INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA September 2017 Upcoming Event: Independent Insurance Agents of South Dakota Annual Convention October 1st-3rd Downtown Holiday Inn Sioux Falls, SD
Message from Your 2017 IIASD District 3 Director As your Director for District 3, I am very proud to represent you on the Board of Directors for southeastern South Dakota. I have been an Independent Agent in SD for almost 35 years, currently with Hub International in Vermillion. There is nothing more exciting than seeing our Association so involved and actively representing all our members. Since we are just a couple weeks away from the IIASD Annual Convention, I m going to highlight all the exciting events and happenings of this year s convention. First of all, we are back in Sioux Falls this year and have changed things up by having the Downtown Holiday Inn host our Convention. Besides all the great events at the convention, we can all experience the attractions of Downtown Sioux Falls. This year s event will be a great one with everything that is included for your pleasure and education. Sunday starts out with a day of golf at Elmwood Golf Course, then on to the Trade Show complete with Treasure Hunt. Monday & Tuesday are filled with a great variety of motivational, informational and continuing education classes. The Agency Principal Social and Young Agent s Social follow the Annual Business meeting. The evening will conclude with the Annual Banquet featuring the Deuces Wild! Dueling Piano Duo. And of course, the Social Networking which seems to get us all together. Come enjoy Beautiful Downtown Sioux Falls and all the fun with friends. Looking forward to seeing you all there. Rich Job Hub International Vermillion, SD 1 1
INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA PRESIDENT Annette Conway Black Hills Agency Inc Rapid City, SD VICE PRESIDENT Derrick Linn Leavitt Heartland Ins. Services Sturgis, SD PAST PRESIDENT Pat Tollefson Insurance Plus Aberdeen, SD DISTRICT # 1 Josh Gilkerson Fischer Rounds & Assoc. Pierre, SD DISTRICT # 2 Mindy Huntington Fischer Rounds & Assoc. Watertown, SD DISTRICT # 3 Rich Job HUB International Mountain States Limited Vermillion, SD DISTRICT # 4 Amy Olson-Miller McKinneyOlson Insurance Sioux Falls, SD 2017 OFFICERS 2017 DIRECTORS PRESIDENT-ELECT Jesse Konold Key Insurance Inc. Mobridge, SD SECRETARY-TREASURER Janet Noteboom The Insurance Center Winner, SD IIABA STATE NAT L DIRECTOR Dan Maguire Black Hills Agency Inc Rapid City, SD DISTRICT # 5 Janet Noteboom The Insurance Center Winner, SD DISTRICT # 6 John Meyen Rosholt Insurance Agency Rosholt, SD DISTRICT # 7 Derrick Linn Leavitt Heartland Ins. Services Sturgis, SD DISTRICT # 8 Deana Taylor Agents of Insurance Rapid City, SD EXECUTIVE VICE PRESIDENT Carolyn Hofer IIASD Fort Pierre, SD 2
Carolyn Hofer, Exec VP What Does Your Agency Sell? The answer to this question can make or break your agency. Are you selling insurance ID cards and evidence of insurance for the cheapest price? That s all some insureds want, right? They really don t seem to care about coverage just proof of insurance so they can go on about their daily life. Do they even need an agent to accomplish this? What value does an agent selling pure price really provide that software cannot provide? Computer processing speed is so fast and powerful today that combined with massive advertising, the agent is unnecessary. This is a fact, not an opinion. no matter how many reasons you come up with. So how do we compete with this fast and powerful market? If agents want to make themselves viable, they must bring value to the table and that value must be more than price. The human value is knowledge. Fortunately, a great percentage of your clients still care about buying from a resource that offers personal knowledge. Unfortunately, too many agents don t think they have time for education; time to improve the one defense that sets them apart from the growing fast and powerful online insurance market. Most consumers want to buy from a professional who understands their needs and can match them to the prices AND products. They are looking for Risk Managers and independent agents need to embrace this market and gain knowledge required to meet it. IIASD Convention is coming up in just two weeks. There are multiple opportunities to gain knowledge and learn skills to give you the competitive edge all while you are building relationships with company and industry professionals. Monday afternoon s session specifically addresses Turning Price Shoppers into Business Relationships. Register now online at www.iiasd.org. Remember two free registrations per agency for Young Agents. Knowledge makes a positive difference. Gain and use knowledge or let the competition take advantage of your ignorance. 3
E&O EDGE Megan Linn, E&O Administrator Understanding E&O Risk in the Digital Age By: Larry Murrell Millennials have $200 billion in annual buying power and represent about a quarter of the U.S. population, according to Forbes. These trendsetters leave no market untouched not even the centuries-old insurance industry. Research suggests millennials are twice as likely to purchase, service and modify their insurance online or through other electronic methods such as texting, instant messaging or social media. All great service tools, but these new technologies also impact your duty and therefore exposure as an insurance agent. How does the potential for an errors & omissions claim increase with this shift from traditional inperson agent relationships to a more virtual marketplace? The simplest answer is best framed as a question: What is the millennial customer s reasonable expectation of coverage? When using less formal, millennialfriendly methods of policy initiation and service, two key elements are often missing: standard disclosure language and a clear record verifying the conversation. Coverage cannot be bound, modified or cancelled without speaking to a licensed representative that common industry refrain is often absent from texts, social media and instant messages. And without any disclosure to the contrary, a millennial customer may assert reasonable expectation of coverage. Even in the absence of coverage confirmation via reply communication, it remains to be seen whether the courts will absolve the agent from liability in these cases. In order to effectively protect yourself from a heightened duty and resulting E&O exposure in the face of this new wave of customers, consider adopting these steps as standard business practices: Build a strong social media presence. Maintaining an online presence is essential nowadays and it s just as important to not overpromise. Anything you promise online may be interpreted as your legal duty and standard of care. Use disclaimers. These are still relevant and important. Include standard disclosure language in all modes of communication and agency promotion. Manage expectations. Be explicit. Make sure the customer has a clear understanding of what type of communication will convey the message that coverage is now in place. Equally important: How will you communicate that coverage is not available, or that you need more information? Close the loop. When receiving communications from various media, it s essential to synthesize. Consolidate the feedback and instructions, then reconfirm the impact to coverage and effective dates with the customer. Be particularly communicative if you cannot procure the coverage or process the changes as requested. Document, document, document. Even if you receive what feels like informal communication, treat everything as on the record Facebook comments, text messages, Skype chats, Instagram comments and Twitter interactions. It should all become part of your file. No exceptions. Larrye Murrell is an assistant vice president, claims specialist with Swiss Re Corporation Solutions. Contact Info: Megan Linn E&O Administrator mlinn@iiasd.org Phone: (605) 224-6234 Fax: (605) 224-6235
Division of Insurance News and Views Technology Insurance Company Selected as New Servicing Carrier The Division of Insurance has selected Technology Insurance Company as the workers compensation assigned risk plan carrier effective Jan. 1, 2018. It will service the plan for five years. A competitive bidding process was conducted to select the servicing carrier using the services of the National Council on Compensation Insurance (NCCI). NCCI s web-based system distributes the Requests for Proposal (RFP) and receives bid responses to the RFP. The process began in May 2017 with a total of eight interested carriers. After NCCI reviewed the final bids, the field of entrants was reduced to four. On Aug. 21, the final bid results were presented to the Division. On Aug. 25, the Division approved NCCI s recommendation to select Technology Insurance Company as the new Servicing Carrier. The previous carrier, Riverport Insurance Company, will service all run-off business related to their previous contract. Division of Insurance Contact Information: Larry Deiter, Director South Dakota Division of Insurance 124 S. Euclid Ave. 2nd Floor Pierre, SD 57501 Phone: 605.773.3563 Fax: 605.773.5369 Big I Agent Leader Participates in White House Small Business Meeting BY NATHAN RIEDEL J. Dal Snipes, independent agent and Big I volunteer leader, was invited to participate in a White House meeting about issues important to small businesses. Snipes is president of Snipes Insurance Service in Dunn, North Carolina, serves on the Big I Board of Directors and is chairman of the Big I Finance Committee. The select group of Main Street America leaders heard from President Trump, Small Business Administrator Linda McMahon and Presidential Adviser Ivanka Trump. Also present were White House Chief of Staff John Kelly, Director of the National Economic Council Gary Cohn, Counselor to the President Kellyanne Conway, U.S. Sens. Marco Rubio (R-Florida) and Jim Risch (R-Idaho), and several members of the U.S. House of Representatives. The discussion, titled American Small Business The Engine of the American Dream, highlighted the valuable role that the Small Business Administration plays in supporting Main Street America. During his remarks, President Trump reiterated his commitment to instituting policies that enable small businesses to thrive, and pointed to the immediate impact that a strong economy will have on communities throughout the country. He concluded his remarks by saying, America is on the verge of a golden age for small business. The Trump Administration has made economic and regulatory reform a central focus of its first six months, and is now leaning on Congress to tackle comprehensive tax reform. In April, the White House released its tax plan, which proposes to cut the income tax rate for public corporations from 35% to 15% and reduce the top tax rate by pass-through businesses including many small partnerships and sole proprietorships from 39.6% to 15%. The plan would also cut the number of individual income tax brackets from seven to three, with a top rate of 35% and lower rates of 25% and 10%. The Administration and Republican leaders in Congress recently released a set of tax reform principles that they hope will provide a blueprint for legislation to move through Congress this fall. The Big I will continue working with the Administration and Congress as legislative action on tax reform ramps up. 5
Kayla s Technology Advice How Will 3D Printing Impact Insurance? Article By: CINDY DONALDSON & RICK MORGAN The manufacturing and health care sectors are already using 3D printing for prototyping and more. But the Agents Council for Technology (ACT) Changing Nature of Risk work group expects 3D printing to become increasingly commonplace as the price of the technology decreases and other industries embrace it. Also known as additive manufacturing, 3D printing is a process used to synthesize a three-dimensional object by forming successive layers of material under computer control. These objects can be almost any shape or geometry and are produced from digital model data, a 3D model or another electronic data source, such as an additive manufacturing file. This technology will significantly change product design, development and manufacturing as we know it especially as an enabler for the gig economy. The most affected industries will likely be automotive, aerospace, construction, engineering, food, home and medical, where 3D printing is expected to have a particularly positive impact regarding prosthetics and joint replacement. TED Fellow Skylar Tibbits next development in this space is 4D printing, where the fourth dimension is time. This emerging technology will make it possible to print objects that can reshape themselves or self-assemble over time. But today, the process is already democratizing manufacturing by enabling immediate, just-in-time product and parts creation, which significantly impacts inventory. The technology could reduce imports if American manufacturers are able to produce products locally and cost-efficiently, and 3D printing will soon change the way all product-based companies do business by enabling almost anyone will to become a boutique manufacturer. But this shift will have downsides for the economy, as well: It will force retail outlets that formerly sold mass-produced products out of business, and it s likely to lead to an increase in black-market items and forgeries. And by reducing the timeframe required for product development, prototyping and spec work, 3D printing will also disrupt product distribution and reduce labor and production costs rendering smaller manufacturers and engineers obsolete, and putting additional manufacturers and laborers out of work. Finally, because 3D printing is not currently regulated, anyone could potentially buy a 3D printer and produce items that could have sweeping negative consequences, such as weapons. Copyright and trademark infringement are also likely to result from 3D printing, since the technology makes replication easier than ever. What does all this mean for the insurance industry? Product liability for the printer itself, the material used in printing, or the intellectual property and software may trace back to the manufacturers of the 3D printers. But because the technology is still fairly new, the legal implications regarding product liability are still vague, especially for personal use. Beyond product liability concerns, 3D printing will increase risk opportunities and therefore premiums. It will significantly change underwriting and create new actuarial disciplines, and as companies become more technical, they ll be more likely to need a solid risk manager. 3D printing could also lead to more efficient claims processes as policyholders become capable of repairing and replacing their own broken or failed auto or home equipment. Finally, the technology is likely to result in greater opportunity for integration between carriers and vendors to connect to home 3D printers and automatically generate repair parts after diagnostics. Make sure staff at your agency is aware of the basic 3D printing concepts and applications, and review your current customer base for possible impacts. It s also a good idea to review your standard market policies to determine coverage gaps, and detail the challenges with each topic, such as liability for hacking, impacts of possible system or sensor failure, issues in the event of a power outage. The insurance industry needs to be very clear about potential product liability issues before we can properly communicate them to clients that use 3D printing in their businesses. It remains unclear how personal use of 3D printing will affect homeowner s insurance, specifically for liability. As an insurance agent, you can avoid an errors & omissions disaster by asking more in-depth questions about personal property and home-based business ventures. 6
More than 50 percent of employment-related claims filed are made against small businesses. Include EMC s Employment Practices Liability coverage to help protect your clients from employment-related risks they may face. It s just one of the many reasons policyholders Count on EMC. KATIE ILLIAN Commercial Lines Senior Underwriter EMC Omaha Branch A BETTER SOLUTION FOR EMPLOYMENT PRACTICES RISKS. 7 OMAHA BRANCH OFFICE Phone: 800-338-9735 Corporate Office: Des Moines, IA www.emcins.com Copyright Employers Mutual Casualty Company 2017. All rights reserved.
IIASD Trusted Choice Student Scholarships In our commitment to give back to our membership in a meaningful way and promote the Independent Insurance Agents Trusted Choice brand, IIASD will again be awarding five (5) scholarships for $500 each to student child of an IIASD member agent. Qualifications: Member applying is a parent or guardian in good standing with IIASD Recipient is a student who is currently enrolled in a higher education program at a college, university or trade school Needs to be attending college classes full-time. Drawing will be held at the IIASD Convention. You do not need to be present to win. Complete the nomination form (here). For more information, contact the IIASD office at 605-224-6234 or email klongbrake@iiasd.org. Scholarship Form 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 800-888-2829 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 527 8-17 For agent use only, not for use with clients. 8
Account Executive Wanted : Markel Specialty Commercial is seeking a highly-motivated, ambitious individual to join our sales team as Account Executives in our Omaha regional office to promote sales and increase market share in assigned territories. In collaboration with Outside Sales Managers and Underwriters, the Account Executive position works with our network of Independent Insurance Agencies to retain and increase their business, and to scout out new accounts. Claims Adjuster Wanted: Interested in a new opportunity with lots of challenges and captivating work every day? Claims Associates, Inc has a position open for a Claims Adjuster. Our work involves governmental liability, employment practice liability, as well as property claims. We investigate and analyze claims to resolve them. It is interesting work that involves thorough investigation, keen analysis, and good written and oral communication skills. The ideal candidate will be an analytical, detailed professional who can manage time and work on multiple projects while maintaining accuracy and service. If you have interest, feel free to send a cover letter and resume to Dan Eggers, Claims Associates, Inc., PO Box 1898, Sioux Falls, SD 57101 or deggers@ claimsassoc.com. To apply, email your resume, cover letter, salary requirements to markelhr_specialty@ markelcorp.com Agent & Customer Service Oriented Providing for Your Insurance Needs Personal & Commercial Automobile Farmowners/ Ranchowners Umbrella Liability MISSOURI VALLEY MUTUAL INSURANCE COMPANY Main Office in Burke, SD SERVING SOUTH DAKOTA FOR OVER 100 YEARS Personal & General Liability Homeowner & Mobilehome Fire & Allied Lines Contact Brady Peck 605-775-2636 Andy Kraus, CPCU Vice President of Agencies 800.742.7433 akraus@fmne.com 9
ACUITY Join Wally Waldhart in this wacky CE video! Acuity U films are available 24/7 and ABSOLUTELY FREE! With a multitude of course titles, we cover all your CE needs! Visit acuityu.com! 10 10
NOMINATE YOUR AREA FIRE DEPARTMENT FOR A $5,000 GRANT Fire Departments eligible for the two $5,000 grant awards must be volunteer fire departments located in the following counties: District 1: Campbell, Corson, Dewey, Edmunds, Faulk, Hand, Hughes, Hyde, McPherson, Potter, Stanley, Sully, Walworth District 6: Brown, Day, Grant, Marshall, Roberts, Spink *Nominating agent does not need to be located in one of the above counties Qualifying Criteria for the $5,000 Grants: Must be a Volunteer Fire Department in county designated above Volunteer Fire Department must be nominated and submitted by IIASD Member Agent Grant request must be for equipment limited to: o Bunker Gear o SCBA's o Radios o General Equipment Grant Information form must be completed with all requested information 2017 Fire Department Grant Application click here Nomination submissions will be reviewed by Fire Department Grant Committee and selection made by November 15th, 2017. Email Nomination Application to chofer@iiasd.org *Sponsored by IIASD Service Corp E&O Program 11
Featured Gold Partner CWG Advantage TM Strong, Local & Trusted Commercial Insurance Agribusiness Small Business Owners Contractors Wholesale Distributors Light Manufacturing www.cwgins.com 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. The precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. This publication provides general information only, is subject to change, is not legal advice, and is not a statement of contract. Copyright 2016 Continental Western Group. All rights reserved. 1815CWG-FDK-09-17 12
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 www.cwgins.com 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-02-16 13
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 612.564.1880 toll free 800.328.1693 fax 612.564.1881 Denver, Colorado 303.804.0200 toll free 800.888.9701 fax 303.804.0207 Commercial Professional Personal Brokerage Binding Risk Management Services 14
www.nwgf.com 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. pak@blackhillsagency.com 605.342.5555 EAST of the river Daschle Larsen and Taylor Jacobsen McKinneyOlson Insurance pak@mckinneyolson.com 605.335.7777 15
Featured Gold Partner It s easy to stay on track when you turn to Western. With underwriters who listen and a full complement of products to meet your clients commercial insurance needs (including Surety, Commercial Auto, and Workers Compensation), Western National is your one-stop shop for coverage that can help your clients businesses run smoothly. Help your clients stay ahead in the long run. Turn to Western. 16
Crop Insurance in the Crosshairs BY JEN MCPHILLIPS 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 605-880-5563. The Government Accountability Office (GAO) released a report on the cost of implementing the Federal Crop Insurance Program (FCIP) and it sounded familiar. Findings from the report harken back to the 2015 budget conflict, when the Big I and other crop insurance industry advocates fought to prevent a $3 billion cut to private-sector delivery of crop insurance. The GAO report recommends repealing the sideboard language in the 2014 Farm Bill which prevents the United States Department of Agriculture from taking money out of crop insurance through the Standard Reinsurance Agreement (SRA) process. Once the sideboard language is repealed, GAO recommends renegotiating the SRA to decrease the target rate of return for companies the exact proposal that was considered in 2015. Agribusiness Farm & Ranch Farm & Ranch Auto Personal Auto Excess Liability Watercraft Crop Hail Multi-Peril The report also suggests changing the amount of risk companies retain versus the amount the government retains. Finally, the report recommends adjusting the way administrative and operating costs are calculated to level out fluctuations in payments caused by changes in crop prices. Revising the administrative and operating cost baseline will have a direct impact on agent commissions. 17 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 402-450-3176 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. 2015 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) In response to the GAO study, the Big I released a statement with the DC Crop Coalition refuting the GAO s claims and highlighting the need for a strong crop program that is accessible to all farmers across the country. Last week, as a result of the GAO report, Rep. Earl Blumenauer (D-Oregon) filed an amendment to the House Appropriations package that imposes a payment limit of $125,000 on the aggregate of commodity payments, conservation payments and crop insurance premium discounts. The Big I has always opposed a cap on premium discounts because they can hinder a farmer s ability to purchase adequate coverage for their farm. The House Rules Committee is expected to meet early next week to develop a structured rule for the appropriations package that must be passed before the end of September. At this point, there is no guarantee that the amendment will be considered on the floor, since some members of Congress may be reluctant to reopen the Farm Bill in the appropriations process. The Big I and crop company partners prepared talking points and additional materials if it becomes necessary to engage Congress on this issue.
Entrepreneurial, Not Bureaucratic Niche Workers Compensation and Commercial Line Coverages for Main Street America Get started with an agency appointment application at amtrustappointments.com/sd1. A.M. BEST RATING OF A (EXCELLENT), FSC XV 18
IIASD Young Agents Attend National Leadership Event Eight South Dakota Young Agents traveled to Chicago last week to join with Young Agents from across the nation to share in learning how to become effective leaders in their industry. Their event started off with a cruise on the Chicago River and Lake Michigan where they met young emerging leaders from many other states. The event included sessions on Conversational Computing, Driverless Automobiles and other unique innovations in technology that will affect our industry. Breakout sessions allowed Young Agents to share their concerns about the industry and also ideas on how to network young agents in their state and across the country. Big I Leadership joined a Carrier Panel to discuss the future of the industry from a carrier perspective. Young Agents were encouraged by the common theme of the carriers as to the value of independent insurance agents and the nobility of the profession they have chosen. The conference concluded with a great motivational session and Idea Share. Young agents from South Dakota attending were: Ryan Karst, YAC Chm; Dashcle Larsen, YA Committee; Elizabeth Nepodal, YA Committee; Betsy Krohmer, YA Committee; Josh Gilkerson, IIASD Board Director; Courtney Hostetter; John Kannegieter and Allison Hamik. The conference included the Fall IIABA National Board meeting attended by Dan Maguire, SND; Jesse Konold, President Elect and Carolyn Hofer, Exec VP. 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 605-763-8077. 19
Use Promo Code 1594626 to receive your 15% member discount BIG NEWS!! A.D. Banker of the Dakotas has changed its name to 1st Dakota Insurance School. We continue to partner with IIASD to offer the following: Sandy Kost 1st Dakota Insurance School 2601 S Minnesota Ave Suite 105-244 Sioux Falls, SD 57105 605.271.4440 or 877.317.3087 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 our new website at www.1stdakins.com 20
FRAUD Convictions Two doctors were among the nation s largest prescribers of highly addictive painkillers, often spooning out the stuff to addicts and patients who did not need the drugs. Dr. John Patrick Couch and Dr. Xiulu Ruan ran a large-scale pill mill in Mobile, Alabama. They dealt in instant-release fentanyl, a breakthrough pain-killing drug for opioid-tolerant cancer patients. Yet Couch and Ruan prescribed it for neck, back, and joint pain to get illegal kickbacks from a drug manufacturer. Couch and Ruan were among the top prescribers of Subsys in the U.S., regardless of medical need. A workers comp dispensary also bribed Ruan $80,000 a month and Couch $20,000 a month for prescribing certain drugs with high reimbursement rates. Many patients rarely saw either doctor. Couch also had a nurse practitioner forge his name to 25,000 opioid scripts. Couch was handed 20 years in federal prison, and Ruan 21 years. They also must forfeit several houses, beach condos, and $5 million in various bank accounts as well as 23 luxury cars, including Bentleys, Lamborghinis, Mercedes, and Ferraris. A fire engulfed Chase Allen Carter s empty home. The Burkburnett, Texas firefighter claimed he lost a valuable BK brand, two-way talk radio in the suspicious blaze. Carter asked the captain of the local fire department for the serial number of his own BK radio. Carter planned to tell his insurer he lost the radio in the fire so he could get a new one, he brightly told the captain. Carter did not even own a BK radio. He filed a $2,500 claim for the radio. Investigators extinguished Carter s plot by proving the serial number from Carter s supposedly lost radio matched the captain s radio. Carter fessed up and pled guilty to insurance fraud. He received four years deferred adjudication community supervision. He also must repay Nationwide $2,000. Truck driver William Forte claimed he hurt his left arm and both hands on the job. He started receiving workers comp each week, yet secretly landed a job with the city of Amsterdam, New York. Forte kept telling doctors and his comp insurer that he was not working. Yet surveillance showed him using his supposedly injured arm to lift tools, paint, and climb ladders. Forte received three years of probation and must repay $15,000 of comp money. FRAUD CHargeS The 37-foot Boston Whaler powerboat drifted from its mooring on the Hudson River and was lost, Robert Jacob Bump told police and his insurer. The Red Hook, New York man received about $480,000 of insurance money. Turns out the boat never went missing. It was recovered in Lyndhurst, allegedly still in Bump s possession. He is charged with insurance fraud and falsifying business records. A Panamanian gangster was hired to kill Charles Dembrosky for life-insurance money, prosecutors charge in Schenectady, New York. Joevany Moon Luna shot Dembrosky, and passersby found his body near a bush. Larchand Lall hired Luna to carry out the hit. He ran a small construction firm. Dembrosky worked for him as laborer and roofer. Lall took out a life policy on him, naming Lall as the beneficiary. Luna and Lall are charged with first-degree murder. legislation Time is running out in New York as the statehouse closes in mid-june. Assembly and Senate bills would limit repair deposits to 50 percent of the contract; forbid roofers to act as illegal public adjusters; forbid contractors to dangle rebates to lure consumers for repair jobs; and let homeowners cancel contracts for unneeded repairs. Minnesota has a new law boosting civil penalties for insurance fraud. The commerce department can impose civil fines for attempted insurance crime. Adding the word attempted means insurers will not have to pay phony claims before the civil penalty is set. Scammers also would have to repay insurers for investigation costs. And fraud bureau investigators would be defined as peace officers so they can obtain and execute search warrants. 21
www.claimsassoc.com 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 Dave Johnston Amy Kvernmo Wendi Peterson Dave Sendelbach Jennifer Andrisen Selzler Bill Blackman Kay Greve Collin Karsky Chad Moore Kimberly Rausch Tim Wieker Adjusters Rapid City Download Western National s mobile app today in itunes or Google Play. John Keffeler Bruce Eleeson Case Managers Kelly Rud RN BA LNCC Jennifer Heinricy RN CCM Deb Whipple RN BA 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. 22
SAY HELLO TO Auto Physical Damage coverage available on an AGREED AMOUNT basis. Auto Liability primary for personal auto while involved in official Fire Department business. Commandeered auto coverage available for operations conducted and sanctioned by you. Guaranteed replacement cost on portable equipment, blanket coverage. No requirement for commandeering to provide coverage for portable and/or mobile equipment of others. Library of online courses designed specifically for Fire and EMS. 3 year rate guarantee. PROUD TO BE A GOLD SPONSOR OF IIASD EXCLUSIVELY OFFERED IN SOUTH DAKOTA BY: Fischer Rounds & Associates, Inc. Shane Lehrkamp slehrkamp@fischerrrounds.com tel: 800.456.2603 cell: 605.224.9223 We can help. 24/7 FIRE & WATER restoration services Sioux FallS 605-334-9716 yankton 605-689-2220 INTEK ClEaNINg & REsToRaTIoN www.intekclean.com A Member of OneBeacon Insurance Group These policies may be underwritten by Atlantic Specialty Insurance Company or OBI National Insurance Company. 23
Building Your Sales Machine By: John Chapin The how-to behind building a highly-effective, competition-dominating, sales juggernaut is actually fairly simple. What isn t simple is executing the steps and sticking to the plan. The dedication and resolve necessary to start and complete the process is where the majority of people fail. That said, if you re ready to skyrocket sales in your organization, here are the steps to get it done. Step 1: Super-intense Sales Training The most important tool a salesperson can have in their arsenal is great sales skills. Yet, while most organizations spend tens or even hundreds of thousands of dollars on a new producer, send them to product training, and load them up on technical skills, most balk at investing a fraction of that on the most important training: sales training. Poor sales skills is a key reason why most salespeople end up with mediocre or bad sales results. When considering how to train your people, let s start with the gold standard. In the best case your training would look like what my dad got from I.B.M. The first six months were spent at I.B.M. s main office where new salespeople trained half the time on product and half the time on sales. Everyone was given a sales play book that included all scripts for what to say and how to handle all sales situations. Next, that play book was memorized, practiced, and drilled until they had every single sales situation embedded in their brains. When my dad finally returned from training, he was with his manager and one of the top sales reps out in the field for three more months. They practiced, drilled, and rehearsed everything before, during, and after live calls. Finally, after nine months he was allowed to go on calls by himself. If you re like most people reading this, you don t have the resources of an I.B.M. and you probably can t invest nine months doing the training mentioned above. In that case, you want to do something similar to what I do when training brand new agents in the insurance industry. The first thing they do is spend two days in one of the top insurance producer schools. When they get back, I give them a play book with reinforcement CDs, all the scripts, and everything else necessary to handle all sales situations and scenarios they re going to encounter when they re out prospecting and chasing new business. They memorize these and we practice and role-play. After a very short period of time, once they have the basics down, they start calling on live prospects. They learn most of what they learn by getting their nose bloodied out calling on small accounts. After weeks of internalizing everything they learned in the first school and from me, I send them to a second school. We follow the same reinforcement process as we did above. Next, I send them to a third school and once again, the process is repeated. By the time they ve completed the above process, their sales skills are better than about 97% of the people they are competing against. As a result, because sales skills are the most important skills by far, they are doing a significant amount of business at this point. Step 2: Activity Although activity is actually more important than sales skills, it is second in chronological order. Before I send someone out to make calls, I want them to have a general idea of what they re saying so we train on sales skills first. 24
Step 2 is all about massive activity and tracking that activity. The insurance agents have a quota for new people they have to attempt to contact every week. At the end of the week I want: the number of new people called on, spoken to, prospects, appointments, follow-up calls on prospects not reached, sales, and several other items. While the most important tool a salesperson can have is great sales skills, the most important attributes a salesperson can have are: hard-working, persistent, and an ability to persevere. This is all about making a ton of calls and staying after it no matter how badly they get beat up. Step 3: Continuous practice and reinforcement of sales skills. Your people have to constantly be reading the scripts, listening to sales CDs in the car, role-playing, and otherwise practicing, drilling and rehearsing everything they ve learned. As a leader you want to test them by throwing objections and different situations at them along with going on some calls. It s also important to work on sales skills in sales meetings. This also means resending your people to training. An insurance agent will go to each of the producer schools three times the first three years they are working with me. Each time they learn something they missed the first time and the ideas they do remember get further reinforced and improved. Every time they come back there is an instant bump in sales. Step 4: Continue to improve and innovate. Once you find what works, don t rest on your laurels. Continue to look for ways to improve and get better. Look for better ways to compete, better answers to objections, better ways to communicate and build relationships, and in short, more effective and efficient ways to operate. Step 5: Remove obstacles from the sales process. Obstacles come in several forms. It can be support people not doing their jobs, inefficient systems or processes, tedious, unnecessary, extra items that you ask your people to do or even having salespeople doing items that support people should be doing. Keep an eye out for anything that seems to be taking your salespeople away from new business activities. Step 6: Remove negativity and slackers from the environment. The key to all of the above is to develop and follow a proven system that trains and reinforces sales skills and ensures your people are doing tons of the right activities the right way. 25 25
BIG I STATEMENT ON COURT DECISION TO STRIKE DOWN DOL OVERTIME RULE WASHINGTON, D.C., Sept. 1, 2017 The Independent Insurance Agents & Brokers of America (IIABA or the Big I ) today released the following statement by Charles Symington, Big I senior vice president of external, industry & government affairs: Last year the Big I, working with a number of other business groups, was the only insurance trade association to sue the Department of Labor (DOL) for promulgating an overreaching and overly complex rule on overtime pay. The Big I is pleased to announce that a motion for summary judgment has been granted to invalidate the rule. The court decision is a win for Big I members and their employees across the country and acknowledges the negative impacts the rule could have had on small businesses and their workers had it gone into effect. The Big I looks forward to continuing to work with the DOL and the Trump Administration to pursue appropriate small business regulation, and to ensure that any potential, future changes to the overtime rule are workable. 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 www.rascompanies.com 800.732.1486 26
NAIC s Cybersecurity Model Law Nears Final Adoption By Wes Bissett After nearly two years of extensive debate and development, the National Association of Insurance Commissioners (NAIC) began to formally take action on a new cybersecurity model law last week. The NAIC s Cybersecurity Working Group worked with the organization s Innovation and Technology Task Force to bring the sixth, most recent version of the proposal to a vote and approve a draft, which the NAIC s full membership is expected to approve during a conference call soon. At both the national and state association levels, developing this model law has been the focus of considerable Big I advocacy, education and grassroots attention from the beginning. The improved proposal considerably different, more reasonable and less onerous as a result of these public and behind-the-scenes efforts. For example, it does not include the broad scope or several troubling elements of the cybersecurity regulation promulgated by the New York State Department of Financial Services earlier this year. Most notably, the proposal would require insurance licensees with 10 or more employees including insurance agencies and insurers to establish an information security program that is commensurate with the size and complexity of the entity, the nature and scope of its activities, and the sensitivity of the guarded information. The requirements are flexible and risk-based, and each individual licensee s tailored security program would be required to respond to and mitigate the risks identified in periodic risk assessments the entity performs. Earlier versions of the model would have applied these mandates to all licensees and required them to adopt certain identified practices in all instances. One of the association s biggest concerns was the manner in which previous versions of the proposal imposed excessive burdens, strict liability and unrealistic duties on licensees in relation to their engagement with third-party service providers. The model now requires businesses to simply exercise due diligence and reasonableness in selecting third-party vendors that receive access to a licensee s sensitive information, and require those entities to implement appropriate measures to protect such data. Additional notable revisions include: Data security requirements now apply to a more specific universe of information. Licensees who suffer data breaches referred to as cybersecurity events in the model must notify their home state regulators within 72 hours of discovering the event. If the breach affects the records of 250 or more residents of any other jurisdiction, the licensee must also notify that state s officials. Any insurer who is the victim of a breach must also inform the insurance agents of record for all affected consumers. The model previously required a series of consumer notification requirements in the event that a licensee suffered a data breach. The provisions were extensive and, among other things, would have required licensees to offer free identity theft protection services to consumers potentially affected by a data breach. The NAIC removed all consumer disclosure mandates earlier this year instead, licensees must comply with existing notice requirements. The model no longer includes a provision that would have given regulators the open-ended authority, in the event of a data breach, to prescribe the appropriate level of consumer protection required and for what period of time that protection will be provided. The model no longer creates a private right of action that consumers could have used to bring litigation against licensees which fail to comply with the model s requirements. Model statutes of this nature are public policy recommendations to state legislatures and must be enacted by lawmakers in order to have the force of law. The NAIC intends for this particular model proposal to be ready for consideration in interested states during the 2018 legislative sessions. 28
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Extortion by computer is growing... about 400% per year Cyber criminals can lock computerized operations and hold the business and customer private information hostage, demanding a ransom to unlock them. Would you know how to keep your insurance agency s information safe -- and your customers -- if confronted with a cyber extortion demand? IIASD and Arlington/Roe have partnered to offer Cyber Secure. It is offered at a reduced rate to our members and includes coverages such as: Cyber Extortion Loss Sublimit Business Interruption Coverage Forensic Expenses to Investigate the Breach/Ransomware Event This member benefit is brought to you by IIASD and administered by Arlington/Roe. Member agencies, call us for cyber coverage today. Contact Name: Megan Linn Title: E&O Administrator Phone: (605) 224-6234 Email: mlinn@iiasd.org Contact Name:John Immordino Title:E&O Risk Consultant Phone: 800-550-9891 Email: jimmordino@arlingtonroe.com 29
2017 IIASD Annual Convention & Trade Show Downtown Holiday Inn 100 W 8 th St. Sioux Falls, SD October 1 st, 2 nd & 3 rd, 2017 EXHIBITOR REGISTRATION CLOSES ON SEPTEMBER 16 th Name Spouse (Print as you wish it to appear on badge and roster) Will spouse attend spouses function? yes no Agency or Company Name Address City State Zip Phone E-mail Address Check if you are: Agent Company Exhibitor Name GOLF TOURNAMENT Elmwood Golf Course 2604 W Russell St. Sioux Falls, SD 57104 Phone: 605-367-7092 Sunday, October 1 st, 2017 Shotgun start 10:30 AM 18 Hole Tournament; $80 per entry (Entry fee includes green fees, cart, and prizes) 18 Hole Avg REGISTRATION FEES Registration fee entitles registrants access to all exhibits, seminars, social events, meals, scheduled entertainment, hospitality suite, etc. See Agenda on reverse. Member or Company ($135) Spouse ($85) Non-Member ($250) Golf Tournament ($80) TOTAL ENCLOSED ALL Registrants must complete the individual event registration form- Page 2 Payment must be sent with this form. (Checks payable to IIASD) Payment: Check Enclosed; or VISA MasterCard American Express Card No. Card Veri cation No. Exp. Date Billing Address Cardholder Name Signature Independent Insurance Agents of SD, 305 Island Drive, Ft. Pierre, SD 57532 Phone 605-224-6234; Fax 605-224-6235; or Email klongbrake@iiasd.org Convention Hotel Downtown Holiday Inn 100 W 8 th St Sioux Falls, SD- Phone: 605-339-2000 (Tell them you are with the IIASD Convention.) REFUND POLICY: Full refund allowed anytime prior to September 16, 2017. After September 16 no refunds allowed. 30
2017 Convention Event Registration Name All registrants must complete the individual event registration below. Please indicate which events you plan to attend. This will help us plan more accurately. I plan to attend the following events: Sunday, October 1 st, 2017 [ ] 10:30 am Golf Tournament Shotgun Start Elmwood Golf Course Sioux Falls [ ] 12:00 Noon Registration Opens [ ] 5:00 8:30 pm Trade Show & Opening Dine Around [ ] 9:00 12:00 pm Social Networking Hospitality Room Monday, October 2 nd, 2017 [ ] 7:00 8:30 am Breakfast Morning Session Options: 8:00 12:00 pm [ ] Agency Valuation, Perpetuation & Succession 8:00 3:30 pm [ ] Crop E&O and Farm Bill Update 6 hrs Crop CE 8:30 11:30 am [ ] Personal Lines Gray Areas Homeowners 3 hrs P/C 8:30 11:30 am [ ] Young Agent Leadership Seminar [ ] 9:00 am Spouse Event TBA [ ] 12:00 pm 1:30 pm Award Luncheon [ ] 1:30 pm 3:30 pm Turning Price Shoppers into Business Relationships [ ] 3:30 pm Ice Cream Social [ ] 3:45 pm 4:45 pm Annual Business Meeting [ ] 5:00 pm 6:30 pm Agency Principal Social [ ] 5:00 pm 6:30 pm Young Agents Social [ ] 5:00 pm 6:30 pm Social Networking Hospitality Room [ ] 6:45 pm 9:30 pm Annual Banquet Deuces Wild! Dueling Pianos [ ] 9:30 pm 12:00 pm Social Networking Hospitality Room Tuesday, October 3 rd, 2017 [ ] 7:00 8:30 am Breakfast [ ] 8:30 11:30 am Construction and Insurance 3 hrs CE [ ] 8:30 11:30 am Personal Lines Gray Areas Auto 3 hrs P/C [ ] 8:30 11:30 am Life and Health [ ] 11:45 am Closing Luncheon 31
Independent Insurance Agents of South Dakota Golf Tournament Registration Form Where: Elmwood Golf Course 2604 W Russell St. Sioux Falls, SD 57104 Phone: 605-367-7092 When: Sunday, October 1 st, 2017 Time: Shot Gun Start at 10:30 AM 18 Hole Tournament; $80 per entry (Entry fee includes box lunch, green fees, cart and prizes.) Registration Form *Diamond Partners- 4 Free Golf Registrations- choose team- sponsor two holes (signage/pin prize) ** Platinum Partners- choose golf team- sponsor one hole (signage/pin prize) Contact Carolyn Hofer- 605-224-6234; 605-222-0649 or chofer@iiasd.org to arrange team and hole sponsorship Name/Agency Golf Handicap Total: 32
OBITUARY Roger Stordahl Roger was born February 17, 1941, to Norman and Mabel (Thompson) Stordahl in Sioux Falls, SD, joining his older brother Donald. Roger graduated from Washington High School in 1958 and from Augustana College in 1962 where he earned a business degree and met his bride Rosemary Alice Hill. Roger and Rosemary were married August 17, 1962, in Sioux Falls at First Lutheran Church. They settled in Sioux Falls and had two children, Tamara and Anna. Roger had more than 52 years of experience working in the insurance industry which took the family to Milbank, SD, Ankeny, IA, Council Bluffs, IA, Troy, OH, and finally to Madison, where the Stordahl s purchased First Madison Insurance Agency. They thoroughly enjoyed the work, the customers, and staff. Roger often commented about the agency that he finally figured out what he wanted to do when he grew up. Rog and Rose made lifelong friends wherever they lived. Roger s infectious laugh will be remembered by all. February 17, 1941- August 19, 2017 He especially loved living on the lake, taking the pontoon out, golfing, entertaining, and participating in many of the social activities the Madison community had to offer. He was a member Trinity Lutheran Church, Madison Golf Club and Lakes Golf Course. Roger was also a member and past president of the Lions Club and Madison Chamber of Commerce. Roger and Rosemary also enjoyed Sons of Norway, various area lutefisk dinners, and attending Augustana Vikings football games. Roger and Rosemary celebrated 50 years of marriage before Rosemary s death in 2012. 33
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