The Tennessee Agent

Tennesseeagentthe

OCTOBER/NOVEMBER 2011

VOL. 53, NO. 5

IN THIS ISSUE—STRATEGIES FOR AGENCY SUCCESS

Vision—A Lesson in Leadership

Marketing—2011 Agency Marketing Guide

Management—E&O Prevention Tips

P R O F E S S I O N A L I N S U R A N C E A G E N T S O F T E N N E S S E E

TABLE OF CONTENTSOctober/November 2011Vol. 53, No. 5

OFFICERS

Elaine Morton, CPIAPresidentMorton Insurance Agency, Inc., BartlettPh: 901-382-4600email: [email protected]

Steve PeayPresident-electBoyle Insurance, Memphisemail: [email protected]

Tina Hutsenpiller, CPIAVice PresidentHutsenpiller Insurance Services, Mt. Julietemail: [email protected]

Herbert MontgomerySecretaryClay & Land Insurance, Inc., Memphisemail: [email protected]

Donnie Hogan, CICTreasurerFred M. Smith & Son, Inc., Springfieldemail: [email protected]

Glen Page, CIC, CPIAImmediate Past PresidentPage, Chaffin & Riggins Insurance, Cordovaemail: [email protected]

NATIONAL DIRECTOR

June W. Taylor, CIC, CPIA, CPIW, DAEWilkinson Insurance Agency, White Houseemail: [email protected]

DIRECTORS

Carl Butcher, CIC, CPAC. L. Butcher Agency, Knoxvilleemail: [email protected]

Andrea Bond Johnson, CPIAGolden Circle Insurance Agency, Brownsvilleemail: [email protected]

John Keisling, CPIA, CISRKeisling Insurance Agency, Inc., Byrdstownemail: [email protected]

Joe Kerr, CIC, CPIAKerr Insurance Services, LLC, Brentwoodemail: [email protected]

Britt Linder, CICPeterson Insurance Services, Inc., Bartlettemail: [email protected]

Bill Oglesby, II, CIC, CPIABrown Insurance Group, Crossvilleemail: [email protected]

Barry Wilson, CICMid-South Insurance Office, Inc., Memphisemail: [email protected]

STAFF

Brennan J. Paris, CIC, CRMExecutive Vice Presidentemail: [email protected]

Pamela D. Cass, CPIAConvention, Education, [email protected]

Sandy Clive, CPIAE&O, Member [email protected]

Lochiel GainesCommunications, Trade [email protected]

The Tennessee Agent (ISSN 1081-566X) is published bi-

monthly by the Professional Insurance Agents of Tennessee,

Inc. Statement of fact or opinions expressed in any article

are solely that of the author and does not imply opinions of

the officers, directors or staff of PIA of Tennessee, Inc. The

publishing of any article or advertisement does not imply

endorsement by PIA of Tennessee, Inc. No material within

this publication may be reproduced in whole or in part with-

out the consent of the Editor.

Editor: Lochiel Gaines, [email protected]

Advertising inquiries should be made to the Editor,

The Tennessee Agent, 504 Autumn Springs Court, A-2,

Franklin, TN 37067.

Telephone 615/771-1177 Fax 615/771-3456

Email – [email protected] Website – www.piatn.com

ArticlesA lesson in leadershipThe staying power of the band Journey offers aleadership lesson. Charles Marshall describes thislesson. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Tips to avoid E&O claimsCurtis Pearsall offers suggestions that will helpagencies to avoid an E&O claim. . . . . . . . . . . . . . . . . . . . . . . . .13

PIA publishes Agency Marketing GuideThe 2011 Agency Marketing Guide focuses onInternet marketing. The guide offers several articlesfrom experts that will help agents to market theirservices effectively using the Internet. . . . . . . . . . . . . . . . . . . . .17

PC running slooooow?In this Tech Bit article, Gregg Marshall writes abouta software program that simplifies tuning up yoursystem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

ColumnsWelcome New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

President’s Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Vision for the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

PIA Calendar & Education . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

News from National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Tennesseeagentthe

4 THE TENNESSEE AGENTOctober/November 2011

8Welcome, New Members

Active/Agency

Bill Richards, LUTCFHarold KellerCommunity Insurance, LLCGreenevillewww.greatci.com

Sondra GoldsteinGoldstein Insurance Agency, LLCNashvillewww.goldsteininsurance.com

Associate/Company

CMS Insurance Service, Inc.Tyler SiddensRipley, West Virginiawww.cmsinsurance.net


President’s PerspectiveBY ELAINE MORTON, CPIA

Earthquakes, fires,floods, hurri-

canes, tornadoes…And certificates ofinsurance!…OH MY!2011 has definitelybeen a year ofdestruction and hugefinancial loss to theinsurance industry asa whole. As agents we

try our best to make sure we place the right riskwith the right carrier. Yet no matter how hard wetry to control our losses, there is little we can dowhen it comes to "mother nature". She tends torush in with a vengeance at the most inappropriatetime. Tennesseans are still trying to recover fromthe floods as well as the hail storms and tornadoeswe experienced in the past 9 months. It is myunderstanding that there is still a 3-9 month waitfor some to have hail damage repairs made as wellas roofs being replaced. Typically this is the time ofyear we take a breath after the crazy spring andsummer weather and think about bracing ourselvesfor what lies ahead for the remainder of 2011. Myhope is that Mother Nature is on an extended vaca-tion!

In early September I took a trip to the East Coast.I have always been fascinated with lighthouses, notonly for the photographic landscapes they providebut for their representation. To me a lighthouserepresents a source of direction, strength, guidance,light, protection, and stability—A lighthouse iswhere I would like to be in almost any storm thatarises.

As corny as it may sound, I think that PIA servesas a lighthouse to all our members. In the mid 80's,

PIA served as our lighthouse as we weathered themost difficult internal storm in our agency's histo-ry. It was my father's associations with PIA thatencouraged and supported us in rebuilding ouragency. At this point I realized PIA would serve asa lighthouse for me as well.

PIA can help provide the navigational tools tobecome a successful insurance agent as well as asuccessful insurance agency. Similar to a light-house, PIA represents a source of:

DIRECTION in guiding agents to new resourcesavailable, cutting edge technology and the latestlegislative changes

STRENGTH in a board of directors and staff thatare 110 % committed to innovation and the futureof PIA

GUIDANCE in the education programs offeredand knowledgeable instructors that are within ourown association.

LIGHT by being our "go to" staff for industryquestions and issues

PROTECTION by providing our E&O coverageas well as keeping abreast of legislative issues thateffect our agencies and companies.

STABILITY by providing a staff with over 50combined years of service and dedication to ourassociation

I hope that you allow PIA to be your lighthouseand that you commit to being a "keeper" of thatlight by using PIA products, participating on acommittee, serving as a board member, or becom-ing a company partner in our new partnership pro-gram. PIA is the beacon for the independent agent.As President, I am honored to serve with such adedicated staff and board of directors. You contin-ue to encourage me to be a better insurance agentand a better me. •


A Vision for the Future

Ican’t believe fall isalready here and

by the time thismagazine is releasedthe college footballseason will be halfover, and unfortu-nately my GeorgiaBulldogs have notgotten off to thefastest start! That

being said it’s amazing how time flies, and I think alot of that has to do with how busy we all are. Thatrings true for the PIA as the staff and I have beenhard at work to make our association more visiblethroughout the state and ultimately to make youragency or company more successful.

I have been working on building relationshipswith our leaders in Tennessee. I had a very goodmeeting in August with Michael Schulz in SenatorLamar Alexander’s office discussing the top nation-al issues our industry is facing, such as health carereform and the reform and extension of theNational Flood Insurance Program. This meetingalso served as a building block in getting to knowSen. Alexander and his staff and building a rapportwith this leader of Tennessee. Mr. Schulz was veryaccommodating and intrigued by the issues of theinsurance industry and is excited to work with usmore in the future. I will to continue to meet withother leaders, including Senator Bob Corker, ourrepresentatives in Congress, and those in theGeneral Assembly to voice your concerns about ourindustry, so do not hesitate to contact our office sothat we can make sure your voice is heard onCapitol Hill here in Nashville and in Washington.

We have announced the date and location fornext summer’s convention—the Loews VanderbiltHotel in Nashville from July 30-August 1. We areexcited about this new venue for our convention, aswell as the new dates that break away from theearly summer time slot when it is wedding season,graduation season, vacation season, and othermajor events that occur across the state. We thinkthis new convention time will give us a fun andexciting finale to summertime. We also are shakingup the schedule with new events and a differentagenda that we will be a fresh approach to the PIA

annual convention. We will host an industry forumthat will consist of a panel of insurance and politi-cal experts who will discuss current important top-ics in the insurance industry and the country as awhole. We will have an opening night party featur-ing a performance by the southern party band, theSwingin’ Medallions; another new event will be aleadership luncheon, and we will close our conven-tion with a general session featuring a guest keynote speaker. We hope you will go ahead and markyour calendars for the 2012 PIA of TennesseeAnnual Convention in Nashville next summer!. Last month I attended the PIA National annualfall meeting in San Francisco, and it was a greatopportunity to hear how National is working for usin D.C., as well as meet other PIA affiliates fromacross the country and hear/share ideas and con-cepts that have or have not worked in the differentregions. The big topic of the week was the rollout ofPIAPRO, a captive risk retention insurance compa-ny that PIA National has created for agency E&Ocoverage. The underwriting company is ArgoInsurance Group, domiciled in Montana, and thiscompany should be a huge help to the states thatcurrently do not have a viable E&O market. I ampleased to announce that Tennessee is one of twostates, the other being Louisiana, to be fully opera-tional with PIAPRO. Utica is still our premiereE&O market, but we felt it was important for us tohave an alternative market for our agencies that arenot a fit for Utica, and we also want to supportNational in this effort to strengthen the PIA pres-ence in more states by giving them another optionto secure E&O business. Please continue to sendSandy Clive your E&O information for quotes, andshe will work with the company that best fits youragency.

I also am pleased to announce the date of PIA’sinaugural SEC Partnership event at the Auburn vs.Vanderbilt basketball game on January 7, 2012 inNashville. We will host a pre-game hospitality suiteat Memorial Gymnasium, and game tickets at a dis-counted price will be available through PIA. Mostanalysts have Vanderbilt as a preseason top 10team. All season ticket packages have been sold-out, so if you want a chance to see a great SEC bas-ketball game, as well as a chance to network withyour colleagues and company personnel, mark your

BY BRENNAN J . PARIS, CIC, CRMEXECUTIVE VICE PRESIDENT

THE TENNESSEE AGENT 9October/November 2011

calendars for this fun event. Watch for more details to comelater this fall.

Lastly, we have rolled out our brand new PIA CompanyPartnership Program. This program has been designed to pro-vide value added benefits to our company partners for theirsupport of PIA Tennessee. There are four levels of partnershipsavailable, with each level outlining more and more benefits asyou go up. The reason for the restructuring of our companymembership is that I want each company to clearly see whatthey get for their financial support to PIA Tennessee, similarlyto our agency members. Under the previous structure a largemajority of the benefits of being a member of the PIA weregeared toward agents, not companies. Therefore we have sep-arated the two, so that we can focus on bringing our companiesitems throughout the year that can make their company suc-cessful in Tennessee and will allow us to continue to evolvemembership benefits to fit your needs and make your agencyfor successful.

This is an exciting time for PIA of Tennessee, so help spreadthe word about what we have going on and please let me knowof any agencies or companies out there that you feel wouldbenefit from being a part of the PIA family. I’ll be happy tomeet with them and let them know why they should belong tothe PIA family! •


A Lesson in LeadershipBY CHARLES MARSHALL

By the late 1970s, Journey ( the band)was pretty much finished. The band

had recorded three albums, all of whichhad been critical successes but marketfailures. They had managed to sell severalhundred albums cumulatively, but in therecording industry, selling one- or two-hundred thousand units per album ispretty much like selling none at all.

At the core of the group were guitaristNeal Schon and keyboardist Greg Rolie.Neal had started his musical career at ayoung age, joining the legendary groupSantana at only 15. Years later, after leav-ing Santana, Neal partnered with his for-mer band member, Greg, to create theirdream band. In its early stages, Journeywas still finding its way, creating songsthat featured expert musicianship ratherthan the song craft for which the bandwould later be known. It seemed the grouphad most of what they needed for successbut, for some reason, fell just short of theirpotential. They were missing some keyingredient.

Meanwhile, in another part of Califor-nia, a young man named Steve Perry hadgiven up on his dream to be a singer. Stevehad been a member of a promising newband named Alien Project, but on the eveof signing a recording contract, the band’sbass player was killed in a car wreck.Steve was devastated and decided to quitthe music business. He moved back hometo work with his stepfather repairingturkey coops to pay back the debts heaccrued recording his demo tapes.

But then Steve got a phone call fromHerbie Herbert, the manager of a strug-gling band named Journey. Herbert con-vinced Steve to give a career in music onemore shot by trying out as the lead singerfor Journey.

Journey members Neal and Greg metwith Steve one afternoon to get a feel forhis style and find out what he had to offer.Afterward, Neal told Herbert that essen-tially he just wasn’t feeling it—that he andGreg didn’t want Steve to join the band.However, Herbert had another opinion onthe matter. He told Neal that it hadalready happened and that Steve was nowin the band. Done deal. Matter closed.

Fast-forward two or three decades, and

Journey has a place with the top-sellingbands of all time. Their music is playedregularly on radio stations all around theworld, and their albums continue to sell ata healthy pace. But none of it would havehappened without the visionary leadershipof their manager, Herbie Herbert.

The way I see it, Herbie Herbert didseveral things right in making the toughdecision to bring Steve into the group.

1. He had a vision. Herbert wanted tocreate one of the best rock and roll groupsin the world and felt that he could assem-ble the talent to make it happen. No busi-ness will move forward unless itsleadership has a vision of what that busi-ness can become.

2. He communicated his vision. Her-bert wasn’t shy about his aspirations forhis group. He constantly communicatedhis passion for the band and his belief inwhat it could become. Any leader whodesires to transition his group from medi-ocrity to greatness needs to constantlycommunicate his vision of that possibilityto his team. Without that communication,the team continues to accept what is rightin front of them as their standard ratherthan the possibility of what lies over thehorizon.

3. He stood by his vision. He madetough decisions to support that vision andthen made those decisions work. Beingvisionary is never easy. If your vision wasobvious to everyone around you, then itwouldn’t be a vision; it would be the norm.Standing by your vision when no one elsegets it is one of the things that separatestrue leadership from aspiring leadership.

When your vision dies, when nobodyelse sees your potential or the potential ofyour vision, how do you react? Do yougive up and go build turkey coops withdad, or do you continue with your visiondespite the odds and opposition?

Great leadership always begins withgreat vision. Give careful consideration toyour vision for your career, community,and business, and be sure to guard it asone of your most precious possessions thatyou take with you on your leadership jour-ney. •© 2011 Charles Marshall; reprinted with permis-sion.

Charles Marshall is a nationally known humor-ous motivational speaker and author. Visit hiswebsite at www.charlesmarshall.net or contacthim by email at [email protected].


Tips to avoid E&Oclaims

BY CURTIS M. PEARSALL, CPCU, AIAF, CPIA

Educate your customers

The insurance industry has someunique terminology, so the possibility

exists that some customers don’t totallyunderstand their policies. It is undoubt-edly better to educate them before theyhave a claim rather than after. Developan education campaign to help your cus-tomers better understand their insur-ance program. There are manyapproaches, including 1) a newsletter inpaper or electronic form; 2) postinginformation on your website; or 3) writ-ing a blog. For many agencies, a bloghas provided tremendous benefit as itshows your expertise and your desire tohelp your customers learn more abouttheir insurance coverages. To developmaterial, start with the questions yourstaff is being asked by your customers.

Staff meetingsStaff meetings are a great way to

address current issues, changes in com-pany binding levels, new coverages,education opportunities, etc. In addi-tion, ask your staff what they may bedoing that could result in an E&O claim,then discuss how to “fix it.” You may besurprised at what you hear. Staff meet-ings present the perfect opportunity tostress key agency practices, such as theimportance of thorough and timely doc-umentation in the files.

Be honest with your carriersThis may sound like common sense

and it probably is. A major element ofthe relationship between your agencyand your carriers is trust. It is critical toprovide your carriers with complete andhonest information. If they ask for fur-ther information, make sure it is truth-ful.

The insured’s signatureThe insured’s signature could make all

the difference. Oftentimes disputes ariseover the accuracy of the information onan application. In such scenarios, a keyelement of the defense can be the pres-ence and authenticity of the insured’ssignature. If the insured has signed theapplication, generally they will be heldresponsible for the content. An unsignedapplication does not carry the sameweight. It is highly recommended thatyou never give the insured a blankapplication to sign and advise them youwill fill it in later. Moreover, never—andI mean never!—sign the insured’s nameeven though you believe you have theauthority to do so.

The mirror testThis speaks to the process your agency

should undertake when you move anaccount from one company to another. Ifyou are considering moving the account,identify and bring to the customer’sattention any coverages they will be giv-ing up with the new carrier. Always gettheir approval and written sign-off. Toperform this completely and accurately,the coverages, limits, exclusions andother key issues of all of the companiesyou are considering should be noted ona spreadsheet and shared with your cus-tomer.

Classification LimitationEndorsement

You need to use the excess and surpluslines marketplace to place some risks.While this segment of our industryserves a vital need, it also has someuniqueness that can spell E&O trouble ifnot properly handled. Many general lia-bility policies written in the E&S market

Mr. Pearsall is president of Pearsall Associates,Inc. and Special Consultant to the Utica NationalE&O Program.


will contain a form/endorsement calledthe Classification Limitation Endorse-ment. When this endorsement is on apolicy, coverage only applies for activi-ties included under the listed classifica-tion. Be on the lookout for this form. Ifit is on the policy, bring it to theinsured’s attention and get theirapproval to proceed.

E&S policy renewalsWhen a carrier reduces the coverage

in the admitted marketplace, they arerequired to send out an advance notice.

However, in the E&S market, carriersare not required to provide advancenotice of pricing/coverage changes onthe renewal. Thus, when you receive therenewal terms from the wholesaler/E&Scompany, carefully review them to iden-tify any changes. Any restrictions/reduc-tions in coverage should be brought toyour insured’s attention.

Agency Procedures ManualThere are many benefits to an Agency

Procedures Manual when the manual iscurrent and effectively used. This man-

ual can be a solid part of an agency’sdefense in the event of an E&O claim,demonstrating that all employees per-form the stated procedures. However,the manual must be current and usedconsistently. An outdated manual orinstances where staff members do notfollow the manual have the potential tosignificantly hurt your defense of anE&O claim.

Cover letterIn most states, the insured has a

responsibility to read their policy and isbound by its terms. To reinforce this,include a cover letter when you send thepolicy to the insured and urge theinsured to fully review the policy—including the declarations and endorse-ments—for accuracy. Include a state-ment noting that the insured shouldimmediately contact your agency if theyhave any questions about the policy’scontents. If you deliver the policy, it isstill advisable to include this cover letter,making sure you bring the letter to theinsured’s attention. Keep the letter gen-eral and do not include a summarizationof the coverages, as this could suggest tothe customer that they do not need toread the policy since the agency has toldthem what’s in it.

Agency promotional materialIn the event of a claim, the plaintiff’s

attorney will review all of your promo-tional material to learn what words youuse and what message you send to cus-tomers. They want to see what they canuse against you. Bottom line, the contentof this material and what you say canhave an impact on how an E&O claim isresolved. Be careful not to words suchwords as “expert” or phrases such as“we make sure you are properly cov-ered.” While these may be solid market-ing phrases, they could be used againstyou should a claim arise.

Accepting payment onsiteIf a customer comes into your agency

to pay their premium, it is strongly sug-gested they meet with the CustomerService Representative/Account Exe-cutive who handles that account to veri-fy its status. There is the possibility theaccount could be in cancelled status andfurther action will be necessary.


Get it in writingCustomers make policy coverage

changes, and while your staff may feelconfident they took down the informationcorrectly, mistakes do occur, and at thetime of a claim your customer could denyrequesting that change. Bottom line: get acustomer’s coverage modification requestin writing. Another approach is sendingthe customer an e-mail recapping theconversation as your agency understoodit. In the written communication, ask thecustomer to contact your agency prompt-ly if their understanding of the conversa-tion is different than yours.

Monthly quality controlAre there mistakes in your files?

Probably. The problem is that you’reunsure which files the mistakes are in. Ifyou knew, you would fix them. Findingthese mistakes oftentimes can be accom-plished using quality control. This QCshould be handled at least monthly andshould involve a random sampling ofeach staff member’s files. Not only mightyou identify a file that needs correction,you also can determine if the work isbeing performed accurately and withinyour agency’s time-period guidelines.Many agency management systems pro-vide the tools to assist with performingQC.

Exposure analysis checklistThis checklist is the closest thing to a

“silver bullet” in avoiding EO claims.For many years, the number one causeof E&O claims has been failure to pro-vide the proper coverage. Exposureanalysis checklists provide a systematicapproach to ensure you are asking yourcustomer the necessary questions toidentify the various exposures. In addi-tion, these checklists contain extensiveinformation for each of the more than650 SIC codes. This will enable yourstaff to essentially become experts invarious coverages and exposures. Withineach class, you have access to a full nar-rative on the exposures. You will be pro-vided with a questionnaire that indicatespertinent questions, plus a client cover-age agreement prompting you to reviewall the coverages and document the finaldisposition. If your customer declines aspecific coverage, you will have concisedocumentation for your file.

Binders and policiesUntil the policy is issued, oftentimes,

the binder will serve as the basis for thesettlement of any claims. Make sure thebinder is completed promptly and accu-rately. When the policy is received,ensure its accuracy and promptly get itin the customer’s hands.

Divorce issuesThese matters require strong focus

because you may be rewriting coveragesfor one or both of the couple. It is keythat you look at the named insureddefinition because most personal linespolicies are based on the named insuredand the residence location. Make everyattempt to meet with each party todiscuss the matter to better understandtheir needs and desires. Your primarygoal is to secure the appropriatecoverage for both parties with noreductions.

Fax transmissionsThis tip is easily implemented. When

sending a fax, keep the original copy ofthe cover sheet showing that the fax wasaccepted by the other party. In the eventof a problem, this document could beimportant in proving what you sent,when you sent it and to whom. The mostcommon problem seems to arise when afax is sent binding coverage and there isa claim early in the policy period. Theother party may state they have norecord of receiving the fax and thus cov-erage is not considered bound.

Valuation calculationsIn reviewing E&O claims involving

property, the majority allege the agentdid not correctly determine the properlimit and thus, at the time of the loss, theinsured did not receive a proper settle-ment. If it is necessary for you to do thecalculation, precision with all necessaryinformation is required. Also beneficialis including a disclaimer that the valuecalculated is based on the informationprovided and is not a guarantee thatlosses will be fully paid. It also is appro-priate to include in the disclaimer thatengaging a property appraiser is themost reliable way to calculate replace-ment costs for buildings and other struc-tures.

Carriers ratingsYour agency should have a guideline

for the rating of carriers (includingE&S) with which you will do business.Many agencies require A- or better.Have a designated person assigned toperiodically check carriers’ ratings.They can check monthly or subscribe toa service that alerts the agency tochanges. Carrier ratings do change, anddon’t expect the marketing representa-tive to tell your agency that their compa-ny’s rating has dropped. If the ratingdrops below a set corporate level (orbecomes an NR rating), consider notify-ing your customers of this new ratingand tell them what it means. There maybe situations where you want to advisethe customer that you strongly recom-mend replacing the coverage.

Document, document, documentWhile this is the last of the tips, it is by

far the biggest issue impacting the direc-tion in which an E&O claim will go. Isyour file well documented or is the doc-umentation somewhat sparse andsketchy? Use your agency staff meetingsto stress the importance of timely andaccurate documentation. Items to coverinclude:

Customer interactions—Without doc-umentation, it’s just hearsay.

Requests to modify coverage—Pullthe file to ensure you fully understandthe request. Get the request in writing orsend the customer an e-mail document-ing what they requested. This will helpalleviate any misunderstandings.

Phone calls, including cell phones—Producers or anyone in the agency witha cell phone should be required to docu-ment any key business conversations inthe agency management system.

Declined coverage—When a customerdeclines a specific coverage, get thatdeclination in writing. Once again, thiswill serve as vital protection should aclaim arise down the road and the cus-tomer disavows declining the coverage.

Implementing these 20 tips willimprove the professional liability cultureat your agency. This could help reducethe likelihood of E&O claims againstyou and help provide an effectivedefense if a claim does occur. •


pCalendar of EventsP I A L O C A L C H A P T E R M E E T I N G S

• East TennesseeContact Ron Welch, 865/689-6254

• MemphisSecond Tuesday of every month in MemphisContact Steve Peay, 901/766-0200

• NashvilleNov. 3, 2011Contact Tina Hutsenpiller, 615/773-2886

7 7 T H A N N U A L C O N V E N T I O N &T R A D E S H O W

• July 30-August 1, 2012Lowe’s Vanderbilt HotelNashville

Classroom Education

Online Education

CPIA INSURANCE SUCCESS SEMINARS

• CPIA 3November 3, 2011 in Nashville8 hours C.E. credit

P R E - L I C E N S I N G E D U C AT I O N

• Property & Casualty, Life & Health,Series 6 & 63Online study or traditional self-study manual

T R A I N I N G F O R N E W E M P L O Y E E SFor employees with less than 12 months

experience

• Agency Orientation

• Delivering Quality Service to theCustomer and the Employer

• Personal Lines Coverage Basics12 hours C.E. credit

• Commercial Lines Coverage Basics12 hours C.E. credit

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

• CEU.com (The American Institute forCPCU)Approved in all 50 states and D.C.Available 24/7

• Learn.net (PIA National)Tennessee-specific courses; 12 hours for most.Ethics, flood, E&O, healthcare reform, longterm care partnership, and more.

D E S I G N AT I O N P R O G R A M S

• Personal Lines Coverage Specialist(PLCS)

• Commercial Lines Coverage Specialist(CLCS)

To register for education or to find out additional information, logon to www.piatn.com/education.

2 0 1 1 E D U C AT I O N PA R T N E R SAccident Fund of America • Arlington-Roe • Bolton & Co. • Grange Insurance

PIA Advantage Services Corp. • ServPro • U.S. Risk Insurance Group • Utica National Insurance Group


PIA National has published the 2011 edition ofits annual Agency Marketing Guide. This edi-

tion contains hands-on marketing advice fromexperts in and outside of the insurance industry.The focus is on how agents can market their servic-es using the Internet. The guide offers specifics foragents who want their agencies to be better posi-tioned on search engines and who want to maketheir agency website more sales focused.

“The Internet has greatly changed howAmericans look for information,” said FredThomas, immediate past PIA National president.“Although insurance buyers overwhelmingly preferto purchase their insurance through a local insur-ance agent, they increasingly find that agentthrough the Internet.”

“Today’s insurance marketplace requires thatagents remain nimble,” said Alexi Papandon, assis-tant vice president of communications for PIANational. “They must be willing to embrace changeon an ongoing basis. Those that do will be able toprovide the conveniences and accessibility that theInternet makes possible, while providing the per-sonal attention and expertise one can only getthrough a local, professional insurance agent. Theseagents will be greatly empowered and will experi-ence great success going forward.”

Excerpts from some of the articles in the 2011Agency Marketing Guide follow.

Time to Get Your Agency Online“Many businesses today have adopted an Internet

marketing strategy because they recognize that thepurpose of a web site is to let potential customersknow they exist. Web sites increase visibility andgive you the opportunity to build your businessbrand and differentiate yourself from the competi-tion. It’s very likely that prospects may want toknow more about you, your philosophy, and youbusiness before they meet with you.”—PaulPeterson, president of Emerald Connect.

The Five Biggest Mistakes Made inManaging Internet Leads

“With over 75 percent of today’s insurance con-sumers beginning their search for insurance online,we must be successful in marketing online if weexpect to stay in business.”—Carl Moulton CPCU,CLU, ChFC, co-owner of Insurance Agent InternetMarketing Systems (IAIMS), Inc.

Making Internet Lead Marketing Work foryour Agency

“Over the past few years, many independentinsurance agents have begun purchasing, or haveconsidered purchasing, Internet leads to help fill thepersonal lines prospect pipeline and grow theirbusiness… As with any prospect source, it’s impor-tant to remember that you’re buying an opportuni-ty, not a sale. Agents must have a process in theiroffice for working the leads in order to be success-ful. Online leads require a disciplined contact strat-egy to maximize success.”—Alexi Papandon, assis-tant vice president of communications for PIANational.

The Secret to Sales: Marketing thatWorks

“Marketing is the dynamic communication to andfrom a carefully selected target population ofprospective clients. Here we clearly outline the solu-tions we have developed to solve their unique prob-lems, and most importantly we let them know whowe are, not just what we do.

“Sales on the other hand are the tactics and pro-tocols we go through to complete the value for valueexchange. This is where you open and close thedeal. This you know how to do well, if you get thechance!”—Phil Beakes, 32-year veteran of theinsurance business who recently has returned to theagency side of the business to lead AssociatedInsurance Services in Westlake, California.

Agency MarketingGuide focuses onInternet marketing


Win Business with ContentMarketing Campaigns

“In this competitive environment,driving organic growth and standing outfrom the competition means more thanjust regularly reaching out. It meansgoing even further to ensure that eachtime you do reach out, you provide valuethat clients and prospects can’t livewithout. Bottom line? Your communica-tion has to mean something to yourclient or prospect…meaningful contentthat directly speaks to those needs keepsan agent in front of prospects or clients,creating legitimacy, increasing brandloyalty and facilitating cross-selling.”—Dave O’Brien, executive vice presidentand chief marketing office of Zywave,Inc.

The Agency Marketing Guide is apiece of the overall PIA branding pro-gram, Local Agents Serving Main StreetAmerica(SM). The branding programextends the reach of professional, inde-pendent insurance agents into theircommunities with an advertising andpromotional campaign that highlightswhat agents bring to the table. In addi-tion to the Agency Marketing Guide, theprogram includes print advertisementsin English and in Spanish, radio ads inboth languages, and the PIA logo utiliz-ing the Local Agents Serving Main StreetAmerica wording.

It also includes the 2010 AgencyMarketing Guide, which focused on theuse of social media to support anagency’s sales strategy. In August 2011,PIA National was awarded the APEX2011 Award of Excellence for the 2010guide. The award was “based on excel-lence in graphic design, quality of edito-rial content and the success of the entryin conveying the message and achievingoverall communications effectiveness.”

Print and radio pieces of the brandingprogram are free to PIA members. Boththe 2011 and 2010 guides are availablein print and as an electronic document.For more information on how to sign upto begin using the Local Agents ServingMain Street America branding tools,contact PIA of Tennessee by email [email protected] or by calling the officeat 615-771-1177. •

PIA of Tennesseethanks PIA Trust

for itsSapphire

Sponsorshipat the 2011

Convention &Trade Show


News from NationalPIA National held its fall meeting in San

Francisco September 24-25. Representing PIAof Tennessee were National Director June Taylorand Executive Vice President Brennan J. Paris.

2011-12 of ficers installedPIA National officers who comprise the Executive

Committee were sworn in September 25 in SanFrancisco during a board of directors meeting. Eachwill serve a one-year term from October 1, 2011through September 30, 2012. The new officers are:

Thomas C. Adderhold, president; Andrew C.Harris, president-elect; John G. Lee, vice presi-dent/treasurer; Richard A. Clements, secretary/assistant treasurer; and Fred Thomas, immediatepast president. The PIA board confirmed the suc-cess of the officers, and Clements was elected unop-posed.

Excellence in Social Media awardMark Suhr, a PIA member from Seward,

Nebraska, received the 2011 Excellence in SocialMedia award. The award is presented to honor amember who is on the cutting edge of using socialmedia in their business. Mr. Suhr has taken whathe calls the “community approach” to social net-working. When his agency started using Facebook,it was uncharted territory. People in his communi-ty who were older than college-age were justgetting into it. So his strategy was to help in thedevelopment of Facebook pages by people in hisarea, not just putting up his own page andhoping others joined in. His Facebook page iswww.facebook.com/suhrlichty.

Westfield Insurance named Company ofthe Year

The PIA National Company Award of Excellencehonors a company for its commitment to PIA, tothe American Agency System and to furthering theinterests of professional insurance agents by creat-ing a better business environment.

This year’s award was presented to WestfieldInsurance. “Westfield Insurance is a market leaderand an ardent supporter of the agency system.Westfield Insurance views its agents as true busi-ness partners, providing them with an excellentproduct portfolio, combined with unparalleled sup-port that agencies can use to build their success,”said PIA National President Fred Thomas, whopresented the award.

“Our Westfield mission is to provide peace ofmind to consumer and our agents. We do that bysharing knowledge about managing risk throughour insurance products and services,” said JimClay, Westfield Group Chief Executive Officer.“The advice and counsel of a professional inde-pendent agent is essential for consumers to makingsound decisions about their protection. We partnerwith many of the best agencies, and they are anintegral part of our Westfield value proposition.”

J.M. Wilson named MGA of the YearThis award recognizes outstanding achievement

in furthering the interests of agents, a commitmentto the agency system and successful efforts to cre-ate a better business environment for professionalinsurance agents.

“Team members from J.M. Wilson are alwaysasking how they can be involved to help agentsbuild strong agencies,” said PIA NationalPresident-elect Thomas Adderhold, who presentedthe award. “Their motto is ‘Relationships—It’s whywe stand out from the crowd.’ And each of theiremployees lives out this motto—developing solidrelationships with agents and with PIA.”

J.M. Wilson Corporation writes commercialtransportation, professional liability, property/casualty, personal lines and surety for independentagents in 24 states. It is a third generation MGAand surplus lines broker with offices in eight states.

Company Rep of the YearEdward J. Fernandez, president of the Palisades

Companies which is part of the Plymouth RockAssurance of New Jersey, was named CompanyRepresentative of the Year.

“Throughout his career, Ed has always been anoutspoken advocate for professional, independentinsurance agents,” said Andrew J. Harris, PIA vicepresident/treasurer, who president the award. “Hehas implemented programs to assist agents andmake sure they are full partners in the decision hemakes.”

Mr. Fernandez has 35 years of experience in theproperty/casualty insurance industry. Prior toPlymouth Rock he was with Chubb Insurance foralmost 20 years, holding several management posi-tions. He developed a strong track record for prof-itable growth and innovation and a reputation as astrong supporter of the independent agencysystem. •


Tech Bit

Windows PCs seem to develop plaqueover time (Mac computers may also, I

just don’t have experience with them). Thevisible result is your PC seems to run slowerover time. That plaque is the result of the var-ious programs the average user installs,knowingly or unknowingly, while using thePC. Updates, website add-ins, etc. all add

software to your PC.By far the cleanest

solution is to back upeverything, erase yourhard disk, reinstallWindows and the applica-tions, and restore yourdata. But for many PCusers, finding all theinstallation CDs can bechallenging enough tokeep them from doing areal scrubbing.

There are a number offree tools to let youaddress some of the issues(e.g. registry bloat, harddrive fragmentation, etc.)that I’ve written about inthe past. Way back at thebeginning of this “TechBit” series, I wrote abouta commercial all-in-onesoftware package calledSystem Mechanic, then atversion 7. Its advantage isit combines a number ofseparate functions into asingle software package

that simplifies tuning up your system withoutresorting to scrubbing it.

I have System Mechanic 10.5 on my note-book computer. It has found 844 unused reg-istry entries I didn’t need, a bunch of systemclutter, optimized my hard disk and general-ly cleaned up my system. Since benchmarksin the real world don’t really measure per-formance in normal usage, I didn’t run beforeand after benchmarks. What I can report isthe system is perceptibly fast and I think a bitmore stable (I haven’t seen a mysterious crashone of my applications had occasionally sinceI’ve done the System Mechanic cleaning ofmy system).

If I have any complaint, and this is trueabout more and more software, is that SystemMechanic assumes during installation thatyou want it to run and keep cleaning up allthe time. I find that frustrating if for no otherreason that every program running takes alittle bit of the computer’s RAM memory andprocessor time, effectively slowing down thecomputer a little. As an example Adobe hasan program that runs all the time just tocheck for updates. While System Mechanichelps with disabling some of those “redun-dant” programs, it replaces them with itself.

If you are not a computer geek, having aprogram like System Mechanic to help opti-mize your system is a good idea. •

Gregg Marshall, CPMR, CSP, is a speaker,author and consultant. He can be reached by e-mail at [email protected], or visit hiswebsite at http://www.repconnection.com.

BY GREGG MARSHALL

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PIA BoostersPIA thanks our Agent and Booster advertisers! For advertising information, fax theTennessee Agent at 615/771-3456.

vP.O. Box 270Columbia, Tennessee 38402800/346-6071800/296-0419 faxTom Wilson, Marketing

3200 West End Ave.Nashville, Tennessee 37203888/432-9488 ext. 3371423/591-9337 faxKaren Tidwell, CPIA

Farmers Mutual ofTennesseeP.O. Box 3428Knoxville, Tennessee 37927865/523-5153Gordo Watson, CIC

504 Autumn Springs Court, A-2Franklin, Tennessee 37067

Tennesseeagentthe

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