment application at amtrustappointments.com/sd2. A.M. BEST RATING OF A (EXCELLENT), FSC XV 20

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23 COMPREHENSIVE COVERAGE IS OUR MIDDLE NAME. Only Burns & Wilcox has the depth and breadth of experience to deliver the right solutions right away. burnsandwilcox.com Minneapolis, Minnesota Toll Free Fax Denver, Colorado Toll Free Fax Commercial Professional Personal Brokerage Binding Risk Management Services 14

24 FRAUD Convictions Hani Abujudeh used his auto-detailing shops in Rancho Cucamonga, California to bilk drivers and insurers out of more than $190,000 in a series of auto schemes. Abujudeh lured customers to his businesses by promising free paint jobs and other repairs. He then intentionally damaged those cars to inflate the repair claims. Some drivers were part of the scam, and some were unknowing. Investigators found 25 forged drivers licenses with Abujudeh s photo and IDs he stole from some victims. He used that info to conceal his identity from other victims in other schemes including same damage claims, title-washing, ID fraud, and money laundering. The California insurance department led the investigative team, assisted by the San Bernardino County DA s Auto Insurance Fraud Unit. Abujudeh handed cashiers checks ranging from $3,000 to $20,000 to about 20 victims onsite at his sentencing. He received six years in state prison. Convicted child molester Braulio Valenzuela has ducked in and out of jail for years. Now he is behind bars for setting up an elderly driver for a fake insurance collision. The Miami-Dade man told United Auto that 85-year-old motorist Loraine Hill backed her car into him while he strolled through a Walgreens parking lot. Surveillance footage showed Valenzuela cased Hill as she went into Walgreens. He loitered around her car, even looking into her windows as she prepared to back out. Hill then inched her car backward. Valenzuela theatrically acted as if she had struck him, tumbling to the pavement. The fall cost the insurer $14,000. Good luck prosecuting him, Valenzuela told investigators. He had avoided jail for varied crimes over the years. The elderly Hill stood firm on the witness stand. The court dropped 10 years in prison on Valenzuela. The retired fork-lift driver is a serial offender, getting probation for burglary and less than a year for rape. Molesting a little girl at a church landed him several years in prison. He finally got stopped. He finally had a victim who came forward to testify, a prosecutor said of Hill. She wasn t afraid. She didn t let Mr. Valenzuela victimize her. fraud charges A sinkhole scam is sinking, prosecutors say in the Tampa, Florida area. Owners Chuck and Mary-Grace Surrena received a $155,000 insurance check to stabilize their home after a sinkhole developed on the property. They sold the home without disclosing the problem to Victoria and Adam Cooper. The Surrenas never used the insurance money to stabilize the ground. Realtors for the Surrenas and the home buyer knew about the claim and the incomplete Seller s Disclosure Form and now the buyers are stuck. They only learned of the sinkhole after moving into the home. An insurer called to say the home could not be covered. The buyers believed they were insured at closing. They now fear the house might collapse yet the family of eight does not have the money to buy a new home until they sell the damaged property. The Surrenas, both real estate agents, and a mortgage broker are charged. Insurance fraud is among the charges. Contractor Brandon Wunder wrecked a home and walked away, leaving a couple struggling to make their home handicap-accessible, according to state prosecutors in Berks County, Pennsylvania. Wunder mostly destroyed the house without renovating it, cutting holes in the floor, and removing walls and plumbing. Homeowner Courtney Nieves says she fell through a space Wunder left open in the floor, getting cuts and bruises. She also was shocked and burned by a light switch that Wunder left bare, with live wires sticking out of the wall. The Nieves couple gave investigators copies of checks, invoices, contracts, and photos of work left undone. They also provided copies of more than $49,000 of insurance checks their agent issued to Wunder. The amount was split into two checks, with Wunder signing both. Investigators also obtained copies of checks Courtney wrote out for insured work and materials that were not bought, ordered, or installed. Wunder never refunded the $64,000 total he received. He is charged with insurance fraud and other offenses. 23

25 Jeff Jares, AIC AIM, President Christopher W. Madsen J.D. General Counsel Dan Eggers, Finance/HR/IT Adjusters Sioux Falls Don t let your clients get stuck in the penalty box. At Western National, our Personal Auto policyholders are never penalized with premium increases for tickets or accidents. That s our Penalty-Free Promise, and it s one we ve stood behind for over 50 years. For the lasting penalty protection your clients deserve, turn to Western. Penalty-Free means an individual s Personal Auto rates are never increased due to tickets or accidents. Initial and ongoing eligibility for coverage not guaranteed. Coverage not available in every state. Nancy Almendinger Cory Beck Blake Dykstra Dave Johnston Amy Kvernmo Wendi Peterson Dave Sendelbach John Keffeler Kelly Rud RN BA LNCC Deb Whipple RN BA CCM Adjusters Rapid City Case Managers Jennifer Andrisen Selzler Bill Blackman Kay Greve Collin Karsky Chad Moore Kimberly Rausch Tim Wieker Bruce Eleeson Jennifer Heinricy RN CCM Lori Schaefbauer RN BSN CCM We commit ourselves to providing the highest quality claims and case management services available in our industry. Please visit our website for complete information. 24

26 Welcome New Members: Insurance Solutions for Fire & Emergency Responders Gibson Insurance, LLC Wilmot, SD Agency Principle: Jordan Gibson Western Agency, Inc. Locations in: Minot, Aberdeen, Britton & Clark EXCLUSIVELY OFFERED IN SOUTH DAKOTA BY: Fischer Rounds & Associates, Inc. Shane Lehrkamp tel: cell: Agency Principle: Ryon Boen A Member of OneBeacon Insurance Group These policies may be underwritten by Atlantic Specialty Insurance Company or OBI National Insurance Company. Insurance Agent Wanted: Full-time job We have grown! We are seeking to add another Sales Person to our team! Excellent pay/commissions! Outstanding benefits! Do you want to work in a fun environment and make an amazing salary? Send in your resume or come by and meet us! Info to send resume to: stacey@herrmannagencies.com We can help. 24/7 FIRE & WATER restoration services Sioux FallS yankton INTEK ClEaNINg & REsToRaTIoN 25

27 Is your Sales Team Fat, Dumb, and Happy? By: John Chapin On a scale of 1 to 10, where 1 is not at all, and 10 is a perfect description, how does your sales organization rate according to the following definitions? Fat: Enough clients and business to sustain you for the short term coupled with no consistent effort at chasing new business. Everyone is simply living off of current accounts and otherwise killing time during the workweek Dumb: Mediocre to poor sales skills with no interest in developing good to great sales skills. No training initiatives for professional or personal development Happy: Comfortable because everyone can pay their bills and they re not missing any meals A 6 or higher on any one of these is a big problem. A 6 or higher on two of these is a major problem. And a 6 or higher on all three is an extremely urgent problem and a recipe for disaster. Sales organizations that have problems in the above areas usually also exhibit one or more of the following traits: Top producers are supporting bottom producers No accountability Allowing negativity and slackers in the workplace Very little or no actual sales training More than content with 1 to 3% organic growth in the largest economy ever created on planet Earth So how did your organization rate? If you have a problem, is it something you want to address, or are you happy with mediocrity and simple survival? Usually at this point I m hit with something like: We should improve BUT, one of the following excuses: It ll be too much work, I m wearing too many hats and I have no time, and/or My people won t change and I can t force them to. First, none of those are true. It doesn t take a Herculean effort or take a ton of time and your people will change if they see a benefit to changing. That said, step one is to make the decision. If you re considering staying poor or average, let me give you some food for thought. For starters, we all know it s better to be at the top, winning. Just ask any of the top sports teams or top organizations in any industry. You might also want to ask the ones at the bottom what it s like to lose. It sucks. But if you re fat, dumb, and happy you re already experiencing anywhere from a little to a lot of suck. Next, do you feel like you have an obligation and a duty to the organization you take money from? What about your obligation to the people affected by how well or badly your organization runs? If your organization is sub-standard, the client is being hurt. You also have the people who work at the company and their families. Finally, what about you and the people who are important to you? What are your hopes and dreams for the future? The college educations, the weddings, perhaps taking care of your parents, or being able to absorb a catastrophic health issue for you or a loved one? How about the dream home, the vacations, retirement, or maybe a lasting legacy that lives on long after you re gone? Mere survival doesn t allow any of those. Finally, is your time on Earth going to be defined as mediocre, and is that going to be your legacy once you re gone? Just some things to consider. If, on the other hand, you ve decided to change, here are three steps that can go a long way: Step 1) Set the vision and ask everyone for their help. Ask people what kind of organization they want to be part of. Highlight the fact that we spend more waking hours at work than at home and ask if it might be better to enjoy the process a little bit more. Ask if we (the whole team) have an obligation to clients, our families, and ourselves to do the best job possible and have the best lives possible. Ask what example we want to set for our kids and the other important people in our lives. We want our kids to give their best in school and other activities, should we be doing the same at work? I mean, if the job s worth doing, is it worth doing well, or do we want to be average? Do we want to be the New England Patriots, Pittsburgh Steelers (insert favorite, great team here), or the Cleveland Browns (or other losing team)? Let them choose to get on board and be part of, or not be part of, a new positive, growing organization. 26

28 Step 2) Set expectations and hold people accountable to those expectations. When you set the expectations, you have to let people know that sales is not a 9 to 5 job. If they re going to make it, it s going to take a ton of work, resilience, and persistence. Especially in the beginning they re going to need to learn the product, your procedures, and maybe even the industry if they re new to it. Depending upon their sales skills, they may also need to spend a lot of time developing those. You should have set those parameters in the beginning, but if you didn t, some veterans may have to get to work too. Also, in the new atmosphere, we re now going to hold people accountable to their quotas. You know who can sell and who can t. You ve known since the first week based upon attitude and motivation level. You re going to have to get tough here. If you d like, you can delegate this by hiring a great sales coach who can take on the responsibilities of training, monitoring results, and holding people accountable. The key here is to require the slackers to step up or step out. Step 3) Provide training, tools, and resources. Put the support people and systems in place and provide sales training. You want your producers spending their day on sales activities, not paperwork and administrative details. Also, when they are selling you want them as effective as possible. This is an upfront investment that will return tenfold and make you one of the top organizations around. The choice is yours. You know you need to change. If not now, when? The year 2000 was 18 years ago. Seems like yesterday. Tomorrow is Change before it s too late. It simply takes a commitment to raise your standards, reset expectations, and ask others to raise their game If for nothing else, for themselves and their families. To prove to themselves and others what they re capable of. To ensure that at their end of their lives, they re not on their deathbed with regrets, wondering what if, and neither are you. COMMUNITY LEADERSHIP EDUCATION Are you an insurance professional looking to advance your career? INsure your future. Join IAIP today. GoAllInWithIAIP.org Jennifer Christensen South Dakota Council Director jchristensen@holmesmurphy.com 27

29 Trump Administration Proposes New Health Care Rules The Trump Administration followed up on an October executive order by releasing a new proposed rule that would expand access to association health plans (AHPs). AHPs let small businesses and trade groups band together to purchase health insurance or self-insure. The intent of the new regulation is to provide more health insurance options at a lower cost. However, many organizations, including the Big I, have concerns about how expanding the use of AHPs will impact current health insurance markets and state insurance regulations. AHPs could be exempt from certain Affordable Care Act minimum coverage requirements, as well as from multistate regulatory oversight, which includes many important state insurance regulations and consumer protections. The Administration is expected to release additional regulatory proposals related to other aspects of health insurance addressed by the October Executive Order in the near future. The Big I intends to weigh in with the Administration and Congress throughout the rulemaking process. BY WYATT STEWART WHERE A HANDSHAKE IS STILL GOLDEN Building on the foundation of Midwestern values, where a handshake is still golden, we take great pride in being a local business and are proud to be the No. 1 writer of work comp in South Dakota. Risk Management Injury Prevention Cost Containment Claims Management

30 BE WORRY FREE WITH IMT We understand the importance of partnerships and take great pride in building strong, stable relationships with our agents and policyholders. Through experienced claims expertise and hightouch customer service, we are there when we are needed most. Learn how you can represent IMT Insurance & Wadena Insurance at imtins.com/contact_us. Who has been insuring businesses for over Our customers include: imtins.com west des moines, iowa Wholesale Distributors Small Business Owners Light Manufacturers The companies of Continental Western Group Your leader in commercial insurance, safety and experience. CWG is Strong, Local & Trusted. Agribusinesses Bulk Petroleum Companies Contractors Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Continental Western Group is not liable for any loss resulting from use of information in this advertisement. Copyright 2016 Continental Western Group. All rights reserved. 1688CWG-AD

31 Count on Financial Markets, Inc. TO MAKE LIFE EASY We Understand Property & Casualty Agents We understand the challenges and opportunities that are part of the P&C s agent s everyday world. Financial Markets, Inc. exists to add value to your agency by providing critically important protection products for your clients. Providing life insurance to your clients will increase your account revenue while building stronger relationships and improving retention. LIFE INSURANCE = INCREASED REVENUE Have 500 clients? If you sold life insurance to just one in twenty-five of them this year, you would add nearly $12,000 in revenue to your agency. MORE LINES OF COVERAGE = IMPROVED RETENTION PERCENTAGE OF HOUSEHOLDS RETAINED BY POLICY YEAR & LINE OF BUSINESS Policy Year Auto Only Two Lines Three or Four Lines % 44% 35% 31% 70% 53% 45% 41% 83% 75% 71% 69% Cross-selling Life Insurance to Property-Casualty Customers, InfoFocus from LIMRA International, Inc. Contact us today to turn that Suspect into a Prospect! Financial Markets, Inc. Phone: Fax: Edward.Bartling@fmiAgent.com 30

32 Extortion by computer is growing... about 400% per year Cyber criminals can lock computerized operations and hold the business and customer private information hostage, demanding a ransom to unlock them. Would you know how to keep your insurance agency s information safe -- and your customers -- if confronted with a cyber extortion demand? IIASD and Arlington/Roe have partnered to offer Cyber Secure. It is offered at a reduced rate to our members and includes coverages such as: Cyber Extortion Loss Sublimit Business Interruption Coverage Forensic Expenses to Investigate the Breach/Ransomware Event This member benefit is brought to you by IIASD and administered by Arlington/Roe. Member agencies, call us for cyber coverage today. Contact Name: Megan Linn Title: E&O Administrator Phone: (605) mlinn@iiasd.org Contact Name:John Immordino Title:E&O Risk Consultant Phone: jimmordino@arlingtonroe.com 31

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34 FARM & SMALL TOWN AGENTS CONFERENCE CEDAR SHORES RESORT- OACOMA/CHAMBERLAIN February 7-8, Seminars Offering Continuing Education Credits Call Cedar Shores at Ask for IIASD Room Rate of $89.95 Registration Spring Crop Crop & Ag Update Assigned Risk Workers Comp 3 hrs P&C CE Cyber Security Training 3 hrs Gen CE pending Fun & Fellowship Banquet Breakfast Sales/Motivation Cyber Security Training 3 hrs Gen CE pending Luncheon WEDNESDAY FEBRUARY 7 (PLEASE CIRCLE CLASSES YOU ARE ATTENDING) 12:00 p.m. 1:30 p.m. 1:30 p.m. 4:30 p.m. Farm Bill Negotiations: Lynn Tjeerdsma, Sr. Ag Advisor to Senator Thune Ag in South Dakota: Mike Jaspers Secretary- SD Dept. of Ag & Randy Buchholz Livestock Revenue Protection 1:30 p.m. 4:30 p.m. Assigned Risk Worker s Comp: Bill Malphurs, Technology Insurance Company-SD Assigned Risk Carrier & Carla Townsend, NCCI 1:30 4:30 p.m. Cyber Security Training: Dan Friedrich Director of Internet Technology Dakota State University 5:00 p.m. 7:00 p.m. Hospitality Room 7:00 p.m. THURSDAY FEBRUARY 8 7:30 a.m. 8:30 a.m. Breakfast Buffet 8:30 a.m. 11:30 a.m. ABC s of Selling & 4 P s of Storytelling- Ed Bartling, Financial Markets, Inc. 8:30 a.m. 11:30 a.m. Cyber Security Training: Dan Friedrich, Director of Internet Technology Dakota State University 11:30 a.m. Noon Luncheon Payment must be sent with this form. (Checks payable to IIASD) or register at Payment: Check Enclosed; or VISA MasterCard American Express Card No. Card Veri cation No. Exp. Date Billing Address Cardholder Name Signature Independent Insurance Agents of South Dakota, 305 Island Drive Fort Pierre, SD Phone ; Fax FARM & SMALL TOWN AGENTS CONFERENCE NAME/NAMES: AGENCY/CO (if any): PHONE # ADDRESS: CITY & ZIP: Choose one of the following: $75 IIASD Member/Company Full Registration $50 Crop Seminar Only $150 Non-member Full Registration $50 Crop Seminar with Banquet

35 POWER IN PARTNERS DIAMOND Risk Administration Services PLATINUM Farmers Mutual of Nebraska Financial Markets Inc. Graber & Associates Great Plains Brokerage Nationwide Mutual Insurance Co. North Star Mutual Insurance Co. QBE NAU United Fire Group GOLD Acuity CGB Diversified Services, Inc. Columbia Insurance Group Continental Western Group Dakota Claims Service Doss & Associates EMC Insurance Co. Farmers Mutual Hail of Iowa Great American Insurance Co. Intek Cleaning and Restoration Le Mars Insurance Co. Liberty Mutual Insurance Midwest Family Mutual Pro Ag Rain & Hail, LLC SFM Mutual Insurance Co. The IMT Group Western National Insurance SILVER Accident Fund Ins Co. of America American West Insurance AmTrust Agriculture Insurance Services AmTrust Financial ArmTech Insurance Services Auto-Owners Insurance Concorde Generaal Agency Farmers Alliance Mutual Missouri Valley Mutual Insurance Co. North American Software Associates Northwest GF Mutual Insurance Progressive Insurance Co. Rainbow International Restoration Services Risk Placement Services Rural Community Insurance Services SafeCo Swiss Re State Auto Insurance Co. BRONZE Bjornson/Sentinel E & L Grinnell Mutual Reinsurance Co. January 2018