INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA. February Day at the Capitol

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1 INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA February Day at the Capitol

2 Message from IIASD s District 3 Director Do you ever wonder why people choose insurance as their occupation? Is it a calling or a recognized opportunity that draws them into the industry? When I entered the insurance agency world over 34 years ago, I confess that my knowledge of insurance was extremely limited. The truth is that economic necessity coincided with an opening for part-time job in the office of an independent insurance agent. My responsibilities consisted of the standard clerical day-to-day activities such as filing, writing letters, making copies and answering the phone. The two driving forces that led me into that position were its proximity to home and the paycheck that I would receive every two weeks. Little did I know at the time that accepting that job would lead to a rewarding lifelong career and eventual ownership of my own independent insurance agency. Watching the day-to-day activities in that first agency swiftly helped me recognize and fully appreciate how important insurance was in the lives of our customers, and I soon began studying for my agent s licenses. Raised as part of a farm family and being married to a farmer, I was particularly drawn to crop insurance and the financial safety net provided by that product. Many of us remember well the 1980s and 1990s where low prices due to embargos, loss of crop and inability to plant due to wet weather conditions, escalating interest rates, and declining equipment and land prices caused farmers, businesses and lenders to fail for reasons that were far beyond their control. These periods wreaked havoc on our communities and many families were forced out of business and out of the area as a result of the damage to the farming economy. The severe drought of 2012 could have been another devastating year for our farmers, communities, suppliers, lending institutions, and country had it not been for the billions of dollars that poured back into the farming economy from crop insurance. Continuous improvements in the crop insurance program ensured that the farming industry, plus the nation s economy, could remain strong. Through the advocacy and education provided by agents, farmers, insurance companies, farm and business organizations, legislators and others, a financial safety net had been strengthened and had proven its ability to hold fast during what could otherwise have been a disastrous event. Over the years, I have felt the satisfaction of assisting customers recover financially when their homes, businesses and lives have suffered losses. Working with our customers during these times has strengthened my commitment to do my very best to help them with their insurance decisions, questions and claims. Consumers continue to have a need for trusted advisors, such as independent agents, who can offer options and explain coverage. Customers do not buy insurance. They buy peace of mind. My career as an insurance agent may have happened by chance, but it was definitely one of best, life-changing decisions I ever made. It has given me the opportunity to be involved in an industry filled with caring professionals who understand the impact they have on their communities. What began as a job has become a passion. There is a moral to my story. Young people entering the job market today can and should be exploring careers in the insurance industry. The insurance profession offers flexibility, portability, financial reward, as well as great opportunities. A career in the insurance industry can result in a lifetime of success that is not only measured in dollars and cents, but by something much deeper, richer and rewarding--the ability to look back and see the positive impact you were able to make on the lives of people and communities. Melanie L. Parsons, President Parsons Insurance Agency, Inc. Viborg, South Dakota 1

3 INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA PRESIDENT Derrick Linn Leavitt Heartland Ins. Services Sturgis, SD VICE PRESIDENT Deana Taylor Agents of Insurance Rapid City, SD PAST PRESIDENT Jesse Konold Key Insurance Inc. Mobridge, 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 2019 OFFICERS 2019 DIRECTORS PRESIDENT-ELECT John Meyen Rosholt Insurance Agency Rosholt, 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 Eric Payne Insurance Plus Aberdeen, 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 In 2018, IIASD was supported by over 50 company and industry partners that continue to invest in the future of the independent insurance agency system. We not only have carriers but many supporting industry partners such as brokers, general agencies, claims services, cleaning and restoration services, agency management systems and premium financing. Each and every one of these industry partners plays a very important role in the success of our members and our industry. Insurance impacts our economy and every aspect of our lives. Agents need markets and services to support their commitment to their clients. I have seen firsthand how the Industry Partners program has benefited companies and our members through networking opportunities, increased brand recognition and developing relationships. Partner s dollars allow us to offer educational opportunities, advertising and brand recognition as well as recruitment and support of young agents the future of our industry. IIASD began the Partner Program in 2011 as a replacement for soliciting donations for each and every event. We had a total of 24 Partners the first year. Development of the program has caused us to be more aware of our obligation to the partners and look for ways we can cooperate in adding value to both members and partners. Partner s financial support is not the only benefit to the Association. Our IIASD Partners share suggestions and feedback to help us do a better job with our events and resources. As we work on the 2019 Partner program, I would ask each of you to reach out to our current partners and say thank you for their support. If you have carriers or industry support services you work with that are not participating in the IIASD Partner program, visit with them about the benefits and reach out to me at chofer@iiasd.org. Working together benefits us all. 3

5 E&O EDGE Megan Linn, E&O Administrator A Year in Review: Keeping an Eye on the Past to Avoid Future Mistakes By Matthew Davis In an era when technology is changing at a dizzying pace, rendering this morning's technology obsolete by this afternoon, it may seem counterintuitive to dwell on the past. Think again. As 19th century writer and philosopher George Santayana famously declared, "Those who cannot remember the past are condemned to repeat it." No argument here. Insurance underwriters and claim managers share the conviction that the surest way to predict and alter -- the future is to study the past. To that end, let's take a look at the most recent year of errors & omissions as a way of avoiding this year's claims. Process Step When it comes to studying where in the process errors occurred in 2018, there is good news and bad news.the good: 'recommendation errors' have been on the wane for several years -- not going away by any stretch, but they have declined (as a percentage of all claims). The bad: they have been replaced by 'application errors' and 'policy change errors,' the latter of which have gone up as much as 'recommendation errors' have gone down. Failure to comply with underwriting guidelines, add additional insureds and/or duplicate prior coverage are all noteworthy 'application loss drivers,' yet roughly one third of all application errors last year involved 'inaccurate or incomplete information being provided to the carrier'. Given that the application should be based on information provided by your customer, that percentage should seem high. In fairness, though, the problem we see is not so much a mistake by the agent in completing an application (although that does happen) as it is an inability to persuade a court that the misrepresentation in question originated with the customer. The solution: be sure you can prove who supplied the information communicated to the carrier even if it s done electronically. If your customer does not see, much less sign, the application, plan on losing that fight more often than not. Claims involving CGL, Commercial Property, Auto and Homeowners policies continued to dominate the E&O landscape in 2018, as they have for a number of years. Policy change errors, on the other hand, tend to be the result of inadequate (or no) follow up by the agency once a change is requested. The sale already has been made and the commission check cashed, so perhaps there is a lessened sense of urgency to fulfilling these requests. Judging by the rise in such claims last year, that relaxed attitude is as unwise as it is costly.the solution: no matter how clerical or insignificant it may seem at the time, treat every customer request as essential to keeping the business. All too often, it is. Coverage Type Though they do not present the same 'severity' (resolution cost) as the other two coverage types, Auto and Homeowners claims continued to rise in 2018 as they did the prior year as a percentage of all claims. In all four categories, the most common error consisted of a 'failure to procure the coverage requested,' but after that the story diverges somewhat. In the case of Homeowners policies, the next most numerous errors were 'failure to duplicate prior coverage' and 'inaccurate information to the carrier.' For Auto policies, it was 'inaccurate information to the carrier' and 'failure to add an additional insured/ loss payee.' For CGL policies: 'failure to recommend a coverage type' and 'failure to add an additional insured/loss payee.' And for Commercial Property: 'failure to recommend a coverage type' and 'inaccurate information provided to the carrier.' The lesson to be learned here is that E&O claims, like insurance policies, are not all the same when it comes to loss drivers. They have similarities, but also differ significantly, requiring a risk management approach tailored to that particular line of business. Claimant Type It will come as no surprise that the great majority of claims are pursued by agency customers: 90% on average over the past several years was no exception as roughly 7% of all claims last year were brought by carriers and other third parties, e.g., additional loss payees who got left off of a policy or recipients of an erroneous Certificate of Insurance. Those are not remote odds. Consequently, 2019 should begin with an awareness that simply because the other persons and entities you deal with in a professional setting are not your client does not mean they cannot become your plaintiff. 4

6 5 Error Type Agency errors (and omissions) come in many forms that are relatively consistent from year-to-year, but we do see some fluctuations saw some modest overall declines in the percentage of claims resulting from 'inaccurate or incomplete information being provided to the carrier' and 'failure to recommend a coverage type,' which made up 20% of all claims the year before. Filling the gap left by those improvements were claims arising from failure to adequately explain policy provisions and failure to communicate the insurer s requirements to the customer. Those adverse developments are of interest because of the apparent similarity between them: the carrier s expectations are not being conveyed to the customer. In contrast to some of the loss drivers discussed above, here we tend to see policy provisions that are significant to a particular customer, e.g., no torch-down roofing or no vacancy not being brought to the customer s attention. In other words, the agency s error is substantive rather than a simple failure of documentation. That can be a problem even in an order taker state if you have taken on the burden of managing those communications thru a special relationship or agency agreement. It s true that no two agencies are the same, but that doesn t mean the errors discussed above can t happen to you. Consider Mark Twain s pithy observation: History doesn t repeat itself but it often rhymes. Be careful out there. If you re not mindful of your colleagues past mistakes, you may soon be singing the same, sad tune that led them to their E&O carrier s door. Matthew Davis is a vice president and claims manager at Swiss Re Corporate Solutions. Insurance products underwritten by Westport Insurance Corporation, Kansas City, Missouri, a member of Swiss Re Corporate Solutions. Contact Info: Megan Linn E&O Administrator mlinn@iiasd.org Phone: (605) Fax: (605) Division of Insurance News and Views 2019 Legislative Session Underway South Dakota s 94th Legislative Session began at Noon on Jan. 8 and ends March 29. This 40-day session not only brings many newly elected legislators into the process, but also a newly established State Administration. Governor Kristi Noem was sworn in on Jan. 5. The South Dakota Division of Insurance requested the introduction of one bill. Senate Bill (SB) 37 is an act to revise certain provisions regarding association health plans. This legislation adjusts state insurance statutes regarding group insurance participation. SB 37 seeks to align South Dakota law with recent changes at the federal level regarding association health plans. This could encourage potential growth in health insurance options, but still maintains established consumer protections. SB 37 has successfully passed through both houses with no dissenting votes and was delivered to the Governor for possible signature on Feb. 12. Over 500 bills, resolutions and commemorations have been filed this session. Interested parties can follow the daily action of the South Dakota Legislature via the Legislative Research Council website at Division of Insurance Contact Information: Larry Deiter, Director South Dakota Division of Insurance 124 S. Euclid Ave. 2nd Floor Pierre, SD Phone: Fax:

7 Kayla s Advice 6 Tech Tools for Improving Efficiency and the Customer Experience BY: WILLIAM JONES Most insurance agencies must compete against milliondollar marketing machines with million-dollar brands that are utilizing cutting-edge technology platforms. As technology continues to change at lightning speed, small business owners may find it overwhelming to analyze and compare the many technology options that could help them compete. Our contemporary need for instant gratification forces every customer service-related industry to ramp up efficiency to work through tasks as quickly as possible and create a noteworthy customer experience. That means breaking down processes and evaluating technology systems is imperative in catapulting an agency to success. Here are six tech areas to consider when looking internally at your agency s operations: 1) Management system. There are dozens of agency management systems to choose from, and they all vary in price and services. When selecting a management system, look for a few key components: Reporting on retention, new business, open tasks, sales initiatives Task assignment for documenting, tracking and measuring follow-up and task completion Data input for adding notes to files, such as drop and drag and attaching s, phone conversations and text messages Client profile customization for building a client profile to nurture rapport and long-term relationships with clients Commitment to moving forward with advancements in technology 2) Phone system. Phones aren t just a way to communicate anymore. Technology enables agencies to record phone conversations to use for training, coaching and mentoring. A phone system that can record and include multiple personnel can help coach your team to the next level just be sure to check your state laws on recording calls and notifying the other party. Many phone systems even include an internal chat system that helps set a professional tone in the office. Chatting internally allows for instant results and immediate execution on a plan because it forgoes any post-call followup with a team leader. 3) Sales cycle. Programs such as Calendly can create custom links for scheduling appointments easily eliminating time-consuming back and forth increasing the likelihood that the meeting will actually happen because it gives the prospect the opportunity to set the time. Moving through the sales cycle, leveraging technology can lay a solid groundwork for strong communication. Texting platforms such as zipwhip allow you to text through your agency s landline, while programs like loom enable you to present a proposal by sharing your screen with a prospect. Once the policy is sold, seal the deal easily and effectively with e-signature programs such as DocuSign and RightSignature, which allow the client to digitally and instantly sign the contract from their phone, or computer. 4) Automation. The key is to work smarter, not harder. Agencies can collect data from technology, such as website traffic, to better understand our clients and how to maximize marketing dollars. Agencies can also use automation to send drip marketing campaigns, payment reminders and surveys for clients to rate their customer experience. 5) Social media targeting. Creating a positive customer experience includes predicting what the customer needs before they even know it. Targeted marketing can precisely pinpoint clients for specific products based on the interests they reveal through their social media accounts. These communications need to be educational and include a call to action to move the prospect forward in the process. 6) Mobile office. The most underutilized technology is the smartphone, which gives you 24/7 access to clients. From scheduling and s to agency management apps and carrier apps, the cell phone is a portable office for all insurance agents. In addition, some cellular carriers allow you to install a separate app to that creates a work line that is separate from your personal number perfect for those who don t want to carry two phones around. Technology is changing at a rapid pace, and faster than most can embrace all at once. Your challenge: Tackle at least one new tech concept or program each month to boost efficiencies, client retention and organic growth this year and beyond. 6

8 Count on us to be there, there... A strength that sets EMC apart from other insurance companies is the local service we provide. We cover policyholders in more than 40 states and we have 20 offices strategically located around the country. So when you partner with us, you not only get the stability of one of the country s top insurance organizations, but you also get a familiar face close to home. We look forward to seeing you soon. Copyright Employers Mutual Casualty Company All rights reserved. 77

9 Job Opening Insurance Instructors Southeast Technical Institute Instructors needed for: Intro to Claims and Underwriting Property and Casualty Insurance Sales Agency Management Online non-synchronous courses where instructor facilitates and interacts with students via and discussion boards, evaluates learning outcome with tests, papers and projects. Job Requirements: Master s Degree in Business or Accounting field or Bachelor s with 3 years work experience. Insurance license required. Contact: Benjamin Valdez, Academic Affairs Benjamin.valdez@southeasttech.edu to apply or for more information Life Insurance as an asset Even though life insurance is often not regarded as an investment that fits within a stylebox representation of a client s asset allocation, it can still help round out their overall portfolio. Clients want security and guarantees while not giving up growth potential, and life insurance offers the potential for guaranteed growth and protection regardless of market performance. As you look at your client s asset mix, on top of providing valuable death benefit, life insurance can help protect their overall portfolio, while also helping address other financial concerns. Call Financial Markets, Inc. today to learn more at Opt 2 Life insurance is provided by Ameritas Life Insurance Corp. and may not be available in all states and may vary in some states. Financial Markets, Inc. does not solicit in the state of New York. Financial Markets, Inc. is not an affiliate of Ameritas or any of its affiliates. AD For agent use only, not for use with clients. 8

10 Be Here. Be Great. Great American is currently seeking Seasonal Part-Time Crop Adjusters. Qualified candidates will cover territory in one of the following states: South Dakota Territory Great American Insurance is searching for organized individuals with excellent customer service and communication skills. Job entails inspecting fields, appraising for yield potential, measuring bins and gathering information to determine settlement. Responsibilities Investigates and maintains claims: oreviews and evaluates coverage and / or liability. osecures and analyzes necessary information (i.e., reports, policies, appraisals, releases, statements, records or other documents) in the investigation of claims. Ensures that claims payments are issued in a timely and accurate manner. Ensures that claims handling is conducted in compliance with applicable statues, regulations and other legal requirements, and that all applicable company procedures and policies are followed. Conveys simple to moderately complex information (coverage, decision, outcomes, etc.) to all appropriate parties, maintaining a professional demeanor in all situations. Performs other duties as assigned. Send Resumes to cnesmeier@gaig.com or call ext:63222 Career Opportunities for Insurance Agent Insurance Customer Service Agent Dacotah Insurance is seeking Insurance Agents and Insurance Customer Service Agents. We offer an excellent benefits package and competitive salary within an outstanding work environment. Insurance Agent: This position pursues and closes sales with clients personal, commercial, and farm insurance. The successful individual will currently hold licenses in property casualty and life and health. This individual will be a self-starter with superb customer service and communication skills. Locations: Aberdeen, SD; Webster, SD; Dickinson, ND; Morris, MN Insurance Customer Service Agent: This position will provide excellent customer service while assisting clients with their personal, commercial, and farm insurance. The successful individual will currently hold licenses in property and casualty or willing to obtain within 90 days. This individual will be a team player with superb organization and communication skills. Locations: Aberdeen, SD; Webster, SD Apply online: Equal Opportunity Employer of women, minorities, protected veterans and individuals with disabilities. Customer oriented -- a step above Personal and Commercial Automobile, Farmowners/Ranchowners, Umbrella Liablity, Personal and General Liability, Homeowner/Mobilehomeowner, and Fire and Allied Lines Serving South Dakota for over 100 years Contact Brady Peck Andy Kraus, CPCU Vice President of Agencies akraus@fmne.com fmne.com 9

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12 Andy Kraus, CPCU Vice President of Agencies

13 1st Dakota Insurance offers competitively priced Continuing Education and Exam Prep materials and courses for their members. **Licensing Materials and Classes (for Property/Casualty and Life/Health Exam Preparation) Exam Prep Teaching Also Available by Appointment Use Promo Code to receive your 15% member discount on the website colinsgrp.com Career Opportunity for Insurance Customer Service Agent Dacotah Insurance in Aberdeen, SD, Webster, SD, and Sioux Falls, SD are hiring Insurance Customer Service Agents. This position assists clients with their personal, commercial, and farm insurance. The successful individual will currently hold licenses in property and casualty. This individual will be a team player with superb customer service and communication skills. We offer an excellent benefits package and competitive salary within an outstanding work environment. Apply online: Equal Opportunity Employer of women, minorities, protected veterans and individuals with disabilities. 12

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15 Strength and stability, powered by Nationwide. Nationwide is a Fortune 100 company 1, rated A+ by both A.M. Best and S&P Global Ratings. And no other insurance and financial services company has the breadth and depth of solutions and services that Nationwide does. your growing business. We are a top insurance provider. Commercial Lines: Farm & Ranch, Small Business & Middle Market Personal Lines: Auto, Homeowners, Life #1 #1 #7 total small business insurer 2 insurer commercial Specialty Insurance, Employee Benefits, Financial Services #8 property nationwide.com 1 Based on revenue, Fortune (June 2016). 2 Conning, Conning Strategic Study: The Small Business Sector for Property-Casualty Insurance: Market Shift Coming. 3 By direct written premium, A.M. Best (2016). review, and approval. Products and discounts not available to all persons in all states. Nationwide, the Nationwide N and Eagle, and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company Nationwide CPO-1106AO (12/17) 14

16 Start a Career! Presho, SD BankWest, a family-owned business with a 129-year history, is seeking new people to join its financial services team. While each position requires a unique skill set, every member of our team shares a passion for customer service and a sincere interest in seeing our customers succeed. We are recognized as a market leader in customer care, community reinvestment and depth of services. Insurance Agent in Presho: BankWest Insurance is growing and is looking for an Insurance Agent to prospect, service and generate sales resulting in the achievement of the defined productions and profitability goals. If you re seeking a fulfilling career with a winning team, see a full job description and apply at www. bankwest-sd.bank, contact your local Career Center, or call BankWest at (800) All new employees must pass pre-employment screening. AA/EEO Employer, including protected veterans and disability. 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 Agribusiness Farm & Ranch Farm & Ranch Auto Personal Auto Excess Liability Watercraft Crop Hail Multi-Peril 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) 15

17 DISCOVER WHAT WE COVER. BOP Property We provide Cyber Liability Workers Comp more than General Liability Commercial Auto Employment Practices Liability Insurance Inland Marine Commercial Package monoline coverage. Get to know AmTrust. Discover what we cover at d35.amtrustinsurance.com AmTrust is AmTrust Financial Services, Inc., located at 59 Maiden Lane, New York, NY Coverages are provided by its property and casualty insurance company affiliates. In TX, coverage is provided by AmTrust Insurance Company of Kansas, Inc.; AmTrust International Underwriters Designated Activity Company; Associated Industries Insurance Company, Inc.; First Nonprofit Insurance Company; Milford Casualty Insurance Company; Republic Underwriters Insurance Company; Republic-Vanguard Insurance Company; Security National Insurance Company; Southern County Mutual Insurance Company; Southern Insurance Company; Technology Insurance Company, Inc.; or Wesco Insurance Company. In WA, coverage is provided by AmTrust Insurance Company of Kansas, Inc.; AmTrust International Underwriters Designated Activity Company; Associated Industries Insurance Company, Inc.; Developers Surety and Indemnity Company; Milford Casualty Insurance Company; Security National Insurance Company; or Wesco Insurance Company. Consult the applicable policy for specific terms, conditions, limits and exclusions to coverage. 16

18 News from the Front Lines: Insurance War Stories That Make You Go, What? By: Chris Boggs What an industry we chose! We get to see the good, the bad, the ugly, the stupid, and the utterly ridiculous. This is the stuff of legend and it reminds us why we must pay attention. Following are some real-life war stories from insurance professionals from around the country. There is a lot that can be learned from the weird reality in which we live. Names have been changed or left out completely to protect the innocent. It Was Caused by a Pollutant; Therefore, it is Excluded My client was a large utility contractor. They installed and repaired underground piping for municipalities and utility companies. A crew was repairing piping at a water treatment plant when the pipe on which they were working burst. Unfortunately, the pipe ran through the computer room of this utility company. As you might imagine, what was in the pipe spewed from the pipe and destroyed the computers. I hesitate to say what was in the pipe, but remember, it was a water treatment plant. Let's just say is was effluent-filled water. We turned the claim into the CGL carrier and guess what, they denied the claim saying that the effluent-filed water met the definition of a pollutant and thus there was no coverage. I said, What a crock of effluent-filled water" and I pointed out their error. ISO's absolute" pollution exclusion applies to, (1) 'Bodily injury' or 'property damage' arising out of." The key phrase is arising out of " which requires proximate cause, not just the presence of a pollutant. I called the claims adjuster and asked, Do you think the same damage would have been caused by absolutely pure and clean water?" He said, Yes." To which I responded, Then the damage did not arise from the release of a pollutant, correct? It arose from the fact a liquid substance that happened to contain something you might consider a pollutant was released." The adjuster had to agree and pay the claim. Moral: Understand how policy language applies and question the adjuster for improper denials. I Don t Want to Pay to Insure the Full Amount! One of my wealthy insureds bought a new $275,000 boat (Cabin Cruiser/Yacht). Time goes by and the boat gets stolen. The thieves take the boat down the Mississippi River to the Gulf of Mexico and out into the ocean; we literally had video of them taking the boat through each lock/dam on the river. I get a call from the claims adjuster telling me the boat is insured for $275,000 and its currently worth $425,000. I can't believe it! I call the insured and he says he bought the boat for $500,000 but didn't want to pay premium on that amount so he asked for $275,000; I never figured I would lose the entire boat." The carrier wrote the insured a check for the policy limit - $275,000. The insured suffered a $150,000 uninsured loss. He used the $275,000 to buy a $100,000 boat which he insured for liability only because rates for physical damage were high due to his recent loss. Moral: Don't be afraid to research and ask questions there is no such thing as too many questions. The Application: More Than Something that Simply Must be Completed (It's Good to Look at Them) The owner of a condominium project hired a framing contractor for a multi building project. The framing contractor hired a sub-subcontractor for the window installation. They were able to get a really good deal on the windows; but because the windows had no flashing fins, they leaked and everyone filed suit. Although the framer's supplemental application - completed by the framer himself - clearly stated that 60 percent of his work involved condos and townhomes, the framing subcontractor's policy contained an exclusion for any work involving condos, multi-family townhomes, or co-ops. Evidently, the agent didn't spot the problem. 17

19 The expertise you need will come from many sources. When you have the power to put it together in the perfect combination, anything is possible. that s where we can help Burns & Wilcox. All rights reserved. burnsandwilcox.com 14 18

20 Article Continued from Page 17 But the good news was the agent issued a certificate of insurance (COI) for the project his E&O carrier paid policy limits and the agent added $500,000 from his own resources. Moral: You might want to check the application and compare it to the policy. In fact, you may want to check the policy, period. Moral: Never take coverage work comp coverage away; but if you do, make sure the policy that is expected to pick up the cost actually will. Just Because You Can Doesn't Mean You Should Two individuals retired to start a business that ultimately became very successful. Since they were fully vested in their former employer's benefit plan, both individuals remained on the retirement health insurance program. In order to save approximately $1,000 a year, the two men made a decision to remove themselves, as members/managers of the LLC, from their company workers' compensation coverage. While on a business trip both owners were involved in a tragic accident resulting in more than $1 million in medical bills. Their former employer's health plan excluded medical expenses arising out of workrelated injuries; and because coverage under their own company's workers' compensation had been endorsed removing them from coverage, these expenses had to be paid out of pocket. Western Dakota Job Openings: Insurance Producers (Full-Time) Western Dakota Insurors, is actively seeking sales producers for property and casualty, employee benefits and life insurance. The perfect candidate will possess a talent for working with people, seeking out new leads and new clients, enjoys sales, and has an established history of sales success. Benefits for qualified candidates include Producer equity in business produced and a deferred compensation package, 401k plan, paid vacation, dental, health, vision, and life insurance. Trips, Travel & Expenses, and Continuing Education paid. Life & Health Customer Service Representative (Full-Time) We are seeking an energetic, strong team player with excellent verbal and written communicationskills. Someone who is actionoriented, persistent, and delivers high quality results, while working independently with some direction.the Life and Health Customer service Representative, someone who works with a sales producer in all aspects of the renewal and new business process, including but not limited to: data entry, rating, review of quotes and preparing proposals. A life and health license will be required. Benefits Producer (Full-Time) Western Dakota Insurors is hiring for a Benefits Producer. As a Benefits Producer with Western Dakota Insurors, you will work closely within your community to build customer relationships and promote Insurance products. The Benefits Producer will be responsible for selling health, life, disability, and other benefit insurance products to businesses and individuals. The ideal candidates will have sales experience within a commercial team and hold a valid Life and Health license. If you believe you have what it takes please apply today! Account Manager (Full Time) We are seeking an energetic, strong team player with excellent verbal and written communication skills. The Account Manager is someone who works with a sales producer in all aspects of the renewal and new business process, including but not limited to: data entry, rating, review of quotes and preparing proposals. A Property & Casualty license is preferred. Administrative & Accounting Assistant (Part-Time) Are you looking for a part-time position with both accounting and administrative duties? Western Dakota Insurors is an independent insurance agency looking for a detail minded individual to do a variety of duties including accounts receivable, accounts payable, front desk receptionist and other miscellaneous duties. Hours are flexible. How To Apply: info@wdiins.com 19

21 Jeff Jares, AIC AIM, President Christopher W. Madsen, J.D., General Counsel Dan Eggers, Finance/HR/IT Adjusters Sioux Falls Nancy Almendinger Cory Beck Blake Dykstra Joe Jares Collin Karsky Alex Mentele Wendi Peterson Dave Sendelbach Jennifer Andrisen Selzler Bill Blackman Kay Greve Dave Johnston Amy Kvernmo Chad Moore Kimberly Rausch Tim Wieker Adjusters Rapid City John Keffeler Bruce Eleeson Case Managers Kelly Rud RN BA LNCC Deb Whipple RN BA CCM 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. Coverages You Need... from a Name You Can Trust! Protecting Your Clients Many Interests... Berkshire Hathaway GUARD Insurance Companies Nationwide operations A+ A.M. Best Rating We have agency appointments available. Go to Workers Compensation Businessowner s Policy (Property and Liability) Commercial Auto* Commercial Umbrella/Excess Professional Liability* Homeowners and Personal Umbrella* Disability* and More (*Select States) 20

22 Insurance Solutions for Fire & Emergency Responders EXCLUSIVELY OFFERED IN SOUTH DAKOTA BY: Fischer Rounds & Associates, Inc. Trevor Lightfield tel: cell: A Member of OneBeacon Insurance Group These policies may be underwritten by Atlantic Specialty Insurance Company or OBI National Insurance Company. From cattle ranches to grain farms and dairies, we are looking to partner with you to help your book of business grow! As the #1 preferred business Insurer,* we know your clients each have their own specific needs. That s why we work with you to provide coverages exclusively for them. Contact Morgan Sexton at Morgan.Sexton@LibertyMutual.com or visit LibertyMutualGroup.com/Business to learn more. We can help. 24/7 FIRE & WATER restoration services Sioux FallS yankton INTEK ClEaNINg & REsToRaTIoN Highest Ranked by Independent Agents for Commercial Line Insurers by J.D. Power.** *Based on 2018 survey of business insurance buyers on preference of national carriers sold via independent agents. **Liberty Mutual received highest numerical score among commercial lines in the J.D. Power 2018 U.S. Independent Insurance Agent Satisfaction Study, based on 4,021 total responses measuring experiences and perceptions by independent agents among commercial line insurers, surveyed September-November Your experiences may vary. Visit jdpower.com 2018 Liberty Mutual Insurance. Insurance underwritten by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries. 21

23 Overcoming the Agent s Biggest Obstacle: Called Reluctance By: John Chapin By far the biggest reason agents fail is because they don t make enough calls, to talk to enough people, to get enough prospects, in order to make the necessary sales. There are two causes for this, one: not putting in the hours necessary, and two: call reluctance. While the first one is a problem and needs to be addressed, I find that the latter far outweighs the former. If you watch your average agent during the day, even when they are working they avoid making calls. They do paperwork, clean their desk, check , service accounts, do research, and find many other ways to distract themselves during the day. Successful people are successful because they get themselves to do the things that unsuccessful people won t. Similar to homework as a kid, taking out the trash, or doing 40 minutes of intense cardio, there are some things in life we have to do if we re going to live a successful, fulfilling life, even though we don t want to. In sales, that means getting ourselves to make the calls necessary for success. Below I list techniques and tricks used to make the calls that need to be made. Some of these are tips, others are techniques, and some are the names of books or programs along with the authors. Some will need further explanation. Contact me about any you don t understand. Although this is a fairly exhaustive list, I m sure I ve missed some. Feel free to me with others. Solutions to call reluctance Get 100% sold on what you have to offer. Convince yourself that people need what you have and it s your obligation to save them from inferior products and competitors. Focus on the ultimate payoff of breaking through and no longer having the fear of making calls. What are all the ways in which you ll benefit. Focus on the ultimate pain of not making the calls you need to make. What are all the things it will cost you? Based upon the dollar amount of your average sale, calculate how much each call is worth. If each call is worth $10, then every time you pick up and dial you make $10, even if someone doesn t answer, or they say no. Start with some affirmations before you make your calls. Get motivated: read something positive, watch a motivational video, listen to motivational music, read inspirational stories. Think of those you have an obligation to: employer who pays you, kids, yourself Have someone hold you accountable. Schedule prospecting time and stick to it. Prospect every day, or almost every day to build consistency and momentum. Eliminate distractions and other options. Get coaching. Make a commitment to the people in your life and/or post what you re going to do on Facebook and other social media sites. Post your goals and put up pictures of the rewards you re going to get as a result of making the calls you need to make. Write a check for $500, or more, to someone if you don t do what you say you ll do. Reward yourself for making the calls. Get to your calls as quickly as possible and have as little time as possible between calls. Focus on how good you ll feel after you ve gotten yourself to make the calls. Start with the most difficult calls first and get them over with, or Start with the easy calls first to get some momentum. Put yourself in a peer environment where you have to make the calls. Compete with someone else 22

24 Talk to people who are successful at making calls and ask how they do it. Be fully prepared. Have a script memorized for all information you need to convey. Realize that the hard work will pay off. Just start. There s power in momentum. Think of everyone who is pulling for you and everyone who is pulling against you. See those people, one group on the left, one on the right. Each time you make a call your group wins, and the group against you loses. When you don t make a call, it s the opposite. Get angry. Who do you want to prove something to? What irritates you about your call reluctance? What other thoughts, feelings, and emotions can you use to motivate yourself? Think of times in the past when you ve overcome a fear or been successful and look for clues as to how you did it. Have a conversation with yourself. What s really going on? What s the worst thing that can happen? Realize that nothing can really hurt you. The payoff for making calls is much greater than any perceived sub-conscious payoff for not making calls. Build up your health and energy and avoid the energy suckers: negative people and news. Build your self-confidence. Hypnosis and meditation Psychologist or psychiatrist Visualization Face and conquer other fears Caffeine and similar Overcome approval addiction. Focus on trying to get nos instead of yeses. Neurolinguistic Programming Tapping The Peace Process Can t Hurt Me David Goggins The Unstuck Process Robert Middleton Not Caring What Other People Think is a Superpower Ed Latimore The Art of Fear Kristin Ulmer Jump and the Net will Appear Robin Crow Face the Fear and Feel the Power Stephen Edwards The Work Byron Katie Feel the fear and do it anyway just push through. Do what you fear and the death of fear is certain. Find your WHY and ultimate motivation through Facilitated Introspection John Chapin learned from Steve Siebold Keep searching for answers. Ultimately what you ll do will come down to why you re doing it. If you have powerful reasons WHY you must do something, you ll figure out the HOW and you ll endure the pain to get it done. Come up with all the things that are important to you, that you re willing to fight for, and tie your sales success to those items 23

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26 2019 Schedule of Events May 7th 11th Legislative Conference in Washington, D.C. June 3rd 6th E&O Seminars in Sioux Falls, Aberdeen, Pierre, Rapid City June 19th 20th River Days/Walleye Classic in Pierre Board Meeting July 14th 15th Mid States Young Agents Conf. Sioux Falls, SD September 11th 15th IIABA Fall Leadership Conference & Nat BOD meeting Savannah, GA October 6th 8th Annual Convention Downtown Holiday Inn, Sioux Falls VU Risk & Reality Reports The Big I Virtual University is pleased to announce a great addition to your agency s reference library. Risk & Reality Reports. Choose from 23 easy-toread white papers based on presentations and articles written by some of the industry s leading experts, focused on: General Liability issues Advanced liability issues Commercial Property training Key commercial property coverages Condominiums Certificates of Insurance Worker s compensation Personal lines Improved agency performance Dues Deductibility This year s dues deductibility for the year are: IIABA 18.52% IIASD 21.5% 25

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28 TAKE BOLD ACTION TO KEEP THE FAMILY FARM IN THE FAMILY Farmers and ranchers are an integral piece of Americana, having the opportunity to own and maintain a piece of land and pass this heritage from one generation to the next. For your clients, working off the land is their way of life -- a part of history -- and a business and legacy to pass down. As the owner of a farm or ranch, your clients face a number of business and financial questions: Do they want to step back from business one day, or retire altogether? Is most of their personal wealth tied up in the business? Who will take over when they no longer wish -- or if they are no longer able -- to run the operation? Your client s biggest decision is preparing for the day they will hand over the reins to someone else, and their biggest concern is keeping the family farm in the family. Edward D Bartling, ACS, CLU, FLMI, AIAA, MBA, WPDC Financial Markets, Inc. Phone: Extension 105 Fax: PO Box 3980 Rapid City SD A Samco Road Rapid City SD Edward.Bartling@fmiAgent.com

29 Heartland Financial Service, Inc- Highmore is taking applications for full-time licensed insurance agent. This candidate should possess a talent for working with people, have excellent customer service skills, maintain and grow existing book of business, seeking out new leads and new clients, enjoys sales, be energetic and has an established history of sales success. Competitive compensation package based on qualifications, retirement plan, health, vision, dental, life insurance paid PTO. Resumé may be sent to Heartland Financial Service, PO Box 15, Huron SD Attn Naomi Reinhardt or Barb Lenocker, PO Box 40, Redfield, SD Equal Employment Opportunity FULL TIME INSURANCE AGENT HELP WANTED 2019 Dan Fulwider Award: Now Accepting Applications Named in memory of avid philanthropist Dan Fulwider, former government affairs coordinator and membership liaison for the Independent Insurance Agents of Iowa, the Trusted Choice Dan Fulwider Award for Community Service recognizes a Big I" member who has gone above and beyond the call of service in their community over the past year. Trusted Choice will recognize the agent who has shown the most commitment to their community during the 2019 Big I" Legislative Conference, to take place May 8-10 in Washington, D.C. The Dan Fulwider Award for Community Service award winner will receive: $2,500, donated to the charity of their choice.paid transportation and hotel accommodations for the 2019 Big I" Legislative Conference, including one guest.paid meals during travel.to learn more and apply, visit the Trusted Choice webpage. Applicants must be a Big I" member and complete the online application by March 8. Direct your questions or concerns to Aaliyah Cuthrell. 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

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