April 2012 IIAW Magazine

wisconsinindependent agent

APRIL 2012

A DAY ON

THE HILL

MOVES

THE IIAW

FORWARD

NEW EXCLUSIVE COMPANY PROFILES INSIDE!

WISCONSIN INDEPENDENT AGENTAPRIL 2012 3

Independent Insurance Agents of Wisconsin725 John Nolen Drive, Madison, Wisconsin 53713

Phone: (608) 256-4429 or (800) 362-7441 ! Fax: (608) 256-0170 ! Web: www.iiaw.com

Executive Vice President - Matt Banaszynski

APRIL 2012Eric Schwartz, Editor

> OUR ADVERTISERS

AAA ................................................................ 46

ACUITY Insurance ........................................... 47

Arthur J. Gallagher.......................................... 41

Badger Mutual ................................................ 44

Big “I” ....................................................... 31, 42

Burns & Wilcox ............................................... 27

IMT Insurance ................................................. 22

Insurance Associates of America ................... 43

Integrity Insurance ........................................ 36

Pekin Insurance .............................................. 42

RLI ................................................................. 38

SECURA Insurance .......................................... 28

SFM ................................................................ 20

West Bend ........................................................ 2

Wilson Mutual ................................................. 45

2011-2012 Exclusive Company Profiles . . . . . . . . . . . . . . . . . . . 4

Open Door Policy Agents Win Big: Certificates Of Insurance Changes Signed Into Law . . . . . . . 12

Commentary From Counsel Nothing Is Free . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Member Profile Robertson-Ryan: Bet Your Guts On Your Paycheck . . . . . . . 26

Marketing Minute Give Yourself A Sales Edge . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

A Day On the Hill A Day To Remember . . . . . . . . . . . . . . . . . . 32

Government Affairs Political Season Begins As Legislative Session Ends . . . . . . 39

2011-2012 Executive Committee

President ............................................................Mike Hierl P.O. Box 949, Fond du Lac, WI 54936-0949

President-elect .............................................. Michael Froh P.O. Box 1320, Sheboygan, WI 53082-1320

Secretary-Treasurer ......................................David Dunker P.O. Box 443, Brookfield, WI 53008-0443

Chairwoman of the Board ...........................Linda Steiner 555 Main St. #320, Racine, WI 53403

State National Director ..................................Skip Hansen 100 North Corporate Drive #100, Brookfield, WI 53045

2011-2012 Board of Directors

Chris Costakis 251 Progress Way #300, Waunakee, WI 53597-2520

Thomas Holter P.O. Box 938, Beloit, WI 53512-0938

Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583

Bruce Kommers P.O. Box 66, Antigo, WI 54409-0066

Jeff Rasmussen 525 Junction Road, Madison, WI 53717

Frederick Thomas 330 East Kilbourn Avenue, Milwaukee, WI 53202

Cap Wallrich P.O. Box 90, Shawano, WI 54166-0090

Matthew Weimer 100 North Corporate Drive #100, Brookfield, WI 53045

Donald Williams P.O. Box 595, Beaver Dam, WI 53916

2011-2012 Committee Chairs

Agency Operations ................................. Sandra Hardrath P.O. Box 1030, Manitowoc, WI 54221-1030

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

Employee Benefits ............................................. Tim Bever 555 Main St. #320, Racine, WI 53403

Finance & Compensation ............................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443

Government Affairs .....................................Tom Helbach P.O. Box 40, Mosinee, WI 54455-0040

Industry Relations ..............................................Ted Haase P.O Box 6, Seymour, WI 54165

Membership Development ................................. Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610

Smaller Agencies ....................................Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236

Technical ......................................................Andy Burkart P.O. Box 1320, Sheboygan, WI 53081-1320

Young Agents .......................................... Derek Wickhem P.O. Box 1500, Janesville, WI 53547-1500

wisconsinindependent agent

On The Cover…

The first annual A Day on the Hill garnered rave reviews and for good reason. Eighty company and agency members took part in the event that culminated with a trip to the Capitol to meet with state senators and representatives. A big thank you goes out to all those who participated. Please go to page 32 for the story and photos.

Cover photo: Justin Ormont

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WISCONSIN INDEPENDENT AGENTAPRIL 2012 5WISCONSIN INDEPENDENT AGENT APRIL 2012 4

Anthem Blue Cross and Blue Shield of Wisconsin

Location Of Company Headquarters: N17 W24340 Riverwood Drive, Pewaukee, WI 53188Founded: Proud resident of Wisconsin since 1940Officers: Angela Braly, CEO Lawrence G. Schreiber, President & GM - Wisconsin Paul Nobile, Regional Vice President Sales & Account Management - Wisconsin Keith Bell, Regional Vice President State Underwriting - Wisconsin

At Anthem Blue Cross and Blue Shield we’re committed to improving the lives of the people we serve and the health of our communities. We believe the best health insurance helps people stay healthy. That’s why our health plans go beyond simply providing health care coverage; Anthem encourages health and wellness by doing the following: !""Offering large networks with outstanding physicians, specialists

and hospitals.!""Issuing helpful reminders when it is time for preventive

screenings.!""Providing programs and information to help individuals take

control of their health and manage chronic conditions.!""Offering comprehensive, “total body” insurance solutions

including dental coverage, life insurance and pharmacy benefits management.

Our value. We’ve been serving our members in Wisconsin since 1940. Located in Pewaukee, we have 1,377 associates on staff with over 1 million members in Wisconsin. Our parent company has over 60 years of experience and, for four years in a row, has been recognized among all health insurers as a Top 3 “America’s Most Admired Company” by Fortune magazine.

Service that exceeds expectations!"97% of claims are processed in 30 days.!"99% claims dollar accuracy.!"Live service hours: 8 a.m. to 6 p.m.!"Claims status available 24/7 online or by phone.

Extensive provider networks!""PPO: 4,458 primary care physicians, 5,606 specialists and 127

hospitals.!""HMO: 3,384 primary care physicians, 4,686 specialists and 122

hospitals.!""The BlueCard® Program provides Blue Cross and Blue Shield

members access to health care services when they’re traveling throughout the country — in addition to providers in more than 200 countries and territories worldwide.

!""Access to a network of about 62,000 participating retail

pharmacies across the country, including most major chains and many independent neighborhood pharmacies.

Cutting-edge technology!""Online enrollment and self-service tools that save time for

employers and members.!"Simplified claims processing. 360° HealthOur innovative 360° Health® Program provides a customized health coverage solution for each employee. By identifying and providing the right programs and engaging employees to use them — we can help improve health and reduce medical claims.

Online toolsAnthem.com offers health and wellness tools to help your employees make the most of their health care. It includes MyHealth Assessment, an online questionnaire that helps members look for health risks and ways to be healthier. Your employees can also find up-to-date health information, watch videos about health and wellness topics, and take advantage of health-related discounts. Integrated products and services!"Pharmacy Benefit Management.!"Behavioral and EAP.!"Dental.!"Vision.!"Life and Disability.!"Productivity Solutions.

Benefits to employer!"One account management contact.!"Single renewal process.!"Administrative efficiencies. Consumer-driven health plansOur Lumenos plans give your employees more control over their health care costs and choices. They can lower costs without giving up the quality of their care.

Lawrence Schreiber

CONTINUED ON PAGE 19

Products Company Specializes In:

Commercial Lines: ACUITY writes accounts of virtually any size, from small Bis-Pak (BOP) policies to accounts generating millions of dollars in premium. We emphasize underwriting discipline and utilize loss control to help pre-qualify accounts. This enables us to be open to many classes, including the best of tougher classes other companies won’t write. Our Bis-Pak is one of the broadest of its kind in the industry and includes ten different plans. Our Internet rating tools make it easy for agents to quote and apply online, and ACUITY ASIST delivers actual policies within seconds. Because of these capabilities, a full 80 percent of new policies are rated and submitted electronically.

Although we write a very broad range of classes, we emphasize contractors, manufacturers, mercantile, service, truckers, and offices, and we offer specialized coverages needed by those accounts. Although we are a standard market, our ACUITY Edge commercial auto product provides agents a terrific market to write business that does not fit regular guidelines.

Personal Lines: : ACUITY is one of the broadest personal lines markets in the industry. We emphasize package policies, including our Per-Pak and Road and Residence, but we also write many monoline accounts. ACUITY is known for offering coverages many carriers will not, such as Home-Biz, UM-PD, Car Damage Replacement Cost, and OEM Parts. We provide enhancement endorsements to expand our competitive basic programs. We have two motorcycle programs and a broad nonstandard auto market.

Because of the robust online capabilities we offer agents, 98 percent of applications come to us electronically. In addition to real-time

online rating, we deliver actual policies to agents within seconds with ACUITY ASIST.

Outlook for the Company’s Future

In 2011, ACUITY set records for business growth across our 20-state operating territory. We grew written premium by 8.1 percent and increased our policy count to an all-time high of 248,000. ACUITY saw strong sales performance in both personal and commercial lines business, and we expect this momentum to continue into the future for several reasons.

A key reason for our optimistic outlook is our faith in and support of the Independent Agent distribution channel. We lead the industry in interfacing our online capabilities to management systems agents already have on their desktops. ACUITY’s technology leadership is proven not just by the high level of use of our systems by agents, but by the recognition we have received. We have earned more technology awards from industry standards association ACORD than any carrier in the nation. We have been named by InformationWeek Magazine as one of the Top 100 technology firms in the country among all industries.

ACUITY also offers financial strength and stability. We are rated A+ by both A.M. Best and Standard & Poor’s and are one the top 100 P&C insurers in the country based on size. We have also been named by Ward Financial Group, an independent industry benchmarking organization, as one of the 50 best-run insurers in the nation for the past 12 years, putting us in the top two percent of companies nationwide.

ACUITY also offers agents a stable workforce, with our voluntary staff turnover averaging just 1%. This low rate is directly attributable

ACUITY

Location of Company Headquarters: Sheboygan, WIFounded: 1925Officers: Ben Salzmann, President & CEO Ed Felchner, Vice President - Marketing & Personal Lines Jamie Loiacono, Vice President - Claims Sheri Murphy, Vice President - Services & Administration Pat Tures, Vice President - Actuarial & Strategic Information Neal Ruffalo, Vice President - Enterprise Technology Lynn Coady, Vice President - Human Resources

Ben Salzmann


Wally Waldhart, Vice President - Sales & CommunicationsEd Warren, Vice President - Commercial LinesWendy Schuler, Vice President - FinanceLaura Conklin, Vice President - Business Consulting


HANOVER INSURANCE GROUP INC.

Location Of Company Headquarters: Worcester, MAFounded: 1852Officers: Frederick Eppinger, CEO Marita Zuraitis, President - Hanover’s P&C Cos. Paul Mueller, President - Hanover’s Midwest Region Todd Bavery, Regional Vice President - Personal Lines, Wis. Andrew Knipfer, Regional Vice President - Commercial Lines, Wis.

The Best Partner for Independent AgentsIn 2003, The Hanover set out on a journey to create a company that would deliver distinctive value to its independent agent partners and their customers every day – one that would help them to compete and win, regardless of the prevailing market conditions. Since then, The Hanover has made unprecedented investments, building a very unique and special organization, staffed by a team of committed and talented professionals, exclusively focused on the needs of its agent partners.

In personal lines, The Hanover has become a true total account writer. Through an initiative the company refers to as “Think Hanover,” it introduced approximately two dozen product and service enhancements to help its agent partners sell value and meet more of their customers’ needs with a single provider.

The Hanover’s commercial lines business offers a wide range of innovative products and specialty capabilities. The company’s “total solution” operating model is based on experienced and insightful local underwriting talent, a broad risk appetite and specialty capabilities, as well as its commitment to responsive, effective customer service.

National Capabilities/Regional ApproachOver the course of its journey, The Hanover has strengthened its organization on every dimension, assembling an outstanding team of professionals, building a world-class products portfolio, creating a culture of execution and developing deep, mutually beneficial partnerships with some of the very best agents in the business. As evidence of its progress, the company holds “Excellent” ratings from A.M. Best.

Making its products available to the best partner agents is a critical component to The Hanover’s strategy. By creating franchise value, The Hanover enables partner agents to further differentiate themselves in the marketplace, helping to bolster customer satisfaction, productivity and profitability above industry averages.

At a GlanceThe Hanover Insurance Group, Inc. (NYSE: THG) offers a wide range of property and casualty products and services to businesses, individuals, and families through a select group of agents and brokers. The Hanover is ranked among the top 25 property and casualty companies in the United States. Founded in 1852, The Hanover is proud to be celebrating 160 years of delivering on its promises to its agent partners and their customers.

Based in Worcester, Mass., The Hanover Insurance Group, Inc. is the holding company for a group of insurers that includes The Hanover Insurance Company, also based in Worcester, Citizens Insurance Company of America, headquartered in Howell, Michigan, Chaucer Holdings PLC, based in London, and their affiliates. Through Chaucer, the company underwrites business at Lloyd’s of London in several major insurance and reinsurance classes, including property, marine and aviation, energy, U.K. motor and casualty.

Local agents interested in learning more about The Hanover can contact Todd Bavery at (630) 521-8430 or Andrew Knipfer at (414) 467-5626.

Company Web site: www.hanover.com

Fred Eppinger

CAPITOL INSURANCE COS.

Location Of Company Headquarters: Middleton, WIFounded: 1959Officers: David Pauly, Chairman & CEOAlan Ogilvie, Executive Vice President & COO - Property & CasualtyRichard Allen, President - Surety & Fidelity OperationsMark Rebein, President - Professional LinesFrederick Taransky, Vice President - Finance, CFO & TreasurerMike Bondura, Vice President - ClaimsDiane West, Vice President - Human Resources & AdministrationTroy Lethem, Vice President - Information Systems, CIO

Products Company Specializes In:Capitol Insurance Companies (“Capitol”) has been insuring business owners since 1959 earning a solid reputation for having quality products and services that meet our agent’s needs. The company underwrites specialty insurance products in niche areas of the commercial property and casualty and the fidelity and surety market segments. We offer property & casualty insurance products on either an admitted or surplus lines basis. Our products are tailored to the needs of customers in over 300 classes of business including sports leagues and camps, special events, detective agencies, security firms, banquet halls and clubs, restaurants, taverns, hotels/motels, daycare centers, beauty salons, resorts, campgrounds, mobile home parks, apartments/condominiums, vacant buildings and contractors. In addition to providing contract surety bonds for the construction sector, our commercial fidelity and surety product offerings include employee dishonesty coverage, business service bonds, judicial bonds, public official bonds and probate bonds. Capitol is a U.S. Treasury-authorized company for surety bonds with an underwriting limit of up to $21,000,000 per bond. The company also writes program business and miscellaneous professional liability insurance (e.g., Errors & Omissions).

Capitol’s operating entities are Capitol Indemnity Corporation, Capitol Specialty Insurance Corporation and Platte River Insurance Company. Our insurance products are available through a national network of insurance agents and brokers. We are licensed to underwrite insurance and surety products in all 50 states plus the District of Columbia.

Future Outlook Capitol has consistently produced an underwriting profit and has an A (“Excellent”) rating from the A.M. Best Corporation. Capitol Indemnity Corporation, Capitol Specialty Insurance Corporation and Platte River Insurance Company are subsidiaries of Alleghany Insurance Holdings LLC, whose parent company, Alleghany Corporation, is publicly traded on the New York Stock Exchange (ticker symbol “Y”).

We are committed to the agency distribution system and are well positioned for future growth. Capitol’s success stems from our strong agency relationships – we strive to be the easiest company for our agents to do business within our market segments. Capitol looks forward to the future, confident we can continue to meet the needs of our agents and policyholders by providing them with the products and services they need to be successful in a constantly changing insurance marketplace.

Other CommentsCapitol’s focus is on the agent. We offer an Internet based rating system, electronic transmission of applications, claims reporting, quick quotes, online billing information, loss information, agency reporting and a host of other ePortal services designed to make it easier to do business with Capitol. We strive to be a leader in our agencies and focus on delivering services that meet the needs of our agents, such as flexible billing options, unique coverage enhancements, access to a broad array of specialty classes of business and quality customer service. We realize that a large part of our success is due to the relationships with our independent agency partners here in Wisconsin. We will continue to do everything we can to provide you with the tools you need to be successful both now and in the future.

Capitol’s employees are very active in our communities participating in various charitable events and sponsoring organizations such as the American Cancer Society, Big Brothers/Big Sisters, Domestic Abuse Intervention Services, the American Heart Association, and the United Way.

Company Web site: www.capitol.net

The Capitol Team

David Finkelstein, Vice President - Sales & MarketingLarry Seymour, Vice President - Actuarial & Chief ActuaryKevin Klestinski, Vice President - UnderwritingKathy McCarney, Vice President - Property & Casualty OperationsCarmen Raha, Controller


Integrity Insurance — Investing in SuccessIntegrity Insurance, along with our network of Independent Agents, consistently provides high-quality service to our customers. Our brand promise is focused on service, trust, relationships and a commitment that our decisions and interactions will provide the ultimate customer experience – the way it should be®. Focused on “redefining partnership”, Integrity’s vision is to set the industry standard for independent agency/carrier partnerships through the depth, strength of commitment, innovation and return on investment of our relationship. Our Voice of the Customer program gathers feedback from customers, both agents and policyholders, who have experienced our service and allows us to continually improve on that service, establishing that we are a company that listens.

Agents can quickly and easily receive answers through IntegrityLive®, an instant messaging tool. The newly developed My Integrity Account gives our insureds 24/7 access to all of their policy information, including current payment and claims status as well as an avenue to communicate directly to their Integrity agent.

We believe delivering outstanding service – whether it be formalizing a consultative business model with our agents or processing claims for our insureds – is the key to our success. We’re rated “A” (Excellent) by A.M. Best and in partnership with Ohio-based Grange Insurance, a $1 billion insurance provider. When you deal with Integrity, we’ll take care of your needs today and we’ll be here for you tomorrow.

Commercial Lines — Best in ClassWe continue to write the best in class in almost any segment with underwriters ready to take your call. Due to the success of our field underwriter program, we’ve increased our personnel to reach out to more agents, making it even easier to do business with Integrity. We

continue to offer unique products, such as our XPanded Premier® Policy (XPP) for Manufacturers, Wholesalers, Building Owners’ and Mercantile & Services. XPP offers customized, flexible coverages to ensure you’ll have the right coverage, at the right price.

Integrity enhances our partnership by offering Program and Association business opportunities where we work with our agents and their customers to develop specialized, niche products while also offering non-standard products like Auto Accel®, a commercial auto product for a broader selection of risk types and classes.

We’ll bring value to your customers with expert loss control services offering ways to improve safety and training through a consultative approach versus inspection style method.

Personal Lines — Ease of Doing Business with a Personal TouchAgents look to us to provide products and coverages they can offer their clients to attract and retain customers. And they can do just that with IntegrityOneSM, our new “package” policy. This policy provides enhanced coverage, additional discounts and customer convenience. We have also enhanced numerous features in our Web-based processing software, making it easier than ever to quote and process policies with Integrity. Another way we use technology is to provide online retention tools, making it easy to keep clients enrolled in Integrity’s products.

Meeting the needs of a diverse client base is important. That’s why we offer PinPoint® products targeting a broad auto and home market, including renter and condo owners to help you increase sales. Try Integrity’s non-standard auto product called Passport® — it’s easy to quote, features low-cost coverage with low down payment options and offers the services of an experienced

INTEGRITY INSURANCE

Location of Company Headquarters: Appleton, WIFounded: 1933Officers: Joseph DiMartino, President & CEO Cindy Heindel, Vice President — Human Resources/Administration Brad Kelly, Vice President — Sales & Marketing Christian Martin, Vice President — Claims Jill Stache, Vice President — Commercial Lines Julie Walker, Vice President — Strategic Planning Donya Wilson, Vice President — Personal Lines

Joe DiMartino


THE IMT GROUP

IMT INSURANCE COMPANY & WADENA INSURANCE COMPANY

Location Of Company Headquarters: 4445 Corporate Drive, West Des Moines, IA 50266Founded: 1884Officers: Richard Keith, President & CEO Dennis Patterson, Senior Vice President – Information Systems Greg Blythe, Vice President – Finance Brad Buchanan, Vice President – Personal Lines Dalene Holland, Corporate Secretary Sean Kennedy, Vice President – Research & Development Rich Nauman, Vice President – Marketing Chris Owenson, Vice President – Claims Mark Vasey, Vice President – Commercial Lines

Products Company Specializes In:The IMT Group uses a strong partnership with its Wisconsin Independent Agents to meet and exceed the needs of our personal lines and commercial lines clients. The IMT Group consists of IMT & Wadena Insurance Companies and insures autos, homes, businesses and more. Wadena Insurance Company has a cutting-edge Auto program along with Businessowners, Workers’ Compensation, Power Sports and Boatowners programs. IMT Insurance Company offers a wide array of personal and commercial lines products including many specialty “Paks” in the commercial area such as: Auto Kleen Pak, Convenience Pak, Grocery Pak, Office Pak, Par Pak, Storage Pak, and Vet Pak. Bonds are also an important line of business at IMT. Together, IMT and Wadena offer the products needed for a well-rounded property and casualty agency.

Outlook For The Company’s Future:Both IMT and Wadena Insurance Companies are strong Midwest regional carriers that understand the needs of the people and agencies that reside in your area. Financial stability is one of our strengths — we are rated A (Excellent) by A.M. Best. We are a stable company with over 50% of our workforce being with us for over 10 years. We have also added a number of good young Generation Y employees who have generated a higher energy level within the company. One of The IMT Group’s main strengths is our agency force. We use only independent agents and have over 800 agencies in the six states in which we do business. Our goal this year is to sign up 20 new quality agencies in Wisconsin. In the past 4 years, we have signed 67 Wisconsin independent insurance agencies to new contracts with The IMT Group.

Other Comments: Another of our strengths is automation. Ask any of our 800 independent agencies which of their companies have the best systems and most will say, “The IMT Group!” We designed the systems ourselves along with the help from our independent agents. This shows our dedication to our independent agents and the future.

The IMT Group received some awards recently. We received the 2011 Interface Partner Award from Applied Systems at the Technology, Education & Networking Conference hosted by the Applied Systems Client Network (ASCnet). Furthermore, The IMT Group was recently awarded the highest honor as a “Five Star Company of the Year” by the Independent Insurance Agents of Nebraska (IIAN).

People buy their insurance from independent agents because they like them, know them and trust them. That is exactly the reason independent agents do business with The IMT Group. We have been doing business in the Midwest since 1884. This experience should help us in the future. When you think of The IMT Group, you can be sure it is a stable company with an eye on the past and a keen sense for the future. We will continue to live up to our slogan, “Be Worry Free with IMT!”

Local independent agents interested in learning more about The IMT Group can contact Matt Casey at 1 (800) 274-3531, ext. 897.

Company Web site: www.imtins.com

Richard Keith


PROGRESSIVE INSURANCE

Location of Company Headquarters: Mayfield Village, OHFounded: 1937Officers: Glenn Renwick, President & CEO John Barbagallo, Commercial Lines Group President John Sauerland, Personal Lines Group President

Products Company Specializes In:Progressive is a leading insurer of auto, motorcycle, all-terrain vehicle, boat, personal watercraft, snowmobile, recreational vehicle, travel trailer, mobile home, truck and other commercial auto insurance. In addition, umbrella provides preferred customers with even more coverage at competitive rates.

Outlook For The Company’s FutureMore than 35,000 agencies of every size use Progressive’s powerful brand, leading technology and full line of auto, special lines and commercial products to grow. Our marketing support, distinctive offerings and 24/7 service for you and your customers can help move your agency forward.

We’ll continue to support agents with industry leading technology, exceptional claims service, online and toll-free customer referrals, and a co-op marketing program to leverage our national advertising campaign efforts.

Company Web site: www.ProgressiveAgent.com

John Barbagallo

John Sauerland

PEKIN INSURANCE

Location Of Company Headquarters: Pekin, ILFounded: 1921 (P&C Company) / 1965 (L&H Company)Officers: Gordon Walker, Chairman of the Board & CEO; President/P&C CompaniesScott Martin, President Dan Connell, Senior VP and CFO & SecretaryTodd Clark, Senior VP and COO/P&CBrian Lee, Senior VP and COO/LifePeggy Collins, VP – Group & Claim ServicesCurtis Eeten, VP – ClaimsGreg Feller, VP– Sales Joel Jackson, VP – Marketing

Products Company Specializes In:Pekin Insurance offers a well-rounded portfolio of Personal Lines, Commercial Lines, and Life & Health products. In the Personal Lines arena we offer auto, home, motorcycle, RV, boat, and umbrella coverages. Seeking to provide coverages that are Beyond the expected®, we have developed some very unique coverage enhancements such as Pet Insurance and Water Line/Sewer Line breakage coverage. In the Commercial Lines arena, we have created a new strategic FOCUS (Focus On Commercial Underwriting Sales). Although we write a broad variety of risks, we have identified the following target markets: Trucking (Local 0-200 mile radius), Woodworking, Machine Shops, Metal Stamping, Franchised Motorcycle Dealers, Glass Dealers, Car Washes, Non-Franchised Auto Dealers, Automobile Service Shops, Automobile Repair Shops, All BOP business, and Commercial Auto business.

Our Life Insurance Company has recently developed several new products such as a Simplified Issue Term policy and a Preferred Whole Life Insurance policy. We diversify ourselves from the competition with the following unique riders: Long Term Care and Disability Income Coverages. Our core top-selling products continue to be Level Term Insurance and Universal Life Insurance. In the health insurance arena, we continue to offer a successful Group Life & Health product as well as Medicare Supplement Insurance. We have established a new Third Party Administration division, Group Plan Solutions, to help guide employers through the maze of health care reform and to provide direction in finding the optimal solution to employee benefit needs.

Outlook For The Company’s FutureBy following a rigid Strategic Planning process, Pekin Insurance continues to look forward to sustained growth in the future. Our plan incorporates a growth strategy both in our current states of

operation as well as new states. We are committed to developing new coverages and endorsements that set the standard in the industry and are FOCUSed to provide our agents clear direction and competitive pricing in the Commercial Lines arena. In February 2012, we launched My P.I., which is an online tool that allows our policyholders to view policy information. In addition, we will be offering our first mobile application later this year.

Other CommentsA regional company located in the Midwest and represented by an ever-growing agency force of 1,210 independent agencies, Pekin Insurance is rated “A” (Excellent) and Pekin Life Insurance Company is rated “A-” (Excellent) by A.M. Best. We continually strive to increase customer satisfaction with fast, fair claim settlements. Our success is gauged by the degree of communication with our agency partners. This is what truly sets us apart from other companies. A few of the opportunities we take to openly communicate with our agency partners include Awards Banquets, Regional Agents’ Meetings, Agents’ Invitationals, a Chairman’s Conference, and a CSR Convention.

The profit sharing and commissions we pay benchmark higher than that of our peers. We also have an agency award and recognition program which offers additional monetary incentives as well as two different company trip options that were attended by almost 800 agency personnel and guests in 2011.

Company Websites: www.pekininsurance.com www.beyondtheexpected.com www.groupplansolutions.com

Gordon Walker

Rodney McKimson, VP – Information TechnologyEdward Mulvey, VP – Personal Lines Underwriting & Assistant SecretaryStephen Nunan, Senior VP – UnderwritingJoseph Ricigliano, VP – Commercial Lines Underwriting & Assistant SecretaryMichael Zabinski, VP – Controller


SECURA INSURANCE

Location Of Company Headquarters: Appleton, WIFounded: 1900SECURA Leaders: John Bykowski, President, CEO & Chairman of the Board Kathryn Sieman, SVP & CFO David Gross, SVP–Underwriting Operations Scott Huiras, SVP–Claims Martin Arnold, VP & Chief Actuary Jeffrey Bemis, CIO & VP–Information Technology Diana Buechel, VP–Personal Lines Underwriting Daniel Ferris, VP–General Counsel and Corporate Secretary Terrie Pohjola, VP–Associations and Programs Timothy Riedl, VP–Commercial Lines Underwriting Robert Van Beek, VP–Agency Automation

Products Company Specializes In:The long-term success of SECURA Insurance is built on sound business strategy, long-term financial stability, and strong agency partnerships. Over its 112-year history, SECURA has expanded to provide a broad range of Commercial, Personal, Specialty, and Farm-Ag products to customers. The company’s reach includes nearly 450 agency partners in 13 states.

Commercial Lines represents 53 percent of SECURA’s business. Agents rely on the company’s industry-specific expertise to offer coverages for retailers, wholesalers, manufacturers, contractors, restaurants, and numerous other markets. Workers’ Compensation adds to its commercial offerings, providing business owners complete coverage through one carrier. But SECURA provides much more than insurance. Risk management professionals from the company take a consultative approach in helping policyholders minimize workplace injuries through safety solutions.

The company’s Specialty Lines launched in 2010 and is an important part of SECURA’s portfolio. These niche markets – like sports and recreation, human services, and detective and security guards – give agents more opportunities to grow their book of business.

SECURA’s MILE-STONE® home and auto package is the cornerstone of its Personal Lines and offers the finest combination of value, coverage, service, and convenience. Lifestyle enhancements such as Pet ProtectorSM, Roadside Rescuer, Travel RescuerSM and Identity Theft protection give agents an edge in attracting new customers.

Farm-Ag rounds out SECURA’s products, and represents the foundation of its heritage. The company continues to expand this segment by writing Agribusiness policies for those businesses that support farming operations. Farm supply stores, feedlots, feed milling operations, and seed processing/dealers are just a few.

Outlook for the company’s futureSECURA remains steadfast in its dedication to exceptional service and strong agency relationships. To that end, helping agents sell and retain quality accounts is job one. The company ranked number two by agents nationwide in the 2011 Ease of Doing Business survey. This was its sixth consecutive year as a Top 10 carrier. Success and stability also are evident in its “A” Excellent financial rating by A.M. Best.

Looking ahead, the company’s focus on providing agency partners a solid, established market, new growth opportunities, and exceptional service have positioned SECURA well for continued success.

Company Web site: www.secura.net

John Bykowski

Jean Van Den Brandt, VP–MarketingGarth Wicinsky, VP–Human ResourcesShane Roh, RVP–Sales

QBE REGIONAL INSURANCE

Location of Company Headquarters: One General Drive, Sun Prairie, WI 53596Founded: 1925Officers: Rich Kalina, Senior Vice President, Midwest Region Roger Kaland, Branch Vice President, Milwaukee

Products Company Specializes In:QBE Regional has partnered with Wisconsin’s independent agents to meet the needs of main street and personal lines clients for over 80 years. With local management and claims handling, the company is represented by over 275 agents across Wisconsin and has developed commercial and personal lines products to protect consumers’ most important assets.

Commercial Lines: From small storefronts to high-value, multi-location corporations, QBE Regional provides insurance protection across a wide spectrum of Wisconsin properties. Our FlexBizSM program includes coverages, limits and extensions to meet the needs of 400 classes of business. Coverages have been tailored for new classes, including restaurants, motels and car care. QBE Regional also offers special programs for Wisconsin golf courses, well drillers, on-site waste disposal operators, wholesale beer distributors and community hospitals. Many of the state’s cheese makers are insured through our food processors package. These exposures, as well as larger accounts, benefit from our highly specialized policy, loss control and claim services.

Personal Lines: QBE Regional offers products to meet the needs of almost every household in Wisconsin. The introduction of a new processing system has improved agency efficiency and is the foundation for our FlexAuto® and FlexHomeSM products. In addition, our Crowne CondominiumSM product has been designed and priced to offer superior features and protection compared to a standard HO-6.

Outlook for the Company’s FutureAs a member of QBE North America, with gross written premium of over $7 billion in 2011, the company offers Wisconsin agents financial strength, stability and access to additional products and markets through other QBE member companies. QBE Regional continues to maintain the local presence, approachability and individual service agents have come to expect from us. We are committed to maintaining healthy products that are open for business, enabling Wisconsin agencies to quote and close more customers, with confidence.

Other CommentsQBE Regional has insured Wisconsin autos, homes and businesses since 1925. Our heritage continues with QBE Insurance Group Limited, one of the top 20 insurers and reinsurers worldwide, with operations in all key global insurance markets. QBE is an Australian listed company based in Sydney and has operations in 47 countries with over 13,000 staff worldwide. QBE’s gross written premium was $18.3 billion in 2011.

Company Web site: qberegional.com

FlexAuto, FlexHome, FlexBiz and Crowne Condominium are registered service marks of QBE Regional Companies (N.A.) Inc.

Rich Kalina


Products Company Specializes In:Travelers provides a full breadth of insurance and surety products, as well as risk management services, to numerous types of businesses, organizations and individuals. Our products are distributed by independent insurance agents and brokers throughout the United States.

Business Insurance: The business insurance segment offers a broad array of property and casualty insurance and insurance- related services to its clients, which range from “main street” businesses to Fortune 100 corporations. Business insurance is organized into marketing and underwriting groups with a specialized focus on particular markets or products. Travelers is the second-largest writer of commercial U.S. property and casualty insurance. Financial, Professional & International Insurance: The financial, professional and international insurance segment includes surety and financial liability coverages, which require a primarily credit-based underwriting process, as well as property and casualty products that are primarily marketed on an international basis. Travelers is the largest writer of surety business in the world.

Personal Insurance: Travelers is the second largest writer of U.S. personal insurance through independent agents. We offer a broad array of property and casualty insurance products to individual customers under the Travelers brand.

Outlook For The Company’s FutureTravelers is uniquely positioned to help Wisconsin agents grow and be successful! We know that you value timely and professional service—our people are experts at what they do. We’re able to deliver the many attributes of a large national carrier through one of the best-staffed field offices in the state.

We are local, allowing our staff to understand the Wisconsin marketplace and to develop deeper relationships with you and our insured’s. With more than 225 people in Wisconsin, Travelers is proud of our commitment to you and the positive impact we have on protecting the industry and individuals here.

Our national scale means that we can deliver many advantages to you, including:

!Financial strength and long-term market stability

!Broad underwriting appetite

!Innovative product development

!Cutting-edge technology efficiencies that save you money

!Risk capacity to accommodate your largest accounts

!Specialist expertise to understand your most complex exposures

!"Professional delivery of claim, risk control and audit services that improve your account retention

Travelers understands that life and business are inherently dynamic and that the best way to serve customers is to deliver insurance that behaves the same way — evolving to keep in step with life and business as they change Protect your clients under the red umbrella!

Company Web site: www.Travelers.com

THE TRAVELERS COMPANIES INC.

Location Of Company Headquarters: Hartford, CT Founded: More than 155 years agoOfficers: Jack Costello, Regional President George Hogan, Regional DirectorLorie Kates, Regional VP- Personal Insurance Karen Eckert, Regional VP - SelectPaul Kyrilis, Regional VP - Commercial, Technology, Construction, Public SectorMark O’Brien, Regional VP - National Accounts Casualty & Discover ReKevin Cahill, Regional VP - National Property Allen Warner, Regional VP - Inland Marine Dave Wolfe, Regional VP - Boiler & MachineryGail Schroeder, Regional VP - Bond & Financial ProductsGregg Jeffers, Regional VP - Global Accounts John Tsourmas, Zonal Vice President - Excess Casualty

Jack Costello

Brendan Dunican, Regional Vice President - Ocean MarineBeth Printz, Regional Vice President - ClaimsSteve Ringler, Regional Risk Control Director

SOCIETY INSURANCE

Location Of Company Headquarters: Fond du Lac, WI Founded: 1915Officers: Rick Parks, President & CEO William Reeves, Senior Vice President & COO John Barouski, Vice President – Workers’ Compensation Claims Steven Binkley, Vice President – Property, Auto and Liability Claims Amy Collett, Director – Human Resources Thomas Konop, Vice President – Information Systems D. Holly Lifke, Vice President – Commercial Lines Underwriting Perry Schaack, Vice President – Marketing Edwin Storer, Vice President – Finance & Treasurer

Products Company Specializes In:Society Insurance writes only commercial lines. As a specialist, the company has developed expertise and market leadership in our core classes of business. Supported by long-term trade association endorsements from the Wisconsin Restaurant Association and the Tavern League of Wisconsin, Society writes over 25% of the food and beverage establishments in Wisconsin. These association partnerships and niche expertise also extend into classes such as motels, groceries, convenience stores and health care. Artesian contractors, food processors and repair garages are also important product lines. The package policy products offered for our core classes of business are consistently the most comprehensive on the market.

Workers’ Compensation was the first coverage Society wrote when we were founded in 1915, and we’ve developed true expertise in this complicated and specialized line of business. Our claim management process stresses early intervention, return-to-work programs and obtaining the best medical provider discounts to keep costs low for policyholders. Loss control services are customer-focused and tailored to the needs of both small and large businesses. We have a number of internet-based safety tools for all sizes of customers. This combination of strong claim management and tailored loss control is a true competitive advantage that eliminates many problems business owners and agents may experience in the Work Comp line.

Outlook for the Company’s FutureSociety Insurance continues to build on its strength as a regional carrier committed to service and value for its customers. This focus on value has evolved into the Society Insurance Value Proposition, a formalized statement of the value Society provides beyond competitive pricing. Elements of the Value Proposition include:

"

!""Exceptional expertise in target niche business classes!""Outstanding coverage packages!""Relationships with trade associations of target businesses!""Customer-focused risk control!""Uncommon claims handling!""An accessible and responsive corporate culture

Society does not try to be all things to all insureds. Instead the company concentrates on what it does best. Because it focuses on niche markets, it understands its clients’ businesses and has uncommon knowledge and experience with issues that are likely to arise.

Other CommentsIn an industry not often known for its creativity, Society isn’t afraid to be different. That’s why we use the label “uncommon insurance.” While there are some core best practices that most well-run insurance companies employ, Society knows that our agents and policyholders have unique needs that don’t always fit neatly within a benchmark or best practice. We think a number of things set Society apart. Among them are commercial lines concentration, niche focus, commitment to exceptional claim handling, appetite for Workers’ Compensation and exceptional products. Sharing core values and a commitment to service with our agency and association partners defines Society Insurance.

Company Web site: societyinsurance.com

Rick Parks


Products Company Specializes In:Wilson Mutual has a deep-rooted history of exceeding our agents’ expectations. The company remains committed to supporting our agents’ efforts by developing new and innovative products and services with a focus on “ease of doing business.” Wilson has a strong and growing presence in Wisconsin and an ever-growing presence in Minnesota.

Personal lines products include: homeowners, personal auto, mobile homeowners, dwelling fire, inland marine, personal umbrella, and farmowners (WI). Flexibility and common sense underwriting are key philosophical approaches practiced by our personal lines underwriting staff.

Commercial lines products include: commercial package policy, businessowners, commercial auto, workers compensation (WI), and commercial umbrella. Wilson provides several value added services to assist our agency force in meeting the needs of today’s business owners.

Other CommentsIn early 2010, Wilson Mutual launched an expansive new ISO-based CPP product. The new CPP continues to offer our agency partners greater flexibility in underwriting, pricing and risk selection. While the focus of the new CPP is on contractors, auto service, wholesalers, distributors, machine shops and light manufacturing, Wilson will continue to write other eligible types of business via Businessowners program.

In 2012 Wilson will continue to bring new system enhancements, including a claims processing system, a commercial lines billing system, and a new ISO Businessowners program, each designed to continue to increase the ease of doing business with Wilson.

Providing risk management services to our policyholders continues to be a focus for Wilson Mutual. “Creating a culture of safety” within our policyholders’ businesses has made a significant impact in assisting our agents with retaining quality business. Wilson helps customers establish successful risk management programs with an emphasis on employee safety, training, and documentation.

Outlook For The Company’s FutureWilson Mutual continues to receive a Rating of “A” (Excellent) from A.M. Best. This rating reflects our strong financial position as well as our solid record of profitable growth. Development of new products and improved services will continue to be the focus of our future, providing even greater market opportunities for our agents.

Company Web site: www.wilsonmutual.com

WILSON MUTUAL INSURANCE COMPANY

Location of Company Headquarters: Sheboygan, WIFounded: 1872Officers: Robert Western, President Mike Lappin, Senior Vice President & Chief Operating Officer Tami Jones-Fahser, Senior Vice President – Administration and Claims Karen Schultz, Vice President - Personal Lines and Product Development Roxanne Freeman, Vice President of Information Technology Jim Hayon, Vice President - Claims Jeff Jacobs, Vice President - Commercial Lines

Bob Western

WEST BEND MUTUAL INSURANCE COMPANY

Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095Founded: April 1894Officers: Kevin Steiner, President and Chief Executive OfficerDale Kent, Executive Vice President and Chief Financial OfficerTracey Berg, Senior Vice President and Chief Information Officer Bill Hutchison, Senior Vice President - NSIGary Alexander, Vice President - NSI Bonds Jim Blair, Vice President - NSI ClaimsDavid Ertmer, Vice President - Claims Rick Fox, Vice President and Chief ActuaryPeter Hans, Vice President - NSI Legal Paul Hingtgen, Vice President - Argent®

Rob Jacques, Vice President - Commercial Lines Gary Klein, Vice President NSI P&C Underwriting Jim Pauly, General Counsel and SecretaryDan Roskopf, Vice President - FinanceJim Schwalen, Vice President - Personal Lines & MarketingKelly Tighe, Vice President - Sales

Products Company Specializes In:

Personal Lines: West Bend offers a broad personal lines coverage package (Home and Highway®) with multiple rating tiers for home and auto. Many innovative coverages and features are also available.

Commercial Lines: West Bend offers a full range of commercial products and services. In addition to products such as Workers’ Compensation and Commercial Auto, SMARTbusiness™ substantially expands our businessowners’ policy and provides agents with automated solutions and a more efficient process.

Specialty Lines: NSI offers insurance programs for such specialty lines as social services, sports and leisure, special events, childcare and bonds.

Argent®: Argent specializes in monoline workers’ compensation. Argent works closely with agents and policyholders to determine their most critical workers’ compensation needs and improve results through loss control, medical cost containment, and education.

Outlook for the Company’s FutureWest Bend is well positioned to capitalize on the current market conditions. In 2011, the company was rated A (Excellent) by A.M. Best. A.M. Best also recognizes West Bend as one of the 100 largest property/casualty insurers in the country. Listed as one of the top companies in a nationwide ease-of-doing-business survey, West Bend will continue to strive to maintain this rating by advancing our technology, products, and services while retaining our small-company, relationship-driven culture.

Company Web site: thesilverlining.com

Kevin Steiner

Christopher Zwygart, Vice President - Legal and Corporate ComplianceDebra Cahoon, Assistant Vice President - Human ResourcesSandy Czerniak, Assistant Vice President - Argent® ClaimsMike DeLaney, Assistant Vice President - Argent® Loss ControlHeather Dunn, Assistant Vice President - Corporate AccountingScott Grinna, Assistant Vice President – PAS Program ManagementJim Keal, Assistant Vice President - Argent® OperationsJason Moore, Assistant Vice President – IT


CONTINUED FROM PAGE 4

to the quality workplace we offer employees. ACUITY is ranked as the Best Mid-Size Employer in the Nation by the Great Place To Work Institute. Both Collegegrad.com and AARP have recognized ACUITY multiple times as one of the top employers in the nation for entry-level college graduates as well as workers over age 50, respectively.

Our service-focused claims operation offers the ability to file a claim online or via a smartphone, and even page an ACUITY adjuster with the click of a button. We consistently receive a 96 percent claims approval rating from policyholders and 98 percent from agents.

Because we offer an extremely broad range of products backed by leading-edge technology, we provide our agents a viable and efficient market. ACUITY is strongly committed to the independent agency system because we believe it is essential to the continued growth of the property and casualty industry. We are excited about our collective future.

Other CommentsThe word “ACUITY” means “sharp focus.” Our mission is to provide a broad range of products for diverse risks that will protect and enhance our customers’ well-being. We will distinguish ourselves by consistently leveraging our underwriting discipline, claims expertise, and efficient technology and service, which follows the direction set by our sales and marketing orientation. Our tag line, “For All That Matters,” not only describes our philosophy of rebuilding shattered lives after a catastrophic loss, but also describes our keen focus on providing our customers and agents with world-class service.

Company Web site: www.acuity.com

!"Allowed trend: down 5.6% vs. traditional plans.!"Preventive care usage: up 3% overall, up 8% for men.!"Office visits: down 9.3% overall.!" Prescription drug usage: down overall with no negative impact on medications taken by members with chronic conditions.

Designated Blue Distinction CentersThis is a strong network of recognized specialty centers across the country that are committed to providing better clinical and cost outcomes.

Blue PrecisionA network of providers with cost and quality in mind for these specialties: cardiologists, OB/GYN, endocrinologists, rheumatologists and pulmonologists.

Dental BlueDental Blue offers great value with less hassle. Dental Blue members get extra savings with our negotiated pricing when they visit an in-network provider for:!"Services that aren’t typically covered, like porcelain veneers and treatment for TMJ.!"Services you get after reaching your annual maximum. Blue View VisionBlue View Vision can give your employees coverage to help maintain healthy eyes, while giving you coverage to help maintain a healthy bottom line. Anthem Care ComparisonEmployees can make better choices and save money by comparing actual costs for common procedures at hospitals and facilities nearby. They can also see procedure and quality comparisons that focus on quality and safety at each facility. That means they have access to cost data on nearly 40 inpatient and outpatient procedures and quality measures for more than 150 inpatient procedures. Outlook For The Company’s FutureAnthem is currently advancing strategies to improve quality, which can help to manage costs and improve insurance coverage. By working together with government, employers and providers, we are working to build a health care system that is accessible to all and provides quality care for those who need it most.

Contact Phone Number: (800) 258-0012

Company Web site: www.anthem.com


underwriter, dedicated solely to Passport Auto clients.

We’re committed to empowering our associates to provide relationship-based personalized service to build strong connections with our agency partners and develop new relationships in targeted regions.

Life — Strengthen RelationshipsRetaining customers is especially important in today’s economy. That’s why cross-selling is so important. Grange Life makes it easy with people ready to help you cross-sell life insurance to your personal and commercial lines customers. Ask about Grange Life’s new express products and applications.

Contact Name for Further Information: Tim McAdow Contact Phone Number: 920.968.8327Company Web site: www.IntegrityInsurance.com


Products Company Specializes In:Wisconsin Mutual prides itself in service and provides the public with competitively priced, comprehensive products. In addition to being one of the top-ranked companies for personal auto and homeowner coverage, the company also writes a variety of other lines including farm and small commercial.

Personal Lines: Auto, Home, Affinity program for Educators, Recreational vehicles, Dwelling Fire and Inland Marine.

Commercial: Auto, Habitational, Artisan Contractors, Mercantile and Office.

Umbrella: Personal, Farmowner.

Outlook For The Company’s FutureWisconsin Mutual Insurance will continue to pride itself in customer service while providing competitively priced, comprehensive products. In the ever-changing insurance environment, we continuously look for new opportunities to grow while maintaining our commitment to excellence in service and product. With our industry-leading expense ratio, we are able to remain competitively priced across all product lines while providing consumers more value for their insurance dollar. Wisconsin Mutual has maintained steady growth and is positioned for that growth to continue in the

future. We have continued success across the state of Wisconsin and are always looking to expand into new markets. We would like to recognize the hard work and dedication of our independent agents and our staff for current and future successes.

Other NewsWe are an A- (Excellent) rated company by A.M. Best, a leading provider of ratings, news, and financial data for the insurance industry worldwide. We have the financial strength and continued growth to remain competitive across the industry. Wisconsin Mutual continuously works on enhancing our Web site to simplify the process of doing business. We offer real time quoting via EZLynx and FSC, as well as the ability to upload applications, and are working on adding expansive pre-fill capabilities. We will continue to provide the tools, products and service that our independent agents need to remain successful.

Company Web site: www.wiins.com

WISCONSIN MUTUAL INSURANCE CO.

Location of Company Headquarters: Madison, WIFounded: 1903Officers: Daniel Keyes, President & Chairman of the Board Anthony Skubal, Vice President/Treasurer Holly Casavant, H.R. Director/Secretary Christopher Golden, Marketing Manager

Dan Keyes


OPEN DOOR POLICY

AGENTS WIN BIG: CERTIFICATES OF INSURANCE CHANGES SIGNED INTO LAW

This Association has been lobbying and working on this issue for many years. According to one professional liability insurer, during the past year, E&O claims involving certificates of insurance have increased 28 percent. About 1 in 25 E&O claims now involves a certificate of insurance. The two main sources of certificate E&O claims are failure to add (or improperly identifying) additional insureds (36%) and misrepresenting coverage on the certificate that doesn’t actually exist (21%). Major reoccurring problems are:!""Onerous insurance requirements by

large contactors, huge corporations, governmental/public entities, etc., that cannot be met by coverages typically available in the admitted marketplace.

!""Certificate fraud by agents and insureds (including the indication of coverages or conditions that don’t exist) so an insured subcontractor can get a construction job or get paid for one.

Agents are sometimes asked to produce a certificate that cannot comply with the contract the insured has signed. Refusing to do so, agents are often faced with the claim from the insured or certificate requestor that they know of agents who can or will provide such

certificates. Failure to do the same could mean the loss of an account for the agency. These unreasonable requests too often lead to the issuance of fraudulent certificates by insureds or agents. For this reason, OCI has issued a bulletin (May 2008) to give clear instructions to Wisconsin companies and agents that certificates should only be used for the purpose intended. Companies and agents who make modifications that alter the underlying policies will be deemed to be in violation of Wisconsin law. This violation can result in loss of license, as well as the imposition of fines up to $1,000 per day. But, as we know, actions speak louder than words. It’s my opinion that OCI failed to follow through and enforce the intent of this memo. Time and time again, agents are asked to produce such a certificate and there is nothing in Wisconsin state statutes to show they violated OCI’s memo. That is until now. The IIAW Government Affairs team continues to work hard on your behalf. I had the opportunity to sit down with Ted Nickel, Wisconsin’s Commissioner of Insurance, members of his staff, Frank Lasee, the chairman of the Senate Insurance Committee, and Kevin Petersen, the chairman of the Assembly

Insurance Committee, and many other legislators to discuss the issue and potential solutions. Over the previous year, I spent a great deal of time talking with our members, the Government Affairs Committee, and other

independent insurance agent association state executives across the country to learn more about their strategies on this issue in hopes of devising a plan for Wisconsin. Many states went through big, drawn out legislative battles with associations representing contractors, builders, banks, and more to get the changes they desired. Some were successful and others were not. Let’s be honest. It was obvious from the get go that regardless of our best lobbying effort, we did not have the political clout and muscle it would take to get all the changes we wanted. The changes we wanted put more of the burden on those requesting the changes. It takes a massive grass roots network that is highly involved in politics and a very active Political Action Committee to pass such potentially controversial legislation. You might know from reading my previous articles that despite the best efforts by a minority of our members (we need more to step up), we lack in both areas. With that being said, our strategy focused on using my institutional knowledge of the political process and

When I first joined the Association in September 2010, I asked our Board of Directors what issues were legislative priorities for our members. The number one answer was unanimous: CERTIFICATES OF INSURANCE.

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at [email protected].

NO INTERMEDIARY MAY

PROVIDE A MISLEADING

CERTIFICATE OF INSURANCE.

CONTINUED ON NEXT PAGE

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After reconstruction began, more insurance claims were filed, many of them against insurance agents! Claims of omission were filed primarily because, according to the claims, agents didn’t do their jobs properly and provide true customer service. I define customer service as recognizing and addressing a customer’s needs.

The losses also come from failure to upgrade coverage (Homeowners 3 to Homeowners 5). Many of these high valued homes had not had an appraisal or even an inspection in years and were woefully underinsured. Finally, as you would imagine, most of the claimants did not have proper coverage for jewelry, furs, silverware, fine arts, etc.

These failures on the part of the agents will cost them dearly. Deductibles for agents’ E&O are high, and because most personal insurance agents tend to write in a localized area, they will have

multiple losses. If that were not enough, if the E&O carrier determines a pattern of sloppy procedures, the renewals could be refused or the premium or deductible increased. Losses like this could be prevented if the agents do the job for which they are paid and trained.

For years, agents have been receiving commissions on personal insurance renewals and not contacting their customers to conduct an annual exposure and coverage review. In many agencies, the CSRs merely compare the continuation policy to the expiring contract,

look at the pricing, and then file it away.

So what can an agency do to prevent this type of loss from happening?

Well, first the agency needs to write and implement a

workflow manual that incorporates the proper procedures and accountability. The manual should include forms and form letters to be used by agency personnel. The completion and use of these documents should be a “Non-Optional” activity in the agency.

The completion of a coverage and exposure checklist when writing a new policy is a must. An annual protection review should also be conducted either by direct mail or on the phone. Both of these activities will not only limit the agent’s exposure to errors and omissions, but also will provide the CSR or agent with additional sales opportunities. If that weren’t enough, it will also give more than lip service to customer service. Properly used, the checklist and annual review will assist the agent in fulfilling the definition of customer service.

For those agencies that have a good record with their E&O carrier, an internal or external audit and procedural implementation by an outside consulting firm can not only assist the agency in writing and implementing procedures, but also provide E & O carriers the opportunity to grant schedule credits reducing the annual premium. Some carriers have approved members of Gold Seal Risk Management Services to provide these services, and in many instances have qualified for additional credits on their E&O premiums.

LACK OF CUSTOMER CARE LEADS TO E&O LOSSESIn October 1991, an upscale area of Oakland, California was decimated by fire. Over 2,000 homes were razed by the firestorm and the loss to insurance carriers was over $600,000,000. The average replacement cost on the dwellings was in excess of $300,000.

> Jack Fries has over 46 years of experience with both companies and insurance agencies. Fries & Fries Consulting is an automation, sales and management consulting firm aimed at improving agency profitability and customer service. His consulting firm produces a manual, “The Gold Book: A Compliance and Risk Management Procedure Program,” which contains procedures, forms and form letters like those mentioned in this article. Contact him by e-mail at [email protected]. Also visit www.jackfries.com.

The completion of a coverage and exposure

checklist when writing a new

policy is a must.

AGENTS WIN BIG: CERTIFICATES OF INSURANCE CHANGES SIGNED INTO LAWconnections to work with OCI and the Legislature to quietly and discreetly insert language into an insurance bill that would achieve our intended result without publicly picking a fight with some of Wisconsin’s major lobbying organizations. After working with the Government Affairs Committee and the IIAW’s legal counsel, Josh Johanningmeier, we then worked with the Wisconsin Insurance Alliance to make sure our company partners would be OK with the changes. They were. Each year the department presents a non-controversial bill instituting technical changes. We were successful in our efforts to insert the following sentence into Senate Bill 378, also known as the OCI Technical Bill or Surplus Lines Bill:

“No intermediary may provide a misleading certificate of insurance.”

I successfully argued our case that this language was simply codifying OCI’s previously stated intent (the May 2008 bulletin) into statute. This one sentence may not seem like

much but it is. Josh Johanningmeier, in a memo to membership last month, said:

“(This Legislation) brings within the OCI’s statutory enforcement authority any situation where it can be proven that a certificate of insurance was “misleading.” When a violation is proven the OCI may seek a variety of sanctions and remedies, including: revocation, suspension or limitation of the agent’s license; equitable relief to enjoin or restrain conduct; issuance of its own enforcement order; financial forfeitures; and criminal penalties for intentional violations. Compliance with Wisconsin’s insurance statutes is non-negotiable. While the amendment to Section 628.34 is essentially a codification of the OCI’s 2008 bulletin, it remains a stern reminder to agents that acceding to third party requests for certificates of insurance that deviate from industry standard forms or go beyond an accurate summary of the policy may have dire consequences.”

This is a big win for agents, but we still need OCI to do their part. The Office of the

Commissioner has indicated that now that this legislation has been signed into law, they plan to issue a new bulletin on the subject to insurers, agents and interested parties. Our hope is that they will go one step further in their outreach and education on the subject. But, the work doesn’t stop there. The commissioner’s office needs to ensure they enforce compliance with Wisconsin’s insurance statutes. This is an important first step on this issue. If it’s not a step in the right direction at solving our certificates problem, we will be back at it in the next legislative session — and every one thereafter — until we achieve the results you demand. The IIAW had many legislative victories this session. I would argue it has been the best session our Association has ever seen. We continue to press forward and ensure we are working hard on your behalf. Legislative victories don’t come around all that often and we were lucky to have a Legislature that listened to our concerns and acted on them.

CONTINUED FROM PREVIOUS PAGE

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It starts with the breadth of our product knowledge. And extends to our unparalleled access to markets. At Burns & Wilcox, our experts possess the resources to protect your clients against any risk. From Property to Excess, Professional to Environmental, we can handle your clients’ exposures no matter what industry they are in. Plus, our quick quoting capabilities can grant them protection in no time. That way, if a mistake does happen, it will be water under the bridge.

NOTHING IS FREE. EVEN UNPAID INTERNS

> Josh Johanningmeier is the IIAW’s General Counsel. Call the Legal Services Hotline at (877) 236-1669.

As summer approaches and college students look to bolster their future employability and gain relevant experience in the business world, you may be approached by students willing to work for free in exchange for the résumé boost and training that an internship with your agency can provide.

COMMENTARY FROM COUNSEL

It is no surprise that students (or even graduates) are willing to do so in a slow economy, where paid positions are few and far between, leaving unpaid internships as a way to gain the experience needed to make them attractive to future employers. Companies like internships like this because they provide a chance to assess talent and to gain the benefits of work without the burden of having to pay for it. But, to paraphrase Milton Friedman, beware the free lunch. There are real risks associated with unpaid internships and missteps could lead to claims against the company.

Unpaid internships raise significant wage and hour issues for companies who offer them. While most interns are happy to get the work experience and would never complain, the potential for liability remains as the Hearst Corporation recently learned when an unpaid intern brought a claim that her internship violated wage and hour laws. The former intern is not only claiming unpaid wages for herself, but is seeking to bring a class action on behalf of others who are similarly situated. How can she do so?

The Fair Labor Standards Act (FLSA) defines “employ” very broadly as including to “suffer or permit to work.” Covered and non-exempt individuals who are “suffered or permitted” to work must be compensated under the FLSA for the services they provide to an employer. Interns in the “for profit” world will likely be viewed as employees unless they meet the tests for unpaid interns established in guidance from the United

Stated Department of Labor (DOL). This means that interns who qualify as employees must be paid at least minimum wage, and even overtime compensation for hours worked over forty in a workweek.

The DOL guidance concerning unpaid internships must be consulted any time a company is considering offering an unpaid internship. Of course, there are some circumstances under which individuals who participate in “for-profit” private sector internships or training programs may do

so without compensation. The DOL guidelines provide the following six

criteria for evaluation of unpaid internships in the “for profit” private sector:

1 The internship, even though it includes actual operation of the

facilities of the employer, is similar to training which

would be given in an educational environment;

2 The internship experience is for the benefit of the intern;

3 The intern does not displace regular employees, but works under close supervision of existing staff;

4 The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;

5 The intern is not necessarily entitled to a job at the conclusion of the internship; and

6 The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

(See www.dol.gov/whd/regs/compliance/whdfs71.pdf for a detailed discussion of the factors.)

If you are putting together an internship and can meet all six of these criteria, your interns should not be considered employees. Ultimately, the more an internship program is structured around a classroom or academic experience, as opposed to the employer’s actual operations, the more likely it will be viewed as an extension of the individual’s educational experience. On the other hand, if interns are engaged in the daily operations of the employer or are performing productive work for the employer, the internship more likely must be paid. It should come as no surprise that if the employer’s goal for the internship is to find a way for work to be done without having to pay for it, the internship will likely need to be paid, or the employer risks violating applicable wage and hour laws.

The bottom line is simple: Be extremely careful when creating unpaid internships — pay close attention to the DOL guidance and seek advice if you have any doubt (or even if you are confident!).

Unpaid internships

raise significant

wage and hour issues for companies who offer

them.


written premium stands at $255 million. Every producer that has joined the agency has increased his or her book of business. According to Business Insurance, Robertson-Ryan is the 80th largest broker of U.S. business; Insurance Journal ranks the agency as the 53rd largest privately held independent agency in the country. Not surprisingly, the agency’s business model and benefits has attracted some of the most respected businesses in the state. In January 2011, Fitzgerald, Clayton, James & Kasten, Inc., Wisconsin’s oldest independent insurance agency, became affiliated with Robertson-Ryan. “Typically, it takes about two years to convince a principal to join us,” said Gary. “When they do finally make the decision, most say they wish they had done it sooner. I had one producer say that when he owned his own agency, he had to sell based on the insurance company’s appetite. At this agency, the markets are available so producers can do anything.” The independence that Robertson-Ryan offers also includes perpetuation. Many agency owners struggle with perpetuation and this can be huge source of stress. “Agency owners can perpetuate their books by bringing in a son or daughter,” said Gary. “We encourage this and try to facilitate the transition as best as we can. If a principal doesn’t have a family member to take the reins, Robertson-Ryan can help with that changeover, too. “There is perpetual perpetuation in place here,” said Fred Thomas. “Young go getters are constantly in the pipeline.” It’s clear that 52 years after Jack Ryan and Robbie Robertson founded their agency, it’s still holding true to their vision and principles. “We are poised for success in the future,” said Gary. “Jack Ryan always said you have to ‘Bet your guts on a paycheck.’ We will continue to do this every day.”

(Editor’s Note: Thanks to Michael Timm, author of Robertson-Ryan: A History. His interesting and comprehensive book was a great resource for this article.)

Robertson-Ryan & Associates, Inc. is an independent insurance agency that offers business property and casualty, personal, and employee benefits products to its customers. Headquartered at Two Plaza East, 330 East Kilbourn Avenue, in Milwaukee, the agency also has locations in Waukesha, Lake Geneva, Racine, La Crosse, Wisconsin Dells, Mequon, and Memphis, Tennessee. Find Robertson-Ryan on the Web at www.robertsonryan.com, or call (414) 271-3575.

January 2012 Robertson-Ryan opens office in Memphis, Tennessee.HISTORY OF ROBERTSON-RYAN


Jack T. Ryan (left), co-founder of Robertson-Ryan. Before founding the agency, Ryan served in the FBI. This was his official FBI photo circa 1941.

“Robbie” Robertson (right), co-founder of Robertson-Ryan. This photo was taken when Robertson served as the president of the Rotary Club of Milwaukee in 1957-58.

April 1, 1960 Ryan and Robertson joined Don Gottschalk to form Gottschalk, Robertson and Ryan at 213 W. Wisconsin Ave. in Milwaukee. The agency started with $1.8 million in premiums.

1961 Don Gottschalk moved to San Francisco. Jack and Robbie bought him out but kept Gottschalk in the agency’s name.

1963 The agency moved its headquarters to 660 E. Mason St. It remained there until 2000.

1965 Name changed permanently to Robertson-Ryan & Associates.

2000 The agency moves to its current home at Two Plaza East, 330 E. Kilbourn Ave. in Milwaukee.

November 2001 Robertson-Ryan opens first branch in Waukesha.

2011 Total premium volume tops $255 million.

Fred Thomas (left) is a shareholder with Robertson-Ryan & Associates. “There is no limit to how much you can make here. Every account you write you get the commission.”

Gary Burton (right) is the agency’s chief operating officer. “Every producer here is an entrepreneur — this was Jack Ryan’s vision.”

MEMBER PROFILE

Robertson-Ryan: Bet Your Guts On Your PaycheckWhen ambition, creativity and smarts intersect, remarkable things can happen. In June 1938, upon graduating from North Carolina State with a degree in electrical engineering, Alfonso Darius (A.D.) “Robbie” Robertson accepted an engineering position with Allis-Chalmers making 65 cents an hour. His bosses were looking for bright workers with an aptitude for sales and marketing. The job took him to Pittsburgh, Washington, D.C., Milwaukee, Cincinnati and Tampa. When the U.S. entered World War II, Allis-Chalmers’ business escalated as it manufactured engines, generators and controls for, among other things, minesweepers and submarines for the U.S. Navy. Robertson’s work took him many places, including inside the USS Pompano, a submarine powered by Allis-Chalmers engines. While Robertson was finishing up his studies at N.C. State, Jack Ryan was excelling on the football field as a halfback with the Northwestern Wildcats. In those days, halfbacks were akin to today’s modern quarterback — they ran the offense. For his skills, Ryan’s play garnered him All-American honors in 1938 and 1939. He was also a talented basketball, track and tennis athlete. In 1941, at age 23, Jack joined the FBI to help with the war effort. One of his first assignments was to stake out the home of Shirley Temple after a kidnapping threat was made against her. Ryan later volunteered for the Special Intelligence Service, an outfit that tracked down spies in South America.

As fate would have it, both men landed in Milwaukee and chose insurance as their vocations. In 1955, Robertson and Ryan went to work at the Roberts Company, a Milwaukee-based agency. The two men didn’t know each other when they started as producers, but they quickly became friends and shared a mutual respect of the others’ sales acumen and interesting backgrounds. They also realized that they were the best producers at Roberts and were essentially running individual agencies from within the organization. This realization was a key motivating factor behind founding Robertson-Ryan & Associates. “Every producer here is an entrepreneur

— this was Jack Ryan’s vision,” said Gary Burton, the agency’s chief operating officer. “This is what makes this agency unique. All producers own their book of business. They’re not employees, they’re independent contractors. They make their own personnel decisions.” Agency principals looking for more markets, consistent profit sharing, less time on administrative tasks and an atmosphere of support from fellow producers, have turned to Robertson-Ryan more and more over the years. Growing from 26 producers in 2001 to almost 80 today, a large number of agent owners have found opportunity at the agency. “Most people who join Robertson-Ryan had their own agency,” said Gary. “However, when they became successful, they were pulled away from selling. At Robertson-Ryan, agency producers don’t have to worry about the day-to-day

stuff. They can go back to selling and focusing on customer service. It’s a great place for

a self-motivated producer. There is no sales manager and there are no sales meetings. We don’t tell them how to do their business.” “If you sell, you will make money,” said Fred Thomas, a shareholder at Robertson-Ryan. He has been with the agency since 1994. “There is no limit to how much you can make here. Every account you write you get the commission. Since I’ve been here, there have been no adjustments to the commission splits. That is very unusual.” This unconventional formula has been successful. The number of producers has tripled since 2001 and there are 195 total employees working at the agency. There is little turnover in support staff. The agency’s

The headquarters of Robertson-Ryan & Associates is located at Two Plaza East, 330 E. Kilbourn Ave. in Milwaukee. On April 1, the agency celebrated its 52nd year in business.

By Eric Schwartz


That being said, we can still win and keep more than our share of the business.

Six Ideas For Competing Effectively

1! Know your competitive advantage. These days you have to build value and articulate what makes you different. Emphasize the things that make you, your company and your product unique. How are these three better than what the competition has? Also, emphasize the qualities of the one thing your competition does not have: you! Demonstrate how you deliver more, how you’re better, and how you’re different, in a good way, from everyone else out there.

In addition, know your competition and their product as well as you know your own company and product. Know how they compete against you and how to defend yourself. The best way to do this is to look at your company and product through the competitor’s eyes with objectivity.

2! Sound different than the competition. You’ve probably been trained to do things just like everyone else in your industry. As a result, you may sound almost exactly the same as your

competition. It’s important to do things differently, ask different questions, and have a different approach than the competition. The best way to do this is to listen intently and really focus on each customer’s specific needs, wants and desires. Show a strong

concern and unique understanding of the issues the prospect faces.

3! Outwork the competition. Make more phone calls, make more visits, network more often, and simply contact more people (ideally, lots more) than your competition. The more people you talk to, the more business you will do. While relationships are important, sales is still a numbers game. Don’t have a one-and-done approach. Placing one phone call, mailing one letter, or stopping by one time and hoping is enough are recipes for

no sales. People need to hear or see your name seven to twelve times before you start to gain mindshare. Set up a follow-up program where you reach out to people at least nine times over a four to five week period. For those you didn’t reach, give them six months off, and then start the nine-step process again.

4! Out-service the competition. Not only do you have to be willing to go the extra mile, you need to be willing to go a mile or two beyond that. Always make sure you give something extra, bend over backwards, and serve the customer far better than anyone else. Keep in mind that you not only compete with other companies within your industry, you compete with every company your customer comes into contact with. If you have voicemail, your voicemail is compared to the voicemail of the phone company, cable company, retail outlet, and everyone else who has voicemail. Your customer service is compared with everyone else’s customer service. Your objective is to stand out from everyone that your customer or prospect interacts with. If you are determined to go above and beyond, do more, work more, and go much further than anyone else is willing to go, you will stand out and beat the competition almost every time.

5! Out-relationship the competition. Once you get an account, make sure you keep it away from the competition. Ninety seven percent of people do business with a particular company because they like and trust someone at that company. If people like and trust you and you treat them right, rarely will they ever jump ship. And if they ever do think about jumping ship, they will call you first. Your goal is to have solid personal relationships with your customers. In the best-case scenario, your customers will be your friends. Friends continue to do business with friends, and they send referrals too. Communicate often. Send cards, gifts, and other items and let the customer

know you care and appreciate them. Get and share personal information to increase the depth of the relationship.

6! If you’re not number one, make sure you’re number two. If someone is doing business with the competition, you want to make sure that you get the call if the competition ever makes

a critical mistake. If you are number three or four, you are a long way from any business with that person or company. However, if you are number two, you are one rate increase or one bad customer service experience away from some potential business. Keep your name in front of them so you’re fresh in the prospect’s mind when number one eventually trips up. The nine-step process works well here.

Finally, do everything you can from a fair, legal and ethical standpoint to win when you’re competing. You need to go to bed at night feeling good about yourself, knowing you gave it your best shot possible, and that you did everything you could do to win fair and square.

> John Chapin has more than 21 years of sales experience and is the co-founder of Complete Selling Inc. For free access to John’s whitepaper on what it takes to be successful in sales, visit completeselling.com.

These days there seems to be more competition than ever, and the competition is getting more creative and relentless. Whether

it’s the low-price ankle biters, or the large companies with huge marketing budgets, our competitors seem to be everywhere.

SIX TIPS FOR EFFECTIVELY COMPETING FOR BUSINESS

You not only

compete with other

companies within

your industry, you

compete with every

company your

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MARKETING MINUTE

> John Graham, a marketing and sales consultant and a business writer, lives in Boston. He can be contacted at (617) 774-9759 or [email protected].

Going out on the proverbial limb can be liberating –– for salespeople, as well as everyone else.

6 Be impatient for your customers. Everything in sales is about urgency, a quality that’s measured by what an individual customer expects. The day after the Neiman Marcus package arrived by FedEx, the robo call confirmed that it had been delivered. A Kindle book is ready to read in less than 60 seconds. These are the type of experiences that are transforming customer expectations and dare not be ignored by salespeople.

Customer decisions are made on factors other than price and quality, although both are important. Staples gets it right, which it has for years. “Easy” is their magic word and they deliver on the promise, so why take a chance elsewhere? That’s the way your customers think, too. If it isn’t easy, they’re gone. Being impatient on their behalf

should be a top priority for every salesperson.

7 Know where you’re going. This includes this afternoon, later tonight, tomorrow, as well as next week, next year and far down the road. A few people do it, but many salespeople don’t. A life insurance agent who had been in the business for 30 years said, “This morning, I did the same thing I’ve done my whole career. I get up and try to figure out who I can talk to today.”

Too many salespeople work the same way, opportunistically. They wait for something to happen; sometimes it does, but most of the time it doesn’t.

The challenge is how to get from here to there. Is “there” the right goal? What’s the upside and what would keep you from getting there? What’s realistic and what’s fantasy?

Many event plans fail, not for a lack of enthusiasm but because no one spent the time to do a simple SWOT analysis. They never bothered to look at the strengths, weaknesses, opportunities and threats. It takes work to think about what can go wrong. It’s what we don’t anticipate that gets us in trouble.

8 Stay skeptical. When the owner of a small company announced that the doors were closing, the employees were shocked. Ironically, their reaction was equally shocking to the owner. In the same way, salespeople are often incredulous when they lose an account or fail to land the one they said was “a sure thing.” They can’t figure out how it happened.

The only way to grasp situations is to stay skeptical, something that demands effort and isn’t as much fun as staying blithely naive. Controlling your destiny in sales and everything else depends on continuous questioning: What am I missing? What don’t I understand? What do I need to find out? What’s not clear?

New solutions and keener insights come from doubt –– from an always-questioning attitude. This is the stuff that makes for greater success.

A competitive advantage in sales has less to do with your

drive, the clothes you wear or who you know than it does with taking total charge of yourself. The eight ways to gain a sales edge can help you get there.

Relaxed customers pay

up to 15 percent more

for their purchases

than customers who

are stressed. The right

buying environment can

make a difference.

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MARKETING MINUTE

While that is long passed, there seems to be confusion about what it means to be in sales today. Is it to provide “solutions,” to be a “facilitator” or to serve as a “customer resource.”

With such confusion, it’s easy to understand why increasing numbers of salespeople feel a need to practice obfuscation when it comes to letting others know what they do. “Sales” is the one word they do everything possible to avoid using. LinkedIn profiles, for example, are filled with exercises in creative writing when it comes to titles that are designed to cover up what people really do.

There’s everything right about being in sales. To try to hide being a salesperson from customers is self-defeating because it creates distrust and undermines credibility.

The major issue today in sales is how to get ahead of the competition. Here are eight ways to give yourself a sales edge:

1 Relaxed customers buy more. There’s a lesson for every salesperson in a recent study in the Journal of Marketing Research. It reveals that relaxed shoppers behave differently. They will pay up to 15 percent more for their purchases than customers who are stressed, which suggests that the right buying environment can make a difference.

2 Willpower focus. Salespeople aren’t alone in having trouble staying on track. Yet, success in selling requires careful planning, excellent organization and efficient follow up. All of this requires willpower. Should you check your e-mail or finish the sales report? Should you go see a prospect or call on a

“buddy-type” customer? Should you play a computer game or draft the proposal?

Psychologist Roy Baumeister, the author of Willpower, says we can train ourselves to be more disciplined. “People exert less self-control after seeing a messy desk than after seeing a clean desk,” he says. “You may not care about whether your bed is made and your desk is clean, but these environmental cues subtly influence your brain and your behavior, making it ultimately less of a strain to maintain self-discipline.”

You might even call it tending to business.

3 Stop reading sales books. Salespeople are drawn to anything that promises to make them the “greatest.” Since it never happens, it’s time to stop buying sales books. Most never get read, anyway.

This doesn’t mean to stop learning. What you need is the stuff that gives you something to think about. Here are three: Eat People and Other Unapologetic Rules for Game-Changing Entrepreneurs by Andy Kessler; The Presentation Secrets of Steve Jobs by Carmine Gallo; and You Are Not So Smart: You Have Too Many Friends on Facebook, Your Memory Is Mostly Fiction and 46 Other Ways You’re Deluding Yourself by David McRainey.

If they sound like fun, they are. They have nothing to do with selling and everything to do with closing more sales.

4 Talk to yourself. The one problem that keeps salespeople from greater success is listening to everyone else. What someone else thinks tells more about that person and nothing about you. The only conversations

that count are those you have with yourself.

It’s all about asking yourself the right questions: “Why did I freeze during the presentation?” Probably a lack of preparation. “Why am I afraid to apply for the job I really want?” I Probably don’t want to be turned down.

Don’t let junk fester. Talk to yourself about it –– and see what happens.

5 Go out on a limb. This may not be one of the Top 10 sales ideas, but that’s why it’s important. After being CEO of JC Penney for only six months, Ron Johnson, Apple’s retail genius, announced a total makeover that knocked the breath out the nation’s retailers. Others acknowledge this his plans are bold, brash and brilliant. His view is that nothing less than a total transformation can make the grade. He even had the audacity to suggest that spending $2 billion on advertising and promotion was too much!

It only took a day or so for doubters and naysayers to come out from under the rocks, skewering his plans with their tin swords. It’s true that ideas need testing, but thinking small and tinkering won’t do the job today. Remember, the same folks who said Apple wouldn’t be successful with retail stores are at it again with JC Penney’s plans.

Ironically, at the very moment when consumers and business buyers are better informed than ever, there’s also a greater need for competent salespeople. That may seem like a contradiction since the traditional role of a salesperson was to inform the uninformed.

TO GIVE YOURSELF A SALES EDGE


A DAY TO REMEMBER

A Association General Counsel Josh Johanningmeier presented an interesting session on concealed carry and tort reform. He started his discussion on concealed carry by talking about the differences between concealed and open carry, the application process, training requirements and the weapons covered under the law. Did you know billy clubs were covered? He finished up talking about tort reform. He said that last year everybody was talking about concealed carry but “people should have been talking about tort reform in 2011.” He discussed the implementation of the law, life before tort reform, seller and distribution protection, and statutory defenses. To make it even more worthwhile, Josh’s session netted attendees two CE credits. B Will Neville, a legislative assistant to Rep. Dale Kooyenga (R-Brookfield), met with Matt Weimer of Diversified Insurance Services. C Lucas Moench (right) of Sen. Leibham’s (R-Sheboygan) staff listened to members’ concerns. D A Day on the Hill attendees met with Lance Burri, Sen. Glenn Grothman’s (R-West Bend) chief of staff. E Tom Holter and John Wickhem take a break from meeting with legislators and their staffers outside the Hearing Room. F Traci Bussan, a legislative aide in Rep. Gary Hebl’s (D-Sun Prairie) office met with IIA of Wisconsin members.

A

D

E

F

B

C

A DAY ON THE HILLInaugural functions can be tricky. Often the excitement of the new event is tempered by low attendance. It takes time to build up momentum to new ideas. This was definitely not the case for the first annual A Day on the Hill. A large, enthusiastic contingent made the day even more worthwhile and compelling. More than 80 company and agency representatives made their way to the Madison

Club on Wed., March 7, for a day of speakers, continuing education and meetings at the Capitol with local senators and representatives. With government affairs being so vital today, it was excellent to see such a high-level of participation from IIA of Wisconsin membership. Both large and small agencies were represented. Even though the Legislature was in session, A Day on the Hill attendees still met with

legislators and/or their staff. In some cases, legislators left the floor and made time to talk with our members. Building strong connections and relationships with our elected leaders is crucial. The pictures here tell the story of a successful day. As one agent said, “I thought it was a great event. I will be attending next year and bringing more people from our agency.”

A The IIAW Day on the Hill was not the only event at the Capitol. The place was hopping with activity and the Legislature was in session. If you look closely, you can see IIAW members talking in the lower level. B Special guests joined A Day on the Hill attendees at the Madison Club. From left: Matt Tobin, Johnson Insurance; Dan Schwartzer, OCI Deputy Commissioner; Cari Lee, IIAW; Ted Nickel, OCI Commissioner; Kevin Murray, Johnson Insurance; and Brooke Froelich, legislative assistant to Sen. Sheila Harsdorf. C It was a great turnout. Eighty company and agency representatives made the first annual event a huge success. The attendees listened to a Rep. Kevin Petersen and other speakers in the Madison Club’s Terrace Room. D Big “I” members with a staffer from Sen. Tim Cullen’s (D-Janesville) office. E Cari Lee (left), IIAW Membership & Marketing Director, and Kathy Faltersack, IIAW Events Coordinator, welcomed attendees to the Day on the Hill at the registration desk.

A

D E

B

C


A DAY TO REMEMBER

A Tim Hoven is the IIA of Wisconsin’s lead lobbyist. He addressed the crowd about the importance of legislative advocacy and the political climate in the state. B Rep. Kevin Petersen (R-Waupaca) was the featured speaker at A Day on the Hill. Here he stands with the IIA of Wisconsin’s Executive Committee. From left: Dave Dunker, IIAW Secretary-Treasurer; Mike Hierl, IIAW President; Rep. Petersen; Skip Hansen, IIAW State National Director; Linda Steiner, IIAW Chairwoman of the Board; and Mike Froh, IIAW President-elect. C Rep. Amy Loudenbeck (R-Clinton) with Tom Holter, John Wickhem and Joe Decker. D Rep. Paul Farrow (R-Pewaukee), seated to the right, spent time talking with IIA of Wisconsin members. E A staffer in Rep. Robert Turner’s (D-Racine) office listened to members. F Rep. Kevin Petersen’s speech to members provided a sobering assessment of politics and politicians in this state. He made a persuasive pitch to get involved and reach out to legislators. Rep. Petersen is one of 15 business owners in the Assembly and there are 99 representatives. The majority - with little or no business experience – has a lot of power when making critical decisions that effect business. “They have never filled out a 940 or 941 (form),” said Petersen.

A

D

E

F

B

C

A DAY ON THE HILL

A Lise Meyer Kobussen and Dan Kobussen of Meyer Insurance in Sauk City met (just moments before this picture was taken) with Sen. Dale Schultz (R-Richland Center). A staffer pulled Sen. Schultz out of the Senate chamber to speak with the Kobussens. B Rep. Michelle Litjens’ (R-Oshkosh) staffer, Jon Turke, discussed issues with A Day on the Hill attendees. C Mike Hierl, IIAW President, opened the day’s events by welcoming members and talking about what A Day on the Hill represents. “Today is about building relationships and connections…are you all in for that?” He urged members to get involved and support the Insuring Wisconsin PAC. D Vince Williams, a legislative assistant to Rep. Joan Ballweg (R-Markesan), met with Heidi and Rex Nienow. E Jason Rostan, a legislative aide in Sen. Leah Vukmir’s (R-Wauwatosa) office took time to meet with our members. F Sen. Luther Olsen (R-Ripon) stopped by the Madison Club to chat with members and his former staffer, Cari Lee.

A

D

E

F

B

C


Clearly, making sure that chronic plan participants take their medication as prescribed and remain on the medication is vitally important in maintaining the health and well being of the chronic plan participant. While increasing a health plan’s prescription drug expenses may not be intuitively desirable, it is a proven strategy to avoid an expensive surgery or inpatient confinement resulting from an unmanaged chronic condition. Finally, the chart below summarizes the current and future role of the broker with a VBBD:

So let’s say you have decided to become an advocate for VBBDs. Where does one start? What is the strategy for implementation? As Dr. Dee Eddington wrote in his book Zero Trends, there are five pillars of the health management strategy. They include the following:

1 Senior leadership creates the vision. Without senior management commitment, a VBBD is doomed to fail. The “commitment” includes developing culture, connecting the vision to the business strategy, and engaging all levels of leadership in the vision.

2 Operational leadership aligns the vision with the workplace. This means implementing health management strategies and policies throughout the organization. At this level, the implementation could run the spectrum from an effective wellness program to “targeted” benefit plan design and communication initiatives.

3 Self-leadership. At this point, the strategy is to help plan participants not get worse and to keep healthy participants healthy.

4 Reward positive actions. Here, appropriate incentives, plan design and communications are vital in encouraging change within individuals and maintaining good health within the balance of the covered population. Reward champions and provide positive reinforcement.

5 Quality assurance. Integrate resources, measure outcomes and make it sustainable. One technique here is to gather all vendors with the benefit program together and describe the specific strategies of the employer as well as the measurement criteria.

And what is the final result? The title of Dr. Eddington’s book provides the answer — “Zero Trends.”

VALUE BASED BENEFIT DESIGN: The Ro le O f A Broker, PART 2In last month’s magazine, we explored an overview of Value Based Benefit Design (VBBD). This month, we examine the role of a broker.

> Arvid R. “Dick” Tillmar is the owner of Tillmar Connect, a business consulting firm. Tillmar has 45-years insurance industry experience. Prior to establishing Tillmar Connect in 2010, he was a shareholder, preventive health advocate, certified workplace wellness instructor and employee benefits consultant with Diversified Insurance Services in Brookfield. In 2009, Dick was named the IIAW Agent of the Year. Contact him at 414.690.2232 or [email protected].

PRESCRIPTION DRUGSMOST PATIENTS ARE NOT TAKING MEDICINES PROPERLY.

NONACCEPTANCE

NONCOMPLIANCE

NONPERSISTENCE>AT 12 MONTHS

>AT 18 MONTHS

NOTE: Acceptance means patient filled original prescription. Persistence means patient remains on therapy by a given dateCompliance means patient is taking the medication appropriately.

Source: Integrated Healthcare Information Services, Inc. (IHCIS) (30 health plans, 11 million members; HL analysis: Age 25-64, N+8839 HTN analysis: Age 25-64, N-11,422; Diabetes analysis: Age 18-64, N-6090)

HIGHCHOLESTEROL

10%

34%

47%

47%

HIGHBLOOD PRESSURE

15%

38%

49%

46%

DIABETES

11%

37%

51%

46%

FIGURE 1

So what is the role of the broker in a VBBD? The sun is quickly setting on the broker who views their role as one in which their primary responsibility is to negotiate the best possible renewal premium for the client without understanding the basis for the renewal or the underlying causal factors. Value Based Benefit Design offers a new and exciting approach to change, not only to the broker/client paradigm, but also to underscore the value proposition of the broker. Moreover, VBBD is not a concept that is only applicable to the large, self-funded client that has credible claims experience, access to robust data analysis/predictive modeling/disease management programs. In fact, the small employer has just as many opportunities to deploy a VBBD. Simple demographic data can lead to the development of a VBBD strategy. For example, a small group with a high concentration of males could benefit from a robust wellness program. Such a program might include a health risk assessment and biometric testing. The collective results may help to identify areas of concentration for a wellness program. Conversely, given the rapid escalation of Type II diabetes, adjusting the prescription drug benefits to provide for diabetic testing and supplies at a zero copayment would (in theory) improve compliance and adherence. Not sure as to how much the increase in obesity in this country will impact the exploding volume of Type II diabetes? Check out this link to the Centers for Disease Control and Prevention: www.cdc.gov/obesity/data/trends.html#State. It’s a real eye-opener! Prescription drug compliance and adherence for chronic patients is an important part of VBBD. Figure 1 below indicates the compliance rate for various chronic disease categories.

CURRENT• Delivering renewal proposals.

• Underwriting decrements.

• Measuring cost.

• Historical review of cost trends.

• Managing costs and behaviors via: copayments, deductibles, network discounts, reimbursement accounts, and payroll contributions.

FUTURE• Delivering value.

• Value-based initiatives.

• Measuring individual and group health status: compliance/adherence.

• Managing costs real time through: data analysis, predictive modeling, and disease management/health coach.

• Managing costs and behaviors via: information/education, leadership, incentives, behavior modification, and health value proposition.

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Every two years, as winter turns to spring, the sun sets on the Wisconsin legislative session and brings life to the political season.

The change in “seasons” is notable, but certainly not extreme. In fact, for all practical purposes, they are one in the same.

Political campaigns lead to new elected officials, and the decisions those legislators make in office will impact the next election-cycle.

In other words, Wisconsin’s legislative/political carousel never stops turning.

To be successful in the State Capitol, the IIAW must be willing to jump on the carousel and grab the brass ring – both on the legislative front and in the political arena.

Over the past year, the IIAW has shown its ability to influence legislation important to independent insurance agents. Now it’s time to focus on the political side and help candidates who share our views and support the insurance industry.

As a Big “I” member you can help decide who shapes insurance and business policy in Madison by participating in the IIAW’s Insuring Wisconsin Political Action Committee (IWPAC).

The IWPAC is the newest addition to the IIAW’s comprehensive government affairs program. It provides Big “I” members

a unique opportunity to engage in the political process and influence state legislation. It’s also designed to strengthen the IIAW’s identity among lawmakers and maximize our impact in the Capitol.

The IWPAC allows the Big “I” to collect voluntary contributions from members, which are then used to help elect candidates to the Legislature and governor’s office that share our business philosophies.

You may ask yourself why it’s important to contribute to the IWPAC. The answer is simple. Every day, lawmakers consider legislation and other regulatory matters that could impact your business – and your bottom line.

Elections have consequences If the IIAW does not have the political muscle to participate in the election process, our policy influence will shrink and leave independent insurance agents vulnerable to harmful legislation and new regulatory burdens.

By investing in the political marketplace through the IWPAC, you can help the IIAW defeat unfavorable legislative proposals and promote policies beneficial to the insurance industry.

While political fundraising is not always a popular topic, campaign contributions are an important part of legislative advocacy. Like other ongoing business costs, “political expenses” are critical to the long-term success of your business. They should be viewed as an investment to ensure your agency is well represented in the Legislature and throughout state government.

Invest in the political marketplaceThe IIAW has enjoyed numerous legislative successes over the past year – and our members were critical to that success. But now is not the time to rest on our laurels.

If the IIAW wants to achieve future legislative goals, we have to make smart political investments today. We have entered the political season, and the Big “I” would urge you to contribute to the IWPAC.

If you are interested in contributing to the IWPAC, or would like more information on this important government affairs tool, please visit the IIAW Web site (iiaw.com) or call our office at (608) 256-4429.

POLITICAL SEASON BEGINS AS LEGISLATIVE SESSION ENDS

> Tim Hoven is the founder of Hoven Consulting in Madison, Wisconsin. Tim also served in the Legislature from 1994 to 2002. Hoven Consulting is the Government Affairs team for the IIA of Wisconsin.

Over the past year, the IIAW has

shown its ability to influence

legislation important to

independent insurance agents.

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“After owning an agency for 16 years, our firm merged with Gallagher. Since joining, Gallagher has continued to provide me with opportunities to grow personally and professionally by allowing me to lead the Energy Practice, and most recently, to assume the regional leadership role for the South Central territory.

Selling our company was a very emotional event for my family, partners and employees. My personal and professional expectations have been exceeded by the Gallagher team.”

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NEWS FROM ACT

One large bank agency manager recently told me that she and her staff have to

manage 5,500 different IDs and passwords for the bank’s agency employees.

One of the more exciting developments in our industry is to see several significant players in our industry come together and create ID Federation, Inc. The ID Federation recently released the first public version of a Trust Framework that will enable agency employees (and carrier employees as well) to create federated, digital identities that would be trusted by multiple carriers and other business partners.

Here is how it would work. The typical agency (called a “user authority”) would contract with a vendor (“identity provider”), which would create digital identities for each of the agency’s employees (“users”). These digital identities (SAML tokens) would

be passed to carriers (“relying parties”) that have established a trust relationship

with the agency’s identity provider, pursuant to the Trust Framework that both the vendor (identity provider) and carrier/relying party have agreed to. The agency employee/user would only have to logon on to the identity creation and management tool/identity provider that the agency has selected and then would be able to conduct business with his or her multiple carriers, whether using Real Time or logging on to the carrier’s Web site, without entering carrier passwords.

The agency and carrier, of course, would continue to be governed by the business agreement that runs between them. The Agents Council for

Technology expects some very large agencies to become trusted identity providers directly (rather than using a vendor). One large bank agent has already done so.

Keep in mind that this is a future development for most agents and is not live yet, except for one large agent and carrier. These developments, however, provide the roadmap for the industry to alleviate the current headaches that agents are experiencing with passwords.

Agents should start to talk with their carriers about the ID Federation and encourage them to participate in the Federation. In addition, we need the major vendors to build out the tool for agents to use. So far, the two largest agency management system vendors have shown a strong interest in developing an identity management tool for their agencies, which is encouraging.

There is an excellent overview about the ID Federation on their Web site at www.idfederation.com/in-the-industry/idfi-act_2_16_2012. The ID Federation initially presented this PowerPoint at the ACT meeting on Feb. 16, 2012.

NEW INDUSTRY GROUP AIMS TO ALLEVIATE CURRENT PASSWORD HEADACHESIt’s no secret that one of the greatest headaches for independent agencies is dealing with the ever-changing passwords for each of their carriers and other business partners.

> Jeff Yates is executive director of the Agents Council for Technology (ACT) which is part of the Independent Insurance Agents & Brokers of America. Jeff can be reached at [email protected]. ACT’s Web site is www.iiaba.net/act. This article reflects the views of the author and should not be construed as an official statement by ACT.

Having too many passwords can be frustrating.

One large bank agency manager recently

told me that she and her staff have to

manage 5,500 different IDs and passwords

for the bank’s agency employees.


Robert (Bob) Nadolske passed away unexpectedly of natural causes at the age of 70 on March 7, 2012, in Palm Springs, CA. He was born in Chicago, IL on December 3, 1941, to Walter and Marie

(Sexton) Nadolske. On July 24, 1987, he married Linda Scheible. After graduating from Business College, Bob’s 47-year career was devoted to the insurance industry. He was actively involved in the Independent Insurance Agents of Wisconsin (IIAW) for more than 30 years. Bob served on various committees, was a member of IIAW Board of Directors, and was the Association’s President from 2006-2007. He was awarded the prestigious IIAW High Achiever Award in 1999, and was recognized for many other professional achievements throughout the years. In addition, he was the IIAW Convention Chairman for 10 years. After 34 years

of dedicated service to his profession with Monroe Insurance Agency in Oshkosh, he went into semiretirement while keeping strong ties to the industry and community.

Bob’s passion for the Oshkosh area was evident by his involvement in the community. He was the current Commission President of Algoma Sanitation District. He was a Town of Algoma Supervisor, Chairperson of the Planning Commission, and a member of the Cable Channel Advisory Committee. Bob served on the Oshkosh Chamber of Commerce Board of Directors, its Executive Committee, and chaired its Membership Committee. In 1996, he was recognized as the Oshkosh Chamber’s “Volunteer of the Year.” Bob was Chairperson for the annual Oshkosh Holiday Parade for 25 years and was affectionately known as “Mr. Holiday Parade.”

In addition, Bob was on the Board of Directors and Executive Committee for the Oshkosh Area Economic Development Corporation (OAEDC), as well as President and Treasurer of OAEDC. He was the current Vice President for the Friends of Oshkosh Community Media Services Board. He spent nine years on the Board of Directors for the Oshkosh YMCA and chaired its Membership Committee.

Bob enjoyed traveling throughout the United States. His favorite Wisconsin

destination was Door County. Bob was an avid sports fan, attending his grandchildren’s sports activities, and cheering for the Green Bay Packers, Wisconsin Badgers, and Oshkosh North Spartans. He had a passion for music and especially the Thursday night Waterfest concerts. Bob was a caring husband, father and grandfather, and was loved by all who knew him.

Bob is survived by his wife Linda and his three children: Shari Nadolske of Meridian ID, Paula (Clayton) Bennett of Slinger, WI, and Wayne (Julie) Nadolske of Cortez, CO. He is further survived by his five grandchildren: Tyler (fiancée Maggie), Tiffany, Trevor, Jordan and Alexandria. Bob was preceded in death by his parents and his sister, Sharon.

IN MEMORY OF BOB NADOLSKE

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F R O M T H E A R C H I V E S

Members of the 1925-26 Wisconsin Association of Insurance Agents (a precursor to the Independent Insurance Agents of Wisconsin) posed for this group shot in Madison in Sept. 1925. Other than the interesting array of ties, hats and hairstyles on display, The Photoart House also has a story. Renowned photographer William J. Meuer and his brother,

Roman, opened the Meuer Photoart House on State Street in 1916. The men captured the history of UW-Madison and the surrounding areas. You can browse the William J. Meuer Photoart Collection online at: uwdc.library.wisc.edu/collections/UW/MeuerAlbums. Not pictured: Bob Jartz

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C O N T I N U I N G E D U C AT I O N I N M O T I O N

Instructor Mary Hauri-Kleinsmith walks to the front of the class during the continuing education session, Technology, Security and E&O. The new session proved to be popular with attendees as they satisfied eight CE credits. In addition to her duties as an IIAW instructor,

Mary is the owner and president of Insurance Concepts in Motion, a firm that specializes in helping agencies take the next steps in automation by integrating software into the agency workflow.


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Food for Thought:

Pilots Become Brewers On April 1, 1970, with spring training all but over, Bud Selig and a group of owners bought

the bankrupt Seattle Pilots for about $10 million, and the Milwaukee Brewers were born.

In that first year in Milwaukee, the team went 65-97, good for 4th place in the American

League West. Selig sold the Brewers to Mark Attanasio in 2005 for $223 million. The Brewers

are now valued at around $235 million. Source: seattlepilots.com and forbes.com

Yeah, But Are They Happy? The combined net worth of the 20 richest people is $676.8 billion. If these people

liquidated everything they owned and converted it to cash, they could retire about

22 percent of the national debt, now estimated at about $15 trillion. Topping the

list is Carlos Slim, the Mexican telecommunications mogul, with $68.5 billion in the

bank. Some guy who founded Microsoft is number 2.

Source: yahoo.com

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Documents

April 2012 IIAW Magazine