Primary Agent - December 2009 - MD Edition

MARYLAND

ALSO INTHISISSUE________________Positioning and planningfor the future

Straight talk fromCommissioner Ario

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A few of our favorite thingsHealth care reform. Commission disclosure. Certificates of insurance. 2009 wasn’t for the faint of heart. To look on the bright side (yes, grab thoserose-tinted glasses), the challenges gave IA&B plenty of ways to prove itsvalue to members. Read on for IA&B’s top accomplishments of the year.

Page 12

Positioning and planning for the futureApproximately 100 agency principals converged in Lancaster, Pa., Oct. 27-28.The draw? IA&B’s inaugural Executive Management Conference featuringMarshBerry and focusing on agency perpetuation.

Page 20

Straight talk with Commissioner ArioPennsylvania Insurance Commissioner Ario paid his second visit to IA&Bwithin two years when he spoke at the August Board of Directors meeting. The executive committee member for the National Association of InsuranceCommissioners discussed topics of national concern: health care reform, state versus federal regulation and the role of the agent.

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ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2009. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent EditorPO Box 2023Mechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2009-12) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

4 Chair of the Board’s Message5 Member FAQ5 Glance at Events6 State News7 New Members8 Preventing Errors & Omissions

10 Coverage Corner29 IA&B Partners30 Technology Update32 Classified Ads32 Advertisers Index

In every issue

Mission StatementPrimary Agent delivers ideas to helpInsurance Agents & Brokers’ membersnegotiate their unique position asguardians of trust between insuranceconsumers and companies whilefacing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission topreserve and advocate the AmericanAgency System.


WHEN EVERYBODY SAYS “NO”...

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OfficersKathleen M. Glattly, ChFC, CLU, CPCU

Chair of the BoardFactoryville, Pa.

David Rosenkilde, CICVice Chair of the BoardReisterstown, Md.

Robert J. “Buc” Cawley, AAIImmediate Past Chair of the BoardWexford, Pa.

MembersNorman F. Basso, CPCU

York, Pa.

Vincent D. “Chip” Boylan Jr., CPCURockville, Md.

Henry “Butch” Bradley, Jr.Crofton, Md.

Timothy P. BurrisThompsontown, Pa.

M. Scott Clemens, CIC, CPCU, CLU, ChFC Souderton, Pa.

John T. “Chip” Colwell Jr., CICCorry, Pa.

G. Greg Gunn, CICLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PWest Chester, Pa.

Diana M. Hornung-Momot, ACSRWilmington, Del.

Linda A. McCann, AAI, CPCU, CPIWSalisbury, Md.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Scott C. Rogers, CPIAYork, Pa.

Susan A. Sallada, CIC**Ft. Washington, Pa.

William D. Schneider, CPCU, ARM*Pittsburgh, Pa.

Robert A. Walbeck, CICHomer City, Pa.

David B. Wasson Sr., CICState College, Pa.

James M. Watkins*Dover, Del.

King W. “Kip” White, LUTCFFallston, Md.

John S. Yasik, CICNewark, Del.

* IIABA National Director** PIA National Director

Board of Directors

A 2009 refresher

December already? Yes, 2009 will soon be a distant memory,but until then, I encourage you to refresh your memory.

Think about what you’ve accomplished this year. Rememberyour successes — and your defeats. How you grew, as aninsurance producer, as a supervisor, as a friend, a partner, aparent. Year end is a time for reflection.

That’s exactly what this issue of Primary Agent magazine isdedicated to: reflection. We’ll look back at 2009 and pointout all of the ways the association and its membership haveevolved. It’s an excellent opportunity to refresh yourmemory, or, in some cases, to learn about achievementsyou may have missed throughout the year.

This month’s issue, as it is every year, is also dedicated tothe association’s change in leadership. You’ll find an articlerecapping the Annual Meeting and inaugural ExecutiveManagement Conference, as well as an official introductionto the 2009-2010 Board of Directors. Know that thesevolunteers are dedicated to making 2010 equally asprosperous for your association — and for your agency.

As always, we welcome your input, and we thank you foryour membership. IA&B’s success is attributable tomembers’ guidance, our board’s support and the staff’stalent and dedication. We look forward to the year ahead —to soar to new heights!

Have a safe and blessed holiday season,

Kathleen

[ 4 ]

Kathleen GlattlyCPCU, CLU, ChFC, AIM

Chair of the Board’sM E S S A G E


?QUESTION: Credit score: Does an insurance score cause a hit ona person’s credit? I’m getting conflicting answers.

ANSWER:To get a definitive answer, it’s best to go to the entityproviding the scores in the first place. Other sources maynot be reliable.

Fair Isaac Corporation is one of the leading providers ofcredit and insurance scores. Their FICO Credit Scores usedby lenders and FICO CBIS (credit-based insurance scores)exclude insurance inquiries from score calculations, sothere would be no positive or negative effect on a FICOscore as a result of insurance inquiries.

Upon researching the issue with the three major credit bureaus:

w Equifax currently uses the FICO model and states thatcertain types of inquiries, including insurance, are notused when calculating the score. This information isavailable on the Equifax Web site.

w Transunion only takes into account hard inquiries(from lenders and creditors). Requests by an insurance

company or agent would be considered a “softinquiry” and be excluded, so there is no negative effect there either.

w Experian did not provide a clear and definitive answer: It depends on the permissible purpose andhow the contract between the agency (or the carrier)and Experian was set up. As a result, it is possible thatsome inquiries would trigger a hit to the individual’scredit score. We would encourage agents to check with Experian (or the carriers through which they areusing Experian) how the membership (i.e. contract) isset up to determine whether or not clients could beadversely affected.

Finally, if the scores come from another provider, it wouldbe best to check with that provider before giving a definitive answer to your client.

DO YOU HAVE A QUESTION? E-mail it to us at [email protected]. Please use “PrimaryAgent FAQ” in the subject line of your message. You canalso fax your question to (717) 795-8347. We look forward to answering your questions!

Glance at EventsDate Topic Location

1 CISR—Personal Residential course Frederick, Md.

Mistakes that Lead to E&O Claims seminar Mechanicsburg, Pa.

2 CISR—Personal Residential course York, Pa.

2-4 James K. Ruble Graduate Seminar Harrrisburg, Pa.

2-5 CIC—Commercial Property institute Ellicott City, Md.

8-10 P&C Licensing Study Course Mechanicsburg, Pa.

D E C E M B E R C A L E N D A R

Member FAQ


Primary Agent | December 2009

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The panicked phone call usually comes after the fact. A producer leaves an agency and takes insiderknowledge with him. He starts to solicit expiringaccounts. And the agency principal begins scrambling.

“What can I do to protect my accounts?” is the pleaIA&B often hears.

Truth is, to best protect an agency’s policy expirations,producer agreements should be negotiated up front — wheneverything is hunky dory. However, the old adage “better latethan never” applies. Even if it’s not at the time of hiring,agency principals still can execute binding agreements.

Five considerations for account protectionTo protect their policy expirations, it’s vital for agency ownersto understand their rights under common and contract law.

That’s why IA&B created a members-only producer-agreements toolkit. It walks member agency owners throughthe necessary provisions in producer agreements and spellsout the consequences of improperly drafted contracts.

Taking a stand against account piracyIA&B unveils producer-agreements toolkit

To protect their

policy expirations,

it’s vital for

agency owners

to understand

their rights

under common

and contract law.

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[ 7 ]

The Web-based toolkit is broken downinto five parts — trade secrets, restrictivecovenants, compensation plans,damages, and employee v. independentcontractor. Plus, it contains sampleproducer agreements for employees andindependent contractors.

Trade secrets: Trade secret law is anagency’s ace in the hole. Informationclassified as a trade secret requireshigher levels of protection. Combine thatwith a restrictive covenant, and anagency’s customer lists and expirationstreated as trade secrets enjoy the mostprotection provided by law.

The toolkit describes the classificationprocess and outlines necessaryprotections.

Restrictive covenants: Restrictivecovenants are contractual provisions thatare key to protecting an agency’s bookof business. Especially when they’recombined with a trade secret clause.

IA&B’s tips explain how to define anagency’s ownership of client informationand how to use non-piracy agreementsto prevent former employees fromcontacting clients for a specified period of time.

Compensation plans: Produceragreements must include compensation— whether it’s salary, commission,bonuses, equity in the book of business,agency ownership or a combination.

The toolkit shares the pros and cons ofvarious compensation plans and offerslegal wording to solidify thearrangements.

Damages: Agency owners must stick totheir guns. If a producer leaves and triesto lure past clients, it’s crucial that theprincipal respond with a consistent andplanned approach. Otherwise, aprecedent is set that could invalidateother non-compete and non-piracyagreements.

IA&B’s guide includes strategies for howto address piracy and tips for how toassess damages.

Employee v. independent contractor:Potato, potahto, tomato, tomahto. Notso in the insurance industry. What’s in aname? Quite a bit: It’s important thatagency principals word contracts

appropriately to classify producers asemployees or independent contractors.

The toolkit helps agency owners to determine where their producers fall and to understand the complexitiesof using the “independent contractor” label.

Access IA&B’s producer-agreements toolkit online.

Visit iabgroup.com and click Agency Operations 2 Employee Management 2 Hiring & Managing.

New MembersW E L C O M E

Santucci InsuranceFrederick, Md.

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PreventingE R R O R S A N D O M I S S I O N S

[ 8 ]

PAUL E. WALTERS

Paul E. Walters is claims

manager for Utica Mutual

Insurance Company in

Utica, N.Y.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your Errors &

Omissions coverage, contact

IA&B at (800) 998-9644 or by

e-mail at [email protected].

COINSURANCE — ARE YOUR CLIENTS INFORMED?


The best way for an agencyto protect itself from claimswhere coinsurance penaltiescome into play is byexplaining to the client whatcan happen if a risk is notinsured to value.

Not every client understandsthe concept of coinsurance.

Coinsurance penalties inproperty policies are placed inthose policies for a reason. Aproperty owner cannot askfor full coverage on a building(or contents or businessinterruption) at lower limitsand expect to collect the sameamount of reimbursementshould a loss occur as ifhigher limits were on the

policy. Carriers protectthemselves with coinsuranceclauses to help ensure theyare getting the properpremium for a risk.

In essence, coinsuranceoperates to help ensure aninsured has some “skin in thegame.” Yet not all policies arewritten with coinsurance. An


[ 9 ]

agent, however, should be awarewhich clients have a coinsurance clausein their policies and must take certainsteps to protect themselves should aclient suffer a loss and has acoinsurance penalty assessed.

Due to the application of coinsurance,not every client will be able to collectthe full amount of damages if there is aloss. If a client has been informed ofthe consequences of coinsurancepenalties when a policy is procured,the client should have no reason tomake a claim against an agent.

Generally speaking, an agent has noduty to tell a client how much coveragethe client should carry. Unfortunately,not all clients are properly informed ofeither the existence of — or theconsequences of — coinsurance. Whena loss occurs, agents can be draggedinto the litigation process when a clientis penalized for not carrying enoughinsurance, even if it was the client thatultimately provided the figures.

The agent failed to notice …Some agents might not have a marketfor a particular risk and, as a result, beforced to place coverage through abroker or an MGA that has a market.While an agency might be familiar withits standard markets in terms of when acarrier might place coinsurance on arisk, the same may not be true whendealing with markets it cannot directlyapproach. When dealing with coverageprocured through another broker, anagency must recognize whencoinsurance is placed on a policy andmust inform the client.

Take, for example, a case where anagent went though an MGA forbusiness personal property coveragefor a large client. The agent and clientagreed on blanket coverage with nocoinsurance, and asked the MGA toquote on blanket coverage with nocoinsurance. The quote from the MGAdid not mention coinsurance.

When the proposal was accepted bythe agent on the MGA’s system, theagent failed to notice that 90 percentcoinsurance would apply if a statementof values was not received within 30days. Needless to say, no statement ofvalues was submitted, and the policywas issued with 90 percentcoinsurance. The agent also missedthat the Dec page indicated there was90 percent coinsurance on the policywhen it was issued.

A tornado loss destroyed the client’swarehouse, and the carrier determinedthe business personal property wasgreatly underinsured. A $2 millioncoinsurance penalty was assessed. Theclient sued the carrier and the agent,and the agent sued the broker. Thecase settled with the agent, carrier andMGA each paying. The agent’s sharewas $550,000.

The client was assessed acoinsurance penalty …The issue of coinsurance can alsopresent a problem for an agency if theagency assists the client in determininglimits. As stated above, an agentnormally has no duty to inform a clientwhat limits the client should carry.However, there will be instances wherethe agent assists the client in

determining limits for a particular typeof coverage.

For example, a claim was made againstan agency based on a coinsurancepenalty arising from a businessinterruption loss. The client wanted hisagent’s help in calculating the businessinterruption limits he should carry. Theagent informed the client to give himmonthly and annual figures based onlyon profits. The limit was set at theprojected profit figures.

What the agent failed to realize is thata business interruption projection mustalso include a figure representingcontinuing expenses. A loss occurred,with the client assessed a coinsurancepenalty of $160,000. The agentadmitted he was unaware continuingexpenses needed to part of thecalculation. The claim was settled for$135,000.

Make sure the clientunderstandsThe best way for an agency to protectitself from claims where coinsurancepenalties come into play is byexplaining to the client what canhappen if a risk is not insured to value.Document the discussion and makesure the client understands theramifications of coinsurance. If anagency assists a client in determininglimits, the agency must feel verycomfortable with the advice given.Otherwise, it might be best for theclient to seek the advice of a propertyappraiser, accountant or some otherexpert to determine limits.


CoverageC O R N E R

[ 10 ]

JERRY MILTON, CIC

Jerry M. Milton teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

BUSINESS INCOME AND ORDINARY PAYROLL


Business Income insuranceprovides coverage for theactual loss of business incomeduring the “period ofrestoration.” The InsuranceServices Office (ISO) BusinessIncome Coverage Formsstipulate:

“Business Income meansthe:

a. Net Income (Net Profit orLoss before income taxes)that would have beenearned or incurred; and

b. Continuing normaloperating expensesincurred, includingpayroll.”

If the Business Income form iswritten subject to acoinsurance requirement, thefollowing condition applies:

“We will not pay the fullamount of any BusinessIncome loss if the Limit ofInsurance for BusinessIncome is less than:

1. The Coinsurancepercentage shown forBusiness Income in theDeclarations; times

2. The sum of:

a. The Net Income (NetProfit or Loss beforeincome taxes, and

b. Operating expenses,including payrollexpenses,

That would have beenearned or incurred (had noloss occurred) by youroperations at the describedpremises for the 12 monthsfollowing the inception, orlast previous anniversarydate, of this policy(whichever is later).

Now I don’t think we have tobe brilliant to figure out thatthe higher your operatingexpenses, including payroll,the more insurance you haveto buy to satisfy coinsurance.Therefore, insureds are givenoptions regarding theirpayroll. They can include,limit or exclude “ordinarypayroll.”

If any of you have ever heardme talk about ordinarypayroll, you know that thisterm upsets me. I don’t thinkpeople who are working,paying their bills andsupporting their families are“ordinary.” But that’s aninsurance term, and I have toput up with it. By the way, Ican show you “ordinary,” andit ain’t those folks making anhonest living.

The Ordinary PayrollLimitation Or Exclusionendorsement (CP 15 10)allows the insured to excludeordinary payroll or limitpayment of ordinary payrollto 90 days or 180 days. Inother words, ordinary payrollexpenses will not be paid orwill be limited to 90 days or180 days in the event of abusiness income loss. Why dothis? If we’re not going to payordinary payroll, then wedon’t have to include thoseexpenses for coinsurancepurposes. Therefore, we canpurchase less insurance andstill satisfy coinsurance.

The endorsement does nottell us what “ordinary payroll”is. Instead it tells us what itisn’t.

“Ordinary payroll expensesmeans payroll expenses forall your employees except:

1. Officers;

2. Executives;

3. Department managers;

4. Employees undercontract; and

5. Additional Exemptions,shown in the Schedule as:

a. Job Classifications; or

b. Employees.”


[ 11 ]

That should be the end of the story, butthere’s more. There are some folks whoargue that the insurer is not obligated toreimburse the insured for all payrollcosts even if the Ordinary Payrollendorsement is not added because ofthe following wording in the LossDetermination Condition of the policy:

“The amount of Business Income losswill be determined based on:

(3) The operating expenses, includingpayroll expenses, necessary toresume operations with the samequality of service that existed justbefore the direct physical loss ordamage;”

Obviously, those who argue that allpayroll costs don’t have to be paid basetheir argument on the fact that allpayroll costs are necessary to resumeoperations with the same quality ofservice. I just don’t buy that. We have anendorsement, which costs money by theway, to exclude some of this payroll. Ifthe insured has to pay to exclude thispayroll, how can the insurer exclude itfree of charge?

In the latest revision of the CommercialProperty forms, ISO has furthercomplicated the situation by introducingthe Discretionary Payroll Expenseendorsement (CP 15 04). Thisendorsement allows the insured toinclude certain payroll expenses asoperating expenses regardless ofwhether such expenses are necessary toresume operations.

I thought the policy paid “continuingnormal operating expenses, includingpayroll.” Why do I need to pay moremoney to include certain payrollexpenses? I guess I’m confused. I canexclude or limit certain payroll — for anadditional premium. I can include certainpayroll, which I thought was alreadyincluded — for an additional premium.

Y’all take care!


ASSOCIATION AT WORK

Health care reform.Commission disclosure.Certificates of insurance.2009 wasn’t for the faint of heart. To look on thebright side (yes, grab thoserose-tinted glasses), thechallenges gave IA&Bplenty of ways to prove itsvalue to members. Read on for IA&B’s topaccomplishments of the year.

A few of our favorite thingsTop accomplishments of 2009

G12356_12-19.qxp:December09Primary 11/16/09 12:07 PM Page 12

[ 13 ]


February: Addressed certificates of insuranceTake this scenario: Independent contractor asks rule-abidingproducer to alter certificate of insurance per generalcontractor’s request. Rule-abiding producer denies request.Contractor finds unscrupulous producer who will modify thecertificate. Rule-abiding producer loses the account tounscrupulous producer. Sound familiar?

According to participants in IA&B’s Member Agent Panels,requests to modify certificate language are commonplace, asis losing business to producers who are willing to make thechange.

In November 2008, IA&B successfully prompted the MarylandInsurance Administration to issue a bulletin addressing thealteration of certificates and then moved on to thePennsylvania Insurance Department. In February 2009,Pennsylvania Commissioner Joel Ario released a noticeconfirming that the alteration of certificates is improper andsubject to enforcement.

Now Maryland and Pennsylvania producers can provide proofto their demanding insureds of why they cannot modifycertificates. And that helps to level the playing field. Take that,unscrupulous producer!

More information: iabgroup.com 2 certificates of insurance

_____________________________________________________________

Recipe for change: Take “most influential lobbyists.” Add IA&B’s new Web-based Political Action Center. Shake up with acontroversial issue, such as health care

reform. And KABOOM! _____________________________________________________________

February: Launched Political Action Center“Insurance agents rank at the top as the most influentiallobbyists in any district and are considered a reliable source ofinformation,” Rep. Barney Frank (D-Mass.), chairman of theHouse Financial Services Committee, once said.

Recipe for change: Take “most influential lobbyists.” AddIA&B’s new Web-based Political Action Center. Shake up with

In February 2009, IA&B

launched its Political Action

Center online resource for

members.

F E B R U A R Y 2 0 0 9


April: Released fiduciaryresource

Say that Option A providesFDIC protection up to$250,000 for an agency’ssingle fiduciary account. ButOption B provides it up to$250,000 per policyholder andper carrier on whose behalfthe agency is holding funds.Talk about a no-brainer.

Amid the faltering economy oflate 2008 and early 2009,IA&B released a three-parttool to help membersunderstand their fiduciaryduties under the law, how tostay compliant and whichaccounts maximize FDICprotection.

Part I tackles the state andfederal requirements thataffect producers who holdmonies in a fiduciary capacityand the security of thosefiduciary accounts. Part IIaddresses commingling –what is permissible and what

is not, what conditions mustbe met and what to look outfor. And Part III reveals tips onhow to choose theaforementioned and highlycoveted Option B for FDICprotection.

More information:iabgroup.com 2 agencyoperations 2 fiduciary duties

April: Added to MemberAgent PanelsIA&B added a new destinationon the MAP in 2009: Dover, Del.

MAPs, or Member AgentPanels, are meetings whereIA&B leadership and staffgauge members’ needs anddiscuss ways to support them.They were the impetus for thedevelopment of IA&B’s HRSolution© and Emergency and Business ContinuityPlanning Manual.

Members volunteer to servetwo-year terms that involvemeetings each spring and fallin towns across Maryland andPennsylvania … and, as ofApril, in Delaware, too. During all 13 lucky 2009MAPs, members shared theireconomic, technological and carrier-related challengesand explained how IA&Bcould help.

More information:iabgroup.com 2 about us 2get involved

ASSOCIATION AT WORK

[ 14 ]

A P R I L 2 0 0 9a controversial issue, such ashealth care reform. AndKABOOM!

IA&B launched its PoliticalAction Center in February. Anextension of iabgroup.com, thesite allows members to stay ontop of state and federal issuesby reading bill summaries andstatus reports, as well as IA&Bpositions. Plus it simplifiescontact with legislators bystoring contact information,talking points and form letters.

Thanks to the health carereform shouting match – er, um… “debate” – of 2009, plenty ofIA&B members gave thePolitical Action Center a spin.

More information: iabgroup.com2 political action center


[ 15 ]

June: Introduced Pennsylvania HB 1780It’s a bird. It’s a plane. No, it’s … HB 1780 tothe rescue!

Pennsylvania members shared with IA&Bthat several business entities lackedworkers’ compensation (WC) coverage. Sothe association partnered with legislators todraft HB 1780 — legislation that wouldallow insurers, including the State Workers’Insurance Fund, to provide WC coverage for

members of an LLC, partners of apartnership and sole proprietors.

The bill was introduced in the House in lateJune, and finally, after marathon (anunderstatement if there ever was one)budget debates, will be the subject of aHouse Insurance Committee late fall publichearing. IA&B will be there to lobby for thistop legislative priority.


M A Y 2 0 0 9

J U N E 2 0 0 9

IA&B worked to have legislation signed

into law in May 2009 to restore clarity to

a confusing Maryland Condo law.

May: Restored Maryland condo lawCoverage upheaval! An April 2008 MarylandCourt of Appeals decision reversed over 25 yearsof insurance practice by not requiring a condoassociation’s master policy to cover damage toan individual unit.

The result (along with much head scratching)?Confused producers. Confused insurers.Confused condo association managers. Confused– not to mention underinsured – condo unitowners.

IA&B spearheaded a coalition and workedsteadily for a fix throughout 2008 and into 2009.And the hard work paid off when Gov. O’Malleysigned HB 287 and SB 201 into law on May 19.The legislation restored clarity – and commoninsurance practice.

More information: iabgroup.com 2 (Md.) industry& legal 2 industry


July: Unveiled Emergencyand Business ContinuityPlanning ManualA lot of good an emergencyplan does when it goes up insmoke with the agency.

That’s why IA&B’s Emergencyand Business ContinuityPlanning Manual is housedonline. No matter whathappens to the folder or theflash drive that stores the plan,an IA&B member can access abackup copy any where, anytime via the Internet.

Launched in July, the resourceincludes a Web-based inputmodule and a personalizedoutput (read: plan). The endresult outlines the variousscenarios that can disrupt anagency’s operation and thenbreaks down implementationof the plan into timeframes —the first 12-24 hours, day onethrough end of the emergency,and termination of the planand restoration of normaloperations.

According to the Institute forBusiness & Home Safety, aquarter of the small- andmedium-sized businesses thatsuffer an operation-disruptingcrisis never reopen. IA&B’sEmergency and BusinessContinuity Planning Manualimproves members’ odds.

More information: iabgroup.com2 agency operations 2emergency planning

ASSOCIATION AT WORK

[ 16 ]

J U L Y 2 0 0 9


July: Advocated for healthagentsAs the temperatures soared inthe summer of ’09, so didemotions. Health care reformwas the hot topic.

IA&B elevated the issue byincluding nearly weekly AgentHeadlines updates, unveiling anonline Health Care ReformAction Center and promptingmembers to lobby theirlegislators.

In mid-July, association staffescorted several Delaware andPennsylvania members toWashington, D.C. to lobby theirlegislators in person. Theyjoined 1,000 other producers inan event that included over 400meetings – including sessionsbetween DAIAB and IA&B andSens. Carper, Casey, Kaufmanand Specter.

Throughout the summer andinto the fall, IA&B’s battle cryremained constant: Maintainagents’ role in the delivery ofhealth insurance!

More information: iabgroup.com2 industry & legal 2 industry


[ 17 ]

_______________________________

As the temperaturessoared in the summer of

’09, so did emotions. Health care reform was

the hot topic. _______________________________

September: Offered Compliance Pitfalls seminarIt pays to have friends in high places – like thePennsylvania Insurance Department. Especially when discussing fear-in-the-pit-of-the-stomachtopics, like privacy laws, rebates and surplus lines, to name a few.

IA&B of Pennsylvania and the agency joined forces inthe fall to host four seminars across the state. Themembers-only workshops highlighted the 10 mostcommon compliance violations. The Department’s Counsel and Director of Bureau Licensing and Enforcement shared real-world tales, and IA&B staff followed up with tips to remain compliant.

S E P T E M B E R 2 0 0 9


_______________________________

All eyes were on the New York commission-disclosure brouhaha at

the beginning of the year.But by May, the focus

traveled south.

_______________________________

October: Addressedcommission disclosureAll eyes were on the New Yorkcommission-disclosurebrouhaha at the beginning ofthe year. But by May, the focustraveled south to Maryland,where Insurance CommissionerRalph Tyler expressed hisinterest in mandatingdisclosures during a trade-publication interview. Then inJune, Delaware InsuranceCommissioner Karen Weldin

Stewart shared that her teamwas researching the issue.

For Maryland, IA&B formed acoalition of like-minded groupsto advocate for producers’interests. The alliance met withCommissioner Tyler in Octoberin hopes of learning his positionand plans. The IA&B ofMaryland Public AffairsCommittee then met inNovember to discuss strategyfor the impending battle.

The DAIAB Public AffairsCommittee hosted DelawareDepartment of Insurancerepresentatives at an Octoberevent. There, DAIAB sharedmembers’ interest inmaintaining the status quo andreceived favorable feedback.

October: Held inauguralExecutive ManagementConferenceMembers spoke. IA&Bdelivered.

Word on the street (OK, and viamore trusted sources, likeMember Agent Panels andmember surveys) was thatagency principals were in needof management assistance. Soin October IA&B held its firstannual Executive ManagementConference.

IA&B hired MarshBerry to crafta program unique to members’needs for the first conference –a two-day event dedicated toperpetuation planning. Memberagency principals learned howto establish financialbenchmarks, attract youngtalent and cultivate leadershipamong employees, all with theend goal of a successfulsuccession.

ASSOCIATION AT WORK

[ 18 ]

The Pennsylvania Insurance

Department and IA&B

joined forces to bring IA&B

members Compliance

Pitfalls seminars in the

autumn of 2009.

O C T O B E R 2 0 0 9


November: Representedmember in agencytermination caseIt was déjà vu all over againwhen IA&B became involvedin an agency termination casebefore the PennsylvaniaInsurance Department.

After all, in January 2008, theassociation representedanother member agency in atermination case againstEverett Cash Mutual (ECM). Inthat case, the company soughtto remove policies from aterminated agent long beforethe law prescribes.

In the 2009 situation, ECMreduced a member agency’scommission to 0 percentwithout abiding by ACT 143protections. IA&B took on thecase, arguing that theelimination of all commissionis the same as a termination(called “de facto termination”)against the agent and that thecompany owed the agency ACT143 protections, including arehabilitation period.

As this issue of Primary Agentwent to print, IA&B waswaiting for a decision in thecase following Nov. 3 oralargument.

More information: iabgroup.com2 (Pa.) industry & legal 2 legalaffairs


[ 19 ]

G R O U P1844

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Contact Cheryl Oswald at:610-857-9900, ext. 3117 [email protected]

There is no bettertime to become partof The CumberlandInsurance GroupTeam. We are nowappointing agents inCentral Pennsylvania.

Commercial and Personal LinesCompetitive CommissionsExceptional Customer ServiceFinancial StrengthExperienced UnderwritersMarketing Support

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N O V E M B E R 2 0 0 9


ASSOCIATION AT WORK

Approximately 100 agencyprincipals converged inLancaster, Pa., Oct. 27 -28.The draw? IA&B’s inauguralExecutive ManagementConference featuringMarshBerry and focusingon agency perpetuation.

Positioning and planningfor the futureExecutive Management Conference tackles agency perpetuation


[ 21 ]


This event was created in response to memberfeedback,” said Kathleen Glattly, IA&B ServiceGroup Chairwoman. “By and large, memberagency owners are baby boomers facingchallenges related to retirement.”

The challenges are many: establishing financialbenchmarks, attracting young talent and developingleadership among employees, to name a few.

“These agency owners have built a career on doing theright things and now need to carry thatthrough to a strong perpetuation plan,”said Glattly, “but many of them don’t knowwhere to begin.”

Enter MarshBerry.

IA&B contracted with the management-,merger- and acquisition-consulting firm todevelop and deliver a two-day, micro-levelcourse with the goal of positioning agencyowners to create and implementsuccessful perpetuation plans.

The breakdownThe conference began on Tuesdayafternoon with a session aimed atproviding attendees with a foundation forplanning. MarshBerry experts shared aforecast for the changing industry, anupdate on the merger and acquisitionenvironment, growth fundamentals and

T“

CONFERENCESPONSORS

All Risks, Ltd

Berkley Mid-Atlantic Group

Cumberland Insurance Group

Frederick Mutual

Harleysville Insurance

Mutual Benefit

Ohio Casualty

Penn National

Progressive

The Motorists Group

Introducing theExecutive Management ConferenceIA&B’s Executive Management Conference is a new forumdesigned specifically for agency owners to obtain guidanceand support on executive-level management topics. Theannual event breaks down complex issues into manageablecomponents that principals can implement at their agencies.


real-world examples ofsuccessful agencyperpetuation.

Conference participantsdelved into the meat of theprogram on Wednesday.The first session revealedthe makings of a uniqueand lucrative perpetuationplan, while the secondfocused on plan execution.From there, attendees splitinto breakouts to learnabout financial modeling,

estate planning andperpetuation funding.

“Our first ExecutiveManagement Conferencewas a resounding success,”said Glattly. “Participantswere thrilled to walk awaywith actual resources andstrategies to develop theirperpetuation plans, and we,as a Board, are ecstatic thatwe could make that happenfor our members.”

ASSOCIATION AT WORK

Annual MeetingPrior to the Executive Management

Conference, the IA&B Board of

Directors held its 2009 Annual Meeting

— an opportunity to showcase the

year’s achievements, recognize those

who have made those

accomplishments possible and position

the association for 2010. (For more on

the association’s recent endeavors, turn

to page 12.)

The Annual Meeting also marks a

change in leadership. A board listing

and photos are available on pages

26-27. It is thanks to the dedication of

and direction from these volunteers

that IA&B can proactively assess

members’ needs and provide

resources, such as the Executive

Management Conference, to

meet them.

[ 22 ]


IA&B Financial Reports

IA&B remains in goodfinancial health with strongreserves; continues toprovide and expandprograms, products andservices to meet members’needs, and is poised forfuture growth. However,due in large part toinvestment losses, theorganization experienced acombined $425 thousanddecrease in net assetsduring fiscal year 2008/09.

The accountants’ review forthe fiscal year, whichended March 31, is on fileat IA&B headquarters.These statements are asummary of that report.

Combined member equitydecreased $1.110 millionto $5.429 million, on$8.351 million of totalassets and $2.922 millionof total liabilities.

Combined net operatingloss after depreciation andtaxes was $(246) thousandon total revenues of$5.813 million and totalexpenses of $6.059million. Additional lossesincurred related to pensionaccounting changes andinvestment loss, resultingin a combined change in net assets of $(1.110) million.

[ 23 ]


ASSOCIATION AT WORK

Pennsylvania InsuranceCommissioner Ario paidhis second visit to IA&Bwithin two years when hespoke at the Board ofDirectors meeting. Theexecutive committeemember for the NationalAssociation of InsuranceCommissioners discussedtopics of national concern:health care reform, stateversus federal regulationand the role of the agent.

Straight talkCommissioner Ario touches on hot topics with IA&B Board

Above, Left to right: Ron Gallagher, DeputyInsurance Commissioner; Buc Cawley, IA&B Service GroupImmediate Past Chairman; Joel Ario, Commissioner;Kathleen Glattly, IA&B Service Group Chairwoman

Left: Pennsylvania InsuranceCommissioner Joel Ario talkshealth care, federal regulation andmore with the IA&B Board.

G12356_24-29.qxp:December09 11/16/09 12:16 PM Page 24

[ 25 ]


Health careArio opened his presentation by speaking candidly about theneed for health care reform, pointing out that the U.S. system istwice as expensive as any other nation’s.

“In the early part of this decade, [health care] costs startedrising to double digit rates again,” he said. “If you look at itsince 2000, the health care sector has roughly doubled. It nowtakes almost 16 percent GDP. If we don’t do something aboutcost, it’ll be 20, 25 or 30. At some point the system is going tocollapse on itself.”

The commissioner expressed how dire the situation is and whyit is vital current talks lead to reform at the federal level. Hethen shared a positive – the common ground that the presidentand both sides of Congress can agree upon: elimination of pre-existing condition exclusions and of health-status rating.

Regulation“I think the prospects of federal regulation are much less todaythan they were before the last election,” said Ario, who noted aparadigm shift from efficiency to effectiveness in Washington, D.C.

The commissioner also discussed modernization of the systemand called for uniformity.

“There is no reason why every state has to have a separateprocess to do non-resident license approvals,” he continued,then touting the National Insurance Producer Registry. “Thesystem ought to be, if you have a resident license, you’re ingood standing. Then you can go get a license in any other statethrough a one-stop-shopping, electronic clearinghouse.”

Agents’ roleNext, Ario discussed the Internet and its role in the insurancemarketplace, admitting the associated challenges whileencouraging producers to adapt.

“You have to know what’s out there and show your valueadded on top of that,” he said. Then the commissioner drew acomparison to Internet stock-trading companies, whichcustomers initially flocked to before recognizing their own lackof expertise and returning to their brokers.

Finally, Ario spoke of commission disclosures and hiscolleagues’ “war path[s].” He said that his opinion of disclosurerequirements has shifted through the years as he learned moreabout the issue.

“[Commission] is a piece of the product,” he said, explainingthat disclosing advertising fees and executive salaries is asfounded as sharing commissions. “I’m not a fan of new rulesabout commissions.”

Commissioner Ario followed his address with a question-and-answer session. Board members shared independent agents’concerns on policing Internet sales, the potential repeal ofMcCarran-Ferguson and commissions relative to companyinsolvencies.

____________________________

“If we don’t do something about

cost, … the [health care] system

is going to collapse on itself.”

____________________________

____________________________

“I’m not a fan of new rules

about commissions.”

____________________________


Henry “Butch” Bradley Jr.The Pennoyer Group Inc.

Crofton, Md.

Timothy P. BurrisSausman Insurance Agency

Thompsontown, Pa.

John T. “Chip” Colwell, Jr., CICRossbacher Insurance Service

Corry, Pa.

M. Scott Clemens, CIC, CPCU, CLU, ChFCJohn T. Fretz Insurance Agency

Souderton, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Francis Hall Insurance & Risk Management Services West Chester, Pa.

G. Gregg Gunn, CICGunn-Mowery LLC

Lemoyne, Pa.

Kathleen M. Glattly, CPCU, ChFC, CLU, AIMChair of Board

DGK Insurance & Financial ServicesFactoryville, Pa.

David Rosenkilde, CICVice Chair of the Board

ABCO/ICS Insurance Services Inc.Reisterstown, Md.

Robert J. “Buc” Cawley, AAIImmediate Past Chair of the Board

Robert J. Cawley AgencyWexford, Pa.

Norman F. Basso, CPCUE.K. McConkey & Co. Inc.

York, Pa.

Vincent D. “Chip” Boylan, Jr., CPCUWillis of Maryland Inc.

Rockville, Md.

2009-2010IA&B Leadership

IA&B Service Group ChairKathleen M. Glattly, CPCU, ChFC, CLU, AIM

DGK Insurance & Financial ServicesFactoryville, Pa.

IA&B Service Group Vice ChairDavid Rosenkilde, CIC

ABCO/ICS Insurance Services Inc.Reisterstown, Md.

IA&B Service GroupImmediate Past Chair

Robert J. “Buc” Cawley, AAIRobert J. Cawley Agency

Wexford, Pa.

Delaware Association of IA&B ChairJohn S. Yasik, CIC

Poland & Sullivan Insurance Inc.Newark, Del.

Delaware Association of IA&B Vice Chair

Diana Hornung-Momot, ACSRThomas J. Hornung & Associates

Wilmington, Del.

IA&B of Maryland ChairLinda A. McCann, AAI, CPCU, CPIW

Bay Shore Insurance Inc.Salisbury, Md.

IA&B of Maryland Vice ChairKing W. “Kip” White, LUTCF

American InsuranceFallston, Md.

IA&B of Pennsylvania ChairNorman F. Basso, CPCU

E.K. McConkey & Co. Inc.York, Pa.

IA&B of Pennsylvania Vice ChairRobert B. Hall,

CPCU, CLU, ChFC, ARM, ARM-PFrancis Hall Insurance &

Risk Management ServicesWest Chester, Pa.

IIABA National DirectorWilliam D. Schneider, CPCU, ARM

Henderson Brothers Inc.Pittsburgh, Pa.

IIABA National DirectorJames M. Watkins

Pfister Insurance Inc.Dover, Del.

PIA National DirectorSusan A. Sallada, CIC

Universal Service Agency Inc.Ft. Washington, Pa.


David B. Wasson, Sr., CICWasson Insurance Agency Inc.

State College, Pa.

James M. WatkinsPfister Insurance Inc.

Dover, Del.

John S. Yasik, CICPoland & Sullivan Insurance Inc.

Newark, Del.

2009 – 2010 Board of Directors

Linda A. McCann, AAI, CPCU, CPIWBay Shore Insurance, Inc.

Salisbury, Md.

Michael F. McGroarty, Sr.McGroarty & Bradburn Insurance, Inc.

Pittsburgh, Pa.

Susan A. Sallada, CICUniversal Service Agency Inc.

Ft. Washington, Pa.

William D. Schneider, CPCU, ARMHenderson Brothers Inc.

Pittsburgh, Pa.

Robert A. Walbeck, CICR. E. Walbeck Agency Inc.

Homer City, Pa.

King W. “Kip” White, LUTCFAmerican Insurance

Fallston, Md.

Diana M. Hornung-Momot, ACSRThomas J. Hornung & Associates

Wilmington, Del.

Scott C. Rogers, CPIA The Glatfelter Agency

York, Pa.


Platinum Profile

“Travelers values the 13,000agents around the country whosell our policies. We are alldedicated to helping consumersfind the right insurance to meettheir specific needs. Travelersappreciates the continuedpartnership and commitment toproviding the highest level ofcustomer service.”

– Kirk Larsen, Regional President

Travelers is one of the largestproviders of property casualtyinsurance products in the United

States. Our diverse portfolio ofofferings includes a wide range ofcoverages for both personal andcommercial customers. A Fortune 100company, Travelers has 33,000employees and 2008 revenues ofapproximately $24 billion.

In business for more than 140 years,Travelers has been an industry leaderfrom the start. The company wrote thefirst auto policy in 1897 and hascontinued to lead the industry in thedevelopment of innovative products

and services. From identity theftcoverage to wedding insurance, wepride ourselves on offering productsthat are in-synch with our customers’evolving risks. We also offer discountsfor growing sub-segments like hybridcar owners and coverageenhancements for commercialproperties to upgrade to greenbuilding materials and systemsfollowing a covered loss.

While delivering all the capabilities of anational carrier, Travelers possesses aunique local expertise that enables usto adapt our innovative products,services and technology to specificlocal market needs. We think nationallyand act locally. For example, through astate-dedicated product and pricingteam, we can take our products andgenerate rates specific to the uniquecharacteristics of a state, a county, acity and even a zip code. Our teamcomprises underwriting, claims andservice employees who work throughour six offices in Maryland, Delawareand Pennsylvania, and are all familiarwith the local needs and wants of ouragents and insureds.

We are committed to supporting ourmore than 13,000 independent agentsacross the United States in many ways.Agents who partner with Travelershave access to our marketing programand tools, accessible via state-of-the-artWeb sites. Travelers also offers a widerange of customer acquisitionprograms, including print ads, publicrelations tools and direct mail pieces.Represented by the red umbrella,Travelers is one of the most recognizedinsurance brands in the country.Travelers understands that life andbusiness are inherently dynamic andthat the best way to serve customers isto deliver insurance in-synch withevolving risks. For more informationon being in-synch, visitwww.travelers.com.

**A.M. Best’s rating of A+ applies to certaininsurance subsidiaries of Travelers that aremembers of Travelers Insurance Companiespool; other subsidiaries are included in anotherrating pool or are separately rated. For a listingof companies rated by A.M. Best and otherrating services visit www.travelers.com. Ratingslisted herein are as of October 20, 2009, areused with permission, and are subject tochanges by the rating services. For the latestrating, access www.ambest.com.

Insurance Agents & Brokers proudly recognizes The Travelers Companies, Inc. as one of its Platinum Partners.

IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

FEATURED PARTNERThe Travelers Companies, Inc.

CHIEF EXECUTIVE OFFICERJay Fishman, Chairman & CEO

COMPANY LOCATIONSEXECUTIVE OFFICES:

New York, Hartford, Conn., Saint Paul, Minn. LOCAL OFFICES:

Pittsburgh, Pa., Philadelphia, Pa.,Blue Bell, Pa., Wyomissing, Pa.,

Mechanicsburg, Pa. and Hunt Valley, Md.

A.M. BEST RATINGA+ (superior)**


WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at (800) 998-9644,

(717) 795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agency

system and Insurance Agents & Brokers.Thank you for your continued sponsorship.

PLATINUM LEVELBerkley Mid-Atlantic GroupErie Insurance GroupHarleysville InsuranceInsurance Agents & BrokersService Group IncMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupPenn National InsuranceSelective Swiss ReThe Main Street America GroupTravelersUtica National Insurance Group

GOLD LEVELOhio CasualtyProgressive

SILVER LEVELAegis Security Insurance CoAmerican Mining Insurance CoCumberland Insurance GroupDonegal Insurance GroupFrederick Mutual Insurance CoHarford Mutual Insurance CoJuniata Mutual Insurance CoMMG Insurance CompanyPrivate Client GroupPSBA Insurance TrustThe Motorists Insurance GroupWestfield InsuranceZenith Insurance

BRONZE LEVELAAA Insurance

Agency Insurance Company

Allied Insurance

Briar Creek Mutual Insurance Company

Builders Insurance Group

Capitol Insurance Company

Chubb Group of Insurance Companies

Companion Property & Casualty Group

Countryway Insurance Company

Encompass Insurance

Foremost Insurance Group

Friends Cove Mutual Ins Company

Goodville Mutual Casualty Company

Grange Insurance Companies

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Mutual Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn Millers Insurance Company

Penn Prime Municipal Insurance

PMSLIC Insurance Company

Reamstown Mutual Insurance Company

Rhoads & Sinon LLP

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Mutual Service Office Inc

The Philadelphia Insurance Companies

Tuscarora Wayne Mutual Insurance Company

UPAC Insurance Finance

Primary Agent December 2009


BILL MURRAY

Bill Murray is IT risk, security &

compliance manager for

Westfield Insurance, which runs

a blog where the major part of

this article was originally

published. Bill can be reached at

[email protected].

For more information

about ACT, visit

www.independentagent.com/act

or contact Jeff Yates, ACT

Executive Director at

[email protected]. This article

reflects the views of the author

and should not be construed as

an official statement by ACT.

Primary Agent | December 2009 TechnologyU P D A T E

[ 30 ]

More and more of us areusing our computers while weare on trips and are makinguse of the wireless hotspotsthat are popping upeverywhere. I want to discusssome risks associated withconnectivity in theseenvironments and offer somesimple things that you can doto reduce these risks.

Avoid imposterhotspotsMost hotels and wirelesshotspots offer a number ofwireless access points toconnect to. Each one willappear separately in yourwireless network list. Youshould check with theestablishment you are at as towhich ones are “official” andwhich ones are not. Manytimes scammers set up an

access point named somethingsimilar to those provided bythe establishment. Theserogue access points can be setup to perform a classic man-in-the-middle attack known asan “evil twin” to forward allyour traffic to a real accesspoint and simply captureeverything you are doingonline. Another scam is tooffer you access at anadditional fee.

INFORMATION SECURITY CONCERNS IN HOTELS AND HOTSPOTS


[ 31 ]

Watch for peeping Toms When entering your ID and password in public places, takeextra care to watch for people looking over your shoulder.“Shoulder surfing” it is sometimes called. It does happen.

Prefer wiresWireless connectivity can be implemented securely, but if youhave a choice between a wireless access point and pluggingyour laptop into a network jack, choose the network jack.

Set up shieldsIt is important to have your personal firewall turned on andconfigured with a restrictive rule set when attached to non-trusted networks. What I mean by a setting a restrictive rule issimply configuring your firewall to allow only software youtrust to access the Internet and to block all other software andnetwork traffic. Anti-virus software should also be enabled,have real-time protections turned on and be configured todownload anti-virus signature updates automatically. These are relatively simple things to do.

Jump through hoopsIf you are doing work for your company, and it has VPN(Virtual Private Network) capabilities, you may be saferconnecting to the Internet this way. It may sound strange –connecting to the Internet to connect to your company toconnect back to the Internet – but your company hasprotections in place to block malicious traffic, attackers andWeb sites. If you establish an encrypted VPN tunnel to themand surf through their network to the Internet, you are addinga few controls that can protect you.

Find a hiding spotKeep your laptop powered off when you leave it in your hotel room. Lock it in the safe if it will fit. If you just lock thescreen (control alt delete), there are vulnerabilities that could be exploited while you are not there to gain access to your software and data.

Avoid neglect Don’t leave your laptop sitting all alone when you get up andget another coffee or cheeseburger. It may not be there whenyou get back to your seat. Same goes for USB drives. It is prettyeasy to swipe them without notice.

Create codesEncrypt your hard drive and USB drives, or at least sensitivedata or subdirectories on them. If the unthinkable happens andyour laptop is lost or stolen, let the most significant thing thethief gets be the laptop. It may sound like a hassle, but losing$1,000 on a laptop is a whole lot better than a case of identitytheft for you and any other people whose information youhave stored. Same goes for information about where you live,your children, relationships you are in, etc. Any of thisinformation could be used against people you care about.

Westfield regularly publishes a blog containing practicalsecurity tips for agents and other industry participants atwww.infosec.westfieldinsurance.com. See also the “Security & Privacy” section of the ACT Web site atwww.independentagent.com for additional information on agency-security issues.

Make Our Experience,Your Advantage.

The Harford Mutual Insurance Companies165 years experience in Commercial Lines

Join our team today. Contact us to learn more:

www.harfordmutual.com 800-638-3669

The Harford Mutual Insurance Companies200 North Main Street Bel Air, Maryland 21014-3544


Commonwealth Insurance Co . . . . . . . . . . . . . .3

Cumberland Insurance Group . . . . . . . . . . . . .19

EMC Insurance Companies . . . . . . . . . . . . . . .IFC

General Casualty . . . . . . . . . . . . . . . . . . . . . . . . .1

Harford Mutual Insurance Co . . . . . . . . . . . . . .31

IA&B Series Ads . . . . . . . . . . . . . . . . . . . . . . . .IBC

IA&B Partners Program . . . . . . . . . . . . . . . . . . .29

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

Millers Mutual Group . . . . . . . . . . . . . . . . . . . .11

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .32

Preferred Property Program . . . . . . . . . . . . . . .32

Ad Index

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care of the rest.

[ 32 ]



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Documents

Primary Agent - December 2009 - MD Edition