Volume 21, Issue 22 - Independent Insurance Agent

iiaba.net

Volume 21, Issue 22 - Independent Insurance Agent

The West Virginia

Insuror

INSIDE

THIS ISSUE

2 New FCRA Forms Required

by Jan. 1, 2013

3 West Virginia and Feds To

Share Health Insurance

Exchange

3 Note from the CEO

4 Treasury Completes Final

Sale of AIG Stock

4 Marsh Names Pittsburgh-

Based East and Central

Zone Mining Leader

Manchin Earns Spot on Senate

Banking Committee

U.S. Senator Joe Manchin (D-W.Va.)

has announced that he will represent

West Virginians on the Senate Banking

Committee, in addition to his current

assignments on the Energy, Armed Services

and Aging committees.

“At a time when we our economy is still

wounded and recovering ever so slowly, it

is important that our community banks and

local credit unions serve their customers

and communities to the best of their ability,”

Senator Manchin said. “We need to make

sure that our community banks can provide

a greater range of financial services and

allow financial institutions to raise capital

responsibly. Our banking system can

become more transparent while ensuring

banks and credit unions can provide

responsible loans to businesses to create

jobs and decrease the unemployment rate.

“As the 112th Congress comes to an end

and the 113th Congress begins, I am

excited to welcome my new colleagues from

both sides of the aisle and work together

with Democrats and Republicans to help fix

our financial challenges. It is a critical time

in our nation’s history where we need to put

politics aside and look toward fixing today’s

problems for our children and our children’s

children.

“I am particularly pleased with the Energy

Committee’s potential in the new Congress

because the new chairman and ranking

member – Ron Wyden and Lisa Murkowski,

respectively – have visited our great state

and seen a true all-of-the-above approach

to energy independence. The Aging

Committee continues to be an important

voice for our state as our population ages,

and I was proud to host a Congressional

field hearing on the Older Americans Act in

Charleston this year. Finally, as a member

of the Armed Services Committee, I am

determined to make sure that we end the war

in Afghanistan so we can rebuild America,

take care of our veterans and reduce our

reliance on expensive contractors.

“I am so proud to serve the people of West

Virginia on these critical issues, and I hope

that the people of our great state continue

to share their commonsense ideas, priorities

and concerns with me.”

5 GEICO Hiring More Than

4,000 New Associates

in 2013

7 Marketing Tip of the Week:

7 Elements of Good

Customer Service

8 Can One CGL Insured

Sue Another One?

9 Rev Up Collector

Cars Coverage

11 The Seven Keys to a

Powerful Sales Presentation

14 Estate Plans: A Valuable

Service to Your Clients and

Your Agency

Volume XXI | Issue XXII

DECEMBER 15, 2012

A Publication of

Independent Insurance

Agents of West Virginia

Gray Marion, CAE, Publisher


New FCRA Forms Required by Jan. 1, 2013

Big ‘I’ memo updated to include new forms related to consumer reports

New regulations have been published modifying three important

forms required by the Fair Credit Reporting Act (FCRA) relative

to consumer reports. This follows the transfer of responsibility

for interpretation and primary enforcement of the FCRA from

the Federal Trade Commission (FTC) to the Consumer Financial

Protection Bureau (CFPB), which was established by the Dodd-

Frank Wall Street Reform and Consumer Protection Act signed

into law by President Obama on July 21, 2010.

The modified forms are:

• Summary of Consumer Rights under the FCRA. This

form must be given to applicants and employees who will

be subject to an investigative consumer report, who receive

an adverse action notice, or who receive a copy of their

consumer report. CLICK HERE to view a copy of the form.

• Notice to Furnishers of Information of their Obligations

under the FCRA. This form must be given when credit

or insurance-related information is given to consumerreporting

agencies or third parties, including employers.

CLICK HERE to view a copy of the form.

• Notice to Users of Consumer Reports of their

Obligations under the FCRA. This form must be given to

third parties that are given consumer reports. CLICK HERE

to view a copy of the form.

The change in the new forms from the prior versions is that they

inform consumers that information about their rights under the

FCRA is available from the CFPB, rather than the FTC.

The Office of General Counsel’s updated memo on the FCRA

is posted on the Big “I” portal available only to association

members. To access the memo, log in to independentagent.

com; select Resources, Legal Advocacy and Memoranda

& FAQs; and choose the memo, “Overview of the Fair Credit

Reporting Act, the Fair and Accurate Credit Transactions Act,

and the Drivers Privacy Protection Act.”

In light of the changes in the FCRA forms, the role of the CFPB,

and the increased attention to consumer protection on a state

and federal level, agents are encouraged to remain abreast of

developments in this area and ensure that the new forms are

used as required by Jan. 1, 2013.

Do you have

some news to

share? Click

here to send

us an email

about it!

Visit us online!

The

West Virginia

Insuror

www.iiawv.org

page 2

A Publication of Independent Insurance Agents of WV


West Virginia and Feds To

Share Health Insurance

Exchange

When West Virginians sign up for subsidized health insurance

under the federal health-care law overhaul, they’ll likely tap an

“exchange” set up as a partnership between the state and

federal government, Governor Earl Ray Tomblin’s aides told

state lawmakers on Monday, December 10.

The state-federal partnership costs less and allows West

Virginia to have a say in some of the health insurance exchange’s

regulations, said Rob Alsop, Tomblin’s chief of staff. He called

the partnership the “best alternative” for the “cards we’ve been

dealt.”

“The governor’s approach is quite simple,” Alsop told

lawmakers during a joint House-Senate meeting Monday. “If

you have a seat at the table, and we can do what’s right by

West Virginians, then we should do that.”

West Virginia, like other states, also had the option to run its

own health insurance exchange – or turn the entire program

over to the federal government.

At least 16 states and the District of Columbia have announced

plans to run exchanges themselves. Another 18 states plan to

leave the exchange in the hands of the federal government.

Seven states, including Ohio and now West Virginia, are

proceeding with the hybrid approach.

The federal government does most of the heavy listing under

a shared exchange. West Virginia would play a minor role –

perhaps monitoring insurance companies that participate –

once the exchange is up and running on January 1, 2014.

“Our tentative plans are to proceed with the state partnership

exchange to retain the ability to assist consumers and industry,

while avoiding the financial liability of a state-based exchange,”

said Jeremiah Samples, a state Insurance Commission

employee who’s heading the project. “We’re still working

out details with the federal government of what exactly the

partnership entails.”

Samples said it would be difficult to sustain a state-operated

health insurance exchange because of exorbitant information

technology costs. “A state-based exchange is unfeasible at

this time due to the fiscal burden on consumers, industry and

the state,” Samples said.

Meanwhile, West Virginia would have had to relinquish all

control if the federal government operated the exchange, he

said.

Note from

The CEO

Gray Marion, CAE

IIAWV Chief Executive Officer

gmarion@iiawv.org

Ordinarily, I would be filling this space with a column

devoted to a recap of the association’s operating

year and all of the accomplishments of your volunteer

leadership and staff while pursuing the goals and

objectives of our membership. I would be reminding

you of the value of membership and the need for all of

us to be a part of our professional community in the

coming year. As important as those concepts are,

this year they just don’t seem to carry the importance

they usually do, so I’m not going to dwell on them, at

least not today.

Today is Monday, December 17, 2012. Today’s

news is and will continue to be the horrible events

that transpired in Newtown, Connecticut last Friday.

There are no words that can adequately convey the

sadness that has blanketed that small town in the

wake of the tragedy. I cannot bring myself to even try.

As I have sat and listened to the reports, I have been

reminded that there have been many other tragedies

in our nation this year and, indeed, in the world at

large. Somehow there seems to be more of them

this year or, maybe it’s just that each new one seems

to be more terrible than the last. Every new report

seems to make my heart ache more deeply. I find

myself wondering if it will ever end.

I was thinking about all of this as I sat down to write

this column. It didn’t seem right to talk business so,

I won’t. I just can’t do it. What I can do and want to

do is wish each and every one of you a warm and

safe and secure Christmas holiday. I intend to spend

mine with my family and friends and I hope that you

will as well. I intend to smile a little brighter, hug a

little tighter and tell the people I love that I love them.

My Christmas wish for each of you is that you will do

the same.

Merry Christmas and God Bless us every one.

“The full federal exchange was deemed to create too great a

regulatory burden for consumers and industry,” Samples told

lawmakers.

(continued on page 8)

page 3

A Publication of Independent Insurance Agents of WV


Treasury Completes Final Sale of AIG Stock

The U.S. Treasury Department has

announced it has completed its final

sale of common stock in American

International Group, reducing its shares

in the insurer to zero four years after a

massive government bailout.

Treasury has said it received $7.6 billion

in proceeds from the sale of its remaining

234 million shares at $32.50 per share. Overall, Treasury and

the Federal Reserve received a $22.7 billion positive return on

their combined $182.3 billion bailout, the department said.

“This sale officially begins a new chapter at AIG,” Chief Executive

Robert Benmosche said in a statement.

The sale was part of Treasury’s efforts

to wind down its Troubled Asset Relief

Program (TARP), created in 2008 to

help rescue companies stricken by the

financial crisis.

More than 90 percent ($380 billion) of

the $418 billion disbursed for TARP has

already been recovered to date through

repayments and other income, Treasury said in a statement.

AIG was rescued just before it would have been forced to file

for bankruptcy, as losses on risky derivatives mounted. It was

bailed out as the financial system stood at the brink of disaster,

shortly after Lehman Brothers filed for bankruptcy and Merrill

Lynch sold itself to Bank of America.

Marsh Names Pittsburgh-Based East and

Central Zone Mining Leader

Marsh, the insurance broking division of

Marsh & McLennan Cos., announced that

Douglas Schwab has rejoined the firm

as its new East and Central zone mining

leader.

In this newly-created position, Schwab

will be responsible for ensuring consistent

delivery of advisory and transactional

services to Marsh’s clients in the East and

Central zones, which include offices in 30 states.

Based in Pittsburgh, Schwab will report to Ken Sloan, Marsh’s

U.S. mining practice leader.

Schwab brings to Marsh more than 30 years of mining and

energy insurance industry experience, as a broker, underwriter,

and risk management professional. He rejoins Marsh from Wells

Fargo Insurance Services, where he was a senior vice president

within its energy and mining practice.

Schwab has also held positions at Chubb, Consolidated Natural

Gas Co., and Marine Office of America Corp. He was previously

an account executive and producer in Marsh’s Pittsburgh office

from 1987 to 1991.

Visit us online!

www.iiawv.org

page 4

A Publication of Independent Insurance Agents of WV


GEICO Hiring More Than 4,000 New Associates

in 2013

GEICO, an insurer that handles auto insurance coverage for

over 11 million private passenger auto policies and insures

more than 18 million vehicles (auto &

cycle), announced it will hire more than

4,000 new associates in the upcoming

year. The company, which has grown

its associate population by nearly 20

percent in the past five years, will hire

new employees in all offices, including

auto damage adjuster and legal positions

in many states throughout the country.

“We are pleased to announce that

because of GEICO’s continued growth, we’re hiring for customer

service, claims, sales, and auto damage adjuster positions in

all of the company’s regional offices and service centers, all of

which are located here in the United States,” Jan Stewart, vice

president of human resources said. “The company’s corporate

office, located near Washington, D.C., is also recruiting for

qualified information technology developers, actuaries and

analysts.”

“GEICO takes much pride in offering a lot of training and support

to associates and promoting from within,” Stewart said. “Rather

than just providing jobs to our associates, we

help them build rewarding careers.”

GEICO’s college recruiters will also be on

campuses across the country throughout the

spring semester recruiting bright, driven grads

for fast-track leadership programs in business

and information technology.

GEICO offers competitive starting salaries, paid

training, comprehensive benefits packages,

continuing education opportunities and a friendly, supportive

workplace. Interested job seekers can go to the GEICO Careers

website to learn more and apply for openings.

The company will host numerous training classes starting in

January and February in claims, customer service and sales,

and applications are now being accepted.

Independent Insurance Agents

of West Virginia, Inc.

page 5

A Publication of Independent Insurance Agents of WV


page 6

A Publication of Independent Insurance Agents of WV


Marketing Tip of the Week: 7 Elements of

Good Customer Service

The customer still comes first

The characteristics of good customer service are not complex,

and such simple rules of thumb are good reminders for anyone

involved with servicing clients.

The October Rough Notes article “Seven Elements of Good

Customer Service” features ways to effectively engage with

customers. Below are the story’s highlights:

• Smile! A smile can truly be heard over the phone line.

• Never argue with a customer: When you hear your own

voice start to rise, it is time to take a step back.

• Communicate with your customers by providing true

explanation for their questions.

• Remember that clients are not interruptions in the work day.

Clients are what keeps the organization in business.

• Remember clients beyond renewal dates or when their

bill is due, such as recognizing an event or achievement.

Customers remember those small details and will appreciate

them.

• Document everything. In addition to avoiding errors &

omissions losses, documentation avoids customers having

to explain a situation over and over.

• Stay current on industry news. What happens in the world

does affect the insurance industry, and a good service

professional will keep current on insurance news.

Although good customer service involves many elements, it

boils down to two simple things: Treat others as you would want

to be treated and strive to be the best professional you can be.

This article was shared courtesy of Sam Berman of Rough Notes

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page 7

A Publication of Independent Insurance Agents of WV


Can One CGL Insured Sue Another One?

Agents are often asked to provide

cross-liability coverage. But does it exist?

One of the most common questions received by the Big “I”

Virtual University’s Ask an Expert service is how to provide

“cross-liability” coverage under commercial general liability.

The question typically arises from a certificate request for the

coverage or, more often, a request to remove a cross-liability

exclusion.

The term “cross liability” deals with whether or not one insured

can sue another under a liability policy. The bad news is that,

under the ISO program, there is no endorsement to provide

cross-liability coverage. The good news is that there’s no

endorsement because none is needed; it’s included in the CGL

policy itself and has been since 1986:

7. Separation Of Insureds

Except with respect to the Limits of Insurance, and any rights

or duties specifically assigned in this Coverage Part to the first

Named Insured, this insurance applies:

a. As if each Named Insured were the only Named Insured; and

b. Separately to each insured against whom claim is made or

“suit” is brought.

Why people still ask for a “cross-liability” endorsement to remove

a nonexistent exclusion (unless they want to limit such suits) is

a mystery. In fact, some states may have a statutory provision

prohibiting the use of cross-suit exclusions in most basic liability

policies.

Most likely, you’re dealing with attorneys or consultants who

either aren’t up on things or don’t know what they’re asking

for—they’re just looking at an outdated “cheat sheet” that says

they should ask for this.

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

West Virginia and Feds To Share Health

Insurance Exchange

(CONTINUED FROM PAGE 3)

The state Insurance Commission estimates that 37,000 to

60,000 West Virginians will seek health-care coverage through

the new online health insurance marketplace.

West Virginia has received $10.6 million in federal grants to

set up the program. The program will allow consumers to go

online – or over the telephone – to shop for health insurance at

discounted rates.

“The exchange is the marketplace for obtaining health-care

coverage,” Samples explained. “The exchange serves as a onestop

shop. [It’s] available to all consumers.”

The exchange is expected to cost about $12 million in 2014, and

about $10.7 million in 2016, according to a report presented to

state lawmakers Monday.

House Health Committee Chairman Don Perdue said he would

have preferred a state-run health insurance exchange, but

understands the governor’s decision to partner with the federal

government.

“There was a concern we couldn’t sustain the program,” said

Perdue, D-Wayne.

Samples and Alsop said the state could decide to operate its

own program in future years, after evaluating the state-federal

partnership.

West Virginia also could join another state’s exchange or a multistate

partnership.

“From year to year, a state can modify its approach,” Alsop said.

Samples said he plans to meet with “stakeholder groups”–

(continued on page 9)

page 8

A Publication of Independent Insurance Agents of WV


Rev Up Collector Cars Coverage

Access insurance from Chubb through Big ‘I’ Markets

Did you know that Big “I” Markets agents have access to Chubb

for collector cars? You might not need it every day—but when

you do, you’ve got a great coverage.

Chubb will entertain new collector car risks provided that they

meet the following guidelines:

• All operators in the household must have good driving

records.

• The vehicle should not be operated by anyone under the age

of 25.

• Operator should have experience operating similar vehicles

(i.e. high performance).

• There is one regular-use vehicle per operator. (Must have at

least one regular use vehicle that is operated on a regular

basis in addition to the collector car.)

• It is intended that the vehicle is used primarily for collector car

purposes.

• The vehicle is not used during instruction, practice, preparation

for or participation in any competitive, prearranged or

organized racing or speed contest.

• The vehicle is not used on a racetrack, test track or any other

course of any kind.

• The vehicle is garaged.

Check out an agent desk reference on collector car insurance

and download a customer testimonial that you can share

with your clients.

The collector car insurance program is available to members in

all states. For more information or to request a quote, log into

bigimarkets.com and select Collector Cars from the personal

lines menu.

You may also contact underwriter Linda Phillips directly at

703-706-5429 with any questions.

West Virginia and Feds To Share Health

Insurance Exchange

(CONTINUED FROM PAGE 8)

consumers, medical professionals and insurance company

representatives – in the coming months. The state has until

February 15 to submit detailed plans about the partnership

exchange to the federal government.

“There’s a lot of information we have to continue to sift through

that we will continue to assess,” Samples said. “There’s a

tremendous amount of work.”

Article by Eric Eyre, Charleston Gazette

page 9

A Publication of Independent Insurance Agents of WV


UNLOCK

Your IIAWV and Big “I”

Member benefits

What will your email address

and password help you access

to on the Big “I” Web site?

Your IIAWV username and password are the keys to a

host of online resources available exclusively to IIAWV

members. Visit www.iiawv.org to explore the program

offerings or use the direct addresses below to log in

and see what treasures you may find.

IIAWV

www.iiawv.org

The West Virginia Insuror

Legislative Updates

Conventions

Virtual University

www.iiaba.net/vu

Research Library

Ask the Expert

Register for on-line CE classes and webinars

Sign-up for the free newsle er

IA magazine

www.iamagazine.com

Access online ar cles from the monthly print publica on

and read your weekly Insurance News & Views newsle er.

Legal Advocacy

www.iiaba.net (Click on “Legal Advocacy”)

Carrier Contract Reviews

Hot topics on Capitol Hill

Informa on on insurance related Federal court cases

Industry Legal Issues

Big “I” Markets

www.bigimarkets.com

Access commercial and personal lines products such as

affluent homeowners and commercial package products

from top carriers, with no fees and no produc on minimums.

Member Marke ng Ac vity Center

www.iiaba.net/mmac

Access a suite of marke ng resources including leads,

postcards and email campaign ideas.

Big “I” Professional Liability Virtual Risk Consultant

www.iiaba.net/vrc

Use your login creden als to purchase the on-line underwri

ng and sales reference library.

Big “I” Professional Liability Risk management Website

“E&O Happens”

www.iiaba.net/eohappens

Dive into a wealth of risk management resources available

to Swiss Re policyholders.

Trusted Choice®

www.trustedchoice.com/agents

Access logos, adver sing material, branding guidelines plus

your agency’s profile and account informa on.

It is important that names and email addresses for each

agency employee be listed in our member database. Many

of our website pages are proprietary and may only be

accessed with your user ID and password. Your email

address is your user ID. If you don’t know your password

select the “Forgot username or password?” op on listed on

any page of the IIAWV website (www.iiawv.org) and it will be

sent to you.

Feel free to contact us at (800) 274-4298 with ques ons on

these resources or other member benefits.

page 10

A Publication of Independent Insurance Agents of WV


THE Seven Keys to a Powerful Sales

Presentation

A powerful sales presentation can be

your strongest close. Assuming you

have a qualified and interested prospect,

if you do the sales presentation correctly,

you will close the sale. This article will

discuss the seven key components of a

powerful sales presentation. With these

seven items in place, you will be well on

your way to success.

Seven Keys to Powerful

Presentations

1) Make your presentation interesting and to-the-point.

Your presentation needs to catch and keep the prospect’s

attention and interest. Make it interactive. Ask the prospect

questions and involve her in ways that make her an active

member in the proposed solution. Use interesting examples and

stories that mirror her situation and spell out how others have

benefited from using you and your company in similar situations.

2) Deliver your presentation with energy, enthusiasm, and

emotional logic.

You need to show energy, enthusiasm, and excitement for your

product. At the same time, you don’t want to overwhelm the

prospect with too much energy and excitement. If your prospect

is a high-energy individual, match their energy level. If your

prospect is more subdued, show energy and excitement that is

one level above theirs.

In addition to showing energy and enthusiasm, you need to

back your presentation up with logic. Remember: people buy

on emotion and justify their decision on logic.

Bottom line: Put life, energy, and enthusiasm in your voice, and

make sure your sales presentation makes good logical sense.

3) Address the specific needs, desires, and concerns of the

prospect, and speak to her hot buttons.

Each presentation will be different because each prospect has

different needs, desires, and concerns. If you’ve done your work

properly during previous calls, you understand what the prospect

is looking for and you’ve uncovered some hot buttons. You will

now educate the prospect on how your product or service fills

her unique needs and desires. Show caring, understanding,

and empathy for the prospect, and show that you are seriously

interested in helping her out.

Make sure you focus on the benefits and what’s in it for the

prospect. Features are fine, but you must articulate what those

features mean to the prospect with regard to what is important

to him or her.

4) Deliver your presentation in a clear,

concise, and articulate manner.

Your sales presentation should be easy to

understand, to the point, and it should be

delivered in terms that the prospect will

understand. You want to use as few words

as possible while at the same time, using

the most effective words possible. Also, no

acronyms or other terms and phrases that

the prospect may not be familiar with.

Finally, keep your initial presentation to a

maximum of three solid points. If you overwhelm the prospect

with too many points, you will probably hear, “I want to think

about it” or “send me some information.” If you have other legal

items and disclosures that you have to cover, save those for the

paperwork phase after the prospect has decided to buy.

5) Your presentation should lead naturally to the close.

Your sales presentation should be designed in such a way

that it walks the prospect smoothly through the presentation,

addressing all needs and concerns, and flows right into the

close. If your presentation is straight-forward, conversational,

and covers all the bases, the close is simply the natural

conclusion of the presentation.

6) Have a presentation script.

While each presentation will be different based upon the

individual prospect’s needs and desires, most of the pieces

remain the same, you’ll simply use different ones and arrange

them differently. Each feature and benefit, story, and piece of

information you need to convey, must be well thought out,

well prepared, written down, committed to memory, and most

important, proven to work. Some people believe that having a

written presentation is too unnatural—you may sound as though

you are reading (if on the phone), or canned (if in person). The

way to avoid this is by practicing, drilling, and rehearsing your

presentation pieces to the point where you know them verbatim.

The goal of a script is to make sure you cover everything you

need to cover in as few words as possible while at the same

time, using the most effective words possible. Writing out each

piece of your presentation and committing them to memory will

ensure consistency throughout your presentation, it will also

help identify any problems with your presentation.

Note: Don’t reinvent the wheel, get a presentation script that

you know works from one of the top people. You want their

results, so use what they use.

7) Continuously update and improve your presentation.

The pieces of your presentation can always be better and

(continued on page 12)

page 10 11

A Publication of Independent Insurance Agents of WV


THE Seven Keys to a Powerful Sales Presentation

(CONtinued from page 11)

you can always be more effective, so keep working on your

presentation, keep honing it, and keep improving it. You can

always use more effective words, examples, and get better at

delivery.

By John Chapin

If you would like access to John’s free monthly newsletter and a

white paper on what it takes to be successful in sales, you can

visit John’s website.

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”. You can e-mail John at johnchapin@

completeselling.com.

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many umbrella needs.

To access log onto www.bigimarkets.com

or visit www.iiaba.net/Umbrella.

Cover them all with the

Big “I” Umbrella Program.

As a Big “I” member, you have access to two stand alone personal umbrella markets which enables you to write most

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placing your stand alone umbrella business with the Big “I” Advantage Umbrella Program.

Preferred Market - RLI Personal Umbrella

• Limits up to $5 million available

• Excess UM/UIM available in all states

• You can keep your current homeowner/auto insurer

• New drivers accepted - no age limit on drivers

• Up to one DWI/DUI per household allowed

• Auto limits as low as 100/300/50

• Competitive, low premiums for increased limits of liability

• Simple, self-underwriting application that lets you know immediately if the insured is accepted

• E-signature and credit card payment options

• Immediated coverage availabe in all 50 states plus D.C.

Alternative Market - Anderson & Murison

• UM/UIM available on an admitted basis in most states

• Limits up to $10 million available

• Ideal for risks that have drivers with multiple violations/accidents

• Will consider high profile personalities such as elected officials, athletes, media personalities & entertainers

• Will consider risks with prior liability losses exceeding $25,000

• Drivers over age 75 acceptable with two violations

• Drivers under age 22 can have minor violations

• Driver exclusion endorsement available for drivers with unacceptable driving records

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page 10 12

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

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 13

A Publication of Independent Insurance Agents of WV


Estate Plans: issue IV

A Valuable Service to Your Clients and Your Agency

“The estate planning and insurance

professions operate with the same

goal in mind: planning for our clients’

future. Because of this shared goal, it is

important for both professions to have

a working understanding of the various

estate planning documents available to

best serve our clients’ needs.

• For tangible personal property such as furniture and

china, a memorandum of tangible personal property

can be attached to the will. Be aware, however, in

order for this list to be legally binding, the will should

refer to the list, and the list should be signed before or

contemporaneously with the will. If the list is signed

after the will, it demonstrates the testator’s desire, but it

is not legally binding.

Toward that understanding, I have

developed an eight part series of short articles designed

to highlight the common documents of an estate plan. In

addition to a discussion about the purpose and format of

these documents, I will also address the consequences

when one of those documents is missing from an estate

plan. In the course of this series, it is my hope that you will

become familiar with some of the reasons for the various

estate planning documents and how each may be beneficial

to you and your clients.”

What sorts of provisions should my will contain?

A will should contain:

• A section that sets forth the names of the individual

beneficiaries and the property they will receive. For

each specific bequest, the testator should specify what

will happen if the beneficiary is not alive at the time of

testator’s death (i.e. pass to another person or fall into

the residue of the estate).

An example of a specific bequest: My residence

located at 123 Maple Street to my son, Henry, or if he

predeceases me, to my grandson, Theodore.

• The residue clause provides for the disposition of all

property not distributed under specific bequests.

• Wills do not merely dictate where the estate goes

upon the testator’s death; a well-drafted will includes

provisions to address each aspect of the testator’s

estate.

• For instance, a will should provide for the treatment

of expenses, debts, obligations, and taxes owed

by the estate.

• Additionally, it should name an executor (and an

alternate) to carry out the administration of the

estate.

• If the testator has any minor children, the will

should also name a guardian and an alternate.

Audy Perry is a partner at Huddleston Bolen LLP and advises

individuals on matters involving their personal wealth, including

estate planning, trust, charitable giving, business succession

planning, asset protection, and real estate matters.

Advertise in the

The West Virginia Insuror

Call us at

(304) 342-2440

Independent Insurance Agents

of West Virginia, Inc.

Independent Insurance Agents

of West Virginia, Inc.

179 Summers Street, Suite 321 | Charleston, WV | 25301

Mailing address:

P.O. Box 1226 | Charleston, WV | 25324

P: (304) 342-2440| TF: (800) 274-4298 | F: (304) 344-4492

page 14

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

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