The Tennessee Insuror Jan/Feb 15

10INSURORTHE TENNESSEE

January/February 2015 Vol. 26 No. 1 12

Agency Growth Conference

2015

48Revisiting the

Dodd- Frank Act

A Rejection Form, A

Rejection Form...

www.insurors.org

Stepping UpMeet the Volunteers Leading Your Association for 2015

AGENCYGROWTHCONFERENCEMARCH 10-11INFO INSIDE

2 The Tennessee Insuror

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contents

INSURORS OF TENNESSEE2500 21st Avenue South, Suite 200

Nashville, TN 37212-0539www.insurors.org

THE TENNESSEE

INSURORVol. XXVI, Number 1

January/February 2015

Phone (615) 385-1898Toll Free: 1-800-264-1898Email: [email protected]

Editor: Charles T. Bidek, CPCUPublisher: Daniel D. Smith, Jr.

INSURORS OFFICERSPresident ......................................................... Cindi Gresham, CICImmediate Past President ..................................... Lou Moran IIIIIABA National Director ................................................ Brad SmithVice President, Region I ..................................... Chris Allison, CIC VP, Region II and Pres. Elect .... Christie Reeves, CIC, CPCU, CPIW Vice President, Region III ................................. John McInturff IIITreasurer .............................................. Battle Bagley III, CIC, CPASecretary ...................................................................... Rush PowersDirector, Region I ....................................................... Portis TannerDirector, Region I ...................................................... Edward KaiserDirector, Region I .......................................................... Tim RobertsDirector, Region II ....................................................... Chip FridrichDirector, Region II .................................................... Joe Lester, CICDirector, Region II ................................................. Steve CopelandDirector, Region III ..................................................... Kevin OwnbyDirector, Region III ............................................ Josh Gibbons, AAIDirector, Region III .................................................... Eric CampbellYoung Agents Chairperson .................................... Stuart Oakes

ADVERTISINGDisplay advertising rates, deadlines and specifi-cations may be obtained by writing to Insurors of Tennessee, 2500 21st Avenue South, Suite 200, Nashville, TN 37212, calling 615.515.2601, e-mailing [email protected] or online at

www.insurors.org

The Tennessee Insuror is provided to all Insurors of Tennessee members and associate members

as a member service.

3

features

departments

10 Revisiting the Dodd-Frank Act A New Political Tug-of-War

12 Agency Growth Conference 2015

14 Daniel Learns About Insurance: ...Movie Gets Hacked Cyber Risks Are Out There on Every Scale

48 A Rejection Form... My Kingdom for a Rejection Form!

21 From Your President Goals - It’s Our Association

23 From Your Young Agent Chair Overcoming Objections for Our Future

25 From Your CEO The Truth About Insurance Ads

29 Education Calendar

31 Government and Legal Affairs

37 Program Spotlight InsurPACTN

39 Company Spotlight Work At Home Vintage Employees - WAHVE

41 Company Briefs

51 Meetings

53 Member Tips Protecting Clients from UM

4 Stepping Up Meet the Volunteers Leading Your Association for 2015

Applied UnderwritersTennessee Insuror Back Page Ad

Live 8” x 10.5”Trim 8.5” x 11”

Bleed 8.75”x 11.25”

AU N Yosemite TI C4

Contact: Sheila Gallagher P: 707-395-0645 Email: [email protected]

Applied Underwriters

©2015 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide.

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The success of Insurors of Tennessee is built on its members. And the members who volunteer their time and talents to help lead the organization are critical to that success. We are lucky to have a group of community and industry leaders who have stepped up to serve the Association for 2015. Please take a moment to read this article and learn about your volunteer leaders. If you have thoughts, concerns or questions about In-surors and how we can better serve members, please contact one of your member-elected representatives. And if you have the opportunity, please thank them for their service to our Association.

Cindi Gresham, CICPRESIDENTCindi is the President of Boyle Insurance Agency in Memphis, and serves as Insu-rors President. After moving to Memphis from her hometown of Columbus, Ohio, she graduated from Overton High before attending Memphis State University. She

started her insurance career in 1973 with George Holley In-surance, then moved to Carruthers Harris Agency in 1979. In 1987 she started with Boyle and has been there ever since. In addition to her work with Insurors, Cindi is a supporter of vari-ous senior and youth organizations, University of Memphis athletics and formerly served as president of the Insurors of Memphis local board. Cindi has two sons, Brad and Kyle, and

Stepping Up

Meet the Volunteers Leading Your Association for 2015

six grandchildren. She attends Collierville UMC and resides in Collierville with her husband, Rocky.

Lou Moran IIIIMMEDIATE PAST PRESIDENTLou is the president of Inter-Agency Insur-ance Service in Knoxville, and serves as the Immediate Past President of Insurors. He grew up in Knoxville, attending the Webb School and UTK. He began working at In-ter-Agency, which his father founded, in

1985 and has been there ever since. Over his insurance career, he has completed many industry schools, including Safeco Personal & Commercial Lines schools and Drake University’s Insurance School. Through his career, he has served on mul-tiple Insurors committees, was a Board member in 1996 and again from 2002-2004. In addition, he served as President of the Insurors of Knoxville local board in 1996. He was named Young Insuror of the Year in 1994 and Insuror of the Year in 2006. Outside of his work with Insurors, Lou is very active in his community, having served on Board of Directors for the Tennessee Stage Company, RiverFest BBQ Contest, ArtFest, Leadership Children’s Hospital, Knoxville Area Chamber Part-nership, ChildHelp Tennessee, Leadership Knoxville and Webb Alumni Council, among others. He currently lives in Knoxville with his wife, Mimi, and their two children, Lou IV, a student at Webb, and Emily, a Freshman at UTK.

5The Tennessee Insuror

Christie Reeves, CIC, CPCU, CPIWVICE PRESIDENT OF REGION II AND PRESIDENT-ELECTChristie is the Area Senior VP and Client Service Director of Arthur J. Gallagher in Brentwood and serves as the Vice Presi-dent of Region II. After graduating from Hillcrest High in Memphis, she earned her

Bachelor of Science degree from the University of Tennessee at Knoxville in 1973. She worked with three major carriers in the industry before joining Gale Smith & Co. in 1987. In 2008, Gale Smith was acquired by A.J. Gallagher, and Christie was added to the local management team. She previously served on the Board as a Director, Secretary and was named Insuror of the Year in 2003. In 2012, she was inducted in to the Tennes-see Insurance Hall of Fame. In addition to her work with Insu-rors, she is a past president and board member of the Middle Tennessee Chapter of CPCU, a member of the MTSU Insurance Liaison Committee, a member of the stewardship committee at her church and program liaison for girls at Nashville Juve-nile Justice Center. Christie and husband Durl live in Nolens-ville and have two daughters, Emily and Elissa.

John McInturff III, ARMVICE PRESIDENT OF REGION IIIJohn is a principal at McInturff, Milligan & Brooks in Greeneville and serves as the Vice President of Region III. A Greeneville native, John graduated from Greeneville High School in 1981. He attended the Uni-versity of Tennessee in Knoxville, earning

his B.S. in Business Administration in 1985. He began his insur-ance career with USF&G in 1986 and joined Bennett and Ed-wards in 1988 where he later became president. In 2006 Ben-nett and Edwards merged with McInturff, Milligan & Brooks to form the current agency. John’s contributions to Insurors include serving as Young Agents Chair, Director of Region III and Secretary. In addition to his involvement with Insurors, John is a past President of the Kingsport Jaycees, President of the HVFC Soccer Club and has been involved with Junior Achievement of Tri-Cities, the Downtown Kingsport Rotary Club, and is a member of First Presbyterian Church. He and his wife Tonya reside in Kingsport and have two children, Lau-ren and Lindsey.

Chris Allison, CICVICE PRESIDENT OF REGION IChris is a principal agent with The Allison In-surance Group, Inc., in Jackson, and serves as Vice President of Region I. He received his Bachelor’s degree from Union Univer-sity in Jackson, and began his insurance career in 1990. He received his CIC certifi-

cation in 2008. He formerly served Insurors as Young Agents Chair, Secretary and a Director of Region I. A true believer of community involvement, Chris is a member of the Rotary Club, serves on the Boards of the Jackson State Community College Foundation and the Exchange Club Carl Perkins Cen-

ter for the Prevention of Child Abuse, and serves on the Union University Business School Advisory Committee. Past involve-ment includes Northside United Methodist Church Trustee and Chair of the Trustees, Rotary Club Board, Jackson Cham-ber of Commerce Board and Committees, Leadership Jackson Alumni Association Board, Boys and Girls Club Board and past Chair, along with many other community related groups and events. Chris now lives in Jackson with his wife Suzanne, and their daughter Ashlee.

Brad SmithIIABA NATIONAL DIRECTORBrad is the principal agent of Smith-Ber-clair Insurance in Memphis, and serves on the Big “I” national board as our State National Director. After graduating from Overton High in Memphis and earning his B.A. degree from Union University in Jack-

son, he spent 3 years teaching and coaching before joining his father at Cecil Smith Insurance Agency. In 1998, he was named president of the agency. His previous work on the Insurors Board includes serving as Young Agents Chair and as President in 2006. He also served as a Director, Secretary and Vice President of Region I for a total of 12 years. He was honored with the Insuror of the Year Award in 1992, the Big “I” Barney Burns Award in 2013 and twice won the Insurors Chairman of the Year Award. He is a past president of Insu-rors of Memphis, a past chairman of the Southern Agents Conference a former ACT committee member, and currently also serves on Board of Directors for Trusted Choice. Active in his community, he serves on the Board for the Liberty Bowl Festival Association and served several years as Chairman of the Liberty Bowl Awards Luncheon. Brad is a college football official for Conference USA, now as an instant replay official, and was President of the Conference USA Football Officials Association. Brad was selected to officiate the 2001 Army-Na-vy game and many bowl games over the last 30 years. He and his wife, Cathy, have two sons, Kurt and Kevin. He is also active in Grace Evangelical Church, where he serves as an Elder.

Rush Powers Jr.SECRETARYRush is the principal agent of Burke, Pow-ers and Harty in Bristol, and serves as the Board Secretary. He was born in Knoxville and returned to his parents’ hometown of Bristol when he was three. He went to Ten-nessee High School in Bristol and gradu-

ated from Mercer University in Macon, GA in 1978. In 1979, he started his insurance career as an underwriter for USF&G, and in 1982 he returned to his family’s agency. He has served on local boards of the Girls Club and the Red Cross. He formerly served as a Director of Region III for the Association. He cur-rently volunteers as an elder at Central Presbyterian Church in Bristol, VA. Rush and his wife Lea, who serves as the May-or of Bristol, have three children. Ben, a Law Clark for Judge Mark Fishburn in Nashville, and twins, Elise and Andrew, who joined the agency in 2011 after finishing UT. Elise’s husband,


Charlie Taylor, has also been working as a producer in the agency since 2011, and their first child, Charles, was just born in September of 2014.

Battle Bagley III, CIC, CPATREASURERBattle is a principal agent of Bagley & Bagley in Fayetteville, and serves as Board Treasurer. He earned his BBA in Accounting from Middle Tennessee State University in 1982. After college, he worked for the ac-counting firm William Puryear & Company

until 1987 when he joined Bagley & Bagley. He is now a CIC as well as being a CPA. He formerly served as a Director of Region II for the Association. In addition to his work with In-surors, Battle is a board member of the Fayetteville/Lincoln County Industrial Development Board and a former board member of the Motlow College Foundation, Lincoln County Museum, and Fayetteville/Lincoln County Chamber. He and his wife Angela have three children, Battle Bagley, IV who lives and works in Chattanooga, Samantha who lives and works in Fayetteville, and their son John Robert who lives with his par-ents in Fayetteville.

Ed KaiserDIRECTOR OF REGION IEd is the principal agent of Jamieson & Fisher Insurance in Covington and serves as a Director of Region I. He is a native of Memphis and graduated from Christian Brothers High School before obtaining his Finance Degree from the University

of Tennessee. After spending ten years in the commercial banking field, Ed started his career in insurance in 1997 at Jamieson and Fisher, which is over 107 years old. In addition to his work with Insurors, he is very active with the St. Louis Catholic Church and School. Ed now resides in Memphis with his wife Ashley and their children, daughters Gray and Mag-gie and son Kert.

Tim RobertsDIRECTOR OF REGION ITim is the principal agent of Carnal-Rob-erts Agency in Lexington and serves as a Director of Region I. He attended Jackson Central Merry High School and UT-Martin before joining Pat Carnal Insurance Agency in 1979. He then became a partner in 1982

before becoming principal in 2009, the same year the Glenn Kirk Agency was merged to the business. He also serves his community as chairman of the board for Community Bank, a former chairman for the Henderson County Chamber, and former board service for Henderson County Exchange Club Carl Perkins Child Abuse Center, Crime Stoppers, Lions Club, Young Insurors and First Bank. He and his wife Deborah are members of First United Methodist and reside in Lexington. The have one son, Cody and enjoy their time at their second home on the Tennessee River.

Portis TannerDIRECTOR OF REGION IPortis is the Chief Operating Officer of Westan Insurance Group in Union City, and serves as a Director of Region I. He was born in Charleston, South Carolina, but grew up in Union City, graduating high school there before moving to Nashville to

attend Belmont University. He received his Bachelor of Arts degree and moved to Sydney, Australia to work for FedEx Australia. He returned to Nashville in 1997 and began work-ing with Curb Music/Curb Records. In 2007, he returned to the family business and moved home to Union City. Active in groups including the Society of Leaders in Development and the Crohns & Colitis Foundation of Middle Tennessee, Portis now serves in Leadership Obion County and on the Board and as a past president of the Boys & Girls Club of Northwest Ten-nessee. He is married to Cindy Counce Tanner and has two children, son Beck who is eight and daughter Edie who is five.

Joe Lester, CICDIRECTOR OF REGION IIJoe is the President of Lester, Greene & Mc-Cord Insurance Agency in Tullahoma, and serves as a Director of Region II. He is a 1972 graduate of the University of Tennessee at Knoxville with a B.S.B.A. degree. He is the general manager of Harton Realty Com-

pany, and he serves on the boards for Southern Community Bank, UT Development Council and Harton Regional Medical Center. He also is a past president of the Tullahoma Chamber, Rotary Club, School Board and currently serves as president of the Tullahoma Educational Foundation for Excellence and as a trustee for First United Methodist Church. Joe is also a 3-Palm Eagle Scout recipient. Joe and his wife Ann reside in Tullahoma, and have three daughters, Elizabeth, Mary Lam-beth and Natalie and three grandchildren.

Steve CopelandDIRECTOR OF REGION IISteve is the Owner of Cumberland Insur-ance Agency, with locations in Cookeville, Sparta, Smithville, Jamestown and Mt. Juliet. He serves as a Director of Region II. He was born in Livingston and raised in Cookeville, where he graduated from Ten-

nessee Tech University in 1986 with a Bachelor of Science de-gree in Business Administration. He started his insurance ca-reer by working as a mutli-line claims adjuster at Crawford & Company for ten years. In addition to his work with Insurors, he has served on the boards of the Upper Cumberland Educa-tion Foundation for Cookeville campus of Nashville State Com-munity College, Public Building Authority, Upper Cumberland Home Builders Association, Putnam Co. Habitat for Humanity, Putnam County YMCA and is a past president of the Knoxville Claims Association. He and his wife Vickie live in Cookeville and have three children, 24-year old twins Jessica Lee and Kayla Ann, who works in the agency, and son Michael.


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Chip FridrichDIRECTOR OF REGION IIChip Fridrich is the President and CEO of Fridrich, Pinson & Rothberg in Nashville, and serves as a Director of Region II. He is a graduate of Montgomery Bell Academy and Vanderbilt University. While at Vander-bilt, he was a scholarship baseball player

for the Commodores as a pitcher and was named Academic All Southeastern Conference during his senior season. Upon graduation in 1990, Chip attended the USF&G Commercial In-surance School in Baltimore, Maryland and then joined the agency. Chip is a Past President of the Insurors of Nashville. He has remained active in the sports community coaching youth sports and broadcasting sporting events on both local radio and regional/national television. In addition, he is a certified SPIN instructor and leads various classes weekly at the local Green Hills YMCA. He is also an ownership partner in Fridrich & Clark Realty, the agency’s sister firm, and is a licensed affili-ate broker and designated Realtor. Chip is married to the for-mer Heather Knapp. They have three young children – Han-nah, Gerald Dowden Fridrich III (Dowden) and Lewis – and attend St. Henry Catholic Church.

Josh Gibbons, AAIDIRECTOR OF REGION IIIJosh is President of Watauga Insurance in his hometown of Johnson City, and serves as a Director of Region III. He graduated from the University of Kentucky with a Bachelor of Business Administration de-gree before starting his career as a Person-

al and Commercial Underwriter with Cincinnati Insurance in 1998. In 2001, he returned to Johnson City to work at the fam-ily-owned agency. In addition to his work with Insurors, Josh is the immediate past Chief Volunteer Officer of the Johnson City/Washington County Boys and Girls Club, and serves as President on the Board of Directors for Central Baptist Church in Johnson City. He currently lives in Johnson City with his wife Lisa and their three children, Marisa, Grant and Corinne.

Kevin OwnbyDIRECTOR OF REGION IIIKevin is a co-owner of Ownby Insurance Service, Inc., in Sevierville, and serves as a Director of Region III. A 1992 graduate of Sevier County High School, Kevin went on to obtain his Bachelors degree in Finance from the University of Tennessee in 1997.

He has been with the family agency for over 15 years, where he is now a third-generation owner. He previously served two terms on the Board as Young Agent Chair. In addition to his service to Insurors, Kevin volunteers on the Board for the Boys and Girls Club of the Smoky Mountains and served as chair-man of the One Campaign for the Boys and Girls Club’s an-nual fundraising efforts. He is also a life-long member of First Baptist in Sevierville, where he lives with wife Brooke and their children Kendall and Braden.

Eric CampbellDIRECTOR OF REGION IIIEric is the Vice President of P&C Operations for Reliance Partners in Chattanooga, and serves as a Director of Region III. A native of Tupelo, Mississippi, he moved to Geor-gia at an early age and has been living in Chattanooga for most of his adult life. He

graduated from the University of West Georgia with a BS in Business Administration and Management. He began his in-surance career with First Tennessee/First Horizon in 2004, and later worked as a risk manager in logistics before joining Reli-ance in 2013. He is currently the president of the Insurors of Chattanooga and also serves the community as a partner of the Austin Hatcher Foundation. He and wife Meghan enjoy photography and live in Chattanooga with their seven year old daughter Madyson.

Stuart OakesYOUNG AGENTS CHAIRStuart is a Producer in the Construction Division of TIS Insurance Services of Knoxville, and is the Young Agent Representative to the Board. A Knoxville native, Stuart is a graduate of UTK and is very involved in his community, serving on the Advisory Board

of the Boys and Girls Club of the Tennessee Valley for the last four years. He also started an event for the group, called “Boys Night Out,” and currently serves as chair. He is currently serving a three year term as a Chancellor’s Associate for the University of Tennessee, and recently began serving on the Executive Committee of the Friends of Tennessee Babies with Special Needs. He is an alumni, former coach and supporter of Knox Youth Sports. He and his family are active members of St. John’s Episcopal Church in Knoxville. He and his wife of three years, Mary Bailey, just welcomed their first child, James Carmichael Oakes, in October of 2014.

Board ContaCt InformatIon

Cindi Gresham • 901.766.4298 • [email protected] Moran • 865.637.4519 • [email protected]

Christie Reeves • 615.377.5112 • [email protected] McInturff • 423.230.2247 • [email protected]

Chris Allison • 731.668.8444 • [email protected] Smith • 901.753.4323 • [email protected] Powers • 423.764.2112 • [email protected] Bagley • 931.433.3933 • [email protected]

Ed Kaiser • 901.476.8644 • [email protected] Roberts • 731.968.6649 • [email protected]

Portis Tanner • 731.885.5453 • [email protected] Lester • 931.455.3453 • [email protected]

Steve Copeland • 931.372.1222 • [email protected] Fridrich • 615.327.0105 • [email protected]

Kevin Ownby • 865.453.1414 • [email protected] Gibbons • 423.929.7103 • [email protected] Campbell • 877.668.1704 • [email protected]

Stuart Oakes • 865.691.4847 • [email protected] u


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In 2008, the financial crisis unfolded and, understandably, reaction to the potential failure of financial institutions was swift and visceral. In the period that followed politicians, con-sumer groups, media and the public at-large moved in unison to see legislation passed to avoid another crisis. That was a logical reaction, quite frankly. But as the fear-based move-ment gained momentum the uglier side of politics took over. A cozy collaborative unfolded of Washington bureaucrats who joined forces with members of Congress who sought to be heroes in the eyes of taxpayers, and together they moved the Dodd-Frank legislation forward.

It was easy to combat any resistance by labeling any oppos-ing thoughts as being “in bed with Wall Street,” and the law was passed under the auspices of solving “too big to fail” and excesses in the financial system which imparted risks to tax-payers. Once the 2,000 page law was passed regulators took over, generating thousands more pages for 398 rulemaking requirements proscribed by the legislation.

In the years that have ensued, bankers have been struggling to keep up with the multitude of unintended (or perhaps “in-tended”) consequences that have made it difficult to conduct business, serve customers, and attract investors to the United States’ banking system. As anecdotal evidence of banks’ hav-ing to curtail options for consumers and publicized instances of absurdly complicated regulations have emerged, some opinions are moderating on the matter of legislative and regulatory overkill. Buoyed by a congressional shift in the No-vember 2014 elections, debate is shaping up in the halls of Congress to address some of the more onerous and obvious misgivings of Dodd-Frank.

Unfortunately, in December of 2014, Citigroup and their Wall Street peers used their influence to get the 2015 Omnibus Appropriations Bill amended to include a repeal of a portion of Section 716 of Dodd-Frank which limits the use of deriva-tives. While the merits of the amendment are debatable, re-grettably, it has managed to paint the super-villainous Wall Street banks as the face of Dodd-Frank reform, when there are many needed amendments that have much more merit. As Frank Keating, President and CEO of the American Bank-ers Association recently noted, there are other areas such as qualified mortgage rules and regulatory definitions of rural and underserved areas that community banks desperately need addressed in order to serve their customers’ needs.

Politics May Impair Needed Change

In light of the Section 716 amendment, further efforts to fix

Dodd-Frank are likely to become highly politicized. Media outlets are already drawing on party lines as a recent USA To-day editorial painted the banking industry with a broad nega-tive brush and opined positively on the efficacy of the new Consumer Financial Protection Bureau as if it was universally accepted. Sadly, the rash generalizations of media outlets il-lustrate the need for informed lobbying efforts, despite their obvious distaste and controversy.

Ironically the commonplace financial catch-phrase of 2008: “Too Big to Fail,” for which Dodd-Frank was ostensibly passed into law, is now little more than a historical footnote. Wall Street banks have cleverly pacified politicians and the public with perfunctory, self-prepared funeral plans which would be virtually impossible to implement without taxpayer assis-tance.

Today the nation’s largest banks are even larger than before, creating an even wider chasm between Wall Street and Main Street. Sadly, the largess of Wall Street has hijacked the more practical and reasonable efforts of community banks and state banking associations to reform Dodd-Frank in ways that would benefit both banks AND consumers.

The Time for Change is Now

So to the extent that Wall Street wishes to preserve its super-size status, perhaps now is the time for a dual banking system. In this way, systemically important, behemoth banks would be subject to regulations appropriate for the risks they im-part to the nation as a whole, while community banks would fall under regulations more fitting of their less-complicated fi-nancial structures. While this novel approach would probably be derailed by the various regulatory agency fiefdoms quar-reling over their pecking order, five years into Dodd-Frank it is woefully apparent that change is necessary to allow com-munity banks to get back to the business of serving consum-ers and small businesses, and therefore, reinforce economic growth in the markets they serve.

About the Author

Jim Rieniets serves as President and CEO of INSBANK, which requires him to manage the day to day activi-ties of the bank. He also serves as a director of INS-BANK and on the Loan and Investment Committees, as well as being the Chief Manager of the bank’s

subsidiary, Finworth Mortgage, LLC. Jim has an extensive bank-ing career and leadership background and formerly served on the Credit Committee of the Tennessee Bankers Association. u

Revisiting The Dodd-Frank Act A New Political Tug-of-War by Jim Rieniets, President & CEO of INSBANK


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The 2nd Annual Insurors of Tennessee Agency Growth Conference will be held March 10-11 at the Embassy Suites Conference Cen-ter in Murfreesboro. The event is just what it sounds like, an opportunity for agents and agencies to grow! Whether you are a Young Agent, Small Agency, Rural Agency, New Agency are just an agency that is looking to grow your business, this event is for you.

Tuesday, March 10th

Registration 1-2 pm General Session 2-4 pm Matt Tenney “Serve to Be Great: How Being Selfless Will Help You Sell the Roof Off”Exhibit Hall/Tradeshow 4-6 pm Includes Meet the Vendors ReceptionYoung Agents Outing 6-8 pm Bar Louie Murfreesboro in The Avenue center

Wednesday, March 11th

Breakout Session 1 8-9 am Steve Keyt “How to Avoid an E&O Claim” Alan Rush “Value Marketing” Breakout Session 2 9:10-10:10 am Matt Tenney “The Ultimate Success Habit: How Mindfulness Improves Performance...” Breakout Session 3 10:20-11:30 am Kevin Rogers “Technology Fundamentals” Josh Sudbury “Developing Guidelines” General Session/Lunch 11:30-1 pm Lou Vescio “Best Practices for Growing an Insurance Agency”

See the full and current schedule now at https://www.insurors.org/2260

Sessions and Speakers

Matt Tenney “Serve to Be Great: How Being Selfless Will Help You Sell the Roof Off” - In this inspiring yet content-rich program, Matt Tenney introduces the power of being selfless through his story of spending 5.5 years confined to military prison for arranging an unauthorized delivery of government funds, learning to be happy with nothing, living like a monk for over three years, discovering the power of a life devoted to serving others, and co-founding and leading two non-profits.

Drawing on insights from his experiences as a prisoner, monk, sales team leader, and social entrepreneur you’ll walk away with powerful ideas and tools for developing the sales skills that result in closing more sales, generating more referrals, and enjoying coming to work every day. After attending this program, you will have proven tools to help you:

Build greater trust with clients• Close more sales• Stop selling on price• Generate more referrals•

Agency Growth Conference 2015


portance of building and managing your online reputation, increasing your visibil-ity and focusing on what works and what doesn’t when you are on a limited bud-get. The information presented is the “low hanging fruit” that everyone in business should be focused on, or risk becoming ir-relevant in your market.

Matt Tenney “The Ultimate Success Habit: How Mindfulness Im-proves Performance and Well-Being” - This session will focus on the inner work that results in being much more effective professionally, especially in sales. You’ll learn how the simple practice of mindfulness can help you:

Improve people skills / emotional intelligence• Increase your resilience to stressful situations• Enjoy your life more both at work and at home• Improve overall well-being•

You’ll also be guided through simple practices that can help you realize the benefits above and that you can easily inte-grate into your daily life at work and at home. Thus, you’ll not only have the confidence that you can apply these tools in your life; you’ll leave the session feeling as though you just had a mini-vacation.

Kevin Rogers “Technology Fundamentals for Your Agency” - This session will give a foundation for building the technol-ogy your agency needs to succeed. From defining the “buzz words” to breaking down the day-to-day processes that can be improved, you’ll learn what hardware and software gives you the most impact. You’ll also learn about maintenance and support issues that can help save you a lot of time and money, as well as how to avoid common mistakes that can cost you for years to come.

As Partner with IT Management Services, Kevin works daily with businesses and their technology challenges. With over 20 years of experience consulting businesses in the Nashville area, Kevin has developed the skills required to counsel young busi-nesses on their technology needs. Kevin is a Nashville native with clients rang-

ing from a five person physician practice to a 75 employee architectural/design firm. Technology changes very quickly and businesses count on Kevin & IT Management Services to know their business, how they use technology and ways to use technology for improved efficiency & productivity.

Josh Sudbury “Developing Agency Guidelines” - What should be in your employee handbook? What should you be telling new employees? How are inter-office conflicts best handled? What are the guidelines you need in place to have a productive work environment? Running a business isn’t easy, but having the right guidelines in place can eliminate unnecessary chal-

Matt is a social entrepreneur and the au-thor of Serve to Be Great: Leadership Lessons from a Prison, a Monastery, and a Board-room. He is also an international keynote speaker, a trainer, and a consultant with the prestigious Perth Leadership Institute, whose clients include numerous Fortune 500 companies. He works with companies,

associations, universities, and non-profits to develop highly effective leaders who achieve lasting success by focusing on serving and inspiring greatness in the people around them. Matt envisions a world where the vast majority of people real-ize that effectively serving others is the key to true greatness. When he’s not traveling for speaking engagements, he can often be found in Nashville.

Steve Keyt “How to Avoid an E&O Claim” - This session will help you form a strategy to protect your agency from errors & omissions claims. From documentation procedures, cov-erage review best practices and agency principles, attorney Steve Keyt will help your agency build a consistent and ef-fective way to protect your business while providing the best service your clients.

Steve is a Member Attorney at the Chat-tanooga office of Leitner, Williams, Dooley and Napolitan, PLLC. He is board certified in Civil Trials and has represented numer-ous, banks, insurance agencies, attorneys and other professionals in cases of profes-sional liability. He is a graduate of UT-Chat-tanooga and the University of Tennessee

College of Law.

Alan Rush & Carter Harkins “Value Marketing” - The insur-ance marketplace keeps getting more and more crowded. Whether it’s the mainstream providers, the online siege or the upcoming Googles and Walmarts of the world; it is get-ting tougher and tougher to stand out as the trusted choice to your consumers. We know we will never be able to com-pete on a financial level so how can we make a big marketing impact without having big marketing dollars? Join Alan Rush with Direct Connect Solutions and Carter Harkins with Spark Marketer to discover the budget friendly initiatives that can make a big difference in your marketplace.

Alan is the Vice President of Sales and Busi-ness Development for Direct Connect So-lutions in Nashville. He is a marketing data analysis expert who will discuss target marketing techniques that bring ‘big data’ power to small businesses. You will learn how you can harness data and language to deliver the right message to the right audi-

ence at the right time.

Carter is the co-founder of Spark Marketer in Nashville. He is a veteran internet marketing expert who will discuss the im-

continued on page 41


Daniel Learns About Insurance: When Your Movie Gets Hacked Cyber Risks Are Out There on Every Scale written by Daniel Smith

Insurors Director of Communications Daniel Smith is far from an insurance expert, but he is trying to learn! In this new series he will look into insurance and coverage questions he has about popular trends and day-to-day life.

No doubt you’ve heard plenty about the “movie hack” that went on at Sony Pictures over the last few months. Their film The Interview was scheduled for release in December of 2014, but threats of terror and a coordinated cyber attack by an in-ternational hacker group named “Guardians of Peace” stalled the plans. Sony Pictures e-mails, scripts, salary data and event movies were leaked to the public and news media online.

Sony went on to initially cancel the release of the film, after many national theatre chains stated they would not screen it. The Interview cost the studio around $93 million to produce and market.Sony went on to release the film on a limited schedule in theatres, as well as online and via streaming ser-vices. In addition to any lost revenue from The Interview, Sony may have lost millions more on potential revenue from other films that were pirated as part of the attack, as well as money from possible lawsuits claiming Sony didn’t do enough to se-cure personal data.1

In fact, a class action suit is in the works against So-ny’s entertainment division, after private data including Social Security numbers was leaked. That could result in tens of mil-lions more dollars being forgone by the company.

One more interesting docu-ment leaked as part of the attack was the insurance in-formation of Sony itself. Ac-cording to the documents, Sony Pictures Entertain-ment holds $60 million in Cyber insurance with Marsh. It appears there may also be overlapping coverage through AIG of an additional $10 million. According to reports, the policy includes security and privacy liability cov-

erage, as well as event management, network interruption, cyber extortion and regulatory action.2

Do Your Clients Have Cyber Risks? Does Your Agency?

Chances are, Sony is not one of your clients. But that doesn’t mean that your clients of whatever size are not at risk for cyber attacks. And your agency may also be at risk. If your clients and/or agency store and utilize personal data in elec-tronic format, there is definitely a risk for data breach. How you minimize that risk is the key, and a standard CGL policy will not be enough.

The Big “I” Virtual University’s Bill Wilson explains that ISO in-troduced a number of liability data breach exclusion endorse-ments in 2014. “As a result, ISO’s CGL policy provides virtually (no pun intended) no coverage for data breach,” says Wilson. “However, given that almost any sized business can experience a data breach with potentially catastrophic liability, depend-ing on how many customer records are maintained, ISO has introduced a series of data breach exclusion endorsements for its general liability and umbrella/excess programs.”3

Can your agency our your client’s business handle the impact of a data breach? 80% of businesses fail to recover

from a breach because they do not know this answer. Responding to a breach is a com-

plicated process that requires the assis-tance from many different profession-

als. Failure to notify the effected individuals “without unreason-

able delay” could cost you up to $1,500,000 in fines from

government agencies. Add this to the $200,000 average cost to comply with notifica-tion laws, the legal liability and the reputational harm caused by the breach and you can quickly see how this exposure can be dev-astating to a business.

What Are the Options?

There are numerous cover-


“Whether you choose Arlington/Roe for our breadth of knowledge, product line diversity, market access or industry know-how, you may be assured we are in business primarily to serve you. We will do our best to earn and keep your trust. You have our word on it.”

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age options now on the market for Cyber Liability to cover your business and/or your client’s business. If you are a West-port E&O policyholder, there may be coverage available to you at no extra cost.4 If you need expanded coverage for your agency, Arlington/Roe offers a data breach program ex-clusively designed for Insurors members. Coverage for your clients may also be available through the A.J. Wayne & Associ-ates Cyber Liability/Privacy & Security Insurance available on Big “I” Markets. Many other carriers offer tailored policies and multiple E&S markets are available.

Research your options and make sure you are covering the needs of your agency and our clients on cyber risks. Let’s make sure hackers don’t shut down your production!

1-Per “Sony hacker attack will cost company tens of millions of dollars” via The Star Business2-Per “Sony Pictures holds $60 million Cyber policy with Marsh” via Property Casualty 3603-Per “ISO’s 2014 Data Breach Exclusion Endorsements” on the BIg “I” Virtual University4-Depends on policy provisions. Contact Stephen Holmes at [email protected] for details specific to your policy

About the Author

Daniel Smith serves as the Director of Communica-tions for Insurors of Tennessee. He has a Bachelors degree in Marketing with a minor in Graphic Design from the University of Tennessee at Chattanooga. He may be contacted at [email protected]. u

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Many of our members have probably talked with Stephen Holmes on the phone or by e-mail, but you may not know much about the Young Agent who handles the errors & omissions/professional liability programs for the Association. Stephen is a Nashville native and has been with Insurors since 2010. He serves as president of his HOA and enjoys reading and music.

The Insuror: Can you tell us a little about your current job title and responsibilities?

Stephen: I am currently an E&O Specialist at the Insurors of Tennessee. I handle the E&O and other professional liability needs (EPLI, Umbrella, Cyber policies etc.) for Insurors member agencies. Along with our CEO Chuck Bidek, I’m generally our members’ first contact for renewals, for answering policy questions that may come up during the year, reaching out for new business and helping our new members learn about the Association’s programs.

The Insuror: What can you tell us about your educational background?

Stephen: I graduated from Hillwood High School here in Nashville and went on to earn my degree from The University of Tennessee at Knoxville. I graduated from UT with a Bachelor of Science in Communications with a concentration on journalism.

The Insuror: How and why did you get started in insurance?

Stephen: I started in insurance like a lot of people do I would imagine, which is through chance. An underwriting assistant position opened up at our workers’ compensation MGA Preferred Comp of Tennessee shortly after I graduated and I was able to get my foot in the door. I didn’t have any real connection to the insurance world, but I knew insurance is generally a stable career, which is what I was seeking at that time. Plus I had a first-hand and positive experience involving

an insurance claim that had stuck with me. My car was parked and struck by a hit and run driver while I was away. It was my first incident ever so I was pretty nervous about the process. The claim adjuster took care of everything quickly and I had my car in the shop and a rental car that same morning. It really hit home to me how important insurance is to all of us individually and as a society. So I felt good about entering this line of work.

The Insuror: Do you have any influences/role models in the industry?

Stephen: Hopefully this doesn’t come across as too much flattery, but the easy and true choice would by Chuck Bidek. More than anyone else in my career, he has taken an active and dedicated role in helping me become an insurance professional, not just someone who works in insurance. I am grateful to him for that.

The Insuror: Is there any advice you could offer Young Agents or others in the industry to achieve success?

Stephen: Get out there and meet people. It’s advice I’m still trying to fully follow myself, but the longer I’m in insurance the more obvious it is to me that face-to-face contact is vitally important. Meeting our members and getting to know their agencies is a great way to help me understand their professional liability needs.

The Insuror: You have earned both your CISR and CIC designations. Why did you choose to pursue them and how have they impacted your career in insurance?

Stephen: Simply put, I chose them to increase my knowledge base. Education is such a necessity in all fields, but that is especially true in insurance. Earning those designations is a tangible way to show yourself and others that you are serious about your craft. I would recommend it to everyone as a great way to build towards your career goals.

The Insuror: Thank you for giving us your time Stephen, we appreciate it and wish you continued success in your career. Stephen: Thank you. Working at the Insurors has been fantastic and I look forward to meeting all our members in the future. u

Future Leaders Spotlight presented by

Stephen Holmes, CIC, CISR • Insurors of Tennessee - Nashville

Stephen Holmes of Insurors


There are several events already lined up for Young Agents in 2015, and more on the way. Please mark your calendar and join us for these opportunities to network.

March 10 - Young Agents Reception at Agency Growth Conf.Bar Louie • 6-8 pm CST • Murfreesboro

April 16 - Young Agents ReceptionThe Sutler • 5-7 pm CST • Nashville

April 30 - Young Agents ReceptionLocal on the Square • 5-7 pm CST • Memphis

May 7 - Young Agents ReceptionLocation TBD • Knoxville

October 10 - Young Agents Sponsored Coat DriveLocation TBD • UT vs. UGA Tailgate • Knoxville

October 12 - Young Agents Reception at Annual ConventionLocation TBD • Knoxville

Young Agents Committee

Stuart Oakes - ChairProducer/Construction DivisionTIS Insurance [email protected]

Paul Steele, CIC, CRM - Immediate Past ChairProducer/AgentMartin & Zerfoss, [email protected]

Tim Treadwell V - Region IAccount ExecutiveBoyle Insurance [email protected]

Brent Chance - Region IIPrincipal Agent/OwnerIvy [email protected]

David Allen - Region IIIPrincipal AgentRSS [email protected]

For more information, please e-mail [email protected]. u

Aaron Jensen Shafer Insurance Agency, KnoxvilleAdam Reeves Union City Insurance Agency, Union CityAndrew Powers Burke, Powers, and Harty Insurance, BristolBlake Dickens Harris, Madden and Powell, MemphisBrandon Patterson Ownby Insurance Services, SeviervilleChad Richardson Swallows-Newman Insurance, CookevilleChad Snider Westan Insurance Group, MartinCharlie Taylor Burke, Powers, and Harty Insurance, BristolClement Ledbetter Battle Page Insurance, FranklinDavid Evans The Insurance Group, Inc., KnoxvilleGarrett Flannery Carroll Insurance Agency McKenzieJamie Williams Hardin County Bank Ins. Agcy., SavannahJared Smith TIS Insurance Services, KnoxvilleJason Stiltner Heritage Insurance, KingsportJason Teague Watauga Insurance, Johnson CityJeremy Stiltner Heritage Insurance, KingsportJohn Brock Brock Insurance, ChattanoogaJohn Fritts TIS Insurance Services, KnoxvilleJosh Witt The Insurance Group, Inc., KnoxvilleKevin Ownby Ownby Insurance Services, SeviervilleLeslie Frazier Shafer Insurance Agency, KnoxvilleMatt Spellings Consolidated Insurance Agency, ParisMichael Novarese McDaniel-Whitley, Inc., MemphisMike Thomas Insurance, Inc., NashvillePatrick Sala Harris, Madden and Powell, MemphisRamsey Brock Brock Insurance, ChattanoogaRobert Harris Tigrett & Pennington, NashvilleStacy Woodard Shafer Insurance Agency, KnoxvilleStuart Oakes TIS Insurance Services, KnoxvilleTim Treadwell Boyle Insurance, MemphisWill Webb Battle Page Insurance, Franklin

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From Your President


As we begin this year, I have to admit that I am very honored, excited and nervous. We are so fortunate to have such a strong and admired Association, but as the President I want to rep-resent our members and do the best job pos-sible. With that in mind, I have set forth some goals for myself, and all of us as Insurors mem-bers, to try and accomplish in 2015.

One of my goals is to increase the participa-tion and expand our Young Agents program. We have set up a task force, appointing young agent members from East, Middle and West Tennessee. Our board is committed to working with these individuals to come up with ideas and events that will draw other young mem-bers from your agencies. This will build cama-raderie AND familiarity within our Association, make our Association stronger and help devel-op future leaders.

Many years ago, my friend and our National Director, Brad Smith, encouraged me to be-come involved with the Insurors of Memphis. After serving as President of our local board, he encouraged (or talked me into) serving on the State Board and then the Executive Board. Many of today’s principals came up through our Young Agents Association. I can truly say that I have received so much more from being a part of the Insurors of Tennessee Association than I have given, as I am sure many of you have. I want us to provide that same encour-agement and mentoring to our young agents. I hope all of our principals will join the board in this effort. Please look for upcoming events in 2015 that we are developing specifically for our young agents.

Our 2nd Annual Agency Growth Conference is coming up March 10-11, 2015 in Murfreesboro. This is a “mini convention,” designed specifi-cally for agency growth and development. The sessions, speakers, CE and exhibits are tailored to help you and your young producer grow your business. Last year’s conference was a tremendous success. I expect this year’s confer-ence will be bigger and even better.

Education is always an important goal for me,

and I feel educating ourselves and staff results in a higher level of professionalism. Many of us take continuing education classes only to com-ply with our licensing requirements. I would ask you to look into the various designations that The National Alliance offers through Insurors. Also check out the ABEN webcasts we offer on-line. With standard CE requirements like Flood and Ethics, this is a great way to take the neces-sary classes individually, or as a group. Our of-fice has signed up for group ABEN classes dur-ing the noon hour. We bring in lunch an take the classes. It is a great way for everyone to get what they need without leaving our office.

Another goal is to get the Trusted Choice mes-sage out to our members. Trusted Choice is try-ing to help us compete with GEICO, esurance, Google, and the ever-growing list of others that are utilizing the internet to facilitate and mar-ket the purchase of insurance. Trusted Choice is working to get our message, “Free To Do What’s Right For You,” out to the consumer. Many of our companies are participating in the Trusted Choice rating portal. You are missing out if your agency is not a part of this program.

Finally, I would ask that you participate in local and state programs and events offered through Insurors of Tennessee and our local boards. We have a wide range of products and programs available to our members. Remember them for any of your needs, whether it be personal um-brellas, premium financing, flood insurance or anything else your agency requires. Check out the Insurors website for a full list of the classes, products and services available to members.

Our State Convention will be held in Knoxville, October 10-13, 2015. I hope that you will attend. Saturday’s event will be the UT vs. Georgia foot-ball game, with tailgating before the game. Tickets are limited so mark your calendar and plan on attending this marquee event.

I look forward to this year, meeting new mem-bers and visiting with old friends. I thank you for entrusting me with the Presidency of our Association. I will certainly do my best to make this a successful and fulfilling year. u

Goals - Because It’s Our Association

“I can truly say that I have received so much more f rom b eing a part of the Insurors than I have given...”

Cindi Gresham, CIC

22 The Tennessee InsurorFor All That Matters

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Like so many people in our industry, I didn’t grow up thinking, “I want to be an insurance salesman.” Almost all the portrayals you see of us in movies and on TV are of broken down middle aged men or people with poor moral character. But since I started working in insur-ance, I have found that our industry is made up of people that are, for the most part, talented hard-working individuals who have a passion for building relationships. And when I got involved in Insurors, I saw that there was an even larger community of these types of professionals.

Now that I am serving as the Chair of the Young Agents Committee, and representing Young Agents on the Insurors Board of Directors, I want to make sure that there is a future for our industry professionals. You’ve heard all the statistics about aging principals and agency owners retiring in the next 5-10 years. But even though they are commonplace now, they are still a reality. In spite of the statistics, the future of the industry is not guaranteed to any person or group. It will take the hard work of many to help springboard our great industry for years to come. The industry will have a very different look in the next decade, and we can help shape it for the good.

Now I know there are common objections to getting involved in the Young Agents program. I don’t have time. The principal doesn’t want me out of the of-fice. The events are too expensive. I don’t want to hang out with the competition. All these are under-standable, but let’s break them down and really take a look.

Why Do I Want to Know my Competitors?

This may be the most common objection we hear. Why do you want to be in a room, much less get to know, your competition. The answer is simple, it helps you sell. If you and your com-petitors understand the strengths and weak-nesses of each other, it levels the playing field. You may learn that you have advantages on some accounts, and you may also learn that there are accounts you should avoid. You may

also benefit knowing that other agents face some of the same challenges you do, and may even have some solutions to share. It may also help you understand that other independent agents aren’t the real enemy. We have a com-mon battle we all face. We are fortunate to have one of the strongest Associations in the state who do a tremendous job serving our industry. So if we can focus on the bigger picture of pro-pelling Independent Agents across the state, we can usually get past this objection.

Don’t the Events Cost Too Much?

We hold Young Agent events throughout the year. Receptions, meetings, seminars, there are many opportunities to get involved. Some events, like our local receptions, have no cost. Events like Agency Growth Conference (only $39 for Young Agents) are very affordable. And even the convention ($150 for Young Agents) has a reasonable discount. But whatever the cost, these events have value. Network with your peers, meet with company partners, learn about current topics and maybe make a con-nection that helps your business now or in the future.

What Do I Tell the Agency Principal?

Everyone wants their pro-ducers to be producing,

From Your Young Agent Chairman

“The industry wi l l have a very different l o o k i n t h e next decade, and we can help shape it for the good.”

Overcoming Objections for Our Future

Stuart F. Oakes


but to succeed, you have to be given the right tools. That’s what we’re offering through the Young Agents program, more tools to help you succeed. Whether it is contacts, knowledge or information, every little bit helps. If the agency principal still doesn’t see the value in the Young Agents program, our Board members are willing to discuss it with them. Why do they believe in it? Many of them came up in the industry be-ing involved in the program.

Won’t it Take Too Much of My Time?

We all are strapped for time. Our jobs and clients require a lot of our energy, and that doesn’t even include friends and families. But we will always be too busy if we don’t make our future a priority. Building our agencies, our careers and even our social life within the industry is vital to the future. And it doesn’t take much time. If you attend a local reception, the Agency Growth Conference and the Convention this year, you are only missing four week days.

I’m not asking you to attend every Young Agent event this year, but I would really encourage you to attend at least one. Take a look at the following initial schedule and the further details on Page 19 of this issue, and see what event(s) work best for you. From local receptions near you to our tailgate at the UT Vols vs. Georgia game this Fall, there are plenty of opportunities to get involved. We’ll be adding more events as the year goes on, so be on the lookout for more information

about these and other events happening throughout 2015.

March 10 - Young Agents Reception at Agency Growth Conf.Bar Louie • 6-8 pm CST • Murfreesboro

April 16 - Young Agents ReceptionThe Sutler • 5-7 pm CST • Nashville

April 30 - Young Agents ReceptionLocal on the Square • 5-7 pm CST • Memphis

May 7 - Young Agents ReceptionLocation TBD • Knoxville

October 10 - Young Agents Sponsored Coat DriveLocation TBD • UT vs. UGA Tailgate • Knoxville

October 12 - Young Agents Reception at Annual ConventionLocation TBD • Knoxville

I hope you’ll join me in making sure the insurance industry has a strong future ahead of it. It’s too important for us to take it for granted.

To make sure you receive further information on the Young Agents program, please e-mail your name and agency info to Daniel Smith at [email protected] or contact him at 615.515.2601. u

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From Your CEO


Chuck Bidek, CPCU

The Truth About Insurance Ads?

“...the truth , the w h o l e t r u t h a n d nothing but t h e t r u t h?”

You’ve probably seen the commercials. The direct and multi-channel writers have created clever ads to make customers aware of the many “advantages” of their policies in relation to their “competitors.” But are these ads telling the consumer the truth, the whole truth and nothing but the truth? Let’s take a look at a few examples.

Example #1

A nice looking lady in a catsuit slips into a home. She’s not a burglar, but rather a “replacement cost demonstrator.” The announcer then de-scribes to you how Nationwide will replace your stolen or destroyed personal property with new items. They do not inform the viewer that the homeowner must purchase the Extended Re-placement Cost endorsement and have infla-tion protection coverage. No mention is made of the fact that the Extended Replacement Cost endorsement costs 15% of the base homeown-er premium.

Example #2

A young lady reminds her male companion that he had said men are better drivers. She then asks that if that is really the case, why did she get an “Allstate Safe Driving Bonus Check.” She states that she gets a check every six months she is accident-free. No mention is made of the fact that the Platinum Protection option must be purchased for a rating factor charge of 1.17 in order to receive the Safe Driving Bonus or that the Platinum Protection option must be in place for six months and the Safe Driving Bonus will then be paid provided there have been no claims that are higher than the Safe Driver Plan limit.

Example #3

Allstate’s Mayhem man has many humorous commercials where he points out accidents that may not be covered by “cut rate insurance.” For the most part, these accidents would not be covered only if the person chooses not to pur-chase auto physical damage coverages.

Example #4

A blue-collar type spends $40,000 for a new minivan and immediately gets T-boned by an-other driver. His insurance company depreci-ates his new van even though it has not had its first oil change. Why would you have an insur-ance company that depreciates when Liberty will replace the vehicle? He does not wonder why he filed a collision claim instead a making a claim against the at fault driver. The commercial omits the factor that in order to get Liberty’s Better Car Replacement option you must pur-chase the option with a rating factor of 1.065 for comprehensive and 1.166 for collision.

Example #5

A young lady who apparently feels she should be rewarded for paying her auto premiums on time bumps her fender and then discovers that her premiums go up. But wait, Liberty Mutual realizes everyone is not perfect and offers ac-cident forgiveness. All is going well except the commercial stops there. It does not mention that you must be insured with Liberty Mutual for five continuous years with no accidents or violations in order to qualify for accident for-giveness.

Example #6

Green Bay Packer quarterback Aaron Rodger’s touchdown dance develops into a discount double check for State Farm auto insurance. Watching the commercials leads one to think that it is incumbent on the insured to make sure they are receiving all the multitude of discounts now available for auto insurance. In practice an independent agent makes sure their clients get all the discounts they are entitled. In fact, the in-surance company would be breaking the state insurance law if they did not give the insured all the discounts which have been approved by the Insurance Department.

Example #7

The old professor in the Farmers Group com-


mercials seems to infer that they are the only honest insur-ance company. If one is insured with another company they are likely to be paying for more than they need or not paying for something they do need.

Example #8

To GEICO’s credit their commercials do not claim to provide better coverage but point to a fast quote and a cheap pre-mium and for the most part are just entertaining. The same could be said for the many minimum coverage type compa-nies.

Reading Between the Lines

While many of the direct writer company commercials may tell the truth, they are certainly not telling the whole truth and nothing but the truth. Several of the coverages portrayed as being unique and seemly available only from their com-pany are so common one would be hard pressed to find a ho-meowners or auto policy that does not include them. The real differences may actually be in the level of service a customer will receive at some of these companies compared to an in-dependent agent.

Independent agents should pride themselves in pointing out their level of service and the coverages provided by their companies. u

Our primary goal has been to provide the best service to the specialty lines insurance marketplace. Understanding the needs and providing rapid response to the independent agent has been and remains our number one priority.

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Education CalendarThe Insurors of Tennessee offers education opportunities to member agents across a wide range of insurance specialities that satisfy individuals at many different experience levels. If you are looking to further your career, seeking a professional designation, or need to satisfy continuing education requirements, check out the variety of courses available.

Registration is fast and easy at www.insurors.org. More information about each class can also be found online.

Indicates course is presented by The National Alliance. Register for these courses at www.thenationalalliance.comRegister Online at www.insurors.org

Dynamics Fee: $475

5/4-6 Dynamics of Selling* Memphis

CRM Fee: $430

8/25-28 Financing of Risk* Nashville

Risk Seminars Fee: $420

12/8- 9 Executive Risk Seminar* Nashville

Online Courses (www.iiaba.net/vu) Available from IIABA Virtual University. Member pricing shown.Ethics for Insurance Professionals CE: 3 $75How to Calc. Business Income in 5 Min. CE: 3 $50National Flood Insurance Program CE: 6 $80New Employee Training Course CE: 9 $100 *check VU site for current information on CE and pricing

Available from The National Alliance (www.scic.com) Legal & Ethical Requirments of Insurance CE: 4 $75Insuring Flood Exposures - NFIP Review CE: 4 $75

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Insurance Principles and Policies CE: 7 $49Long Term Care CE: 24 $99Workers’ Compensation CE: 10 $59Employee Benefits for Small Companies CE: 4 $39Healthcare Reform and Affordable Care CE: 5 $49e-Coverage CE: 15 $79Fundamentals of Personal Auto Insurance CE: 3 $29

CISR Fee: $173 CE: 8 3/4 Agency Operations Nashville3/5 Agency Operations Memphis4/21 Commercial Property Johnson City4/22 Commercial Property Knoxville4/23 Commercial Property Chattanooga6/9 Elements of Risk Management Knoxville6/17 Commercial Casualty II Memphis7/22 Commercial Property Nashville8/19 Life & Health Nashville8/20 Life & Health Chattanooga10/27 Commercial Casualty II Johnson City10/28 Commercial Casualty II Knoxville11/10 Insuring Personal Auto Memphis

CIC Fee: $385 (Ruble $420) CE: 24

3/11-13 Commercial Property Institute Memphis4/8-10 Personal Lines Institute Nashville5/13-15 Agency Management Nashville6/10-12 Commercial Casualty Institute* Knoxville7/23-24 Ruble Graduate Seminar Nashville9/16-18 Life & Health Institute Nashville11/4- 6 Commercial Casualty Institute NashvilleThe National Alliance for Insurance Education & Research is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org. Advanced Curriculum Rating = 20 CPE Credits. For more information regarding administrative policies such as complaint and refund, please contact our offices at 800-633-2165.

ABEN Webcasts (insurors.aben.tv) 2/6 E&O - Considerations of Agent Ops CE: 3 $722/18 E&O - Understanding Agent Duties CE: 3 $72

Do you have a Clue?MAKE SURE YOU KNOW THE WHO, WHERE AND HOW IN 2015 WITH INSURORS OF TENNESSEE SPONSORED CONTINUING EDUCATION FROM THE NATIONAL ALLIANCE FOR INSURANCE EDUCATION AND RESEARCH.

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5/4-6 Dynamics of Selling* Memphis

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7/22 CISR Commercial Property

7/23-24 CIC Ruble Graduate Seminar

8/19 CISR Insuring Personal Auto

8/25-28 CRM Financing of Risk*

9/16-18 CIC Life & Health Institute

11/4- 6 CIC Commercial Casualty Inst

12/8- 9 Other Executive Risk Seminar* 3/5 CISR Agency Operations

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10/27 CISR Comm Cas. II

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REGISTER ONLINE NOW AT WWW.INSURORS.ORG OR *WWW.SCIC.COM CALL LAURA THROWER AT 615.515.2607 FOR MORE INFO OR E-MAIL [email protected]

WEBCASTS (register and view dates at insurors.aben.tv)

Data Privacy InsuranceEthics & BusinessNFIP Flood Basics

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Government and Legal AffairsTN Employees Get New Online ProtectionsWritten by Ashley Arnold-Gold, JD, Insurors General Counsel

Last year the Tennessee General Assembly became one of many states adopting laws to restrict employers’ access to applicants’ and employees’ personal online content. The Ten-nessee law, known as the Employee Online Privacy Act of 2014 (link here) “EOPA”, went into effect on January 1, 2015. It ap-plies to employers with one or more employees, so ultimately all employers must comply with these new restrictions.

General Prohibitions

Tennessee’s new law prohibits an employer from requesting or requiring that applicants or employees disclose their pass-words for personal internet accounts. The EOPA also prohibits employers from requiring that applicants or employees:

(a) add the employer to the employee’s or applicant’s list of contacts associated with the personal internet account (e.g., accept a request, such as a Facebook “friend request,” that would permit access to restricted online content); or (b) permit the employer to observe their restricted online con-tent after they have accessed an online account (i.e., “shoul-

der surfing”). Notably, the prohibitions on access are limited to these three specific actions.

The EOPA defines “personal internet account” far more broad-ly than just social media. Specifically, the EOPA applies to “any electronic medium or service where users may create, share or view content, including, e-mails, messages, instant mes-sages, text messages, blogs, podcasts, photographs, videos or user-created profiles.” The law will allow an employer to access accounts created, maintained, used or accessed by an employee or applicant for business-related communications or for a business purpose of the employer.

The new law broadly prohibits employers from taking any ad-verse action against employees, failing to hire applicants, or otherwise penalizing an employee or applicant for not per-mitting access to their personal online account. However, the new law explicitly permits employers to access and use pub-licly available information about job applicants and current employees. If as an employer you use publicly available social media content to impose discipline or make other employ-ment decisions, make sure those decisions are not limited by other laws, such as the National Labor Relations Act, anti-dis-

Now In More States

www.midsouthmutual.comContact Tom Perez at [email protected] or 615-379-8245

MidSouth Mutual provides regional Workers’ Compensation insurance to customers in 7 states including Tennessee, Kentucky, Arkansas, Mississippi, Alabama, Georgia and North Carolina.

Examples of clients we serve include: HVAC Contractors Bricklayers Carpenters Building Suppliers Electricians Framers Road Contractors Plumbers Flooring Dozing Services Dry Wallers Painters Landscapers Insulation Cabinetry

Thank You to all the independent agencies representing MidSouth Mutual. We look forward to a great 2015.

Administered by Brentwood Services Administrators, Inc. Proudly serving the members of the Home Builders Association of Tennessee since 1995.


However, the new law does not impose a duty on employ-ers to search or monitor activity in an employee’s personal internet account and specifically immunizes Tennessee em-ployers from liability for “failure to request or require that an employee or applicant grant access to, allow observation of, or disclose information that allows access to or observation of the employee’s or applicant’s personal Internet account.”

Recommendations for Employers

In general, employers should carefully evaluate whether access to restricted social media or other online content is needed during the hiring process. If an employer believes such information is valuable, it must keep apprised of new legislation, such as Tennessee’s law, that could make such requests unlawful. As an employer you should generally not seek access to personal online content except where there is a strong business interest that is recognized in the applicable password protection law, such as the interest in conducting a workplace investigation.

About the Author

Ashley Arnold-Gold has served as General Counsel of Insurors of Tennessee since 2007, and previously con-sulted for the Association on legal and government af-fairs matters. She received her undergrad degree from the University of Kentucky and her Juris Doctor from

Samford. She may be contacted at [email protected]. u

crimination laws, and laws prohibiting adverse employment action based on lawful off-duty conduct.

Exceptions to the General Prohibitions

With the above restrictions in place, the EOPA does provide certain exceptions to protect employers’ legitimate business interests. The law also recognizes an employer’s right to con-trol and monitor employees’ use of corporate electronic re-sources. For instance, employers may implement and enforce policies pertaining to the use of

(a) any electronic communication device, account or service provided, or paid for, by the employer; or (b) a personal account used for the employer’s business pur-poses.

Importantly, the EOPA contains a broad exception for work-place investigations. Under this exception, employers can re-quire employees to disclose content contained in a personal online account if that content;

(a) bears on whether the employee has violated the law or company policy, or (b) constitutes confidential information of the employer that has been transferred to the employee’s personal online ac-count without authorization.

The EOPA does not provide immunity for employers who in-advertently obtain passwords for a personal online account.

For thirty years, Builders Mutual has been working hard to make your job easier. Agent tools like BOB 2.0 allow you to issue and service policies online with ease. When you’re quoting residential, commercial and trade contractors, the insurance choice is simple.

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“Exclusive member agencies, collaborating to bring the best insurance solutions to their clients.”

The Allison Insurance Group - JacksonBagley & Bagley Insurance - FayettevilleBoyle Insurance Agency, Inc. - Memphis

Burke, Powers & Harty - BristolCarnal-Roberts Agency, Inc. - LexingtonCate-Russell Insurance, Inc. - Maryville

Goss Insurance - HixsonInter-Agency Insurance Services - Knoxville

Martin & Zerfoss, Inc. - Nashville

McInturff, Milligan & Brooks - GreenevilleMiller | Loughry | Beach Insurance Services - Murfreesboro

Ownby Insurance Service, Inc. - SeviervilleSmith-Berclair Insurance, Inc. - Memphis

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Association UpdateZander Gives $45K to Operation Homefront

Zander Insurance in Nashville has announced the donation of $45,000 to Operation Homefront, a national non-profit organization providing emergency financial and other assistance to the families of service members and wounded veterans. Zander donated a percentage of all Identity Theft Protection sales in December to the organization.

Crichton Group Promotes Two; Adds Two

Nashville agency The Crichton Group has appointed a new partner and a new director of risk management. In addition, it has also added an account executive and an account manager to its team, growing its expertise to meet continued client demand for its comprehensive insurance services.

Joe Lacher, has been named vice president and partner;• Tracy Light, has been named director of risk management;• Ansley Douglas, has joined as an account executive; and• Teresa Walker, has joined as an account manager.•

Lacher will help lead the agency and support clients across the United States. Lacher’s expertise is in consumer driven health plans as well as employer-specific risks associated with the Affordable Care Act. Light will be responsible for the leadership and direction of the agency’s risk management services, including claims and risk control. Light will work with her team to ensure high quality service, efficiencies and standardization of processes. Douglas will manage the Private Client Book of Business. Douglas has over 25 years sales management experience, most of which has been in insurance sales with companies such as Marsh & McLennan and Liberty Mutual. Walker will help lead the agency’s group benefits department. Previously, Walker was a team lead/contract benefits counselor for Benefit Communication, Inc. where she served as a contract case counselor aiding large employer groups as an extension of the client’s human resources department. u

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Program Spotlight

InsurPACTN is the registered political action committee (PAC) of your Association. The PAC is focused on providing financial and information support to candidates and members of the Tennessee General Assembly who believe in a competitive free enterprise system and are dedicated to the promotion and preservation of a competitive insurance climate.

What Does That All Mean?

Insurors of Tennessee has three lobbyists who work on your behalf to help prevent and promote legislation that impacts the insurance industry. When bills are released for review dur-ing the beginning of session, the Insurors team thoroughly reviews the information to determine what impact, if any, the bills might have on our industry. Insurors also works with oth-er industry organizations to help determine common ground on important issues as they arise.

How Does Donating to the PAC Help?

By supporting InsurPACTN, you give the Insurors Government

Affairs team the ability to support candidates and legislators who most closely affect and support the issues facing our in-dustry. In 2014, the PAC made 33 contributions for $33,225, losing only 3 of the races in which it contributed. Over the past two years, InsurPACTN has donated over $60,000 to can-didates, and has lost only 5 races in which it contributed.

Other Than Donating, What Can I Do to Help?

Donations are a critical part of our efforts, but involvement and “grassroots” support are also key. Get to know your leg-islators. If you have existing relationships, let us know about them. When you have insurance, business or other issues that are important to your agency, let your elected officials know about your position.

If you want to get more involved, attend our annual legislative reception during the beginning of session, or contact Ashley Arnold-Gold and Chuck Bidek at Insurors. For more informa-tion or to donate to InsurPACTN, visit http://www.insurors.org/what-we-do/government-affairs/ u

InsurPACTN

YOU’RE INDEPENDENT. BUT YOU’RE NOT ALONE.

INSURORS CUTS THROUGH THE RED TAPE TO GET YOUR VOICE HEARD. HELP US WORK FOR YOU “ON THE HILL.”

DONATE TODAY AT INSURORS.ORG


Get Real. Get Happy.

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Your work won’t wait. So extend your staff, fast, with your own vintage worker through

WAHVE. You select from WAHVE’s pre-screened database of retired insurance workers.

These U.S.-based workers know risk management and insurance—and work just for you

on a remote basis. You save on overhead, benefits and training. You get the work. Done.

“


Work At Home Vintage Employees (WAHVE) is a unique, cost-saving, re-mote contract staffing solution for the insurance industry. Using an innovative work-at-home model, WAHVE employs skilled insurance “phased” retirees lo-cated in the U.S. who understand the industry’s technology, culture and lan-guage. By outsourcing to WAHVE, insur-ance firms can leverage these qualified, experienced, and technologically-savvy retirees to significantly lower costs and improve profitability.

“WAHVE, in essence, widens the geo-graphic horizons for experienced com-mercial lines and personal lines customer service representatives (CSRs) as well as other staff,” commented Bill Hunt, exec-utive vice president of WAHVE. “WAHVE has caught on because it works. Agen-cies across the country are taking ad-vantage to remain competitive. WAHVE has hundreds of vintage professionals working from home for insurance firms throughout the country,” Hunt explains. “Retail and wholesale brokers are espe-cially under pressure to get processing and other vital work done on a cost-ef-fective basis. Many are struggling to find and keep qualified staff.”

What Are Pretirees?

Today people don’t really retire: they “pretire.” They leave the traditional of-fice to work in alternative ways and technology has enabled them to do so. The WAHVE “pretirees” are just what you need; highly experienced, technologi-cally savvy insurance professionals that are known for their work ethic.

WAHVE has a database of hundreds of highly qualified “pretirees” located throughout the U.S. Our wahves have 25+ years of work and insurance indus-try experience and numerous designa-tions (CIC, CPCU, CISR, ARM, etc.) and licenses.

Company SpotlightWork At Home Vintage Employees - WAHVE

You can hire one WAHVE or many. When you need more, you request more. When you need less, you request less. And you don’t need to terminate anyone in your office. WAHVE give you flexibility.

WAHVE will allow you to review candi-dates, schedule interviews, set schedule preferences, discuss procedures and all while saving on overhead.

How Do I Find a WAHVE?

WAHVE has experts that can help your agency with staff services including:

Bookkeeper/Controller• Claims Representative• Claims Assistant• Customer Service Representative• Account Manager• Sales Assistant• Underwriter• Underwriting Support• and more•

Once you’re ready to hire a WAHVE, you’ll review resumes of pre-screened profes-sionals who meet the criteria you’ve set forth. You’ll then select the candidates you want to interview, and set up times and method of meeting. Once you have chosen your candidate, WAHVE will guide them through an on-boarding process and allow time for your training on your processes, workflows and agen-cy management system.

You will be billed at a contracted hourly rate and only for the hours worked, and a WAHVE relationship manager will fol-low up regularly to ensure your satisfac-tion.

Get Started Today

Getting started with WAHVE is simple. Just visit www.wahve.com and complete the contact form, or call 646.807.4372 for more information. u

Tennessee Contacts

Bill HuntExecutive VP, Chief Sales [email protected] x506

Leadership Team

Sharon Emek, Ph.D.CEO & PresidentBill HuntExecutive VP, Chief Sales Officer

Company Headquarters

WAHVE20 Tower LaneAvon, CT 06001

About WAHVE

Founded by executives with each hav-ing more than 30 years of insurance agency, technology and service-center experience, WAHVE is the only do-mestic alternative to offshore remote staffing for insurance firms (including agents/brokers, wholesalers, insurers, and vendors), providing back office and customer services on a dedicated basis full-time or part-time, long-term or short-term.

WAHVE was founded in 2010 by Sha-ron Emek, and has a management team of industry leaders. WAHVE currently has over 100 satisfied insurance firm clients and many more delighted wah-ves. Visit www.wahve.com for more information.


Bringing the Best Together IN TENNESSEE

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©2014 Keystone Insurers Group®. All Rights Reserved. This does not constitute an o� er to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

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lenges and reduce potential problems down the road. This in-teractive session will help you analyze your agency’s current practices and determine what changes are necessary in both the short and long term.

Josh is a Nashville attorney in the office of Ford & Harrison, LLP. He focuses his prac-tice on representing management in la-bor and employment matters. Josh works with companies to enforce trade secret and non-compete issues, and regularly de-fends employers on EPL cases. He regularly advises clients on how to avoid/resolve la-

bor and employment disputes and litigation, and also drafts and reviews employment agreements, employee handbooks and employment policies.

Lou Vescio “Best Practices for Growing an Insurance Agency” - This session will discuss the keys you can use to build your agency the right way. From managing finances, building and maintaining your book of business, attracting new clients and acquiring business, you will hear about proven practices to help you grow and succeed. From agency compensation to buying and merging, get the information you are looking for from research into other successful agencies’ operations.

Lou is the principal of Agency Brokerage Consultants and

Agency Growth Conference, continued from page 13

888.706.3753 jmwilson.comManaging General Agency Since 1920

Debbie Martinez Underwriter & Sales Manager,

Southern Region

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

GROWINGTO BETTER SERVE YOU

J.M. Wilson is happy to announce the opening of our newest office

in Charleston, South Carolina! We are excited to better serve our

agents in South Carolina, North Carolina, Georgia, and Tennessee.

4130 Faber Place Dr., Suite 200A North Charleston, SC 29405

managing partner of the Florida office. He brings many years of management and business ownership experience to the firm. Lou is an Air Force veteran and earned a BS in Mathematics from Clarion State College and MS in Business Administration and Economics from the University of Dallas. He completed the Juran Quality Assurance

Program and the Texas Instrument’s Management and Senior Management Programs. He is a Certified Business Intermedi-ary and Merger & Acquisition Master Intermediary.

ReceptionsMeet your next company or vendor at our agents reception on Tuesday night at the Embassy Suites. Our sponsors and exhibitors will be on hand to talk about your agency. Our Young Agents group will later head off-site for a reception at Bar Louie at The Avenue center in Murfreesboro, sponsored by Berkley Southeast Insurance Group.

Exhibit HallExhibitors will include Applied Underwriters, Bailey Special Risks, Berkshire Hathaway GUARD Insurance, CRC Crump, Imperial PFS, Meadowbrook/Preferred Comp, MetLife Auto & Home, Selective Insurance, Travelers Insurance and more.

Registration cost for the event will be only $49 per member and $39 per Young Agent. Exhibit and sponsor info is also available. Get more info now at http://www.insurors.org. u


Acquisition Strategy #15MARKETING SUPPORT

Birmingham Branch: 800.239.2005 | Home Office: Des Moines, IA www.emcins.com© Copyright Employers Mutual Casualty Company 2014. All rights reserved.

“ Tell us where you’re headed, and we’ll help you get there.”

Are there certain accounts in your area you want to write? The more we know about your goals, the better we can provide the right expertise, online resources and other marketing programs and materials to grow your business. It’s just one of the many reasons you can Count on EMC®.

Riley Tonkin, Omaha Branch Marketing Representative

10043_EMC_Tenn_Insurors_Acquisition15_Riley_7.5x10.indd 1 12/19/14 3:53 PM


Company BriefsMeadowbrook and Fosun Announce Merger

Preferred Comp insurer, Meadowbrook Insurance Group, Inc., and Fosun International Limited announced that they have entered into a definitive agreement under which Fosun will acquire Meadowbrook for US$8.65 per share in cash, repre-senting an aggregate transaction value of approximately US$433 million.

Fosun is a leading investment group headquartered in Shang-hai, China with over $50 billion in total assets and operations around the world. The acquisition of Meadowbrook will en-able Fosun to establish a significant presence in the U.S. P&C market. Currently, Fosun has more than one third of its total assets invested in insurance businesses around the world, in-cluding investments in Yong’an P&C Insurance, Pramerica Fo-sun Life Insurance and Peak Reinsurance, as well as Fidelidade Group, Portugal’s largest insurance company. Fosun’s most recent investment in the insurance sector was an acquisition of a 20% equity interest in Ironshore Inc. in August 2014.

The transaction has been unanimously approved by all of the directors of the Meadowbrook board of directors present at the meeting and has been unanimously approved by the Fos-un board of directors. Following the closing of the transaction, which is expected in the second half of 2015, Meadowbrook will continue to maintain its headquarters in Southfield, Mich-igan and will operate under the Meadowbrook brand name. The transaction is subject to the approval of Meadowbrook’s shareholders as well as regulatory approvals and the satisfac-tion of other specified closing conditions.

Following the recent announcement, A.M. Best has placed the financial strength rating of B++ (Good) and the ICRs of “bbb” under review with positive implications for Meadowbrook’s operating subsidiaries. Upon the close of the transaction, ap-proximately $100 million in outstanding convertible debt is expected to be retired. The A.M. Best ratings will remain un-der review pending the completion of the transaction. The under review status reflects A.M. Best’s view that Meadow-brook will benefit from a stronger balance sheet, enhanced liquidity, and improved overall earnings prospects.

Central Appoints Moore to Board

The Central Insurance Companies has ap-pointed Keith Moore, CPCU, AIC, AU to the Board of Directors for Central Mutual Insurance, All America Insurance, and the Central Insurex Companies. Moore has also been appointed as a member of Central’s Executive Committee.


Moore is Sr. Vice President of Central’s Southeast Region and oversees the day-to-day operations of the Southeast Region-al Office in Alpharetta, Georgia, including Claims, Commercial Lines Underwriting, Personal Lines Underwriting, and Market-ing. During his 35-year career with Central, Moore has held positions as a claims service representative, marketing man-ager, claims supervisor, claims manager, and regional man-ager. He holds the Chartered Property Casualty Underwriter (CPCU), Associate in Claims (AIC), and Associate in Underwrit-ing (AU) designations.

Progressive Acquires ASI Majority Share

Progressive and ASI announced recently that Progressive has agreed to acquire a majority share of ARX Holding Corp., the parent company of American Strategic Insurance (ASI) and its affiliates, for approximately $875 million in cash. The shares will be purchased primarily from non-management share-holders and will bring Progressive’s interest in the company to approximately 67%, up from the 5% interest it’s held since 2012.

“This is a great opportunity for ASI, as our intention has long been to become the Progressive of home insurance,” said John Auer, CEO of ASI.

ASI will continue to operate as a separate company and its present management team will lead the company. The trans-action is expected to close by April 1, 2015. ASI, one of the top 20 largest homeowners carriers in the United States, special-izes in personal and commercial property insurance, personal umbrella insurance, and primary and excess flood insurance.

ACUITY Continues Major Growth

ACUITY announced its 2014 growth results, reporting an over-all gain of nearly $120 million in total written premium. The amount represented a 10.6 percent increase over 2013 and extended ACUITY’s multi-year track record of revenue gain.

“In the past 36 months alone, ACUITY added over $400 mil-lion to our top-line revenue,” said ACUITY President and CEO Ben Salzmann.

ACUITY achieved robust growth across all lines of business and throughout the company’s operating territories. In 2014, the insurer wrote a record $220 million in new business, driven by increases in both personal and commercial lines. In personal lines, ACUITY marked an incredible 18th consecutive year of positive premium growth by writing $66 million in new busi-ness. In commercial lines, the company added $154 million in new business premium while achieving a quote success ratio of 41 percent, also an all-time record.

J.M. Wilson Promotes Reincke to Manager

J.M. Wilson is pleased to announce the promotion of James


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throughout the eastern region. This will include a special fo-cus on growing business in Pennsylvania, Virginia, Maryland, North Carolina, South Carolina, Georgia, Ohio and Tennessee. Lawrence will work with Atlas’ program managers to support existing programs as well as develop new proprietary and ex-clusive workers’ compensation, general liability, and package programs. Clark will also manage the eastern region’s market-ing and underwriting teams to ensure strategic oversight and development.

Lawrence comes to Atlas with over 25 years of underwriting, claims and marketing experience in the national workers’ compensation market. Most recently, Lawrence was the as-sistant vice president, workers’ compensation underwriting officer for Companion Property and Casualty Company in Columbia, South Carolina. Prior to that, he successfully man-aged, developed, and marketed programs for CompTrust AGC and United States Fidelity & Guaranty Company.

Perkins Promoted by Brentwood Services

Cindy Perkins has been promoted to the position of support team supervisor for Brentwood Services Administrators Inc. (BSA)., headquartered in Brentwood.

In her new position, Perkins is supervising claims administra-tive staff to ensure workflow of administrative and clerical duties. She is responsible for setting up new claim files for

Reincke as Brokerage Manager for the new-ly formed Brokerage Department. James is responsible for developing and strength-ening new and existing agency and com-pany relationships, as well as growing the Brokerage book of business for 21 states.

Earning a Business Administration Degree with a Concentration in Insurance from Olivet College, James has also earned designations of Associate in Insurance Ser-vices (AIS) and Associate in Commercial Underwriting (AU).

James began with J.M. Wilson in 2006 as a Commercial Under-writer, before being promoted as Wisconsin Branch Manager in 2011. Prior to J.M. Wilson, James worked for Hastings Mu-tual, Burns and Wilcox and OneBeacon Insurance. With close to 14 years in the Insurance industry and 10 years working in a Managing General Agency, James is well equipped to be the go-to resource for unique brokerage accounts.

Lawrence Joins Atlas General as VP

Atlas General Insurance Services, LLC, a national multi-line program manager, welcomes Clark Lawrence as the new vice president of marketing for the eastern region.

In his new role, Lawrence will be responsible for develop-ing Atlas’ current agency base and managing distribution

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cording to John Leonard, president of The MEMIC Group and ACORD chairman.

TDCI’s Corbett Named to “Power 50” The Director of the Captive Insurance Section of the Tennessee Department of Commerce and Insurance (TDCI) has been named to the “Power 50” list as one of the most influential people in the captive insurance industry. TDCI’s Section Director Michael A. Corbett is ranked No. 23 on the 2014 “Power 50” list com-piled by the editors of Captive Review magazine. The list, based on more than 600 reader submissions, appeared in the London-based magazine’s January 2015 edition.

In designating Corbett as the 23rd most influential person in the global captive insurance industry, the magazine cited his leadership in the burgeoning captive insurance market in Tennessee.

“Tennessee is making a strong play to be South Carolina’s biggest rival in the re-gion,” wrote Captive Review Editor Richard Cutcher. “Corbett’s active approach has been a key factor in the jurisdiction’s pro-business attitude.”

Ambers Promoted to CEO at NetVU

Kitty Ambers, CIC, CPIA, CISR, has been promoted to chief executive officer of the Network of Vertafore Users (NetVU), effective Jan. 1, 2015. Ambers’ respon-sibilities as CEO include directing and improving NetVU operations; commu-nicating with the Executive Committee, Board of Directors, staff and Vertafore management; and acting as a point of continuity for NetVU within the insurance industry. u

adjusters, reviewing and processing invoic-es from outside vendors, paying invoices against client accounts, and handling claims payments.

Perkins joined BSA in November 1999 as a mail clerk and was promoted to the position of claim assistant in October 2000, assisting the professional staff in processing insurance claims. In 2003, she became a claim examin-er II, working with medical-only claims. She was promoted to claim representative II in December 2010.

Arlington/Roe Adds Stephens to Nashville Office

Arlington/Roe recently announced that Lisa Ste-phens has been hired as a commercial lines under-writer in our Nashville of-fice. Lisa is pleased to be able to continue the val-ued relationships she has

established over the years. She has joined the Tennessee commercial lines associates to continue to grow Arlington/Roe’s Tennessee underwriting office.

Lisa’s previous experience includes almost 30 years in excess and surplus lines insur-ance. She enjoys the challenge of trying to find a home for every risk. A Nashville native, Lisa looks forward to connecting with agents across Tennessee.

Maciag Announces Retirement from ACORD Gregory Maciag, president and CEO of ACORD, announced his plan to retire in one year on January 15, 2016. The ACORD Board of Directors accepted the plan and approved Maciag serving as an advisor for one addi-tional year through January 15, 2017, which will mark his 40th anniversary with the in-ternational standards organization. Maciag was hired in 1977 to launch the ACORD Form library, which became the beacon for indus-try standardization and set the groundwork for a dynamic expansion in the following de-cades.

The ACORD board will organize a five-mem-ber selection committee with three outside industry executives to identify and recom-mend Maciag’s successor during 2015, ac-

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In his play “Richard III”, William Shakespeare relates the tale of King Richard III in which Richard is unhorsed on the battle field at the most crucial moment. In a desperate attempt to save himself, he cries out: “A horse, a horse, my kingdom for a horse!” Unfortunately for Richard, no horse is delivered and Henry dispatches him, succeeds to the throne as Henry VII and marries Princess Elizabeth of the House of York.

This very famous story highlights how one asset can be the most important factor in determining the success or failure of a person, especially when timing is critical. For Richard, it was his horse. For you as an insurance agent, while not as noble or glamorous, it can be the coverage rejection form. While certainly an agent won’t lose his life without this form, the financial impact can be devastating. And to the contrary, if such a form is in obtained, not only may it save the day, it may also be financially rewarding if you are insured by Swiss Re Corporate Solutions.

The Case to Be or Not to Be

A case in point: In 2011, an agent was retained to procure personal auto liability and um-brella coverage on behalf of his customer. The policy had UIM limits of $250,000/ $500,000 aggregate and an accom-panying umbrella policy had a $1MM limit. At that time, according to the agent, the customer signed a UM/UIM rejection form for the umbrella policy. Under this particular state law, an applicant must execute a signed UIM waiver form during the application process in order to waive UIM coverage under an umbrella policy. Additionally, the agency agreement with the insur-ance carrier expressly stipulated that the agency retain for the pe-riod specified in the underwriting requirements, all original, signed applications, driver exclusions, se-lections and rejections of optional coverage, premium discount docu-ments, vehicle inspection reports, and power of attorney.

A Rejection Form, a Rejection Form, My Kingdom for a Rejection Form!

A Cautionary Tale With Apologies to Shakespeare by Richard Lund, JD, Swiss Re

After the primary and umbrella policies were issued, the customer was involved in a serious accident that resulted in a significant brain injury. The claimant sought the full $1MM umbrella limit from the carrier. (Notably under the law of the state, if an insurer fails to pay a first party UIM claim within thirty days, it may be subject to the assessment of double damages). The carrier contacted the agency to determine if any such waiver existed and after a thorough search, none was found. The carrier was required to pay the $1MM limit of the umbrella policy and then tendered a $1MM policy limit indemnification demand against the agency. Due to the agency’s inability to locate the waiver and the language of the agency agreement, the claim was paid.

The Keys to the Kingdom

There are two key points to remember from this tale: the first is to always read your agency agreements thoroughly and be fully aware of their terms. The explicit language of the agreement was that it was the agency’s duty to retain copies of certain documents and in particular to this case, the waiver of coverage form. Therefore, liability for

indemnity to the carrier was absolute. Had the agency read and understood this pro-

vision, perhaps better care would have been taken to ensure that the docu-

ment was retained. When you are presented with any writ-

ten agreement that you must sign in order to be able to do business with a company, be sure to read the document thoroughly

and if you have questions concerning the provisions,

consult with your own attorney to review and advise you of any

provisions you may not understand. In many instances, some provisions may

be negotiated if you or your attorney do not believe they properly state or protect

your interests.

The second key point to remember is to properly document and retain rejections of


pens and look under “Prevention Tools.” To learn more about the coverages that you should be offering to your customers, look for more information on the “Virtual Risk Consultant” as well.

Hopefully the information in this article has given you a little help so that when you are on the battlefield in your everyday business, you won’t end up like King Richard III crying out “A Rejection Form, a rejection form, My Kingdom for a rejection form!”

About the Author

Richard F. Lund, JD, is a Vice President and Senior Underwriter of Swiss Re/Westport, underwriting insurance agents errors and omissions coverage. He has also been an insurance agents E&O claims counsel and has written and presented numerous

E&O risk management/ loss control seminars, mock trials and articles nationwide since 1992.

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

coverages. Offers of higher limits can, and would have in this case, prevented a significant exposure in which a claim was later made as it related to the coverage limit. And, if you are insured under a policy issued by Swiss Re Corporate Solu-tions/Westport Insurance Corporation, you may reap a finan-cial benefit.

Under the Deductible Reduction feature of the policy, if an insured agency generates and maintains contemporane-ous written documentation of a customer’s refusal to accept any type of coverage or limit recommendation made by the agency, and there is subsequently a claim alleging a failure to secure such recommended type of coverage or limit, then 50% of the deductible relating to that claim will be waived up to a maximum of $12,500, or until dismissal of the allegations, whichever is first.

For example, in the case above, if the agency had the signed waiver in its file, and an action was brought against the agen-cy and costs were incurred, the agency would have been re-sponsible for only 50% of their deductible. Had the deduct-ible been $10,000 for example, the agency would have saved $5,000, perhaps enough to buy a horse!

Being Proper (In Documentation)

For more information about how to properly document your files, visit the E&O Happens website at www.iiaba.net/eohap-


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Meetings2015 Shaping Up to Be a Busy YearAgency Growth Conference March 10-11

The 2nd Annual Insurors of Tennessee Agency Growth Conference will be held March 10-11 at the Embassy Suites Conference Center in Murfreesboro. The event is just what it sounds like, an opportunity for agents and agencies to grow! Whether you are a Young Agent, Small Agency, Rural Agency, New Agency are just an agency that is looking to grow your book of business, this event is for you. With sessions, speakers, CE and exhibits tailored to help you increase business, this event is worth your time.

See more details on Page 12 or visit http://www.insurors.org/2260 to register now.

Big “I” Legislative Conference April 22-24

The 2015 Big “I” Legislative Conference and Convention will be held April 22-24 at the Hyatt Regency on Capitol Hill in Washington, D.C. Attend this one-of-a-kind legislative event for the independent agency system and educate members of Congress on issues important to you and your clients. Registration includes an in-depth issues briefing, legislative breakfast with high-profile Congressional speakers, a general session and networking opportunities.

Agents will visit over 400 Congressional offices during this important opportunity for our industry. Get more information or register now at http://www.independentagent.com/Events/LegislativeConference/home.aspx.

IAIP Regional Conference April 9-11

The International Insurance Professionals will hold their annual Region III Conference on April 9-11, 2015 at the Crowne Plaza in Knoxville. This is a time to gather from the Southeast Region (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Tennessee) to learn, network as well as recognize members for their outstanding achievements.

The event will include educational classes, networking with vendors and fellow members, meetings with the CWC Contest, social and free time, awards and of course some fun and leisure.

Get more information online now by visiting http://www.internationalinsuranceprofessionals.org/?page=regional_mtgs. u

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The stories are all too familiar: A drunk driver who couldn’t afford insurance due to his bad driving record causes an accident, burdening a family of five with horrific medical bills. A child walking to school faces a lifetime of difficulty after being struck by a struggling college student texting and driving with state minimum auto limits.

As an insurance agent, you can’t physically protect your clients from heartbreaking situations. But you can offer financial protection when tragedy strikes. This is where excess uninsured/underinsured motorist (UM/UIM) coverage enters the picture.

According to recent estimates by the Insurance Research Council (IRC), roughly one in seven drivers is uninsured. Add to that the number of drivers who carry state minimum auto limits, and it’s enough to make a person want to stay home for good. With insurance commercials emphasizing low prices, drivers are overwhelmed with the pressure to buy state minimum auto limits—resulting in an understanding gap regarding the importance of protection from other drivers.

So how can you explain UM/UIM coverage to a client who doesn’t know much about insurance? In layman’s terms, UM/UIM coverage pays for the client’s injuries from an accident caused by the owner or operator of an uninsured or underinsured vehicle or from a vehicle, bike or pedestrian hit-and-run incident that leaves them without a policy to collect against. Excess UM/UIM from a personal umbrella policy pays after the auto policy’s UM/UIM limits have been exhausted.

It’s important for a client to understand that UM/UIM coverage comes into play when an insured is involved in an accident and the person who caused it either doesn’t have any insurance ordoesn’t have enough insurance to pay for your client’s injuries. It would also come into play if they were the victim of a hit-and-run (in a vehicle, on a bike, or as a pedestrian), leaving them with nobody’s insurance policy to collect against—making it an “uninsured” motorist claim.

There’s no way around admitting that UM/UIM coverage can be expensive, and a tough sell if a client is trying to keep their premium down. One wise agent explains it to his personal umbrella clients this way. If you’re buying an umbrella so that you can cover the injuries of strangers, wouldn’t you want to do the same for your own family?

Visit http://www.insurors.org/products-programs/rli-pups/ to learn more. u

Protecting Clients from UM By April Shrewsbury, Big “I” PUP Manager

Member Tips

Specialty insurance for bicycles

Cycling means different things to different people. That is why, Markel

Bicycle Insurance offers bicycle coverage customized for each individual

cycle, and doesn’t provide one-size-fits-all coverage.

Policies are as low as $100 per year.

Coverage Highlights:

Bicycle Physical Damage: primary coverage for the cost to repair or

replace the cycle (including fixed accessories and components) up to the

policy limit, due to sudden, accidental direct physical loss or damage to the

cycle. This coverage would apply if insured bicycle were to be involved in a

collision, fire, theft, vandalism, or in the hitting of another object.

Coverage also includes protection while the bicycle is in transit (land or air)

to & from any location in the United States or Canada, and protection when

competing in triathlon or bicycle races.

INCLUDED COVERAGES AT NO EXTRA COST:

Bicycle Liability: primary coverage for the injuries or property damage

(caused by the insured bicycle) for which the insured is held legally

responsible. Coverage is offered at combined single limits of: $25,000,

$50,000 and $100,000.

Medical Payments: covers medical expenses of the insured cyclist if they

are injured while on the insured bicycle, regardless of fault. The following

per person limits are available: $1,000, $2,500, $5,000, $7,500, $10,000.

Vehicle Contact Protection: covers injuries if, while on the insured bicycle,

combined single limits of $10,000 or $25,000.

Roadside Assistance:

Service will be provided (up to 35 miles per tow, 5 tows per year).

See how an average Homeowner’s Policy measures up to Markel

Date of the event** Date of purchase thru event date

* Homeowner’s coverage is typically limited Actual Cash Value (ACV) of the bike, not replacement value.

Reduce the device shape to the required size, then make a new clipping mask

We know bicycles.

Policy CoverageAverage

Homeowner’s PolicyMarkel

Bicycle Policy

Not Likely Yes

Crash Damage No Yes

Theft Coverage Limited Yes

Limited Yes

No Yes

Yes Yes

No Yes

No Yes

Not Likely Yes

Not Likely Yes

No Yes

Not Likely Yes

Covered in Transit Not Likely Yes

Not Likely Yes

Not Likely Yes



















$50,000 and $100,000.












We know bicycles.



Bicycle Policy

Not Likely Yes

Crash Damage No Yes


Limited Yes

No Yes

Yes Yes

No Yes

No Yes

Not Likely Yes

Not Likely Yes

No Yes

Not Likely Yes


Not Likely Yes

Not Likely Yes



















$50,000 and $100,000.












We know bicycles.



Bicycle Policy

Not Likely Yes

Crash Damage No Yes


Limited Yes

No Yes

Yes Yes

No Yes

No Yes

Not Likely Yes

Not Likely Yes

No Yes

Not Likely Yes


Not Likely Yes

Not Likely Yes

Visit www.BigIMarkets.com for more information on Markel Bicycle Coverage

ACUITY (800) 242 - 7666 www.acuity.com 22AmTrust North America (877) 528 - 7878 www.amtrustnorthamerica.com 36Applied Underwriters (877) 234 - 4450 www.auw.com/us 2Arlington/Roe & Co. (800) 878 - 9891 www.arlingtonroe.com 15Auto-Owners Insurance (615) 373 - 5200 www.auto-owners.com 55Bailey Special Risks, Inc. (800) 768 - 7475 www.bsrins.com 26Berkley Southeast Insurance Group (615) 932 - 5508 www.berkleysig.com 9,19Berkshire Hathaway Guard Insurance Cos. (800) 673 - 2465 x4567 www.guard.com/apply 17Brentwood Services Administrators (800) 524 - 0604 www.bwood.com 31Builders Mutual (800) 809 - 4859 www.buildersmutual.com 32Burns & Wilcox (800) 341 - 4844 www.burnsandwilcox.com 30CNA Insurance (800) 251 - 5852 www.cna.com 45Consumers Insurance (615) 896 - 6133 www.ciusa.com 52Donegal Insurance Group (770) 232 - 2272 x1370 www.donegalgroup.com 7EMC Insurance (800) 239 - 2005 www.emcins.com 42FCCI Insurance Group (800) 226 - 3224 www.fcci-group.com 9Harford Mutual (800) 638 - 3669 www.harfordmutual.com 47Heartland Ovation Payroll (901) 598 - 4829 www.ovationpayroll.com 20INSBANK (866) 866 - 4268 www.insbanktn.com 11J.M. Wilson (800) 595 - 0063 www.jmwilson.com 41Johnson & Johnson (931) 704 - 0810 www.jjins.com 28-29Keystone Insurers Group (800) 416 - 5498 www.keystoneinsgrp.com 40National Alliance (800) 633 - 2165 www.scic.com 49National Security Group (800) 239 - 2358 x267 www.nationalsecuritygroup.com 46North Alabama Insurance (800) 824 - 1740 www.nai1982.com 26Penn National Insurance (800) 395 - 0518 www.pennnationalinsurance.com 56Preferred Comp/Meadowbrook (800) 755 - 8090 www.meadowbrook.com 51 Preferred Property Programs (888) 549 - 2465 www.umbrellaprogram.com 35Risk Innovations (800) 913 - 6696 www.riskinnovations.com/tni 16Securerisk (770) 723 - 8096 www.securerisk.com 34South & Western (800) 492 - 5351 www.southandwestern.com 33Southern Cross Underwriters (800) 682 - 5263 www.scui.com 24Summit Holdings (800) 971 - 2667 www.summitholdings.com 43WAHVE (646) 807 - 4372 x506 www.wahve.com 38

Directory of Advertisers Advertiser Phone Website Page

register now at www.insurors.org

aGEnCY GroWtH ConfErEnCEMARCH 10-11 | MURFREESBORO

Thank you, agents.

Auto-Owners has always been

dedicated to the independent agency

system and proudly standing behind

the agents who represent us. We

would like to thank you for your

continued loyalty, which has helped

us achieve tremendous growth and

accomplishments over the years.

2500 21st Avenue South Suite 200Nashville, TN 37212

We look for the best independent

agents and build relationships

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Business Surety Auto Home

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PAIDNashville, TN

Permit No. 380

Documents

The Tennessee Insuror Jan/Feb 15