Amid an uncertain economy, the ARM National 2011 Conference served as a reminder that opportunity exists in the most difficult of circumstances. This year’s conference theme, The ARM Gateway to Opportunity, set the tone of the work sessions. With St. Louis and its arch as the backdrop, the ARM members converged on the city to discuss issues relevant and current to independent agency owners and producers. ARM Chairman Craig Payan and ARM Partners VP Scott Spangler opened the conference, which included a Board of Directors Meeting, Shareholders Meeting, and General Session. Daryl Zupan, President and CEO of AFCO Credit Corporation, kicked things off at the Welcome Reception at the 9th & Spruce Room of The Westin St. Louis that evening, which AFCO sponsored. ARM was fortunate to have some top talent providing detailed insight into today’s hot issues. The General Session speakers included:

• DavidEvans, Senior VP and Publisher for the IIABA, tackled the hot-button issue of health reform as it affects the agent.

• Dave McGurn, Arthur J. Gallagher & Co.’s Corporate VP, examined the current market conditions, showing agents which concerns are actually opportunities.

• Jack Burke, President of Sound Marketing, uncovered marketing challenges that agents need to make peace with.

• JoelCavaness, President of Risk Placement Services, Inc.., gave attendees a look at RPS’s unique value and what lies ahead for the company.

Breakout Sessions and speakers were as follows:

• American Modern Insurance Group’s Jeff Bell and SheriZukowski outlined the company’s products and services available to agents.

• Kevin Brady of Artex Risk Solutions provided insight into the company’s risk capabilities and what captive alternatives are available to agencies.

• KevinDoyle, VP of Arthur J. Gallagher & Co.’s Mergers & Acquisitions business unit, explained how agencies can increase their attractiveness to merger partners.

• Justin Gilmore, Executive Marketing Consultant for Assurant’s Farm & Flood division, gave a comprehensive overview of the National Flood Insurance Program (NFIP).

• Liberty Mutual’s ToddAckerman andJeffTangpresented an overview of Liberty Mutual’s Commercial Markets.

• EdLevy, VP of the Western Region Binding/Programs unit of RPS, outlined the company’s latest binding services and how to use them to grow business.

• KenLizer, President of EASiHR, explained how agencies can utilize the HR department to improve EPLI claims handling.

• Patti Smith and David Rudolph of AFCO/Prime Rate presented the opportunities that exist in premium financing.

Once again, the highlight of the conference was the Networking Group Discussion, where ARM agents gathered and shared ideas and experiences. However, the off-site event, sponsored by Risk Placement Services, Inc. (RPS) came in a close second as the ARM contingent attended a Cardinals baseball game at the Champions Club of Busch Stadium.

ARM Partners is already planning next year’s event, to be announced at a later date. Please consider attending and utilizing the resources and knowledge that ARM has to offer.

ANARMNEWS

No. 17 June 2011www.armiweb.com

ARM Gateway to Opportunity

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CraigPayanSpring is best described as the transition period between winter and summer. Any attempt to assign a date to the season is usually thwarted by late cold or early heat. Unfortunately, more often than not, spring brings unstable weather with it. This year was no exception and my thoughts and best wishes go out to those affected by the recent tornados and severe storms.

Spring is also a time of new life, growth and renewal for both plants and animals. We see it all around us as things begin to turn green and flowers appear. We also tend to use spring as an alarm clock to begin new projects around the house and in the yard.

The ARM organization works like that too. Our annual ARM Partners Conference is held each spring. It provides old and new friends a place and purpose to pursue new opportunities, fresh ideas and even pump new life into those programs that we are most familiar with. To all of you who were able to join us in St. Louis, thank you for attending. I especially want to thank those young agents who were there and added a breath of fresh air to the proceedings.

Welcome and congratulations to our two newest ARMI Board Members, Al Betz of Mississippi and John Sullivan of Oklahoma, who were elected at the Annual Shareholders Meeting in St. Louis. This is a new and hopefully exciting time for them to participate in the direction of our growing, national organization.

As for that growth, please know that our expansion efforts continue. We have had new activity and inquiries in several states and renewed activity in some others. Pennsylvania and South Carolina remain primary targets and the Southwest has again become a topic of discussion. A new initiative “New Members, New States” is also being investigated that is expected to jump-start our efforts countrywide.

Finally, I am happy to report that the ARMI Board voted to adopt a new policy promoted by the National Safety Council and other national organizations on distracted driving and the use of cell phones. According to studies, talking on cell phones while driving is involved in 25 percent of all crashes and 16 percent of fatal crashes. Cell phone users are four times more likely to be involved in injury crashes according to the Insurance Institute for Highway Safety. Further, employers are increasingly being held responsible for crashes involving employees who use cell phones while driving. As insurance agents and risk managers, ARMI felt it important to act. The policy prohibits the use of cell phones, either handheld or hands-free, while driving and encourages all ARM member agents to participate. Keep your eyes open for more information, including specimen policy wording and an implementation kit. This is serious business and requires our attention.

Regards,

Craig Payan, Chairman – Associated Risk Managers

Message from the Chairman

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ThatFirstConference Perhaps the true power of an ARM membership doesn’t sink in until you attend that first national conference. For three young ARM agents, the potential afforded an ARM affiliation was readily apparent as each attended the national conference in St. Louis.

This year, a number of new ARM agents made their way to the conference. For some, it was an eye-opening experience where the true value of an ARM membership became obvious. For others, it was a chance to embed themselves into the ARM culture and find resources from those who have been there.

Brandy Brown, an agent with RMD/Patti Financial Services in Richmond, Indiana, came back from the conference inspired and excited about the potential. It was her very first ARM meeting, as well as her first convention. For her, the roundtable discussions were her biggest takeaway. “Everybody brought up things that worked well in their agencies or what doesn’t work and how they dealt with that.”

Even Brandy’s own experiences were able to help established agents and principals. “They got to hear a perspective on what I expect from my principals that maybe their agents wouldn’t say to them.”

For Alan Case of Lowry-Dunham, Case & Vivien in Slidell, Louisiana, he had found it hard to wrap his mind around the concept of ARM. Alan, who is relatively new to the business, did struggle with ARM’s benefits. “The best thing was it gave you a chance to see how everything links together and who is involved. It cleared up a lot of confusion on what ARM is.”

Alan’s mother, Brenda Case, is a veteran ARM member and is Vice Chairman of ARM, so there were few surprises when he attended the conference. Still, he has come to his own conclusion on what ARM’s value truly is: “It’s a network of people that may not have had opportunities otherwise that, by getting together, are able to do a lot more than they can do separately.”

Erin Sinclair, agent with The David Agency in Elmhurst, Illinois, is newly licensed in P&C and life/health. As a new agent, when the email came inviting young agents to the conference, she accepted immediately.

She didn’t expect much, but was pleasantly surprised. She enjoyed hearing the veteran agents discussing trends in the industry. “As an insurance agent and newer P&C agent, I was inspired to continue doing what I’m doing. I made a lot of great contacts and came away with good information.”

Probably her most insightful experience is a message all young ARM agents can benefit from. “There’s so much we can do, and the older generation is willing to grow us and groom us, and it’s all at our fingertips if we’re willing to work hard for it.”

Young ARM Agents:

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We’d like to take this opportunity to extend our thanks and appreciation to this year’s meeting sponsors. Sponsorships are a key element of a successful conference. Please continue to build business relationships with these companies . . .

AFCO Premium Finance

Risk Placement Services, Inc.

Liberty Mutual – Commercial Markets

American Modern Insurance Group

Assurant Specialty Property/American Bankers Ins. Co.

The ARM Gateway to Opportunity – St. Louis 2011

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2011-2012 ARM Board of Directors

We are losing one Board member, but gaining two in his place! We’d like to thank John Nave (Huntington Insurance/Westerville, Ohio) for his contributions and efforts during his past two-year term on the Board of Directors, and for his leadership as chairperson of the Marketing Committee.

Taking his place will be John Sullivan, President of Sullivan Insurance Agency in Ardmore, Oklahoma. John has been a long-standing mem-ber of ARM and we’re happy he will be joining the ARM Board of Directors. John also currently serves on the Board of Directors of ARM of Mid America and the Professional Insurance Agents of Oklahoma, as well as Organizer & Director of American Bank of Keller, Texas.

Also joining the Board is Albert Betz with Wel l ington Associates, I nc. of Gul fpor t , Mississippi. Albert currently serves on the Board of Directors of ARM South and is a member of the Independent Insurance Agents of Louisiana and Mississippi as well as many other professional organizations. He will also serve on the ARM Future Directions Committee.

Welcome John and Albert!

ChairmanRegion3Craig PayanPayan, Alberts & ThompsonOrland Park, IL

ViceChairmanRegion4Brenda CaseLowry-Dunham, Case & VivienSlidell, LA

ImmediatePastChairmanRegion3Larry McSpaddenBeauchamp & McSpaddenWarsaw, IN

SecretaryRegion3Bob WeaverJackson, Dieken & AssociatesWestlake, OH

TreasurerRegion2Dick SimmonsARM of VirginiaFalls Church, VA

Region1Kelly SheaLandmark GroupRochester, NY

Region2Priscilla HottleHottle and AssociatesWarrenton, VA

Region3(Rep. for State Execs)Steve StewartARM of IndianaFort Wayne, IN

Region4Albert BetzWellington AssociatesGulfport, MS

Region5Jon MoonMoon-Baker AgencyAda, OK

Region5John SullivanSullivan Insurance AgencyArdmore, OK

ARMStrong as MANY. Powerful as ONE.

Associated Risk Managers

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Upcoming 2011 ARM Regional Meetings

June27ARMofVirginiaCharlottesville,VA

July6ARMofNewJersey

July7ARMofConnecticut

July14–15ARMofIndianaSummerOuting

July27–28ARMofNorthCarolinaPinehurst,NC

August11ARMofConnecticut

August18ARMofGeorgia

August24–25ARMofIllinoisVendorsDay

September8ARMofConnecticut

September14ARMofNewJersey

September14–15ARMofIndianaIndianapolis,IN

September15ARMofGeorgia

September15–16ARMNortheastAnnualMeetingMoheganSun(CT)

September26ARMofVirginiaCharlottesville,VA

October7–8ARMofOhioLogan,OH

October13ARMofConnecticut

October17–18ARMIFallBoardMeetingKansasCity

October18–19ARMofMidAmericaAnnualMeetingKansasCity,MO

October20ARMofGeorgia

ARMofIllinoisAgentReceivesAwardLong time ARM agent Larry Forsberg of the Pardridge Insurance Agency of Sycamore, Il-linois is shown sharing his 2011 Prairie State Insurance Cooperative Producer of the Year Award with Dr. Julie Ann Fuchs of Kaneland CUSD 302. The PSIC is a cooperative all lines insurance program that includes complete risk management services to K1through K-12 public schools in Illinois. Started in 2006 the ARM/Arthur J. Gallagher & Co. sponsored PSIC currently writes 93 school districts and is on pace to exceed 100 by the July 1st renewal. If any other ARM groups would be interested in creating a similar program for their state, you can contact Bob Pegg at ARM of Illinois.

Bob Pegg can be reached at telephone 312-566-9766 or e-mail peggatarm@sbcglobal.net

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News in the World of ARMARM of IllinoisBob PeggARM of Illinois closed a successful 2010 with $28 million of partner program business. We encourage our members to support our program partners, which is very important in today’s soft market cycle. I'm proud of the job our Illinois members do in supporting that effort.

In 2011 we have aggressive plans. First, we think it's time to prepare for a tougher marketplace. We have plans to create a rent-a-captive facility for our members and are now working with two carriers to introduce this facility sometime in 2012. Also, we are working with one of our current partners to create another specific niche program in Illinois. We submitted six potential program ideas to them and met with them in June.

Another goal is to add new members in 2011. We have spots to fill in Peoria and downtown Chicago. New agency appointments have been a tougher sell during tougher times, but we are confident that we can fill those spots this year.

ARM of IndianaSteve StewartThere is plenty of activity within the Indiana ARM membership. Larry McSpadden, past Chairman of ARM International and owner of Beauchamp McSpadden Insurance in Warsaw, Indiana, is now President of ARM of Indiana. McSpadden replaces Rick Neirsbach of RMD/Patti Insurance.

In other news, ARM of Indiana is pleased to announce its Annual Summer Outing on Thursday, July 14, in Lake Wawasee, Indiana. This year’s outing is hosted by Salem Insurance Agency, Goshen, Indiana.

Finally, ARM of Indiana has set its Fall General Meeting and Trade Fair for September 14-15. The event will be held in Indianapolis.

ARM of Mid AmericaJanet RogersARM of Mid America continues to move forward with the expansion of our master contract program by adding Chubb Insurance to our portfolio of markets. We continue to offer quotes through seven aggressive workers compensation outlets, and production has grown rapidly in 2011. The personal lines market continues to be a challenge, with many markets halting new business production and changing coverage/deductible options. Also, for four years, Mother Nature hasn’t been kind to this region – who would think wind and hail could change a whole economy?

Our region continues to look for expansion opportunities for new members in both Kansas and Texas. Our biggest challenge is also our greatest opportunity – to educate producers and staff at ARM member agencies to optimize the many special relationships and exclusive deals available. Oftentimes, the information doesn’t reach the right person at the agency, and the opportunities are missed. Our goal is to correct that.

ARM Northeast John McLaughlinDespite agents still experiencing a soft market in the great Northeast, we at ARM Northeast were successful with our 2010 profit sharing agreements and with our ARM Northeast States company contracts. We are looking to expand on this success in 2011.

In other news, several ARM Northeast Agents attended the ARM National meeting in St. Louis. We all felt it was a good, worthwhile conference. Also, ARM Northeast agents are planning for our annual regional meeting to be held in September 2011.

We have put together a planning committee made up of each of our states’ presidents. Our goal – to become stronger as a regional group over the next few years. We will be talking about our biggest challenge in 2011 – maintaining and growing our agencies’ premium volume – which we intend to do by adding more ARM agents to our group.

ARM of OhioTerry QuestedAgency acquisitions continued in our region. Founding ARM Ohio member Pease Kerr was acquired recently by another member, Insurance Partners of Westlake, Ohio. Other members are now affiliated with banks. Those affiliated with regional banks have remained committed ARM members.

Banks present interesting dynamics for insurance operations and other ARM members in the region, especially for individuals working for these new operations. As one quipped, “I’ve been an independent agent my entire career; now I have a boss.” Interestingly, all have found new opportunities through cross-marketing of services and customers. In some cases ARM Ohio has several new locations contributing growth to endorsed carrier and broker programs.

Banks in insurance is a constant debate; independent agencies need to address all the realities. Some clearly aren’t setup to operate agencies well. In Ohio, some banks are selling insurance operations, sometimes back to the individuals they purchased them from. Banks shedding insurance operations provides agencies, like ARM members, opportunities for growth they might not otherwise be able to duplicate.

ARM South Danny GleasonARM South is actively looking for more opportunities for our members, not only from the facilities offered through Risk Placement Services (Liberty Mutual Insurance Co.), the habitational program through RPS Atlanta and other A. J. Gallagher and Co. facilities, but through other markets, as well. Our members have been busy with tornado and the flood damage along the Mississippi River, but we continue to see opportunities arise in our market place.

Beazley Insurance Group is offering coverage for Cyber Liability, a hot topic area. American Bankers Flood program is getting a lot more business due to flooding along the Mississippi River. Also, we are looking to expand our casualty writings with American Modern Insurance Group. Their Collector Car Program rivals all others in that niche and, along with Motorcycle and Boat-owners coverage, offers agents the potential for enhanced commissions, plus provides their clients great coverage from a very dependable company.

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By Terry QuestedARM is looking better every day. ARM International is proud to announce the upcoming launch of its newly revamped website, ARMIWEB.com, coming this summer. Like many websites, ARMIWEB.com has morphed from simple brochures into a truly interactive communications tool. ARMIWEB.com will be a comprehensive resource for industry professionals and the general public to learn about Associated Risk Managers.

The ARM Communications Committee was tasked with bringing more clarity to the ARM story and improving how ARM promotes itself. The new website introduces features like videos, testimonials and search capabilities. Nationally, ARM agencies employ upwards of 7,500 licensed insurance agents. TheARMIWEB.com Intranet will provide a private forum where anyone working for ARM members can interact, communicate, and disseminate information in a modern, business networking environment.

As one ARM agent said, “I always wished there was a simple way to query other agents about markets, or simply finding the right person at an ARM resource to exploit.” ARMIWEB.com incorporates discussion threads, member groups, and proprietary information about working with ARM endorsed facilities and programs. Everyone working for ARM member agencies will be encouraged to sign up as a user. All users can adjust their profiles to contain as little or as much information as they desire. Most importantly, they do so in a private environment where there is no phishing, no third-party vendors and no advertising spam.

Modeled on the Intranet capabilities of the ARM Ohio website, you can see a short demonstration of the communications facilities here: http://www.armofohio.com/files/Public/ARMVideo.wmv

Larry McSpadden, Sr. V.P., Beauchamp & McSpadden, Warsaw, IN and past ARM International Chairman comments: the website provides …"easy access to information about our special ARM markets, interest groups and discussion boards for easy sharing, plus a repository for all other things ARM — this is a real step forward. We'll be working through all the State Executives to introduce and encourage use by all members. The tool set in the site architecture is so flexible we may not even appreciate how all this will be used for members' benefit in the months to come."

For more information, contact Terry Quested at ARM of Ohio or Scott Spangler at ARM Partners.

Terry Quested is the Executive Director for ARM of Ohio with offices in Columbus, Ohio. Terry can be reached at: 800-336-2228 or e-mail: tquested@armofohio.com

By Tom GlaaserWe are now officially in the 2011 Hurricane Season. In addition to Flood coverage, another important component to consider is the regu-lar Property policies’ Wind coverage and the need to specify and document key details in the Proposal:

• What is the specific wind deductible: 2%, 3%, 4%, 5%, flat, or something else?

• Define what is required by the policy language to trigger the wind deductible (i.e., named storm, CAT number, etc.). Determine if a tornado would trigger the deductible.

• How is the deductible applied? Per location, per building, per the total schedule?

• Is Business Interruption together or separate?

• Does the coverage apply per schedule, per total insured value, per total insurable value?

Each one of these items is different — and mean something different. None of these policy language nuances will matter if there is not a loss, but they will matter tremendously if there is a loss. That is why it is critical that these key details are included in the proposal, and that they mirror the coverage as stated in the policy.

Tom Glaaser is Assistant Vice President of BSD Risk Management at Arthur J. Gallagher & Co.

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21st Century Business Communications & ARM

The E&O Corner . . .

ARM Associated Risk ManagersStrongasMANY.PowerfulasONE.

ScottSpangler 630-285-4324 | scott_spangler@ajg.com RoseMarieRigoni 630-285-4211 | rose_marie_rigoni@ajg.com

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