SC Agent & Broker magazine, Summer 2011

Annual Convention Preview:

Event Recaps: Spring Conference Young Agents Scholarship Golf

Don’t Get Blindsided by a Property Lease

Protecting Your Agency From Cybercrime

Where are Potential E&O Claims Lurking in Your Agency?

SUMMER 2011

Agent & Broker

Spooky It’s a

Market 113th Annual Convention

Oct. 30 – Nov. 1

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Summer 2011 • South Carolina Agent & Broker 3

South Carolina Agent & Broker is the official magazine of the Independent Insurance Agents and Brokers of South Carolina and is published four times annually. IIABSC does not necessarily endorse any of the companies advertising in this publication or the views of its writers.

Articles and information published in this magazine may not be reproduced without written consent of the IIABSC. South Caroli-na Agent & Broker is not responsible for unsolicited manuscripts, art or photography. The publisher cannot assume responsibility for claims made by advertisers and is not responsible for the opinions expressed by contributing authors.

For more information on advertising,Contact Jim Aitkins

Blue Water Publishers22727 - 161st Avenue SE

Monroe, WA 98272360-805-6474 fax: [email protected]

Agent & Broker

IIABSC Staff

G. Frank Sheppard, AAI, CAEPresidentext. 23, [email protected]

Rebecca H. McCormack, CPCU, CIC, AAI,CPIWVice Presidentext. 14, [email protected]

Anita J. TrevinoDirector of Communicationsext. 29, [email protected]

Beth ChastieDirector of Administration & Financeext. 17, [email protected]

Laura CornellDirector of Insurance Programsext. 22, [email protected]

Elaine MikellMeeting Coordinatorext. 16, [email protected]

Mary A. EllisProfessional Development Administratorext. 12, [email protected]

Jeanette BlossEducation Coordinatorext. 11, [email protected]

Pat FetnerReceptionistext. 10, [email protected]

Lee RuefDirector of State Government [email protected]

Independent Insurance Agents & Brokers of South Carolina

PO Box 210008, Columbia, SC 29221800 Gracern Road, Columbia, SC 29210

803-731-9460 803-772-6425 (fax)e-mail: [email protected]

Advertiser Index

Message from the Chairman of the Board 6Message from the National Director 8

IIABSC 113th Annual Convention - It’s a Spooky Market Out There! 11A Message from the Convention Chairman, Jon Jensen, AAI, AIP 12

Convention Keynote Speaker, Ann Kulze, MD - Healthy Living 13 Elly’s Travel Adventures 15

Where Are Potential E&O Claims Lurking in Your Agency? 16Combat Cybercrime and Protect Your Agency with Simple Security Steps 22

Spring Conference Recap 28Don’t Get Blindsided by a Property Lease 32

Benefits of Living the Trusted Choice® Brand 37Trusted Choice® - We’ve Moved 38

Young Agents Golf Recap 41IIABSC Education Calendar 42

2011 Board of Directors and Executive Committee 44

Palmetto Partners Program 46

Assure Alliance 19Bankers Insurance Group 35Builders Mutual Insurance 29Burns & Wilcox 33Genesee General 34GUARD Insurance Group 29Hanover Excess & Surplus 10InsurBanc 27JM Wilson 9Jackson Sumner & Associates 2Johnson & Johnson 24, 25M. J. Kelly of South Carolina 43Military Benefits Association 7Millennium Insurance Group 23

Montgomery Insurance 43NetComp 44Preferred Specialty 47Prime Rate Premium Finance 18ProVision Underwriters 43RPS Rollins 3Summit Marketing Services 26TAPCO Underwriters 5The National Security Group 40The Seibels Bruce Group 36UPC Insurance 48Universal North America 17Utica National Insurance Group 21

SUMMER 2011

Contents

4 South Carolina Agent & Broker • Summer 2011

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y Dad was a small business owner and appreciated competition. He recognized the power of fellowship and collaboration for the greater good of his industry, mechanical contracting. He would be incredibly proud of my affiliation with Independent Agents and Brokers of South Carolina. I can picture him sitting down to discuss with me the many activities of our association over a cup of coffee (or more realistically, a glass of scotch). Growing up, my parents taught my brother, sister and me the importance of education, trust, honesty and community. I couldn’t be more thankful. Every single day I reflect on what they taught me, and I do my best to show that through my work with fellow agents across the state.

Excellence through education is important when servicing our customers. Independent Agents and Brokers of South Carolina has been recognized repeatedly on a national level for excellence in providing quality programs for agency members. Our industry is constantly changing and often misunderstood, which is why it is vital that agents have the opportunity to familiarize themselves with the industry and its many products. In addition, our association continues to add online opportunities as an alternative to conventional classes. The task is far too great for individual agencies, but thanks to our Education Department, all members have accessibility to a wide range of products.

The association’s annual visit to Washington, D.C. is a perfect example of working together for the betterment of the industry. Nearly a thousand agents or more from

around the country meet annually in our nation’s capital to discuss the position of the Big “I” in regards to current legislation. This year the agenda included extending the Flood Program, the modernization of agent non-residence licensing and the exclusion of agent compensation from the Medical Loss Ratios formulas. You can read more in Jon Jensen’s State Director column, but our Congressmen supported all agent concerns.

Thanks in great part to Tom Bates and his wonderful committee, our Relay for Life project has exceeded all expectations. Agents and agencies have embraced their local events by raising additional money, but more importantly by attending the events and promoting the Trusted Choice® brand. I am proud to say that the agents of South Carolina are truly living the brand both in the office and in their communities.

Jay Taylor and his committee are busy putting the finishing touches on the Young Agents Conference that will be held in Charleston at the end of this month. The event will further development of the future leaders of our industry in every way through education by training them on E&O risk management and using social media appropriately as well as by providing opportunity to foster their professional and interpersonal relationships with their peers in the industry.

Each of these association opportunities reminds me just why I miss my Dad. If it weren’t for him and his desire to make his own industry better, I wouldn’t be who I am today, and I wouldn’t take such great pride in all that we do here.

M

IIABSC Chairman of the BoardKathy D. McKay, CIC, CPIW

I Miss My Dad

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ne of the great events each year for our association is the IIABA National Legislative Conference in Washington, D.C. Nearly a thousand agents from every state gather collectively to meet with their respective state congressional delegations and discuss federal issues that are important to independent insurance agents.

While IIABSC organizes an official delegation for this conference, the event is open to any Big “I” member that would like to participate. Contact Frank Sheppard at IIABSC if you are interested in learning more about future National Legislative Conferences.

Nine IIABSC members represented South Carolina at this year’s event back in April, and we visited with every House and Senate office from our state – including personal meetings with all six SC Congressmen. The schedule is fast-paced, eight Capitol Hill visits packed into one day. But the exchange is invaluable for Senators and Congressmen who hear directly from their constituents how legislation will affect our business back home.

This year, we also had the unique situation of meeting with four new South Carolina representatives – each of whom took time to speak with us personally.

Our national association has one of the most respected federal affairs offices in Washington. On a day-to-day basis, Big “I” members can be extremely confident that their business interests are being advocated by our national lobbying team. That effectiveness is amplified when you add the grassroots contact of personal relationships that IIABSC members have with the South Carolina Congressional delegation.

This year, we discussed several key issues with legislators including:

The Big “I” is on Top of Federal Legislative Issues

National DirectorJon A. Jensen, AAI, AIP

OFLOOD INSURANCE EXTENSION: The Big “I” No. 1 priority on flood insurance is for Congress to take action and pass a long-term extension. As a part of any reauthorization, The Big “I” supports reforming the program for its long-term solvency by reducing subsidies, dealing with repetitive loss properties and making the program more attractive for consumers through the inclusion of optional business interruption insurance and additional living expenses coverage. The Big “I” strongly supports the National Flood Insurance Reform Act of 2011 that would make these needed reforms and extend the program on a long-term basis.

INSURANCE REGULATORY REFORM: The Big “I” believes that the stability exhibited by the insurance industry during the financial markets crisis of the past several years has demonstrated the underlying strength of state insurance regulation. While Congress enacted sweeping reforms for most of the financial services industry in the form of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank), it wisely left day-to-day regulation of the insurance market at the state level. Dodd-Frank contains some provisions that will affect insurance, and The Big “I” is committed to ensuring that these new provisions are properly implemented so as not to exceed congressional intent. The Big “I” will be particularly vigilant to ensure that the newly created Federal Insurance Office (FIO), an informational office within the Treasury Department with no regulatory authority, does not experience “mission creep” and go beyond its very limited mandate. Finally, while The Big “I” supports a modernized state regulatory system, it strongly opposes federal insurance regulation either via the so-called optional federal charter (OFC) or mandatory federal regulation.


AGENT-LICENSING REFORM IIABA POSITION: The Big “I” strongly supports legislation to reform the nonresident licensing of agents and brokers to help streamline the licensing process and allow them to better serve the insurance consumer. The National Association of Registered Agents and Brokers Reform Act (NARAB II) would improve the insurance market and would allow agents and brokers operating on a multi-state level to avoid duplicative licensing requirements while maintaining important consumer protections.

HEALTH-CARE REFORM IIABA POSITION: The Patient Protection and Affordable Care Act (PPACA) has created a two-fold problem for small business members of The Big “I”: as consumers of health care, we are facing more government intrusion and less competition, and as health insurance advisors we are experiencing dramatically diminished compensation. Over the last year, the Big “I” has worked with Congress and the Obama administration on implementation of the various provisions of the law important to agents, brokers and our consumers. In particular, The Big “I” strongly opposes the recently implemented Medical Loss Ratios (MLRs) regulations, since they have created severe downward pressure on agent commissions, which will cost small businesses jobs and lead to less service for consumers in a new and more complex health-care market. As a result, the Big “I” strongly supports H.R. 1206, the Access to Professional Health Insurance Advisors Act, which would exempt agent commissions from the MLR calculation.

As you can see, there are some very important federal issues affecting independent insurance agents and Big “I” members can be confident that their national federal affairs team will be strongly advocating on their behalf – each and every day. But also remember that you are a vital part of the process as a grassroots contact back here in South Carolina.

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

ENTHUSIASMIT’S CONTAGIOUS


Spooky

SpookyCharleston has always been one of our best conference spots, but this year’s convention promises to be even more special as we enjoy one of our nation’s oldest cities during Halloween, from Oct. 30 – Nov. 1 at the Charleston Place Hotel. You won’t want to miss it.

“It’s a Spooky Market Out There” is our theme, and we’re working to help your agency stay resilient in these scary economic times with an entire day set aside for networking with company reps and fellow agents in our Halloween-themed exhibit hall as well as CE sessions on disaster recovery, media training, ethics and boosting the local online presence of member agencies.

We’ve made a few changes to the format this year. In keeping with our theme and the season, we added a ghost and graveyard walking tour of Magnolia Cemetery (the city’s oldest graveyard) on Sunday night after the opening reception, which will be held offsite at the SC Aquarium. Our golf committee has been beefing up our Monday afternoon golf tournament, starting a little earlier in the day and ending with a short awards ceremony and reception. To keep Monday from being such a long day we shortened the general session by moving the keynote to Tuesday morning and going straight to the breakouts after a welcome message.

Speaking of the keynote, our featured speaker this year will be Charleston’s Dr. Ann Kulze, M.D. A regular contributor to ETV Radio’s Your Day, you may know her simply as Dr. Ann. Her motto is “Wellness Delivered, Pure and Simple” and that’s what you can expect from her session during Tuesday’s breakfast. The demand for corporate wellness programs keep growing as health-care and costs and group plans premiums continue to skyrocket. While most of our small agencies don’t think they can afford to implement wellness plans, Dr. Ann provides a blueprint for a lifetime of healthy eating in “Eat Right for Life!” than can be a great start to establishing a wellness culture throughout your agency. Better still, it’s a session that you can bring your spouse to.

We have definitely kept the spouses in mind while planning this year’s convention. In addition to Sunday night’s activities and the golf

tournament, there two Monday midday spouses programs that include lunch. The first is a cooking demonstration with a local chef where participants take home the recipes, and the second is a historical walking tour that will examine Charleston’s colorful past and rich history. This tour will include cobblestone streets, antebellum mansions and private gardens, ending with lunch at a local restaurant.

This year’s convention is sure to be a great time full of great takeaways you can start implementing as soon as you get back. Registration has already opened, find online registration and printable forms on our website, www.iiabsc.com. Links are on the home page, and the “Annual Convention” event page can be found under the “Events” Menu. Once your registration is confirmed, a hotel reservation form will be sent to you. You cannot register at the Charleston Place Hotel under our special room rate of $209/ night without it.

Hope to see you there!

Spooky

HIGHLIGHTS:

Networking & Exhibit Hall: Sunday provides a day of networking with company reps, vendors and fellow agents in our Halloween-themed exhibit hall. Our welcome reception is offsite at the SC Aquarium, followed by an optional walking ghost and graveyard tour of Magnolia Cemetery.

Education opportunities: CE sessions include testimonials on the importance of disaster recovery, media training with SC Insurance News Service’s Russ Dubinsky and an introduction to the Consumer Agent Portal (CAP), an initiative by our national association to boost the local online presence of Trusted Choice® agents.

Local sights & free time: There is plenty of free time to enjoy the wonderful city of Charleston, activities in addition to those already mentioned include a cooking demo and lunch with a local chef, walking history tour and an improved golf tournament at Patriot’s Point Links.

Keynote: Charleston’s Dr. Ann Kulze, MD will teach you over breakfast Tuesday morning how to keep your body resilient by translating health science into a simple, fun and straightforward presentation. You will be entertained and come away with everything needed to “Eat Right for Life.”

113th Annual Convention ChairmanJon Jensen, AAI, AIP


Spooky It’s a

Market 113th Annual Convention

Oct. 30 – Nov. 1

Spooky

Spooky

It is my pleasure to share with you tips for getting healthy that can save you money too. Frankly, there has never been a more opportune time to take charge of your health because three of its greatest fringe benefits include boosting productivity, reducing stress levels and reducing health-care costs – all particularly relevant and valuable in these tough economic times. My best advice follows:

• Get fit. Fitness is free if you want it to be and regular physical activity remains the single most powerful means to protect broad spectrum health. It is the closest thing we have to the “magic bullet” on the disease prevention and vitality front. Brisk walking is cheap and perhaps one of the most beneficial types of physical activity.

• Make water your beverage of choice. Water has zero calories, costs just a fraction of a cent from the tap (most bottle waters are) and is the healthiest beverage for the human body. Sodas, fruit drinks, sports drinks, etc. cost money, have zero nutritionally redeeming value and predispose to weight gain, tooth decay, Type II diabetes and metabolic syndrome.

By Dr. Ann Kulze, M.D.IIABSC Annual Convention Keynote speaker

Healthy Living: Get Healthy, $ave Money



• Control your portions! This can certainly trim your grocery bill and your restaurant bill. Plus recent scientific evidence finds that consistently controlling portions is the fastest direct route to weight loss.

• Prepare your own food. It is cheaper, often quicker and healthier. People who dine out eat more calories, saturated fat, sugar and sodium, and they spend more money than those who dine in. For a family of four, eating in even once more a week can save a hundred dollars or more a month.

• Buy locally grown produce. It is better for the environment, fresher, tastier, higher in nutrients and cheaper. Recognize that 2/3 of produce are cheaper in fresh versus frozen form.

• Buy produce in bulk. You can save up to 40 percent by buying large bags of apples or oranges versus purchasing them individually.

• Buy staples in volume. There is always better value in volume. Examples: A large container of whole oats has 30 servings and costs the same as 10 single-serving packets. You can get 12 servings of black beans per bag in dry form vs. three servings in the can for the same price.

• Use non-fat dry milk in baking and cooking. It is dirt cheap and has a long shelf-life.

• Fortunately some of the healthiest foods remain the cheapest. Examples: Bags of dried beans have megawatt nutritional power, as they are loaded with fiber, B vitamins, minerals, antioxidants and healthy vegetable protein, and they go for about 12 cents per serving. Large bags of brown rice are a delicious and super-nutritious whole grain. You can get a serving for 15 cents.

• Go for the specials. Stock up on frozen veggies (no sauces of course) when on sale.

• Avoid “convenience” foods. You will always pay more for anything already washed, sliced, or ready-made. Do it yourself to save.

• Make a healthy dinner and take leftovers for your lunch the next day.

• Have a meatless meal once or twice a week. Beans and rice are an awesome, healthy duo. Veggie stir-fry over brown rice is another one of my family’s favorites.

• Don’t shop hungry and leave the kids at home. You will buy less and eliminate the “whine factor.” Go for the

store’s generic brands of staples. Most palates can’t tell a difference, and they are cheaper.

• Some of the healthiest veggies are often the cheapest, including: cabbage, dark leafy greens, carrots, sweet potatoes and Brussels sprouts.

• High-quality dark chocolate is a truly healthy dessert. You can buy dark-chocolate baking chips (ex: Ghirardelli 60% cacao) and get twice as much for your money vs. buying in a bar or individually wrapped pieces.

• Make your own salad dressing. Homemade extra-virgin olive-oil vinaigrette takes three minutes to make, is 100 percent healthy and tastes better than the bottled type.

• Lastly, don’t consider spending your money to purchase bad health. Sodas and standard junk foods like donuts, cookies, pastries, etc. have zero health value. To the contrary, they can lead to weight gain, Type II diabetes, heart disease and a host of other costly conditions. Learn to place value in food on the nutrients they can provide versus the calories. Most of us are in need of nutrients, not calories. An apple and a pastry cost about the same in the grocery store. Apples are sweet and delicious and provide more than 150 health-boosting agents. The pastry provides nothing of value and is actually filled with things that have been associated with poor health, including excess sugar, refined flour and unhealthy fats.

Come to the IIABSC Annual Convention to be held at the Charleston Place Hotel Oct. 30 – Nov. 1 and hear Dr. Ann’s Tuesday-morning presentation, Eat Right For Life.

With electrifying energy and unrivaled credibility, Dr. Ann brilliantly transforms the compelling body of new science as it relates to diet and health into a program that is simple, fun, delicious and completely straightforward. The audience will be motivated and entertained, but most importantly, walk away with take-action-today inspiration and everything they need to know to “eat right” for a long, active and vital life.

Dr. Ann has been featured in a number of national media outlets including Oprah and Friends Radio, The Dr. Oz Show, Time Magazine, WebMD, Cosmopolitan and Prevention, among many others. For more background on Dr. Ann please visit www.DrAnnwellness.com.

Elly’s Travel AdventuresElly Pachy Derm, the Golden Elephant, is the award given at the IIABSC annual convention to exhibitors judged to have the “best booth” according to the theme for the year. She resides with the winners the entire year and tours the state, visiting with IIABSC member agents. From her blog:

Mmmm, an elephant bed never felt so good! Here I am all tucked in for the

night after celebrating late into the night with Mark Brandt and Mary Ellen Lackey of the SC Grange Team. Tomor-row I’m headed to Grange World Head-

quarters in Columbus, Ohio to obtain a little debriefing before beginning my

field work in South Carolina.

Read full blog with photos at www.iiabsc.com/elly

2010 Winner:October 26, 2010, 1:12 am

Grange special visitor day! Kathy Cunningham of the Grange Life

Department tagged along with us today. We took some agents

from Palmetto Pride Insurance in Sumter out to lunch. Look how much fun Fairy Anne Hatfield,

Bryan Hatfield and Phil Waynick had with us! The lunch topic was

about the cool new Grange life products coming soon but the real

highlight was the ample bowl of peanuts they were classy enough to

provide me. Yay, Palmetto Pride!

March 16, 2011, 12:30 pm

We stopped in at Bethea & Bethea Insurance in Latta,

to help Becky Rogers, a new producer with life insurance training and

to review auto rates with Jane. Can you see me

triumphantly singing their praises in the background? Jim Brown, agency princi-pal, also joined us for this

candid, celebratory pic.

March 24, 2011, 9:42 am

December 20, 2011, 9:02 pmYours truly at the Grange Marketing Department’s

Christmas Party. We could blame the eggnog, but

nobody clarified that the gift exchange tonight was officially a white elephant

gift exchange. Seriously? Ev-eryone knows gold elephants

are far more rare, not to mention, more attractive.


n average, one in 12 agencies will report a potential E&O incident to their carrier in a given year. Agency owners who over the years have never experienced an E&O claim might say with an air of confidence in that “it will never happen to me.” But I’m sorry to say that even the best run agencies in the country with the most thorough and consistent agency procedures can be involved in an E&O claim. It is, however, your agency practices and procedures that can extricate you from a claim or mitigate its impact with a solid defense. As the largest writer of agency E&O in the country, looking at common errors we see in the Big “I” Professional Liability Program can help you discover some potential E&O claims lurking within your agency.

In most cases there must be an uncovered loss for which the client or a third party suffered damages generated from a breach of agent duties in order for there to be an E&O claim. So obviously, the leading E&O claim made is for failure to procure coverage. In order to prevent E&O policies from being used as client backstop insurance, an emerging trend is for even if the claim is paid, the primary carrier is turning around and suing the agency for damages incurred from the agent’s negligent error!

On a large scale, failure-to-procure types of claims can be broken down in two interrelated

categories: knowledge- and procedural-based errors. In general, knowledge-based errors occur because of inadequate staff training, lack of familiarity with the coverage being offered or an inability to appropriately analyze the risk exposures being insured. Procedural-based errors, on the other hand, are those that are generated from a lack of timely action or follow-up.

Avoiding both knowledge-based and procedural types of errors should be the overall goal for the E&O risk management of the agency. A few high-level things your agency can do to create a solid foundation within the agency for avoiding E&O claims are:1. Understand your state’s specific standard

of care. For articles on South Carolina’s search the Swiss Re risk management site for Westport policy holders, www.independentagent.com/EOHappens.

2. Hire qualified employees and provide adequate training.

3. Implement employee education programs (both agency E&O and coverage lines in general).

4. Implement and monitor an agency workflow procedures manual**. Periodically allow input from staff on enhancements to the workflow process.

Where Are Potential E&O Claims

OLurking

inYour

Agency?


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5. Use exposure analysis checklists on new business and renewal accounts.

6. Thoroughly document your client file with offers and declinations of coverage and other vital client dialog that would provide a defense in the event of a claim.

7. Have an ongoing dialog with staff throughout the year about the importance of avoiding E&O claims as a matter of staying in business.

Now, let’s take a look at the general demographics of the claims made against agents. Agency producers are the ones most frequently named in E&O claims, followed by CSRs. Neither is surprising because they are the ones who most frequently touch accounts. E&O claims are most frequently made on new business transactions, and commercial-lines policies drive both claims frequency and severity. Commercial general liability is the most common underlying coverage in which claims are made.

Below is a list of the most common types of E&O claims made against agents. These examples can provide you with direction on where to find existing E&O claims lurking in your own agency, just waiting to rear their ugly heads, and where to focus on preventing new ones.

1. Failing to recommend a specific coverage type or adequate limits – the most frequent claim made against

agencies as discussed above. Producers and CSRs need to be aware of the potential for these types of E&O claims.

Risk management prevention tip: Using risk-analysis checklists and questionnaires can help uncover areas of exposure to the client. They provide an excellent opportunity to increase revenue for the agency by offering needed products to your customer. Also, let the client select the limits, but do offer higher limits to avoid the claim of offering inadequate limits. E&O claims revolve around documentation so make sure the client file includes solid documentation including offerings and declinations of coverage and higher limits. Review the policy when it comes in to make sure that the policy is reflective of the information included in the proposal. Since SC case law has established that the policyholder has a duty to read their policies, it is especially important to deliver the policy in a timely fashion, as this practice could be a claim defense strategy.

2. Failure to provide timely notice of a claim to the carrier – another procedural-driven error that would seem to be easily addressed within the workflow procedures** of the agency.



Risk management prevention tip: First, don’t affirm or deny coverage, which is the carrier’s job. Second, clients need to understand the process they should follow if a claim occurs. During the policy delivery process, reference the provisions within the policy that should be followed should a claim occur. If the policyholder is responsible for reporting claims directly to the carrier let them know that and document your file. If claims are submitted to the agency, endeavor to submit them to the carrier within a predetermined timeframe and set a reminder in the agency management system to follow up with the carrier to be sure it is being taken care of. The client file should be documented accordingly. Finally, be sure to put any carriers who might provide a defense or coverage on notice. This part is especially important in areas of liability and where excess coverage may be involved.

3. Failure to process applications in an accurate or timely manner – another error more procedural in nature.

Risk management prevention tip: Communication between those responsible for new business processing is key to these types of claims. The producer, or whoever is gathering the client information for the application, needs to communicate effectively with the CSR who is entering the information

and marketing it to the carriers. The agency procedures manual** needs to outline the process and make certain that an appropriate system for follow-up is in place. Also, if the application can’t be processed, then confirm in writing to the insured and notify them of the required information to proceed.

4. Failure to duplicate coverage upon renewal – This error is one that straddles the line of procedural- and knowledge-based errors. It can involve not only the renewal within your agency but also when an account is taken over via Agent of Record (AOR).

Risk management prevention tip: Don’t get complacent in the renewal process. Offering additional coverages and cross selling products upon renewal is an excellent way to counteract the most common claims of failure to offer coverage. For accounts taken over on AOR look at these in the same way you would new business accounts, including using a risk analysis exposure checklist.

5. Failure to make policy changes requested by the client – from what we see in these types of claims, producers were often involved in a process that would more likely be

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Formerly known as Georgia Agent Network, South Carolina Agent Network & Coastal South Carolina Agent Network

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MarchHalfpageAssure-Final_Layout 1 2/15/11 1:06 PM Page 1


handled by the CSR. Improper implementation or following of workflow procedures are the causes of these types of errors.

Risk management prevention tip: Policy changes come in three shapes and sizes: increasing, reducing or modifying coverage. The key ingredient to avoiding these types of policy-change errors lies in the follow-up process to be certain that changes are made in a timely fashion and do not fall through the cracks. Policy changes should be confirmed in writing and only accepted from the named insured. If the insured asked for a reduction in coverage, advise them of the consequences and document the file accordingly. Finally, make sure that when adding additional insureds to the policy you confirm this with the company. We often see CSRs attempting to add additional insureds to the policy via a certificate of insurance, which can lead to the failure to procure coverage claim.

Many of the above common E&O claims can be prevented by having a knowledgeable agency staff that constantly follows agency workflow procedures. As an agency principal, monitoring compliance of agency procedures is paramount to

uncovering E&O claims that may be lurking in your agency. The most important element to any E&O claim is documentation. So many E&O claims are “he said, she said” situations. Your agency may have acted appropriately, but if you did not document your actions using invariable practices you will lose in court.

**If your agency needs help writing a workflow and procedures manual, IIABSC will be offering a Business & Procedures workshop this fall in Columbia, Greenville and Myrtle Beach. Participants will leave this workshop with a manual tailored to their agency, plus they will earn CE credit and possibly qualify for the ERC 10% loss control credit.

This article is written as value-added service of the Big “I” Professional Liability Program. Any reprint of this article without written consent is prohibited. For more information about the Big “I” Professional Liability program, contact IIABSC Insurance Programs Director Laura Cornell, [email protected],803.731.9460 x22.


hat is Cybercrime? Like traditional crime, cybercrime covers a broad scope of criminal activity and can occur anytime and anyplace. What makes it different is that the crime is committed using a computer and the Internet. You may recognize some of its most common forms such as identity theft, computer viruses and phishing and at a corporate level, computer hacking of customer databases.

Most people are aware of these and protect themselves and their PCs with anti-spyware and anti-virus software such as Norton or McAfee programs. As an agency owner, you should be alert to the fact that cybercrime is becoming more and more sophisticated and not only targets consumers and large corporations, but small- to medium-sized businesses as well. Single programs against these intrusions are not enough.

An alarming tactic now affecting small- to medium-sized businesses is “corporate account take over,” where cyber criminals penetrate a business’s computer network and spreads malicious software, such as a “keylogger” which records the words typed, Web browsing history, passwords and other private information. This captured information allows them access to programs using your log-in credentials.

If they steal your password and breach your online banking system, the cyber criminal can begin an online session to initiate funds transfers by ACH or wire transfer to their accomplices. The accomplices withdraw the money almost immediately.

Take the first steps to prevent fraud at your agency – become aware of the latest cybercrimes and how they can access a business’s computer network. An agency should also employ the most up-to-date online security practices on a pro-active basis.

Simple Security Steps

By Danielle Johnson, InsurBanc VP

Combat Cybercrime and Protect Your Agency With

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Agencies can also take the opportunity to present these online security practices to their clients, as many are also instituting internet-based online programs at their businesses.

Online Security PracticesWhile no tools or automated software is 100 percent effective, the best solutions to protect your agency are to be well informed and use common sense. Using a multiple vendor, multi-layer approach to system design can significantly reduce your chances of being a victim of cybercrime. To assess the risks associated with a cyber intrusion of your agency’s online systems and critical client data, ask yourself the following questions:

1. Does your agency have a hardware-based firewall at the network level?

2. Does the network firewall include anti-virus, anti-spyware and anti-spam services along with content filtering and intrusion prevention, detection and real-time reporting?

3. At the individual PC level, does each computer have centrally updated and monitored anti-virus, anti-spyware and anti-spam software loaded?

4. Are your computers set up to automatically update your operating system and applications for the latest available security and critical updates?

5. Do you consider your browser security setting to determine how much or how little information the browser can accept from or transmit to a website?

6. Does your agency have a security policy in place that includes such policies as disaster recovery, use/storage of passwords, use of social media on work computers, etc.?

7. Does your agency back-up critical files in case of an issue that disables your systems?

8. Has your agency identified an individual to review security policies and practices on an ongoing basis?

9. Are you aware of the laws governing the protection of personal information in our state?

10. Do you have cybercrime insurance to protect your data and liability exposure in the event of an intrusion?

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11. Does your agency have a training program to educate employees on best practices to avoid becoming a victim?

12. Does your online banking system provide multiple layers of security tools to prevent intrusions into the system such as token-based authentication? Agency principals should consider the types of transactions they conduct within online banking and check with their banking institution for available security enhancements.

These are just some of the basic steps an agency can implement to assess and protect itself from cybercrime. Your agency should have a network security assessment and review conducted by a certified information technology firm that specializes in network security. This evaluation will help you to identify the “next steps” in securing your network and data from unauthorized access and distribution.

If Your Agency Becomes a VictimIf you discover, or even suspect, your agency has fallen victim to corporate identity theft, you should proceed as follows:

1. Immediately cease all online activity and contact your IT administrator.

2. Remove the affected computer from the network and any other computer stations involved.

3. Contact your financial institution to disable online access to the accounts and close affected accounts. You can then open new accounts and reset passwords.

4. Consult your counsel and your state’s data breach notification law (www.scstatehouse.gov/code/t39c001.htm, Section 39-1-90) and regulations to ascertain the process you need to follow.

5. Notify other business partners that may have been affected, such as your insurance carriers.

6. File a report with the police department.

Common Online Fraud Definitions• Malware refers to software programs designed to

damage or do other unwanted actions on a computer system. Common examples of malware include spyware, keyloggers, and viruses.

• Spyware is a type of malware installed on your computer without your knowledge. It collects small to large pieces

10-274 IIA SC Agent & Broker Ad txtoutl.indd 1 11/12/2010 1:09:32 PM


of personal information including Internet surfing habits. It can redirect web browser activity and change computer settings. Spyware is typically hidden from the user, and can be difficult to detect once installed without proper antispyware tools.

• Keyloggers, as with spyware, are installed on your computer without your knowledge. It is the action of tracking (or logging) the keys struck on a keyboard, typically in a hidden manner so that the person using the keyboard is unaware that their actions are being monitored. Keystroke logging can record the words typed, web browsing history, passwords and other private information. It is extremely dangerous in all aspects of computer usage.

• Viruses are an ever changing and constant threat to all systems. Based on their digital makeup they can deliver malicious content to your data and systems in an effort to either collect data, destroy data or turn your systems into a machine that spreads the virus or other malware.

• Phishing is the act of obtaining personal information or spreading malware using emails, calls, text messages or pop-up messages from what appear to be friends or legitimate banks, retailers, government agencies or other organizations.

All of the security tips presented here are simply guidelines to aid agencies in not becoming a target for cybercriminals. However, none can be guaranteed 100 percent effective.

Editor’s Note: Please also refer to ACT’s “Security & Privacy” page for a prototype agency information security plan and recorded webinar, which will help agencies fashion their written security plan and implement their security program. Go to www.iiaba.net/act and click on “Security & Privacy” in the gray shaded area on the left side of the page.

Danielle Johnson is the VP, Director of Information Technology at InsurBanc, which IIABA and the W.R. Berkley Corporation established to assist independent agencies, businesses and consumers with their specific banking needs. Danielle prepared this article for ACT, and she can be reached at [email protected]. This article reflects the views of the author and should not be construed as an official statement by ACT.

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hen my daughter went away to college, she and two of her friends decided to rent an apartment. She brought the apartment lease to me (I guess I was the only parent gullible enough to sign it) because the property owner required a parent’s signature. After reading the lease I was convinced that if I signed it, I would have to hold the property owner and management company harmless for almost anything. They could get into a bar fight on Friday night, and I would have to pay for their defense and any judgment or settlement.

I took my concerns to the property manager, who admitted he had never actually read the lease. When I showed him some sections I had highlighted, he admitted that he wouldn’t sign the lease for his children either. Fortunately, he agreed to modify some sections before I signed. However, I imagine that many other parents signed the lease “as is” for their children, not fully

realizing what they were agreeing to. This experience prompted me start researching leases.

Too often, I hear agents and brokers describe a similar situation. Many of their clients sign property leases without even reading them, much less understanding them. The leases can have important insurance implications, but many agents don’t ask to see them before writing an insurance policy. This practice can lead to uninsured exposures for clients and E&O exposure for agents.

Before I begin, I want to make it very clear that I am not suggesting agents get involved in negotiating their clients’ leases, but I do believe they should check them for some basic provisions that may affect the insurance policies that are written. In this article, I’ll discuss some typical lease provisions that lead to insurance exposures and suggest different ways of dealing with them.

Don’t Get

By Terry Tadlock, CPCU, CIC, CRIS

W

BLINDSIDEDby a Property Lease


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Insurance Requirements - Mutual waiver of subrogation - Legal Liability Coverage FormI think we should begin by asking the question, who is responsible for maintaining and insuring the building? Some leases require the tenant to purchase insurance on the building for the benefit of the landlord. I’m not thrilled with this arrangement. Even if the tenant provides a certificate of insurance, there’s always the chance that coverage will be inadequate at loss time, or that the landlord won’t be notified of a cancellation. Transferring the cost of insurance is one thing, but transferring the responsibility to insure is dangerous. One of the more common leases used today is referred to as a “triple-net” lease. This arrangement allows the property owner to pass on to the tenant(s) the cost of insurance, property taxes and maintenance but allows the owner to control the insurance policy. Other common leases require the landlord to insure the building, the tenant to insure his or her own personal property and the tenant to maintain his portion of the building as if he owned it. If a client has signed such a lease, you should consider the following:

Loss scenario: Let’s assume that a storm causes the roof of your client’s (the tenant) space to collapse, damaging his property. The landlord’s insurance company pays for the damage to the roof ($50,000). Your client’s insurance company then pays for

the damage to his personal property; everyone is happy. A few months later, your client gets a letter from the landlord’s insurer stating: “We have determined that the collapse of the roof was a result of water back-up due to your failure to clean the gutters as required by your lease. Therefore, our subrogation department is enclosing a bill in the amount of $50,000; please pay at your earliest convenience. Hugs and kisses, the insurance company.”

Your client’s first call will be to you, their insurance agent. What is your response? That’s what I thought. You have not written insurance to cover the building, you have only insured the personal property of your client as required by the lease.

Your client then takes the letter to his landlord, who is just as upset about it as your client is. The landlord doesn’t want to lose a valuable tenant over the issue. He promises to do what he can about this. The next day, he faxes a letter to his insurer and asks that they not seek recovery from the tenant. What do you think the company did with this letter?

Not only might the tenant be out of luck (and $50,000) in this situation, but the landlord may now be on shaky ground with his own insurer. The Commercial Property Conditions form transfers to the insurer the right, to the extent of its payment to the insured, to seek recovery from a third party. The form says the insured “must do everything necessary to secure our rights and must do nothing after loss to impair them.” By attempting to

prevent subrogation, the insured might be construed by his insurer as impairing the insurer’s right of recovery. This condition allows the landlord to waive his right of recovery, but only in two situations as they apply to our scenario. First, the landlord may waive rights of recovery to anyone if they do so in writing prior to the loss, which is known as a mutual waiver of subrogation. The second says the landlord may waive rights of recovery after a loss to a tenant. The question now becomes, is the right still the landlord’s? The answer is no! The landlord does have the right to waive subrogation after a loss to a tenant, but must do so prior to receiving payment for the claim. Once payment is received, that right is no longer the landlord’s, but is transferred to the insurance company.

So, how do we fix the problem? As you review the lease you should look for what is known as a “mutual waiver of subrogation.” It will look something like this: “…to the maximum extent permitted by insurance policies which may be owned by Lessor or Lessee, for the benefit of


each other, waive any and all rights of subrogation which might otherwise exist.”

In the absence of such a waiver the insurance agent should look for a way to insure that part of the building that is in their care, custody or control. If a client’s lease does not include a mutual waiver of subrogation, suggest the Legal Liability Coverage Form. This is a property form, but it’s insuring agreement states, “We will pay those sums that you become legally obligated to pay as damages because of direct physical loss or damage, including loss of use.” Thus it might be said that it’s a property form that functions as a liability form. The mutual waiver of subrogation frees the tenant from liability; absent a waiver, the legal liability coverage form can provide coverage for the exposure.

Tenants improvements and bettermentsTenant’s improvements and betterments are one of the most complex parts of a property lease to insure. Agents need to write the proper coverage and be sure that their clients understand exactly what is being covered.

Consider a client who gets a great rate on a 10-year lease in a strip mall because he installed $250,000 worth of improvements and betterments on the first day of the lease. They are a permanent part of the building and cannot be removed at the termination of the lease. Naturally, the client wants his investment protected for the duration of the lease. Agents should help such clients understand the following issues:

Who should insure the improvements and betterments and how are they insured? The Building and Personal Property Coverage Form defines under Business Personal Property “Your use interest as tenant in improvements and betterments” (Emphasis mine. You should explain to your clients the difference between insuring the cost to repair or replace improvements and insuring the use interest of the improvements.) This distinction will become important as look at valuation below.

The improvements are also “completed additions,” and as such are listed as part of the “Building” earlier on page one of the coverage form. What this means is that the landlord can insure improvements as well, and could be asking for trouble if he doesn’t. Adjusters I have worked with tell me that in about half the cases in which they impose a

coinsurance penalty, it is because a landlord failed to report the increased building value resulting from tenant’s improvements and betterments. If the lease does not address this issue, it may be necessary for both the landlord and tenant to insure the improvements and betterments.

What valuation method is used to pay claims? Remember that the BPP insures the “use interest” in the improvements, not the improvements themselves. This distinction, and the circumstances of a loss, dictates how much a client is paid. In the example above, assume the client’s building was completely destroyed by a fire five years into the client’s 10-year lease. What happens next depends largely on the landlord’s decision.

If the landlord decides to rebuild, the tenant’s policy will pay actual cash value (or replacement cost if purchased) for the improvements and betterments. Notice it is the landlord’s decision. Your client may not control this.

If the landlord does not rebuild, the BPP gives him “proportionate value” for the improvements and betterments. So if the loss is a total loss and we follow the assumptions above that we are in the fifth year of a 10-year lease, the tenant would only be paid $125,000. (250,000 x 5/10, the form calculates this based on days, but I don’t think you want to get into that math). Even if the client has selected the replacement cost option, he gets only


proportionate value if he does not rebuild. I don’t know many clients who would be happy with this loss settlement. If they paid a premium for $250,000 of insurance and it is a total loss they expect a check for $250,000. That possible scenario is why explaining “use interest” to clients is so important.

If the landlord files a claim for the improvements (we’ve already noted that they’re also part of the building), the “Valuation” section of the BPP says that the insurer will pay the insured tenant “Nothing if others pay for repairs or replacement.” If you think a client might be upset to receive only half back from his $250,000 improvements, imagine how upset he would be if no payout led him to think he had been paying for coverage that he never needed! It can be especially important here to help clients understand the wisdom of insuring the exposure, even if they may later believe they didn’t need the coverage. A worse situation would be to rely on the landlord to cover improvements to find out too late that the policy had been cancelled, or that the landlord had failed to get coverage at all.

The best method of protecting a client’s improvements and betterments combines lease terms and insurance. The landlord/tenant can request a reduced lease rate in exchange for the improvements. He can also ask the property owner to insure the improvements, and in the event of a loss to either rebuild or pay the tenant a proportionate value for them. If the landlord doesn’t agree to do this, a tenant’s safest choice is to insure his use interest.

Those are just two of the minefields we have to maneuver through as we deal with property leases. Be on the lookout for others in future issues of this magazine. I hope this explanation helps as you wander through the complicated world of insuring clients with leases.Terry Tadlock currently resides in Hilton Head Island, where he is a principal of Coastal Plains Insurance, part of the Correll Insurance Group. He is also the Education Consultant for the CIC program in North Carolina, and a member of the CIC National Facility Formerly the president of an insurance education and consulting firm, Terry continues to provide a variety of in-person and online education courses and consulting services for agents in South Carolina as well as the rest of the nation. Terry also presents at Big “I” state conventions and writes for several other publications for property and casualty insurance industry associations.



rusted Choice® is the national marketing brand created exclusively for Big “I” members to help consumers understand the value that an independent insurance agent offers. It is not a market access program but a brand that is designed to highlight the strengths of independent insurance agents to consumers: Choice, Customization, and Advocacy.

All South Carolina Big “I” members who have signed the licensing agreement (included with your annual dues renewals) are officially Trusted Choice® agents. Below is a list of the major benefits of Trusted Choice and how to access them. They will be what you make of them. (Editor’s note: Accessing most benefits will require a Big “I” website username and password. See end of article for information on how to get yours.)

Licensed use of the consumer-tested Logo & Pledge of Performance: Both resonate with consumers and reinforces the value of doing business with independent agents

Where to find it:• Trusted Choice® Logo and Logo guidelines: go to www .trustedchoice.com/agents, mouse over the “Logos/Pledge”

menu label until the dropdown menu is revealed, then click on either “Logo Examples” (for logos) or “Logo Rules” (for guidelines).

• Pledge of Performance: go to www.trustedchoice.com/agents, mouse over the “Logos/Pledge” menu label until the dropdown menu is revealed, click on “The Pledge of Performance.”

• Value of the Pledge, including ideas for the 24/7 pledge point: go to www.trustedchoice.com/agents, mouse over the “Logos/Pledge” menu label until the dropdown menu is revealed, click on “The Value of the Pledge.”

Exposure through a national advertising and public relations campaign: National cable TV ads run two weeks out of every month, plus an extensive online/Facebook presence: www.facebook.com/TrustedChoice

Where to find it: • National Ad schedule: go to www.trustedchoice.com/agents,

mouse over the “Advertising” menu label until the dropdown menu is revealed, click on “Ad Flight Schedules”; then click on the article Ten Tips for Creating a Media Plan.

• Facebook presence: go to www.facebook.com/trustedchoice.

Customizable advertising materials: Four TV ads, 14 radio ads, 10 print ads and five billboard ads available for your use.

Using ad templates mean little or no production costs for your agency, and there is space to include your agency contact information all ad materials.

Where to find it:• Creating a media plan: go to www.trustedchoice.com/

agents, mouse over the “Advertising” menu label until the dropdown menu is revealed, click on “Advertising Articles”; then on the article “Ten Tips for Creating a Media Plan.”

Benefits of Living the Trusted Choice® BrandBy Tom M. Bates, Jr., SC Trusted Choice® Committee Chairman

T


• Trusted Choice® “tagable” TV, radio, print and billboard ads: go to www.trustedchoice.com/agents, mouse over the “Advertising” menu label until the dropdown menu is revealed, click on the advertising media of interest.

Inclusion on the online Agency Locator: Consumers can find your agency when visiting the consumer site, www.TrustedChoice.com, by using this tool.

Where to find it:• Viewing your agency profile on the Trusted Choice®

agency locator: go to www.trustedchoice.com, enter your zip code in “Find an Agent” field and click “Go.”

• Creating/Updating you agency profile for the Trusted Choice® agency locator: go to www.trustedchoice.com/agents and click on “Updating your company profile.” It requires the proper permissions, contact our office ([email protected], 803.731.9460) if it won’t grant you access.

Informative consumer articles for use in newsletters, website, social media: Use in customizable articles in newsletters, on websites, social media posts or as part of a mailing. Includes how-to articles (Prepare Your Home for Winter), consumer interest articles (Pool Safety, Flood Insurance) and consumer guides (Graduate’s Guide to Insurance).

Where to find it: Go to www.trustedchoice.com/agents, put your mouse over the “Public Relations” menu label until the dropdown menu appears, click on “Public Relations Articles.”

Customizable press release templates: These customizable templates pull double duty in helping garner local press coverage for your agency and positioning your agency as local authority on insurance.

Where to find it:Go to www.trustedchoice.com/agents, put your mouse over the “Public Relations” menu label until the dropdown menu appears, click on “Press Release Templates.”

Syndicated Content Feed (RSS) for website:Provides website content that automatically refreshes once a month with topical insurance content that is seasonally appropriate and completely vetted for accuracy and readability.

Where to find it:• Automatic content feed for website (RSS feed): go to

www.trustedchoice.com/agents; see information on the home page, including the RSS script

• Current RSS feed content (text only): go to http://www.cevadopartners.com/index.php?page_id=500

• See what it looks like (integrated into the feel of the site): go to http://afsinsurance.com/news_307.html

Support from our many Trusted Choice® Company Partners:Several companies have invested in our brand and offer co-op advertising opportunities. Check to see if any companies you represent are on the lists.

Where to find it:• List of company partners: go to www.trustedchoice.com/

agents, click on the “Companies” menu label; scroll down• Company co-op funds: go to www.trustedchoice.com/

agents, mouse over the “Advertising” menu label until the dropdown menu is revealed, click on “Advertising Articles”; click on the article Leveraging Company Co-Op Ad Dollars.

Marketing Reimbursement Program (MRP):Get up to $500 back for co-branding your website and promotional items with Trusted Choice®.

Where to find it: • Marketing Reimbursement Program (MRP) complete

details: go to www.trustedchoice.com/agents and click on the link on the home page OR go to www.trustedchoice.com/mrp

• Getting MRP reimbursement for adding the logo and pledge to your website: go to www.trustedchoice.com/mrp and click on “MRP Guidelines” link.

More information on starting Trusted Choice branding with your agency:

Where to find it:• Zoom in on Branding guide: go to www.trustedchoice.com/

agents, put your mouse over the “Branding Basics” menu label until the dropdown menu is revealed, click on “Zoom in on Branding” (available on the page are a PowerPoint and the individual phases in PDF format).

o Phase 1, Getting Started: Educating and engaging your agency personnel and forming a brand team.

o Phase 2, Evaluate Your Brand: Review your agency’s current image in the marketplace.

o Phase 3, Redefine Your Brand: Develop a brand promise and examine your agency’s brand identity

o Phase 4, Integrate Trusted Choice®: How your agency can benefit from this national brand.

o Phase 5, Rethink Your Infrastructure: Review products, services, workflows, employees & technology.


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Bankers InsuranceIIABSC Agency

Johnson & JohnsonPreferred Specialty

ProgressiveRisk Innovations

St. Johns InsuranceUnited Property & Casualty

Hole Sponsors:American Strategic Insurance

Belfor Property RestorationCorrell Ins Group

Frankenmuth InsuranceGenesee General

Preferred SpecialtyRussell Massey

SafecoSt. Johns InsuranceTapco Underwriters

Additional: Sincerely Yours

Young Agents Scholarship Golf Tournament

Wildewood Course, Columbia May 3, 2011

2011 Tournament Champions w/ IIABSC President Frank Sheppard. L to R:William Boswell, Ryan Eaddy, Robert Sanders, Jr., (not pictured) Garrett Wredon.Also not shown: Long Drive winner, David Wells and Closest to the Pin, Todd Hiott.


o Phase 6, Create a Marketing Strategy: Develop a comprehensive marketing plan.

o Phase 7, Direct Marketing: Begin branding promotions with a direct marketing campaign.

o Phase 8, PR & Special Events: Learn to utilize “free media,” both in print and broadcast, to tell your story.

o Phase 9, Print, Web & Outdoor Advertising: Make the biggest impact for the smallest amount of money.

o Phase 10, Broadcast Advertising: Advertise wisely and effectively on both radio and television.

• Member branding checklist: go to www.trustedchoice.com/agents, mouse over the “Branding Basics” menu label until the dropdown menu is revealed, click on “Branding Articles”; and under the “Live the Brand” headline, click on “Branding Checklist.”

• Live the Brand guide: go to www.trustedchoice.com/agents, mouse over the “Branding Basics” menu label until the dropdown menu is revealed, click on “Branding Articles”; under the “Live the Brand” headline, click on the “Live the Brand guide.”

How to find your IIABSC username and password:

Where to find it:Accessing almost everything listed in this article requires a Big “I” website username and password. If you have forgotten yours, click on the black “Forget username and password?” link under the login area of www.iiabsc.com. Enter your email address into the appropriate field, and your username and password will be automatically emailed to you.

If you do not have a username and password, or the above process gives you an error message, call our office 803.731.9460 or email your login request to [email protected]. You must provide your full name, email address and agency name and location.

SponsorsPalmetto Partners:

Bankers InsuranceIIABSC Agency

Johnson & JohnsonPreferred Specialty

ProgressiveRisk Innovations

St. Johns InsuranceUnited Property & Casualty

Hole Sponsors:American Strategic Insurance

Belfor Property RestorationCorrell Ins Group

Frankenmuth InsuranceGenesee General

Preferred SpecialtyRussell Massey

SafecoSt. Johns InsuranceTapco Underwriters

Additional: Sincerely Yours

Young Agents Scholarship Golf Tournament

Wildewood Course, Columbia May 3, 2011

2011 Tournament Champions w/ IIABSC President Frank Sheppard. L to R:William Boswell, Ryan Eaddy, Robert Sanders, Jr., (not pictured) Garrett Wredon.Also not shown: Long Drive winner, David Wells and Closest to the Pin, Todd Hiott.



December 1 Surplus Lines Markets & Practices, Columbia, 6 hrs. P&C 7 CISR Commercial Casualty, Columbia, 7 hrs P&C13 CISR Agency Operations, Greenville, 6 hrs P&C or L&H, 1 hr Ethics13 Ethics: Yesterday, Today & Tomorrow, Columbia, 3 hrs. Ethics14 AIAM 610 & 620, Columbia, 3 hrs. Ethics & 2 hrs. P&C

WEBINARSJuly 13 ABEN Webcast: Bonds, Shaken not Stirred, 2 hrs. P&C 19 ABEN Webcast: Ethics in Business, 3 hrs. Ethics20 Insuring Personally Used Autos in Business, 1 hr. P&C

August 16 Setting Business Income Limits, 1 hr. P&C 19 Insuring Condos, 2 hrs. P&C23 Rental Cars, 2 hrs. P&C25 ABEN Webcast: Bonds, Shaken not Stirred, 2 hrs. P&C25 ABEN Webcast: Ethics in Business, 3 hrs. Ethics September 8 ABEN Webcast: Business Income, Beyond the Basics, 3 hrs. P&C 9 ABEN Webcast: Workers Comp, Beyond the Basics, 3 hrs. P&C13 Advanced Flood, Webinar, 2 hrs. P&C16 How to Complete the Business Income Worksheet, 1 hr. P&C20 Ethics: Yesterday, Today & Tomorrow, 3 hrs. Ethics21 2011 HO Changes, 1 hr. P&C27 ABEN Webcast: Ethics in Business, 3 hrs. Ethics

October4 CP Endorsements that Can Make You Money, 2 hrs. P&C 13 Kids at College, 1 hr. P&C 26 Insuring Personally Used Autos in Business, 1 hr. P&C27 ABEN Webcast: Ethics in Business, 3 hrs. Ethics

November 2 ABEN Webcast: Business Income, Beyond the Basics, 3 hrs. P&C 3 Setting Business Income Limits, 1 hr. P&C 3 ABEN Webcast: Workers Comp, Beyond the Basics, 3 hrs. P&C15 Insuring Condos, 2 hrs. P&C15 ABEN Webcast: Bonds, Shaken not Stirred, 2 hrs. P&C17 ABEN Webcast: Ethics in Business, 3 hrs. Ethics29 Rental Cars, 2 hrs. P&C

December 1 Ethics: Yesterday, Today & Tomorrow, 3 hrs. Ethics 2 2011 HO Changes, 1 hr. P&C 7 Advanced Flood, 2 hrs. P&C14 How to Complete the Business Income Worksheet, 1 hr. P&C15 ABEN Webcast: Ethics in Business, 3 hrs. Ethics

For course descriptions and up-to-date calendar, see our Education & Event calendars at www.iiabsc.com

July 13 CISR William T. Hold Seminar, Greenville, 4 hrs Ethics, 4 hrs. P&C19 Surplus Lines Markets & Practices, Greenville, 6 hrs. P&C21 CISR Personal Residential, Bluffton/HHI, 7 hrs P&C21 CRIS Commercial Auto, Surety, CIPs, Misc. Lines, Charleston, 6 hrs. P&C26 E&O Risk Management, Myrtle Beach, 6 hrs. P&C28–31 Young Agents Conference, Charleston

August 11 CISR Commercial Property, Charleston, 7 hrs. P&C17 Ethics: Yesterday, Today & Tomorrow, Charleston, 3 hrs. Ethics18 Terry Tadlock Roadshow, Hilton Head, 6 hrs. P&C24–26 CIC Agency Management, Columbia, 16 hrs P&C or L&H, 4 hrs. Ethics30 AIAM 410 & 420, Columbia, 6 hrs. P&C September 7 AIAM 610 & 620, Greenville, 3 hrs. Ethics & 2 hrs. P&C 8 CISR Commercial Casualty, Greenville, 7 hrs P&C 8 Ethics: Yesterday, Today & Tomorrow, Columbia, 3 hrs. Ethics15 CISR Personal Auto, Rock Hill, 7 hrs P&C15 CRIS Workers Comp for Contractors, Columbia, 6 hrs. P&C21 E&O Risk Management, Columbia, 6 hrs. P&C22 Terry Tadlock Roadshow, Columbia, 6 hrs. P&C27 Surplus Lines Markets & Practices, Myrtle Beach, 6 hrs. P&C28–30 CIC Personal Lines, Myrtle Beach, 20 hrs P&C

October6 CISR Dynamics of Service, Columbia, 7 hrs. P&C or L&H 11 CISR Personal Residential, Charleston, 7 hrs P&C11 Business Practices & Agency Procedures, Myrtle Beach, 6 hrs. P&C or L&H12 Business Practices & Agency Procedures, Columbia, 6 hrs. P&C or L&H13 Business Practices & Agency Procedures, Greenville, 6 hrs. P&C or L&H19 AIAM 510 & 520, Columbia, 6 hrs. P&C20 AIAM 310 & 320, Charleston, 6 hrs. P&C25 CRIS: Commercial Liability for Contractors, Greenville, 6 hrs. P&C30–31 IIABSC Annual Convention, Charleston Place Hotel

November 1 IIABSC Annual Convention, Charleston Place Hotel 3 CISR Personal Auto, Greenville, 7 hrs P&C 8 Terry Tadlock Roadshow, Charleston, 6 hrs. P&C9–11 CIC Commercial Property, Hilton Head, 20 hrs P&C15 CISR William T. Hold Seminar, Charleston, 4 hrs. Ethics, 4 hrs. P&C16 CISR Personal Residential, Florence, 7 hrs P&C16 E&O Risk Management, Hilton Head, 6 hrs. P&C17 Ethics: Yesterday, Today & Tomorrow, Greenville, 3 hrs. Ethics29 CISR Agency Operations, Charleston, 6 hrs P&C or L&H, 1 hr Ethics

Calendar


usyou

Montgomery Insurance™ is committed to the success of its independent agents. We meet the needs of your small to mid-sized commercial lines customers by providing the Montgomery Advantage™: stability and consistency, profitable growth, ease of doing business, local decision making, service you need and expect, competitive products and services, and people you know and trust. Doing more to help independent agents conquer the fast turbulent currents of business today.

No one keeps independent agents on course to succeed like we do.

www.montgomery-ins.com

© 2010 Montgomery Mutual Insurance Company. All rights reserved.

MIC_AgentBroker_Kayaker_Ad.indd 1 11/9/10 3:35 PM


2011 Board of Directors

Thomas M. Bates, Jr. (Tom) Herlong Bates Burnett Insurance Greenville, SC [email protected]

Angus M. Brabham, IV, CIC (Gus) Frank B. Norris & Co.Columbia, SC [email protected]

David A. Cyphers, CIC, AAI Sifford-Stine Insurance Clover, SC [email protected]

Kimberly J. Gore, CIC (Kim) Associated InsurorsMyrtle Beach, SC [email protected]

Larry G. Joyner, CIC, AAI CWS Ins Agency Spartanburg, SC [email protected]

Chairman Kathy D. McKay, CIC, CPIW McKay Insurance Mt. Pleasant, SC [email protected]

Chairman Elect/ Treasurer Ashley Brady, CIC First Charter Co., Inc Marion, SC [email protected]

Secretary Kenneth A. “Ken” Finch, CPCU, CIC, CRM, AAI Countybanc Insurance Greenwood, SC [email protected]

Directors

Executive CommitteeR. Scott Moseley Irmo Insurance Agency Irmo, SC [email protected]

Edward S. Spivey, CIC, AAI (Spider) Howard B. Smith Agency Mullins, SC [email protected]

James G. Taylor, Jr., CIC (Jay) Kinghorn Insurance Agency of Beaufort Beaufort, SC [email protected]

Richard L. Walker, CIC Cormell Street & PattersonFlorence, SC [email protected]

National Director Jon A. Jensen, AAI, AIP Correll Insurance Group Spartanburg, SC [email protected]

Immediate Past Chairman Julius J “Jules” Anderson, Jr., AAI Anderson Ins Assoc Charleston, SC [email protected]

IIABSC offers a special thanks to our 2011 Palmetto Partners. The program was created as a simplified way for companies, brokers and vendors to support the association and all our major conferences and events on an ongoing basis. They contribute once annually and are not solicited for ad-ditional sponsorships or support for the rest of the year.

Palmetto Partners Program

Silver LevelAmerican Strategic Insurance Companion Property & Casualty Ins. Co.Frontline Homeowners InsuranceRPS ContinentalTravelers

Diamond LevelJohnson & JohnsonIIABSC Agency

Platinum LevelBankers InsuranceUnited Property & Casualty Ins. Co.

Gold LevelMontgomery Insurance member of Liberty Mutual Group

/Safeco Insurance member of Liberty Mutual Group

Progressive InsuranceSt. Johns Insurance Company

Download forms and program benefits at: www.iiabsc.com

Independent Insurance Agents & Brokers of SC

Bronze LevelAFCO/ Prime Rate Premium Finance Corp. AmTrust North AmericaAuto-Owners Insurance CompanyBerkley Mid-Atlantic Group, LLC Capitol Preferred InsuranceGeneral CasualtyHanover Excess & SurplusThe Hartford

Jackson, Sumner & AssociatesMain Street America Group Preferred Specialty, LLC Southern Cross UnderwritersState Auto Insurance CompaniesTapco Underwriters, Inc.Universal Ins. Co./ The Seibels Bruce Group Zurich Small Business/ Farmers/ Foremost


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Your Preferred Choice for HomeownersInsurance Protection Programs

� Responsive Insurance Planning We Give You ‘Count Ability’ — Count on Superior, Affordable Insurance to Suit Your Lifestyle

� Stable Lifestyle Protection A Stable Well Nurtured Company That Has the Strength to Help When You Need it Most

� Innovative Coverage Requires Strength and Experience Doing Whatever it Takes to Process Your Claim

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Independent Insurance Agents & Brokers of SC800 Gracern RoadColumbia, SC 29210

Documents

SC Agent & Broker magazine, Summer 2011