INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA. March 2018

Transcription

1 INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA March 2018

2 MESSAGE FROM IIASD s PRESIDENT-ELECT Hello friends, I hope this finds all of you in good health and happiness during this fast moving 2018! Insurance, by definition, is a means of guaranteeing protection or safety...or, a thing providing protection against a possible eventuality. Synonyms include, defense, security, provision. What a strong group of words, words that can relate to our personal life and business life in so many ways. I grew up in the insurance industry. My dad, who retired last May, spent 44 years protecting, providing security and providing for our family and his clients. I saw him travel an endless amount of miles, work long hours and all the while, modeling what it took to be a good father and insurance agent. Many of us in the industry came into our careers following the footsteps laid by a parent or relative and maybe one of my children will consider this rewarding industry. A key role of the IIASD is promoting, demonstrating and teaching how this great industry can protect, defend and secure others... our families and clients. This month will mark my 15th year in the insurance industry and I wonder if I will I make it 44 years... maybe? I enjoy what I do as well as the people in the industry and my clients and have been blessed by mentors and many of you reading this newsletter. My good friend Jerry Diamond pushed me long ago to get more involved in the IIASD and I am glad he did as I have had the opportunity to build relationships with many of you and meet new people. I am unable to think of a more rewarding career, whether it is providing the insurance to rebuild a home or business in the event of a fire or storm, providing for a family in mourning. I still fit into the Young Agent definition for a couple more years but after 15 years, and still being under 40 (barely), I realize how fast time and life passes. My recommendation to a new Young Agent is to get involved in the IIASD, work hard, meet as many people as you can and persevere, be part of an agency that promotes the association and allows for personal growth. 44 years sounds like a long time, but it will go by fast, so make the most of it, make many friends and help us show others our great industry. Best of luck in 2018! Your Friend, Derrick Linn, CIC, LUTCF Co-owner with Leavitt Heartland Insurance 1

3 INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA PRESIDENT Jesse Konold Key Insurance Inc. Mobridge, SD VICE PRESIDENT John Meyen Rosholt Insurance Agency Rosholt, 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 3 Here at IIASD, we are continually trying to improve and inform members of the value of Big I membership. One of our challenges is communication. How do we inform without burdening members with more s and notifications? We attempt to focus on resources most needed and used by members but with the diversity of our industry in SD, that continues to be a guessing game. One priceless and undervalued benefit of being a Big I Member is the sense of community and fellowship that members, company reps and industry partners share with each other. These partnerships are not limited to the state Big I level. SD Young Agents have developed strong relationships with YA across the country at National IIA events. These connections have led to collaborating with 12 other states to create the Midwest YA Conf in Omaha on July 15th 16th. In April, 12 IIASD members will attend the Nat l Legislative Conference in DC to advocate for crop insurance, flood, health care, cybersecurity, tax reform and insurance regulatory reform. Seven are first-time attendees and will come away with a true appreciation of legislative advocacy on the Nat l level. They will acquire a better understanding of the importance of InsurPac. You could be one of those attendees next year. To discover the value of these relationships, it requires action. Partipation in events, joining grassroots efforts, inquiring about services and opportunities, browsing through the monthly newsletter and most importantly, calling with questions and suggestions. Through the Big I, members develop relationships that last a lifetime. Whether a member is in a time of need, has a tough situation or question, is looking for a market, getting involved in the Big I will add value to your agency and your life. We value your membership and look forward to learning how your Big I family can be there for you.

5 E&O EDGE Megan Linn, E&O Administrator Avoiding Operational Pitfalls: An Every Day Plan By: Ellen McCarthy Running a successful insurance agency is akin to putting together a winning sports team. You want to get the best athletes available and ensure that those players perform at a high level by implementing a well-conceived regime of skill development. But athletic prowess, by itself, is not enough. Nothing is more frustrating than seeing an undisciplined player get penalized during a game for failing to follow an established rule. In the sports world, these errors routinely end up changing the outcome of the game. Likewise, in the insurance arena an agency can have great producers and a solid marketing plan in place, but if key agency processes aren't being followed, the resulting E&O claim can be quite painful. Consider the following: An agency has specific procedures in place for the issuance of Certificate of Insurances ("COI"). Its manual provides that, if a COI is given for an additional insured, the agency must make sure the carrier is notified and that an endorsement is issued for the certificate holder. A well respected CSR is faced with multiple COI requests and, due to a heavy workload, delays notifying the carrier of one of the issued COIs, then forgets to follow up. A lawsuit is filed against the certificate holder after an accident on a job site. The certificate holder demands a defense from the insured's GL carrier, but the carrier declines to defend or indemnify because the certificate holder was not an insured. A claim is then made against the agency. Total Cost: $180,000 An agency is contacted by a customer for homeowners coverage. The agency's manual requires that all files must have a completed application. The producer inputs information into the carrier's web portal for a quote with a plan to update the inputted information as needed upon receipt of the application and the policy is bound. Several months later a fire occurs and the agency cannot locate the application. The carrier pays the claim but then sues the agency on the theory that the agency failed to follow its own guidelines by not getting an application, insisting that it never would have written the policy had the correct information been relayed. At deposition, the producer has no choice but to admit that the procedure was to get the completed application before binding coverage and has no explanation as to the whereabouts of the missing application. Total Cost: $500,000 A producer procures coverage on multiple commercial properties for a longtime client. Subsequently, at the client s request, the producer asks the carrier to remove property coverage for one of the properties as it was to be leased to a tenant. The agency has a "best practices manual" which states there should be a deletion/reduction request in writing, but the producer did not get one (in fact, very rarely did this producer get anything in writing). A subsequent vandalism claim occurs on the property, which the carrier denies due to the lack of coverage. The client then brings suit against the agency for the uncovered vandalism loss and maintains that the property was supposed to have coverage. Total Cost: $470,000 An agency procures commercial auto coverage for a client whose principal is "John Doe, Sr." The agency manual specifies that an insured's complete legal name must be entered on all applications. The application has a list of individuals who would be covered by a Broad Form Drive Other Car Endorsement. The producer lists "John Doe" as a covered person. Subsequently, the principal's son and former employee, John Doe, Jr., is involved in a car accident. He seeks coverage under the policy on the theory that he was covered as "John Doe," The court ultimately agrees that, due to the "ambiguity" as to who the intended insured was, the carrier must cover John Doe, Jr. The carrier pays its limits and then seeks this sum from the agency for causing the ambiguity. The carrier asserts that the agency violated its own guidelines in not using the legal name of the insured. Total Cost: More Than $1 Million While mistakes happen (after all that is what insurance is for), there are simple ways an agency can reduce claims arising from procedural errors. The "Four eye" approach. Before any policy is issued, have another staff member do a review to make sure nothing was missed. Yes, this can be time consuming but the payoff can be substantial. Random audits. Select a number of files to review on a periodic basis. Do not limit this audit to new or junior employees. We often see that the more senior staff members are the ones who forget to follow the rules. Article Continues on Page 5 4

6 Periodic refresher sessions for all staff members. While these can be dry and boring, try to make them more appealing. Try a game show type of approach in which contestants get prizes for answering questions correctly. This can be a great team building exercise as well. Checklists. Have a checklist that is used every time, by every staff member NO EXCEPTIONS. There is nothing more demoralizing for a staff member to find out that the rules only apply to certain people. Workload management. Make sure that staff members are not overloaded. It is much harder to follow expected procedures when overburdened. That s when all of us start cutting corners. Audits. Retain an outside auditor to come and review the agency from top to bottom. While these do come with a price tag, pull out the Declarations Page of your E&O policy and compare the cost of an audit to having to pay your deductible on even a single E&O claim, not to mention the premium increase that could result from a serious claim and the loss of customer confidence. Audits. Retain an outside auditor to come and review the agency from top to bottom. While these do come with a price tag, pull out the Declarations Page of your E&O policy and compare the cost of an audit to having to pay your deductible on even a single E&O claim, not to mention the premium increase that could result from a serious claim and the loss of customer confidence. Procedural errors have proven to be just as costly as substantive mistakes, particularly when the plaintiff is able to highlight the agency's failure to follow its own rules. In each of the examples above the agency had good procedures in place and the agency principals were confident that those processes were being followed. It was only when a penalty flag was thrown, i.e., an E&O claim came to light, that the agency realized its rule book was being ignored. Legendary wrestling coach and Olympic gold medalist Dan Gable once offered a simple path to success: "If it's important, do it every day." He's right. The ramifications of failure underscore the importance of having your team in full compliance with established agency procedures. Every day. Ellen McCarthy is a vice president and claim expert at Swiss Re Corporate Solutions and teleworks out of the Overland Park, Kansas office. Division of Insurance News and Views 2018 Legislative Session Recap The 2018 South Dakota legislative session is scheduled to officially end with Veto Day on March 26. Over 670 bills, commemorations and resolutions were introduced during the 38 day session. Four bills were introduced on behalf of the Department of Labor and Regulation, Division of Insurance, and all successfully completed the legislative process. The following list is the recap of the Division bills, as well as other department and industry-related bills passed during the 2018 legislative session. Unless otherwise noted in the bill, all legislation signed into law has an effective date of July 1, Division of Insurance Bills House Bill 1033 establishes a biennial license renewal process for business entities operating in South Dakota. As part of this renewal process, business entities will be asked to provide a point of contact and responsible party for an entity s compliance. Additional information regarding the license renewal process will be provided by the Division prior to the enactment of this law. This bill was signed by Governor Daugaard on Feb. 27, On Feb. 8, the Governor signed House Bill 1034, an act to require certain insurance companies to identify and locate beneficiaries on life policies and annuity contracts. This bill outlines reasonable steps for insurers to complete as part of their practice for identifying and paying out of death benefits to beneficiaries. Companies will utilize the federal Death Master File or other comprehensive databases to determine policyholder death and then proceed to locate contract beneficiaries. This legislation is a combination of the model laws drafted by the National Council of Insurance Legislators and National Association of Insurance Commissioners. 5

7 House Bill 1041 amends South Dakota Codified Law chapter to require large insurance companies to have an internal audit function in place. This function provides independent and objective feedback to the company s board of directors on governance, management and internal controls. This is designed to assist the board of directors in evaluating the company and management s ability to protect assets, their effectiveness and the efficiency of controls. This internal audit function also aides to make apparent the overall compliance with policies and regulations. This legislation impacts insurance companies with over $500 million in premium and insurance company groups with more than $1 billion in premium. This bill was signed by the Governor on Feb. 5, The Division s request for statutory cleanup was presented in House Bill This legislation corrects references in Title 58 (Insurance Law) and Chapter 47-31B (Securities Regulation). HB1042 corrects Department and Division title references in statute to reflect the 2017 Executive Order transfer of the Division of Securities functions to the Division of Insurance. The bill also addresses an outdated practice requiring the Division to use of a seal for certain securities regulation transactions; this practice would now be optional. The bill was signed on Feb. 22. Other Bills of Interest Other bills considered during session that may be of interest include: House Bill 1221 and Senate Bill 117 revised certain provisions of the partners in education tax credit program. (HB1221 is currently waiting for the Governor s signature, and SB117 was signed on March 8.) House Bill 1093 provides for the completion of certain insurance transactions and presentation of policies in a language other than English. The bill also states that the English language version of the insurance coverage will control the resolution of any dispute or complaint on the policy or advertising material. (Signed by Governor on March 6.) Senate Bill 141 prevents pharmacy benefit managers from including contract provisions that prohibit pharmacies/pharmacists from discussing drug prices with consumers. (Signed by Governor on Feb. 27) House Bill 1236 provides for the acquisition of certain motor vehicle titles by vehicle auction agencies for vehicles involved in insurance claims. (signed by Governor on March 6) Senate Bill 62 provides for notification to impacted South Dakotans and the Office of the Attorney General related to a data breach. (Delivered to the Governor on March 9; final disposition pending.) A recap of the actions of the South Dakota Legislature is available through 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: House Bill 1205 requires certain health benefit plans to provide coverage to persons with a serious medical condition for certain dental care services. (Signed by Governor on March 1) 6

8 Kayla s Technology Advice 3 Digital Marketing Moves to Make This Year By: Steve Yi Every agent s goals for 2018 are different. But most would agree that generating more customer leads is near the top of their list. One way to increase not only the quantity but also the quality of your leads is to improve your digital marketing efforts. Here are three proven tactics to try: 1) Focus on content marketing. This entails producing and distributing digital materials such as blog posts, informational videos, interactive charts and social media posts that are actually useful for your target customer. The average person doesn t understand all the ins and outs of the insurance industry, so creating content that will help them understand what kind of coverage they need and how to get it is extremely helpful in building relationships with potential customers. For example, a chart that translates insurance industry jargon into beginner's terms would be very useful for a new buyer. Providing these types of free resources that offer real value to consumers goes a long way in terms of establishing trust, which is essential for converting a prospect into a client. In addition to making sure s are targeted, it is also important not to overdo it with the number of messages you send. Nobody wants to receive unsolicited s from the same sender several times a day or week. Be selective and mindful of the recipient s time, so they don t tune you out or classify your messages as spam. 3) Advertise on vertical search engines. Leverage insurance search advertising to reach potential customers that are in the process of looking for policies. Unlike traditional search engines such as Google and Bing, vertical search engines are specific to a single industry. For example, Hotels.com and Hotel Tonight are vertical search engines that consumers rely on to find great hotel rates. ConsumerAdvocate.org and Quotelab.com are examples of vertical search engines that aggregate insurance rates and plans from a variety of providers. Placing vertical search ads on such sites enables you to target consumers who are actively seeking a quote. While you might reach a broader audience with an ad on Google search, the audience you reach through a vertical search ad is more likely to convert. 2) Connect with consumers via . In 2017, 3.7 billion users worldwide collectively sent and received roughly 269 billion s per day, according to Statista. Clearly, agents need to leverage in their digital marketing strategies. Effective marketing depends on organizing your lists by message, as not every is a good fit for every client or prospect. An with information on an auto insurance deal for new high school graduates would be a great way to generate leads, but it should only be distributed to recent graduates. 7

9 Elevate your clients coverage. EMC offers comprehensive, tailored insurance packages designed specifically for wholesalers and distributors, including coverage for delivery errors or omissions and employment practices liability. And now, valuable coverages are automatically bundled together instead of elected separately meaning choosing the right insurance for your clients just got a whole lot easier. Give your clients a higher level of insurance they can count on. Copyright Employers Mutual Casualty Company All rights reserved. 8

10 CALL TO ACTION!! Short-Term Limited Duration Health Insurance As a result of President Trump s executive order late last year, a proposed regulation has been published to increase the maximum coverage term under short-term health policies currently restricted to less than 3 months. The proposed regulation amends the definition of short-term policies to a maximum of less than 12 months. Centers for Medicare and Medicaid Service is taking comments on the proposed changes until April 23rd. Supporting the proposed regulation can help provide greater options for individuals: 1)College Students who aren t on their parent s plan 2)Individuals who left their job and cannot afford or missed the COBRA plan option 3)Short-term plans are underwritten which allow premiums to be more affordable 4)Short-term plans go into effect the next day not at the beginning of the following month 5)Short-term plans are not network based and give greater choice on providers 6)People need options they should be able to make choices on coverage and there will most likely be more option inquiries with the ending of the ACA Individual Mandate Penalty 7)Longer policy terms will prevent new health issues from impacting underwriting approval or policy issuance as it will not be necessary to apply for new coverage as often with longer terms. 8)People who do not qualify for an ACA subsidy cannot afford rising cost of ACA plans. Understanding Short-Term Health Insurance Brief - Karen Pollitz - Full Talking Points link provided by Graber & Associates - click here. Take time to comment at: before April 23rd. You Can Make A Difference! 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. 9

11 FOR SALE Multi-Line Independent Agency in Eastern South Dakota. Great opportunity for Young Agent and/or expanding agency. Contact Carolyn Hofer at 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 10

12 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! 11 10

13 Berkshire Hathaway GUARD Joins IIASD Partner Program Founded in 1983, Berkshire Hathaway GUARD Insurance Companies (formerly known as GUARD Insurance Group) are nationwide Property & Casualty insurers, rated A+ Superior by A.M. Best Company and ultimately owned by the Berkshire Hathaway Group an international holding company with diverse interests that include insurance and reinsurance. Berkshire Hathaway GUARD s full product suite features key lines of commercial coverage for businesses of all types and sizes made available through a carefully selected network of independent agents and brokers. In South Dakota, Workers Compensation, Property/Liability (via a Businessowner s Policy), and Commercial Umbrella Liability are featured with Commercial Auto and Professional Liability on the horizon. Targeted industries include: artisan contractors, auto services, habitational, hotels/motels, professional offices, restaurants, retail, service industry, and wholesalers/distributors, although many others will be considered. Risks with total insured value up to $20 million are typically entertained with up to $50 million considered for hotels, professional offices, retail, and lessor s risk clients. In addition to competitive base rates, a variety of pricing tools are available, such as schedule rating and dividend options for Workers Comp policies and a unique Businessowner s Policy Safety Record Credit that is based upon Workers Comp experience. A full range of expert loss control, claims handling, and customer services provide an added level of value to policyholders. According to Berkshire Hathaway GUARD Director of Regional Sales Shari McCall, the company is eager to expand its agency representation in South Dakota. In addition to being able to provide clients with a secure insurance policy, our agents enjoy attractive commissions, an annual contingency program, a quick and easy online submission platform, and truly... unlimited growth potential! said McCall. We are proud to network with IIASD in support of the independent agency channel and South Dakota business owners. In 2017, Berkshire Hathaway GUARD had over $1.2 billion in written premium and over 250,000 policyholders. Agents interested in learning more can contact the company on-line at apply. 12

14 Featured Platinum Partner Financial Markets Inc is a wholesale insurance brokerage committed to the success of our customers, you the producer. It s your complete brokerage source offering Annuities, Life insurance, Long Term Care, Disability Income, Critical Illness and Medicare Supplement. With our 28+ industry leading carriers, you deliver the right product solutions to your clients every time. We offer unmatched case evaluation, design and review on a personal, individual basis. We also provide weekly live online training and on-demand training modules to enhance your success. Financial Markets Inc is dedicated to serving you to build your successful insurance practice. Why Financial Markets Inc? We answer the phone! Unmatched service Unmatched knowledge of products and product positioning Consistent and pertinent weekly product and sales training Highly effective turnkey sales programs (several to select from) Superior web-based tools including sales libraries, illustration software, specimen documents and much more Contract with the Best... Contract with Financial Markets Inc Today! P.O. Box 3980, Rapid City, SD Marketing@fmiAgent.com 13

15 2018 Big I Legislative Conference: Top Issues This Year By: Katie Butler The Big I Government Affairs team is busy preparing for the 2018 Legislative Conference. Its numerous tasks include composing briefing materials with the latest information from Congress to the association s members and working closely with state delegations and congressional offices to assist in scheduling hundreds of meetings. In a one-page summary, the government affairs staff outlines the key topics that agents will take to Capitol Hill during the annual Big I pilgrimage on April 19. Coordinating and tracking hundreds of meetings with congressional offices is a daunting task, but it s proven effective. Share details of any appointments that have already been scheduled with Nathan Riedel. If possible, schedule Hill meetings no earlier than 9:30 a.m. to accommodate the Legislative Breakfast on Thursday, April 19. For more information on the association s largest annual gathering, visit the Big I Legislative Conference webpage. 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

16 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 15

17 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

18 Featured Platinum Partner Andy Kraus, CPCU Vice President of Agencies fmne.com 17

19 2018 IIASD s Schedule of Events April 17th 21st Legislative Conference in Washington, D.C. June 4th 7th E&O Seminars in Sioux Falls, Aberdeen, Pierre, Rapid City June 20th 21st River Days/Walleye Classic in Pierre Board Meeting 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 July 15th 16th Five-State Regional Young Agents Conf. Omaha, Nebraska Agribusiness Farm & Ranch Farm & Ranch Auto Personal Auto Excess Liability Watercraft Crop Hail Multi-Peril August 22nd 25th IIABA Fall Leadership Conference Springfield, MA September 23rd 25th Annual Convention The Lodge in Deadwood- The Lodge is Full ***See the top of page 25 for Overflow hotel information*** 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) 18

20 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 19

21 Small Businesses Face Hacking Risks 2017 was a record year for data breaches, but small businesses may feel they are too small to be threatened by cyber risks and often don't take the steps needed to try and protect themselves. But even if they aren't the primary target, hackers could use them to get to larger businesses, such as the 2013 Target hack, which happened after hackers breached its HVAC vendor. Merchants of all kinds should carry cyber coverage. Lawyers, CPAs, podiatrists, consultants, counselors, taxi operators, restaurants and bars...you name it. Big "I" Markets has a Cyber Liability-Small Business Solution you can offer to your clients at $200 for most small businesses with under 50 employees. You'll find our ineligible list is tiny: banks, credit unions, payment processors, gambling organizations, adult industry, social media/networking firms, cloud providers and security broker dealers. How to Market Cyber At a minimum, every small business in your client roster to offer coverage. We've done the work for you and provided a concise sample letter outlining the product features - simply click here to download it. Even better, mail the letter through USPS, or use it as a reason to check in with a call or personal visit...or combine them. Coverage is "primary to other." If your client asks for more coverage, offer consultation after providing instant protection. You also have access to industry leader Travelers Wrap+ through Big "I" Markets if higher limits are desired. Enjoy a Simple Sales Process Binding could not be easier. Enjoy 15% commission, the ease of direct billing and the confidence that comes with using an insurer rated "A" with A.M. Best. Go to choose Cyber Liability-Small Business Solution and provide a customer in the quote request function. BIM takes care of the rest. We collect the application and $200 via credit card directly from the customer and pay you. The policy and certificate are available in hours after payment has been processed. We post a signed application on BIM, and a dedicated web page is available for self-print of the certificate and policy. Protect your Agency from E&O Risk Document, document, document! After sending your initial marketing letter, ask for a signed declination via DocuSign. We have created a sample form that you can customize with your agency name. If your client doesn't return the form, use a DocuSign message to document that the offer was sent. If nothing is returned, your file will look strong in the event of a claim. "We want every policyholder in the Big 'I' Professional Liability program (and indeed, every Big 'I' member) to offer cyber liability coverage to all their small business clients. Doing so will minimize the top source of E&O claims, 'failure to offer,' and provide better protection to your valued clients," says Jim Hanley, Big I Advantage Director of Risk Management. Questions? Go to and select Cyber Liability-Small Business Solution from the commercial products menu, or bigimarkets@iiaba.net. 20

22 PROFESSIONAL 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 21

23 FRAUD Convictions Ishmael Ali Burk made 32 false damage claims for six vehicles. The Bucks County, Pennsylvania man would purchase insurance for a vehicle then file a vandalism claim several days later. Burk would take the car to an insurer-approved inspection facility and seek an immediate payment. He would withdraw the claim right away if an insurer questioned him in more detail. Burk received $21,956 total from the insurers and made another $85,000 of claims that insurers did not pay. Allstate, Farmers/21st Century, Geico, Infinity, Liberty Mutual, Nationwide, Progressive, Safe Auto, State Farm, and Travelers were among the victim insurers. Burk also nearly ran over two police officers while fleeing an unrelated traffic stop. He fought with police after leading them on a chase that crossed in and out of oncoming traffic. He rolled out of his still-moving Jeep Grand Cherokee on a highway, forcing a passenger to grab the wheel to prevent a collision. Burk received consecutive prison terms totaling ½ years for both scams. Steven M. Butcher organized a $45-million scheme to defraud health plans by submitting phony claims for overpriced compounded medications including scar and pain creams, and metabolic supplements. The Buffalo, New York man ran a marketing firm for compounding meds. He bribed people whose insurance plans would pay for the meds to obtain the compounds whether or not they were necessary. Butcher steered the prescriptions to compounding pharmacies with which he was in cahoots. Insurers paid $3,000-$40,000 per script. The pharmacies kicked back up to half of the claims payouts. Butcher pleaded guilty in New Jersey and awaits federal sentencing. He scored prolifically in soccer as well as the all-time leading scorer for the University of Buffalo, and played professionally. The feds have prosecuted 19 people involved in compounding pharmacy schemes across New Jersey. The ruses have stolen more than $70 million of insurance money. fraud charges A monopoly in the vast New York City towing industry duped insurers with repair scams and tried to squash competition by stacking NYPD s tow-truck roster with shell towing firms he controlled, state prosecutors say. The ring led by Dan Steininger, launched elaborate schemes involving shell firms, insurance cons, bid rigging, and other crimes. NYPD uses a rotating roster of towing firms to ensure equal and fair work. That was not true with Steininger s ring. He weighted the roster with towing firms he controlled to monopolize the city s towing industry. The firms had different names, logos, and listed owners, though Steininger controlled them all. Several allied body shops scammed insurers out of hundreds of thousands of dollars with false claims for unperformed work, or by charging for new parts that were actually used ones. They also damaged vehicles themselves to charge insurers more for repairs. Steininger encouraged his workers to max out claims. And he laundered the stolen insurance money by cashing millions in checks made payable to his shell firms. Authorities also are filing a $20-million civil suit. Caught in a financial bind, Jonathan Paul Marino burned down his new restaurant in Baton Rouge for an insurance score, prosecutors say. Marino had recently opened The Cast Iron Kitchen. Video surveillance from the fire shows smoke coming from the eatery, which was closed, minutes after Marino left the building. The roof collapsed on firefighters inside, sending one to the hospital. Marino has already fraudulently collected $12,000 in partial insurance payments from The Cast Iron Kitchen fire. Marino also took in $145,000 after another restaurant, The Italian Bowl, burned down earlier. It was ruled a grease fire, though officials are investigating if Marino was involved. 22

24 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 Joe Jares Collin Karsky Alex Mentele 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 Dave Johnston Amy Kvernmo 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. What s New? Now a billion dollar company! (Sales passed the mark in 2016.) Nationwide geographical scope. An increasingly robust One-Stop Insurance Shopping solution via a BizGUARD Plus product suite that features Workers Compensation, Businessowner s Policy, Commercial Auto, Umbrella, and Professional Liability coverage. Broader appetite for select risks (including Total Insured Property Values as high as $50 million for certain industries and risks). Higher A.M. Best financial size (i.e., X ). Enhanced infrastructure to support growth. Secure financial strength that comes from being a member of the Berkshire Hathaway family. Our A+ ( Superior ) A.M. Best Company Rating. Average annual growth in premium in excess of 25% per year for the past five. What s Not? Ongoing product and service enhancements to win renewals and keep a high retention ratio. Our focus on being data-driven and using business intelligence to gain a competitive edge. A superior combined ratio that (according to A.M. Best) outperforms our peers. Our commitment to distribution through independent agents! GROWTH Berkshire Hathaway GUARD Insurance Companies STABILITY We have agency appointments available. Go to 23

25 Insurance Solutions for Fire & Emergency Responders EXCLUSIVELY OFFERED IN SOUTH DAKOTA BY: Fischer Rounds & Associates, Inc. Shane Lehrkamp tel: cell: A Member of OneBeacon Insurance Group These policies may be underwritten by Atlantic Specialty Insurance Company or OBI National Insurance Company. Overflow Hotel for 2018 Convention in Deadwood September 23rd-25th Springhill Suites/ tru Properties Call Today to Reserve Your Rooms Room Rate of $79-89 Career Opportunity for Insurance Agent Dacotah Insurance is hiring Insurance Agents in our Aberdeen, Webster/Sisseton, Sioux Falls, Watertown/Clark and Dickinson, ND markets. Primary focus commercial and farm insurance. The successful individual will currently hold licenses in property casualty and life and health. 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: We can help. 24/7 FIRE & WATER restoration services Sioux FallS yankton INTEK ClEaNINg & REsToRaTIoN Equal Opportunity Employer of women, minorities, protected veterans and individuals with disabilities. 24

26 The Most Important Sales Conversation By: John Chapin There is a much overlooked aspect of sales success that is rarely talked about and people pay little attention to, it is: self-talk. The most important conversation is the one you have with yourself. The reason that conversation is so important is because the words and language you use both reveal and reinforce your beliefs about yourself and the world. Those beliefs dictate the action you take, or don t take, and ultimately determine success or failure. If you have a problem selling, you more than likely have a self-talk problem. The difference between the top salespeople and everyone else, is that the top people became aware of their negative self-talk and beliefs and reprogrammed their language and beliefs to positive ones, or, they were one of the lucky few who received positive programming right from the get go. The latter by the way is the exception, most of us received negative programming growing up. Either way, if you want to become a champion, you need to ensure that your self-talk is positive, upbeat, and supports you. How to identify and solve possible self-talk issues Step 1: Awareness Like everything else in life, awareness is step one. You can t fix a problem you don t know you have. If you are overweight, but you don t think you are, the problem won t get fixed. If your finances are wrong, but you don t know there s a problem, you won t get them right. If you have a self-talk problem, you need to be aware of it before you can change it. So the first thing you want to do is monitor your self-talk. What do you catch yourself saying about yourself and the world around you? Are most of your conversations negative or positive? Do you find yourself saying negative things about the economy, your particular market, your industry, or your product? How about your self-talk about you? Do you believe you aren t smart enough, young enough, old enough, don t have enough energy, have too much energy, that bad things always happen to you, or that the odds are always stacked against you? Your beliefs will be your reality. Step 2: Getting your self-talk right If you realize you have a self-talk problem, here are some ways to work on it: a. Positive Affirmations Many people are familiar with affirmations and have either tried them in the past or use them currently. In a nutshell, positive affirmations are a series of positive statements which reinforce a belief you want to have about yourself. For example, if you want to have more self-confidence, you might use affirmations such as: I am confident, I believe in myself, I feel my confidence increasing everyday, and other similar statements. b. Positive Afformations Noah St. John coined the phrase Afformations in his book by the same name. Afformations are similar to Affirmations but they are slightly different in that they are in the form of questions versus statements. In the case of Afformations, if you wanted to have more self-confidence, you would use questions such as: Why am I so confident?, Why is it so easy for me to believe in myself and do the things I need to do?, Why do I have so much talent and ability? The theory is that while your brain may be able to argue with a statement (affirmation) you make such as I am confident, it does not argue but rather searches for an answer to the question when you ask, Why am I so confident? Again, you can check out Noah s book where he lists Afformations for most areas of life that people struggle with. Note: There are four ways to work with affirmations and afformations: listening to a recording of them, reading them, writing them, and saying them to yourself either out loud or silently.ideally if you are vocalizing them, you want to say them with as much feeling and emotion as possible. It s best to work with affirmations and affirmations first thing in the morning, right before going to bed, and then, if you can a few times during the day. 25

27 c. Psycho-Cybernetics The most popular psycho-cybernetic technique to shift self-talk is to cancel out negative statements. You do this by saying the word cancel after you catch yourself saying something negative and then following the word cancel with a positive statement. For example, if you catch yourself saying, Why do things always go wrong for me?, you d say cancel, out loud if possible, and then follow that with either an Affirmation such as: Things always go right for me, or an Afformation such as, Why do things always go right for me? d. Clean up your environment. Specifically eliminate negatives and negative people from your environment. Where you end up 5, 10, 15 years from now will come down to what you put in your brain and who you hang out with. You cannot watch the evening news and be positive. You also cannot hang out with negative people and have positive self-talk for any length of time. Finally, keep in mind that everyone has some negative self-talk occasionally. In fact, the majority of champions have had self-talk problems caused by major self-esteem and self-confidence issues. Many were plagued by insecurities that were constantly reinforced with negative self-talk. The key is that they recognized it and did something about it and that s the key for you too. Become aware of these thoughts, catch yourself in the act, and then shift the conversation and reinforce the positive until it becomes your new habit. This does not happen overnight and takes work, but if you commit yourself to positive words and language, you should see a fairly substantial and positive shift in about 30 days. By the way, another great book related to self-talk is: What to Say When you Talk to Yourself by Shad Helmstetter 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 26

28 IIASD Young Agents This Event is for You! Two-day exclusive Young Agent Event in the famous Old Market Omaha District Network and socialize with agents from surrounding Midwest states Round table and interactive sessions on Sales Techniques & Young Agent topics Carrier speed dating one-on-one opportunities with carrier representatives Golf Tournament Register today: *Registration limited - first $75/registration - $80 for Golf Outing *Limited room block available at Embassy Suites Olds Market - $129/night July 15 & 16, 2018 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

29 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

30 Spring Clinic 1752 C l u b Thursday, March 29, 2018 Schedule Ramkota Hotel 3200 W Maple St Sioux Falls :30 a.m. -- 9:00 a.m. Registration 9:00 a.m. 11:00 a.m. ALICE (Alert, Lockdown, Inform, Counter and Evacuate) program 11:00 a.m. -12:00 p.m. Crossing Professions to maximize benefits to Insureds 12:00 p.m. 1:00 p.m. Lunch included in registration 1:00 p.m. 2:00 p.m. Insurance Issues & Legislative Review 2:00 p.m. 3:00 p.m. Overview of OSHA relationship to Insurance Guest Speakers Sgt Robert Mayer SD Highway Patrol Jason Bennett Risk Services at Continental Western Group Larry Deiter-Director, Division of Insurance - SD Dept. of Labor Sheila Stanley Area Director for OSHA We will be drawing for a $500 scholarship for an agent s son or daughter who will be attending a post secondary educational school. You will need to be present to win! NOTE: 1752 Club 2018 Spring Clinic has applied for CE approval for 5 hours. Registration Form $75.00 PER PERSON Make checks payable to: 1752 Club Send to: Brenda Christensen th Ave Big Stone City, SD Names: Agency/Company: 30

31 OBITUARY Patrick Raymond Bowar Pat Bowar was born on March 17, 1950 to Vincent "Bing" and Helen (Sudbeck) Bowar in Parkston, SD, and grew up in Dimock, SD. After graduating from Parkston High School in 1968, he attended Southern State College-Springfield before joining the Air Force in Pat married his high school sweetheart, Catherine Ann McCann, on January 29, During his time with the Air Force, they were stationed in South Carolina and Spain. After returning to the states, Pat finished his schooling with a business degree from the University of South Dakota. In 1976, Pat began working for Farmers State Bank in Parkston. Then in 1982, he and Bruce Maxwell began Maxwell & Bowar Agency. Pat retired in 2016, but was still a frequent face around the office. March 17, 1950-February 21,2018 Pat Bowar led the Maxwell & Bowar Agency with honesty and integrity and it was an honor to know him and have him as a part of the Independent Insurance Agents of South Dakota. Over the years Pat was involved with many groups around the community. He was a member of the Knights of Columbus, Lions Club, Dimock Lake Association, and Commercial Club. He was on the board of Avera St. Benedict Hospital, Avera St. Benedict Foundation, and the Parkston Area Foundation. In the months before his passing, he worked fervently on the Parkston Scholarship Fund. Pat spent his life as a servant of Christ. He served his country, his community, and mostly his family. He was an incredible earthly father and a strong example of what our heavenly Father is like. He cared deeply for others and had empathy for anyone in need. Papa loved spending time with his grandchildren. He enjoyed hunting, fishing, golfing, and volunteering. His family and friends will remember him for his humble spirit and huge heart. After a courageous fight with cancer, Patrick Raymond Bowar, 67, died February 21, 2018 at Avera St. Benedict Hospital in Parkston, SD. He was surrounded by family and covered in prayer at the time of his passing. 30

32 SEGMENT SEGMENT SEGMENT SEGMENT I II III IV Commercial Property CGL / Products Workers Comp Final Case Presentation Risk Solutions IQ is a comprehensive and interactive learning experience for P&C professionals to develop participants risk assessment and coverage knowledge with practical, skill-based learning. RSIQ s advanced Virtual Learning instructi onal design delivers superior knowledge transfer and retenti on on Commercial Property, Commercial General Liability and Workers Compensati on. The program includes short videos, fullynarrated online courses, expert readings, realisti c case studies and interacti ve live learning web-sessions. Throughout the 10-week program, participants will acquire and practice new skills to assess risk hazards, exposures and coverage gaps as part of a new client acquisition or existing account management process while incorporating their value proposition. RSIQ is perfect for your new hires producers and account executives RSIQ incorporates multi-dimensional independent study with four (4) New Level Partners expert live learning web-sessions, expanding the case study work and providing extensive questionand-answer opportunities. RSIQ learning outcomes are maximized when participants managers/mentors are engaged in the learning sequence to answer questions and reinforce the program s objectives. New Level Partners support team provides all user-support, including assignment overviews, help support for Virtual Classroom access and individual follow-up to ensure all program elements are completed. 31

33 POWER IN PARTNERS March 2018 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 ArmTech Insurance Services Auto-Owners Insurance Berkshire Hathaway Guard 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. Wellmark Blue Cross & Blue Shield BRONZE AmTrust North America Bjornson/Sentinel E & L