Missouri Agent March-April 2011

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What do your clients expect for their Work comp needs?

the mem differenceYour clients demand quality workers compensation service and expertise at a competitive price. And Missouri Employers Mutual offers it, now with even lower rates than 2010.

A host of top classes earn MEM’s most competitive rates—some with significant reductions. And small businesses—those with premium $5,000 or less—qualify for rates 15 percent lower than standard rates.

MEM also continues to write good business in nearly all 600 NCCI class codes, with rates lower than the assigned risk pool in every class we write.

Competitive rates, coupled with MEM’s exceptional service and proven experience as market leader, give you a workers compensation value unbeatable in the Missouri market.

Let us offer you a competitive, underwritten quote today. Log in to iNet at www.mem-ins.com to get a Quick Quote. For more details, contact your Business Development Manager or Customer Service at 1.800.442.0593 or [email protected].

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march/april 2011 missouriagent 3

contentsmissouriagent

3315 Emerald Lane, P.O. Box 1785, Jefferson City, MO 65102-1785 • 800-617-3658 in Mo. Phone 573-893-4301 • FAX 573-893-3708E-mail: [email protected]: www.missouriagent.org

Publisher Larry CaseEditor Amy J. HoffmanAdvertising Manager Amy J. Hoffman

Officers of the MAIAPresident Scott Brothers, CIC, JoplinPresident-Elect Byron Robison, SpringfieldVice President Doug Clift, CIC, St. LouisSec’y/Treasurer Brian Harrison, CIC, Columbia IIABA National Director Mitchell C. Mills, ClintonPIA National Director Richard Minor, CIC, Hannibal Past President Belinda Brenizer, CIC, Edina

Board of DirectorsRegion 1 Ricky Baker, CIC, ChillicotheRegion 2 Steve Heying, CIC, St. PetersRegion 3 Chris Rupp, LUTCF, CIC, LibertyRegion 4 Wil Turner, CIC, BeltonRegion 5 Rick Naught, CIC, CPCU, Jefferson CityRegion 6 Jim Baxendale, CPCU, St. LouisRegion 7 Greg Rebman, CIC, St. LouisRegion 8 Jane Dobrinic, CIC, CPCU, St. LouisRegion 9 Randy Smart, MarionvilleRegion 10 Kevin Krueger, LUTCF, BolivarRegion 11 Steve Rackley, CIC, CISR, GainesvilleRegion 12 Randy Baker, KennettAt-Large #1 Shane Davolt, Kansas CityAt-Large #2 Ted Schroeder, UnionAt-Large #3 Dean Mandis, WildwoodCo. Rep. Matt Hartigan, Overland Park, Kan.Co. Rep Tony Weishaar, Maryland Heights

Staff of the MAIAExecutive Vice President Larry CaseVice President of Operations Sheryl Van LeerVice President of Marketing Lindsay Schmidt, AIPInsurance Services Manager Leona LoethenEvents Manager Jeanne Blomberg, AIPDatabase Administrator Laura BerendzenCustomer Service Representative Theresa Flippin, AIPCustomer Service Representative Monica MizeEditor Amy J. HoffmanMembership Services Representative Kelli Findley, AIPEducation Director Emily KoenigsfeldAdministrative Assistant Dawn ChristianEducation Coordinator Julie Case

MISSOURI AGENT (USPS 709-210) is published bimonthly by the Missouri Association of Insurance Agents, 3315 Emerald Lane, Jefferson City, MO 65109, phone 573-893-4301. Periodicals postage paid at Jefferson City, Mo.

The MAIA does not necessarily endorse any of the com-panies advertising in this publication. Subscription rate for members is $25 per year, which is included in dues.

Address & Other Changes

Notify the MAIA if you change your address, change your agency name, or drop or change producers (who are voting members of the association). Write to MAIA, P.O. Box 1785, Jefferson City, MO 65102-1785 or e-mail [email protected].

POSTMASTER: Send address changes to Missouri Agent, P.O. Box 1785, Jefferson City, MO 65102-1785.

© 2011 Missouri Association of Insurance Agents

On the Cover: It takes a team to win the race, and MAIA spells out the associate member roster in a directory on pages 24-28.

Volume 20, No. 2

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Special Focus: Company-Agency RelationsAssociate Members: Companies 24Associate Members: Vendors, Wholesalers 27

Staging Change and Changing Stages 7Does Brand Matter? 11Capitol Update 12Agents Attend State, National Legislative Events 14Agency Planning Includes Your Carriers! 162011 Young Agents Conference 18CIC Educating Insurance Professionals in Missouri Since 1976 37

AdvertisersACUITY 29America First Insurance 37American Mining Insurance Co. 13Amerisafe 47AmTrust North America 16Barton Mutual Group 17BC&M 34Big “I” Flood Program 19Bituminous Insurance Cos. 22BMI Cos. 23Brant Interactive 42Burns & Wilcox 32Capital Premium Financing 31EMC Insurance Cos. 6FCCI Insurance Group 15

DepartmentsFrom the President 5The Legal Side 9Technology 20Missouri News 31Technicalities 33Regulatory Actions 39

From the DIFP 41Errors & Omissions 43Company Partner News 45Agency News 46Classifieds 46

Haulers Insurance Co. 38J.M. Wilson 45MAIA Education 36MAIA Partners 48MEM Insurance 2Meramec Valley Mutual 14M.J. Kelly Co. 12Missouri Rural Services Corp. 4Philadelphia Insurance Cos. 30Premium Financing Specialists 16Ringwalt & Liesche 23SECURA 8Surplus Lines Association of Mo. 40Utica National Insurance Group 10West Bend 21


It’s Not Politics; It’s Your LivelihoodBoth your state and your national associations work hard to protect your business, inform elected officials about the impact of proposals on you and your clients, and help elect candidates who support your interests.

MAPAC (Missouri Agents Political Action Committee) de-pends on your donations to accomplish our goals in the Missouri Legislature. InsurPAC depends on your dona-tions to accomplish our goals in Congress.

Visit www.missouriagent.org for information on how to make your contribution today.

Support our PACs: It’s a matter of survival and of conscienceIt is appallingly simple – and alarmingly pos-sible: Our industry remains a single pen stroke away from being legislated out of existence.

The recent ruling against the national health care bill is a good sign, but by no means is it a battle won. We may well eventually owe U.S. District Judge Roger Vinson a huge debt of gratitude for his 78-page, on-target ruling that overturned the Patient Protection and Affordable Care Act. His excellently researched decision told Congress just why this bill cannot exist under the U.S. Constitution.

The true tactics to resolution – and to vic-tory – are quite clear. We must intensify our already vigilant stance against the increase in government seizure of power over the pri-vate insurance sector. We need to be heard in Washington, D.C., and in Jefferson City. We need to be respected at both the national and state levels.

We work on behalf of the citizens. We, too, represent the people. MAIA continually works to support laws – improvements – that will benefit the insurance industry and our clients. And, of course, our state group will participate in the 2011 Big “I” Legislative Conference and Convention in April. Those aren’t the venues to which I now refer.

Our voices, which represent the best interests of your clients, must be heard. They must be clear, correct and loud. By supporting key can-didates, InsurPac and MAPAC help to transmit your voices, to carry your vital messages to the legislatures. The urgency and importance of utilizing and supporting those valuable and influential political action committees never have been more important. This cannot be overstated.

We all, individually and collectively, must let our lawmakers know in no uncertain terms that the insurance industry’s profit margins and profitability no more deserve to be held up to public scrutiny than do those of any other private business and that we have nothing for which to apologize. We need to make it crys-tal clear that we are not a public or state-run entity, nor should we be, although that is the impression broadly implied by those who seek

undue and unprecedented government regula-tion and scrutiny.

I would like to thank Jo Ann Evans, former MAIA president and current chair of the MAIA PAC Fundraising Committee. Through her efforts and those of her committee, we reached our MAPAC goal of $50,000 last year. Well done. InsurPac lagged behind, well short of our $25,000 goal.

I ask you to strengthen our positions by in-creasing your support of both IIABA’s InsurPac and MAIA’s MAPAC.

Already, our state’s meager contributions have yielded remarkable and positive results. And compared to entities such as trial lawyers, banks and pharmaceutical companies, we have barely joined the political action table. It is time to up our presence significantly.

The concept is not a new one. “Just because you do not take an interest in politics, doesn’t mean politics won’t take an interest in you,” said Greek statesman Pericles in 430 B.C.

MAPAC accepts corporate and individual contributions. InsurPac only accepts personal donations.

These PACs are invaluable. Empower them. Use them. Support them. Help us to be heard now, while we still can. If we don’t, no one will.

Scott BrothersMAIA president

fromthepresident

Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

I’m celebrating our 100th year by planning for our next 100 years.

Jason Bogart, CPCU, ARM, Vice President of Branch Operations

Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you profitably and efficiently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.


Kansas City Branch: 800.821.4702 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

I’m celebrating our 100th year by planning for our next 100 years.

Jason Bogart, CPCU, ARM, Vice President of Branch Operations

Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you profitably and efficiently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.

Staging change and changing stagesAnyone who has been involved in the insurance industry more than five minutes has more than a passing understanding about dealing with change. So, one would expect that impacted in-surance companies and professional insurance producers will be well prepared to assist con-sumers, evaluate options, and make informed decisions as the Patient Privacy and Affordable Care Act is implemented.

Since its passage, we have done our best to identify and communicate the changes antici-pated with implementation. Most recently, we have spent significant time working to make sure that legislation to create a state health exchange is well thought out and con-templates challenges certain to arise during implementation.

In the business world, we generally antici-pate change and incorporate expectations of change into business plans. Early in my career, I remember attending workshops on dealing with change and learning about SCM, or the “Stages of Change Model,” which defines six stages of change and behaviors associated with each stage.

So, what model or process are the federal government and the Department of Health and Human Services using to implement PPACA, and at what point is the current stage? Rather than utilizing a structured SCM, one might best describe the government’s plan as one of “controlling chaos.”

Rather than following a plan and trying to logically structure the process and minimize the impact on consumers along the way, HHS has pretty well tried to throw ideas against the wall until something sticks. In addition, they have implemented a system of waivers and exceptions to allow non-compliance with their directives when compliance becomes overly disruptive or impacts a politically influential group. Finally, they have created a shell game

with divisions and bureaucracies within HHS to confuse and confound those who would at-tempt to comply or make sense of the process, or more importantly from their perspective, usurp, erode or eliminate their authority by amending or de-funding the most illogical and futile portions of the act. In essence, they seem more focused on simply “changing the stage” on which we play or “staging changes” to pro-tect their turf.

Having incurred the frustrations with the fed-eral authorities, it is clear that, whether or not you agree with what Congress has wrought, if health insurance exchanges are to be a part of our future system, it will be far preferable to deal with state health insurance exchanges than a single federal exchange, thus our dili-gent focus and involvement in this process.

Of course we are not the only interested entity, and formulation of legislation has included interaction and input from other interested players, including: the Department of Insurance, Financial Institutions and Professional Registration; health insurance carriers; medical providers; business organiza-tions; and consumer groups. Our dialog with other stakeholders has been good, and much progress has been made. I would expect that legislation will have been drafted and filed by the time you read this. However, that does not mean that there have not been frustrations.

The motives and positions of various parties involved are all rather transparent. Businesses want health insurance plans available at rea-sonable costs; insurance companies want to sell policies; medical providers want to get paid for their services; and producers want to provide consumers with professional counsel and advice and to be paid for their services. However, cer-tain players continually try to avoid the obvious and prefer to cloud the issues.

Larry CaseMAIA executive vice president

continued on page 30

myturn

Today, the faster you move, the more likely you are to succeed. Agents know this. That’s why so many

choose SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.

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Several recent trends in the delivery of insur-ance products, which have resulted from either major stories on sales processes or from legisla-tive initiative, have put considerable pressure on the traditional commission for sales model. These trends may be the impetus for more pressure for certain sales activities to be pro-cessed through producer service agreements.

Stories on possible conflicts of interest by major brokers directing business to companies offering bonuses or potential additional com-missions led to an examination of all commis-sion arrangements, and especially to contin-gent commission payments in the property and casualty fields, with the New York Insurance Department and New York agent associations still in substantial disagreement on the proper handling for such commissions.

More recently, the National Association of Insurance Commissioners’ recommenda-tions to the U.S. Department of Health and Human Services about calculations of the re-quired Medical Loss Ratios under the Patient Protection and Affordable Care Act led to considerable debate about whether producer commissions should be included in the admin-istrative cost portion of the calculations. Both stories put pressure on insurers to limit either commissions or contingent commissions as part of the compensation packages for producers.

The alternate fee-for-service model of pro-ducer compensation has always been a signifi-cant option for larger brokers providing cover-age to large clients. In many of those situations, the producer was working with the insured’s risk management professional who had signifi-cant experience and understanding of insur-ance as a risk management tool.

However, these new trends may mean that smaller client insureds will have coverages where the fee-for-service model now makes more sense, and those client insureds will likely not have a risk management professional to work through the details of the risk manage-ment or of the fee-for-service arrangement. Thus, producers may be giving an explanation

to more clients as to the various methods by which the producer may be compensated and why the producer is proposing a producer ser-vice agreement for a specified fee in addition to, or in place of, a commission.

Producer service agreements are governed by the regulation at 20 CSR 700-1.100. The reg-ulation provides a form of the agreement that serves as a safe harbor for any agreements a producer might enter. A single agreement may address multiple contracts of insurance with one insured but must list all policies to which the agreement applies. If done prior to know-ing a policy number, then it should describe the coverage and the insurer. The agreement should describe the services the producer is providing. The producer must retain a copy of all agreements for three years.

If the agreement provides compensation in addition to commission, it may be difficult to separate what services are for commission and what services are for the service fee, a situa-tion likely to increase as commissions face more pressure from market forces or regulatory limi-tations. Nothing about the regulation prohibits the insured from agreeing to any amount in addition to the expected commission, but for there to be an avoidance of misunderstanding between the producer and insured, the best practice will be for the producer to explain to the client the various manners in which the pro-ducer may earn fees on particular coverages. The producer service agreement then becomes the client’s consent and acknowledgment that a fee is acceptable to the client.

Producers who have never considered the use of producer service agreements in the past, having been satisfied to receive the ex-pected commissions from the sale of the in-surance, may find that in the near future such agreements are necessary to receive the levels of compensation currently received, or that such agreements will be the best way to man-age both the compensation of the producer and the cost of coverage for the insured.

Producer service agreements: wave of the future?

Lewis E. Melahn, J.D.

Lewis E. Melahn is a practicing attorney in Jefferson City. He provides free legal consultation to MAIA members on a limited basis. He served as the director for the Mis-souri Department of Insurance from 1989-1993. You can contact Lew Melahn at 573-636-5057.

thelegalside

Today, the faster you move, the more likely you are to succeed. Agents know this. That’s why so many

choose SECURA to help their business grow. Call 1-800-558-3405. Write your own success story.SM

Success is fi nding an advantage.

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10 missouriagent march/april 2011

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Continuous E&O protection since 1966.Agents Marketing Corp.2701 Industrial Drive • Box 1785Jefferson City, MO 65109Phone: 573-893-4301Fax: 573-893-3708Web Address: missouriagent.org

Agency sponsorship opportunity:Missouri Trusted Choice Big “I” championship

June 13-14, Staley Farms Golf Club, Kansas City

This tournament is designed to provide interaction for indepen-dent agents with junior golfers, their parents and their coaches. Sponsorships allow agencies to reach a broad demographic and create a positive image in the community, all while supporting the Big “I” and Trusted Choice!

For more information or an official sponsorship or volunteer form, contact the MAIA office at [email protected] or 800-617-3658.

Missouri’s 2010 National Championship Quali ers

Individual Volunteers Also NeededIndividual agent volunteers are needed to help before and during the tournament. Agents can help promote the tournament in their local communities through a variety of options or work at the course on the days of play. All options offer excellent networking opportunities with potential clients.

Sponsorship Levels

General Sponsor: $100• Agency name listed on sponsorship banner at

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Upper-level Sponsor: $500.Sponsor one of the following:• Winners’ registration fees for the national tour-

nament in Madison, Miss.• Lunch Day 1 or Day 2• Trophies• On-course refreshments• Range balls• Players’ reception• Participants gifts• Scorecards


In the daily bustle of operations, it’s easy to for-get about the most important asset you as an owner have to manage: your agency’s brand.

Why is this? Perhaps because when consid-ering your brand, there doesn’t appear to be an instant gratification. Many of you grew up selling. As sales people, you’ve been trained to think, “If I do this activity, I can make this many sales, which translates into this much revenue and this much profit.”

To be sure, your firm’s brand is a big-picture concept. Your task is to break it down into pieces so you can take steps to manage it. For example, at your next staff meeting, discuss the importance of your brand. Note that each employee’s daily behavior is largely responsible for helping, or hurting, your brand. You might see eyes glazing over. They might be wondering how this topic possibly can relate to what they do. But there are many good reasons for all to care about your brand.

Here are nine ways in which brands can get stronger. At your staff meeting, put them up on a white board, a flip chart or a PowerPoint, and encourage discussion:

1. Consumers have choices about where to buy insurance and financial services, and strong brands help consumers edit those choices. In figuring out where to shop and buy among often bewildering choices, consumers want to go to a source, or a few sources, they trust. Remember that people buy brand, not a product or service.

2. Your brand literally is what people say about you. Hence, referrals are critical to new busi-ness. Strong agency brands create and main-tain top-of-mind awareness in their commu-nities, helping current customers and opinion leaders direct business their way.

3. Strong brands get to choose their clients. They have more loyal customers. In turn, they have lower customer churn or dissatisfaction. That, in turn, means fewer errors and omis-sions issues.

4. Strong brands have increased revenue per customer, especially those with a consistent plan to reach out to customers. Great brands never forget the importance of taking care of people already on the books.

5. You can more easily roll out new products if you have a strong brand. Research leading to the development of Trusted Choice dem-onstrated the value of offering customers the opportunity to purchase other insurance and financial services products. This is what consumers say they want from an insurance provider, so offer them the opportunities to buy!

6. Strong brands guide employee behavior. Everyone is on the same page, and everyone is after the same vision. There are no freelancers doing their own workflows, and there are no arrogant producers pushing the staff around. The best brands attract and keep great staff.

7. Similarly, strong brands attract and keep the best carriers and other business partners. Great brands offer best-of-breed products and ser-vices. (It may be time to leave one of your carri-ers if it’s no longer supporting your brand.)

8. Who wants to battle it out in a price war? Who wants to be a commodity in the agent or bro-ker business? A strong brand will keep you on a value, not price, platform. That means your customers care most about the overall value they’re getting.

9. Strong independent producer brands consis-tently increase in value. After all, every agency someday will be acquired, merged, taken pub-lic or given to the kids, so you want it to be as valuable a business as it deserves to be.

With these staff discussions around brand, you actually can define your business strategy and tactics. Ask, “If this is (or is going to be) our brand, what should we be doing?” It should help stop arguments in your agency. If your brand is about friendly service, and your receptionist has difficulty dealing with the public in a positive manner, it’s time to make a switch. If your brand is about choice, make sure you demonstrate clearly on your website that you offer multiple products from multiple companies. If your brand will be more about financial services and less about prop-erty-casualty products, are operations aligned to support that?

A great guide to staying consistent with your brand message with your staff is the Trusted Choice Pledge of Performance. This pledge articu-lates exactly what consumers say they want from their insurance provider.

There are 10 subject areas addressed in the pledge. For example, Trusted Choice agents pledge to “use our experience and multiple-company relationships to customize your coverage as needed.” Ask: What does that literally mean day-to-day in your firm? Are you customizing all coverages?

Trusted Choice adds value as an additional in-gredient to strong independent agent and broker brands. To reiterate: Trusted Choice provides con-sumers exactly what they say they want from their insurance provider.

Go to www.TrustedChoice.com for more brand- ing tips.

Does

from TrustedChoice.com

matter?

12 missouriagent march/april 201112 missouriagent march/april 2011

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After a November election that saw Repub-licans in Missouri and nationally make major gains, the 2011 Missouri General Assembly began its session in January. Republicans extraordinarily expanded their majority in both the House and Senate, raising their numbers to near veto-proof totals. In the House, Republicans picked up 17 seats, rais-ing their total to 106 members (out of 163). In the Senate, Republicans gained 3 seats, raising their total to 26 members (out of 34). With a dominate advantage, Republicans have launched an aggressive strategy of legislative initiatives that will undoubtedly lead to con-frontation with the Democrat minority.

The two biggest components of these ini-tiatives are the repeal of the Missouri income tax, to be replaced with a state wide sales and use tax, and the change of the state labor policy to make Missouri a right-to-work state. Another major issue that will be addressed by the General Assembly is redistricting. The advantage Republicans have in numbers will

be an important factor here, especially since Missouri is losing one U.S. House seat.

On the budget front, though better than last year, revenue totals continue to be below nor-mal, so the legislature is in for another year of scrambling and wrangling to fill budget holes.

As for insurance legislation, the major issue this year will be legislation to establish a health care exchange called for when Congress passed the Patient Protection and Affordable Care Act in 2010. Rep. Chris Molendorp is planning to introduce a bill implementing the exchange(s) using the National Association of Insurance Commissioners’ model as a starting point. He has sought the advice of MAIA with regard to establishing the exchange policy. Furthermore, MAIA Executive Vice President Larry Case made a presentation about the important compo-nents to consider in establishing health insur-ance exchanges to the House Health Insurance Committee.

Another insurance issue the General Assembly will address this session deals with certificates

Capitol

Don SophBurton-Liese and

Associates

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of insurance. Rep. Paul Wieland introduced a bill on behalf of MAIA, which addresses the purpose of a certificate, substantiates that a certificate cannot amend a policy and pro-hibits including language on a certificate that conflicts with policy provisions, among other clarifications.

As 2011 is the 200th anniversary of the great New Madrid Earthquake, MAIA will continue to call attention to the lack of preparedness relat-ing to the potential of a major seismic event along the New Madrid fault line in southeast Missouri and continue to push for a solution to the availability and affordability issue of earth-quake insurance coverage for homeowners. As Senate Pro Tem, Sen. Rob Mayer can be ex-pected to put pressure on the insurance indus-try to find a solution. Additionally, Rep. Ellen Brandom and Rep. Terry Swinger are poised to support MAIA’s efforts.

MAIA’s legislative team will also fight for legislation combating scam artists who take advantage of those who have had their homes and property damaged by weather. Storm chas-ers, as these scam artists are called, descend on an area after major storms, approach hom-eowners with damage to their residence and attempt to pressure them to pay up-front for quick fixes they claim will be paid for by the victim’s insurance.

These supposed contractors many times are not licensed to perform such work, and conse-quently, insurance companies will not pay for it, leaving the homeowner with the tab. In other instances, the entities will purport to both ne-gotiate with the insurance company and also perform all of the work. MAIA will help push legislation this session to combat this common consumer fraud tactic.

This session will also see legislation dealing with workers’ compensation issues. Two such bills will attempt to address problematic judicial rulings. A number of bills have been filed to restore the sole remedy doctrine to workers’ comp coverage and restrict the ability of trial attorneys to also pursue lawsuits against co-employees. As a result of conflicting court deci-sions, other bills have also been filed to clarify that workers’ comp includes coverage for occu-pational diseases.

On another matter, time will tell if this is the year that legislators can come up with a fix for Missouri’s bankrupt Second Injury Fund.

On these issues and all others vital to the insurance industry in Missouri, MAIA’s legisla-tive team will be closely watching out for those proposals that impact association members and your clients.


Members of the Missouri Association of Insurance Agents are gathering at multiple events to support the interests of the inde-pendent insurance industry in both the U.S.

Congress and the Missouri General Assembly. Three annual events are

drawing agent participation: the MAIA Day at the Capitol, the Big “I” Legislative Conference and Convention, and the PIA Federal Legislative Summit.

The 2011 MAIA Day at the Capitol was held March 1, 2011. Executive Vice President Larry Case and MAIA lob-byists Chris Liese and Gary Burton briefed the attendees at Capitol Plaza Hotel on insurance-related bills filed in the Missouri House and

Agents attend state, national legislative events


Senate. Afterward, the agents had time to visit with their senators and representatives at the Capitol before enjoying a reception that evening. This year, members of the Missouri Association of Health Underwriters joined MAIA in its efforts.

For 2011, the association supports bills that would restrict employees’ ability to sue their co-workers in workers’ compensation cases and others that would modify current laws regard-ing employer liability in workers’ comp cases dealing with occupation disease. MAIA is also pushing legislation that would regulate the issuance of certificates of insurance.

On the health care front, MAIA is working closely with legislators to mold a health care exchange required by the new federal health care reforms. For more information on bills and issues facing the General Assembly, please see the article on page 12.

MAIA’s two national associations, the Independent Insurance Agents and Brokers of America, and the National Association of Professional Insurance Agents, both have legislative events scheduled this spring. The PIA Federal Legislative Summit will take place March 30-31, in Washington, D.C. The agenda includes time for attendees to meet with legis-lators on Capitol Hill and a fundraising dinner for the association’s political action committee.

The Big “I” Legislative Conference and Convention will be held April 13-15, in Washington, D.C. A delegation of Missouri agents plan to attend to meet with their U.S. Senators and Representatives during Day on Capitol Hill. The event will include an ad-dress by the Speaker of the House, Rep. John Boehner; an Agents and Brokers Roundtable; and the State of the Association address by Big “I” Chairman Robert Rusbuldt.

Photos left and right: Day at the Capitol 2009


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For more information about how you can write business with AmTrust, please call 877.528.7878 or visit www.amtrustnorthamerica.com.

We’re (sm)all business.SM

Think AmTrust for all your small business insurance needs. We offer workers’ compensation and commercial package products in a variety of classifications, including specialty niche segments such as: Fine Dining | Lumber Specialty | GarageKeepers | Businessowners Policies

Insure them accordingly with AmTrust.

Their businesses are as different as the tools they use.

* Not all products available in all states

Over the past year, we’ve written articles in Agent & Broker magazine about the necessity of having structure in the agency. Structure creates a systematic approach to your busi-ness, which in turn creates revenue for you. A

critical part of the structure includes your rela-tionship with your carriers.

Many agencies think about new clients and are concerned about their renewals. They of-ten even think through the cross sell, but they either take whatever commitment number the carrier throws at them, the known minimum, or have their feet “comfortably planted in mid air” when it comes to carrier commitments.

Growing a successful and thriving agency, es-pecially in these new economic norms, requires more structure and more attention. So what should we be considering? Let’s explore some of the myths leading to good reasons for agency-carrier planning.

Myth #1: Carriers preselect the pro-duction number. Well, they have a number in the event you don’t have one or yours isn’t high enough. Serious agencies create their own business plan that in-cludes retention, new clients, book rolls and con-solidations, and have a face-to-face discussion about that topic with their key carriers, in which they work through their new business, renewal and loss ratio targets.

Myth #2: The number is the same for everyone. NOT SO! It’s about two parties communicating and coming to an agreed commitment. It’s also about agents meeting or exceeding that com-mitment if we want to expect consideration in the future. We need to negotiate that number, but it needs to be realistic. When the number misses the definition of realistic, the carrier will certainly nail you with their number, and in many cases, the less they like you, the higher it will be.

Myth #3: We all get paid the same, so why bother. Incorrect! We’ve identified at least four levels of compensation in the matrix (top secret!). If your book is declining or flat, you really can’t expect to be paid more. That would be unfair and un-realistic. The performing agencies simply get

Tom Barrettpresident, SIAA

Agency planning includes your carriers!


Serving Missouri Communities For Over 100 Years PO Box 99 | Liberal, MO 64762 | 417-843-6265 | Fax 866-535-4798

higher percentages and multiple layers of com-pensation. You are 100 percent in control of your commissions and revenues based on your level of commitment to your agency growth and development.

Myth #4: It’s too much trouble. This is directly related to your future. An agency that isn’t growing and acquiring new accounts and clients, one that won’t cross sell, won’t follow a sales process and a market-ing system, one that isn’t focused on account rounding and growth is frankly an irrelevant distributor and one that can expect elimination – by the carrier or their competitor.

The simple reality is that successful agencies plan. They have a business plan that includes all production sources and departments, and they focus production with a handful of key carriers. They provide solid production, loss ratio and re-tention marks, and they meet or exceed them.

We’ll explore the specific steps in planning with your carrier at the MAIA Leadership Con-

ference on Friday morning, July 22, in a two-hour Best Practices seminar. We’ll specifically go through the actual process that has pro-pelled us to 3,500 agency locations, which will write more than $600 million in new business this year. Hope to see you there!

Good Selling!

Tom Barrett is president of the Midwest and Southeast regions of SIAA. SIAA nationally produces over $150 million in new proper-ty-casualty premium quarterly. Using the Dynamics process, SIAA will write over $600 million in new business in 2011. Barrett also serves on the National Faculty for “Dynamics of Selling,” ”Dynamics of Sales Management” and “Dynamics of Company Agency Relations.” Your comments and communication are wel-come and may be directed to [email protected].

Tom Barrett will present a Best Practices session at the 2011 Leadership Conference in July.

“ The simple reality is that successful agencies plan.”


If you have a young agent, you have an opportunityCongratulations, you have a new producer! By hiring this fresh face (and taking a chance

on the next gener-ation), you’ve cre-ated a new door in your agency. Let the Young Agents Conference help you open that door by providing the education and motivation your young salesperson needs. The Young Agents

Conference is designed specifically for producers with fewer than 10 years in the industry. The event begins on a Sunday and ends before noon on Tuesday to minimize time spent out of the office without sacrific-ing content.

Get that young agent on track withmotivational keynote: The Light Bulb in the Chicken House is OnGrowing up in a small New England town in the 1970s, John Mabry was just another boy who dreamed of making it in the big leagues. Determined to have more than memories of sand lots and ring-necked tees, however, Mabry per-sisted in his quest, and in 1991, after three years playing baseball at West Chester University of Pennsylvania, he was drafted as a third baseman by the St. Louis Cardinals.

Mabry’s subsequent career in Major League Baseball spanned 13 years and included seven sea-sons with the St. Louis Cardinals, as well as time with seven other teams. Throughout his journey in baseball, Mabry encountered resistance from those who thought his aspirations were bigger than his opportunities. He found inspiration in his small-town roots and proved that belief, faith, hard work and even the smallest of lights can be enough to show the way.

Living Life in the DashSam Bennett, CIC, presents this motivational, inspirational and educational course. The dash referred to is the dash we find on tombstones, i.e., John Doe 12/12/1938-12/1/2010. All life is lived in that period – the dash. Therefore, Bennett en-courages young agents to understand what they have to offer and how they can make their effects on others in their lives positive, especially through their careers.

How to Think Like an Old Agent – Even When You are Young – and Why You Would Want toAlso lead by Sam Bennett, this presentation will help flatten the learning curve for the young agent. It will begin with an in-depth review of some often overlooked basics.

Then, a study of claim scenarios will be used to clarify areas of policy coverage and instances where coverage is lacking. An examination of the certificate of insurance, and common additional insured and waiver of subrogation requests will help the young agent understand the desires of the certificate holder.

Finally, some sales pointers – using the young agent’s assets to his or her benefit, redirecting frustration, working effectively with others – and some proven presentation pointers will complete this session.

2011 Young Agents Conference

2010 Family Fun Night


2011 Young Agents Conference agenda

Sunday, June 6 11 am-5 pm Registration

12-2 pm Living Life in the Dash, presented by Sam Bennett Approved for 2 property-casualty CE credits in Mo.

2:15-5 pm Maximizing Your Internet Presence, presented by Steve Anderson

7:15-8 pm Chairman’s Cocktail Reception

8-11 pm Awards Banquet Dinner Followed by Comedy Night

Monday, June 6 7:30 am Breakfast

8:30-11 am Keynote Session: The Light Bulb in the Chicken House is On, presented by former St. Louis Cardinals third baseman John Mabry

1-6 pm Off-Site Float on the Current River (optional)

6:30 pm Family Fun Night

Tuesday, June 7 7:30 am Continental Breakfast

8-11 am How to Think Like an Old Agent – Even When You are Young – and Why You Would Want to, presented by Sam Bennett

Approved for 3 property-casually CE Credits in MO.


One Size Definitely Does Not Fit All

Every one of your customers with a home or business needs flood protection, no matter where they are. Even those who think they are covered may find out they are drastically underinsured. Big “I” Flood Program and Wells Fargo Special Risks now offer Excess over Primary flood as well as flood in Non-participating Communities and Coastal Barrier Resources Act designated properties.

Submit your quote request on Big “I” Markets at www.bigimarkets.com.

Linda R. Mackey, CIC, CISR, AIAMBig “I” Flood Program Manager

800.221.7917, ext. [email protected] n www.bigimarkets.com

Wells Fargo Special Risks

We Are The Calm Before The Storm

2011 Young Agents Conference

Maximizing Your Internet PresenceIndustry technology expert Steve Anderson is coming back to Missouri to lead this must-have course for your most tech-savvy employees: your young agents. Showing up on a Google search results page is a key way to generate business, but being found on the Internet takes more than having an old agency website and a Facebook page. Maximizing your Internet presence so anyone can find you requires un-derstanding how search engines work and then learning the specific steps to increase the chances of being visible in a search. The good news is that it costs little to nothing to get started. This sessions details what you need to begin.

A conference for the entire familyThis is no boring insurance event! Spouses and children are welcome at the Young Agents Conference, and there will be plenty to keep them entertained. Registration for adult guests includes all education sessions, meals and social functions on the conference agenda. Special registration for children ages four to 12 in-cludes the Children’s Program during scheduled adult activities.

Family fun nightWant a relaxing evening by the water? This barbecue on the banks of the Current River is just what you need. On Monday evening, young agents, company friends and all fam-ily members are invited to attend Family Fun Night. Everyone will enjoy the riverbank barbe-cue, a live band, and plenty of fun competition and games. Whether you come single or bring along your whole crew, this crowd-pleasing tradition is a great opportunity to rekindle old friendships and ignite new ones!

The LandingThe Landing is located on the banks of the Current River in the foothills of the Missouri Ozarks in Van Buren and is the Current River’s No. 1 resort destination. The Current and Jacks Fork Rivers are beautiful crystal waterways of-fering outstanding landscapes.

The Landing is the only establishment in the Current River area to offer riverfront accom-modations. Each room has a spacious balcony with inviting Adirondack chairs where you can sit and enjoy the view. At The Landing, they guarantee you a great experience at one of the most beautiful rivers in America.

Float tripEnjoy a float trip on the Current River, an expe-rience you won’t forget. We invite you to float this crystal-clear river running through beauti-ful Ozark landscapes. The river is a Class 1 run, the easiest and safest rank, so it is enjoyable for both beginners and experts.

Make your arrangements with The Landing, and they will transport you upriver to one of the various entry points where you can float down in canoes, rafts, kayaks or tubes right back to The Landing in time for Family Fun Night.

20 missouriagent march/april2011

At the fall ACT meeting, there was a lively break-out session that focused on the latest thinking on websites and social media in the insurance industry and what value agents and carriers are finding in their digital presence. The conversation uncovered behavior and tactics that the group felt were best practices and helpful in achieving a successful social implementation.

I served as moderator of the break-out ses-sion, which had 18-20 participants. The follow-ing is a brief overview of the discussion.

WebsitesandbloggingConsidering the increased functionality of Facebook pages, which Facebook previously called fan pages, some actually questioned the need for a website. Most agreed, how-ever, that a website is still a very important component in a social networking strategy. It’s important to note, though, that the website talked about is not the static brochure-ware of a 1990s website. Rather, it is a blog or website built on a blog platform: for example, a web-site created using a product like WordPress or TypePad. Blogging is very good for search engine optimization (getting found through search engines such as Google.com). One agent said, “Every time we blog, page views go up.”

New tools make it easy to keep content fresh and relevant. A website is a company’s “home.” It is where the company human-izes its brand, and it is the core of its digital existence. It was suggested that a successful strategy is to become a curator of information on a specific subject – that is, to become the resource customers and prospects go to for subject matter expertise.

At our session, discussion took place con-cerning the quality of blog content, as well as the time needed to keep a blog updated and fresh. One agent participant offered this:

I was ready to hire someone to do our blog, but one of our employees said she could do it, so I decided to let her try. It helped me realize that a good blog doesn’t require a professional writer. Writing in the first person is okay. In fact, this seems to be the best practice. I did re-view the posts at first, but now I have full confidence and trust in her and no longer review them.

Another member of the group mentioned that he typically uses his blog to write testimo-nials about his clients.

Bestpracticetips:● Keep blogs short – two paragraphs or

about 300 words. Good, concise informa-tion drives more insterest.

● Build an editorial calendar for your blog posts, and share the responsibility for writ-ing them with your colleagues.

● Give priority to consistency over frequency.

● Use Google Analytics to monitor your site. It is a free, easy way to track hits to your web page.

● Consider adding a disclaimer.

FacebookfanpageThe discussion started with the assumption that every agent and broker should have such a page. All participants agreed that “you want (need) to be where your prospects and custom-ers are.” The “inbound” and permission-based marketing model of today will work only if you can be found.

With more than 500 million users, Facebook is a place where you must have a presence. Participants at the meeting felt that having a Facebook fan page is an important component of a firm’s overall social strategy.

Bestpracticetips:● Think of Facebook as a way to keep your

“fans” updated on agency activities and events. For example, a sports team you sponsor or participation in a cancer walk is news you can share with your community.

● Think of your page as an online civic club meeting or cocktail party: It’s a place to introduce yourself and your business, and to build your online persona.

● Use customized tabs to create a “welcome” landing page.

● Consider using Facebook ads to promote your blog and grow your fan base. These ads are very cost effective and can be laser focused. Facebook provides good metrics, and the ads are easy to create and revise as needed. Some of the comments about ads at the meeting included: “If nothing is working, change it”; “you are not selling

Adiscussionofagencywebsiteandsocialmediabestpractices


technology

RickMorganACT

We want to be number one in your agency.

So when it comes to doing business, make West Bend

your first call.

We’re the easy choice.

“I would rather deal with West Bend before any other company. In my humble opinion, they have the best service, underwriters, and customer service people. They make processing, underwriting, everything easy and quick. There’s no second guessing.”

“West Bend is over and above our other carriers.”

“West Bend has always been our number one company.”

“West Bend has been a main stay the many years I have been an agent of theirs; not just at this agency but at others as well. I honestly can’t think of anything they could do better.”

And many West Bend agents tell us we already are. In a nationwide ease-of-

doing-business survey, West Bend scored first or second every year for the

past five years. In fact, West Bend consistently scores higher than the other

companies in our survey benchmark group.

But don’t take our word for it. Here’s what our agents have to say ...


a product with a Facebook ad”; and “it’s cheap and easy. Play with it.”

● Some carriers are using co-op advertising dollars to help agents with Facebook ads.

LinkedInFor many in the break-out session, use of LinkedIn felt less threatening and more com-fortable than many of the other social media applications. We agreed that LinkedIn has become more than a place to post an online resume. For example, it can be used to do research on potential prospects. Engaging in conversation on LinkedIn groups can also be an effective way to demonstrate subject mat-ter expertise.

Best practice tips:● Be sure you have an interesting and com-

plete profile.

● Take advantage of LinkedIn’s strong search capability when looking for prospects or re-searching existing customers.

● Join groups focused on your firm’s sweet spot. For example, if you write restaurants or contractors, be sure to join their respective LinkedIn groups.

TwitterThe value and business use of Twitter continues to be elusive for many insurance agents. For oth-ers, it has become one of their most effective research and communication tools. For some agents, Twitter, like Facebook, is used to human-ize and personalize their corporate brand. They use Twitter to broadcast news and events in real time. For example, one agent uses Twitter to track local weather and report on tornado sight-ings and provide location updates.

Best practice tips:● Use Twitter search.● Use Twitter to monitor local news events.● Use Twitter to follow areas of interest, for

example, insurance.

Social networking: getting startedWhen asked what steps should be taken by someone just getting started with social net-working, the group offered this advice:

● Create a connected digital presence by us-ing tools such as Hootsuite, TweetDeck and FriendFeed to link and manage all of your social activity. While these tools allow you to replicate posts across all of your social sites, you need to consider whether you should actually do this with each post. It is impor-tant to consider the different audiences and deliver relevant messaging on your various social sites to each.

● Make sure you have a good policy or social web guide in place, which outlines and de-fines appropriate behavior for your company and employees when using the social web.

● Have a good, comprehensive strategy in place that is part of the firm’s business plan. Be sure to communicate that plan with all of your employees.

● Decide what you want to measure and how to measure it. You will want to know what success looks like.

technology continued from page 20


www.bmicompanies.com • 800-310-2717

Serving Policyholders Since 1891

● Don’t delay. This is not a fad or an experi-ment. Pick one thing and do it now.

● Let tools like GetListed.org help you with local search.

● Consider using video and YouTube. Using a Flip video camera is a very easy and effec-tive way to create your own video.

● Use Google Alerts to track “mentions” of not only your firm but also your key cus-tomers and even your competition.

● Blog, blog and blog some more.

● Pay attention to the details. Make sure your brand image is consistent across all of your online touch points.

Biggest mistakeWhen asked what mistakes they made, the group responded with:

● Sitting on the sideline waiting for new technology to mature.

● Using these tools as a sales or self-promo-tion megaphone.

● Thinking that if you build it, they will come, and your bottom line will magically grow. It takes work to build relationships and gain trust, online and off. Be patient, and sales will come.

Other comments● One agent is discontinuing chat. He felt

that most were useless chats.

● Some agents have abandoned the Yellow Pages. Instead, they spend the money on improving their website and developing their social sites. One agent also comment-ed that the type of inquiries that came from their social sites were more solid and qualified than the calls they previously had received from the Yellow Pages.

● It is important to be in all of these social places because prospective customers are searching for you there.

Under the heading of “What’s Next,” the group universally expected to make more ef-fective use of video. Many were also interested in creating iPhone apps for their agency and saw mobile and location-based applications as emerging trends for 2011.

Rick Morgan is a consultant with four decades of experience in innovative technology, market-ing and publishing in the independent agency system. He chairs ACT’s Social Web Work Group. He can be reached at [email protected] and via www.rickmorganconsulting.com/blog. This article reflects his views and should not be con-strued as an official statement by ACT (www.iiaba.net/act).

maia associate membersspecialfocus companyagencyrelations

Companies

AAA MissouriRobert Mahoney12901 N. 40 DriveSt. Louis, MO 63141314-523-7350www.OurAAA.com

Accident FundKristin Doyle232 S. Capitol Ave. Lansing, MI 48901517-342-4200www.accidentfund.com

Accident Insurance Co.800-896-6884www.accinsco.com

ACUITYBret Blizzard2800 S. Taylor DriveSheboygan, WI 53081800-242-7666www.acuity.com

Affirmative Insurance Co.800-333-5530www.myaffirmativeinsurance.com

Allied InsuranceMarcus HaithP.O. Box 80758Lincoln, NE 68501800-228-4011www.alliedinsurance.com

America First InsuranceKevin Link14500 S. Outer 40 Road Suite 500Town and Country, MO 63017314-205-7501www.americafirst-ins.com

American Mining Insurance Co.Bryant Brown3490 Independence DriveBirmingham, AL 35209205-874-8249www.americanmining.com

American Modern Insurance 913-944-2388www.amig.com

American Reliable Insurance Co.402-516-7123www.assurantspecialtyproperty.com

AMERISAFE800-897-9719www.amerisafe.com

Amerisure Mutual Insurance Co.John Linxwiler701 Emerson Road Suite 320St. Louis, MO 63141314-994-3400www.amerisure.com

AmFed Cos.601-427-3844www.amfed.com

AmTrust North AmericaMark Gunn5800 Lombardo CenterCleveland, OH 44131877-528-7878www.amtrustgroup.com

Anthem Blue Cross Blue ShieldStephanie Vojicic1831 Chestnut St.St. Louis, MO 63103888-800-1053www.anthem.com

Auto-Owners Insurance Co.Diane Marshall302 Campus View DriveColumbia, MO 65203573-875-1290www.auto-owners.com

Berkshire Hathaway HomestateJeff Morris3333 Farnam St. Suite 300Omaha, NE 68131402-393-7255www.bhhc.com

Billings Mutual Insurance Co.Charles SmithP.O. Box 40Billings, MO 65610417-744-2717www.bmicompanies.com

Bituminous Insurance Cos.Chris Demse10733 Sunset Office Drive Suite 430St. Louis, MO 63127314-822-4446www.bituminousinsurance.com

ProgressiveProgressive is making efforts to help your agency grow!•Progressive continues to improve our preferred products,

offering additional discounts and better rates for preferred customers to help you write and retain even more business. Ask about our umbrella product and other ways to help you grow your preferred book.

•Progressive has an iPhone app available. Customers can do self-service or find a local agent.

•Become a fan! Progressive in Missouri has its own Facebook page. Search for Progressive Independent Agents of Missouri.

Check out more on these stories by visiting Progressive’s website at www.ForAgentsOnly.com, or contact your local marketing representative.


Meramec Valley Mutual Insurance Co.Meramec Valley Mutual Insurance Co. was formed in March 1887, just two short decades after the close of the Civil War, by farmers and other rural residents in Missouri who had virtually no access to insurance protection.

What else happened that year?Grover Cleveland was president. The first Groundhog Day

was celebrated in Punxsutawney, Pa. The Senate allowed the Navy to lease Pearl Harbor as a Naval Base. Anne Sullivan began teaching Helen Keller. Queen Victoria celebrated the 50th year of her reign. The construction of the Eiffel Tower began in Paris. Buffalo Bill’s Wild West Show opened in London. Georgia O’Keefe, Boris Karloff, Chico Marx and Conrad Hilton were born.

Since then, we’ve had 22 American presidents, two world wars, and various depressions and recessions, but one thing has not changed: Meramec Valley has continued to provide quality insurance protection and personalized service to Missourians at a fair price.

maia associate membersspecialfocus companyagencyrelations

Cameron Insurance Cos.Gary Myers214 McElwain DriveCameron, MO 64429816-632-6511www.cameron-insurance.com

CFM InsuranceConnie Costigan511 N. RidgeviewWarrensburg, MO 64093660-747-6166www.getcentralmutual.com

CNAMatt Hartigan5901 College Blvd. Suite 400Overland Park, KS 66210913-661-2701www.cna.com

Columbia Insurance GroupRoger Birdsong2102 White Gate DriveColumbia, MO 65205573-474-6193www.colinsgrp.com

Consumers InsuranceRon MattliP.O. Box 201Wappapello, MO 63966573-718-0613www.ciusa.com

Continental Western GroupBob DowdP.O. Box 1594Des Moines, IA 50322515-473-3000www.cwgins.com

Contractors Bonding and Insurance Co.314-729-1334www.cbic.com

Cornerstone National InsuranceJames French3100 Falling Leaf Court Suite 200Columbia, MO 65203573-817-2481www.cornerstonenational.com

Coventry Health Care dba GHP314-506-1737www.ghp.com

Dairyland Auto & Cycle InsuranceKenny Wideman5512 75th St.Lubbock, TX 79424800-532-2525www.vikinginsurance.com

Delta Dental of Missouri314-656-2760www.deltadental.com

Electric Insurance Co.Teri Jannett329 Woodmar CourtBallwin, MO 63011636-386-3723www.electricinsurance.com

EMC Insurance Cos.Paula HutchinsonP.O. Box 1014Columbia, IL 62236618-281-9555www.emcinsurance.com

Encompass InsuranceMelinda Garcia1101 Walnut St. Unit 1007Kansas City, KS 64106913-339-8433www.encompassinsurance.com

Equity Insurance Co.800-777-0404

FCCI Insurance GroupTracey Pfab12800 N. Meridian St. Suite 100Carmel, IN 46032317-571-3000www.fcci-group.com

Fireman’s FundJim Ziolkowski1 Progress Point ParkwayO’Fallon, MO 63368314-817-2694www.firemansfund.com

FirstCompStacy Jensen935 Jefferson Blvd. Suite 300Warwick, RI 02886888-500-3344www.firstcomp.com

Foremost InsuranceKaren MarszalecP.O. Box 2450Grand Rapids, MI 49501586-484-8808www.foremost.com

General Casualty Insurance Cos.Kathy Valdemar13200 Metcalf Ave. Suite 400Overland Park, KS 66213913-402-6417www.generalcasualty.com

GMAC Insurance336-435-2357www.gmacagency.com

Great American Insurance Group972-437-7129www.ga-propertyim.com

Grinnell Mutual Reinsurance Co.Jack Sinkler4215 Highway 146Grinnell, IA 50112641-236-6121www.gmrc.com

GuideOne Insurance Co.515-225-5000www.guideone.com

Haulers Insurance Co.Steve Wilkinson101 Santa Fe PikeColumbia, TN 38401800-346-6071www.hici.net

Illinois Casualty Co.Ann Riceman225 20th St.Rock Island, IL 61201309-793-1700www.ilcasco.com

Keystone Mutual Insurance Co.636-537-7756www.keystonemutual.com

Missouri Rural Services Corp.Any agency that has placed much business through our brokerage knows or has heard about Gracie Harvey (formerly Schlemeier). She is the longest continuously employed staff member of MRSC. Gracie was hired by my Father, Walter Clark, in 1985 as a temporary worker, “just until we get things caught up,” as he put it. As time went on and our business grew, more staff was added until eventually, on January 1, 1998, Walter retired. At his retirement party everyone stood up to say a few words. When it came Gracie’s turn, she said “Walter, I just have one final question: is my position still temporary?” Sounds just like her doesn’t it? - Alan Clark, President



specialfocus companyagencyrelations

LititzMutualInsuranceCo.913-685-9272www.lititzmutual.com

MeramecValleyMutualInsuranceMarty WynnP.O. Box 438Hillsboro, MO 63050636-789-3806www.meramecvalley.com

Mo.EmployersMutualInsuranceSteve Millikan101 N. Keene St.Columbia, MO 65201573-499-9714www.mem-ins.com

MOPERMDavid Kormann3425 Constitution Court 3rd FloorJefferson City, MO 65109573-751-1266www.moperm.com

NationalAmericanInsuranceCo.800-332-2210www.naico.com

NationalLloydsInsuranceCo.254-399-0626www.natlloyds.com

OldMo.MutualInsuranceCo.Shannon McClureP.O. Box 367Nixa, MO 65714417-725-3811www.oldmomutual.com

PatriotUnderwritersJohn Chisenhall15450 S. Outer 40 Suite 135Chesterfield, Mo 63017636-237-2050www.guaranteeins.com

Patrons&FarmersMutualofMissouri816-380-4241www.patronsandfarmers.com

Pa.LumbermensMutualInsurance267-825-9354www.plmins.com

PhiladelphiaInsuranceCos.Myles Essick8000 Maryland Ave. Suite 710Clayton, MO 63105314-721-6825www.phly.com

PrimeInsuranceCo.800-456-4576www.primeis.com

ProducersXL785-825-1769www.producersxl.com

ProgressiveInsuranceDwight Hager5905 Cherish CourtLohman, MO 65053573-634-5486www.progressiveagent.com

QBE-AgriInsuranceDiane Sutherland5619 DTC Parkway Suite 300Greenwood Village, CO 80111303-337-5500www.qbeagri.com

SafecoInsuranceRoss Curcuru1400 S. Highway Drive Suite 100Fenton, MO 63026314-954-8641www.safeco.com

SagamoreInsuranceCo.317-636-9800www.sagamoreinsurance.com

SECURAInsuranceCo.Wendy Kraus2401 S. Memorial DriveAppleton, WI 54915920-739-4988www.secura.net

SelectiveInsuranceCo.Erik Reidenbach11711 N. Meridian St. Suite 800Carmel, IN 46032317-815-4343www.selective.com

StateAutoInsuranceCo.Dan Bryan1300 Woodland Ave.West Des Moines, IA 50265515-453-8272www.stateauto.com

TheBarPlanMutualInsuranceCo.314-965-3333www.thebarplan.com

TheBartonGroupFred Shaw120 S. MainLiberal, MO 64762417-843-6265www.bartonmutualgroup.com

TheHartfordBob Gulino12312 Olive Blvd.Creve Coeur, MO 63141314-682-0100www.thehartford.com

TravelersDave Linhardt940 W. Port Plaza Suite 300Maryland Heights, MO 63146314-579-8216www.travelers.com

UnitedFireGroupMike BroghammerP.O. Box 73909Cedar Rapids, IA 52407800-343-9125www.unitedfiregroup.com

UnitedHealthCareGeorge Durko13655 Riverport DriveMaryland Heights, MO 63043800-627-0687www.uhc.com

UnitrinSpecialty972-690-5500www.unitrinspecialty.com

U.S.InsuranceCo.ofAmerica217-391-5252www.usicoa.com

WestBendMutualInsuranceCo.Mike Shippen1900 S. 18th Ave.West Bend, WI 53095262-334-5571www.thesilverlining.com


FirstCompBIG things are happening for FirstComp in 2011! First, we are delighted to welcome Sonja Sheckler as our Eastern Missouri sales manager. She replaces Sergio Gutierrez who has transitioned to the role of Missouri underwriter. Sonja and Sergio, along with Vanessa Roberts, Western Missouri sales manager, and Mick Poppe, Missouri underwriter, will continue to provide the superior service you have come to expect from FirstComp. Additionally, FirstComp has been acquired by Markel Corporation and we couldn’t be more excited about what is in store! FirstComp Insurance Co. now has an A.M. Best rating of B++.* By mid-year we will offer Markel’s Deerfield Insurance Co. paper (A.M. Best rated A-) in addition to FirstComp Insurance Co. paper in Missouri. A future goal is to be able to cross-sell Markel and FirstComp products through our independent agency partners, and we look forward to seeing this develop throughout 2011. Please watch for additional information from FirstComp to keep you notified of all of the exciting opportunities coming your way.*For the latest rating, access www.ambest.com.

maia associatemembers continued from page 25


ZenithInsuranceCo.Diane Brassel31 Telluride DriveSt. Peters, MO 63376636-939-4291www.thezenith.com

Vendors

AnthemWorkers’CompensationTammy Lippmann1831 Chestnut St.St. Louis, MO 63103314-925-6015www.healthlink.com

BankDirectCapitalFinanceMark Rein2 Conway Park150 North Field Drive Suite 190Lake Forest, IL 60045847-295-4125www.bankdirectcapital.com

Brant-Interactive202-386-2071www.brant-interactive.com

CapitalPremiumFinancingLorie Estelle8331 Oakview CircleLenexa, KS 66215800-797-0705www.capitalpremium.net

INSURICAInsuranceManagementNetwork580-355-1122www.insurica.com

LammTechnicalResourcesMelissa Thoenen400 S. KentuckySedalia, MO 65301660-827-9944www.lammtech.com

LewisE.Melahn,Attorney-at-Law573-636-5057

Mo.Merchants&ManufacturersAssociation636-537-4613www.mmma.org

M.S.Consulting417-448-4732www.mikegaster.com

NetspendCorp.314-517-8080www.netspend.com

PremiumFinancingSpecialistsMike Keegan13520 WyandotteKansas City, MO 64145816-942-6336www.premiumfinance.com

Quomation801-226-1395www.quomation.com

SAMBAJohn Chavez1730 Montano Road N.W. Suite FAlbuquerque, NM 87107505-797-2622www.samba.biz

SelectImagingMatt Neuerburg19955 W. 162nd St.Olathe, KS 66062913-747-2700www.selectimagingcorp.com

ServiceMasterRestoration417-868-8111www.servicemasterclean.com

StaffOne314-872-2183www.staffone.com

SurplusLinesAssociationofMo.573-635-0736www.inglishmonaco.com

Wholesalers3DStarInsuranceServices314-436-3318www.3dstarinsurance.com

AdvancedE&SInsuranceUnderwriters312-957-4041www.aesins.com

AlternativeRiskCo.888-474-1217www.alternativeriskco.com

ARAInsuranceServices816-842-6585www.ararental.org

Bohrer,Croxdale&McAdoo417-869-2550www.bcmins.com

BurnsandWilcox314-819-0400www.burnsandwilcox.com

Chris-LeefGeneralAgency913-631-1232www.chris-leef.com

ColumbiaCommercialGeneralAgency573-256-2410www.ccga-ins.com

CommercialInsuranceUnderwritersDave Hinrichs901 E. St. Louis Suite 205Springfield, MO 65806417-883-3277www.ciusgf.com

CompControlCorp.314-919-2021www.bicins.com

Consumers InsuranceDid you know that Consumers Insurance was started in 1995 by a group of Independent Agents in the state of Tennessee? Did you know that seven members of the Consumers’ board of directors are either current agency principals or retired agency principals? Did you know that two of our directors are past presidents of the Tennessee Big “I”?

Why is any of this really important to our agents? Because we were created to serve agents, and 15 years later, this is still the driving force of Consumers Insurance. When we have a board meeting, the

focus is on agents and their needs. When we have a senior management meeting, the focus is on agents and their needs. When we have departmental meetings, the focus is on agents and their needs. The independent agency system is in our DNA and will always be there.

march/april2011

Allied InsuranceNational strength with a local, personal touchSince being formed as ALLIED Mutual Automobile Association in 1929, Allied Insurance has been committed to providing quality insurance coverage backed by our commitment to On Your Side® customer service. Whether it’s protection for home, auto, farm, ranch or business, Allied’s broad portfolio of personal and commercial products has the flexibility to meet the insurance needs of your customers.

Allied partners with a network of 4,000 independent agencies across 33 states. We’re committed to helping you achieve extraordinary success through unmatched service, agency support, ease of doing business and technological solutions. In 2010, Allied won the Real Time Adoption Award and the Interface Leadership Award from Applied Systems for our Agent Center enhancements, which included next-day policy activity notifications and the ability to view the same billing and declaration pages your customers receive.

We view every point of contact with you as an opportunity to extend our long reputation of service and integrity. By listening to you and understanding your needs, we develop insurance solutions that meet or exceed your expectations.




Continental American Agency314-241-7969www.caains.com

Couri Insurance Associates262-548-8077www.couriagent.com

Davidson-Babcock913-469-1188www.davidson-babcock.com

Executive Brokers Insurance Services636-447-1160www.ebisinc.org

Five Star Specialty Programs314-965-7474www.5StarSP.com

Gateway Underwriters AgencyMegan Cosgrove2458 Old Dorsett Road Suite 110Maryland Heights, MO 63043314-238-0070www.gua-stl.com

Graham-Rogers913-336-2800www.graham-rogers.com

Gresham & Associates417-823-3924www.gresham-inc.com

H&W Insurance Services913-676-9305www.hwunderwriters.com

InServ General Agency800-543-3301www.inservga.com

Insurance Program Managers Group630-377-5845www.ipmg.us

Insurance Specialties417-442-7825www.insspecial.com

Insurisk Excess & Surplus Lines417-883-2628www.insurisk.com

Irwin Siegel Agency800-622-8272www.siegelagency.com

Jaeger and Haines479-521-2551

J.M. WilsonCathy Baldwin4700 Belleview Suite 205Kansas City, MO 64112816-561-6700www.jmwilson.com

Med JamesMed James III8595 College Blvd.Overland Park, KS 66210913-663-5500www.medjames.com

Midwestern Insurance AllianceRusty BurnettP.O. Box 436909Louisville, KY 40253800-356-8457www.midwesterninsurance.com

Missouri Rural Services Corp.Alan Clark1913 SouthridgeJefferson City, MO 65109573-635-9300www.missouriruralservices.com

M.J. Kelly Co.Paul Adams4415 E. State Highway DSpringfield, MO 65809417-883-2688www.mjkelly.com

Owner-Operator Services816-229-5791www.ooida.com

Ringwalt & Liesche Co.402-536-3223www.ringwalt.com

RSI International636-391-4841www.rsimo.com

S.A. Freerks & AssociatesStan Freerks911 Park Ave.St. Louis, MO 63104314-436-2682www.safains.com

Stuckey & Co.636-625-8875www.stuckey.com

Swett & Crawford501-455-3906www.riskreducers.com

TAS Insurance GroupTad DeOrio255 N.W. Blue Parkway Suite 102Lee’s Summit, MO 64063816-554-8162www.tasinsurance.com

Taylor Insurance Services800-422-3170www.taylorins.com

Truckers Insurance Associates515-276-7704www.truckers-insurance.com

Valley Insurance Agency AllianceHenry Powers7745 Carondelet Suite 200Clayton, MO 63105314-333-4910www.viaa4u.com

W.A. Schickedanz Agency618-233-0644www.waschickedanz.com

WestropeTara Shertenlieb801 W. 47th St. Suite 500Kansas City, MO 64112816-842-8222www.westrope.com

Westrope General Agency816-434-1633www.mgakcmo.com

Missouri Employers Mutual InsuranceA peach of a claims repWhen’s the last time you heard someone say they mailed an emotional thank-you note to their workers’ compensation insurance company? Sent flowers to the desk of their nurse case manager? Delivered peaches grown on their own farm to their claims representative? Generally, claims stories go the way of horror or thriller, not romantic comedy or heart-warming drama. At MEM, we’ve hung up the notes, smelled the flowers and tasted the peaches, and it’s our reward – and pleasure – to change the stories people hear about workers’ comp claims. Timely, personal claims service isn’t something we strive for; it’s a requirement and just part of the MEM difference.

maia associate members continued from page 27

trust.

acuity.com


800.873.4552PHLY.com

Philadelphia Insurance Companies is the marketing name for the insurance company subsidiaries of the Philadelphia Consolidated Holding Corp., a Member of the Tokio Marine Group. Coverage(s) described may not be available in all states and are subject to Underwriting and certain coverage(s) may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. © 2010 Philadelphia Insurance Companies

Philadelphia Insurance Companies (PHLY) designs, markets & underwrites commercial Property and Casualty Insurance products, tailored for the unique exposures faced by today’s organizations and professionals.

Bronze Partner_10.indd 1 12/21/2010 11:09:06 AM

myturn continued from page 7

While there are credible consumer groups that deal in good faith and are straight for-ward with their concerns and initiatives, there are some that can best be described as disin-genuous. These groups essentially tout posi-tions that want producers eliminated from the system, do not want private health insurers to incur any profit and want to mandate that all employers provide health insurance for em-ployees. Essentially, they want every possible medical treatment covered at no cost to the individual – or better said, they want to move our system to one that is taxpayer funded and government run (and that may even provide funds to pay for the very existence of their organizations).

It is always amazing to me that some of these self-proclaimed do-gooders do not want knowledgeable producers involved in the health insurance delivery system. They seem to hold to the mistaken belief that insurance is a commodity and producers are nothing more than leeches on the system.

Insurance of any type involves signifi-cant needs analysis, assessment of risk and evaluation of products available, not to men-tion counsel and assistance at claim time. Nevertheless, some of these folks pursue the

idea that there is no need for licensed profes-sionals in the process. Their answer, of course, is that, as consumer advocates, they will perform all of those functions.

If that is ultimately what they want, then why don’t they more clearly state their support for elimination of the testing, licensing and regula-tion of insurance producers? It seems to me that either you want educated, licensed professionals involved and held accountable, or you don’t.

As I think about the stages of change relating to this issue and catch the barbs thrown our di-rection, I am reminded of a quip by Washington Irving included in Tales of a Traveller, which re-lates to a mobile type of stage.

Irving noted, “There is certain relief in change, even though it be from bad to worse! As I have found in traveling in a stagecoach, that it is often a comfort to shift one’s position, and be bruised in a new place.”

In spite of a few bruises, I can assure you that our positions representing your interests will not shift.

On the other hand, I might suggest to some of those who would pursue hidden agendas rather than work to create a system that is reasonable and workable among all constituencies that they take the advice of the old Hanna-Barbera car-toon character, Snagglepuss, and simply, “Exit, stage left!”


Enforcement by the Missouri Department of Insurance, Financial Institutions and Professional Registration resulted in consum-ers receiving $10.5 million from their insurance companies in 2010. The money was returned through the departments’ mediation efforts on behalf of consumers who had filed complaints, as well as through the department’s market conduct examinations.

Mediation of consumer complaints resulted in nearly $9.5 million in recoveries. The most common reasons for complaints to the depart-ment included denial of claims, claim delays and unsatisfactory offers. The department recorded the most complaints in health insur-ance, followed by auto and homeowners. Some notable accomplishments from the past three months include:

•A health insurer originally denied a claim for knee-replacement surgery, saying it was part of a pre-existing condition. After the consumer filed a complaint with the depart-ment, the insurance company reopened and reprocessed the file, ultimately paying a claim of $35,000.

•A couple purchased a cancer policy in May. The husband was diagnosed with lung cancer that August. The company denied the claim twice: first for “insufficient proof of loss” and later for the diagnosis being made within the first 30 days of coverage. However, after the department began working the consumer complaint, the company issued a letter of apology stating that the couple’s policy does not contain a 30-day waiting period and paid all claims totaling $11,000.

•An elderly couple in Springfield complained that an investment broker claiming to be with the “Senior Division” of the state of Missouri put nearly 50,000 into an annuity. The department investigated the case and the investment adviser, and the insurance

company agreed to return the full $48,600 to the couple, along with interest for the time it was invested.

“Protection of Missouri consumers is our top priority,” says John M. Huff, DIFP director. “The average consumer recovery was $7,000.”

For the year, the department fielded more than 4,200 formal complaints and assisted more than 3,400 consumers in writing and an-other 20,000 over the telephone. The top cate-gories of complaints were as follows: by reason – claim denial (1,007 complaints), claim process-ing delay (816), unsatisfactory settlement offer (462); by line of insurance – health (1,294), auto (956), homeowners (633).

The department’s Market Conduct Section completed 23 examinations in 2010, and re-turned nearly $1 million to consumers who had not been paid enough for claims or whose pre-miums had risen too high. The Market Conduct Section also collected more than $900,000 in fines from insurance companies.

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The best security system for your clients’ high net-worth portfolios is Burns & Wilcox.

Kansas City, Kansas913.451.3135 toll free 866.476.0439 fax 913.451.3156kansascity.burnsandwilcox.com

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27746_KS1_MO1_MissouriAgent.indd 1 1/31/11 5:08 PM

A revolting development: personal liability arising from workIn the January-February 2011 Missouri Agent, Lewis Melahn wrote an article, “Coverage Dilemma,” alerting agents to the recent deci-sion by the Western District Missouri Court of Appeals that ruled that workers’ compensation is no longer the sole remedy for an employee’s work related injury. In the past Missouri, as well as the majority of other states (except Arkansas, Maryland, Vermont), did not allow an injured worker who was covered under workers’ comp to sue a fellow employee for that employees’ negligence in causing the ac-cident. Now an employee can sue his or her fellow employees!

One of the key elements of Melahn’s article dealt with the fact that there is very little cov-erage available for an employee who is sued by a co-worker for a work-related injury. Let’s review the various coverages and why or when coverage might or might not provide coverage.

In the commercial general liability and businessowners policies, the definition of an insured includes employees but goes on to exclude coverage for injuries to fellow or co-employees. The CGL says the following qualify as insureds:

The entity or person designated in the Declarations – as an individual and their spouse; a partnership or joint venture and their members, partners, and spouses; a limited liability company and its members and managers; an organization other than a partnership, joint venture or limited lia-bility company and its “executive officers” and directors, and stockholders; a trust and its trustees, but only with respect to their duties or conduct as such.

The CGL and BOP go on to say:

Each of the following is also an insured: “volunteer workers” or your “employees,” other than either your “executive offi-cers” or your managers, but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However “employees” or “volunteer workers” are

not insureds for injury to a co-”employee” while in the course of his or her employ-ment or performing duties related to the conduct of your business.

In addition to failing to meet the defini-tion of an “insured” when it concerns bodily injury to a co-employee while in the course of employment, the CGL and BOP exclude an ob-ligation under a workers’ comp law and bodily injury to an employee of the insured arising out of and in the course of employment by the in-sured or arising while performing duties related to the conduct of the insured’s business. This excludes coverage for all of the various entities, as well as their owners and partners, and any other individuals who fall within the definition of “insured.”

Although there are some individual insurance companies that offer endorsements to give back coverage for fellow employees, there is not a standard endorsement to do so.

The business auto policy is another source when looking for coverage for a fellow em-ployee claim; however, the standard BAP, if the injury were to arise from the use of an auto-mobile covered under the policy, also excludes coverage. The exclusion reads:

“Bodily injury” to any fellow “employee” of the “insured” aris ing out of and in the course of the fellow “employee’s” employ-ment or while perform ing duties related to the conduct of your business …

The BAP also contains a workers’ comp and employers’ liability exclusion very similar to the exclusion found in the CGL and BOP poli-cies. However, unlike the CGL and BOP, there are endorsements CA 20 55, “Fellow Employee Coverage,” and CA 20 56, “Fellow Employee Coverage for Designated Employees/Positions,” that remove the fellow employee exclusion and thus provide coverage.

Looking next to the workers’ comp policy, coverage is restricted to the named insured, as it is in employers’ liability coverage. The defini-

technicalities

Jack ChapmanMAIA Technical Committee

Bowersox Insurance Agency Co.


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tion of insured under the workers’ comp and employers’ liability insurance policies says that if an organization is a partnership, and if you are one of the partners, you are an insured, but only in your capacity as an employer of the partnership’s employees. Thus, if you are an individual or a partnership, and you are sued for an injury to a fellow employee, there would be coverage as it would arise out of and in the course of the injured employee’s employment by you. If the business is a corporation or LLC, there is no provision for coverage to apply to the individual officer or member, as the injured employee is not employed by “you.”

Commercial umbrella liability policies tend to not be as standard as other liability coverages, but under the ISO commercial umbrella, there is an exclusion for:

“Bodily injury” to: (1) An “employee” of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured’s business; or (2) The spouse, child, parent, brother or sister of that “em-ployee” as a consequence of Paragraph (1) above. This exclusion applies whether the insured may be liable as an employer or in any other capacity, and to any obligation to share damages with or repay someone else who must pay damages because of the injury.

The exclusion does give back some coverage in stating:

This exclusion does not apply to the extent that valid “underlying insurance” for the employer’s liability risks described above exists or would have existed but for the exhaustion of underlying limits for “bodily injury.” Coverage provided will follow the provisions, exclusions and limitations of the “underlying insurance” unless other-wise directed by this insurance.

Coverage is as limited under the ISO commer-cial umbrella as under the primary coverages.

Under homeowners personal liability, cover-age does not apply to:

Bodily injury… arising out of or in connec-tion with a “business” conducted from an “insured location” or engaged in by an “insured,” whether or not the business is owned or operated by an insured or em-ploys an insured.

There is not an endorsement available for the homeowners policy that will remove this exclusion.

Under the personal auto policy, there is cov-erage as long as the insured is not the employer and as long as the vehicle is not being used as a public or livery conveyance. But there is an ex-clusion under the PAP for a vehicle provided or available for the regular use of an insured, so if the vehicle that is being used at the time of an injury to a fellow employee is the insured’s employer’s vehicle and that vehicle is available or regularly used by an insured, under the PAP, there is no coverage.

It is possible to close the gap under the PAP by adding PP0306, “Extended Non Owned Coverage.” This endorsement removes the exclusion for an automobile furnished or avail-able for the regular use of the named individu-al, family members and the spouse.

Although personal umbrella policies tend to be different from company to company, the ISO PUP contains an exclusion much the same as the homeowners policy, and thus there would be no coverage under the PUP for the fellow employee suit.

In summary, workers’ comp in Missouri is no longer the sole remedy, and a fellow employee can be sued individually for their negligence in whole or part that causes an injury. Coverage for the fellow employee is extremely limited to non-existent, and as insurance agents, we need to be aware of the new exposure and limited ability to respond to the need of our clients. Or we need to convince the legislature to amend the mistake they made when amending the Missouri Worker’s Compensation Act in 2005.

technicalities continued from page 33

Professional DevelopmentEducation

Title Description/Date/Lo ca tion

*Early Bird Discount price applies to registrations received at least two weeks prior to class date.

CISR — Commercial CasualtyApproved for 8 p-c CE credits in MissouriTuition: $181 ($163 Early Bird Discount*)

Agents gain an understanding of the commercial general liability policy; improve cross-selling skills; review the business auto policy; and discuss workers’ compensa-tion and employers’ liability policies.

Dates and Locations: March 8, Show-Me Center, Cape Girardeau March 9, Hilton Garden Inn, Independence April 5, MAIA Headquarters, Jefferson City April 12, DoubleTree Hotel, Chesterfi eld May 10, DoubleTree Hotel, Springfi eld

Insider Tips on Certifi cates of InsuranceApproved for 4 ethics CE credits in MissouriTuition: $80

This class is available for members only. Bill Wilson, one of the industry’s foremost experts on the subject, will examine issues such as business costs and errors and omissions exposure. MAIA’s retained attorney will cover Missouri-specifi c laws and regulations.

Date and Location: March 10, MAIA Headquarters, Jefferson City

E&O — A Practical Guide to Agency E&O Risk ManagementApproved for 6 ethics CE credits in MissouriTuition: $70

This errors and omissions seminar, open to members whose agencies are attending the Small Agency Conference, focuses on providing practical guidelines and tools for effective loss control. The session incorporates real-life sce-narios agency employees probably have already encountered.


CISR — William T. Hold SeminarApproved for 8 p-c CE credits in MissouriTuition: $181 ($163 Early Bird Discount*)

The Hold Seminar is now open to any individual regardless of designation. It covers specialized subjects such as bonds and professional liability to help agency employ-ees better serve their customers. No examination.

Date and Location: April 7, DoubleTree Hotel, Springfi eld

Risk Specialist Series — Insuring Cyber LiabilityApproved for 12 p-c credits in MissouriTuition: $250 ($199 Early Bird Discount by April 8)

Agents will review the technology environment and its exposures, including crisis management, privacy and security liability, and other areas of fi rst- and third-party risk exposure related to cyber business. Open to members only.

Dates and Location: April 20-21, MAIA Headquarters, Jefferson City

CIC — James K. Ruble SeminarApproved for 20 CE credits in p-c, l-h and ethis. See the breakdown online at www.missouri agent.org.Tuition: $436

The Ruble graduate seminar is an advanced course for CIC and CRM designees that covers unique risks and how to insure them. Students will become familiar with terminology thall enable them to speak the language of specialized areas of risk. ForCIC and CRM designees only.

Dates and Location: April 27-29, Ameristar Casino, St. Charles

Professional DevelopmentEducation

Title Description/Date/Lo ca tion

*Early Bird Discount price applies to registrations received at least two weeks prior to class date.

CISR — Commercial CasualtyApproved for 8 p-c CE credits in MissouriTuition: $181 ($163 Early Bird Discount*)

Agents gain an understanding of the commercial general liability policy; improve cross-selling skills; review the business auto policy; and discuss workers’ compensa-tion and employers’ liability policies.

Dates and Locations: March 8, Show-Me Center, Cape Girardeau March 9, Hilton Garden Inn, Independence April 5, MAIA Headquarters, Jefferson City April 12, DoubleTree Hotel, Chesterfi eld May 10, DoubleTree Hotel, Springfi eld

Insider Tips on Certifi cates of InsuranceApproved for 4 ethics CE credits in MissouriTuition: $80

This class is available for members only. Bill Wilson, one of the industry’s foremost experts on the subject, will examine issues such as business costs and errors and omissions exposure. MAIA’s retained attorney will cover Missouri-specifi c laws and regulations.


E&O — A Practical Guide to Agency E&O Risk ManagementApproved for 6 ethics CE credits in MissouriTuition: $70

This errors and omissions seminar, open to members whose agencies are attending the Small Agency Conference, focuses on providing practical guidelines and tools for effective loss control. The session incorporates real-life sce-narios agency employees probably have already encountered.


CISR — William T. Hold SeminarApproved for 8 p-c CE credits in MissouriTuition: $181 ($163 Early Bird Discount*)

The Hold Seminar is now open to any individual regardless of designation. It covers specialized subjects such as bonds and professional liability to help agency employ-ees better serve their customers. No examination.

Date and Location: April 7, DoubleTree Hotel, Springfi eld

Risk Specialist Series — Insuring Cyber LiabilityApproved for 12 p-c credits in MissouriTuition: $250 ($199 Early Bird Discount by April 8)

Agents will review the technology environment and its exposures, including crisis management, privacy and security liability, and other areas of fi rst- and third-party risk exposure related to cyber business. Open to members only.

Dates and Location: April 20-21, MAIA Headquarters, Jefferson City

CIC — James K. Ruble SeminarApproved for 20 CE credits in p-c, l-h and ethis. See the breakdown online at www.missouri agent.org.Tuition: $436

The Ruble graduate seminar is an advanced course for CIC and CRM designees that covers unique risks and how to insure them. Students will become familiar with terminology thall enable them to speak the language of specialized areas of risk. ForCIC and CRM designees only.

Dates and Location: April 27-29, Ameristar Casino, St. Charles

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AFI_MAIA_ad.indd 1 1/31/11 11:37 AM

The Missouri Association of Insurance Agents first began conducting the Certified Insurance Counselors Program 35 years ago, in partner-ship with the Society of CIC, and helped to take the program nationwide.

The CIC Program, which originated in 1969 in Austin, provides practical, real-world educa-tion to the practicing insurance professional. “Recognition of the CIC designation has spread exponentially during the past 35 years,” MAIA Executive Vice President Larry Case states. “Today it is widely respected as a symbol of advanced knowledge and achievement.” MAIA members currently have a combined total of 523 CIC designees.

The five CIC institutes are popular choices for licensed agents in need of continuing edu-cation credits in Missouri. These institutions include: Personal Lines, Commercial Casualty, Commercial Property, Life and Health, and Agency Management.

During 2011, MAIA will conduct six CIC in-stitutes and two James K. Ruble Graduate Seminars in locations across the state. Ruble Seminars were developed as advanced, special-ized education programs for designated CICs. Get information on specific institutes by visiting the MAIA website at www.missouriagent.org.

The CIC Program is the cornerstone of The National Alliance for Insurance Education & Research, which provides a wide range of edu-cational programs to the insurance and risk management industries. For additional infor-mation about the CIC Program and education opportunities from MAIA, visit www.missouria-gent.org, or contact Emily Koenigsfeld at 800-617-3658 or [email protected].

CIC announces new tenured statusThe National Alliance for Insurance Education & Research has announced a new tenured status for CIC designees who have held the designa-tion for 25 years or longer, as well as those who are 70 years old or older. Designees who are in good standing with the Society of CIC; are current, dues-paid members; and meet either of the above requirements are now considered tenured members.

Tenured members may maintain their desig-nation by paying their annual dues and meet-ing their birth month update requirement every other year rather than annually. Each Tenured CIC retains all of the rights and privi-leges of the designation and of their member-ship in the Society.

If you have questions about your eligibility for tenured CIC status, contact MAIA’s Emily Koenigsfeld at 800-617-3658 or [email protected].

CIC educating insurance professionals in Missouri since 1976



Enforcement actions• John B. Anderson, Springfield, bail bond agent

license refused.

• James A. Bayer, St. Louis, complaint and request to find cause to discipline insurance producer license filed.

• Paul Berry III, St. Charles, order issued to vacate without prejudice a Sept. 10, 2010, order to re-fuse bail bond agent license in order to allow the Consumer Affairs Division, Investigations Section, to further investigate applicant.

• Barry Block, Creve Coeur, voluntary forfeiture of $1,200 for violations of bail bond law.

• Sonya Cerna, Fayetteville, Ark., voluntary forfei-ture of $250 for misrepresentation on non-resi-dent insurance producer license.

•Michael W. Conway, Bonne Terre, insurance pro-ducer license refused.

• Bart Cooper, Kansas City, voluntary forfeiture of $150 for violations of bail bond law.

•Wakamba K. Guichard, Oviedo, Fla., non-resident insurance producer license revoked.

• Regina S. Hembree, Seneca, insurance producer license revoked.

•Marcus J. Janitch, St. Charles, bail bond agent li-cense revoked.

•Michael Kaestner, St. Louis, voluntary forfeiture of $250 for violations of insurance law.

•Gregory L. Kemp, Lutz, Fla., non-resident insur-ance producer license renewal refused.

•Daniel L. Kimmel, Rocky Mount, bail bond agent license refused.

•Anthony R. King, Joplin, forfeiture of $500 and order of compliance filed.

•Michael L. Lawrence Sr., St. Louis, bail bond agent license refused.

• Edward L. Loughary, Crystal City, revised order issued, surety recovery agent license refused.

• Jeffrey MacDonald, Maryland Heights, voluntary forfeitures of $1,000 for failing to report an ad-ministrative action in another state within 30 days of the final disposition of the matter.

•Dwayne A. McCoy, Lee’s Summit, bail bond agent license refused.

• Renee McGovern, Buffalo Grove, Ill., voluntary forfeiture of $250 for failing to report an admin-istrative action in another state within 30 days of the final disposition of the matter.

• Ruth E. Moss aka Ruth E. Davis aka Ruth E. Maroney, Conway, insurance producer license refused.

•Angie Pinckney, St. Louis, insurance producer li-cense refused.

•Dorian K. Saunders, O’Fallon, insurance producer license refused.

• John M. Shaver, Topeka, Kan., complaint and request for find cause to discipline insurance pro-ducer license filed.

• Raymond Snyder, Lenexa, Kan., voluntary forfeiture of $250 for failing to report an administrative action in another state within 30 days of the final disposi-tion of the matter.

•David Stanton, Fort Lauderdale, Fla., voluntary for-feiture of $250 for failing to report an administrative action in another state within 30 days of the final disposition of the matter.

•Amy R. Vlahovic, Kansas City, bail bond agent license refused.

•Katherine I. Wilson, Cameron, insurance producer license refused.

• Sylvia Yancy, Kansas City, public adjuster solicitor license refused.

Market conduct exams•Aetna Health, Blue Bell, Pa., curative order filed and

voluntary forfeiture of $37,4000.

• Blue Cross and Blue Shield of Kansas City, Kansas City, stipulation of settlement and curative order filed, and voluntary forfeiture of $3,100.

•Good Health HMO dba Blue-Care, Kansas City, stipu-lation of settlement and curative order filed.

•Group Health Plan, examination report submitted.

• Trisource Healthcare dba Blue-Adv, Kansas City, stip-ulation of settlement and curative order filed, and voluntary forfeiture of $2,700.

Company changes•Acadia Insurance Co., Westbrook, Maine, effective

Jan. 12, 2011, was admitted with property, liability, fidelity and surety, accident and health, and miscel-laneous authorities.

•Accenture Insurance Services, Chicago, effective Dec. 17, 2010, was admitted as a third party administrator.

•Aspen American Insurance Co., Omaha, Neb., ef-fective Dec. 6, 2010, changed its name from FFG Insurance Co. and added property, fidelity and surety, and miscellaneous authorities.

• Brokerage Concepts dba Healthnow Administrative Services, Buffalo, N.Y., effective Jan. 27, 2011, was admitted as a third party administrator.

• Capson Physicians Insurance Co., Austin, Texas, effec-tive Jan. 12, 2011, was admitted with liability author-ity.

• Corvesta Services Incorporated, Roanoke, Va., ef-fective Dec. 17, 2010, was admitted as a third party administrator.

• CPA Insurance Co., West Bloomfield, Mich., effective Jan. 12, 2011, withdrew its certificate of authority.

• Franchised Restaurant Risk Purchasing Group, Minnetonka, Minn., effective Dec. 15, 2010, was reg-istered as a purchasing group.

•Horace Mann Property & Casualty Insurance Co., Springfield, Ill., effective Dec. 9, 2010, redomesti-cated to Illinois.

• Individual Assurance Company Life Health & Accident, Prairie Village, Kan., effective Nov. 24,

regulatoryactions



SUPPORT YOUR MISSOURI WHOLESALERSFor all hard-to-place, Excess and Surplus Lines and specialty accounts.

Call the people that support your organization.

P. O. Box 67 • Jefferson City, MO 65102-0067(573) 635-0736

3D Star Insurance Services 314-436-3318 Fax 314-436-4309 www.3dstarinsurance.comAmerican Surplus Lines Agency, Inc. 913-888-8400 877-642-2752 Fax 866-936-0400 www.ASLAINC.netBohrer, Croxdale & McAdoo 417-869-2550 800-779-2550 Fax 417-869-5102 www.bcmins.comBurns & Wilcox - St. Louis 314-819-0400 800-331-4128 Fax 314-819-0440 www.burns-wilcox.comChris-Leef General Agency, Inc. 913-631-1232 800-548-0491 Fax 913-631-1128 www.chris-leef.comContinental American Agency, Inc. 314-241-7969 866-764-8451 Fax 314-241-1474 www.caains.comDavidson-Babcock, Inc. 913-469-1188 800-203-3223 Fax 913-469-1177 www.davidson-babcock.comGateway Underwriters Agency, Inc. 314-238-0070 800-325-7652 Fax 314-238-0065 www.gua-stl.comGraham-Rogers, Inc. 918-336-2800 800-456-8123 Fax 918-336-7196 www.graham-rogers.comGresham & Associates 417-823-3924 866-251-9646 Fax 417-823-3979 www.gresham-inc.comJ.M. Wilson 816-561-6700 800-507-8656 Fax 816-561-3331 www.jmwilson.comMed James, Inc. - Kansas City 913-663-5500 800-255-6503 Fax 888-216-2014 www.medjames.comMed James, Inc. - Springfield 417-886-3535 800-255-6503 Fax 417-886-2295 www.medjames.comMed James, Inc. - St. Louis 636-524-0080 866-255-6503 Fax 636-524-0088 www.medjames.comMidwestern General 816-246-1200 Fax 816-246-1290 www.mgakcmo.comM.J. Kelly Company 417-883-2688 800-725-7211 Fax 800-678-7211 www.mjkelly.comM.J. Kelly of St. Louis LLC 314-416-4343 877-416-4343 Fax 314-416-4344 www.mjkstlouis.comS.A. Freerks & Associates 314-436-2682 800-342-2601 Fax 314-436-1532 www.safains.comSwett & Crawford 314-821-2699 Fax 314-822-2135 www.swett.comWestrope 816-842-8222 Fax 816-842-3081 www.westrope.com

Association of Missouri

P

32972_Surplus Lines:Layout 1 6/1/10 2:06 PM Page 1

2010, filed Form A Proposed Acquisition of Control of aforementioned company by David A. Dillion, Donald G. Kane II and James L. Harlin.

• JC Stevens Crane and Boom Truck Risk Purchasing Group, Dayton, Ohio, effective Jan. 24, 2011, was registered as a purchasing group.

• Liberty Dental Plans of Missouri, Irvine, Calif., ef-fective Jan. 4, 2011, was admitted as a third party administrator.

• Luxury Real Estate Owners PC of NY, Hartsdale, N.Y., effective Dec. 23, 2010, was registered as a purchasing group.

•Memberselect Insurance Co., Dearborn, Mich., effective Nov. 14, 2010, withdrew its certificate of authority.

•Merastar Insurance Co., Jacksonville, Fla., effective Dec. 13, 2010, redomesticated to Illinois.

•Midwest Insurance Co., Springfield, Ill., effective Dec. 13, 2010, redomesticated to Texas.

•National Trust Insurance Co., Sarasota, Fla., effec-tive Dec. 13, 2010, redomesticated to Indiana.

•North Central Mutual Insurance Co., Albany, effec-tive Dec. 31, 2010, Farmers Mutual Fire Insurance Company of Randolph County merged with and into Farmers Mutual Fire Insurance Company of

Gentry County then changed its name to the afore-mentioned.

•Optumhealth Care Solutions, Golden Valley, Minn., effective Dec. 1, 2010, changed its name from CAN Group.

• Philadelphia Financial Life Assurance Co., Plymouth Meeting, Pa., effective Jan 6, 2011, changed its name from AGL Life Assurance Co.

• Plan Benefit Services, Austin, Texas, effective Jan. 27, 2011, was admitted as a third party administrator.

• Scaffold Industry Insurance Company Risk Retention Group, Dallas, effective Dec. 1, 2010, was registered as a risk retention group; and effective Dec. 27, 2010, was registered as a purchasing group.

• Shahinian RPG, Saratoga Springs, N.Y., effective Dec. 27, 2010, was registered as a purchasing group.

•Wakely & Associates, Largo, Fla., effective Dec. 15, 2010, withdrew as a third party administrator.

•Westcor Land Title Insurance Co., Winter Park, Fla., effective Dec. 8, 2010, was admitted as a title insur-ance company.

• ZC Speciality Insurance Co., New York, effective Dec. 20, 2010, withdrew as a surplus lines insurance com-

pany.

regulatoryactions continued from page 39


Rate reduction for pre-existing condition poolYou may have seen our department’s an-nouncement of a significant premium reduc-tion at the federally-funded high-risk pool. Effective Feb. 1, 2011, rates dropped by 25 per-cent for the new pool, which began accepting applications in July 2010.

This is the second of Missouri’s high-risk pools. The first, the pool mandated by state law, has been providing health insurance to Missourians with pre-existing medical condi-tions for 20 years. The new pool is subsidized by $81 million in federal funds under the Pa-tient Protection and Affordable Care Act. Both are operated by the Missouri Health Insurance Pool, a nonprofit established by state law.

The federally funded pool had about 250 enrollees through the end of the first year. We decided late in 2010 that it was time to take another look at rates, so we sent our actuary back to the drawing board with instructions for a thorough reexamination of costs. He came back with three new health plan options that reduce premiums anywhere from 20% to 27%, depending on which option you choose.

Until Feb. 1, 2011, we offered one plan op-tion with a $1,000 deductible, a $5,950 maxi-mum out of pocket cost and a premium that varied only by age. Now, there are three op-tions, each with different deductibles: $1,000, $2,500 and $5,000. The out of pocket and coin-surance remain the same. Age remains the only rating factor for enrollees.

Agent commission is a one-time flat rate of $150. There are those who believe there should be no agent commissions at all for referrals to MHIP. I am not among them. I firmly believe licensed, qualified agents must play a crucial role in the future of health insurance, so I’m pleased to see compensation for referrals to the high-risk pool.

Improvements at federal high-risk pool, earthquake rumblings

John M. Huff director,Missouri Department of Insurance, Financial Institutions and Professional Registration

As always, you and your clients can get more information from the Missouri Health Insurance Pool at www.mhip.org or 800-821-2231.

Troubling numbers on earthquake insurance in MissouriAs you probably know, February was earth-quake awareness month, which gave us an op-portunity to raise some awareness about prob-lems with earthquake insurance in Missouri’s homeowners market.

Your association leadership has been outspo-ken about earthquake insurance for Missouri homeowners and the shortcomings in the mar-ket. I share those concerns, and unfortunately I have more discouraging news to report. The latest survey of homeowners carriers in Mis-souri shows the rates are going up, and (per-haps consequently) the number of covered homes is going down. Of most concern is that coverage is decreasing in the areas at greatest risk: St. Louis and southeast Missouri. Consider the trends from 2002-2009 on the chart below.

These are some dramatic numbers, and they’re not the only indicators of a problem. Last year at this time, I reported other concerns with the market: large deductibles for structure and contents, unavailability of coverage for masonry homes (common in the St. Louis area), and insurance carriers farming out this risk to surplus lines carriers.

Again, I share your association’s concern that Missouri consumers are not adequately protected from a catastrophic earthquake. We will continue to report on developments in this market, raise awareness, meet with insurers and confer with other Midwestern insurance commissioners to look for solutions.

As always, please contact our department with any questions or comments. And please visit our booth at the upcoming Small Agency

Conference, March 24-25 in Columbia.

This article expresses the official views and opinion of the Missouri Department of Insurance, Financial Institutions and Professional Registration, which may not necessarily be those reflected by the Missouri Association of Insurance Agents.

fromtheDIFP

County residences covered, 2002

residences covered, 2009

increase

Dunklin 54% 37% 118%Mississippi 56% 45% 85%New Madrid 51% 43% 111%Pemiscot 51% 32% 102%Scott 69% 55% 125%Stoddard 63% 49% 38%St. Louis City 48% 36% 27%St. Louis County 73% 63% 17%


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When good things happen to good agents

It’s Monday, December 21, and an agency owner – Let’s call him Bob – is trying to get things wrapped up before the holidays so he can be ready for a nice vacation. He’ll be back after the first of the year. At about 3 p.m., his assistant tells him he has a call from someone named Frank. He asks who Frank is, and she says she doesn’t know. Thinking it might be one of his old college buddies, he takes the call. Frank says he’s an attorney and he wants to talk to Bob about Kenny, a former insurance customer of Bob’s. Frank then tells him that they have a trial starting December 28 and he wants to discuss Kenny with him.

Immediately, Bob’s heart sinks and things start to race through his mind: Will his vacation be ruined? But one thing pops into his mind that he remembers from a Swiss Re loss control seminar he went to a few months earlier. The instructor there said:

If an attorney calls you and wants to talk, remember that unless he’s your attorney, he’s not your friend. And you don’t have to talk to him. Instead, ask what he wants to talk about and don’t volunteer any in-formation. Politely tell him you can’t talk to him and immediately call the claims de-partment at Swiss Re or your E&O carrier.

Bob knows that Kenny has always been a challenging customer (late premium payments, unreasonable requests, failing to report chang-es, etc). What does this lawyer want? Why is he calling Bob?

So Bob tells Frank the lawyer,”I’m sorry, but I can’t talk to you about Kenny,” and he hangs up. He immediately calls his state errors and omissions administrator, who gives him the number for the Swiss Re claims department. Bob calls and speaks with one of Swiss Re’s professional claims staff, Sarah, who goes over everything with Bob, and she tells him that if anyone calls him or if he receives any letters or

documents – including a subpoena – to imme-diately call her.

Sure enough, the next morning, Bob re-ceives a subpoena to testify at a deposition on Thursday, December 24. Merry Christmas!

Bob immediately calls Sarah who tells him to fax the subpoena to her right then, which Bob does. In the next two days, an attorney has been retained to represent Bob, and the attorney contacts the attorney who issued the subpoena. They talk, and the subpoena is sub-sequently withdrawn.

The key to this is not that Bob’s vacation was saved (although that’s nice too), but more importantly that he remembered what he’d learned at a Swiss Re and IIABA endorsed loss control seminar: that any time he is contacted by anyone who wants to talk to him about one of his customers, he should assume that they are not wanting to help him, and he should contact his E&O claims department.

But be careful, if there has been a problem with your customer’s policy or a claim and you receive a call from your customer, a representa-tive from the insurance company or even some-one from your state department of insurance, you may want to call your E&O carrier’s claims staff to get some advice as well.

Here are a few other examples of what hap-pens when agents do the right thing:

1. An agent receives a subpoena for his cus-tomer’s records. He contacts his E&O claims department, which contacts the attorney who issued the subpoena and asks what they want. It’s determined they only want a copy of the customer’s policy. The claims handler obtains that from the agent and forwards it to the attorney.

2. An agent receives a call from the carrier of a policy of a former customer of the agent, and they want to see his file. The agent asks why, and they tell him there is a question about the information that was

Richard F. Lund, J.D. vice president, senior underwriter, Swiss Re

&errors omissions



contained in the application. They tell the agent they just want to help him. The agent hangs up and immediately contacts his E&O claims department.

The claims handler calls the carrier and asks specifically what information they want. They say they don’t know of anything in particular; they just want to see the agent’s file to see if they find any-thing in his notes. The claims handler tells them that if they can tell her anything specific, they’ll see what they can locate, but unless they have a specific request, they can’t provide anything. They never hear back from the carrier.

3. An agent receives a call from an upset former customer who has a claim that was denied by the carrier because the policy expired due to non-payment of the premium. The customer tells the agent they’re going to sue them and hangs up.

The agent immediately contacts his E&O claims department. They discuss what happened, and the claims handler asks if the agent has any documentation about the cancellation. The agent says yes, he has a copy of the letter from the carrier notifying the customer of the can-cellation.

The claims handler helps the agent draft a letter to the customer and pro-vides a copy of the cancellation notice. The agent sends the letter and the notice to the customer, and the agent never hears from the customer again.

4. An agent receives a notice of complaint from the state department of insurance and contacts the Swiss Re claims depart-ment. The claims handler reviews the complaint, discusses it with the agent, contacts the department investigator and helps the agent prepare a formal response refuting the allegations in the complaint. In some limited instances, an attorney is retained to help the agent respond to the complaint. In most cases, the complaints are resolved in the agent’s favor without further action. But if the complainant pursues further action, in-

cluding filing a lawsuit, the groundwork to defend the agent has already been laid.

In each one of these cases, as soon as the agent was aware that there might be a problem that could lead to a claim, the agent immediately contacted his or her E&O claims department. The claims department then gathered information from the agent and took steps to avert a claim. In many instances, taking immediate action with the claims department before an actual lawsuit arises allows the claim to be averted.

So you see, not all E&O claim situations have a bad outcome. Many times, good things happen to good agents.

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or refer-enced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders.

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of the Swiss Re group.

Copyright 2010 Swiss Re America Holding Corporation

errors&omissionscontinuedfrompage43

Richard F. Lund, J.D., is a vice president and senior underwriter of Swiss Re/Westport, under-writing insurance agents E&O coverage. He has also been an insurance agents E&O claims coun-sel and has written and presented numerous E&O risk management and loss control seminars, mock trials and articles nationwide since 1992.


Bristol West Auto now sold as ForemostForemost Insurance Group has announced the rebranding of Bristol West Auto Insurance to Foremost as part of the company’s market strategy. The transition, which began in 2009, is now complete and effective in Missouri.

State Auto announces new leadership structureState Auto Financial Corp. and State Automobile Mutual Insurance Co. recently announced the retirement of Executive Vice President and Chief Operating Officer Mark A. Blackburn. He will serve in an advisory role until his November 2011 retirement. Rather than appoint a new COO, the executive leadership team reporting to Bob Restrepo, president, chairman and CEO, has been restructured to broaden their responsi-bilities. Details are available on the State Auto website at www.stateauto.com.

The Hartford sells subsidiaryThe Hartford Financial Services Group and Sedgwick Claims Management Services have announced a definitive agreement to sell Specialty Risk Services to Sedgwick CMS. SRS, a wholly-owned subsidiary of The Hartford, is one of the nation’s leading third-party claims administrators.

ACUITY sets growth record in 2010ACUITY announced its 2010 growth results, which showed continued strong performance and record-setting achievements. A 3.7 per-cent growth in policy count led to an all-time record number of policies written at nearly 243,000. In personal lines, the insurer wrote an all-time record $46 million in new business. In commercial lines, ACUITY set a new policy count record and quoted nearly 56,000 ac-counts, more than ever before.

Electric Insurance adds roadside servicesBeginning this year, Electric Insurance Co. added round-the-clock emergency roadside assistance services to its towing and labor cov-

erage. The new services, provided through Cross Country Automotive Services, include towing, lock-out assistance, tire changes, jump starts, fuel delivery and more.

New faces, new placesSonja Sheckler has joined FirstComp as the Eastern Missouri sales manager.Sergio Gutierrez has transitioned to the role of Missouri underwriter for FirstComp.

MAIA Company Partners are invited to submit news and press releases to Amy Hoffman at [email protected] for possible publica-tion. MAIA reserves the right to edit or omit any submissions.

companypartnernews

COMMITMENTA PROMISE WE DON’T TAKE LIGHTLY

“When it comes to my hockey team, I’m loyal to a fault. That same commitment and loyalty applies to serving our agents. My team takes pride in being a valuable niche for hard to place personal lines.

Stacey Kiser, CISRPersonal Lines & Garage Manager—and valuable team player

Connect with Stacey on LinkedIn!

800.666.5692 jmwilson.com

Managing General Agency Since 1920

Property/Casualty • Professional Liability • Surety Commercial Transportation • Personal Lines • Premium Finance


M.J. Kelly announces multiple ac-quisitionsM.J. Kelly Co., Springfield, has announced three recent acquisitions: a significant portion of the Springfield operations of Alexander, Morford and Woo; RDS Group of Iowa; and M.J. Kelly of St. Louis’ book of business. M.J. Kelly will integrate staff from both Alexander, Morford and Woo, and RDS Group.

Westrope acquires Midwestern GeneralWholesale insurance broker Westrope has announced the acquisition of the assets of Midwestern General Agency, a binding au-thority and small brokerage operation based in Kansas City. Midwestern will become part of the Westrope operations under the name Westrope General Agency.

Debbie McCLendon, previously COO of Schifman, Remley and Associates, accepted the appointment of senior vice president and managing director of the new Westrope General Agency.

IPMG opens St. Louis locationsInsurance Program Managers Group, St. Charles, Ill., recently opened a St. Louis loca-tion operating under the name IPMG. The new location expands IPMG’s excess and sur-plus lines capabilities and will have the addi-tional capability to place coverage with admit-ted markets for both property and casualty, and workers’ compensation insurance.

Crane receives performance awardCharles L. Crane Agency Co., St. Louis, has been recognized by MAIA Company Partner SECURA as one of its top-five performing agencies in 2010. Tom Berra accepted the award on behalf of the agency, which has made the top five on four other occasions and has represented SECURA for 17 years.

Lockton among fastest growing agenciesLockton Cos., Kansas City, was recently revealed by Insurance Journal to be the nation’s 20th fast-est growing independent insurance agency, based on premium growth between 2007 and 2009. Lockton reported a 12.8 percent premium growth for that time period. Data for the study was analyzed by Demotech and was submitted voluntarily by agencies.

New faces, new placesChristine L. Agee, Clayton, has joined Valley Insurance Agency Alliance, Clayton, as the agen-cy development and commercial lines marketing specialist.Ryan W. Brown, St. Louis, has joined Lockton Cos., St. Louis, as a producer.Gina Payne, Leawood, has joined CBIZ Benefits & Insurance Services, Leawood, Kan., as the na-tional director of wellness.Bernarda Schroer, Leawood, has joined CBIZ Benefits & Insurance Services, Leawood, Kan., as a strategic business partner.

MAIA member agencies are invited to submit news and

press releases to Amy Hoffman at ahoffman@

moagent.org for possible publication.

MAIA reserves the right to edit or omit any

submissions.

agencynews

ClassifiedsThe basic classified ad contains a maximum of 35 words (including head). Cost: $24.00 for up to 35 words. Blind ads: $37.00 for maximum of 35 words. MAIA agency members are entitled to a 50 percent discount on classified ads.

Ads must be submitted in writing to Advertising Manager, Missouri Agent, P.O. Box

1785, Jefferson City, MO 65102-1785. Payment (to AMC) should accompany request.

Deadline for classified ads: 10th of month preceding publication.

When responding to confidential ads, reply to: P.O. Box 1785, Jefferson City, MO 65102-1785.

Some agents have seen it all.

That's whenthey call on us.

workerS' comp inSurance

american interstate insurance company

Silver oak casualty inc.

toll free: 1.888.758.5036 fax: 1.800.450.1091

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Missouri Association of Insurance Agents

PROGRAM2011Listed below are the companies who strongly support the independent agency system and the Missouri Association of Insurance Agents.

DIAMOND

PLATINUM

GOLD ACUITYAccident Fund and United HeartlandColumbia Insurance GroupAnthem Workers’ CompensationCameron Insurance Cos.United Fire Group

BankDirect Capital FinanceTravelersAmerica First Insurance Co.Safeco InsuranceWest Bend Mutual Insurance Co.The Hartford

SILVER EMC InsuranceElectric InsuranceThe Barton GroupSECURA InsurancePatriot Underwriters

Berkshire Hathaway Homestate Cos.Anthem Blue Cross Blue ShieldCNAForemost Insurance GroupContinental Western Group

BRONZE Premium Financing SpecialistsSelective Insurance Co. of AmericaCFM InsuranceOld Missouri Mutual InsuranceAmerican Mining Insurance Co.State AutoHaulers Insurance Co.QBE Agri InsuranceAAA MissouriIllinois Casualty Co.General Casualty Insurance Co.MJ Kelly Co.Bituminous Insurance Cos.MOPERMUnited HealthcareSelect ImagingCapital Premium FinancingTAS Insurance GroupPhiladelphia Insurance Co.Commercial Insurance UnderwritersWestrope

Cornerstone National Insurance Co.Valley Insurance Agency AllianceBMI Cos.J.M. WilsonS.A. Freerks & AssociatesGateway Underwriters AgencyGrinnell Mutual Reinsurance Co.AmTrust North AmericaEncompass InsuranceDairyland Auto & Cycle InsuranceAmerisure Mutual Insurance Co.Fireman’s FundLamm Technical ResourcesAuto Owners Insurance Co.Zenith Insurance Co.Midwestern Insurance AllianceFCCI Insurance GroupInsurance directConnectMed JamesSamba

Missouri Association of Insurance Agents • 800-617-3658 • www.missouriagent.org

PART NERS

Missouri Agent March-April 2011

Documents

Transcript of Missouri Agent March-April 2011