EF summer 08.indd - National Association of Professional Allstate ...

Exclusivefocus 

Summer 2008 

An Official Publication of the National Association of Professional Allstate Agents, Inc. 

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Agent Owned 

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What to Expect on 

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Managing Agents 

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Summer 2008 

An Official Publication of the National Association of 

Professional Allstate Agents, Inc. 

FEATURES 

17 How Safe is Your Identity 

BY STACY NUTTER 

20 The Kafka Interview 

INTERVIEW CONDUCTED BY JIM FISH 

26 There Must be a Better Way...One Agent’s View 

34 Standing By You Since 1990 

BY JIM FISH 

48 Open Letter to the Allstate Board of Directors 

49 An Unedited Letter to Tom Wilson 

51 Exit Strategy 

BY RICHARD LARKIN, CLU 

BUSINESS 

24 Would You Like 

Fries with That 

BY JOHN BOE 

38 Grow in a Hurry in 2008 

BY DAVID NEUENSCHWANDER 

43 8 Tips for Securing Your 

Allstate Agency Loan 

BY PAUL CLARKE 

54 Is Your Staff “Engaged” 

BY NANCY FISH 

56 Stronger Documentation 

Creates Stronger Client 

Relationships 

BY BASIA REMIASZ 

58 Forming an LLC 

or Corporation 

BY ANN CHILTON 

TECHNOLOGY 

40 What to Expect When It’s Time to Convert to AOT 

BY THE NAPAA TECH GUY 

46 Allstate Agents Have a Choice 

BY BRYAN GERMAN 

DEPARTMENTS 

6 President’s Letter 

Farewell from Outgoing 

NAPAA President 

10 Letters to NAPAA 

37 Membership Application 

A Magazine for Allstate Agency Owners and Allstate 

Personal Financial Representatives 

59 NAPAA Market Place 

62 Advertising Index 

4 — Exclusivefocus Summer 2008

president’s letter 

Farewell Message from 

Outgoing NAPAA President 

BY DALE REVELS, NAPAA PRESIDENT 

It has been 21 years since I sold my first Allstate 

policy. There have been a great many 

changes since then, especially in Florida. 

What I have learned over the years 

is that we, the agents of Allstate, are the 

backbone of the company. We solicit, sell 

and service the products that the company 

offers. It is my firm belief that the company’s 

success is largely due to the efforts 

of agency owners like you and me. Think 

about it, if it weren’t for us, where would 

Allstate be today Still selling auto insurance 

via direct mail as it did in 1931 Certainly 

other departments deserve much of 

the credit too. The claims department, for 

example, has been delivering the promise 

for 77 years. The marketing department 

also played an important role by devel- 

oping campaigns that brought potential 

customers into the Sears stores in droves. 

But in the end, it was agents like you and 

me who closed the sales and provided the 

front line service that Allstate customers 

have come to depend on. 

This being the case, I find it very 

strange that we are being rewarded for 

our contributions with greater expenses 

and, as in the case of life insurance, less 

commissions. Soon, we’ll have to bear the 

costs of agency technology. This seems 

backwards to me. As small business 

owners, most of us bend over backwards 

for our staff. Many agency owners even 

provide expensive benefits. We are grateful 

and appreciative of the work they do. 

Somehow, agency owners don’t feel that 

same sense of gratitude and appreciation 

from our main supplier. This doesn’t just 

apply to agency owners – our EFSs don’t 

feel a lot of love either. 

We held our most recent board of directors 

meeting in Charleston, South 

Carolina. While we were there, we met 

with a group of local agents who aired their 

concerns. Since most of the attendees were 

from Carolina costal areas where the company 

has withdrawn from property markets, 

their most immediate concern was 

the lack of competitive Expanded Markets 

property products. Expanded Markets 

products are written through other carriers 

that Allstate has approved. Compared 

to the competition in the Carolinas, the 

Expanded Markets products are over- 


National Association of 

Professional Allstate Agents, Inc. 

P.O. Box 7666 

Gulfport, MS 39506-7666 

Phone Toll Free (877) 627-2248 

Toll Free Fax (866) 627-2232 

Web Site www.napaausa.org 

Email HQ@napaausa.org 

Jim Fish 

Executive Editor 

P.O. Box 7666 

Gulfport, MS 39506 

Phone (877) 269-3474 • Fax (866) 627-2232 

Exclusivefocus@napaausa.org 

Exclusivefocus and DirectExpress are official 

publications of NAPAA - The National Association 

of Professional Allstate Agents, Inc. No part of this 

publication may be reproduced without prior written 

permission of the publisher. It is the policy of this 

publication to reflect the professional thoughts and attitudes 

of our members and to advance the professionalism 

of the insurance industry to the ultimate benefit 

of the insuring public. 

The views expressed by NAPAA, or any of its 

positions relative to its activities and those of its 

members’ actions on behalf of this organization, are 

expressly those of NAPAA, and do not reflect the views 

or the opinions of Allstate Insurance Company, or any 

of its affiliates. 

Letters to the Editor: All letters must include an 

address and a daytime and evening phone number. We 

reserve the right to edit letters for clarity and space. 

This issue of Exclusivefocus magazine may contain 

articles of interest submitted to NAPAA by outside 

authors. NAPAA is not responsible for the opinions, advice 

or accuracy of any information provided therein. 

NAPAA’s Mission Statement 

NAPAA is dedicated to the success of Allstate 

Exclusive Agency Owners and to advance 

the independence and entrepreneurial spirit of 

our members. 

NAPAA’s Goals 

Our goals are subject to alteration, influenced 

by a constantly changing environment and the 

needs and wishes of our members. 

NAPAA encourages its members to actively 

participate in the process of defining and refining 

our Mission, Goals and Positions. 

Our General Goals: 

• To provide an organization specifically tailored 

to benefit Allstate Exclusive Agents 

• Monitor legislative and legal issues pertinent 

to Agents and their clients 

• Maintain an Action Fund to support issues 

beneficial to agents and clients 

• Provide reliable communications on all issues 

that affect Agents and the ability to call upon 

our members to act 

• Provide Agents with a distinct voice on issues 

that affect them, continually exploring options 

and solutions 

• Make tools and resources available for 

members in an effort to increase agency value 

and success. 

For more informtion, please visit 

www.napaausa.org 


priced and nearly impossible to sell. Consequently, 

customers are defecting to other 

carriers and are taking their auto policies 

with them. This not only hurts the agents, 

it hurts the company too. Another major 

source of irritation is the inordinate number 

of problems they are experiencing with 

the new Flood Service Center. It seems 

that agents and staff spend countless hours 

on the phone getting policies issued and 

resolving mundane service issues. Writing 

and servicing policies should not be such 

a hassle. The Carolinas are a major flood 

market and flood insurance is a profit center 

for the company. It would make a lot of 

sense for the company to step in and remove 

the barriers that are impeding sales. 

Earlier this week, the company sent 

out a short survey to agency owners. It is 

my hope that each of you took the time 

to respond. These are trying times for the 

company and the agency owner. For its 

part, the company is doing all it can to 

satisfy shareholders and grow the brand. 

Some of its decisions have been and will 

continue to be painful for agency owners. 

Many of you have expressed your 

displeasure about the company’s overall 

direction and about new company initiatives 

that can affect your incomes and, 

potentially, your careers. In fairness to 

the company, I don’t think it is possible 

for management to anticipate every negative 

effect that company programs have 

on agency owners. It is difficult for them 

to “walk in our shoes” and understand 

how we think or feel about the ideas they 

implement. The NAB is supposed to be 

their sounding board, but its composition 

consists of hand-picked, highly successful 

agents who don’t necessarily represent 

the rank and file. That is why it is important 

for all of us to respond to company 

surveys – it is the only way the company 

can measure our sentiments. 

Going forward, agency owners will have 

new responsibilities and more expenses. 

After the New Roads to Growth initiative 

has been fully rolled out, agency owners 

will pay virtually all of their own expenses. 

Since the company will no longer have a 

significant “financial stake” in its agencies, 

it needs to realize that agencies will live or 

die on their own. And since agencies will 

be in a “survival of the fittest” mode, there 

really is no need for the company to thin 

the herd. It will happen naturally. In this 

new environment agencies should be given 

every opportunity to succeed. Agents will 

soon realize that the only way to offset 

rising expenses is to cut costs or produce 

more business. Those who can’t or won’t 

take the necessary measures to succeed 

will ultimately fail. There is no need for 

management to intercede as agency owners 

struggle to sort it out. A better tack for 

the company would be to shift its priorities 

to finding more and better ways to grow 

agencies and get serious about competing 

in every market. Agencies would then grow 

and prosper and so would the company. 

By the time you receive this issue of 

Exclusivefocus magazine, I will no longer 

be NAPAA President. I was first elected 

in 2004. Over the past four years I have 

worked hard to keep your association viable 

and responsive to the needs of Allstate 

agency owners. During my four terms we 

have been active legislatively and have 

brought more and better communications 

to you. We have developed new relationships 

with suppliers of goods and services 

to help agencies curb ever-increasing expenses 

and have introduced secondary 

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Summer 2008 Exclusivefocus — 7

usiness opportunities to increase agency 

cash flows. Through our efforts, membership 

is on the rise and our association is 

financially sound. We have transformed 

our National Conference into an event 

any agent would be proud to attend. In 

addition, we have expanded our reach into 

Canada where the company has introduced 

a controversial new business model 

that has angered many agents there. As 

I step down as NAPAA President, I am 

confident that our association is stronger 

and well-positioned for the future. 

It has been my good fortune to have 

been able to serve with such a fine crop of 

officers and directors. For the most part, 

they have been very supportive of my 

goals for our association - it has been both 

a pleasure and a privilege to work with 

them. I am also grateful for the opportunity 

to meet so many agency owners from 

all over the country. As president, it has 

Know Someone 

Buying or Selling a Home 

Members Agent Referral has pre-negotiated a rebate equal to 20% 

of the real estate broker’s commission, when you use their nationwide 

network of full service real estate agents. 

THAT’S RIGHT! 

Customers save 20% of the real estate broker’s commission. 

To learn more about this unique concept, go to www.napaausa.org, 

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It’s simple – and your friends, customers and business 

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been very important for me and the rest 

of the board to meet and listen to the concerns 

of agents wherever we’ve traveled. 

I have enjoyed being your president. I 

would like to give special thanks to John 

Lindsay and Rod Guilmette who were a 

great help to me early on. Their knowledge 

and leadership inspired me to always 

do better. I would also like to thank our 

talented team at NAPAA Headquarters 

for their hard work. Executive Director 

Jim Fish and Association Manager Nancy 

Fish deserve a great deal of credit for our 

success over the last three years. I can’t begin 

to tell you how much they accomplish 

every day – it really is incredible. 

The 2008 National Exclusive Agent 

Conference is just a few days away. This 

will be a very informative conference. In 

addition to a great speaker line-up, we will 

host special sessions for Florida agents 

and for those who are thinking about selling 

their agencies. If you haven’t already 

done so, be sure to book your reservations 

now. All Allstate agency owners, their 

staffs and all EFS are invited. The price is 

right too – the cost is just $99 per person. 

The dates are June 25-27 and the venue is 

the Tuscany All Suites Hotel and Casino 

in Las Vegas. 

I want to thank each and every one of 

you for your support. See you in Las Vegas! 

NAPAA Board of Directors 2007-2008 

ADMINISTRATIVE OFFICES 

Jim Fish, Executive Director 

P. O. Box 7666 


Ph # 877-269-3474 

ExecutiveDirector@napaausa.org 

Nancy Fish, Association Manager 

P.O. Box 7666 


Ph #877-627-2248 

Fax #866-627-2232 

hq@napaausa.org 

Please email HeadQuarters@napaausa. 

org to contact our officers and directors. 

Include the name in the subject line. 

OFFICERS 

Bob Isacsen 

President 

Hoboken, NJ 

Dale Revels 

Immediate Past President 

Kissimmee, FL 

Richard Larkin 

Executive Vice President 

Fernandina Beach, FL 

Debe Campos-Fleenor 

Treasurer 

Tucson, AZ 

George Adams 

Secretary 

Bessemer, AL 

DIRECTORS 

Roslynne Ross, Annapolis, MD 

Johnny Leigh, Amarillo, TX 

Ron Jay, Yukon, OK 

Frank Resta, Wake Forest, NC 


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letters to NAPAA 

I wish to terminate my membership 

effective 5/1/08. After 40 years as 

an Allstate agent, I retired and sold my 

book. Many thanks for being there for 

the agents. It means so very much to 

have someone looking out for the agency 

force. You are doing a great service and I 

wish all of you continued success. 

I’ve been an Allstate Agent for 35 years. 

After reading the superb article [Giver or 

Taker – Which One are You] by Nancy 

Fish, I cannot continue as such without 

finally becoming dues paying member of 

NAPAA and not just a member in spirit 

as I have been for quite some time. 

It’s something I’ve meant to do numerous 

times after reading many previous 

issues of Exclusivefocus, yet I always 

managed to put it off. Well, it’s time. 

Thank you for your continued efforts 

on our behalf. 

 

I used to support NAPAA financially, 

but I have been delinquent in that respect 

for the past few years. After reading 

Nancy Fish’s article in the spring 

2008 edition of Exclusivefocus, I decided 

she is right. Here’s my check for the annual 

dues of $350. Thank you. 

 

 

P.S. This letter appears on a piece of 

company stationary that I now pay for, 

and was typed on a computer that I will 

eventually have to pay for, all brought to 

you by the Allstate Insurance Co. 

First of all, I want you to know that 

you are doing a great job with NAPAA. 

You are making a difference for a lot of 

people. Your publication has excellent 

information and super ideas and the articles 

are well written. 

I’m enclosing a contribution to your 

NAPAA Action Fund. Thank you for your 

efforts and for keeping me informed. 

Florida is treating us quite well and 

we are grateful that we made the move. 

I think Vicki is doing better than I am 

down here!! We are going to the Grand 

Canyon rafting on June 22-24 but will be 

in Vegas on the 25-26. Perhaps we will 

see you there. 

 

Agents in Northern California have 

been given appointments to meet with 

Territorial Managers this month and 

will receive a 90 day compliance letter. If 

they are not on pace by July 2008, their 

business relationship with Allstate could 

be in jeopardy. The problem is that a 

majority of the agents have received this 

notice. An agent’s length of service is not 

taken into consideration by Allstate. 

If the company follows through with 

this threat, it could mean cutting the 

agency force in California by half or 

more. This is a major problem because 

there are few, if any, qualified buyers. 

We were once considered the most 

important part of the company - how 

things have changed for Allstate agents 

under Barge. 

 

 

 

I have sold my agency and effective 

June 1st I will retire from Allstate. 30 

days from today it is a done deal. Therefore, 

I wish to cancel my membership as 

of May 31st. 

Thank you and the rest of the 

NAPAA team for all you have done 

and continue to do on behalf of Allstate 

agents. It’s just too bad this company will 

not get in step with the agents. For the 

most part, the last 22 years have been fun 

and the income was far in excess of what 

I ever thought I would make. However, 

it just isn’t as much fun as it used to be 

and therefore it is time to go. I will do 

some part-time consulting for my buyer, 

Julie Roeder. You may remember her dad 

Jim Younger, who started the first NOA 

in the country and now his daughter will 

own it. That in itself is a pretty cool story. 

Again, many thanks and continued best 

wishes and success to all of you. 

 

Bill Turck 

St. Cloud, MN 

I wanted to send you a link for a video 

on leadership from Tom Wilson, please 

feel free to distribute, etc. 

Just as an FYI for you...this whole 

system is broken. I grew 33% last year 

and my retention was 88.86, one policy 

short of gold. I missed being a 6.0 gold 

agency because I converted 3 policies 

from the old RV and Golf cart policies 

to retain the business. This action helped 

Allstate, but cost me over $4,500 in bonus 

money. It would have been better to 

allow the policies to walk out the door. 

What company would set up such a serious 

disincentive 

This company has taken a seriously 

wrong turn somewhere and there needs 

to be a way to fix this. The latest FVP 

Council meeting just happened here in 

the Midwest Region. They want the 

 



council members to start bringing agents 

to their offices, allowing them to watch 

their procedures, etc. The reasoning behind 

this is because agents don’t listen to 

the region. Wouldn’t you think this would 

send a clear signal to management Instead, 

they want FVP council members 

to spend their time training other agents 

– a job MDLs get paid to do. This is like 

Allstate saying to Geico, “Come in, take 

a look around see how we operate, then 

go ahead and use our processes, compete 

with us in our own backyard and don’t 

worry if it costs us money, it’s OK.” This 

is not about rates; this is about leadership, 

and a thorough lack of understanding 

of agency economics on the part of 

the company. It is further about integrity 

and truthfulness. The video I sent you 

just shows part of the problem. 

We are the best agency force in this 

business; unfortunately our leadership 

doesn’t have a clue. Notice in the video 

that Wilson says the 200 Leaders in our 

company are handpicked and he knows 

them all personally. That makes Tom the 

problem, doesn’t it 

 

Hi Jim, 

I spoke with you once before. I also 

spoke with your wife recently to ask 

her about providers for the technology 

conversion that I am just about to go 

through. She was very helpful. 

I am writing today to ask you about 

some ideas to jump start my business, by 

sharing it with someone else. 

I am a small agent with about 1,800 

items in force about $1.6 in premium. 

I am losing accounts like crazy, and not 

writing anything. My renewal ratio is 

about 90%, but it was better before the 

multiple rate increases! 

I am a good agent and I have the basics 

down pretty well, but I do almost nothing 

to solicit new business. If this trend 

continues, things will look pretty bleak 

in about three years. I am sure Home 

Office won’t be any too happy either. I 

 

 

wrote $23,000 in life with my specialist 

last year, but I don’t think I made enough 

commission to pay for my licenses and 

stuff! I would be surprised if I write more 

than $10,000 this year. 

If I were to give you $25,000 per year 

to work in my office, plus all or some of 

the new business comp, and a percentage, 

say 50%, of the increase in the value 

of my book, plus any bonus over a certain 

amount per year and the right to buy my 

book at an agreed upon value, would you 

or anyone be interested 

Obviously, I am trying to keep some 

income while freeing up myself to work 

on other businesses, mostly because I 

have been doing this for more than 15 

years. I’ve had trouble making myself do 

the things that need to be done to grow. 

This is just a first concept but let me 

know if you think an arrangement like 

this, almost a consultancy, would make 

any sense. 

Editor’s response: I appreciate your offer 

and your plan actually has some merit. 

The base pay that you propose, however, is 

pretty low. It is fine for a staff person, but 

what you are looking for is someone with a 

proven track record. Your gross income is approximately 

$160,000, so I would think you 

could tighten your belt a bit more if you are 

serious. Other major issues are staffing and 

advertising. To grow quickly, you’ll need to 

spend money on increased staffing and advertising. 

To be able to afford your increased 

staffing and marketing needs, it might be 

necessary for you to take out a loan. These 

are just a few my thoughts. I’d be happy to 

talk with you in greater detail. Feel free to 

give me a call. 

Dear Jim, 

I am the spouse of an Allstate agent 

and I work in the office about 25 hours 

per week. 

We aren’t NAPAA members just yet, 

but we are getting close. I read all the stuff 

coming across my desk about Allstate, 

the industry, and NAPAA. It is apparent 

to me that there is a screw-the-agent 

mentality in this company. The mentality 

is not blatant, but it’s there. Why the 

Canadians are so laid back about how 

they are being screwed is beyond me. All 

agents in Canada should be looking for 

work with other companies. 

Our agency is losing business at a 

significant clip. Everyone seems to have 

lower prices than Allstate and the excuse 

by management is that some of the other 

companies don’t have stockholders to 

worry about. They tell us that the agent 

expense is significant. How friggin’ stupid 

do these folks think we are Allstate 

has been propping up its stock for years 

by improving profitability at the agent’s 

expense. The latest scheme is the shifting 

the computer responsibility. Yes, 

there will be a stipend given to agencies 

but just wait and see because that, too, 

will go away. And why is the company 

making this change To rid itself of more 

responsibility. The Florida caper is one 

more case of Allstate’s lack of concern 

for the agent. Allstate could have gone to 

bat for them in Florida, but that might 

cost them a few dollars. Why did Allstate 

fail to submit proper documents 

when requested I could write a book on 

that one. So NAPAA went to bat for the 

agent. Allstate doesn’t care one way or 

the other. You did a nice thing for the 

agents in Florida. Hope it all turns out 

okay for them. 

We just paid our taxes. Fortunately, 

we earned a bonus this year. A bunch of 

it went to pay the IRS. And next year our 

quarterly payments will be substantially 

increased. Yes, the bonus is nice, but is 

it We net out less than 50% of it. We 

actually had a manager suggest that we 

hire another staff person and pay for it 

with the bonus. Why should we Premium 

growth rate simply cannot support 

more staff. Besides, it isn’t their money, 

it’s ours. 

And what about all these “older” 

agents getting letters being fired That’s 

what you get for your 30 years service. 

The new guys aren’t making it. My bro- 



ker friends are laughing behind Allstate 

agents’ backs. It’s embarrassing. When 

will Allstate come to its senses about 

agents Talk about killing the goose laying 

the golden eggs! 

 

 

Editor’s note: A portion of this letter was 

edited out due to political commentary. It is 

our policy to refrain from printing political 

or religious views. 

 

Thanks Nancy. I am so grateful to 

have you and Jim in my life and in my 

world! I’ve lost over $100,000 in premium 

and have a negative 16 growth on my 

CSRP so far this year... not a good way 

to start. I lost 200+ policies last year. 

The way we understand it, the Executive 

Advantage card money replaces ink 

cartridge allowances, paper etc. It will be 

based on RFG performance. Some get zero, 

some thousands, but you can only spend it 

with approved vendors like Sayers or TaG 

and others found on the card Website. It is 

mostly geared toward prospecting. 

Remember when they used to say we 

needed to prospect consistently month 

to month You still can, but the company 

wants to force us to spend more of our 

own money. They want us to stay hungry 

and shoot for impossible RFG goals even 

though we’re in an uncompetitive position. 

I guess the theory is that if we spend 

enough on marketing using the shotgun 

approach, we’ll write our share, but we’ll 

end up poorer for it. The spin is that you’ll 

make up the zero profit from cost of new 

business with RFG money and at renewal. 

Nice idea, but the majority of agents I’ve 

spoken to don’t agree. RFG doesn’t work 

without “balanced” perfect performance. 

The goals are increasingly ridiculous and 

the parameters keep changing due to all 

the other changes and increases. I have 

never seen such blatant heavy-handed 

mismanagement. They need to stop trying 

to manipulate the stock price (it isn’t 

working anymore anyway) and start managing 

and paying the team. $10.7 million 

to our new CEO 

The following letters are responses 

to “Agent’s Letter to Tom Wilson” 

The spring issue of Exclusivefocus was 

great. You folks put some real thought 

behind those articles. The guy who wrote 

the letter to Tom Wilson sure hit the nail 

on the head. Wonder if he’ll be on the 

hit list 

 

I am so tired of this kind of crap that 

I am putting my agency up for sale here 

shortly. I no longer want to work for a 

company that treats its own people like 

this, much less its customers. Frankly, 

their arrogance is frightening! Has anyone 

with any authority actually taken the 

time to get back to this agent I would be 

surprised! By the way, this came from my 

personal e-mail. I am not ready for my 

staff to be aware that I want out! 

 

Let’s call a spade a spade: I started in 

2003 and have watched my income and 

my spirit decline, especially within the 

past 2-3 years. We live in a very small 

community - 1450 residents - and my 

agency is 35 miles away in a group of 

towns with about 12,000 households. I, 

too, thought this was the last business in 

which I would participate. I had dreams 

of working many more years (I’m in my 

late 50s) and then hiring a manager to 

run the business during my frequent absences. 

Now I find myself looking for 

work to finish off a few more years with 

adequate income and without draining 

what we have already. There aren’t a lot 

of jobs for someone in insurance management. 

Our little agency is attractive and we 

 

 

get a lot of complements from clients 

coming by. We built the walls ourselves, 

putting up the sheet rock, the mud and 

the paint. We spent two days with two 

friends putting together the office furniture 

from Staples. The agency “looks 

like us” and it has the feel of being in 

the Lakes Region of New Hampshire. 

The bottom line is, I probably won’t find 

a buyer and I’ll have to sell back to the 

company. I’m betting no replacement 

will go in this location and the book will 

go the way of the EA who retired in Silver 

City. 

I already know my MDL can’t, or 

won’t, let a struggling new EA fail in a 

town about 50 miles away, so I expect 

many of our clients will leapfrog over 

three other EAs and go to her. The company 

could care less if the client is 60 or 

70 miles from their agent. 

We don’t deserve this kind of treatment 

and I’m praying for the day the letter 

comes from the attorney representing 

past and present EAs in a class action 

lawsuit. Those boys in Canada have it 

right. If they can do this with 435 agents, 

what could we do with 13,000 or even a 

third of that number 

Many of my EA friends in NH are 

either waiting for the axe to fall in the 

form of the company letter or the next 

product change and rate increase announcement. 

I’ve refused to attend any 

more state meetings, kick-off meetings 

or town meetings because I’ve realized 

we will only hear more lies and distortions 

of what is really taking place. I’ve 

been insulted enough and I won’t accept 

any more. Frankly, my MDL treads very 

lightly around me. She knows she’ll be 

rid of me soon enough so she doesn’t 

waste any more of her time with me than 

she previously did, which was none. 

I’ll let you know what happens. Being 

a realist, I do not believe anything will 

change voluntarily. This is quite an unbelievable 

situation: watching a company 

kill off the very people who built it. 



 

Well done. I had an agency close 

within the last year in my town and all of 

his accounts were transferred to a different 

city! At least Simon got “something” 

out of it. Good luck to Simon - keep 

your chin up. 

 

I’m not an agent, but a support staff 

for the agent here. I just read the letter 

to Mr. Wilson in Exclusivefocus and 

just wanted to thank you. We also are in 

a small rural town. I see the agent here 

have to deal with a few issues that only a 

small town agent would. Sometimes you 

really just want to scream at the big dogs 

at Allstate to “wake the heck up!" 

Anyway, thanks again for printing 

Mr. Ortiz’s letter… 

 

I expect you’ve received a number of 

emails from EAs around the country. 

I’m also writing to Wilson, but certainly 

don’t hold out any hope for concern or 

consideration. 

 

I just read the letter to Tom Wilson 

and could not agree more. For some reason 

Allstate does not seem to understand that 

the agents are the heart of the company. 

My wife and I are in a similar situation. 

The only other agent in our small town is 

being forced to sell for lack of production 

after 20 plus years of service. As yet, he 

has no takers and I anticipate what happened 

to Simon will happen to us too. 

 

I am looking at that very thing happening 

to me. I live in a small community 

that doesn’t have a lot of growth. 

There is one other Allstate agent in town 

 

 

 

 

 

and an independent. The Allstate agent 

has 700+ accounts and is trying to retire. 

I also have been told I cannot buy his 

book but will get to service them until 

the company decides what to do. The 

agent is hoping for a buyer, but so far 

that hasn’t happened and he has not met 

his financial goals for 2 years in a row. He 

just wants to retire now. We’ll see how 

this plays out, but I have no doubt that 

I will be servicing his accounts without 

pay for at least a period of time then 

only get partial commissions. I appreciated 

you publishing the letter. I have felt 

like I’ve been butting heads with Allstate 

on so many other issues and see this as 

another exhausting time-consuming energy 

drainer. 

 

For a moment I thought someone 

was writing an article about MY agency. 

My circumstances are almost identical. 

I think the letter struck a nerve among 

many agency owners. I should write a 

letter too, but I would not be so eloquent 

or diplomatic. Thank you for sticking up 

for what’s right, and for Allstate customers, 

who usually bear the brunt of Allstate’s 

decisions. 

 

I have to say I am pleasantly relieved 

to see an agent say something about the 

way Allstate treats agents compared to 

the expectations required. I also am an 

exclusive agent trying to survive in a 

small town. I will have been with Allstate 

four years this summer and my attitude 

and feeling for this company has turned 

a complete 360. First let me say I am a 

very personable and positive person. I 

have talked to four others agents who 

have over million dollar books and they 

are worried, angry and very discouraged 

with Allstate, its direction and its level 

of non-concern for us. This uncertainty 

among the veteran agents of this company 

is worrisome and does not give me 

 

 

a lot to look forward to. We have voiced 

our complaints and concerns to our Territory 

Managers but it is like talking to a 

concrete block. State Farm, Nationwide 

and Farm Bureau are absolutely kicking 

our butts. It is a mess here and I know 

that other agents have made their concerns 

known but it just falls on deaf ears. 

It was refreshing to read Simon’s letter 

- I am glad to see someone else stand up 

and say what’s on their mind. 

 

I just finished reading the letter to 

Wilson in the Exclusivefocus magazine. 

I want to say HOOORAH! I’m not the 

only person that thinks the emperor is 

not wearing any clothes. As an agent of a 

hard 2 years, I have to say that I thought I 

was making my last career move as well. 

The reduction of the already low financial 

services commissions was the 

straw that broke the proverbial camel’s 

back. Hopefully, I won’t find myself in a 

predicament where I have to sell. At this 

point I simply am abandoning ship, and 

am hoping to cut my losses. From my 

vantage point, I am frustrated that I can’t 

grow by purchasing other books of business 

and by the fact that it’s difficult to sell 

because the best prospective buyers (other 

Allstate Agents) can’t buy my book. 

Call me crazy, call me conspiratorial, 

but I think some actuary at Allstate 

realized it was more profitable and advantageous 

to acquire agency clients by 

pushing agents out of the business than 

acquiring clients the hard way through 

marketing and sales. Management is in 

it for one reason. Money, money, money! 

Earnings baby! A free market for agencies 

would reduce the number of agencies 

surrendered for TPP. 

 



 

I appreciate you printing the Letter to 

Tom Wilson. I too find myself in a similar 

situation. An agent left the company late 

last year and his policies were placed in my 

office and his calls were forwarded to me. I 

was asked if I would like the have the policies 

here and I accepted given the fact that 

we would end up servicing them anyway. 

My staff has high integrity and underwrites 

and conducts business in the proper 

manner. Since receiving these accounts, we 

have spent a great deal of time answering 

customer questions about why they weren’t 

told their agents was leaving, why he left, 

etc., etc., etc. Many have left for that reason. 

We continue to service them, but we’re 

not allowed to solicit them as customers to 

our agency – only if they ask can we have 

them call and request us as their servicing 

agent. We are unable to capture. 

We have had additional stress and 

service problems with this book of business. 

We found out that many of the 

processes that were done by the previous 

agent were unethical. Fake prior insurance 

policy numbers and discounts the 

customer was not eligible for. We don’t 

go looking for these problems, but they 

arise when angry customers call. We 

research the policy and find these situations. 

When policies like these were 

written the customer benefited by getting 

a discount and the agent got the 

commission, but the company lost out. 

Now we have to tell customers they no 

longer qualify, which makes them angry. 

But my office is the biggest loser in all of 

this. My staff spends countless hours servicing 

this angry mob and has no chance 

to capture this business. It upsets me that 

we have to spend so much time and effort 

straightening out the messes created 

by the former agent – especially when I 

am trying so desperately to grow my own 

book. Now the old agent is soliciting his 

customers and they call in to cancel their 

Allstate policies. We are doing our best 

to retain them and we have built a good 

 

rapport with some of them. I was told 

that these policies would be assigned to 

new agents as they were hired and that I 

could not retain any. They will be jerked 

away from me and seeded to a new, inexperienced 

agent. 

I think Allstate’s policies and procedures 

in this area are not at all customer 

friendly or agent friendly. How can the 

company expect agents to do all this 

work and get nothing in return Other 

agents in my market are contacting these 

customers and replacing their old homeowner 

policies with new ones. They’re 

getting credit too because they change 

the insured’s name. Very unethical! We 

will never do that in my agency. 

Had I known then what I know now, 

I would have never agreed to have these 

policies assigned to my agency. There 

are too many headaches and no rewards. 

I would like to warn other agents who 

could be asked to do this to refuse the 

offer. It’s not all it’s cracked up to be. I 

would tell them to let Allstate figure it 

out and take care of them. 

Thank you again for publishing the 

letter and for letting me let off some 

steam, even though I don’t expect anything 

to change. 

O CANADA 

The following letters are from 

or about Canada. 

 

I am one of the agents who left Allstate 

through retirement and am now set 

up as broker with another Allstate agent. 

As we all know, up until last year this was 

a great company to work for. However, 

knowing what I know now, I probably 

should have made this move years ago. I 

really feel for the agency force that is left 

behind and I feel your concerns for the 

agency force in the U.S. Good luck and 

keep us informed with your news letter. 

 

Just an update...when they rolled out 

the new program in Canada senior management 

were asked by the U.S. how 

many agents would they lose. Their reply 

was ‘just the 2 that left in July.’ As of May 

the 1st there will be 50 agents. Recently, 

on the 11th of April, four senior managers 

and their staff left Allstate for the 

broker field. This made the folks at head 

office crazy. President Mike Donoghue, 

from what we hear, is going nuts…they 

were not expecting this reaction. So, I 

think your people in the U.S. will be safe 

from the Canadian program. 

 

April 4, 2008 

We, at CASFAA Inc. are very interested 

in the eventual outcome of former 

agent Rod Larocque’s dispute with Allstate 

Insurance Company of Canada and 

believe it will greatly impact all intermediaries 

regardless of insurer affiliation. 

The wider implications of this suit also 

serve, once again, to focus attention on the 

need for legislation in the Provinces to protect 

all intermediaries in our industry from 

the threat or action of contract termination 

without “just cause”. All too often, the very 

threat of contract termination has been used 

as a means of maintaining the master/servant 

relationship that often exists between 

insurers and their representatives to control 

 

 

 



the Independent Contractor and not always 

to the benefit of the insuring public. 

Despite a number of attempts to motivate 

governments to act on this issue, CASFAA 

Inc. and others have been unsuccessful so 

we are hopeful that this issue will act as the 

catalyst for government action. 

CASFAA Inc. continues to work 

through government officials in Ontario 

to bring about the much needed “just 

cause” legislation as well as a better form 

of whistleblower protection than is currently 

being considered as we feel that 

only truly independent advisors can represent 

their customers properly. 

Richard Gibbons 

Past President and Legislative Liason 

– CASFAA Inc. 

Editors note: CASFAA is the Canadian 

State Farm Agents Association. 

 

Here’s an interesting story. It’s about 

the Barber brothers. 

Former Allstate Canada agents, Bryan 

and Neil Barber wanted to purchase 

a building for their Allstate NOA. Last 

spring they approached Allstate for approval, 

which they granted the first week 

of June, just seven weeks prior to the July 

24 announcement. 

Shortly after the meeting, the Barber 

brothers contacted Allstate and inquired 

what management planned on doing to 

compensate them for their potential loss. 

Allstate’s response apparently was, “We 

are not responsible for your personal investment 

decisions.” 

Bryan and Neil Barber tendered their 

notice in April and have opened up an 

All-Risk brokerage in their old NOA location 

in Toronto. 

Here’s another one: 

An agent in the Burlington/Oakville 

area had planned a vacation a couple of 

months in advance. Like most of the 

AIAs [Allstate Insurance Agencies], his 

opening was moved up by 3 weeks, with 

 

little notice. His DBD, Rose Cisterna, 

told him that because of the early opening, 

he had to cancel his vacation. The 

agent’s response was that he was stressed 

and in need of a vacation and that his 

family was looking forward to going away. 

He went on vacation and Rose Cisterna 

fired him (while on working notice) for 

insubordination. This agent majored (or 

minored) in HR in university and stated 

that apparently you can’t fire anyone for 

insubordination in Ontario. We’ll see 

what happens now. 

 

I was speaking with one of our local 

agents last evening and asked him 

how things were going in the new AIA. 

He told me that he feels as though he is 

working in a modern-day ‘sweat shop’. 

He logs in the morning, signs in on his 

phone, turns on his computer and finds 

a list of prospects to contact in CRMS. 

After everyone is contacted, he has to add 

notes to the electronic file and save them, 

so that head office can track his activity. 

When he left the office the other day 

to meet his former business partner for a 

coffee, he noticed that his Agency Manager, 

a former colleague, had followed 

him to see where he was going. He’s also 

been told that he can no longer have his 

cell phone on while in the office. (Are we 

in grade school now I wonder if he can 

still chew gum). This is advancement 

Dreamers... these are the stories that 

we need to get to the press. 

 

I guess Allstate is trying to make my 

life miserable by doing the following: 

 

 

1- They’ve directed all my personal 

mail to their new office and are refusing to 

contact the post office to redirect my mail. 

2- For over a month I have no idea 

where my mail is. In fact, I have bills that 

have not been paid to suppliers and utility 

companies. 

3- Allstate left damages to office walls 

leased by me and never cared about offering 

to repair the damages of over $1000. 

4- I received a call from Allstate Human 

Resources telling me that I should 

advise my former office partner that 

he should not communicate to me any 

confidential information or customer information 

from the Allstate office, or he 

will be subject to disciplinary action and 

possible loss of his job. 

5- When customers call my former 

Allstate office looking for me, they receive 

different answer every time; I am 

either on vacation, or out of the office, 

or not in the office at the moment, when 

they all know that I resigned. 

6- The company sent a letter to all its 

customers with my electronic signature 

advising them that I would be moving to 

the new Allstate office after they knew 

that I had no intention of moving there. 

In fact, I was the only agent that was not 

invited to a full day training session while 

still employed because of this. 

7- I was followed on occasions by the 

new Agency Manager. He is trying to 

prove to Allstate that my former partner 

and I have been communicating Allstate 

information. 

 

Thanks for keeping us informed of 

the developments here in Canada. This 

seems to be the only way that we are kept 

in the loop because the company is not 

forthcoming. In addition, articles that 

have been printed in Exclusivefocus are 

most informative and much appreciated. 

I am another agent very disillusioned 

with the events over past 10 months. I 

will be leaving the company at the first 

opportunity, like so many others. 

 



feature 

How Safe is Your Identity 

BY STACY NUTTER 

It wasn’t until 1997 that credit cards 

could be “securely” used online. Ten years 

later, data breaches and identity thefts 

are exploding in volume. How important 

is control of data Pretty important. Data 

leads to information, information leads 

to knowledge and knowledge is power. 

Power leads to cash and cash is king! You 

would have thought, given its importance, 

more attention would have been 

paid to preserving this asset over the 

past 10 years. Apparently, that’s not the 

case and identity theft is now the fastest 

growing crime in America. 

Probably the most common form of 

identity theft is financial. Someone uses 

your name and social security number 

to obtain new credit to purchase cell 

phones, rent apartments, set up corporations 

and/or open new credit cards in 

your name – any one of which can destroy 

a good credit rating in an instant. 

Everything you have worked your entire 

life to build is suddenly gone. You find 

yourself paralyzed by the daunting task 

in front of you – closing accounts you 

didn’t open, repairing your credit report 

and reclaiming your identity. 

Consider these facts. 

• Identity theft takes place every 3.1 

seconds in the U.S. That’s 20 victims every 

minute. Last year alone there were 10 million 

victims of Identity Theft. In the first 

quarter of 2008, there were more than 8.3 

million identity breaches. People are annoyed 

and understandably anxious over the 

loss or theft of their personal information 

and feel that they have no control over it. 

• It can take approximately 300 

hours and $1500-$8000 to clean up the 

mess that identity theft leaves behind. 

• A good identity thief will get your 

information and hold it for at least a year 

before using or selling it. 

• Employers are responsible for the 

security of their employees’ and their customers’ 

personal information. If there is a 

breach of any kind, employers are required 

to report it to the Federal Trade Commission 

(FTC) and send out letters to everyone 

affected. If an employee’s identity is 

stolen as a result of the breach, they can 

use company time (avg. 300 hours) to remediate 

their credit and cure the breach. 

This process cuts down on productivity 

and employees lose confidence in their 

employer’s ability to maintain secure files. 

• Statistics show that once a company 

has had a breach that could result in 

identity theft, nearly 1/3 of consumers or 

employees will terminate their relationship 

with the company. 

• Children are vulnerable because 

they do not use their social security 

numbers to obtain credit until they are 

18 years of age. By this time, an identity 

thief could have been utilizing their 

identity for years. 

• Identity theft costs everyone money. 

Last year TJMaxx paid out over $60 

million to VISA and MasterCard for a 

breach in the security of their customers. 

• The IRS now has problems securing 

the information on your filed return. 

The Treasury Inspector General for Tax 

Administration stated that “a hacker 

could gain full control because of inadequate 

security controls” according to a 

recent report. “A disgruntled employee, 

contractor or hacker could reconfigure 

routers and switches to disrupt computer 

operations and steal taxpayer information 

in a number of ways, including diverting 

the information to unauthorized 

systems” the report says. This report was 

printed in the first quarter of 2008! 

• Some retailers have decided that 

it is cheaper to pay the penalties rather 

than update the security of their credit 

card transaction systems. Unfortunately, 

that isn’t true. Remember the TJ Maxx 

incident This lax attitude should scare 

each and every one of us! 

• Identity thieves can access and use 

your medical benefits and you may not 

know it for years. This is particularly dangerous 

because the “health information” of 


the thief becomes your health information, 

another scary thought. Also, they can use 

up your benefits and since the bill is being 

sent to another address, you won’t know it 

until you try to use them yourself. 

• Identity thieves are setting up businesses 

with your social security number. 

They open credit in the name of a business, 

purchase inventory, bleed it dry and 

then leave the bills unpaid – you’ll never 

know about it until they close it down. 

Sometimes they take applications from 

unsuspecting job seekers and then steal 

their identities – a seemingly perfect scam. 

Keep in mind that this crime and probably 

others like it are being committed in your 

name with your social security number. 

• Identity thieves are working in other 

states under your SSN. This is called “synthetic 

identity theft.” Illegal aliens come 

in the United States and pick a social security 

number out of thin air. Someone, 

somewhere could have your SSN and be 

working under your name. If they don’t 

pay income taxes, eventually the IRS will 

track you down. 

Imagine you are sitting at home one day 

and a very courteous IRS agent knocks on 

your door claiming you owe income taxes 

that have not been paid for the past two 

years for a factory job you had in southern 

California. The only problem is, you have 

never lived or worked in any other state. It 

is only then that you learn someone had 

been using your social security number 

to obtain employment. After that, it was 

easy for them to open new credit accounts 

in your name, but now it is up to you to 

prove it wasn’t you. 

Now that you know how breaches 

can happen, how exactly can your identity 

be stolen 

1. Has your credit card ever left your 

sight in a restaurant It is very easy for a 

server to swipe your card twice, once for 

the meal and once for the purpose of extracting 

all of your personal information 

from the magnetic strip on the back of the 

card. Once you sign the transaction form, 

the perpetrator also has your signature – 

everything needed to steal your identity. 

2. Have you ever actually lost a credit 

card While you may have called the credit 

card company to cancel the card as instructed, 

if the card falls into the hands of an identity 

thief, he isn’t dumb enough to use the 

card, but he’s smart enough to extract the 

information from the card, allowing him to 

open new accounts in your name. 

3. Are you sure your computer is secured 

Especially those that do online 

banking 

4. Have you ever accessed the Internet 

at a hotel business center These are 

easiest places to steal your personal information. 

5. Do you shred all pre-printed offers 

of credit and checks that come in with 

your credit cards 

6. How secure is your mailbox Can 

someone steal your outgoing or incoming 

mail 

7. Do you have your social security card 

or your voter’s registration card in your wallet 

Bad idea. Some of these documents can 

contain your name, social security number, 

date of birth, address and signature. 

8. Do you take precautions whenever 

using an ATM machine Are you aware 

of any protruding card readers and do you 

always cover the PIN pad with your hand 

while putting in your PIN number 

9. Do you secure all of your personal 

information in a locked filing cabinet Is 

it fire proof Is it easy to break into 

10. If you take applications for employment 

or business, do you lock those 

up or are they out for anyone to see Or, 

if you’ve applied for a job recently, do 

you know for sure how they handled 

your application 

11. Do you know whether or not the 

companies you transact business with keep 

their information secure Do they ever allow 

anyone to take home a laptop or access your 

information from an unsecured location 

You may have always done everything 

right to protect your identity. You shred 

documents that have any information that 

could be stolen and you don’t carry your 

social security card or voter registration 

card with you. You never answer personal 

questions over the phone. You consistently 

check your bank accounts and credit 

accounts for fraudulent activity. Yet, even 

with all these precautions, you could still 

become a victim. Maybe the company you 

work for has not secured their wireless 

network. Maybe the university you attended 

sold their old computers at an auction 

and forgot to clean off the personal 

information contained on the hard drives. 

Maybe the department store where you 

shop at had a back up tape compromised 

Sometimes you just don’t know how, but 

you end up becoming a victim. 

In 2003 a law was passed requiring 

that companies that experience a breach 

of personal information, involving its 

employees or it customers, must report 

it to the FTC. Unfortunately, while 

companies are required to report such 

breaches, many don’t because the publicity 

could damage both their employee 

pool and their customer base. 

So how can you and those you care 

about protect your identities Perhaps 

it’s time to enlist the services of a qualified 

identity theft protection company to 

protect you, your family members and 

your business associates. 

Recently NAPAA has chosen NAME- 

SAFE as its trusted source for identity 

theft protection services. Unlike insurance 

policies that only pay after a theft has been 

discovered, NAMESAFE takes specific 

steps to protect you before you become a 

victim of identity theft. For more information, 

please visit www.Namesafe.com 

or call 1-866-NAMESAFE. 

Stacy Nutter is Executive Vice President of 

NAMESAFE, a national company specializing 

in identity theft prevention, protection 

and prosecution of would-be thieves. 

The price of enrollment includes all legal 

support and a $1,000,000 service guarantee. 

The company’s founder, David Ridings 

is an attorney and former police officer. 


Identity Theft 

Is On The Rise 

Protect Your Identity with NAMESAFE! 

$9.95 /month 

or 

$99.00 /year 

Protect your identity 

in just a few minutes. 

NAPAA members get additional discount at www.NAPAAUSA.org 

All Allstate Agents receive 10% off by using the promo code Allstate10 

• We protect your private 

phone numbers 

• You get a call prior to 

someone establishing 

credit in your name to 

confirm it’s you! 

• Backed by a $1 million 

service guarantee 

• Legal support free for clients 

• Prosecution team to assist 

you in any state (We 

will even pay your travel 

expenses to give testimony 

against a would-be thief) 

• Complete credit 

remediation for clients 

• We handle dealing with 

all creditors and the credit 

bureaus to remove the 

fraudulent accounts 

• Founded by former police 

officer and current attorney 

• CorpSafe TM services to 

meet FTC compliance 

available at no additional 

cost to your company 

Is Yours 

Toll Free: 1-866-NAMESAFE 

www.NAMESAFE.com

agent issues 

The Kafka Interview 

INTERVIEW CONDUCTED BY JIM FISH FOR EXCLUSIVEFOCUS 

Background Information 

May 20 marked the end of a monthslong 

journey for Esther Kafka. It was 

then that the world found out that she, 

along with two other plaintiffs, had filed 

a $60 million class action suit against 

Allstate Insurance Company of Canada 

and the Allstate Corporation, claiming 

damages for breach of contract and for 

breach of the Employment Standards 

Act, S.O. 2000, c.41. 

Like Kafka, the other two plaintiffs, 

Mark Cassells and Ketal (Ken) Patel 

were employee agents when the company 

announced its plans to close more than 

250 agent locations in Canada, a strategy 

that has sparked burgeoning agent unrest 

there. Many Canadian agents find the 

company’s new business model demeaning. 

These once-proud professionals, 

who have been accustomed to managing 

their NOA offices, are being uprooted 

and moved to new Allstate Insurance 

Agency call centers where they are being 

demoted to less prestigious positions. 

Had the company stopped there, it is 

quite possible that the agents would have 

reluctantly bought into the new program. 

But, instead of rolling out its plan in stages, 

the company decided to go for broke and 

announced that it would be also be eliminating 

the agents’ renewal compensation. 

At first agents could not believe what they 

were hearing. Many of them walked out 

of the July 24 meeting too stunned to fully 

comprehend the consequences of such a 

momentous change. In the weeks and 

months that followed, the agents came to 

realize that the company wasn’t kidding 

around and their anger grew. To them, the 

company was about to steal 50% or more 

of their incomes. 

Still in a state of disbelief, some proactive 

agents appealed to Allstate Canada 

CEO Mike Donoghue and others in 

senior management, begging them to re- 

consider. Their concerns, however, fell on 

deaf ears. There would be no exceptions 

or concessions. Many of the agents leading 

these efforts were successful, awardwinning 

agents such as Rod LaRocque, 

who we featured in the winter issue of 

Exclusivefocus magazine. 

Now that the stage has been set, 

we’ll proceed with my interview of Esther 

Kafka who I’ll describe as a smart, 

methodical and profoundly dedicated 

individual. Like other former Canadian 

agents we have featured in Exclusivefocus 

magazine, she was a successful, 

award-winning Allstate agent. The four 

individuals named in this story average 

18 years of Allstate service each. Collectively 

they have earned Honor Ring 

(Honour Ring in Canada) a total of 42 

times. So, if anyone, including those in 

management should question or disparage 

the achievements of these individuals, 

our readers will know the truth. 

The Interview 

EF: How many years were you an Allstate 

agent 

Kafka: Fourteen years. 

EF: How big was your book of business 

Kafka: 1.7 million 

EF: What awards did you earn at Allstate 

Kafka: I earned Honour Ring eight 

times, National Champion seven times, 

and the Agency Profitability award at 

least six times. I also earned the Distinguished 

Life Partnership award, the Take 

Two Top Agent award and the Forecaster 

award. I served a two year term on the 

President’s Agent Advisory Council and, 

several years ago served on the Committee 

to Redefine the Role of the Agent 

which, by the way, had nothing to do with 

the company’s current strategy. 

EF: Were you on good terms with management 

before the company’s announcement 

last July 

Kafka: I would say I was on excellent 

terms with management. As an example, 

I received a note in 2004 from Allstate 

Canada CEO Mike Donoghue that said 

“Thanks for being as good as you are.” 

In another note Jerry Souilliere, a senior 

claims manager, wrote “Thank you 

for doing the right thing every time.” I 

would doubt that too many agents received 

these kinds of accolades from senior 

management. 

EF: So would it be fair to say that you 

“bled Allstate blue” before the announcement 

last July 

Kafka: Absolutely. I also believe that 

this sentiment was widespread among 

the agency force. Prior to the announcement, 

the company was having a record 

year - agents were happy and content, not 

disgruntled at all. Agents were making a 

good living, but in retrospect, I believe 

the company thought we were making 

too much money and decided to do 

something about it. Since most of them 

have never walked in our shoes, they don’t 

understand the hard work it takes to build 

a book of business. They forget about the 

60 to 70 hours a week agents work to 

grow their books in the beginning. They 

forget about the calls agents receive at 

their homes. They forget about the extra 

effort that agents give their customers to 

earn their trust. The new model doesn’t 

address any of this. It is new sales driven 

– sort of a “wham, bam thank you ma’m” 

approach. Under the new model, there is 

little incentive for agents to create longterm 

relationships anymore. 

EF: What prompted you to leave Allstate 

Kafka: Well, first and foremost was the 

prospect of losing 60% or more of my 


income. I was also incensed that the 

meeting that I drove two hours and fifteen 

minutes one-way to attend lasted a 

total of 15 minutes! There was no Q&A. 

I would have expected much more from 

a meeting of this magnitude. In the end, 

15 minutes was all our careers were worth 

to Allstate. This deeply disturbed me. 

After the meeting, I stopped in the ladies 

room where I ran into a newer agent 

who asked “What did you think of that” 

I replied by saying “I can tell you right 

now there will be a class action lawsuit.” 

Little did I know that I would be the one 

spearheading it. 

I remember the long drive home that 

day – I was in a state of shock and disbelief. 

When the company announced that it 

was having the meeting, I assumed that it 

would be to convert us to the EA contract. 

EF: Were there other reasons 

Kafka: Yes. There were a number of 

confidential side deals being worked out. 

Certain agents were given ‘Top-up bonuses’ 

for which they had to sign confidentiality 

agreements. These agreements 

were for Agency Manager positions and 

Business Development Agents. I was 

stunned that I wasn’t offered one. Adding 

insult to injury, I found out that a 

one-time National Champion awardwinner 

was offered such a deal. I could 

see that it was all about favoritism and 

discrimination, not qualifications. I felt 

as if I was being demoted from an entrepreneur 

to an order processor and then 

forced to report to one of my former colleagues 

– this loss of prestige weighed 

heavily on my decision to leave. 

EF: How were you treated in the months 

leading up to your departure 

Kafka: At first management shunned 

me because I wasn’t embracing the new 

model and because I became vocal. Then 

it seemed that they were pushing me out 

the door. 

EF: How would you describe the mood of 

agents in Canada today 

Kafka: Solemn is how I would describe 

it. Many of them [the agents] still don’t 

get it. They don’t realize that after the 

24 months working notice, which will 

end 8/31/2009, Allstate won’t owe them 

NEWS 

May 21, 2008 (Hamilton, Ontario) 

Hamilton, Ontario 

RELEASE 

Class Action Lawsuit Commenced against Allstate 

with respect to Constructive Dismissal of All 

Agents Across Canada 

A Statement of Claim was issued in the Ontario Superior Court of Justice in 

Toronto on May 20, 2008 claiming damages for breach of contract and breach of 

the Employment Standards Act, S.O. 2000, c.41 on behalf of all individuals in 

Canada who were employed by Allstate as agents as of July 24, 2007. 

The Statement of Claim seeks damages of more than $60,000,000.00. 

The plaintiffs, Esther Kafka, Ketal (Ken) Patel and Mark Cassells, have brought 

the action under the Class Proceedings Act, 1992. 

The Statement of Claim alleges that on July 24, 2007, Allstate unilaterally announced 

substantive material changes to the employment contract terms with all 

of its sales agents, numbering approximately 450, across Canada. 

The Statement of Claim alleges that all agents were employed under the same 

or substantially the same terms and conditions and that the changes unilaterally 

announced were to be implemented September 1, 2007. 

The Statement of Claim furthermore alleges that the changes introduced by 

Allstate strip agents of their renewal books of business and closes 256 agent locations 

throughout Canada consolidating those locations. 

The Statement of Claim furthermore alleges that the compensation system for 

Allstate agents changed effective September 1, 2007. 

The claim is being pursued by Scarfone Hawkins LLP of Hamilton, a law firm 

with significant experience in handling class action claims on behalf of plaintiffs. 

The Statement of Claim contains allegations which have yet to be proven in Court. 

Counsel for the plaintiffs, David Thompson and Matthew Moloci say that the 

proposed class proceeding represents not only the preferable procedure for dealing 

with this dispute, but the only available procedure presenting an opportunity 

for redress for class members. 

For more information contact David Thompson at Scarfone Hawkins LLP, 905- 

523-1333 or thompson@shlaw.ca. 


[ 

“I think that 

Canada is the 

testing ground for the U.S. 

The Canadian market only 

represents a small slice of 

Allstate, maybe 1 percent or 

] 

less, and our cultures are 

similar. What better place 

for the company to 

test market its new 

business models.” 

anything. All the working notice does 

is provide a job through the company’s 

transition to its new model. What do 

they have to look forward to Well, 

the quota is $45,000 per month in new 

business premium, so it will be life on a 

treadmill. A local manager at one of the 

new AIA [Allstate Insurance Agency] 

locations informed one of his agents 

that, once the 24 month working notice 

is over, if he doesn’t make his monthly 

quota, he would receive a warning. If he 

misses it again, he would be put on a corrective 

action. If he misses it for a third 

month, he would be terminated. 

EF: What about the newer agents who have 

less to lose 

Kafka: The new agents have never experienced 

the taste of renewal business, 

so they don’t know what they’re missing. 

I don’t think it will take long before 

they find out that they’re getting shortchanged. 

Under the new model they’re 

still only earning 15% on new business 

and nothing for renewals. It just isn’t a 

good deal, in my opinion. 

EF: Allstate seems to like the concept of 

“mega” agencies. Do you see anything wrong 

with that picture 

Kafka: Yes I do. Agency customers 

want to feel important and some want 

to be pampered. The way the AIAs are 

set up, customers are assigned to the 

agency, not to an agent. In my mind, 

this makes them nothing more than a 

number, which is how I fear they’ll be 

treated. With the personal touch gone, 

why should they stay 

There are some customers who want 

to deal over the Internet, some who want 

to deal with call centres and then there 

are those who want to deal face-to-face 

– that’s the program I signed up for and 

what I plan to continue to do. 

EF: Will the Canadian model work 

Kafka: I don’t see how it can. The 

agents aren’t motivated and hostility 

continues to grow. I see the AIA experience 

as a good training ground for newer 

agents, but it’s not a real future. The level 

of production is unsustainable over the 

long term. 

EF: Was “losing” its most successful and experienced 

agents part of the company’s master 

plan, or was it simply a fluke 

Kafka: I think the consensus is that the 

company was oblivious to how we perceived 

the changes. Management doesn’t 

understand the driving force behind the 

successful agent. 

EF: You are a named plaintiff in the class 

action lawsuit that was brought against 

Allstate earlier this week. Obviously, you 

must have strong feelings about what has 

happened over the past ten months. Can you 

elaborate 

Kafka: In late November 2007, when I 

realized our concerns had fallen on deaf 

ears, I contacted the law firm of Scarfone 

Hawkins LLP. In January I received an 

email that they wanted to meet with me. 

Then on February 5, I made the three 

hour drive to Hamilton, Ontario to meet 

with David Thompson, a partner in the 

firm, and another of the firm’s attorneys, 

Michael Stanton. 

During the drive I couldn’t help but 

think of the enormous task that lay before 

me. I had prepared three identical 

file folders, one for me and one for 

each of the attorneys. Everything was in 

chronological order. These files represented 

many days of research and photocopying. 

I never let them out of my sight 

- they were, at least in my estimation, far 

too important. 

When I sat down with the attorneys, 

I learned that Scarfone Hawkins only accepts 

one in a hundred of the class action 

cases presented to them. But this fact did 

not deter me. It became apparent to me 

that I had found the right firm – these guys 

knew what they were doing. I resolved that 

our case would make the 1% cut. Prior to 

our meeting adjourning, I turned to David 

and said “The lives of 436 agents have been 

destroyed by the July 24th announcement. 

I came here today to seek justice on their 

behalf.” This class action suit represents a 

six-month labour of love for me. 

EF: How does an agent join the class action 

lawsuit 

Kafka: To learn more about the lawsuit 

Canadian agents are invited to visit the 

Website www.classactionlaw.ca. They 

should then click on ‘active claims’ and 

then again on ‘Allstate’ 

As far as joining the lawsuit, anyone 

who was an active Allstate employee 

agent in Canada on July 24, 2007 is 

automatically a member of the class. 

Agents should refer to the Statement of 

Claim to determine if they are members 

of the ‘retention class’ or the ‘departure 

class.’ Also, anyone who does not want to 

participate in the lawsuit can opt out by 

sending an email. 

EF: Have Allstate’s actions over the past ten 

months caused you any stress or anxiety 

Kafka: Allstate’s actions have caused me 

great stress and many sleepless nights. I 


feel as though I’ve aged by a decade since 

the July 24th announcement. 

EF: Has there been any talk about unionizing 

among agents planning to stay 

Kafka: Let me start out by saying that I 

was never a big fan of unions. However, 

if I was planning to stay, there would 

definitely be a union in place given what 

we’ve experienced over the past ten 

months. We were exploited, which is 

reason enough to fight for a union. But, 

to answer your question, I am not aware 

of any serious talk about unionizing. 

EF: Do you have an opinion whether the 

Canadian model will have any effect on US 

agencies 

Kafka: I think that Canada is the testing 

ground for the U.S. The Canadian 

market only represents a small slice of 

Allstate, maybe 1% or less, and our cultures 

are similar. What better place for 

the company to test market its new business 

models 

EF: A number of agents have already 

left the company. Do you foresee more 

agents leaving 

Kafka: My prediction would be at least 

50%, maybe more. 

EF: What is your reaction to Allstate CEO 

Mike Donoghue’s letter of May 22nd in response 

to the class action lawsuit 

Kafka: Mike Donoghue’s message has 

been consistent since the announcement. 

EF: Is there anything else you would like 

to share 

Kafka: Most people today understand 

why companies implement cost-cutting 

measures, but Allstate’s announcement 

last July came on the heels of sixteen 

quarters of mostly record profits. That’s a 

hard pill for agents to swallow. Four years 

of solid profits and the agency force is rewarded 

with a brutal financial beating. I 

did not want to leave and neither did the 

others – but Allstate gave us no choice. 

EF: Esther, I want to thank you for sharing. 

Good luck to you. 

Kafka: You’re welcome and thank you 

for supporting Allstate agents wherever 

they are. 

Following is the text of Allstate Canada CEO Michael 

Donoghue’s letter of response to the $60 million lawsuit 

filed on May 20, 2008. 

Allstate's response 

to the statement of claim 

May 22, 2008 

Yesterday, a statement of claim was filed against Allstate Insurance Company 

of Canada and Allstate Corporation under class action legislation by 

two former Agents and one current Agent. It is not yet certified as a class 

action law suit, a process which is quite lengthy and can take a great deal of 

time. The statement of claim is seeking $60 million in damages. 

Allstate is currently reviewing the statement and will not be making any 

public comments on the specifics or contents of the claim. Rest assured that 

Allstate will take the necessary steps to vigorously defend against the allegations 

contained in the statement of claim in the proper quarters, but we will 

not do so publicly or in the media no matter how fervently others attempt 

to put the debate there. 

Allstate stands firmly behind its business decision to introduce the Allstate 

Insurance Agency and we are moving ahead. Since October 2007 

we’ve opened 20 new Allstate Insurance Agencies – 13 in Quebec; 3 in New 

Brunswick; and 4 in Ontario. There will be 3 more open by the end of May, 

2 in Ontario; and 1 more in New Brunswick. I encourage all of you to visit 

our Agents in one of our new agencies as they open across Canada. 

I have shared with you in the past that with any change there are those 

who are excited about our new way of doing business and those who are 

not. As you know, some Agents have decided to pursue other endeavours 

and I know that there are others still contemplating their available options. 

That said, I am optimistic about our future and we will focus our energy and 

resources on supporting the majority of our agents who have and will move 

into their new Allstate Insurance Agency. 

We are excited about the new Allstate Insurance Agency and we know 

that it will not only enhance and strengthen our relationships with our customers, 

but also enable us to grow, be profitable and remain competitive in a 

changing marketplace. For those who stay the course, we will strive toward 

a prosperous future that is based upon the requirements and expectations of 

the customers we serve. 

MJD 


usiness 

Would You Like Fries With That 

BY JOHN BOE 

While you may not have recognized it, 

the last time you ordered from a fast food 

restaurant or went to the post office, there 

is a good chance you experienced some 

form of cross-selling or up-selling. Crossselling 

and up-selling are well-established 

and highly effective marketing practices 

utilized by a wide variety of industries. 

What is cross-selling It is a proactive, 

ongoing sales process designed to provide 

your customers with a full spectrum 

of your company's products and services. 

The good news is, cross-selling is one of 

the most profitable and least risky endeavors 

a sales rep can undertake. 

My first exposure to cross-selling was 

as a teenager in high school working 

part-time at McDonalds during summer 

vacation. Looking back on my brief 

tenure selling hamburgers, I can still hear 

my manager's daily refrain; be polite, keep 

the counter clean and always, always ask if 

they would like fries with their meal. 

A couple of years later while attending 

college, I took a part-time job selling 

shoes at the mall. I was paid an hourly 

wage to sell the shoes but I received a 

commission whenever I cross-sold any 

accessory items such as shoe polish, 

socks or purses. This was my first taste 

of commission and, as a starving college 

student, I took to cross-selling and upselling 

like a duck to water. 

Some short-sighted salespeople 

might suggest that customers are irritated 

by cross-selling and perceive it as an 

aggressive sales technique. Interestingly 

enough, consumer research indicates that 

the reverse is true. The majority of consumers 

surveyed actually preferred a full 

range of products and services and appreciate 

the convenience that is provided 

through a comprehensive cross-selling 

approach. Top producing salespeople understand 

the power of cross-selling and 

recognize it as a critical component for 

promoting both customer retention and 

revenue growth. 

Not surprisingly, two of the key elements 

that make cross-selling and upselling 

work are trust and convenience. 

Your customers already possess a degree 

of trust in your company and this can be 

converted into additional sales that are not 

directly related to their existing products. 

The best place to introduce your customer 

to the concept of cross-selling is 

during your initial needs analysis meeting. 

Unfortunately, many salespeople fail 

to take the time to conduct a thorough 

needs analysis and as a result, do not uncover 

potential products and services that 

would be of benefit to their customer. Ask 

questions and take good notes. Effective 

cross-selling is all about guided self-discovery. 

Through a series of thought provoking, 

open-ended questions, successful 

salespeople assist their customers to uncover 

potential needs. During the needs 

analysis interview, I highly recommend 

the use of a checklist that incorporates all 

of your company's products and services. 

Relying on your memory alone is a poor 

business decision; so take the time to jot 

down key information. Developing a 

systematic approach to cross-selling and 

up-selling brings in additional revenue 

with relatively low expense and effort. 

As you prepare for your next client 

appointment, I challenge you to look 

for cross-selling and up-selling opportunities 

that you can incorporate into 

your presentation. Sales reps who fail 

to implement an effective cross-selling 

program actually do a disservice to their 

customers and leave the backdoor open 

to their competitors! 

John Boe presents a wide variety of motivational 

and sales-oriented keynotes and 

seminar programs for sales meetings and 

conventions. John is a nationally recognized 

sales trainer and business motivational 

speaker. To learn more, visit www.johnboe. 

com or call 877 725-3750. Free Newsletter 

available on Website. 


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Summer »Target 2008 new markets 

Exclusivefocus — 25

feature 

There Must be a Better Way... 

One Agent’s View 

T“The companies believe that agents operating 

as independent contractors are 

best able to provide the creative selling, 

professional counseling, and prompt and 

skillful service essential to the creation 

and maintenance of successful multipleline 

companies and agencies. We do not 

seek, and will not assert, control of your 

daily activities, but expect you to exercise 

your own judgment as to the time, place 

and manner of soliciting insurance, servicing 

policyholders, and otherwise carrying 

out the provisions of this Agreement. 

You have chosen this independent 

contractor relationship, with its opportunities 

for financial reward and personal 

satisfaction, in preference to one which 

would place you in an employee status.” 

The above referenced statement is the 

third paragraph of the Preamble in the 

State Farm Agents’ Independent Contractor 

Agent Agreement. 

State Farm’s Hiring Process 

State Farm is not known to actively solicit 

for agents, but their agent candidates 

come from substantially the same pool of 

sources that supply the insurance industry. 

A typical prospect might be a recent 

college graduate, newly licensed agent, or 

a management type who wants a taste of 

front line sales. State Farm typically eschews 

tenured agents from competitors 

and prefers to interview employed, financially 

stable, entrepreneurial types with 

long term goals. A potential agent candidate 

can expect a brief initial interview 

with a follow-up contact to see if an interest 

still exists. A second interview usually 

consists of State Farm’s screening test and 

more probing background questions. A 

passing grade on the test and a successful 

interview places a prospective agent in a 

hiring holding pattern. 

From the time a State Farm agent is 

first interviewed, to the time he or she 

sells their first policy, usually well over a 

year has transpired. A State Farm manager 

explains, “We are corporately, financially, 

emotionally, and legally bound to 

our agents for a lifetime. State Farm will 

only terminate an agent for unethical/illegal 

behavior, failure to attend mandatory 

annual compliance meetings, or at 

the agent’s request. State Farm views 

the lengthy interview process as our only 

time to ‘fire’ an agent, because once we 

hire one, they’re here to stay.” 

Running a State Farm Agency 

State Farm stands one hundred percent 

behind its agents. Agent success is 

their singular focus. Agents complete a 

probationary period where life, quality 

auto, and other insurance lines quotas 

must be met. Many new agents are 

seeded with unrepresented accounts that 

become fully compensated after the pro- 


ationary period. Once the transition 

has been completed to full agent status, 

an agent contract is executed and State 

Farm and the agent begin their lifelong 

partnership. 

State Farm agents must maintain 

reasonable office hours, be open on days 

when regional customs dictate customers’ 

expectations, and provide customer service 

consistent with a professional operation. 

That’s it! There are no production quotas, 

Expected Results, or any other kind of 

sales volume that must be achieved. 

Newer State Farm agents have a tiered 

compensation package that offers higher 

commission percentages for cross sales, 

life insurance production, and higher 

auto production numbers. For the new 

agents, as is the case for older State Farm 

agents, there are no production quotas, 

Expected Results, or any other kind of 

sales volume that must be achieved in 

order to keep from being fired. 

Area Managers are a State Farm 

agent’s link to their corporate world. 

Area Managers interface with agents 

concerning product training, customer 

complaints, agent concerns, and corporate 

communications concerning market 

conditions. Agents may be provided with 

peer sales statistics, but they are never 

given an “Annual Review” with a contract 

terminating outcome. 

Allstate’s Version 

In a market dominated by independent 

agents and competitors, such as 

State Farm and Nationwide, utilizing 

true independent contractor agents, 

Allstate prefers using an agreement 

that, when combined with its 300 page 

“Supplement,” more closely resembles an 

employee agreement. This agreement is 

chock-full of employee-like controls and 

is administered in the field by layers of 

management. The company’s management 

is reminiscent, albeit on a smaller 

scale, of a “multilevel marketing” or 

“pyramid” style structure. This top-down 

structure has been entrenched at Allstate 

for decades. The management program 

has seen few major changes over the 

years, even after the mass conversion 

in 2000 when employee agents were 

fired and then re-hired as independent 

contractors. The most apparent change 

to the agency force was that, instead 

of their managers being called MSMs 

(Market Sales Managers), they would 

now be called MBCs (Market Business 

Consultants). Otherwise, there was little 

change and managers, for the most part, 

still acted with a sense of superiority and 

treated agents like employees. With this 

management style deeply engrained in 

the Allstate culture, there can be little 

hope that it will change anytime soon. 

Why is the company adhering to old 

school management techniques which 

have their roots in 1950s The reason 

for this will be revealed later, but first 

we need to look at what makes Allstate’s 

agent program tick. 

The key element to the success of this 

type of management style is control. By 

exerting a series of pressure points, emanating 

from the top, Allstate management 

can control its agents’ efforts and 

shift its focus to accomplish corporate 

versus agent driven goals. 

The Regional Vice President position 

is arguably the most influential position 

within the company. Answerable to only 

a few above, an RVP controls a litany of 

managers including, in descending order, 

the assistant VP, Regional Distribution 

Leaders, Territory Distribution Leaders, 

Market Distribution Leaders and Inside 

Distribution Leaders. This pyramidstyle 

hierarchy ensures a “reverse funnel” 

effect in which everything flows downhill. 

Lower ranking managers report to 

their immediate superiors who, in turn, 

report to their superiors until the buck 

stops at the RVP level. The RVP then 

reports to Home Office. At the bottom 

of this “food chain” are the agents, who 

bear the brunt of plans and strategies 

hatched at the top of the funnel. 

Back before the year 2000, when the 

company acknowledged that it had employee 

agents, the management pyramid, 

as described above, compensated agency 

managers based upon the performance 

of the agents under their immediate control. 

But this performance-based compensation 

did not stop at the MSM level. 

This performance-based compensation 

flowed upstream all the way to the RVP 

level, with each level taking a little piece 

of the agents’ hard work. Some would 

equate this to an “upline” in a multi-level 

marketing organization. By reversing 

the view to that of the RVP, it’s easy to 

see how that position can enforce a reward/punishment 

system for those managers 

he controls in his “downline” and 

then ultimately to the agent. And while 

management titles have changed, the 

positions and the basic processes remain 

virtually unchanged. 

The way it works is that Home Office 

establishes a broad set of goals and guidelines 

for regions to follow. For the most 

part, the regions have significant control 

over how they achieve their results as 

long as they stay within company guidelines. 

Obviously, RVPs with higher aspirations 

will toe the company line more 

so than those who cherish more regional 

autonomy. Say, for example, that an RVP 

is looking to increase his financial service 


elated bonus. His first step is to notify 

his AVP and all the TDLs in his region 

that it is unacceptable for them to not 

be on pace for their bonuses. The TDLs 

then inform all of their MDLs that it 

is unacceptable for them to be less than 

on pace for their bonuses. The MDLs 

subsequently turn up the heat on their 

agents. The agents, reacting out of fear 

of termination, begin to miraculously sell 

more life insurance. 

The Carrot, then the Stick 

Allstate’s recruitment process is extremely 

short by State Farm standards. 

Prospective Allstate candidates are aggressively 

sought-after and are culled 

down from either a state data base for 

licensed agents, referrals from Allstate 

employees or, atypically, from walk-ins. 

Prospective hires are given glowing RFG 

“what if ” scenarios and encouraged to 

look for possible office locations. During 

discussions with the prospective agent, 

Expected Results (quotas) are seldom 

mentioned and Agency Standards and 

Supplemental Manuals are kept out of 

view and not made available until around 

the time a formal contract is presented 

and signed. Total time for Allstate to 

identify and hire an agent is typically less 

than six months. 

New agents receive intense daily contact 

and are coached about the rewards 

for exceeding minimum production standards. 

Checkpoint meetings (control) are 

always performed with RFG bonuses as 

benchmark minimums and financial services 

production as the main focal point. 

Early on, agents receive indoctrination 

into focusing on Allstate corporate goals 

and are quickly assimilated into a team 

mentality (control). Managers constantly 

remind agents of bonuses, awards and the 

benefits of meeting RFG goals. These 

are in reality, Allstate management minimum 

production requirements. It is only 

when an agent’s production in Financial 

Services is lagging that we get a glimpse 

into the true nature of Allstate’s agent/ 

company relationship. 

As an agency matures, a subtle shift 

occurs between aggressive solicitation for 

new business to that of sales and service. 

Mature agencies can be top-heavy with 

customer service as agents begin to focus 

on retaining their hard-earned customer 

base. For the tenured agent, reaching and 

perpetuating a satisfying level of income is 

what it is all about. For Allstate, this represents 

a loss of focus and for an IDL or 

MDL in particular, it spells lower bonuses. 

Agents who concentrate more on 

auto production and retention than life 

insurance, can expect to receive a letter 

from their IDL/MDL reminding them 

where they stand in regard to their RFG 

bonus and Expected Results. This none 

too subtle letter is meant to intimidate 

the agent. This situation represents an 

example of two worlds colliding. In one 

world we have an agent with superb loss 

and retention ratios whose expertise and 

comfort level lies in selling and servicing 

P&C products. On the other hand, 

Allstate wants its agents to write more 

life and financial – and agents who don’t 

are not considered team players. Since it 

is these agents that jeopardize the bonus 

potential of each manager in their “upline,” 

they are prodded both verbally and 

in writing to make their numbers. There 

is no positive motivation at this point. 

It is abundantly clear that management 

has little patience for noncompliance 

with Expected Results. Failure to show 

substantial improvement can result in 

termination. 

Like any other company, Allstate is 

in business to make a handsome profit. 

But unlike some other agent-based companies 

where profitable agencies are the 

cornerstone for their success, Allstate 

sees little value in retaining profitable 

agencies that don’t produce enough life 

and financial business to get their “upline” 

managers a hefty bonus. This line 

of thinking is ludicrous. Companies like 

State Farm don’t go around firing agents 

arbitrarily. At Allstate, it seems that 

management wants to pound square pegs 

into round holes. Which brings us back 

to Allstate’s hiring process. 

You know the drill. Pass a track test, 

demonstrate that you have enough money 

to live on for six to twelve months, 

pass a background check, commit that 

you’ll get your series 6 and series 63 licenses 

and, chances are, you’ll qualify as 

an Allstate agent. The dirty little secret 

here is that, compared to State Farm, 

Allstate’s investment in an agent’s success 

is minimal. Yet the newbie agent has 

committed to investing his life savings 

in a business opportunity he knows very 

little about. He knows very little because 

he’s told very little and, in most cases, 

is not privy to the Agent Agreement or 

the Supplement until he signs the dotted 

line. After training in Chicago, he is at 

the mercy of his MDL and his NAC. If 

they are caring, competent and attentive, 

he stands a chance. If not, he’s thrown to 

the wolves with little or no training – a 

recipe for financial ruin. It would seem 

that, in many cases, Allstate hires highly 

motivated sales people who are poorly 

qualified entrepreneurs. 

In contrast, State Farm prefers highly 

qualified entrepreneurs, period. The State 

Farm system relies on a two year vetting 

process resulting in a lifelong commitment, 

stable agency production and high 

customer retention. Allstate sees its business 

model as one where controls are exerted 

by management to force agent goals 

to align with corporate goals. New Allstate 

agent candidates are always available 

to replace nonconforming, non-bonus 

producing agents – an egregious practice 

that encourages constant agent turnover. 

Putting the Pieces 

of the Puzzle Together 

This disposable agent program is 

counter-productive. By Allstate’s own 

admission, agent morale continues to 

be low, with the most recent survey indicating 

a drop from last year. It would 

seem that the company has bought into 

the hype that workers no longer have any 

loyalty to their employers, so it has taken 

the tack that agents are among those who 

have no loyalty. Nothing could be further 

from the truth. Agents who come to work 

for Allstate want a career, not a job. They 

willingly invest tens of thousands of dollars 

to fulfill their dreams of owning a 

business from which they can eventually 

retire. Does making a substantial investment 

in an Allstate agency sound like a 

short term plan On the contrary, the reverse 

is true. Not only are agency owners 

loyal to Allstate, but most want a long 

and satisfying career. What is it about 

this picture that the company doesn’t understand 

By the time agents receive this 

issue of Exclusivefocus, hundreds, if not 


thousands, of agents will have received 

letters advising them that they must 

make substantial improvements in AFS 

production. Many will fail. And agent 

morale will plummet once again. 

Based on its actions, it would seem 

that Allstate is smitten with a “what are 

you going to do for me today” mentality. 

Instead of taking a long-term approach 

like State Farm, company management 

appears to be focusing on an “instant gratification” 

philosophy. Dedicated, longterm 

agents who have built their agencies 

customer by customer are no longer 

revered because, in many cases, they don’t 

submit the volume of AFS business the 

company desires. The fact that these 

agents have spent 30 years or more nurturing 

customer relationships means little 

to today’s managers. Evidence of this pervasive 

mindset abounds. At a 2008 kickoff 

meeting in Tampa, Florida, MDL Betty 

Lauro insulted seasoned agents when she 

proudly proclaimed that more than 50% 

of the agents in the Bay area market had 

less than three years service. Is this a statistic 

to be proud of In most industries, 

even within our own, experience matters. 

When agents leave Allstate voluntarily, 

there are few acknowledgements 

or “thank yous” for their years of valued 

service. And after leaving the company, 

it’s as if you never existed. It wasn’t always 

that way. Back in the days before the 2000 

mass conversion, many regions honored 

agents with long tenures. Management 

acknowledged and respected those who 

had spent their careers on the front lines, 

building the Allstate brand. Retirement 

parties were commonplace and were oftentimes 

sponsored and paid for by the 

company. Today, such an event would be a 

very rare exception. Apparently the company 

has made a conscious decision to rid 

itself of its experienced agents so as to not 

taint the minds and attitudes of its new 

crop of agency owners. 

But the story does not end yet. Consider 

Allstate’s most recent cost shifting 

program: Agent Choice Technology 

(ACT). Agents now pay for: rent, electricity, 

phone service, advertising, yellow 

pages, letterhead and envelopes, MVR 

expense, employee expense, postage, and 

miscellaneous office expenses. When Allstate 

completes ACT implementation, the 

only thing agents won’t pay for directly is 

after-hours service. Given this scenario, 

the question agency owners should be 

asking themselves is “What is Allstate’s 

value proposition for me” Not only will 

Allstate agents be paying for nearly all of 

their own expenses while they earn a fraction 

of their independent agents counterparts, 

they are hounded for more AFS 

production. Then, when they don’t make 

their numbers, they are threatened with 

termination. Besides the potential resale 

value, say between 2 to 4 times renewals, 

of an agent’s book of business and the 

“privilege” of being able to represent the 

Allstate brand, there really is very little 

else the company offers its agency force in 

terms of a value proposition. 

But is there a better way Allstate only 

With an apparent all-out 

assault on agency owners who 

haven’t met their AFS numbers 

in progress, it appears the 

company is growing 

desperate. 

has to look to its main competitor for the 

answer. State Farm, the perennial market 

leader, does more with less. Fewer agents, 

fewer managers, yet higher sales. It would 

make much more sense for the company to 

lop off a few layers of management instead 

of firing agents. When asked about the 

value their MDLs bring to the table, most 

agents overwhelming agree that while they 

try hard, they are generally “useless.” By 

eliminating every IDL, MDL and most 

TDLs, Allstate could immediately add 

to their bottom line profitability. Salaries, 

benefits, 401ks, car allowance, and, of 

course, bonuses for managers must total in 

the hundreds of millions annually. 

Giving up this bloated system, however, 

would loosen the company’s reins 

over its agents. Never mind that such a 

move, if implemented properly, could 

cause a positive paradigm shift for the 

company and the agency force, plus save 

millions of dollars a year. Would agents 

run amok The answer is no. The vast 

majority of agency owners are responsible 

business owners who understand full 

circle selling principles. 

Allstate’s pyramid management system 

has worked for decades. Is it still “working 

as designed” or are we beginning to see 

chinks in its armor With an apparent allout 

assault on agency owners who haven’t 

met their AFS numbers in progress, it appears 

the company is growing desperate. 

Competition continues to make serious 

inroads into Allstate’s vaunted market 

position. The company has responded by 

increasing Expected Results quotas while 

it announced a cut in life commissions – a 

move that is sure to motivate agents to sell 

more AFS products. 

In another attempt to increase the 

[ ] 

company’s eroding PIF base, it has announced 

“Emerging Businesses” pilot 

programs in a few states, including Florida, 

Texas, Colorado and Pennsylvania. 

The plan is to incentivize agents to sell 

Motorcycle, RV and Renters by paying 

first-year commissions as high as 30% on 

these products. As appetizing as this may 

sound, the devil is in the details because 

renewal commissions can be as low as 2% 

for the life of the policy. Hypothetically, 

an agent selling 1,000,000 of this business 

would earn a whopping $300,000 

in first-year commissions – not a bad return. 

The downside is that the renewal 

income generated from these policies 

only amounts to $20,000 a year, assuming 

a 2% commission rate. 

Based on these examples and those 

in Canada, it looks like the company has 

set its sights on lowering agent commissions. 

It has become more apparent, at 

least to this writer that, not only is the 


company is “unwilling or unable” to 

compete head to head with our competition, 

but is relying on cutting costs 

and shifting costs to the agency force in 

order to prove to shareholders that this 

management team is worth its salt. But 

cost-cutting can only go so far before 

it becomes counter-productive and it 

clear, based on recent surveys, that the 

morale of the agency force is at or approaching 

an all-time low and prospects 

for improvement are nowhere in sight. 

Captain Wilson, your ship is taking on 

water and lots of it. Your crew wants to 

help you save it, but it won’t be easy. For 

starters, you may want to jettison your 

1950s style management culture, stop 

focusing on short term “patches” and 

solutions, take time to learn some lessons 

from companies that enjoy positive 

relationships with their agents, abandon 

the employee-like controls that you impose 

on your independent contractor 

agents and get back into your core business 

by showing some true grit in the 

marketplace. 

Time for a Reality Check 

The agents of Allstate understand the 

company’s desire to write more financial 

services business – it is a huge profit 

center. The problem for many agents, 

at least in coastal areas, is a loss of PIF. 

Fewer households mean fewer opportunities 

to sell financial products. In addition, 

because of this no growth or negative 

growth trend, agents are recycling 

the same customers over and over again 

hoping they’ll buy some financial products 

from them. And because of the company 

has decided it won’t cut rates and has 

abandoned property markets, there is little 

“new blood” in agent books of business. 

Yet, in spite of all this, the company arbitrarily 

boosts agent quotas, threatening 

the livelihoods of thousands of producers. 

If left unchanged, this flawed approach 

will become even more pronounced. The 

books of many agents are extremely mature 

– many have customers with original 

policy years in the 1950s. These customers 

are in their 70s, 80s or 90s – hardly prospects 

for life insurance or suitable candidates 

for the company’s new ClearTarget 

Retirement Funds. 

The company doesn’t cotton to the 

opinions or observations of those outside 

of its inner sanctum in the bowels 

of Home Office. This is not uncommon 

for paternalistic oriented companies or 

organizations. They presume to know 

what’s best for the entity as a whole while 

eschewing honest and constructive input 

from those on the front lines. On the 

battlefield, this would likely be a losing 

strategy, just as it is in business. Listening 

doesn’t cost a dime – failing to listen can 

cost a fortune. Looking from the bottom 

up, it is clear that Allstate’s agent recruitment 

process, its heavy-handed treatment 

of “independent contractor” agents and its 

archaic management structure are due for 

major overhaul. But because the corporate 

mind-set is so entrenched, there is little 

optimism that things will change, even 

among many of the hand-picked NAB 

members. They privately complain that 

some topics are off-limits and that much 

of their input is unheeded. 

It was hoped that Mr. Wilson would 

be a true visionary with the ability to 

identify and fix these problem areas. So 

far, agents have been underwhelmed and, 

in fact, disappointed. While most agents 

understand the need for the company to 

rid itself of problem agents, including a 

small percentage of blatant non-producers, 

the latest spate of “improve or else” 

letters have been sent to, perhaps, thousands 

of agents. This is bully-style management 

at its worst. 

“Lather, rinse, repeat” 

It is doubtful that any newly hired 

Allstate agent would have ever agreed 

to sign on the dotted line if they, for the 

slightest moment, thought they were 

anything but independent. Some, if not 

most, managers are untruthful when 

they present the Allstate opportunity to 

the budding entrepreneurs they interview. 

While they don’t lie outright, they 

simply fail to disclose or gloss over information 

that could adversely influence 

a candidate’s decision. These deceptive 

practices are not only unethical, but can 

bankrupt an unsuspecting candidate. 

This “Buyer Beware” attitude is unconscionable, 

especially in light of the fact 

that these unsuspecting victims place all 

their trust in what they are told. Thanks 

to this process, a great many new agents 

fail and when they do, the process begins 

all over again. It matters not that most 

have spent their life savings chasing their 

dream of owning and operating their own 

business. For their part, many managers 

look at these poor souls as losers, never 

grasping the fact that they were the root 

cause of these failures. Whether they’re 

devoid of scruples or just plain clueless, 

the managers don’t look back. They must 

hire a replacement to make their year-end 

numbers. And so, the cycle repeats itself 

and like running in place, it all seems to 

be an exercise in futility. 

But all this may not be disturbing to 

some agents. Much like kidnap victims 

who begin to empathize with their captors, 

these agents may not fully comprehend 

the cumulative effects of the 

changes that have occurred in the past 

several years. How else is it possible that 

the company can get away with shifting 

more and more costs and exert more 

and more control over its “independent 

contractor” agents – and then have the 

audacity to send threatening letters to 

thousands of agents 

Although this part of the story doesn’t 

have a neat, pre-packaged ending, it 

would appear that the company has a 

lot of soul-searching to do before Captain 

Wilson can right the ship. As more 

and more agents fail, as more and more 

of Allstate’s market share drifts away, and 

as more and more agents realize that they 

are not truly “independent”, it may be 

Allstate’s inability to hire and retain truly 

qualified agency owners that ultimately 

signals the time for change. 


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Looks like a job for AMS 360.

membership musings 

Standing By You Since 1990 

BY JIM FISH 

Every so often we find it necessary to publish 

a bit of historical information about 

our association and how it came into being 

some 18 years ago. We do this for the 

benefit of newer agents who are not aware 

of who we are or why we exist. 

NAPAA was founded in 1990, the 

same year that the company introduced 

its first EA “independent contractor” 

agreement. At the time, these independent 

contractor agents were commonly 

referred to as NEAs, a term that has 

since been shortened to EAs. Back then, 

the vast majority of Allstate agents were 

still employee agents. Many, if not most, 

of them had opted to become Neighborhood 

Office Agents (NOAs), a cost 

sharing program that the company heavily 

promoted in the 1980s. Agents under 

the NOA program were still employees, 

but had some control over their office expenses. 

The company provided an Office 

Expense Allowance (OEA), but one and 

two agent locations struggled as many 

regularly outspent the funds they were 

allotted. In the end, many agents found 

the OEA funds insufficient to cover their 

basic expenses. This realization angered 

NOA agents and led a group of them to 

form the National Neighborhood Office 

Agents Club, or NNOAC. 

While NNOAC consistently proclaimed 

that it was not and did not intend 

to become a union, the company took a 

dim view of the organization and did its 

best to feign denial of its existence. To 

the agents of Allstate, however, NNOAC 

communications echoed their own sentiments 

and spoke their language, causing 

membership to soar. By this time, the 

company was clearly concerned. On the 

surface, the company downplayed the significance 

of NNOAC’s rise, but behind 

the scenes it was conducting education/ 

training sessions that taught managers 

how to “Maintain Non-Union Status.” 

As a result of these tactics to discredit 

NNOAC, some managers went to great 

lengths to discourage agents from joining. 

In spite of these efforts, NNOAC 

continued to thrive and grow. In the mid 

1990s the name was changed to the National 

Association of Professional Allstate 

Agents, or NAPAA. 

During the first 15 years of its existence, 

the association played a dual role. 

While its primary purpose was to act as an 

advocate and a voice for Allstate agents, it 

also took strong positions on certain legislative 

issues and other initiatives friendly 

to the insurance buying public; most notable 

were its stands opposing credit scoring 

and property redlining. 

Then in the year 2000, the company 

implemented its “Preparing for the Future” 

initiative wherein employee agents 

were fired, but had the option to come 

back to work as “independent contractors.” 

This event was a huge watershed 

in the histories of both NAPAA and 

Allstate. Benefits were lost and pensions 

were frozen – it was a traumatic and 

painful time for the agents affected by 

the company’s initiative. That one single 

event in the year 2000 spawned a massive 

exodus of Allstate agents in the early part 

of this decade. And while it has slowed 

to a trickle, the exodus continues to this 

day. Disillusioned veteran agents still cite 

that day in June 2000 as the day they 

stopped trusting the company and the 

ultimate reason for their departure. 

Ever since the purging of these former 

employee agents began, the company 

has been busily replacing them with 

new EAs. These entrepreneurial types 

bring a different perspective with them, 

at least at the outset of their careers. For 

the most part, they are self-sufficient and 

business minded. They look for ways to 

succeed. Sadly, many of them are woefully 

undercapitalized and wind up leaving 

because they cannot afford to stay. 

Unfortunately, some company managers 

encourage new agents to throw money 

at all kinds of low-return marketing 

schemes, a practice that only hastens 

their inevitable failure. 

Recognizing this trend, NAPAA 

changed its course and its mission statement 

in 2005. These changes allow 

NAPAA to focus its energies on helping 


agency owners succeed, not only in their 

Allstate agencies, but in other business 

ventures as well. NAPAA encourages 

agency owners to make the most of their 

“independent contractor” status by developing 

permissible alternative streams 

of income and to create their own brand 

identity. Going forward, we believe that 

self-preservation and diversification 

will become increasingly important for 

agency owners. Gone are the days when 

agents were able to count on the company 

for job security and benefits. 

The ever-present threat of natural 

disasters has affected markets in coastal 

regions and in earthquake markets nationwide 

and products that agents formerly 

wrote through Allstate must now 

be written through a hodgepodge of 

Expanded Market carriers. The bottom 

line is that there are no guarantees at Allstate 

any longer. A lot of smaller and less 

productive agencies will be forced out of 

business due to unattainable quotas or 

because of ever increasing office expenses 

caused by the RFG, NRG and the Executive 

Advantage initiatives. While many 

of these agency owners understand what 

it takes to grow their agencies, they don’t 

have the kind of money it takes to mount 

a sustainable marketing campaign. 

For agencies trapped in this predicament, 

all is not lost. This is especially 

true if you are on pace to your AFS 

goals. NAPAA can assist member agencies 

with solutions that can help increase 

revenues or suggest options that may 

help ease cash flow problems. Let’s face 

it, starting an Allstate agency is not easy 

and, in spite of its desire to see agencies 

succeed, the company has little to offer 

in terms of assistance for struggling 

agency owners. In our opinion, the company 

is its own worst enemy. Instead of 

working closely with agencies to develop 

key strategies that actually grow PIF 

and drive revenues, low level managers 

devote too much time and effort on 

the hiring treadmill – a practice that is 

counterproductive. Rather than helping 

disadvantaged agencies succeed through 

genuine interaction and involvement, 

many managers compound the problem 

by encouraging agents to throw money 

at a slew of marketing schemes, adding 

unnecessary staff or spending money on 

other superfluous programs, all of which 

contribute to the demise of the agency 

by draining precious cash reserves. More 

often than not, this strategy fails, leaving 

the agent with few options to grow 

the business. Management doesn’t win 

either. When an agent fails or is about 

to fail, the manager is under pressure to 

hire another body to fill the vacancy. This 

process is seemingly never-ending and is 

repeated time and again in many markets 

throughout the country. 

It is easy to point fingers at this ongoing 

tragedy. Management can blame 

failed agency owners for their lack of due 

diligence in researching the Allstate opportunity 

and for their naivety in business 

matters. Failed agency owners, on 

the other hand, can blame management 

for a host of issues such as failing to provide 

a clear picture of the Allstate opportunity 

and for trivializing the amount of 

start-up capital needed to ensure a fair 

chance of success. 

To be fair, there are scores of honest, 

hard-working managers who “tell it like 

it is” when they hire new agents. These 

are the same managers who bend over 

backwards to help their agents succeed. 

Managers of this caliber should be commended 

by agents and management alike. 

If your MDL or IDL fits this profile, you 

are very fortunate indeed. 

In general, seasoned agents are not dependent 

on their managers. Newer agents 

are another matter. Most want a responsive, 

hands-on kind of manager because 

they need help and lots of it. For example, 

they may need someone to show them 

how to make effective telephone solicitations. 

They need a manager who’s not 

afraid to demonstrate this process, but 

who is willing to continue demonstrating 

for as long as it takes for the agent to 

get it right. What are the chances that a 

newer agent will luck out and get such 

a manager Well, even if the answer is 

a conservative one in 10, there is a 90% 

chance that he won’t – hardly an encouraging 

statistic. 

This is where NAPAA can help. Our 

board of directors and headquarters staff 

have more than 200 years of combined 

experience in and around Allstate – that’s 

a whole lot of knowledge and experience. 

Members have access to individual board 

members and to our headquarters staff. 

While distance doesn’t make it possible 

for us to sit with agents to demonstrate 

telemarketing techniques, there are plenty 

of other areas where we can help. Each 

of our board members and headquarters 

staff has had firsthand experience with 

the thrills and spills that are part of the 

new agent experience. The first year or 

two on the job can be turbulent and 

stressful, so it is critical that agents receive 

honest answers and useful information 

– something they can’t always get 

from management. If you call NAPAA, 

we will give you straight answers – but 

remember, this service is reserved for 

members only. 

NAPAA is in the Allstate agent business. 

We cannot survive without members. 

Following this article you will find a 

membership application which we hope 

you will complete and fax to us. We offer 

something for all agents, whether you are 

a seasoned veteran or a one month newbie 

who needs a lot of help. The cost of membership 

is less than a dollar a day. If money 

is tight, we also have a plan that allows you 

to join for free when you agree to process 

your payroll with E-chx Payroll Solutions at 

least twice per month. References for their 

service are available upon request. 

Over the years we have seen hundreds 

of agents join NAPAA out of desperation 

– right when they were on the verge 

of losing their business for one reason 

or another. Hoping for a miracle when 

you’re halfway out the door is not a good 

plan of action. A better plan would be 

to join NAPAA before you’re in trouble. 

Agents know if they’re performing to 

plan or not. It’s pretty simple – either 

you made your numbers or you didn’t. 

And this year in particular, the company 

is dead serious about agents making their 

numbers. So, if you haven’t made your 

Expected Results for the past few years, 

you are at risk of receiving a warning letter 

from the company. If you are in this 

position, now might be a good time to 

pull out all the stops and write some additional 

AFS business on your friends and 

family. Some agents have been known to 

“buy the shortfall” in order to make their 

Expected Results. While this solution is 

expensive, it could save your job. 

The question you need to ask is 


whether spending this amount of money 

is worth protecting your $200,000 plus 

income. NAPAA does not condone or 

endorse this practice, but understands 

the plight of these agency owners. When 

an agent is faced with the specter of losing 

his livelihood and is given a limited 

amount of time to produce the results he 

needs, there are few viable options left 

on the table. Obviously, agents can’t afford 

to buy their jobs year after year, but 

it may be worth considering if your job is 

in jeopardy. 

“Desperate times call for desperate measures” 

– author unknown 

When the company opts to terminate 

an R3001 contract, the agent only has 

90 days (120 days in California) to sell 

his book of business. Finding a qualified 

buyer, negotiating a price, obtaining the 

necessary approvals and then completing 

the sale within 90 days is a huge feat that 

takes a lot of luck and requires that all 

the pieces fall into place. Unfortunately, 

this is not a typical outcome. Many of 

the agents forced to sell under such circumstances 

wind up taking the TPP or 

sell at a “fire sale” prices, costing them 

tens of thousands of dollars. 

Let’s assume than an agent with a 

$2,500,000 book receives a letter of termination. 

Frantic, he scrambles to find a 

buyer. He finally finds one, but the buyer 

is turned down by Allstate. Now he is really 

under the gun because it took 30 days 

for him to find the first buyer. Ever more 

desperate, the agent steps up his efforts 

to find a qualified buyer, but they are few 

and far between. Days turn into weeks 

and the agent begins to lose hope. By 

this time, the agent is prepared to accept 

less than his original price of $750,000 (3 

times renewals), but still believes he can 

get $625,000 (2.5 times renewals). Just as 

he had given up all hope, the local MDL 

shows up with a “qualified” buyer in tow. 

The agent is ecstatic and has trouble concealing 

his excitement. His joy is shortlived, 

however, as the prospective buyer 

nonchalantly announces he is considering 

the purchase of a different agency. 

Then, at the last possible moment, this 

same buyer makes a low-ball offer of 

$400,000 – a paltry 1.6 times renewals. 

The agent weighs his options and reluctantly 

agrees to sell. The alternative was 

to take the termination payment from 

Allstate, which would be even less. 

Tragically, examples like these are all 

too common among agency owners who 

are forced to sell. Agency owners who 

receive a 120 day improvement letter 

should take it very seriously. As you can 

see by the example above, sitting around 

and doing nothing can cost hundreds of 

thousands of dollars. 

“Procrastination is the bad habit of putting 

off until the day after tomorrow what 

should have been done the day before yesterday.” 

- Napoleon Hill 

Over the years NAPAA has spent over 

$1,000,000 and thousands of man-hours 

working on behalf of Allstate agents. Our 

efforts have included supporting agent 

friendly legislation and consumer issues, 

voicing agent concerns over contractual 

issues and company practices, developing 

a first-rate communications network to 

keep agents informed, establishing membership 

assistance and benefit programs, 

funding legal and lobbying initiatives to 

help agents stay in business in troubled 

states such as Florida, and much more. 

And because of these efforts, NAPAA 

has thousands of supporters who cheer 

us on. These folks shower NAPAA with 

accolades, “high-fives” and “attaboys.” 

But in spite of this outpouring of support, 

many of these well-intentioned 

agency owners have put off joining our 

association for years. This fact confounds 

both our members and our board of directors. 

They wonder what these agency 

owners are waiting for. 

There are a number of pressing issues 

facing Allstate agents today. Management 

has hardened its stance. They are 

now implying that it is time for agents 

to ‘fish or cut bait.’ Maybe this is mother 

Allstate’s way of pushing agents out of 

the nest. There will be no more coddling 

or treating agents with kid gloves. 

This attitude will likely pervade all 

new corporate agent initiatives. It can 

already be seen in the RFG and Executive 

Advantage programs. It can also be 

seen in this year’s stiff AFS quotas. As 

if that weren’t enough, the company has 

seemingly stepped up efforts to enforce 

its quotas. So far this year, thousands of 

agents have been told they have deficiencies 

in AFS or P&C production. When 

these agents ask how much they need to 

improve in order to keep their jobs, the 

response is ambiguous, at best. Either 

the MDLs really don’t know or they are 

being told to be deliberately noncommittal 

and evasive so that they can pick and 

choose who stays and who goes. Perhaps 

the plan to send out thousands of warning 

letters was simply to goad agents into 

writing more business. Surely, there will 

be some sacrificial lambs in this group, 

but it is unlikely that the company will 

fire everyone who doesn’t show significant 

improvement. Even so, the number 

will probably still be significant. 

This “thinning of the herd” will have 

an adverse affect on BOB values. The 

number of agencies for sale will increase 

dramatically, thereby creating a glut on 

the market. There will be more sellers 

than buyers, not unlike the current housing 

dilemma. Prices will fall, allowing 

the chosen few, those with an acceptable 

RFG score and management’s blessing, 

to buy the best of these agencies at 

bargain basement prices. Agencies most 

adversely affected will be those that are 

involuntarily forced into the market with 

90 day time constraints. Most will be 

forced to sell because they didn’t meet 

Expected Results. 

So, here we are at yet another crossroads. 

Agency owners are being asked to 

do more with less. One has to wonder 

how much longer this trend can continue. 

Since 1990, NAPAA has been the 

only constant source of support for Allstate 

agents. We are the only organization 

that is completely dedicated to you 

and your success. I believe we are worthy 

of your support. I hope you’ll decide to 

join us today. 

NAPAA makes it easy for you to join. 

You can join online, by phone, by fax or 

by mail. If you don’t have time to fill out 

the application that follows this article, 

just write a check to NAPAA for $350 

(annual) or $29 (EFT). Then send the 

check to: NAPAA, P.O. Box 7666, Gulfport, 

MS 39506. That is all you have to 

do. We’ll figure out the rest. Don’t procrastinate 

any longer – join today! 


NAPAA Membership Application 

and/or Action Fund Donation 

Name:______________________________________ Off Ph:_______________________ Fax__________________________ 

Street:________________________________________________ E-Mail:__________________________________________ 

City:________________________________________ State:_____ ZIP:__________ Home Ph: _______________________ 

Is this address your ❑ Home or ❑ Office 

Status: ❑ Active Agent ❑ EFS Agent ❑ Staff ❑ Other (please explain)____________________________________ 

Date: _____________ Years with Allstate________ Office Zip Code (If using home address) ___________________ 

MEMBERSHIP SECTION - (CONFIDENTIAL) 

Includes: 

• Resources for buying and selling agencies ❑ Annual (Ck or CC) $350/yr 

• Transfer-in referrals 

• Timely communications, including weekly newsletter ❑ EFT (PAM) only $ 29/mo 

• Comprehensive resource center 

• Advice from experienced agency owners 

❑ E-chx will pay my dues 

• Sponsorship and support of agent friendly legislation 

ACTION FUND DONATION SECTION Check or CC EFT (PAM) amount 

PAYMENT SECTION 

$____________ or $____________/mo. 

❑ CHECK - Annual payment only. 

Please make payable to NAPAA and mail to the address at the bottom of this application. 

❑ CREDIT CARD – Annual payment only. I authorize this amount to be charged to my credit card. 

(Please complete the information below) 

Card type: ❑ VISA ❑ MasterCard ❑ Discover ❑ American Express 

Name on account ______________________________________ Amount to be Charged: $__________ (Annual only) 

Account Number ________________________________________ Expiration date __________ Security code________ 

Address on Card _____________________________________________________ 

Zip on Card_____________________ 

Signature of Cardholder _________________________________________________ Date ____________ 

(06/08 EF) 

❑ EFT (PAM) - Monthly (attach or fax voided check) 

I understand that the amount stated above will be deducted from my checking account every month until instructed otherwise. 

I have enclosed a voided check and understand that the withdrawals will occur on or about the 20 th of every month. 

Authorization Signature: _____________________________________________________________ 

Date ____________ 

❑ E-chx will pay my dues – I am an E-chx client processing payroll at least twice per month. 

NATIONAL ASSOCIATION OF PROFESSIONAL ALLSTATE AGENTS, INC. 

Please fax application Toll Free to: 866.627.2232 

Mail application to: P. O. Box 7666, Gulfport, MS 39506 

Call Toll Free: 877.627.2248 • E-Mail: HQ@napaausa.org 

Note: You do not have to be a member to donate to the NAPAA Action Fund

AAs most of you know who have been in the 

business a while, times have changed for 

those of us in the insurance industry. In the 

past, most agents with big books of business 

did little to actually market to grow their 

businesses. At Allstate, old timers remember 

the “drop your policy off at Sears and 

compare” ad campaign that was so successful 

in the 1970s. This campaign and others 

like it were paid for by the company. 

There were a couple of ways agents 

grew their agencies. In the recent past, 

many agency owners grew by acquisition. 

They were able to double the size of their 

agency overnight by buying a book and 

merge it with theirs. Other agencies grew 

through referrals and word of mouth over 

a long period of time. In those days, agents 

who advertised were in the minority and 

operated on a shoestring budget. Allstate 

agents were employees back then, so they 

had little or no entrepreneurial experience. 

Their primary sources of new business were 

quote calls and walk-ins at the Sears booth, 

referral business and, in the days before the 

No-Call List, outbound telephone solicitations, 

also known as “X-dating.” 

After an agent’s book grew to a certain 

size, he graduated to a “neighborhood” 

office where the company paid 

for a “shingle” in the form of an outdoor 

business tips 

Grow In a Hurry in 2008 

sign and picked up his office expenses. 

Since the outdoor sign and a companypaid 

Yellow Page ad were freebies, most 

agents did little else. Yet, they wrote business 

and most made a respectable living. 

Today, it is totally different. There are 

many methods, good and bad, that Allstate 

agents use to get business. I intentionally 

say “get business” as opposed to 

“get leads,” because, as any of you who 

have bought them know, leads that don’t 

convert into sales suck up a lot of time 

and money and might make you hate 

this business. 

Well it’s a new day now, and it’s time 

to learn how to market. Getting people 

to call your agency to buy from you is 

the most important skill you can learn 

because The Greatest Agent in the World 

Will Still Go Broke Without a Constant 

Stream of New Clients. 

Okay, so you know that marketing is 

the answer, but you also know that most 

everything you’ve tried marketing-wise 

has been a waste of money. 

Therefore, it’s time for a completely 

different approach to create new business. 

Here are a few tips that could add 

hundreds of thousands of dollars to your 

book of business by the end of 2008: 

1. Stop Counting on the Allstate 

Brand to Bring You Business. Your advantage 

is no longer Allstate or “Good 

Hands” marketing. You have to be different 

than everyone else in the industry, 

including other Allstate agents. 

2. Find What You Do Best and Tell 

the World. Become great at customer 

service, lead the field in claims for your 

clients, choose a niche that you know 

and care about and focus on it. 

3. Get Specific in Who You are Targeting. 

Don’t just look for people who 

want insurance. Seek out people that are 

more likely to give you money than the 

average person. What market group do 

you have an affinity with 

4. Don’t Just Buy Leads; Learn How 

to Create Your Own. If you outsource 

the lead creation for your business, you’ve 

just outsourced your income and given 

control of your business to someone else. 

Sure, buy leads if you want to, but that 

should only be part of a total mix that 

you create to get new business. 

Some of these ideas may be new to 

you and some might not, but the secret 

to success is in learning how to apply 

them in new and different ways. 

To paraphrase Zig Ziglar: “If you 

don’t like the results you’re getting, then 

something has to change.” 

RFG Got You Down 

FREE Report Details How to Make 5.5 by October. An Allstate 

Agentʼs Guide to Make More Money, Have More Fun, and Play 

More Golf. 24 Hour Free Recorded Message To Request Your Copy. 

(866) 595-0617 x. 6272 or visit 

www.MassiveRFG.com 



technology 

What To Expect When It’s Time 

to Convert to AOT 

BY THE NAPAA TECH GUY 

Besides being an Allstate agency owner, 

I also consult, repair and service Windows 

PC compatible computer systems 

for small businesses, small offices and 

individuals. Since I started working with 

IBM/PC computers in 1986, I’ve seen 

my fair share of technology changes. 

By now, most of you are well aware 

of the terms New Roads to Growth 

(NRG), Agent Owned Technology 

(AOT) and Agent Choice Technology 

(ACT). From what I can gather, there 

is no difference between the acronyms 

AOT and ACT. It appears that someone, 

somewhere thought one of these terms 

would be more appropriate than the other. 

So whatever your region calls it, these 

terms refer to computer gear and other 

technologies that you’ll have to pay for 

when Alstar disappears. For the purposes 

of this article I will call it AOT, or Agent 

Owned Technology. 

For most agency owners, the massive 

technology conversion process currently 

underway is intimidating. Let’s face it, 

we’ve had it pretty good for a long time. 

When problems arose with our phone 

system or Alstar, all we did was call our 

support team. That burden will now be 

shifted to us. This daunting prospect has 

many agency owners so uneasy that they 

don’t even want to think or talk about 

anything having to do with NRG. I call 

this “sensory overload.” Agents are being 

bombarded with information that most 

don’t really understand and, to frustrate 

them even more, are being contacted by 

a spate of vendors, eager to sell products 

or services. This is simply too much information 

at one time for many agents 

and, instead of learning all they can, they 

shut down. 

The purpose of this article is to help 

guide you through the AOT conversion 

– a process I recently completed. 

As the regions roll out the conversion 

process, it will most likely be done incrementally 

to ensure an orderly process. 

Since this process requires that a technician 

visit each location, agencies will 

be notified in small “waves” or groups of 

agents, probably averaging between 10 

and 20 at any one time. 

The whole process begins with an 

introductory letter that includes some 

basic details. The letter will be followed 

by links to a PowerPoint presentation 

and web videos to explain the process. It 

shows a timeline of almost 150+ days for 

conversion, but 30-45 days from start to 

finish is possible if you are prepared. 

The first step after the invitation is 

to register at the http://act.verizonbusiness.com 

Website. Verizon is a vendor 

that the company has contracted to 

handle the conversion process. This can 

be a one-stop shop for your technology 

needs, which is why they call it the 

“Single Point of Contact” or (SPOC). 

SPOC can arrange all aspects of your 

conversion, and its fees are displayed on 

the Website. You can also arrange parts 

of your conversion a la carte, or on your 

own. You are not required to buy your 

services through Verizon. The only part 

that Verizon has to handle is scheduling 

the date of your conversion and the initial 

technician visit. There is NO cost to 

you for the conversion visit; it is company 

paid. If you do purchase through Verizon, 

phone support for PC issues will be 

available on a fee-based, per call basis. 

The next step is to arrange for your 


high-speed Internet access connection, 

also known as “broadband.” You can do 

this either through SPOC or on your own. 

SPOC will charge $400 for the setup of the 

connection, plus $200 for equipment. You 

will pay Verizon up front. Once you register 

with Verizon, a $600 payment will be 

credited to your next month’s comp. You 

can register right away, and order the data 

line and/or equipment from them later, 

if you decide to go that way. If you want 

to work your own deal, you may find that 

your local telephone company, or cable Internet 

provider, can offer installation and 

service for less. You’ll still receive the $600 

and will be able to use it with your choice 

of provider. With Verizon, the circuit is 

DSL, or digital subscriber line. It will be 

a stable, always-on connection to the local 

telephone office with a fixed service bandwidth. 

It is similar to your existing Alstar 

circuit, but it won’t have anything to do 

with that service. The company’s existing 

circuit will be disconnected at some point, 

which is the company’s responsibility. 

If you decide on the ‘a la carte’ option, 

your costs will be whatever your service 

provider charges for installation and for 

service to your office, plus the cost of a 

router. Your provider may include a router 

or not. 

In my opinion, the existing circuit, 

or data line, for the present Alstar connection 

restricts much of our ability to 

work efficiently with Impact, Alstar, and 

the Web. This is because of its limited 

bandwidth and its use of proxy servers, 

etc. It is referred to as a T1 line. It has a 

small bandwidth of about 56k, which is 

comparable in speed to a ‘dial up’ connection. 

The minimum bandwidth you 

should expect from your new circuit is 

1.5mbps down and 384k up. This is actually 

about 25 times faster than the existing 

Alstar circuit, but is considered at 

the lower end of broadband connections. 

With cable or telephone service providers 

of Internet access, you’ll experience 

even higher bandwidth, equal to 4 or 5 

times the 1.5mbps rate. There is a difference 

in their connection performance 

because they can fluctuate, depending 

on demand. However, they are reliable 

at a higher speed. It can also be affected 

by service or power interruptions which 

may affect your business. Then again, 

if the electric power is off or the phone 

doesn’t work, who can process endorsements 

or quote anyway 

You should order your broadband 

connection as soon as possible following 

registration, as it could take two or three 

weeks for installation. It would be wise to 

start checking what your options are and 

how much they cost so you are able to 

make prudent decisions. As an example, 

last year I installed Internet cable, partly 

in anticipation of the company’s move 

and partly to use the Internet separately 

from Alstar. I pay $49.95 a month for 

small business Internet, which allows me 

to connect up to 5 PCs in my location. 

The service is 8mbps down and 768k up 

consistently. I also received free installation 

and no contract requirement. This 

will vary by market and competition. 

Each location will receive an annual 

allowance from the company equal to the 

lowest cost service based upon the DSL 

business line availability. Some offices have 

less service availability than other offices, 

resulting in higher costs. This is being addressed 

on an office-by-office basis. Based 

on the figures I’ve seen and heard, $72 a 

month seems to about the minimum cost 

for DSL, at least in my area. 

For your equipment, SPOC has a 

limited, but good, selection of Dell business 

computers, with or without monitors, 

and a Dell laptop. A nice part of 

the offer is the ability to lease the equipment 

of your choice for 12, 24, 36 or 48 

months. The SPOC offer through Verizon 

includes a 36 month next day warranty 

and parts service on both computer 

and monitor. In addition, the PCs are 

configured to company specifications. 

You will find the equipment allowance 

will more than likely cover the monthly 

lease cost for a configuration similar to 

what you currently have in your office, at 

least for 2008 and 2009. After that, there 

is no telling what your allowance will be 

because it will be tied to your RFG. 

Everyone has a brother, friend, client 

or neighbor ‘in the computer business.’ 

The equipment you obtain to run your 

agency is crucial, so I would be wary of 

trying to ‘save a few bucks’. The lease options 

from Verizon are attractive from a 

cash flow standpoint. They also exceed 

the minimum requirements of AOT 

and, in fact, allow for future computing 

requirements. You can shop Dell Small 

Business and others for comparison, but 

service, warranty and reliability should 

be at the top of your list. Do you really 

want to spend your business day troubleshooting 

a computer problem, replacing 

a hard drive or power supply, or removing 

a virus or spyware when you could be 

selling and servicing policies 

Minimum specifications should include 

1 gigabyte of RAM for XP Pro or 

2 gigabytes of RAM for VISTA, a hard 

drive of 80 gigabytes or larger, a Pentium 

class processor or equivalent, sound, an 


integrated or separate video card, a DVD/ 

CD rewriteable drive and a network interface. 

The Verizon monitor choices are all 

17 inch Dell LCDs. I highly recommend 

20 to 22 inch LCDs, which you can obtain 

from Dell directly or purchase a different 

brand from another vendor or local 

retailer. Minimum hardware and software 

requirements will be communicated to 

you early on. You need to pay attention 

to those details in order to successfully use 

the new Agency Gateway. 

You must use Windows VISTA Business, 

or Windows XP Pro as your operating 

system. Only Internet Explorer 6.0 

or 7.0 is enabled to access the Agency 

Gateway. Trying to use Vista Home, or 

XP Home, or any other operating system 

is not an option as they do not conform 

to company requirements. 

Once you have your data line installed 

and your computers delivered, you need 

to inform Verizon via email. Within a 

few days, you will be contacted to schedule 

your conversion day. If you used 

SPOC, they will automatically be notified 

of your equipment delivery. 

The technician is scheduled to arrive 

about 9 AM on the date of conversion. 

They have a one day schedule to convert 

each location. Since they only work on 

one Alstar at a time, you can continue to 

operate your office with minimal disruption. 

The other option is to forward your 

calls to the CIC for the day. 

The tech arrives with a blue notebook 

and a portable drive. He will sign 

on to the first Alstar with an administrative 

logon. The tech will then use commands 

to run scripts that will zip and 

copy the personal data that is housed on 

each computer. This would include any 

shortcuts, favorites or any personal data 

kept in Word or Excel, etc. This process 

should only take a few minutes. The 

next step is disconnecting the old workstation, 

setting it aside and placing the 

new AOT workstation where you want 

it. Then, the tech will hook up your new 

system to your new network cabling and 

start it up. Once logged in as an administrator, 

the scripts will copy your personal 

data to your new workstation and set it 

up for the new Agency Gateway access. 

Again, this should only take a few minutes. 

Once successfully completed, you 

will call the data center for a compatibility 

check. This will confirm that workstation 

is ready; that it meets minimum 

requirements and that the printers are set 

up under the new system. Then the tech 

will move onto the next Alstar workstation. 

You will begin to use the newly prepared 

AOT workstation while the next is 

being converted. Your new AOT workstation 

will function much the same as 

the Alstar just replaced. 

While the amount of time can vary 

depending on various factors, you should 

plan to spend about an hour and a half 

for each workstation conversion. As 

techs and back office personnel gain experience 

and information is shared, the 

process should begin to move faster. After 

the data has been transferred, each 

computer must then undergo a verified 

compatibility check. Once verified, the 

new system is ready to go and it’s time 

to sign on using your Support Staff and 

Agent IDs. To make sure all systems are 

a go, the tech will walk you through it 

the first time. 

The tech will not remove any existing 

equipment from your office. However, a 

few days prior to conversion, you will receive 

a packing box and prepaid label to 

send the Cisco router back to Verizon. A 

shipping company or messenger will contact 

you to pick up the IBM CPUs, CRT 

monitors and any other equipment you 

choose not to keep. All of this will be done 

after the conversion, hopefully a couple of 

days later. They will not take keyboards, 

mice, cables, speakers or any other equipment 

in your communication cabinet. 

Each day, you will log onto your computer. 

You will select a desktop shortcut 

that will take you to the Agency Gateway 

Portal. There you will login using your 

Agent or Staff ID and password. Then 

you will open the Alstar sessions, printer 

sessions, and IMPACT utilizing a network 

connectivity program called Citrix. 

Other short cuts will also utilize Citrix, 

such as regional sites, SMART reports 

and others. Citrix puts the workstation 

on the Allstate Intranet. Other program 

access is already Web enabled, such as 

accessallstate.com and mymail.allstate. 

com. Those will be accessible through any 

compatible Web browser. You will be able 

to have many programs of your choice 

open at any one time. If you want to listen 

to a Webcast or radio station online, you 

may. There will be no restrictions or proxy 

servers blocking your access to Webmail 

or Websites of your choice. 

Agencies will be given the option 

to retain the printers and any flat panel 

monitors previously leased. A 1099 for 

residual value will be issued for each one. 

Figures of $106 for printers and $76 for 

flat panel monitors were stated in my 

area, but that could vary. The phone systems 

are also being offered to agencies. 

The residual value for these is higher, 

stated at about $375 in my area. If kept, 

the system and its maintenance is now 

the individual agency’s responsibility. 

After conversion, the company will 

give you another pro-rated payment for 

cost of your equipment. This payment is 

supposed to show up in your compensation 

the month following conversion. You 

will learn from the original information 

sent to you that there will be a monthly 

allowance for the broadband connection, 

and an allowance for equipment. Based 

on the figures we were given, it appears 

that the allowance will be the same for 

agencies countrywide. There is a minimum 

monthly fee for broadband depending 

on what is available to your specific 

location. It was $72 per month here in 

my area. For equipment, we will receive 

$1740 plus forty cents for each casualty 

item based on the prior year-end CSRP 

report. While this is an annual amount, 

it will be pro-rated from your installation 

month to the end of the year. The following 

February, it will be re-calculated 

and will show up on your March 2009 

comp statement. 

Overall, I view this as a great positive 

for the agency force. Other than the 

cost-shifting perspective, agencies will 

benefit from faster connections, quicker 

response time and practically instant access 

to the Web. Plus, agents will no longer 

have to worry about using company 

equipment for personal use and will be 

able to install software of their choice. 

If the company continues to support the 

agency force, both with connection/service 

standards of the Gateway Portal, as 

well as financial support for the cost of 

ownership, I view it as a positive. However, 

only time will tell. 


Purchasing an Allstate agency is a 

tremendous decision, and knowing what 

your lender is looking for can help you 

secure the best financing terms available. 

Allstate agency loans are structured dif- 

8 P 

levels 

ferently than home mortgages so application 

requirements are very different. 

There are many ways in which you can 

begin preparing for a successful loan approval 

in advance of contacting a lender. 

1. Check your credit. As a general 

rule you should review your credit report 

at least once a year to make sure 

your identity has not been compromised. 

Additionally, you should check 

your credit report before applying for 

a loan. The Federal Trade Commission 

requires each of the three credit reporting 

agencies to provide consumers with 

a free copy of their credit report once 

each year. One central Website, approved 

by the FTC has been set up for 

this purpose. You can visit www.annualcreditreport.com, 

call 1-877-322-8228, 

or complete the Annual Credit Report 

Request Form and mail it to: Annual 

Credit Report Request Service, P.O. 

Box 105281, Atlanta, GA 30348-5281. 

The form can be downloaded from the 

FTC’s Web site at ftc.gov/credit. It’s 

difficult to believe that a $70 utility bill 

from a year ago would have much effect 

on your credit rating, but even a seemingly 

small item like this can drastically 

affect your score. Verifying that your 

balances, payment history, and social 

security number are all correct is crucial. 

Staying up-to-date with your credit rating 

will allow you to be prepared for 

any questions your lender may have and 

could ultimately save thousands of dollars 

by securing a lower interest rate. 

2. Avoid credit card debt. High 

business tips 

8 Tips for Securing Your 

Allstate Agency Loan 

BY PAUL CLARKE 

of credit card debt are viewed 

unfavorably from a lender’s perspective. 

It’s unfortunate when you have years of 

proven experience, a thriving agency, 

and an agency with a favorable cash 

flow, but are faced with a higher interest 

rate or possibly a declination due to 

high levels of credit card debt. Maintaining 

a revolving credit card balance 

below $25,000 will go a long way in 

helping secure a favorable loan. Lenders 

will likely have some tough questions if 

you let your balance increase much over 

this amount. Keeping your credit card 

balances below 30 percent of your available 

limit will also reflect well on your 

credit report. 

3. Be careful about what you buy. It 

may be tempting to purchase that new 

Mercedes, or a big boat, but the amount 

of debt you have incurred will directly affect 

the amount of money that you can 

borrow. When a lender analyzes your 

loan, they factor in all current obligations 

such as mortgage, automobile, and 

credit card payments. Lenders also like 

to see a net worth that is 25% or greater 

than the total loan request. You may have 

found the perfect agency to purchase, but 

if you have high living expense needs the 

agency simply may not be able to provide 

the cash flow that you need. 

4. Be fiscally responsible. Although 

there is no hard and fast rule that you 

must adhere to in regard to your personal 

finances, it is important to realize that, to 

some extent, your personal financial statement 

is interpreted as a reflection of your 

character. Individuals with responsible and 

well managed finances show that they 

have discipline, an important attribute in 

maintaining a successful agency. Bankers 

want to feel comfortable that, when they 

make a loan, they will receive timely payments 

and a responsible financial statement 

helps to create this assurance. 

5. Take your time: Purchasing an 

agency is a very big decision. Make 

sure that you have allowed yourself 

plenty of time to make the best choice 

for you and your family. Will you still be 

happy with your agency five, ten, or fifteen 

years down the road Eventually the 

honeymoon ends and the reality of your 

decision will set in, so be sure that you’re 

selecting the right agency. Ask yourself 

if you are buying this agency because 

it is really something that you want to 

do and will allow you to improve your 

quality of life. Are you considering this 

purchase just because the opportunity 

arose Perhaps you’ve found something 

in the perfect location, but it’s the 

wrong agency. It can be easy to get carried 

away and follow an impulse, so take 

time to step back and think about your 

decision. Most agents will only purchase 

one agency in their lifetime – so 

don’t rush into something that you may 

regret for years to come. 

6. Understand the business. Borrowing 

money for an Allstate agency 

is very different than securing a home 

mortgage loan. When you purchase an 

Allstate agency the lender is extending 

you a large amount of money without 

any tangible assets as collateral. Instead, 

the bank is lending to you based on the 

qualifications of your business skill and 

ownership ability. Familiarizing yourself 

with the business operations and 

the numbers involved with the agency 

you are looking to purchase creates a 

very good impression with a lender. It is 

a good idea to keep in mind some important 

benchmarks that affect the RFG 


onus from Allstate, such as the rate of 

retention, policy growth, and profitability. 

A rate of retention above 83% is the 

standard, with 88% being above average. 

It is important to at least maintain the 

policy growth each year, as well as maintaining 

a loss ratio below 60%. Having a 

business plan shows you have put some 

thought into this purchase and that you 

have a plan to succeed. Important things 

to address include why you have chosen 

this specific book of business, how you 

plan to run the agency, any changes you 

might make, and why you know that you 

will succeed. When you present a strong 

argument to a lender, you are more likely 

to secure approval of a loan with attractive 

terms. 

7. Revamp your resume. You are 

requesting a large amount of money 

based upon your skill and knowledge, so 

showing a lender that you have previous 

experience and expertise is a significant 

key to gaining approval for the loan you 

want. Typically, at least two years of insurance 

experience is required to obtain 

loan approval, but if you show that you 

have solid business experience and are 

Napaa Ad July 2007 7/26/07 3:05 PM Page 1 

able and willing to make a down payment 

oftentimes a loan approval can still 

be acquired. It is always good to list past 

education, employment, and other accomplishments; 

but it’s also important 

to relate specific accomplishments and 

how they have prepared you for future 

success as an Allstate agent. Maybe you 

have exceeded performance expectations, 

been able to grow an agency despite 

tough market conditions, consistently 

performed at a high level, or excelled in 

customer service. Whatever it may be - 

make sure to include these achievements 

on your resume as they will help a lender 

to understand why you are a good candidate 

for a loan. 

8. Be prepared for the loan process. 

The loan application process does not 

have to be stressful or difficult. However, 

you are requesting a large sum of money 

without physical collateral so it does take 

time and dedication on your part to secure 

favorable terms. Submit a complete and organized 

loan package to ensure that you 

will receive approval as quickly as possible. 

Once you have returned an accepted and 

signed commitment letter to your lender, 

you have passed the negotiation stage and 

the closing process begins. Closing is all 

about communication and getting things 

completed quickly and efficiently. If you 

are willing to put in a little bit of work, 

you can have your loan closed in as little 

as 10 days. While taking a vacation might 

seem like a good idea before you settle 

into a newly acquired business, you might 

want to think twice about it. Taking time 

off can greatly hinder the closing process 

if you are out of touch and unable to complete 

the needed documents. 

As a borrower, it is not easy to know 

exactly what a lender is looking for in a 

financing opportunity. Hopefully this 

information is helpful and has provided 

you with a little insight on how to secure 

the best loan terms available. With 

a little attention to detail, you will be in 

great shape the next time you apply for 

an agency loan! 

Paul Clarke is Chief Operating Officer of 

Professional Practice Capital. Paul and his 

staff can be contacted at (800) 456-2779 

or you can visit his company on the web at 

www.ppcloan.com 

RHINOTEK 

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• A knowledgeable sales team focused on your growth through savings 

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www.rhinotek.com/napaa.htm 

Rhino Green 

Doing our part to 

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We Finance Allstate Agencies! 

Paul Clarke 

Chief Operating Officer 

Tabitha Chisum 

Sr. Closing Coordinator 

Allstate Specialist 

Steven Kemper 

Relationship Manager 


Ashley Marcelle 

Closing Coordinator 


Our Staff is 

Dedicated to 

Serving You! 

Dustin Mangone 



Kyle Crawford 



“PPC has been a huge asset to my career and business. Not only have they provided a 

hassle-free initial loan to fund my acquisition, they have also done a tremendous job 

with ongoing communication as well as recognizing me as a valued client. I have sent 

other buyers to them and I plan to use their services should I acquire a 2nd location. 

PPC understands how to value an agency, what personal attributes each individual 

brings to the table, and how to leverage multiple banks to ensure the right financing 

option for the borrower.” – Adam Pisani, Allstate Agent, Sugarland, TX 

With the current lending climate you may notice some companies backing out of 

the Allstate market. In these unsure times you can rely on Professional Practice 

Capital to stick to our commitments. Our loans are bank funded and we will 

continue to lend to agents nationwide. If you are left in a bind by another lender - 

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800.456.2779 

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info@ppcloan.com

technology 

Allstate Agents Have a Choice 

BY BRYAN GERMAN 

Some Allstate agents know about it. 

Some don’t. Some Allstate agents are 

concerned about it. Some aren’t. So what 

are we talking about While the topic of 

this article is centered around Allstate’s 

broad new initiative called “New Roads 

to Growth,” we will be focused primarily 

on what the company calls “Agent Choice 

Technology” (ACT) and “Agent Owned 

Technology” (AOT). These terms actually 

appear to be synonymous and are 

used interchangeably with each other. 

The bottom line is that agency owners 

will now have the ability to make their 

own technology choices, subject to some 

minimum specifications set by Allstate. 

This means agents will be able to buy or 

lease the equipment that best suits their 

needs and hire service providers that offer 

the best options for their agencies. 

“New Roads to Growth,” fondly 

known as NRG, was designed by Allstate, 

at least in part, to rid itself of the 

ownership, maintenance and support of 

its agents’ computer (data), telephone 

(voice) and, in some cases, other communication 

systems. Currently, agents 

are using equipment that is provided to 

them at no cost by Allstate via a long 

term lease with IBM. The company has 

chosen not to continue providing this 

service. Although this decision changes 

the way agencies have traditionally done 

business, it is a great opportunity to replace 

outdated equipment and take advantage 

of the newer technologies that 

are now available to small and mediumsize 

businesses. 

According to information currently 

available, NRG, including its AOT/ 

ACT component, will be rolled out to 

all agencies in stages. This roll out will 

take approximately two years, bringing 

an end to the company-paid technology 

and tech support that Allstate agents 

have enjoyed for more than 20 years. 

Use of the company’s current proprietary 

software and corporate support of it will 

continue as it presently exists. The NRG 

roll out is currently underway in two regions 

of the country. 

So what assistance is available to 

agency owners as they struggle to learn 

more about the new technologies available 

to them First, Allstate will provide 

financial allowances to help ease 

the transition. This financial assistance 

has been designed to help agencies with 

what many agents perceive as a major 

agency expense. Furthermore, Allstate 

has negotiated a package of replacement 

products with the well-known communication 

giant Verizon. 

It is important to remember that 

agency owners can make their own choices, 

which is why the company coined the 

phrase “Agent Choice Technology,” or 

ACT. Agents are not required to use the 

Verizon solution. The company simply 

wanted to provide a one-stop solution 

for those agencies who want a quick fix. 

There are a number of other companies, 

however, offering solutions that may be 

both more cost-effective and better suited 

for individual agency owners. A number 

of these alternatives to Verizon have 

demonstrated their support for NAPAA 

and the agents of Allstate by advertising 

in Exclusivefocus magazine, on the 

NAPAA Website, www.napaausa.org, 

and in other NAPAA publications. 

These companies include, among others, 

Expetec Technology Services, Inc., 

Sprint and Holland Computer. These 

companies are vying for your business 

and have spent considerable time and effort 

putting attractive packages together. 

The ability to choose your own voice 

and data system is critical because they 

are the heart and soul of your business. 

Price, availability of local service, leasing 

programs and customized hardware are 

issues each agency owner must consider 

as they review their options. 

Quite possibly the most important 

consideration in the migration to NRG 

is the choice as to whether or not to take 

advantage of the exciting new technology 

that will allow agents to run their 

business more efficiently. Making the 

correct investment in technology today 

may dramatically improve agent’s bottom 

line for years to come. 

VOIP – WHAT IS THAT 

VoIP (an internet telephone) has 

many advantages over regular phone 

service. Based on current market trends, 

it is inevitable that VoIP will eventually 

replace traditional phone service – in 

fact, phone companies are already taking 

advantage of the technology to offer 

cheaper long distance rates. 


One of the main advantages of VoIP 

is its low cost. If agents have a fast Internet 

connection (DSL or cable) they can 

make PC-to-PC phone calls anywhere 

in the world for FREE. If they wish to 

make a PC-to-phone connection, however, 

there's usually a charge but it’s 

probably much cheaper than your regular 

phone service. 

Agents may also sign up with a VoIP 

service provider that charges a monthly 

fee in return for unlimited calls within 

a certain geographic area. For example, 

some VoIP services in the United States 

allow callers to call anywhere in North 

America at no extra charge. Overseas calls 

are charged at a relatively small rate. 

Another advantage of VoIP is portability. 

Agents can make and receive 

phone calls wherever there is a broadband 

connection simply by signing in to 

their VoIP account. This makes VoIP as 

convenient as e-mail. If travelling, simply 

pack a headset or Internet phone and 

an agent can talk to family or business 

associates for next to nothing. 

Phone-to-phone VoIP is also portable. 

When signing up with a VoIP 

service provider, the Internet phone or 

adaptor that is used with that service is 

assigned a unique number. This 'phone 

number' remains valid even if VoIP 

service is in Cleveland and the agent is 

connected to the Internet in Seattle. An 

Internet phone is small and light enough 

to take with you anywhere. Simply plug 

it into a broadband connection anywhere 

in the world and the caller can make and 

receive calls just as though they were in 

their own home or office. 

There are many other features that 

make VoIP attractive. Call forwarding, 

call waiting, voicemail, caller ID and 

three-way calling are some of the many 

services included with Internet telephone 

at no extra charge. Agents may 

also send data such as pictures and documents 

at the same time they are talking 

on the phone. 

With the NRG program, Allstate 

Agents are also faced with supplying their 

own computer equipment/hardware. The 

Verizon offering has Dell computers as its 

hardware vendor. To some, Dell may have 

a reputation of providing a great product 

at an attractive price. To others, the computer 

giant has been a source of constant 

problems. One question agents need to 

ask is “what happens when I need help” 

Are you prepared to sit on the line with 

tech support while they work to resolve 

your issue Wouldn’t it be great to be able 

to contact a local provider when help is 

needed Agents are encouraged to shop 

around to locate a computer hardware 

vendor that will work with them to determine 

exactly what their business needs are 

and one that will be there for them long 

after the purchase of equipment. 

MSP – WHAT IS THAT 

Understanding HOW a supplier supports 

their customers is as important as 

understanding WHO will support them. 

Will the company only “show-up” when 

you call or do they have a program that 

provides unlimited support for a fixed 

monthly rate A Managed Service Provider 

(MSP) offers just that. An MSP 

utilizes software to manage businesses 

computer needs. These remote tools allow 

the MSP to virtually manage a company’s 

entire network operations offsite without 

ever having to step foot into the company. 

This innovative technology allows Allstate 

agents to focus on what they do best 

– selling insurance - and keeps the agent’s 

IT expense to a minimum. 

For many agents, the process of converting 

from a company-owned and 

supported communications system may 

seem an overwhelming and daunting 

task. However, it doesn’t have to be that 

way. Many companies, such as those 

listed above, are putting together quality 

product lines especially designed for 

Allstate agents. Companies providing 

quality local service can be an enormous 

help to agents who are trying to make 

sense out of the technology conundrum. 

These companies are more apt to be 

able to demonstrate or fully explain the 

available options and recommend any 

appropriate upgrades. Some of these 

same companies are Managed Service 

Providers that can remotely and proactively 

support your system. Just remember, 

you DO have a choice!! 

Bryan German is the Operations Manager 

for Expetec Technology Services, a Computer 

Hardware and Remote Managed 

Services Provider franchise. If you have 

questions regarding this article or would 

like additional information, please contact 

Bryan at bgerman@expetec.com or 888- 

297-2292 Ext. 3016. 

NRG, A Better Choice. 

See how effortless it is to fully utilize the power of your technology. 

Expetec Technology Services is ready to help Allstate agents with: 

New telephone equipment 

New computer hardware - leases 

available 

Remote computer management 

(see article in this publication) 

A FREE Technology Assessment 

Our Experts. Your Technology. 

Contact Bryan German 

888-209-3954 

www.expetec.com 

Locations throughout U.S. and Canada 


June 10, 2008 

Ladies and Gentlemen of the Allstate Board of Directors: 

OPEN LETTER TO 

ALLSTATE BOARD OF 

DIRECTORS 

In the last issue of Exclusivefocus magazine we printed a letter of concern to Allstate CEO Tom Wilson. The letter, dated 

August 13, 2007, was written by Simon Ortiz, an Allstate agent from New Mexico. In his letter Mr. Ortiz expressed his displeasure 

over some of the company’s well-intentioned, but impractical corporate policies that inadvertently lead to customer 

dissatisfaction and agent frustration. The letter describes, among other things, his experience with the company’s decision to 

‘seed’ more than 300 Silver City customer accounts to newer Allstate agents in Albuquerque, some 250 miles away. One can 

only imagine how these customers must have felt when they learned they no longer had a local agent. 

While this is only one of the issues raised in the Ortiz letter, it typifies the kind of decision-making that defies logic. For 

your convenience, the letter has been reprinted in this issue of Exclusivefocus magazine. 

The response to Ortiz’s letter has been overwhelming. NAPAA has received many telephone calls, emails and letters in 

support of Mr. Ortiz. The issues raised by Mr. Ortiz clearly struck a chord among both new agents and seasoned veterans. 

We have printed a sampling of the letters we have received in the Letters to NAPAA section of this publication. 

Because of this resounding response, NAPAA has chosen to appeal directly to you, the Allstate Board of Directors. Outside 

of Mr. Wilson, it is our concern that most, if not all, members of the board are routinely ‘left out of the loop’ on certain 

matters that should merit its full attention. NAPAA believes that corporate policies should be designed ensure win-win-win 

results. If the customer or the agent suffers because of bad policy making, there’s a good chance they will leave and go elsewhere. 

When they go elsewhere, the shareholder suffers. 

This unorthodox plea to you is not for the benefit of NAPAA, it is for the benefit of Allstate, its shareholders, its agents 

and its policyholders. We believe the company can ill afford more customer or agent defections. We urge you to recommend 

that the company look at its existing policies and procedures from a bottom-up perspective. Further, we strongly disagree 

with the philosophy that agents ‘don’t know anything.’ We encourage you to consider allowing more unbridled participation 

from both agency owners and NAPAA in these discussions. This suggestion should not be construed as an ‘us versus them’ 

exercise. On the contrary, we believe that by working together, we can create sensible, carefully crafted solutions that will help 

retain more policyholders while stemming agent attrition. 

Current company policies are causing growing agent unrest that, if left unchecked will needlessly result in an exodus of 

Allstate agents and policyholders – ultimately affecting shareholder value. We fear and sense that this exodus has begun. 

It is reasonable to assume that Allstate policy makers have planned all along to cull non-performing agents from the 

agency force. However, Allstate’s indiscriminate policies are hurting even the most loyal and consistent producers. If a tree is 

to flourish, its branches must be carefully and judiciously pruned, not haphazardly lopped off. 

We urge you to learn more about company policies such as those discussed in the accompanying letter. We call upon you 

to randomly call or visit agencies and ask questions. To obtain a representative sample of the agency force, we suggest that 

these agencies be chosen independently by the board, without direction from company management. Ask about the agent’s 

shrinking resources, decreasing commissions, increasing production requirements and how company programs or policies can 

be improved. There can be no doubt that continuing to ignore these issues will only serve to make matters worse. 

NAPAA stands ready to help develop and facilitate this process. 

Respectfully submitted, 

Jim Fish 

Executive Director 

National Association of Professional Allstate Agents, Inc. 

(877) 269-3474 


The following letter is being reprinted for the Allstate Board of Directors 

An Unedited Letter to Tom Wilson 

August 13, 2007 

Tom Wilson, CEO 

Allstate Insurance Company 

2775 Sanders Rd 

Northbrook, IL 60062 

Dear Mr. Wilson, 

In June 2002, as a baby boomer, I considered the purchase 

of my current book of business to be my last and my best career 

choice. As I start my 6 th year as an Allstate agent, my usual 

cheerful enthusiasm and bright outlook is dampened by Allstate’s 

inflexible, unfair policies and its’ unilateral interpretation 

of what is a business relationship with me, an exclusive agent. I 

am not alone in this. 

I am proud of my role and of my abilities as an agent. I take 

very seriously my obligation to protect the interests of Allstate, 

as I am serious about my obligations to serve Allstate’s and my 

client’s needs. With the utmost confidence and integrity, I consider 

myself to be the consummate agent. I believe that my efforts 

must benefit Allstate, its clients and me, but Allstate lacks the 

soul to reciprocate in this sentiment. I have experienced Allstate’s 

corporate indifferences and have witnessed its sole interest in 

benefiting itself at the expense of the agent and the client. “Let 

them eat cake” is apropos. 

Business people understand the need for policies. We all 

know they are needed. Policies, like traffic controls, provide order 

where none would exist. However, in a business relationship, 

policies written to benefit only those who write them usurp the 

relationship, resulting in business servitude. I hope this is not 

Allstate’s corporate strategy or vision and neither do I advocate 

carte blanche for agents. 

My agency is in Silver City, NM, a small, rural, copper 

mining dependent community recovering from several years of 

depressed economic conditions. Growth opportunities come 

from taking market share from the competition and from “big 

city” retirees relocating into the community. Growth from the 

local populace is difficult at best since local school enrollment 

it still below what it was four years ago. Local schools continue 

to lose state funding because of shrinking enrollment. In 

the spring of 2006, there were two exclusive agents and one 

independent agency. 

The other exclusive agent, unable to sell his BOB, terminated 

his Allstate contract and closed his office on Friday May 

26, 2006 following a one-year effort to sell his 700+ policies 

BOB. Even the Phoenix regional office assisted in the sales efforts, 

without success. 

I was the only qualified, able and willing buyer but because 

of Allstate’s policy regarding ‘points’, I did not qualify, therefore 

I could not buy – no discussion, no exception. I then became the 

non-compensated service provider to the same 700+ policy book 

of business I was told I could not buy. No concern was shown nor 

expressed for either the disenfranchised policyholders or for me, 

an overwhelmed Allstate exclusive agent. Allstate’s indifference 

and unfairness to our clients and me is incomprehensible. I was 

reminded, however, that under my Allstate contract, I was obligated 

to provide service to any Allstate customer. 

There was no notice of closure given to the 700+ policyholders 

and on Monday May 29, 2006, angry customers inundated 

my office demanding to know why they were not notified. It 

became my unpleasant task to soothe confused and angry clients 

demanding service and demanding to know who their 

agent would be, as if I or they had a choice. In a small, rural 

town, other than my agency, they have nowhere else to go, and 

certainly not the independent agency. Not surprisingly, Allstate 

clients seem to prefer the services rendered by exclusive agents. 

In Silver City, the nearest Allstate exclusive agents are in Las 

Cruces, NM, a 2-hour drive. My spirit was broken and my resources 

overrun but Allstate’s ironclad policy remained intact. 

The inequities do not end here; Allstate rolls up the policy, 

knocks you down and then kicks you. Other than closing my 

own doors in protest, there was nothing I could do. No one in 

Allstate has the authority or responsibility to care or act if an 

agent is drowning, unless of course, the agent happens to be 

drowning out of compliance or is not meeting ‘expected results.’ 

And if an agent does not meet ‘expected results’, Allstate reacts 

with an unmistakable, unmitigated force of action. 

In matters such as mine, Allstate’s regional management has 

little, if any, authority; or they elect to do nothing, or they simply 

do not care. During my most agonizing periods, the only 

helping hand that I had was Eladio Muniz, NM TDL. I believe 

that he tried to minimize Allstate’s inequities and only the efforts 

of Mr. Muniz personified Allstate. I further believe that 

Mr. Muniz had to ‘rock the boat’ to get even minor concessions 


on my behalf. Allstate did offer to pay for the transfer of the 

closed agent’s phone line for three months. 

Sometime in late August 2006, unannounced, I was sent a list 

of approximately 400 policies that had been ‘seeded’ to me. I was 

notified that the seeded policies were at a 6% commission and 

represented an approximate monthly premium total of $25,000, 

making my monthly compensation $1,500. However, this compensation 

followed the policy renewal, which meant that I would 

have to wait one year to realize the full amount $1,500. 

The reduced commissions from the ‘seeded’ policies are not 

sufficient to provide the service level Allstate expects from their 

agents, much less to meet expected results. To have to provide 

service to the 700+ policies with an insufficient income is a 

travesty and is an insult to anyone in business. 

The even bigger travesty is that the balance of the 700+ policies 

(some 300+) was seeded to new agents in the Albuquerque 

area. Not only was (and still am) I still servicing the entire ‘old 

book’, I must now spend additional time and resources to ‘OL- 

BOB’ the clients seeded elsewhere when they come in to my 

office. It is folly to think that any clients in Silver City will 

seek their service needs other than in my office. I continue to 

be a ‘baby sitter’ and listening post for those clients who remain 

angry that they are now receiving their policies and correspondence 

from ‘some agent in Albuquerque’, a 5-hour drive 

away. My motivation to provide daily, consistent smiling service 

is tested and leaves little imagination, energy and resources to 

plan for Allstate’s unchallengeable “expected results.” 

The unknown and immeasurable damage to the Allstate 

brand in small town Silver City concerns me gravely because 

I am that image and am the only Allstate face here. Do not 

think for a moment that the independent agency’s service 

level or commitment to Allstate’s clients compares to that of 

my agency. What Allstate does or does not reflects on my integrity 

and me. I have received embarrassing calls from my 

competitors asking me what on earth Allstate is doing. In the 

same sentence, they thank me for sending them so many new 

clients. There are no secrets in small towns and small markets. 

One angry customer is bad; many are devastating. Allstate, 

however, cares only that my retention rate increases and penalizes 

me if it does not! 

I am stuck in a service and survival mode. Too bad I cannot be 

paid in full for the 700+ policies – that would have been the fair 

thing for Allstate to allow. I could and should have purchased the 

book and we wouldn’t be having this conversation and the clients 

and me would be happy and content. Plus, it would have given 

me the resources to provide for growth; superior service, retention 

efforts and increased market share in Silver City. This would have 

been a win-win-win situation. Instead, I lose and Allstate and a 

few new agents in Albuquerque profit from my agency’s efforts. 

Mr. Wilson, it is evident that these matters are insignificant 

and unimportant to Allstate. I do not believe that you possess this 

indifference because a couple of years ago when I voiced concerns 

over one of Allstate’s New Mexico policies, you were the only 

executive that responded, twice. I am hoping that you care about 

the continuing decline of the agent’s sentiment towards Allstate. 

Few and fewer agents believe “…that Allstate is taking appropriate 

steps to improve the business relationship with agents.” This 

decline is also reflected in other critical concerns. Other agents 

with which I have shared my recent experiences are astounded, 

shocked and angered, but not surprised. This can and must be 

reversed. Allstate need not rewrite its articles of incorporation – it 

needs only to redefine fairness and needs to act. Allstate stands to 

gain so much by giving up so little. 

A recent letter entitled “Our shared objectives” from George 

Ruebenson laments Allstate’s low market share of 10%, virtually 

unchanged for 36 years. His letter speaks of challenges, optimism 

and opportunities yet fails to address Allstate’s deteriorating 

relationship and one-sided affair with its agents. Everyone 

reads about this, knows about it but no one talks about it. I 

submit that to increase Allstate’s market share, the agent’s position 

on the corporate totem pole must be scraped from the bottom 

and elevated to somewhere close to that of the shareholder, 

where it was years ago. When people buy Allstate, they also buy 

me and from me – I am the Allstate face in Silver City they will 

get to know and trust. With new and exciting initiatives such as 

NRG and RFG, why not also improve the way you treat others 

and me Allstate stands to gain so much by giving up so little. 

Allstate must abolish the archaic, prohibitive, punitive policies 

that I and many other agents have had (and continue) to endure. 

Make policies equitable and truly bilateral, and above all, fair. What 

is good for the goose is good for the gander. What Allstate did to 

me served no purpose other than to disenfranchise loyal Allstate 

clients, hurt an exclusive agent, benefit the competition and tarnish 

a brand name. This is stuff you read about in graduate school case 

studies. Allstate has proven that their policies are more important 

than is a working, proactive and bilateral business relationship with 

their agents, whatever the cost. Mr. Wilson, change this because 

you have an obligation and you have the authority. You do this and 

you will find in us the key to increasing market share. 

Please do not sweep me under the rug and do not ignore 

what happened to me and continues happening to others. It is 

all too frequent and in too many places. I am copying the NAB 

members in hopes that this subject, long considered taboo, be 

openly and honestly discussed in its proper forum. I hope to 

hear from you. We can accomplish far more as partners than we 

can as adversaries! 

Sincerely, 

Simon G Ortiz 

Allstate Exclusive Agent 59379 


IIn a previous edition of Exclusivefocus, 

“Planning Your Future” discussed forecasting, 

a sub-topic of “Managing Your 

Business,” one of four broad topics of 

importance to business owners, according 

to the SBA Website, www.sba.gov/smallbusinessplanner/index.html. 

This issue examines 

exit strategy, explores the need for 

agency owners to formulate one, looks at 

some of its concepts, and provides some 

ideas that may be useful to readers. 

An exit strategy is too frequently overlooked 

by many businesses, ranging from 

sole proprietorships, to partnerships, to large 

corporations. Failure to plan is an invitation 

for the law of unintended consequences to 

play havoc with an owner’s investments of 

money, time and toil in building their business 

expended perhaps over decades. Cherished 

dreams face destruction. Financial 

security for retirement is jeopardized. 

The need for such a strategy must not 

be underestimated. Sooner or later, the 

time to exit will arrive whether planned 

for or not. In its simplest terms, an exit 

strategy is a plan for a certain, future 

event, though its arrival date may not 

be known. The only question is whether 

or not preparations for that event are in 

feature 

Exit Strategy© 

RICHARD LARKIN, CLU 

place, for its occurrence is not a matter of 

if, but of when. 

The recent events in Canada and the 

battle in Florida between Allstate and the 

Florida Office of Insurance Regulation underscore 

the suddenness with which need 

for an exit strategy can arise. The thousands 

of letters currently being mailed or hand delivered 

to agents concerning their deficiency 

in AFS or P&C production clearly emphasizes 

the need to begin planning now. 

On an individual level, it may be viewed 

somewhat as analogous to the drafting of 

one’s will, instructions to those left behind 

should the author be unable to execute his 

or her desires. At the corporate level, it is 

planning for the orderly replacement of 

a corporate chieftain, the selection and 

grooming of a new leader. 

It is not unusual for owners of small 

businesses to have no exit strategy in place 

when the need suddenly arises, such as 

death, disability or termination of a contract 

with a principal. Even when events 

appear on the horizon (think ‘deficiency’ 

letter) suggesting the time to move on is 

approaching sooner rather than later, the 

need to plan is sometimes ignored. 

Overcome with grief, a surviving 

spouse is usually ill-equipped to handle 

the resulting consequences accompanying 

sudden death of their partner: the 

possibility of loss of income, minor children 

whose future may be charted by a 

court, the prospects of a loss of privacy, 

and undue expenses and taxes. Add in 

the decisions necessary to close down a 

business and the burden is made greater. 

No business, irrespective of entity 

type, is immune from the accompanying 

turmoil. The potential is unlimited 

for internal strife and infighting over 

the selection of a replacement, whether 

by bickering heirs or by unscrupulous 

board members. The value of the business 

may suffer greatly, providing rivals 

with unique opportunities not otherwise 

available in a competitive environment. 

The list is endless. So it is critical that 

agency owners acknowledge their need 

to formulate their exit strategy and not 

underestimate the imperative to do so. 

Once having committed to developing 

an exit strategy, the next phase 

becomes one of tactics. What steps are 

required for successful planning What 

resources are available to assist you How 

long will it take Are there cost considerations, 

and if so, how much 

Rule 1. Disclose your intentions to sell 

only those with whom you would trust with 

your life, and then only after you master the 

steps required for successful planning. 

For obvious reasons, you must make 

a ruthlessly objective assessment of the 

value of your agency. To do less is to lay 

a weak foundation for all that will follow. 

Therefore, ask yourself: what would 

you be willing to pay if you were the 

buyer, and why Your answers should be 

in written form, such as a confidential 

memo to yourself, which will prove to be 

invaluable as you immerse yourself in the 

process, permitting you to re-examine 


and better refine your analysis. 

If you have a spouse, involve him or 

her in the process. A trusted devil’s advocate 

can be an invaluable ally, forcing 

you to sharpen your analytical pencil, 

invoking a different perspective, offering 

up new ideas and different insights. All 

will prove to be beneficial. 

Thoroughly examine your retention 

ratio over as long a period of time. The 

most recent five years should be a minimum. 

The more the better. Why Because 

the buyer’s primary focus will likely be on 

the reliability and stability of the agency’s 

stream of renewal income. After all, that 

is primarily what they are purchasing. 

Visit the Small Business Administration’s 

Website, if only to familiarize 

yourself with the process. Go to the section 

labeled ‘Getting Out.’ Here you will 

find a menu of important planning topics. 

Select those subjects most appropriate to 

your specific situation and begin your education. 

The quality of the decisions you 

will have to make will be commensurate 

with the knowledge you acquire. Understand 

that the SBA Website is merely the 

first step in your quest for exit strategy 

knowledge, not a final destination. 

The most important professional 

guide (there will be others) is an attorney. 

Select wisely. Interview several. If you can, 

find a lawyer who has represented other 

agents, either as a buyer or seller. Consider 

that individual as a possible candidate to 

represent you. In any case, know that the 

better informed you are about the sale 

process, the better you are able to evaluate 

their capability to represent you. 

Another trusted source of help includes 

SBA-affiliated business counselors 

in your area from SCORE and 

Small Business Development Centers 

(SBDCs). It is more than just important 

to know how, when, and how much to 

sell your business for. There is a big difference 

between properly preparing your 

assets to be sold than putting a ‘for sale’ 

sign on the front door. Knowing the difference 

can pay handsome dividends. 

Careful succession planning is especially 

important for family-owned businesses. 

That is why the second most important 

professional guide will be an accountant 

or CPA. Choose wisely. Ensure that their 

credentials exceed the minimums required 

of their profession. Determine if they participate 

in and are current with the continuing 

educational requirements. 

Give serious consideration to whether 

or not they are a member of the National 

Association of Enrolled Agents (NAEA), 

a national association of independent, licensed 

tax professionals. Members must 

complete a minimum of 30 hours annually 

of continuing education encompassing 

interpretation, application and administration 

of federal and state tax laws in order 

to maintain membership in NAEA. 

This brings me to Runningclock@aol. 

com. I have only the deepest respect and 

highest admiration for Ron Harper and his 

tireless (and sometimes thankless) devotion 

to helping Allstate agents. Second only to 

NAPAA’s Website (www.napaausa.org), his 

newspaper provides a plethora of information 

submitted by agency owners throughout 

the country concerning Allstate’s actions, 

particularly those which may first seem to be 

innocuous, much like the removal of TPP 

provisions in the latest agency contract (relegated 

to a manual where its elimination may 

be overlooked), or an isolated event in one 

area which later may prove to be a covert pilot 

program later to be expanded nationally. 

Personally, I believe it is must reading for all 

agency owners. 

However, I am aghast at the number 

of agents who over the years have written 

to him for information relative to the 

tax consequences of selling their books 

of business, or that their accountant has 

(heaven forbid) has told them that the 

proceeds are subject to ordinary income. 

Unfortunately, these agents appear to lack 

the initiative to plot an exit strategy and a 

willingness to avoid the attendant expenses 

essential to a successful outcome. 

After acquiring an understanding of the 

essential components of an exit strategy, 

your next step should be to begin drafting 

what might be termed “Agreements in 

Principal”, a document whose purpose is 

to establish the conditions of the seller and 

their acceptance by the buyer. Recognize 

this is a working document subject to revisions 

throughout the negotiation process. 

The agreement should define what is 

being sold: your book of business. Everything 

else, such as office equipment, the 

assumption of an existing lease, or the 

purchase of the agency premises, all must 

be treated separately. The need to distinguish 

your book of business from other 

assets that you may be transferring or selling 

is to ensure that the tax treatment of 

your book of business will be treated as a 

capital gain. Carefully examine Allstate’s 

definition of your book of business and 

consider incorporating it in the agreement. 

(Example: Seller will transfer and assign to 

purchaser their transferable economic interest 

as defined in the Allstate EA Manual.) 

Having completed what may be 

termed the asset section of the agreement, 

define the conditions of the sale. What 

amount is acceptable as a down payment 

What amount of the down payment will 


e forfeited should the purchaser fail to 

comply on a timely basis with all of responsibilities 

required of them, including 

those required by Allstate 

Will it be an all cash transaction, or 

financed by a lender Will you take back 

a note If so, what are the terms: rate of 

interest, number of years and frequency of 

payments In the event of default, what 

enforcement/penalty options exist should 

they become necessary to invoke 

Require the buyer to purchase and pay 

for a life insurance policy on himself or herself, 

naming you as both the owner and beneficiary. 

The face amount should be equal to 

the amount of any note you take back. 

What happens in the event the purchaser 

is later terminated by Allstate 

before all debt to you has been satisfied 

The answer to these questions must be 

determined by you before you begin your 

negotiations with the buyer. 

Rule 2. Your agreement in principal must 

contain a carefully worded confidentiality 

clause which includes a monetary penalty in 

the event of failure to comply with it. 

When you have completed your agreement 

in principal, obtain the signature of 

your prospective purchaser as respects the 

confidentiality clause section. Only then 

provide them with a copy of the agreement. 

After that, the negotiations can begin as 

the two of you carefully review and agree to 

it, section by section. Anticipate the buyer 

may counter some of the provisions. That 

is to be expected. Likely, they will wish to 

consult with their attorney. This is prudent 

for them to do and will fall under the attorney/client 

privilege, thereby preserving 

the confidentiality clause. 

Establish a defined period of time with 

which the purchaser must get back to you. 

You must require a deposit, say $5,000. 

Consider the deposit as the price of admission 

to your agreement in principal. 

This deposit may be refunded in the event 

an agreement to purchase is not reached. 

However, the provisions and penalty in 

the confidential clause should remain in 

effect for as long a period of time your attorney 

determines to be legal. 

When both parties reach final agreement, 

your attorney will convert it to one 

or more contracts to be signed by you 

and the buyer. 

Rule 3. Deliver the sale package including 

your letter of intent along with form R4018, 

if applicable, to your Regional Distribution 

Leader. Be sure to send a copy to the Regional 

Vice President. They have the authority 

to approve it or disprove it. Under 

no circumstances show it to your immediate 

manager or anyone else. They will learn 

about it from their superior soon enough. 

Too many stories abound about agents 

who have submitted their sale package to 

someone other than the Regional Vice 

President and have been told that it was 

not approved for one or more reasons, or 

no reason at all. Curiously, somewhat later, 

a new buyer often appears, ready, willing 

and able to purchase, claiming prior 

approval, but at a much lower price. 

Rule 4. Accept no verbal statement from 

anyone that your potential buyer does not meet 

Allstate’s requirements. If you are told verbally 

that your buyer doesn’t qualify, you should 

immediately send a letter by certified mail to 

the RVP. The letter should include the name 

of the person who said your potential buyer 

was not qualified. It should also request an 

approval or denial in writing for the buyer 

in question. Reiterate the reasons provided 

in your letter of intent as to why you believe 

your buyer is an excellent candidate for approval. 

If this does not produce a written 

response, send another request by certified 

SERVING NAPAA AND THE AGENTS OF ALLSTATE SINCE 2000 

DIRK A. BEAMER, ATTORNEY 

RECIPIENT OF THE 

NAPAA PRESIDENTʼS AWARD 

FOR EXEMPLARY 

AND 

UNSELFISH DEDICATION 

TO THE AGENTS OF ALLSTATE 

WRIGHTPENNING.COM 

mail to the Allstate CEO, naming the RVP 

who has refused to respond to you. 

Interfering with the buy/sell process 

when Allstate’s written requirements have 

been met constitutes restraint of free trade. 

Your EA contract permits you to sell your 

economic interest. Any action designed to 

impede or thwart your contractual rights 

may be illegal in your state. 

Rule 5. The material contained in this 

article represents the author’s advice, no 

more. It is not legal advice and must not 

be so construed. It represents only the 

experiences of someone who has successfully 

sold a book of business. 

If anyone would like to contact me concerning 

any information contained in this 

article, or have questions, email me with your 

name and telephone number at nnoac@aol. 

com. I will get back to you as soon as possible. 

I would also be grateful to receive 

definitive information about any outsider 

improperly tampering with the buying and 

selling of Allstate agencies, along with available 

supporting documentation. 

With your help, a future article may 

bring transparency to the buy/sell process. 

With your involvement, together we may 

ensure the freedom to buy and sell what may 

be your most valuable asset when you retire. 

Meanwhile, good luck in selling your book 

of business, and may the force be with you. 

Ph: (248) 477-6300 

Fx: (248) 477-7749 

dbeamer@wrightpenning.com 


staffing 

Is Your Staff “Engaged” 

BY NANCY FISH 

Agency staffing is one of the largest 

expenditures in your agency budget. 

Wouldn’t it be great to know that you 

are getting the maximum return possible 

from that investment Improvement requires 

continuous evaluation of yourself 

and your agency operation, coupled with 

new and innovative ideas. 

A recent study conducted by Towers 

Perrin, a global professional services firm, 

has established a definitive link between 

levels of employee engagement and the 

financial performance of organizations. 

The Global Workforce Study, the largest 

of its kind, utilized two sources of data. 

One source was a survey of nearly 90,000 

workers in 18 countries. The second is the 

world’s largest employee normative database, 

which includes more than 2 million 

employee records and data from organizations 

with both above and below average 

performance. 

Towers Perrin has utilized these vast 

sources of data to provide a more complete 

picture of the workforce and what 

it takes to drive high performance and 

better financial results. Astute agency 

owners can utilize some of these findings 

to make positive changes when staffing 

their agencies. 

So what is employee 

“engagement” 

According to Julie Gebauer, a managing 

director of Towers Perrin, “Engagement 

is not satisfaction or happiness, but 

the degree to which workers connect to 

the company emotionally, are aware of 

what they need to do to add value and 

are willing to take that action.” She adds 

that "Happy employees don't necessarily 

create better financial results, but there is 

a definite link between engagement and 

a company's financial performance," 

Savvy agency owners now understand 

that employee happiness and good staff 

morale is only part of the equation. While 

these are desirable goals, they do not necessarily 

ensure satisfactory levels of performance. 

In today’s competitive marketplace, 

it isn’t enough to preside over a “happy” 

workplace. Sure, your staff will have a smile 

in their voices when they speak with your 

customers, but are they willing to “go the 

extra mile” whenever necessary 

Engaged employees are those that are 

willing to go out of their way for the success 

of your agency. They will expend extraordinary 

efforts because they see a direct 

connection between what they do and 

the overall success of the agency. They are 

emotionally connected and very loyal to 

the agency. Those agency owners who take 

the time to develop an engaged staff will 

experience substantially better productivity 

and performance levels than non-engaged 

agencies. Achieving this goal, however, is 

largely dependent on the agency owner because 

leadership is the most important key 

to success. In addition, engagement is not 

an innate trait – it’s an acquired trait. 

"Organizations that have employees that 

are highly engaged deliver better financial 

results than those that don't." Julie Gebauer, 

Towers Perrin 

So, what can you do to engage 

your staff 

The study findings point to three areas 

that can help increase engagement, and 

promote discretionary effort. Like anything 

else worthwhile, transforming your agency 

will demand your undivided attention, focus 

and, probably, a whole new behavior from 

you. Then, as practices and procedures are 

implemented, this process will require follow-through 

and monitoring. Remember 

that finding untapped potential in your 

employees will require you to look at your 

agency from a different perspective, be innovative, 

and be open to new ideas. 

The first steps are fairly basic, but require 

your ongoing and enthusiastic support. 

To get started you’ll need to demonstrate 

inspiration, vision and commitment. 

You will also need to communicate both 

openly and honestly and be visible and accessible. 

Treat all employees as if they are 

the most important part of the agency. You 

must demonstrate that you are sincerely interested 

in their well–being and are willing 

to help balance work and activities outside 

of work. Develop good habits such as becoming 

more interested in your employees’ 

daily activities and showing them that you 

understand how the work is done. Let them 

know you appreciate them. Communicate 

often. Try monthly staff meetings, or even 

email agency newsletters about issues that 

affect their work. 

One of the biggest challenges, especially 

for smaller agencies, is to provide 

an environment in which employees 

can cultivate their knowledge and skills. 

Employees want to give more to their 

employers and jobs, but they also want 

a clearer picture of what's in it for them. 

Most employees like challenging work 


and have a strong desire to learn and 

grow. Agency owners can create a setting 

that encourages learning and development 

by providing challenging assignments 

designed to broaden skill levels or 

by allotting a monthly block of time for a 

learning experience. 

Even if your agency is small, it is important 

to establish advancement opportunities 

– otherwise all you have to offer 

is a dead end job. Jobs lacking appropriate 

incentives result in stagnant behavior 

and higher than average turnover. Many 

agency owners may be reading this and 

wondering “All this sounds good, but my 

agency is too small. I can’t afford to do 

this.” The first thing agency owners need 

to realize is that simply offering advancement 

opportunities will not, in itself, 

bankrupt an agency. In addition, one of 

the most important lessons the business 

world can teach us is that successful business 

owners learn to invest in their businesses 

effectively. Therefore, the wisdom 

of investing the bulk of your hard earned 

dollars to improve your most important 

asset should be a no-brainer. 

The unpredictability of the new 

company programs, such as New Roads 

to Growth, Executive Advantage and 

Resources for Growth have left a lot of 

agencies in the financial lurch. Uncertain 

of the outlay for the new technologies 

they’ll need in their agencies and 

the fickle nature of the company’s bonus/reward 

programs, there is cause for 

concern. Even so, offering opportunities 

to your employees doesn’t have to cost a 

lot of money. As an example, you could 

encourage your producer to become an 

expert in a particular product line. Set 

specific requirements for advancement 

to the next level, such as completion of 

the CIC, CPCU or LUTC designation. 

Reward advanced product knowledge 

with tickets to a sales motivation seminar. 

Encourage innovative thinking and 

involve employees in decisions that affect 

their work. There is a wealth of untapped 

potential in each employee; finding and 

developing it is your challenge. 

And last, employees want to work for 

an agency that is a leader among its peers 

and held in esteem by its employees, customers 

and the community at large. Employees 

want to be proud of the agency 

they work for, which is why the agency’s 

reputation for excellence is so important. 

To this end, the agency owner must always 

demonstrate high personal standards. Your 

behavior, reputation for social responsibility 

and the agency's reputation to resolve 

customer concerns quickly are crucial. 

This assignment, should you decide 

to accept it, will not only move your staff 

to a higher level of engagement - it will 

also be a very positive, and inspiring experience 

for you as well. 

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Let Yourself Go. 

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For more information on employee engagement, 

please visit www.towersperrin.com. 

Nancy Fish is the Association Manager of 

NAPAA. She has more than 20 years of experience 

in and around Allstate. During her 

Allstate career she was both a manager and 

an Exclusive Agent. Currently, she manages 

the day-to-day operations and handles 

member inquiries at our headquarters in 

Gulfport, MS. You can reach her at 877- 

627-2248. 

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usiness tips 

Stronger Documentation Creates 

Stronger Client Relationships 

BY BASIA REMIASZ 

It is a common perception that insurance 

agents are sales driven individuals 

with an aversion to details. Since agents 

depend on new sales to earn a living, 

this behavior is understandable. Making 

matters worse for agents are the companies 

who push and prod agents to meet 

sales quotas. This practice only serves 

to trivialize the importance of proper 

documentation. Agents, who are on the 

receiving end of this unending and relentless 

“sales at any cost” corporate philosophy, 

are inadvertently being taught to 

de-emphasize important details. Because 

of this bad corporate habit, agents tend 

to assign a low priority to the gathering 

of background data. This thinking is not 

only faulty, but could lead to compliance 

and E&O issues down the road. 

Savvy agents realize that they are the 

ones that can be held accountable for their 

lack of follow-through. While an insurance 

company’s behavior may be lax when 

it comes to teaching agents and financial 

advisors the value of documenting their 

files and conversations, it doesn’t mean 

they are guilty of wrongdoing. It is up to 

the individual agents and financial advisors 

to abide with compliance issues and 

keep track of what was said to whom. 

Perhaps one of the best ways to help 

ensure compliance and prevent groundless 

E&O claims is to develop a checklist 

for each product line. As an example, 

if an agent faithfully follows a checklist 

while discussing products or policy coverage, 

the chances of a successful E&O 

claim are greatly diminished. And while 

using a checklist is a good beginning, it is 

really only scratching the surface. 

Aside from the E&O and compliance 

issues, it makes good sense to document 

your client files. In fact, the number one 

reason clients’ switch financial advisors or 

insurance agents is due to a detachment 

in their relationship with their advisor or 

agent. Getting to know your clients is essential 

in building lifelong relationships. 

The competition for new customers is 

fierce today. Much of the competition is 

focused only on price. When viewing ads 

for Progressive, Geico or even Nationwide, 

how many of them actually talk about the 

virtues of having a caring agent 

What seems to be happening in 

today’s competitive marketplace, even 

among companies who have traditionally 

promoted the value of their agents, 

is a deliberate attempt to devalue the 

agent-customer relationship. The goal, of 

course, is to make consumers less dependent 

on agents. For compliance reasons, 

this tactic is more difficult to achieve in 

the financial advisor arena. Consequently, 

if you are a P&C agent and don’t have 

a price advantage, you should be looking 

at ways to preserve your customer base. 

With this increased competition, 

agents and advisors must turn to the only 

thing that cannot be commoditized, mass 

produced or cheapened by the Internet; 

real relationships. The most successful 

agents have one thing in common; they 

understand what’s important to their clients 

- their goals, objectives, values, concerns, 

likes, dislikes, hobbies, kid’s names, 

etc. This is critical because getting to 

know your clients and their families creates 

a deeper appreciation and sense of 

trust. Trust makes you invaluable to your 

clients and, as a result, they are likely to 

refer more clients to you. 

No agent or advisor can remember 

every pertinent detail about each client 

or each conversation. Documenting your 

conversations can vastly improve customer 

retention. Reviewing your notes before an 

annual review can cause your customers to 

marvel at how much you remember about 

them – a powerful way to make them feel 

special. Not everyone is good at this, but 

there are commercial solutions available 

that allow you to dictate important details 

while the information is still fresh in your 

mind. Your notes are then transcribed into 

text and delivered to you in a few hours. 

Implementing this strategy in your 

agency is simple. Immediately following 

a meeting with a client or prospect, you 

must capture all types of detailed information 

while it is fresh on your mind; try 

to write everything down so nothing falls 

through the cracks. The stronger your 

relationship with your prospects and clients, 

the more trust you build, giving you 

the opportunity to develop relationships 

that will last a lifetime. 

Enhance Your Practice 

We understand the need for documenting 

each client and prospect interaction, 

but it is not always easy to accomplish 

in an accurate and efficient manner. 

Developing strong habits from the beginning 

is essential. Documenting every 

client interaction leads to more productivity, 

stronger client relationships, and 

helps to develop the following: 

• Detailed notes from meetings and 

phone conversations 

• Better organization through more 

complete documentation 

• Increased productivity for the 

agents and/or staff members, since tasks 

are communicated after each meeting. 

• Better documentation for compliance 

• Limits your liability 

Capturing relationship information 

has never been so important. Adopting a 

documentation strategy will produce effective 

long-term results. 

Now, when you meet with your cli- 


ents again, you won’t have to start from 

scratch – you’ll have detailed notes at 

your fingertips to jog your memory. They 

will be impressed that you remember so 

much about them, including their goals, 

information about their families and the 

people you know in common. It will be 

as if you met with them yesterday, not a 

year or two ago. Now your clients feel 

connected and valued. 

The impact is phenomenal. Imagine 

how you would feel if one of your professional 

advisors used a similar strategy. 

Do you think you might be impressed or 

feel special I know I would. 

Basia Remiasz is an account executive with 

Copytalk, a leading provider of mobile documentation 

services. Copytalk is a monthly 

service that allows users to turn their cell 

phone into the perfect dictation device. To 

reach Ms. Remiasz please call (866) 267- 

9825 ext. 462. To contact by email write to 

basia.remiasz@copytalk.com. 

Help for those with 

Political Ambitions… 

In the winter 2006 issue of Exclusivefocus 

we ran an article titled “New York 

EA vying for City Council.” The article 

featured an interview with New York 

EA Victor Babb who was in the midst of 

his bid for a seat on the New York City 

Council. During the interview, Babb 

intimated that his second book, “Victor 

Babb’s Politics… in a Blaze of Glory!” 

would be published in 2007. True to his 

word, the book has indeed been published 

and just in time for the 2008 state 

and national elections. 

Babb’s new book is a must read for any 

one seeking political office. Both political 

YOU ARE THEIR 

Your Clients Hold 

You in High Esteem… 

They Value Your 

Guidance and Opinions… 

They Count on You and 

Follow Your Advice … 

When Your Customers 

Transfer Out of State, 

Continue to be Their Hero… 

CALL THE NAPAA AGENT TO AGENT HOTLINE: 

877.627.2248 

We help locate experienced Allstate Agents 

for customers transferring from state to state 

Requests by email should be sent to HQ@napaausa.org 

neophytes and veteran politicians can benefit 

from this bipartisan guide. The book 

covers the most important aspects of running 

for office, including public relations, 

political action, common dos and don’ts and 

political etiquette. The book is 112 pages 

long and consists of 21 chapters. If you plan 

to run for office, “Victor Babb’s Politics… in 

a Blaze of Glory!” should be your first pick 

on your summer top ten books to read list. 

Babb is described by some as a sort 

of modern-day Renaissance man. Joining 

Allstate in 1982 as a management 

trainee, he opted to become an agent 16 

months later. He has earned Honor Ring 

and National Champions more than a 

dozen times and Chairman’s Conference 

nine times. In addition to writing two 

books and operating a successful Allstate 

agency, he has been a community organizer 

and has served in leadership positions 

in a variety of organizations. 

“Victor Babb’s Politics… in a Blaze of Glory!” 

is published by Author House and can be 

ordered online at www.authorhouse.com or 

by emailing Victor Babb at babbv@aol.com 


organizing your business 

Forming an LLC or Corporation 

BY ANN S. CHILTON 

Formal legal entities such as limited liability 

companies and corporations offer owners 

not only liability protection of personal assets 

and tax advantages, but also a means of 

raising capital and establishing credibility in 

the marketplace. Entrepreneurs and business 

owners can select from several different 

types of entities to best serve their needs 

including C-Corporations, limited liability 

companies (LLCs), and S-Corporations. 

Furthermore, incorporation service companies 

can complete this process for the client 

in a fast and cost-efficient manner. 

Benefits of Incorporating 

Perhaps the most common reason business 

people, including insurance agents, 

cite for choosing to form a corporation 

or LLC is to protect personal assets. By 

forming a corporation or LLC, an owner 

creates a separation between himself and 

the business entity. This distinction, which 

does not exist for the sole proprietor, ensures 

that shareholders’ personal assets are 

protected in the event that the business is 

sued or forced into bankruptcy. 

Corporations and LLCs also enjoy myriad 

of tax benefits. Pension, profit-sharing 

and stock ownership plans (programs available 

only to incorporated entities) help to 

lower a corporation’s taxable income. Likewise 

medical, life and disability insurance 

premiums offer tax deductions. In addition, 

sole proprietors can significantly reduce 

their self-employment tax liability by forming 

a corporation or limited liability company 

and splitting their earnings between 

salary and profit income. Furthermore, like 

sole proprietors, LLCs and S-Corporations 

avoid double taxation, by having the company 

income and losses passed through to 

the individual shareholders without taxation 

at the company level. 

An additional benefit of incorporating 

is the ability to raise capital through the 

sale of stocks and bonds. Both S-Corporations 

and C-Corporations may issue stock 

and bonds, allowing for greater investment 

options. In the same vein, forming 

a legal business entity offers marketplace 

legitimacy to a new business. Adding the 

initials INC or LLC to the end of a company 

name establishes a sense of credibility 

that readily translates into enhanced 

business relationships and opportunities. 

Finally, corporations and LLCs are easily 

transferred to future generations. Because 

these entities are legally recognized as separate 

from their owners, the business continues 

in existence even after an owner dies 

or stops working. As a result, ownership is 

more easily transferred than in a sole proprietorship 

where the business ceases to exist as 

soon as the owner dies or stops working. 

Types of Business Entities 

Three of the most common types of 

formal business entities are the limited liability 

company, the S-Corporation and 

the C-Corporation. Each of these business 

types offer different advantages and benefits 

that should be considered when determining 

the best option for a new venture. 

Most for-profit companies are C-Corporations, 

meaning that they are taxed under 

26 U.S.C. § 11 and Subchapter C (26 

U.S.C. § 301 et seq.) of Chapter 1 of the Internal 

Revenue Code. C-Corporations pay 

taxes, sell stocks and bonds, and continue in 

existence after the owner dies. There is no 

limit on the number of shareholders or the 

type stock issued in a C-Corporation. 

An alternative type of corporation is 

the S-Corporation, a corporation that 

makes an election with the IRS to be 

taxed under Subchapter S of Chapter 1 

of the Internal Revenue Code. S-Corporations 

generally do not pay income 

taxes; rather the tax burden is “passed 

through” to the individual shareholders. 

These entities may sell stock and bonds 

to raise capital; however there are limitations 

on both the number of shareholders 

and on the types of stock allowed. 

The newest form of business entity is 

the limited liability company. Increasingly 

popular in the last two decades, the LLC 

offers more flexibility in terms of the ownership 

structure and taxation election. Like a 

corporation, the LLC offers limited liability 

protection to its owners. LLC owners can 

elect to have the entity managed by members 

or managers depending upon the structure 

that best suits their needs. Furthermore, 

LLCs may elect to be taxed as a partnership, 

an S-Corporation or a C-Corporation. 

The Incorporation Process 

Contrary to common myth, forming 

a legal business entity can be an easy, fast 

and inexpensive process. While fees and 

time frames vary by state, in many cases 

a corporation or LLC can be finalized 

within a couple of days for under $200. 

Although it is always wise to consult an 

attorney or tax advisor when determining 

the type of corporate structure best 

suited to an individual business venture, 

it is not necessary to have an attorney 

complete the incorporation process. 

Service companies offer an alternative 

means of setting up a formal business 

structure. They offer online and in person 

answers to many basic questions, and can 

handle the entire incorporation formation 

process from the name reservation to filing 

documents with the necessary state 

authorities. Furthermore, service company 

fees are very competitive and therefore cost 

effective for the client. 

Ann Chilton is Vice President of Finance at 

Incorporators USA, LLC, based in Wilmington, 

Delaware. Incorporators USA has 

been helping businesses make informed decisions 

about incorporating for over 25 years. 

For more information, please call 800-441- 

5940 or visit www.incusa.com. 


the NAPAA market place 

Agencies for Sale Agencies for Sale Agencies for Sale Agencies for Sale 

CALIFORNIA 

Riverside 

Joe Nieto 

maininsurance@yahoo.com 

951-203-5582 

Asking Price: Negotiable 

PIF: 1,425 Premium: $1,539,763 

Number of Licensed Staff: 1 

Leaving CA .Qualified buyers per Allstate 

standards are currently being 

allowed to purchase books. If you are 

unsure that you qualify, please verify 

with Allstate first. Contact me by e- 

mail or at (951) 203-5582. 

Los Angeles 

Jim Astorino 

Jimastorino@allstate.com 

323-665-7300 

Asking Price: $1,975,000 

PIF: 3387 Premium: $4,700,000 

Number of Staff: 3 


Very solid book of business. 28 yr 

agent. Los Feliz area of LA. Same location 

for 12 yrs. Lease is $1375/mo. 

Agent will stay for 1 year to help with 

transition. Allstate approved buyers 

with approved financing only. 

Santa Barbara 

Confidential Listing 

sb_paradise@yahoo.com 

805-452-5182 

Asking Price: $895,000 

PIF: 2600 Premium: $2,760,000 


Work in paradise! Best office location 

in SB. High-end clients, lots of 

growth potential. 91.5% 5 yr. retention. 

51.82% LR 24 mo. 2007 gross 

$320,000 with agent working approx. 

30 hr. week. Broker through-Blue 

Cross, Pacific Specialty, Firemen's 

Fund, Chubb, and CA. Fair Plan 

Chatsworth 

Mike Krupka 

Mikekrupka@allstate.com 

888-457-8752 

Asking Price: Any offer I can’t refuse 

PIF: 6900 Premium: $8,000,000 



25 year agent Inner Circle winner, 

agency generates $1,050,000 from 

Allstate alone. Keeping the Blue 

Cross book. 5 yr retention=92%. 44% 

LR (12 mo). Turn key operation, lease 

$1900/mo, same location 17 years. 

Petaluma 

John Feerick 

JohnFeerick@allstate.com 

707-763-2238 


PIF: 1700 Premium: $1,800,000 


Great location 22+years. Turn-key. 

Agent retiring after 38+ years, staff 

will stay. Feel free to contact cell at 

(707) 217-3158. 

COLORADO 

Denver 

Tom Callahan 

a072418@allstsate.com 

303-584-5814 


PIF: 1454 Premium: $1,277,000 


25 year agency. Ideal location -affordable 

rent -long term lease available. 

Retention 88.39. LR 38.41. Great opportunity 

for someone that wants to live 

and work in the Rocky Mountain Area. 

Colorado Springs 

Tabitha Hughes 

tabithahughes@allstate.com 

719-635-2121 


PIF: 1800 Premium: $1,869,000 


CONNECTICUT 

Norwalk 

Ronald McKnight 

ronm@allstate.com 

203-854-6608 


PIF: 1943 Premium: $2,465,000 


I am 26 year agent ready to "retire". 

Excellent retention and claims loss 

ratios. Total Items 2644. 

FLORIDA 

Jacksonville 

Tony Hassert 

tonyhassert@allstate.com 

904-744-0098 


PIF: 1600+ Premium: $1,850,000+ 

Number of Staff: 1.5 


Retention 90.55%, LR 43.77%. Great 

location on main 5 lane Blvd! Its all 

about location and this is the best! 

Kissimmee 

Larry Newman 

lcn1986@aol.com 

407-529-4147 


PIF: 2600 Premium: $2,650,000 


Great location, agent retiring after 21 

years, staff will stay, turn key operation 

Kissimmee 

Dale Revels 

drevels@cfl.rr.com 

407-924-5336 


PIF: 1100 Premium: $2,200,000 


21 year agent. Paperless office, over 

19,000 documents scanned. Close association 

with Allstate Hall of Fame 

Life Specialist. Low overhead, excellent 

opportunity to grow. 

Orlando 

Jerry Zanfardino 

A082639@Allstate.com 

407-351-7040 


PIF: approx 1900 Premium: $2,750,000 


Great lease, $1600 per month for 

950sf. Companies include Allstate, 

Royal Palm, St. Johns, Universal, 

Citizens. TPP 310,000. LR 41%. Allstate 

approved buyers with approved 

financing only. 

Palm Bay 

Richard Younger 

mrrgy@earthlink.net 

321-591-2225 


PIF: 4500 Premium: $5,600,000 



T key. Fast growing area. Less than 

1% of Auto is AI. 

GEORGIA 

Douglasville 

Glen Slater 

glenaslater@allstate.com 

770-942-8016 


PIF: 2309 Premium: $2,323,913 


Fast growing suburb of Atlanta. 11 

year agent, quality LR and Retention. 

Two licensed staff, 5 and 3 

years. Same great location since established, 

1000 Sq Ft $1100 month. 

Owner financing for qualified buyer. 

Owner Retiring 

HAWAII 

Lahaina 

Michael Damato 

michaeldamato@allstate.com 

808-661-3542 


PIF: 1153 Premium: $1,003,257 



Downtown, beautiful 5 room office, 

turn-key, tastefully furnished. Will assist 

in transition. Talented EFS. TPP 

is $140,000. Please call 9AM-11AM 

Aloha time 




IDAHO 

Moscow 

Nadine Belieu 

nadine@allstate.com 

208-882-8000 


PIF: 1,800 Premium: $1,400,000 


19 yr agent, retiring. Retention 89%, 

LR 23%, Assumable lease - 1330 sf, 

approx. $770/month. Turn key, will 

help with transition. Beautiful area 

- hunting, fishing, recreation. Home 

of U of Idaho; Pullman, WA 8 miles 

away, home of WSU. 

ILLINOIS 

Roscoe 

Guy Jang 

guyjang@allstate.com 

815-623-7131 


PIF: 850 PIF Premium: $700,000 



Great opportunity! Agency qualifies 

for enhanced incentive program for 

new agents and satellite agencies. 

Growing suburb of Rockford. Priced 

for quick sale. 

Gurnee 

Mark Graham 

Allstate85@aol.com 

847-217-9189 


PIF: 3500 Premium: $3,800,000 



Long term established agency with a 

history of 90%+ renewal ratio, LR lower 

40% . Solid book, agent will help transition 

for a few months. Office lease thru 

May '09. Quality Large Agency 

Decatur 

Confidential Listing 

Phone calls only please 

217-390-3589 


PIF: 3023 Premium: $2,498,000 


30 year agency. 16 years same 

location. Good LR, Retention, Location... 

Please Keep This Confidential...No calls 

to office...Cell is 217-390-3589 

Chicago 

P. A. Hill & Associates Co 

Patricia1811@sbcglobal.net 

773-241-6040 

Asking Price: Willing to Discuss 

PIF: 1400 Premium: $1.5 million 


LR and retention holding steady. 

Same community 20 years. Must 

have financing pre-approved or qualified. 

Serious inquiries only 

Quad Cities 

Jennifer Rosales 

srosales1@mchsi.com 

309-737-1688 

Asking Price: Will Discuss 

PIF: 2650 Premium: Just over $2 million 



Owner ready to retire. Established 

location 20-years quality agency 

numbers, located in E.Moline. IL and 

IA licensed. Low-overhead long-term 

assumable lease, turnkey opportunity. 

Owner willing to assist transition, 

staff willing to stay. 

LaGrange Park 

Ronald A. Miller 

MillerTymeLLC@gmail.com 

708-354-1783 


PIF: 1789 Premium: $1,913,000 


HIGH quality!!! 91.38 retention with 

33.14 LR, and 1,500,000 in financial 

products. Will help transition. No 

money down with the right buyer. 23 

year agent. Nice location 1500 sq. ft. 

Turn key, including flat screen computer 

monitors 

Chicago 

Rob Anderson, seller rep 

financialforum@sbcglobal.net 

773-213-0010 


PIF: 3400 Premium: $3,400,000 


25 year agency, 89% retention, 40% 

LR. All staff have over 5 years experience 

and are P&C and Life licensed. 

Turnkey operation. Many hidden 

qualities. 

Chicago 

Bert Gazmen 

egazmensr@sbcglobal.net 

847-977-7685 


PIF: 1617 Premium: $1,799,213 


Located at Jefferson Park. Arm chair 

investment. Scratch agency, 3.3 years 

young. Willing to train. Strictly confidential 

deal. Please provide your best offer 

Oak Park 

Shirley H. Hopkins 

shopkins@allstate.com 

708-358 -8800 

Asking Price: Please Call 

PIF: 1382 Premium: $1,487,187 



Established in same location 8 

years. 86.34% retention, 36% Loss 

Ratio. Owner relocating, 

Buffalo Grove 

Sandy Joung 

sandyjoung@allstate.com 

847-537-3355 


PIF: 1550 Premium: $1,780,000 



Priced for quick sale! Allstate's home 

state -very competitive rate. Solid book 

of business. Same location over 20yrs.. 

INDIANA 

Michigan City 

Linda McKinney 

lindamckinney@allstate.com 

219-898-6095 

Asking Price: Call for details 

PIF: 2012 Premium: $1,973,000 



Turn key opportunity. Established 

agency with positive growth, profitable 

LR, and great retention. Licensed 

in IN, IL, & MI. Can lease or purchase 

existing location 

MAINE 

Brewer 

Timothy Callahan 

timcallahan@allstate.com 

207-989-1124 


PIF: 1,475 Premium: $1,290,000 



Profitable 23 year agency with 90% retention. 

Growth area close to Maine's 

coast. LR 29% 36mm.. Long term established 

location with multiple community 

population draw in market. 

MARYLAND 

Fruitland 

Jack Thomas 

jackthomas@allstate.com 

410-341-0805 


PIF: 980 Premium: $1,094,000 


Beautiful Eastern Shore, same 

low cost location since 1998. LR 

45.7(12mm), 36.3(36mm). AFS PC 

$38K in 07. 218 life policies in force. 

Great satellite opportunity. I'll be 62 

in December and I want to retire after 

22 years. 

MICHIGAN 

South Haven 

Jason Page 

JasonPage@allstate.com 

269-214-8086 


PIF: 557 Premium: $500,000 





LR 38.99%(36mm). Retention 82.34%. 

Growing area on Lake Michigan. Will 

qualify for enhanced commissions 

and bonuses under new ESA or new 

agent program. Reasonable, negotiable 

office space. Currently partnered 

with EFS. 

Farmington Hills 

Joe Hager - 

Retired Allstate Agent 

theinsurancestore@sbcglobal.net 

248-994-8800 


PIF: 950 Premium: $1,400,000 


This is an Independent Agency. 5 1/2 

years at a good location. Appointments 

with Citizens, Progressive, 

AIG, Mercury, GMAC, Bristol West, 

Victoria General Preferred, Travelers 

and Fidelity National. 

MINNESOTA 

Waconia 

William Lotz 

w.lotz@mchsi.com 

612-386-1799 


PIF: 630 Premium: $580,000 



Qualify for enhanced commission 

program. Established in 2004, Honor 

ring in 2005, NC in 2006. Located 

near marina on Lake Waconia, fast 

growing outer suburb of Minneapolis. 

Turn-key operation. 

MONTANA 

Missoula 

Nicole Schreckendgust 

Schreck@allstate.com 

406-728-6336 


PIF: 1216 Premium: $1,227,514 


NEVADA 

Las Vegas 

Bill Brennan 

billbrennan@allstate.com 

702-233-6700 


PIF: 1458 Premium: $2,034,000 


Las Vegas 

Mary Ann Connolly 

MAConnolly@allstate.com 

702-604-0732 


PIF: 1,270 Premium: $1,595,000 


10 year agency in great location. 

Solid book of business with 83.63 Retention, 

LR 42.41. Turn key operation 

for Allstate approved buyer. Serious 

inquires only. 

NEW YORK 

New York 

Central Manhattan Agency, Inc. 

bisacsen@optonline.net 

917-553-6404 


PIF: 1900 Premium: $1,700,000 


Agent owner Gary Leonardi is recovering 

from surgery and has given Bob 

Isacsen "Power of Attorney" to sell 

his Agency. Contact Bob @ 917-553- 

6404. Email bisacsen@optonline.net, 

or bisacsen@mac.com 

NORTH CAROLINA 

Fayetteville 

Paul Dalpe 

pauldalpe@earthlink.net 

910-574-0895 


PIF: 450 Premium: $601,624 


Must sell by Nov 2008. Will entertain all 

written offers. So, if you’re a tire kicker, 

don’t wast my time. Asking 2X Earnings. 

OHIO 

Canal Winchester 

Susan Norton 

susannorton@allstate.com 

614-837-3149 

Asking Price: Upon request 

PIF: 471 Premium: $337,528 



Retention: 87% LR: 38%, SE of Columbus 

Suburb. Qualifies for the enhanced 

agency program. Office lease 

assumable or purchase. Please only 

serious and/or qualified buyers. 

OREGON 

Bend 

Stan Stieben 

stanstieben@allstate.com 

541-318-8536 

Asking Price: $325,000. 

PIF: 1274 Premium: $1,000,005 


Quality, seasoned book. Fast growing, 

highly desirable area known for 

quality of life and recreations. Agency 

LR 31.57, Retention L 10, 88.60, L 

70, 91.94. Over 10 years at current 

location. Owner retiring will work as 

consultant if desired. 

SOUTH CAROLINA 

Irmo 

John Griggs 

johngriggs@allstate.com 

803-732-0104 


PIF: 2107 Premium: $2,027,068 


Irmo, SC near Columbia. Great location 

in a growing area. 

TENNESSEE 

Memphis 

Michael Reagan 

michaelreagan@allstate.com 

901-432-2007 


PIF: 1885 Premium: $2,101,500 


E Memphis Bus Dist close to affluent 

neighborhoods. 2 licensed P&C staff 

total 23 years experience. Professionally 

decorated and furnished. E- Photos 

upon request. Ret.RFG 89.38%, 

Auto: 90.63%, Prop: 88.31% and LR 

at 48.02% 

Hermitage 

Jerry Randall 

jerryrandall@allstate.com 

615-232-5003 


PIF: 1574 Premium: $1,300,000 


Staff, P&C, L&H lic: speaks Spanish. 

High visible office. 40% Line 10 on EZP, 

retention 86%, LR 46%. 4.5 year office, 

retention will grow at above avg rate 

as more clients go to 5+ yr with agency. 

Please email for more info 

TEXAS 

Austin 

Dianne Tanner 

diannetanner@allstate.com 

512-554-2727 


PIF: 871 Premium: $983,000 



Small 13 year agency with low loss 

ratio (45%), good retention, lots of 

established 5+ year clients. 

Garland 

Rick Burridge 

rickburridge@allstate.com 

972-840-3695 


PIF: 1707 Premium: $1,700,000 


Austin 

Ellen Ryan 

ellenryan@allstate.com 

512-751-1204 


PIF: 2022 Premium: $2,000,000 


11 year agency. Downtown, impressive 

Class A office. 90,000 state, 

county, city employees within 1 mile 

of office. 26 condo and residential 

projects within 1 mile of the office. LR 

44%. Retention 87% . 75% of clients 

are professionals. 




Garland 

Cal Nunnally 

cnunnally@allstate.com 

972-494-0097 


PIF: 800 Premium: upon request 



Near downtown Garland. Same location 

15 years. 95% preferred business. 

Great loss & retention ratio for 

new hire or ESA purchase. Will assist 

in smooth transition for 2 months. 

1000sf leased space 

VIRGINIA 

Richmond 

Bob South 

bobsouth@verizon.net 

804-320-2894 


PIF: 1267 Premium: $1,301,000 


Virginia Beach 

H.C. Boone, Jr. 

1vbguy@verizon.net 

757-641-9971 


PIF: 1250 Premium: $1,150,000 


Affluent area of Virginia Beach. Good 

retention and loss ratios. 900 Sq Ft 

with inexpensive rent! Turn key operation. 

Excellent satellite opportunity! 

Bristol 

Osborne Insurance 

donrosborne@yahoo.com 

423-968-5492 


PIF: 4900 Premium: $2,710,064 


Price negotiable. 30+ year agency. Licensed 

in VA & TN. 92.10% retention 

and 41.77% LR. 

WASHINGTON 

Seattle 

Apex Insurance 

and Financial Services 

tranthai@allstate.com 

206-725-1887 


PIF: 285 Premium: $297,168 



Heavy traffic strip mall. Allstate office 

design. Huge potential, favorable 

lease term 

The NAPAA market place… 

where buyers meet sellers 

Place your classified ad here 

for just $99 per issue of Exclusivefocus 

(Limit to 10 lines 

of text.) 

The NAPAA market place is 

the ideal way to buy or sell just 

about anything. List your agency, 

business personal property 

or personal items here. 

For more information, go to 

www.napaausa.org, or contact 

NAPAA at 877-627-2248, or 

HQ@napaausa.org. 

10 years on a main street in Chesterfield 

County. Large sign for visibility. 

Less than 10% of book is Line 19. 

Current retention is 90.25. 

Customer Moving 

OUT OF STATE 

We’ll help you find 

an experienced 

Allstate Agent 

Call the 

Agent-to-Agent Hotline: 

877-627-2248 

A Free service provided by NAPAA 

Email requests should be sent to 

HQ@napaausa.org 

Advertising Index 

Aleritas Capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 

AMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32-33 

Applied Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 

Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 

eBridge Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 

E-chx, Inc. Payroll Solutions . . . . . . . . . . . . . . . . . . . . . . . . . 31 

Expetec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 

Holland Computers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 

International Card Establishment (ICE) . . . . . . . . . . Back Cover 

MassiveRFG.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 

NameSafe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 

Oak Street Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 

Petplan Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 

Professional Practice Capital . . . . . . . . . . . . . . . . . . . . . . . . 45 

Rhinotek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 

Smart Choice . . . . . . . . . . . . . . . . . . . . . . . .Inside Front Cover 

Sprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 

TWFG Insurance Services . . . . . . . . . . . . . Inside Back Cover 

Valpak . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 

Wright, Penning & Beamer . . . . . . . . . . . . . . . . . . . . . . . . . . 53

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