Volume 21, Issue 11 - Independent Insurance Agent

iiaba.net

Volume 21, Issue 11 - Independent Insurance Agent

The West Virginia

Insuror

President Obama Signs Flood

Insurance Extension

As expected, on May 31 President Barack

Obama signed an extension of the federal

flood insurance program into law.

was struck after Senate leaders agreed they

would take up longer-term authorization

and reforms of the NFIP later this month.

INSIDE

THIS ISSUE

2 NARAB II Letter Sent..

WV Auto Insurance...

3 Note from the President

Note from the IIABA

National Director

Note from the CEO

4 Search Engine Ranking...

5 Trusted Choice Mobile...

Promote Real Time...

6 Future One Study...

7 Update Your Profile...

Trusted Choice & OCC...

8 Personal Device Risks...

10 Big “I” Liability...

11 Sewer Back Up Claim

12 NFIP Questions..

Big “I” Phone Number...

13 Home Owner Vacates...

14 Tips for Prospecting...

15 Bring Your Own Device...

17 WAPAC Form

Approved by the US House and Senate

earlier in the month, the legislation extends

the program until July 31. Without the

extension, the program would have expired

May 31.

Under the terms of H.R. 5740 as agreed to

by the House and Senate, the National Flood

Insurance Program (NFIP) is reauthorized to

enter into new contracts for flood insurance

and borrow from the Treasury through July

31, 2012. Also beginning on July 1, 2012,

the law phases out subsidized premium

rates for residential property that is not the

primary residence of an individual.

The deal for this latest short-term extension

Both the House and Senate have legislation

under consideration that would reauthorize

the NFIP through 2016. The House passed

H.R. 1309 with a 406-22 bipartisan vote in

2011. The Senate Banking Committee has

approved its own reform bill, S. 1940, the

Flood Insurance Reform and Modernization

Act, last September, however it not yet been

afforded full Senate consideration despite

the urging of 41 senators in February. That

floor consideration is now supposed to

happen this month.

The NFIP has been caught in a cycle of

short-term extensions and several lapses

since 2008. The NFIP expired four times in

2010 alone.

Volume XXI | Issue XI

june 19, 2012

A Publication of

Independent Insurance

Agents of West Virginia

Gray Marion, CAE, Publisher


NARAB II Letter of Support Sent to US Senate

Big “I” leads insurance trade association effort on agent licensing legislation

Last week, a group of ten insurance

trade associations sent a joint letter

to every U.S. senator to support

S. 2342, the “National Association

of Registered Agents and Brokers

Reform Act of 2012.”

The letter was organized by the Big

“I,” in coordination with National

Association of Insurance and Financial

Advisors and the Council of Insurance

Agents and Brokers. The signers of

the letter include those three major

producer trade associations, as well

as:

• American Association of Managing General Agents;

• American Bankers Insurance Association;

• American Insurance Association

• Insured Retirement Institute

• National Association of Mutual Insurance Companies

• National Association of Professional Surplus Lines Offices

• Property Casualty Insurance Association of America

The Big “I” has worked over the last few weeks to ensure every

major property-casualty insurance trade association signed the

letter of support for the legislation.

View an example of the letter sent to

every senator here.

S. 2342, or NARAB II, was introduced

by Sens. Jon Tester (D-Mont.) and

Mike Johanns (R-Neb.) in April. The

measure would provide for reciprocal

non-resident insurance agent and

broker licensing while preserving state

insurance regulation.

NARAB II would reform and improve

the current state-based system of insurance regulation by

providing one-stop, non-resident licensing. The bill will build upon

regulatory experience at the state level, promote consistency,

and preserve marketplace responsiveness.

The Big “I” strongly supports this targeted federal legislation to

reform agent licensing. It continues to lobby individually, and in

coordination with other insurance trade associations, in support

of this licensing reform and is encouraged by the progress made

in the Senate this year.

West Virginia Gears Up for Auto Insurance

Verification Program

The West Virginia Department of Motor Vehicles is taking steps

to educate motorists about electronic verification of insurance

coverage.

The DMV said vehicle owners will soon begin receiving an

informational insert when they get registration renewal papers in

the mail.

State lawmakers in 2010 passed legislation establishing the

Electronic Insurance Verification Program, which will allow DMV

and police to verify coverage immediately. State law prohibits

driving without insurance.

DMV is asking motorists to provide a copy of their certificate of

insurance when they register or re-register a vehicle.

Also, insurance companies must print what’s called a “NAIC

Number” on insurance certificates by Jan. 1, 2014. Customers

will be asked to provide this number to DMV when a license plate

is renewed or changes are made.

Independent Insurance Agents

of West Virginia, Inc.

page 2

A Publication of Independent Insurance Agents of WV


Note from

The PRESIDENT

James Myers

President

CityInsurance Professionals

james.myers@cityinsure.org

Note from

The DIRECTOR

Timothy Dyer

IIABA National Director

Dyer Insurance Agency

timdyer@dyerinsurance.net

Note from

The CEO

Gray Marion, CAE

IIAWV Chief Executive Officer

gmarion@iiawv.org

Welcome to a new look for the West Virginia Insuror. In

the works since early this year, this edition is our first

opportunity to show off our new format, created in

partnership with Bulldog Creative Services, an award

winning communications firm based in of Huntington,

West Virginia.

Within the framework of our new format, we intend

to continue to offer timely and informative pieces on

local, state and national issues that are relevant to our

association’s member agents at every level as well as to

our Associate Members and friends.

We hope that you will find the new Insuror visually

appealing, professionally informative and that you will

make certain that everyone in your office reads the

Insuror on the 15th and 30th of every month..

Even though our new format is designed to utilize upto-date

technologies to bring you useful information, the

very best information will continue come from the people

you know, your association’s elected leadership and

professional staff. Right here on this page, you see the

spaces that are reserved for columns to be authored by

your association President, James Myers of City Insurance

Professionals in Charleston, your representative to the

IIABA National Board of Directors, Tim Dyer of Dyer

Insurance Agency in Clarksburg and myself as your

association’s CEO. The association President’s Column

should be appearing monthly. The association’s National

Director’s Column should be appearing within thirty days

following a “Big I” National Board meeting or at least

three times per year. My column, “A NOTE FROM THE

CEO” will be appearing in each edition of the Insuror, on

the 15th and 30th of each and every month. We hope that

you will pay close attention to the information shared in

these columns. We are also providing e-mail addresses

for each of us so that you can share your thoughts on

what you read. We encourage you to do so.

Thanks for your time, for reading the Insuror and, most of

all, for your support of the IIAWV.

Let us hear from you.

page 3

A Publication of Independent Insurance Agents of WV


The Three R’s of Good Results for Insurance

Search Engine Ranking

Understand how the major search engines

rank the results of a user for insurance.

Search engine results for insurance websites aren’t just for geeks

you know. Chances are you’ve heard of the old three Rs: Reading

‘Riting and ‘Rithmetic. While learning those subjects might have

been painful, mastery allows you to attain success. I’d like to

propose that just as critical to your success in the online world

are a new set of Rs, which I call the three Rs of ranking. When

implemented correctly, these Rs will help your insurance agency

or company do well in search ending rankings, i.e. helping you

improve how your business shows up in a search engine results

page (aka SERP).

Part One: The Framework

These posts are targeted at folks who are not search

professionals. As such, we’ll keep the jargon to a minimum,

and not dig too deep into the details. Ultimately these posts

are designed to be directional rather than prescriptive, and

should provide a useful framework to enable business leaders

to evaluate their online efforts in reference to each of the three

Rs. As always, the ongoing challenge online is that the major

search engines continually tweak their algorithms, so that advice

is current as of spring, 2012.

A question that Project CAP is continually asked is “How do I get

my insurance website to the first page of the search results?”

The answer to that question isn’t that easy, nor is it the same

for any two searches or even any two searchers. These new Rs

are a distillation of those characteristics and behaviors which

will drive your insurance organization’s online success. And

while they won’t directly answer the question posed above, if

implemented effectively, they will help your web page rise in the

rankings. Click here for a brief description of why the search

engines rank results.

The Three Rs of Insurance Ranking

The major search providers use dozens if not hundreds of factors

to determine how well a specific web page fits the searcher’s

intent. For simplicity I have distilled these down to the three Rs:

Relevance, Referrals, and Recency. And in order to help these

concepts move from the arcane world of Internet to an area

where we have day-to-day experience, let’s think about them in

the context of insurance sales.

• You can think about Relevance in terms of discussing relevant

information with your prospect. If your prospect asks about

homeowners insurance, and you respond with information

on auto insurance, your results won’t be as good as if you

had responded with direct information about critical issues

regarding their home and personal property. Therefore if

consumers are searching for a particular phrase + insurance,

your page will rank better if your content on that page is

exclusively focused around that particular phase.

• For Referrals, how much better will a prospect respond

if you have been referred to them by someone they know

and you reference that friend, rather than approaching them

without any sort of introduction? On the web, referrals are

links from other websites to yours.

• As for Recency, aren’t you more likely to write an insurance

account if you follow up with clients regularly rather than just

calling them at the ex-date and expecting them to remember

you when you haven’t talked to them in months? If you aren’t

regularly updating content of your webpage, the search

engines may believe that your site is stale and doesn’t

provide valuable information to the searcher.

As you can see, these three Rs provide us with a framework to

evaluate our web pages and their effectiveness. In the next post,

we will dive down into some of the details of Relevance and how

to make certain that your content matches up to what searchers

are seeking.

WAPAC West Virginia Agents Political Acti

By Marty Agather, Senior Vice-President of Sales, Project CAP

page 4

A Publication of Independent Insurance Agents of


Trusted Choice Tool Gives Member Agents

Presence on Mobile Devices

A new mobile application

makes it easier for clients to

contact their independent

insurance agent. The Trusted

Choice mobile application

is for use on smartphones

and tablet computers. It

provides consumers with the

ability to keep an inventory

of their insured personal

possessions, document a

car accident with photos,

read consumer insurance

tips, and communicate with

their agent.

The mobile app is available in the iTunes store for use on iOS

devices such as iPhones and iPads, and in the Google Play

store for use on Android phones and tablet computers. It is a

free download for consumers.

The Trusted Choice mobile app was developed by Project CAP

in conjunction with the Independent Insurance Agents and

Brokers of America and Trusted Choice.

“IIAWV member independent agents now have a real presence

on consumers’ phones and tablet computers,” says Gray Marion,

CEO of the Independent Insurance Agents of West Virginia.

“The new mobile app is built for consumers and branded for

Trusted Choice agencies. It gives consumers one-click access

to Trusted Choice agents and insurance information.”

A co-branded version can be customized for Trusted Choice

agencies with their logos and color schemes. A Trusted Choice

version includes a “find an agent” feature that helps consumers

find a local Trusted Choice independent agent.

Consumers increasingly are turning to mobile access

including apps. Nearly half (46 percent) of American

adults owned smartphones as of February 2012, reported

thePewResearchCenter’s Internet & American Life Project.

Promote Real Time to Carriers

Encourage real-time implementation and thank carriers that have already done so

The Big “I” and Agents Council for Technology continue to work

with the industry’s Real Time/Download Campaign to increase

agent usage of keystroke-saving, real-time workflows. They’re

also encouraging additional carriers to offer the full range of realtime

transactions across the major lines of business.

The Big “I” and ACT encourage agents to continue to ask their

carriers to implement real time where they have not done so and

to thank those carriers that have.

Go to www.getrealtime.org for the Real Time Implementation

Guide to learn more. Agents and brokers can also promote real

time with this new comic from the campaign:

Visit us online!

www.iiawv.org

page 5

A Publication of Independent Insurance Agents of WV


2012 Future One Agency Universe Study Is Underway

Please respond to the 20-minute survey today.

Within the past two weeks, all members have received an

email from IIABA President & CEO Bob Rusbuldt inviting them

to participate in the 2012 Agency Universe Study research

project. The email includes a proprietary link to the website

where members can complete the survey, which should take

no more than 20 minutes.

IIABA asks all members to please participate in this research

project by clicking on the link and sharing responses and

opinions. The Future One Research Task Force is working with

independent market research firm Zeldis Research Associates

to carry out the survey and ensure the quality and confidentiality

of the data.

Your responses are kept completely confidential and will help

the independent agency system, IIABA, state associations and

carriers provide the products and support that agents and

brokers need most.

IIABA recognizes that members’ time is extremely valuable

and wants to thank them in advance for taking the time to

participate in this important survey.

Please send any questions about the survey to Madelyn

Flannagan at madelyn.flannagan@iiaba.net, IIABA Vice-

President of Agent Development, Education and Research.

RALLY CAP ON

Baseball players believe that a cap worn inside-out and backwards

has the power to rally their team to a come-from-behind victory.

Now independent agents are putting on rally caps of their own. Project CAP (Consumer Agent Portal) is a Westfield

investment, with IIABA and a team of other key insurance carriers, in the independent agency system and the future of

personal lines.

Consumers today prefer to do research online before buying insurance. CAP will level the playing field by delivering an

online marketing presence that puts independent agents at the top of the order.

Step up to the plate and learn more at www.projectcap.info

PARTNER COMPANY

www.westfieldinsurance.com

Do you have

some news to

share? Click

here to send us

an email about

it!

The

West Virginia

Insuror

page 6

A Publication of Independent Insurance Agents of WV


Don’t Forget To

Update Your Agency’s

Trusted Choice Agency

Profile

Please be reminded that the association has requested that

all member agencies to update your Trusted Choice® agency

profile. Updates to an agency‘s profile must be done by the

agency key contact (usually the agency principal or his/her

designee) using the individual‘s email address as the login ID

and the individual‘s membership number as the password.

If you have already tried and were unsuccessful in updating

your agency profile, please give it another try. If you are the

agency principal or designee and don‘t know your individual

membership number, we have posted a password lookup

online where you will enter your email address, and our

system will email your original password (your IIABA member

number).

If at some time you changed your IIABA password and have

since forgotten it (don‘t you just hate when that happens), we

will gladly help you get your password reset. All you need to

do is contact Valerie Toney at the IIAWV office by phone at

800.274.4298 or by email at vtoney@iiawv.org

It‘s particularly important for you to check, update and/or

correct the information in your profile because your member

profile will be the platform for agency searches and referrals

through ProjectCAP Consumer Agent Portal.

As always, you are welcome to contact Valerie Toney at

the IIAWV office by phone at 800.274.4298 or by email at

vtoney@iiawv.org.

If you have any other questions or need additional information

about the Trusted Choice® brand or ProjectCAP, please feel

free to contact IIAWV CEO Gray Marion at 800-274-4298 or

via e-mail at gmarion@iiawv.org .

Update Your Association Profile!

CLICK HERE!

5 minutes of your day to update your profile could

lead to significant revenues going forward.

Trusted Choice®

Partners with

Orange County

Choppers

Motorcycle manufacturer helps promote

Make-a-Wish fundraiser and raise brand

awareness

Time to put on your leather jackets. This summer

Trusted Choice® has commissioned a custom

motorcycle from Orange County Choppers, featured

on the Discovery Channel program “American

Chopper.”

For those not familiar with the show, OCC founder

Paul Teutul, Sr. and his team design and build

custom motorcycles for their clients. Teutul is a

major supporter of the Make-A-Wish Foundation; the

opportunity to partner with the OCC crew will not only

help Trusted Choice with its goal to raise $150,000

this summer for the charity, but also will help promote

the value of Trusted Choice independent agents to a

wider consumer audience.

The Trusted Choice chopper will be featured on an

upcoming episode of the show, and in advance of the

episode, the progress of the bike build will be shared

with fans on www.facebook.com/trustedchoice.

For every post that is shared from the Facebook page

during August, Trusted Choice will donate $10 to Make-

A-Wish. When the chopper is complete, it will be used

at various industry events to help promote Trusted

Choice. More information about the partnership will

be announced this summer.

page 7

A Publication of Independent Insurance Agents of WV


Protect Your Agency from Personal Device Risks

Take steps to prevent security breaches from employees’ personal phones and

computers

Many workers today expect

their companies to allow them

to use their personal mobile

devices and computers at

the office, and to provide

remote connectivity to the

office through these devices.

Technologists have dubbed this

trend “bring your own device,”

or BYOD.

Mobile devices—along with

their applications and on-thego

Internet access—provide

attractive options for speed,

connectivity and productivity.

Many people wouldn’t think of spending their workday without

a Blackberry, iPhone, Android, iPad or other device to access

company systems and data. Most important, senior managers

want to use these devices and are using their organization’s

technology more because of them.

Many employees see their own personal devices as superior

to those provided by their employers. Employees also tend to

believe they are more productive if allowed to use their own

devices for work and data syncing between office and home.

Thus, BYOD is significant because employee-owned devices

are now accessing company systems and being used for work

purposes presenting security and privacy concerns to the

employer.

Employers see the inherent value in a more mobile, more

connected and more productive workforce. Many employees

and managers have no problem connecting and addressing work

issues after hours and on the weekends. It can be considered a

motivational strategy.

should the employee allow

children or friends to use the

device.

• The employee may use

the device to place files in

personal applications in the

cloud which may not be

secure.

• The employee plugs a mobile

device into the USB port of

his or her office computer

thereby transmitting a virus to

the office desktop.

Because of these risks, companies must take the lead in

assessing and managing them to safeguard their systems and

data. Some simple steps include:

• Institute a BYOD policy that is consistent with the

organization’s other employee policies, such as an IT policy

and acceptable use policy.

• Determine which data to protect.

• Define what devices will be supported.

• Determine which employees need remote access via

personal devices. Do not open BYOD participation beyond

those employees that have a strong business reason for

mobile access.

• Define security requirements.

• Train and educate employees concerning policy and BYOD

use.

But while BYOD may be considered necessary and convenient,

this type of connectivity can raise significant data security and

privacy concerns—leading to potential legal and liability risks.

Consider:

• The device gets lost or stolen with access to company data

and systems.

• The device contracts a virus or has malware installed that

can obtain company logins and data from that device.

• The personal device user—however good his intentions

are—can in effect be circumventing company security

standards.

• The company cannot control the use of the personal device

• Monitor employee mobile devices for compliance with your

organization’s policy. Secure employee’s authorization to

wipe an employee’s mobile device remotely (restore to the

original factory state), as a condition of giving access to any

of the business’s systems.

• Place controls over access to and use of the company’s

wireless internet. They may include barring broadcast of a

wireless SSID, restricting access to employees only using

MAC address filtering in the router and invoking WPA 2 on

the router.

In addition, agencies allowing employees to use their own mobile

devices may want to consider the following security measures:

(continued on page 9)

page 8

A Publication of Independent Insurance Agents of WV


Protect Your Agency from Personal Device Risks

(CONTINUED FROM PAGE 8)

• Require strong phone startup PIN which is at least six to eight

characters long. If not supported, use the maximum allowed.

Reduce the PIN required timeout setting to no longer than 10

minutes.

• Require specified encryption and anti-malware software on

each device.

• Require and install mobile tracking software and applications,

which allow online access to track the location of a lost or

stolen phone and the ability to perform a lock/scream or

remote data wipe.

• Secure the employee’s authorization to take these actions

on the device if the device is misplaced, lost or stolen, as

a condition to giving the employee access to the business’s

systems and data.

• Do not allow broken, rooted or jailbroken devices on the

agency network. These phones have removed limitations

installed on the phone by the carrier allowing the user to run

apps and files not approved by carriers. This process opens

the device up to security risks.

• Large enterprises monitoring multiple devices and platforms

should consider mobile device management software.

MDM software centrally controls and protects the data and

configuration settings for all mobile devices in the network.

MDM can also provide a secure document delivery platform

and end to end data transmission encryption.

The opportunities of BYOD are present and here to stay. Akin

to home security, which is more complex for bigger homes

with more entrances and windows, systems security is also

becoming more complicated as smartphones and other remote

devices present new entry points to be analyzed and protected.

Danielle Johnson is the vice president, director of information

technology at InsurBanc, which IIABA and the W.R. Berkley

Corporation established to assist independent agencies with

their specific banking needs. These tips are intended to be

guidelines to help agencies manage security risks; each step is

not guaranteed to be completely effective.

At Home Business

& Personal Umbrella

Reach for it when you need it

Understand the Risks

Here are some facts to consider when trying to balance

personal device access with security:

Employees don’t perceive the risk.

Many employees perceive the use of their own devices

at work as placing no extra burden on technical support.

But dealing with any data or system security issue

requires know-how and technical resources.

Executives perceive the risk, but aren’t fully ready.

In August of 2011, a Deloitte webcast poll of more

than 1,000 U.S. information technology and business

executives found that 28% of respondents believe there

are unauthorized personal digital assistants and tablets

connecting to company systems, especially to email

servers. About 87% of respondents think their systems

are at risk for a cyber attack originating from a mobile

security lapse, the poll reported.

The same poll found 40% of respondents are unaware of

whether their organizations have strategies or controls

to enforce mobile security. Further, it found that only

24% of respondents believe that “all devices connecting

to my intranet are authorized.” Only 17% reported that

they monitor for rogue connections.

Malware is on the move.

Malware that targets mobile devices is increasing,

reported IBM Security Solutions researchers in a fall

2011 whitepaper. Citing an IBM security research report,

the whitepaper presented statistics showing that mobile

operating systems vulnerabilities tripled from 60 to a

projected 180-plus from 2009 to 2011.

Enterprise systems and mobile systems are catching

up with each other.

While many corporations have for years allowed

Blackberry-based access to email and other company

systems, users are now demanding that iPhone/Androidbased

smartphones and tablet computers be provided

access to these same services.

www.independentagent.com/rli

page 9

A Publication of Independent Insurance Agents of WV


Big “I” Professional Liability Program

Insurance Agents Errors and Omissions Coverage That’s Right for Your Business

Why the Big “I” Professional Liability Program?






Superior customer service and expertise by your state association

Professional Liability Committee comprised of IIABA members that oversees and has a direct influence in the program

Nationally endorsed program with 25 years experience

The largest independent insurance agency E&O program in the country

Supports lobbying efforts protecting your industry by contributing a percentage of every premium dollar to the funding of

important advocacy efforts of the IIABA

Swiss Re

As the nationally endorsed carrier of the Big “I” Professional Liability program for 25 years, Swiss Re has created the strongest

coverage form in the marketplace. The largest writer of agents E&O insurance in the country, it provides solid core coverage as

well as coverage units to insure against other exposures of concern. Review the preferred policy form and you will find that

these are just a few of the coverage benefits of the Westport policy:

Coverage for the sale of both Property/Casualty and Life/Health insurance products

Limits of liability up to $20 million

Broad definition of covered professional services and activities

Comprehensive definition of “who is an insured”

Aggregate deductibles

Defense cost outside the limit

Available first dollar defense

Full prior acts available

Coverage for punitive damages (where available and covered by insuring agreements)

Multiple extended reporting period options

True worldwide protection

Coverage for advertising, including libel and slander

Protection for related consulting services

Expert witness testimony covered

Teaching formal insurance courses included

Premium finance services placement built-in

Additional coverages include catastrophe extra expense, subpoena and regulatory expenses

Choice of Defense Counsel - by endorsement

Real Estate Agent Activity - by coverage unit

Employment Practices Liability - by coverage unit

Cyber Liability Coverage - both first and third parties

Why Swiss Re?

Exclusive loss prevention resources including:

o risk management website, E&O Happens

o risk management newsletter, E&O Claims Advisor

o E&O self audit guide, Agency Shield Program

An exclusive policy form and premium credits filed on a Risk Purchasing Group basis give Big “I” members tailored coverage

Dedicated claims staff focuses solely on defending insurance agents E&O claims - 70% of claims personnel are attorneys

Rated “A” (Excellent) by A.M. Best

The information provided is for general informational purposes only and you should review the policy form and any applicable endorsements for complete policy language.

Please note that all applications are subject to review, underwriting and approval by Westport Insurance Corporation. If you have any questions please contact your state administrator.

page 10

A Publication of Independent Insurance Agents of WV


Was That a Sewer Backup Claim?

A basement toilet overflows. Should the claim be considered seweR backup or accidental discharge?

An insured homeowner’s basement toilet overflowed, and the

policy lacked a water back-up endorsement. But because the

backup was caused by roots growing through the sewer line,

the homeowner’s agent questions if the policy should provide

coverage for damage to the sewer line.

“The adjuster is denying all coverage stating backup was the

cause of loss,” the agent says. “However, is the root intrusion not

the cause of loss to the pipe and therefore damage to the pipe

covered under the HO policy?”

The VU has an article on tree roots in sewer lines that provides

further guidance on the topic.

But another issue, is whether this is truly a “sewer backup” claim.

The exclusion is intended for loss caused by reverse-flow from

overloaded public sewer lines; it is often triggered by general

flooding and not covered.

However, when there is water damage due to a blocked sewer

line on the premises, that’s usually an “accidental discharge”

claim—not sewer backup—and is covered.

What happens if the sewer line on the premises gets blocked by

tree roots, debris and other materials? When the toilet is flushed,

there’s nowhere for the water to go due to the blockage, so the

water supply to the toilet simply keeps running and the toilet

bowl overflows. The water causing damage never really enters

the sewage system.

More information on that type of claim can be found in another

article on the VU.

So, depending on the facts of the case and the parameters

discussed in these two articles, including ISO and equivalent

policy language, it’s possible that all of this is covered.

Bill Wilson is director of the Big “I” Virtual University. This

question was originally submitted by an agent through the VU’s

Ask an Expert Service. Answers to other coverage questions are

on the VU. For help accessing the website, email logon@iiaba.

net to request login information.

Big “I” Advantage Virtual Risk Consultant

Powered by Rough Notes

page 11

A Publication of Independent Insurance Agents of WV


Get Answers to

NFIP QUESTIONS

NFIP booklet and FEMA call center are

resources for agents

Have questions about the National Flood Insurance

Program and not sure where to turn for answers?

Look to the “Answers to Questions about the NFIP”

handbook, which has recently been updated. It is

intended to acquaint the public with the NFIP.

Despite the highly technical nature of the program, this

booklet deliberately minimizes the use of technical

terms providing a basic understanding of the program

and the answers to some frequently asked questions.

Click here for more information and how to get the

booklet for your office.

Big “I” Markets Launches

New Affluent Program

Phone Number

Program has new support number and process

for brokers of record

Big “I” Markets recently announced that its Affluent Homeowner

program has grown more than 20% in policies in force each of

the past two years, and it launched a new process for affluent

brokers of record. This was the first step in managing the volume

to provide a better service experience.

Today, Big “I” Markets is announcing a new phone process to

further streamline inquiries and create a more efficient process to

handle the high volume. The Affluent Team can now be reached

directly by calling 703-706-5499.

Prefer to talk with someone? The Federal Emergency

Management Agency’s call centers are staffed

with specialists. An overview of each call center, a

description of what they do and the types of questions

they can answer is here.

In addition, members can always contact Big “I” Flood

experts at floodinfo@iiaba.net or at 800-221-7917.

When calling this number, an automated attendant prompts

callers to press one for new business inquiries and to press two

for all other calls. Big “I” Markets has appropriate staff assigned

to each of these options, and therefore callers will be directed to

the appropriate extension if they accidentally choose the wrong

option.

Callers will be directed to voicemail from 9 a.m. to 5 p.m. EST

if the Affluent Team is assisting another caller; and calls will be

returned in the order received.

Big “I” Markets appreciates your patience as it assists other

callers with the limited staff available. You may also email the

Affluent Team at ATM@iiaba.net.

Please note, coverage cannot be amended or bound through

verbal or email communication. All requests for coverage changes

must be made in writing via the client’s quote detail on Big “I”

Markets.

Go to facebook.com/IIAWV

page 12

A Publication of Independent Insurance Agents of WV


When a Homeowner Vacates

A woman moves to an assisted living facility, but still owns her home. What is the best coverage?

A homeowner moves into an assisted living facility. The property

is still in her name and all of her belongings are still in the home.

Her family, who lives in the area, visits the house almost daily to

maintain it for her.

But now the insurer plans to cancel the policy due to a change

in hazard and directs the homeowner to rewrite on a dwelling

policy with another carrier.

“What is the correct way to cover the home in order to maintain

similar coverage?” the woman’s agent asks. “For all practical

You’re an independent agent.

purposes, this seems to be no different than a secondary

residence but we do not want to mislead a carrier or the insured.”

The Big “I” Virtual University has produced a white paper on

the topic of residency. In particular, review these court cases on

page 19 of the paper:

NO COVERAGE

Bryan v. United States Fire Ins. Co. (Texas, 1970)

Fisher v. Indiana Lumbermens Mutual Ins. Co. (Texas, 1972)

Doyle v. Members Mutual Ins. Co. (Texas, 1984)

The issue for a homeowners policy is that, under ISO rules, a

dwelling is not eligible for an HO-3 unless it is owner-occupied.

Based on the case law, the insured may have no coverage

whatsoever on the dwelling right now, so it would be best to

move fast to correct the issue.

Under ISO eligibility rules, insuring the home under a dwelling

program would be appropriate if it’s not owner occupied. But

there are carriers that may permit HO coverage to continue, so

talk to the underwriter.

The important thing is to fully disclose the circumstances and

document the company’s response.

Do you trust

your pit crew?

The Big “I” Professional Liability Program

Prevent.

Our risk management

resources keep your agency

from making common

preventable mistakes.

Protect.

Our superior coverage and

expert claims teams are in your

corner in the event of a claim.

Prosper.

When you know you have the

best E&O protection, you can

focus on growing your most

important asset–your business.

Bill Wilson (bill.wilson@iiaba.net) is director of the Big “I”

Virtual University.

This question was originally submitted by an agent through the

VU’s Ask an Expert Service.

Answers to other coverage questions are on the VU. For help

accessing the website, email logon@iiaba.net to request login

information.

The Big “I” and Swiss Re are jointly committed to providing IIABA members with leading

edge agency E&O products and services. The IIABA and its federation of 51 state

associations endorse Swiss Re’s comprehensive professional liability program.

www.independentagent.com/EO

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas.

Westport is a member of the Swiss Re group of companies and is licensed in all 50 states and the District of Columbia. ©2008 Swiss Re

page 13

Independent Insurance Agents

of West Virginia, Inc.

A Publication of Independent Insurance Agents of WV


5 Tips for Powerful Prospecting

When you are prospecting, the people

you are calling want to put you into

one of two categories quickly: one,

someone they should listen to or two,

someone they want to get rid of as

quickly as possible. People are busy

and the reality is, unless they sent in

for information or you happen to call

them exactly when they’re looking for

what you have, most are determined

to put you into category number two

and get rid of you ASAP. After all, the

last thing they need is one more todo

item on a list that is already more

than they can possibly get done. That

being the case, how can you catch

their attention and get them to at least

consider what you have to offer?

5 Tips for Powerful Prospecting

1) Make the call about them.

With the high number of people calling and e-mailing

prospects these days, you have to stand out. The best

way to stand out is to make your call about them, not you.

When most people call they immediately start talking about

themselves, their company, and the wonderful products

and services they offer. In this “sales” mode, prospects

immediately put a wall up and blurt out responses such as

“I’m all set” or “I’m not interested” and hang up. Instead of

making the prospecting call about you, focus on the benefits

the prospect receives or, what’s in it for them.

2) Be short, sweet, and to-the-point.

As a general rule, you want to keep the opening of your

prospecting calls as short as possible. When prospecting

many people feel the need to open with

a ton of information to justify the call and

as a result, they end up saying way too

much.

When a prospect answers the phone,

they have two questions: Who are you,

and what do you want? Simply answer

those questions, give the prospect your

number one benefit, and then close on

the appointment. For example, your call

might look like this:

“Hi, this is John Chapin with ABC

Insurance. We’re known for saving

companies like yours an average of

21.6% on Workers Comp Insurance.

Same level of coverage, better service.

All I need is ten minutes to ask you a few

questions, do you have time right now or

can we schedule a time this afternoon?”

3) Warm up your cold calls.

The best ways to warm up a cold call are to get a referral,

find something you have in common, refer to something you

read, or name drop.

Obviously getting a referral is the most effective way to warm

up a cold call. Remember, the average person knows 250 other

people. You should be asking everyone you talk to for referrals.

In addition to referrals, look for things you have in common with

people. For example, did you go to the same school? Alumni

Directories are a great source of warm leads. What other hobbies

and interests do you have that you may share with people? Were

you in the military, are you a sky diver, a golfer?

(continued on page 15)

Download the new

Project CAP /

Trusted Choice

mobile app at the

iTunes Store!

donate today!

Visit us online!

www.iiawv.org

page 14

A Publication of Independent Insurance Agents of WV


5 Tips for Powerful Prospecting

(CONTINUED FROM PAGE 14)

You can also refer to something you read in the paper or on-line.

Did someone recently get a promotion, have a 25th wedding

anniversary, get a hole-in-one?

Finally, you can drop the names of companies or people you’re

doing business with that the person you’re calling will likely be

familiar with.

4) Practice pleasant persistence.

If we follow the rule that you have to touch a prospect 7 to 10

times before you get some name recognition and build some

credibility, how do you reach out that many times without

becoming a pest? Answer: it’s all in your approach.

You want to use a combination of phone calls, mail or e-mail,

and in-person visits, if feasible. You might start with a phone

call followed by a letter or e-mail on the same day. If you get

no response, follow up with another call and letter or e-mail

about five business days later. After your third call and letter,

stop by in-person. If an in-person visit isn’t feasible, make a

fourth call five days after the third call and letter. Finally, finish

with a “last-chance-to-get-back-to-you” phone call.

Also, be pleasant and conversational in all your

communication, as if you are talking to a close friend or family

member. While energy and enthusiasm are good and some

is recommended, too much will make peoples’ defenses go

up.

5) Follow up and follow through.

Once you have a prospect, you have to keep your

momentum. Making a good first impression is great, now you

have to follow it up by making a good second, third, fourth

impression, etc. You are only as good as your last interaction

so make sure you stay in touch and continue to impress

each time. To keep the momentum, first, do what you say

you’ll do when you say you’ll do it and second, go above and

beyond. Doing what you’ll say you’ll do is the quickest way

to build trust and credibility, not doing what you say you’ll

do is the quickest way to destroy trust and credibility. Also,

going above and beyond and pleasantly surprising people

are the fastest ways to build long-term loyalty.

John Chapin’s specialty is helping salespeople and sales teams

double sales in 12 months. He is an award-winning sales

speaker, trainer and coach, a number one sales rep in three

industries, and the primary author of the gold-medal winning

“Sales Encyclopedia”. In his 24 years of sales, customer service

and management experience, he has sold in some of the

toughest markets and economies. If you would like access to

John’s free white paper on what it takes to be successful in sales

along with a monthly newsletter, you can visit John’s website at

http://www.completeselling.com.

“Bring Your Own Device” Opportunities & Risks

Employees expect it; but employers need to manage the risks

The consumerization of IT revolution — sparked by the iPhone —

has shifted the IT culture so that the users are the ones getting

the latest, cutting edge technologies first, and they want to bring

those devices to work.

— PC World Magazine, Dec. 20, 2011, Tom Bradley

“Pros and Cons of Bringing Your Own Device to Work”

What Is BYOD?

Many workers today expect the companies they work for to

allow them to use their personal mobile devices and personal

computers at the office, and/or to provide remote connectivity

to the office via personal devices. Technologists dub this trend

“BYOD” (bring your own device).

Why is BYOD Important?

Mobile devices — along with their applications and on-thego

Internet access — provide attractive options for speed,

connectivity and productivity. Many people wouldn’t think of

spending their workday without a Blackberry, iPhone, Android,

iPad or other device to access company systems and data.

Most important, senior managers want to use these devices and

are using their organization’s technology more because of them.

Many employees see their own personal devices as superior

to those provided by their employers. Employees also tend to

believe they are more productive if allowed to use their own

devices for work and data syncing between office and home.

Thus, BYOD is significant because employee-owned devices

are now accessing company systems and being used for work

purposes presenting security and privacy concerns to the

employer.

Employers see the inherent value in a more mobile, more

connected and more productive workforce. Many employees

and managers have no problem connecting and addressing

work issues after hours and/or on the weekends. It can be

considered a motivational strategy.

What Are the Security Risks?

BYOD mobility offers access to enterprise data, systems and

corporate email. Employees can store and process data and

connect to networks.

While BYOD may be considered necessary and convenient, this

type of connectivity can raise significant data security and privacy

(continued on page 15)

page 15

A Publication of Independent Insurance Agents of WV


“Bring Your Own Device” Opportunities & Risks

(CONTINUED FROM PAGE 15)

concerns which lead to potential legal

and liability risks.

Consider:

1. The device gets lost or stolen

with access to company data and

systems.

2. The device contracts a virus or has

malware installed that can obtain

company logins and data from that

device.

3. The personal device user —

however good his/her intentions are

— can in effect be circumventing

company security standards.

4. The company cannot control the

use of the personal device should

the employee allow children or friends to use the device.

5. The employee may use the device to place files in personal

applications in the cloud which may not be secure.

6. The employee plugs a mobile device into the USB port of

his or her office computer thereby transmitting a virus to the

office desktop.

Here are some facts to consider when trying to balance personal

device access with security:

Employees don’t perceive the risk.

Many employees perceive the use of their own devices at work

as placing no extra burden on technical support. But dealing

with any data or system security issue requires know-how and

technical resources.

8/07 4:45:24 PM

8/07 4:45:24 PM

Executives perceive the risk, but aren’t fully ready.

In August of 2011, a Deloitte webcast poll of more than 1,000

U.S. information technology and business executives found

that 28 percent of respondents believe there are unauthorized

personal digital assistants (PDAs) and/or tablets connecting to

company systems, especially to email servers. About 87 percent

of respondents think their systems are at risk for a cyber attack

originating from a mobile security lapse, the poll reported.

The same poll found 40 percent of

respondents are unaware of whether

their organizations have strategies or

controls to enforce mobile security.

Further, it found that only 24 percent

of respondents believe that “all

devices connecting to my intranet

are authorized.” Only 17 percent

reported that they monitor for rogue

connections.

Malware is on the move.

Malware that targets mobile devices

is increasing, reported IBM Security

Solutions researchers in a fall 2011

whitepaper. Citing an IBM security

research report, the whitepaper

presented statistics showing that

mobile operating systems vulnerabilities tripled from 60 to a

projected 180+ from 2009 to 2011.

Enterprise systems and mobile systems are catching up

with each other.

While many corporations have for years allowed Blackberrybased

access to email and other company systems, users are

now demanding that iPhone/Android-based smartphones and

tablet computers be provided access to these same services.

How do you proceed once BYOD is determined necessary?

Since there are risks to the mingling of personal devices and

work systems, companies must take the lead in assessing and

I managing will not the accept risks so as policy to safeguard changes their systems and data.

from Some simple a third steps party. include:

I will not accept policy changes

1. Institute a strong written BYOD Policy that is consistent with

from a third party.

the organization’s Employee Handbook policies such as the

I will not accept policy changes

IT Policy and Acceptable Use Policy.

from a third party.

I 2. will Determine not accept which data policy to protect. c

3. Define what devices will be supported.

4. Determine which employees need remote access via

personal devices. Do not open BYOD participation beyond

(continued on page 18)

I will not accept policy changes

from a third party.

I will not accept policy changes

from a third party.

I will not accept policy changes

from a third party.

I will not accept policy c

AT THE BIG “I” PROFESSIONAL LIABILITY PROGRAM,

WE TAKE CLAIMS PREVENTION

VERY SERIOUSLY.

You carry professional liability insurance to protect you in the

event of a claim. But is your carrier helping you to prevent a

claim in the first place?

The Big “I” has dedicated significant resources to bringing the

best claims prevention information and strategies to your agency.

And while we wonʼt really make you write it out on a chalkboard,

we believe that the best way to protect your business is to help

you protect yourself.

-VISIT INDEPENDENTAGENT.COM/EOCONTACT TODAY-

page 16

A Publication of Independent Insurance Agents of WV


WAPAC Contribution Form

WaPaC West Virginia Agents Political Action Committee

The West Virginia Agents Political Action Committee (WAPAC) is a political action committee established by independent

insurance agents. WAPAC was established to provide independent insurance agents with a mechanism to support

candidates for the West Virginia House of Delegates and State Senate, judicial candidates at the Supreme Court and Circuit

Court level and candidates for statewide office such as Governor and other Council of State candidates who share our

membership’s business philosophies.

Please print neatly.

____________________________________________________________________________________________________________

Full Name

____________________________________________________________________________________________________________

Address

____________________________________________________________________________________________________________

City State Zip

WAPAC is required by law to report the following information for all contributions over $250.

____________________________________________________________________________________________________________

Occupation

Employer

Enclosed is my contribution for $ __________

Personal Check (made payable to WAPAC)

Personal Visa | MasterCard | American Express

____________________________________________________

Account Number

____________________________________________________

Cardholder Name (as listed on card)

Contributions to WAPAC are not

deductible as charitable contributions

for income tax purposes.

Check if address is same as listed above.

____________________________________________________

Billing Address

____________________________________________________

City State Zip

____________________________________________________

Signature

____/____/________

Date

Independent Insurance Agents

Please of return West Virginia, form and Inc. payment to:

WAPAC, c/o IIAWV

PO Box 1228 | Charleston, WV 25324-1226

page 17

A Publication of Independent Insurance Agents of WV


“Bring Your Own Device” Opportunities & Risks

(CONTINUED FROM PAGE 16)

those employees that have a strong business reason for

mobile access.

5. Define security requirements.

6. Train and educate employees concerning policy and BYOD

use.

7. Monitor employee mobile devices for compliance with your

organization’s policy.

8. Secure employee’s authorization to “wipe” the employee’s

mobile device remotely (restore to the original factory state),

as a condition of giving access to any of the business’s

systems.

9. Place controls over access to and use of the company’s

wireless internet. For example: do not broadcast your

wireless SSID, restrict access to employees only using MAC

address filtering in the router and invoke WPA 2 on the router.

Security Solutions

If an enterprise is allowing employees to use their own mobile

devices, the following security measures should be implemented.

1. Require strong phone startup PIN which is at least 6 – 8

characters long. If not supported, use the maximum allowed.

Reduce the PIN required timeout setting to no longer than 10

minutes.

2. Require specified encryption and anti-malware software on

each device.

3. Require and install mobile tracking software/applications

which allow online access to track the location of a lost/

stolen phone and the ability to perform a lock/scream and/or

remote data wipe. Secure employee’s authorization to take

these actions on the device if the device is misplaced, lost or

stolen, as a condition to giving the employee access to the

business’s systems and data.

4. Do not allow “broken”/”rooted”/“jailbroken” devices on your

network. These phones have removed limitations installed on

the phone by the carrier allowing the user to run apps and

files not approved by carriers. This process opens the device

up to security risks.

5. Large enterprises monitoring multiple devices and platforms

should consider Mobile Device Management (MDM) software.

MDM software centrally controls and protects the data and

configuration settings for all mobile devices in the network.

MDM can also provide a secure document delivery platform

and end to end data transmission encryption.

The opportunities of BYOD are present — and here to stay. As

an analogy, home security is more complex for a bigger house

with more entrances and windows. So too is systems security

more complicated as smartphones and other remote devices

present new entry points to be analyzed and protected.

All of the security tips presented here are simply guidelines to aid

agencies in diminishing security and privacy risks and managing

them. However, none can be guaranteed 100% effective.

Danielle Johnson is the VP, Director of Information Technology

at InsurBanc, which IIABA and the W.R. Berkley Corporation

established to assist independent agencies with their specific

banking needs. This article reflects the views of the author and

should not be construed as an official statement by ACT.

Advertise in the

The West Virginia Insuror

Call us at (304) 342-2440

Independent Insurance Agents of West Virginia, Inc.

179 Summers Street, Suite 321 • Charleston, WV 25301

Mailing address:

P.O. Box 1226 •Charleston, WV 25324

Independent Insurance Agents

of West Virginia, Inc.

Phone: (304) 342-2440 • TF: (800) 274-4298 •Fax: (304) 344-4492

page 18

A Publication of Independent Insurance Agents of WV


The mission of the Independent Insurance Agents of West Virginia is to

be the unrelenting advocate for independent insurance agents and to

fulfill member needs while serving the public’s best interest.

www.iiawv.org | (304) 342-2440

More magazines by this user
Similar magazines